15.02.2006

CAT/Finning aim to double market share

Finning has agreed a three year strategic plan with Caterpillar to support Finning U.K’s effort to grow market share across all market sectors and improve profitability.

The plan is based on a mutual commitment to double the present market share and concurrently to improve the profitability of the dealership to the median level of dealers in the Caterpillar network.

Caterpillar has agreed to ensure that its products in the UK have market based pricing and that its equipment will at least have parity in terms of key technical capabilities and specifications.

Finning has agreed to change its centralised service set up on larger equipment to a more decentralised, regional model, moving services closer to the customer.

In addition, it has agreed to launch a new “Cat Compact” distribution channel for the smaller equipment in the product line. Finning will appoint a general manager for the new Cat Compact channel and plans to pilot it in two regions, before rolling it out nationally.

Finning says that CAT’s alliance with JLG to produce a full line of Caterpillar branded telehandlers by late 2006 will be critical, given that telehandlers are a key product for Finning and one of the largest segments in the UK equipment market.