We've seen plenty of false dawns at Iveco with successive MDs entering the fray and promising better market share, improved profitability or higher-quality network response. Impressive promises - but the reality has been a slow decline in Iveco's UK fortunes over the past 10 years or so as it slipped from market leader to also-ran. Profitable it might be, but with a declining market share comes a declining vehicle parc and declining demand for spare parts. It's a downward spiral which, if left unchecked, could end in oblivion.
At the same time Iveco has shifted its emphasis from medium and heavy trucks to a portfolio dominated by vans. Developing a strategy to exploit the burgeoning van market was no bad thing - and clearly in the Daily, Iveco had a product well suited to the rigours of the UK parcels sector. But vans are generally a one-hit revenue opportunity, and they don't consume anywhere near the workshop space or spare parts gobbled up by the middleweights and heavies. What's more, focusing on vans could marginalise a manufacturer determined to offer a full range of CVs on the global market.
From Italy to Russia
This is where Henk van Leuven comes in. We first met this ebullient Dutchman when he was working in Iveco's Turin HQ as head of the heavy truck marketing division. Not long after this a reshuffle at Iveco took him off the radar as he was put in charge of Iveco's Russian operations. We assumed he must have backed the wrong horse in a corporate power struggle, but it would seem the years in the East have allowed him to develop his sales strategies - and his record stands close scrutiny.
For the past seven years he has been running Iveco Benelux by all accounts he has turned the business around, improving market share and giving the organisation leadership and purpose. While still retaining overall control of the Benelux business, he is now devoting more of his time to the UK and, signalling a long-term commitment, will shortly be moving over here. Van Leuven is likeable but he also has a forthright manner that is typically Dutch. He is clearly passionate about the business and his strategy - Iveco insiders tell us he's a tough person to work for, but always fair.
Clear direction
"I try to give clear direction to the team and then let people get on with their jobs," he says. "My maxim is don't be afraid to make mistakes - don't make too many, of course - but what is more important is for people to make decisions in the interest of the business. If you can then see it's a wrong decision then move to do something about it." With this attitude comes a confidence in his team which van Leuven believes will bring results. Already market share is nudging in the right direction.
The basis of van Leuven's sales strategy is a careful calculation of product coverage, market coverage and marketing activity: "When I ask any dealer in the country what they want they will always say 'more product'. By our analysis we've already got nearly 80% of the products sold in the UK available in our portfolio. "Increasing this by 10% will give us a tiny market share increase," he adds. "However, if we actually trim the products offered and dedicate more resource to market coverage (by that I mean network availability and our sales process) and to our marketing effort, then the market share improvements will be much bigger."
With this philosophy van Leuven has developed a tool which explains clearly what he needs from the organisation: both from his own people at Watford and the dealerships throughout the country. If he has achieved nothing else in the 10 months since his arrival, he has clearly defined what he wants the business to do. History will judge van Leuven on whether he hits his self-imposed target of a 15% market share for heavy trucks. Personally I think it's a long shot, but I'd be happy to be proved wrong. And there's no doubt the Dutchman has already transformed the organisation, giving true leadership and direction. This has led to a new-found confidence at Iveco's head office and in the dealerships, which has to be good news for the market. Our verdict? There's plenty of work to be done, but no doubting Iveco's immense potential.
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