|
INDUSTRY INTERVIEW: NICK HALLIDAY, FORD AND BSI'S SCOTT HANNEY
Following on from Ford's recent PAS 125 announcement for its network, we spoke to Nick Halliday (pictured), Ford's Collision Repair Marketing Manager, and Scott Hanney, BSI's Sales Manager about the deal.
Q What is the agreement in place?
N Ford has taken the decision to support its own accident repair network in achieving PAS 125 accreditation. Ford will not mandate the Kitemark to its shops, merely part subsidise the annual cost of accreditation. This subsidy will continue until advances in vehicle technology and repair techniques differentiate significantly enough to promote the natural segregation of repairs by vehicle manufacturer. BSI will assist Ford and the FARCs (Ford Accident Repair Centre) network in achieving accreditation and rationalising and combining the audit regimes for both standards.
S BSI and Ford will work together to ensure the entire network has the Kitemark by the end of 2010, using seminars, and webinars and one-to-one visits by trained BSI staff.
Q How long has it taken to reach this deal?
N Not long, there wasn't really anything to negotiate with BSI. It took Ford about six months to reach this decision, after consultation with its network.
S From initial discussions to agreeing timescales this was very quick, and we only have 12 months to get the network accredited, so the roll out plan starts now.
Q What does this mean for FARCs?
N Ford Accident Repair centres that opt in to the scheme will now have two stringent standards to maintain. Instead of two audits however there will only be one audit that covers both PAS 125 and the Ford FARC standards. The Ford subsidy, combined audit and other synergies should reduce the annual cost burden of achieving the two separate standards by around £1,100 per annum.
S With the Kitemark in place, more reassurance will be given to Ford and non-Ford driver’s cars so that they are repaired to latest industry recognised standards by fully-trained technicians.
Q What does this mean for other bodyshops repairing Ford cars?
N Naturally we want our customers to have the best possible branded experience and taking actions like this improve the attractiveness of our network. In the medium term, I expect this to improve our networks share of Ford repairs.
Q Why has Ford taken this step?
N Three key reasons. Firstly, I believe that, if implemented correctly, PAS 125 brings process discipline to a shop. Well documented processes, procedures and standards drive customer satisfaction, operational efficiencies and reduce liability.
Secondly, to pre-empt insurers rationalising their networks to Kitemarked only shops. We have seen several main insurers and fleets already take this step and we have reason to believe that others will follow suit. Around 50% of the vehicles repaired in our shops aren't Fords and if we lose this work we cannot survive as a network with national coverage in the short term. Loss of national coverage will detrimentally affect our Ford customers.
Finally, anecdotal evidence from groups who have already achieved the Kitemark suggests that savings can be made on annual insurance costs. These savings are often greater than the cost of achieving PAS 125. Therefore, there is a strong direct financial incentive as well.
Q Why is this new venture important for Ford/BSI?
S This is very important to BSI. Ford Motor Company is a strategic client and we look forward to working with Ford on this and other projects. We are delighted that Ford has taken this great opportunity to help enhance its network and help build retail client confidence within the UK bodyshop industry.
Q How has Ford incentivised repairers to sign up to PAS 125?
N Through a small annual financial subsidy, combining audits and recognising some ATA accredited qualifications that count towards our standards.
Q How have repairers reacted to having to achieve both FARC and PAS 125 standards?
N FARCs don't have to achieve both. A FARC only has to achieve FARC standards. However 138 of our 149 premium FARCs opted in to the scheme, nine opted out and two are still undecided. Those sites that opt out will still have a separate Ford specific audit.
Q How does PAS 125 differ from Ford’s own repair standards?
N Both standards are very similar. In fact, the new premium FARC standards introduced in 2008 were based on PAS 125 with manufacturer specific elements added. One key difference between the two is that PAS 125 requires a minimum of one in four technicians, in each discipline, must be able to demonstrate competency by reaching a nationally recognised standard. Our standards however require that all technicians must reach the minimum Ford standard.
Q Does this mean that vehicle manufacturer approvals are not enough for bodyshops?
N Not necessarily. It all depends on the work provider mix, diversity and size of shop. Those shops that have several manufacturer approvals, good local marketing initiatives and retain strong ties to retail showrooms have naturally a higher retail mix which supports the business instead.
Q Will we now see other vehicle manufacturers taking similar steps and how will this impact on the bodyshop industry as a whole?
N Probably. I imagine it will further accelerate PAS 125 take-up.
S We are in conversation with other VMs and have been for some time, but Ford is driving the industry forward and has seen a great opportunity. We would like to talk to all the other VMs and help enhance their networks.
Q Does Ford intend to market its support of the Kitemark to car owners and/or insurers?
S Yes, we have already submitted tenders for national repair contracts, highlighting our network intentions regarding the Kitemark.
Q When adding more bodyshops to its network, will Ford now only consider ones that have PAS 125?
N No.
|
|
|