Scania and Cable Price part sooner than expected

In News, Scania2 MinutesBy NZ Trucking magazineFebruary 12, 2021

Scania New Zealand has advised a revised termination date of its commercial relationship with CablePrice. A two-year notice period was announced in August 2020, and this is being brought forward to make an effective new termination date of 19 March 2021.

Scania New Zealand managing director Mattias Lundholm says Scania will maintain an ongoing service-workshop presence across all of the affected locations throughout the transition.

“We will be making a further announcement very soon regarding plans and timelines around Scania‘s future presence in the specific locations of Whangarei, Gisborne and Hastings.”

CablePrice chairman David Harvey says the company‘s equipment divisions and its South Island Daimler dealerships will not be affected. He says te company is in a strong position in the South Island, where it has been experiencing significant growth through new agreements with Mercedes-Benz, Freightliner, Fuso and Detroit.

“Our business is going through a period of change as we exit our Scania agreement, manage impacts from the end of our dealer agreement with John Deere Forestry and Construction, deal with the ongoing effects from Covid-19 and optimise our operating costs.”

Harvey says CablePrice is proposing to close its branches in Whangarei and Gisborne, close its North Shore site, and close its commercial vehicle operations in Auckland, Rotorua, Palmerston North and Hastings. It is proposing to establish local service dealer agents in Whangarei and Gisborne to support customers there, and to focus its North Island operations on expanding its construction machinery retail business.

“Our Japanese owners, Hitachi Machinery Construction Company, are supportive of our plans and are backing us to turn the company around and secure new business growth and opportunities.”