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Following the purchase in 1979 of three of Wadham Stringer’s Commercial
vehicle branches at Ashford, Bexhill and Tonbridge, at the beginning of
1980 another of their premises was acquired at Hailsham, where
redevelopment began immediately, to provide a new Austin Rover Showroom
and Regional Parts Centre.
The 1980s continued with expansion of the Company’s business by the
acquisition of new premises in Sevenoaks in 1981 and saw the
continuation of the new policy of diversification of franchises which
was to be the keynote of the coming years.
Renault was brought in at
Dover, Folkestone and Maidstone, Audi-Volkswagen at Bexhill and Haywards
Heath, and the Lancia franchise was added at the new West Country
branches. The year also saw a revitalisation of the Company’s visual
image, with the introduction of the now familiar two-tone blue “lozenge”
form of the Caffyns logo.
In the same year Mr Alan Caffyn was appointed Chairman, succeeding Sir
Edward Caffyn, who on his retirement became President of the Company. Mr
Alan, following in the footsteps of previous generations, was closely
involved in many diverse activities. A past President of the Sussex
Cricket Club, Vice President of BEN, the National Motor Trade Benevolent
Fund, and President of the Eastbourne Historic Vehicle Club.
As allowed by the Companies Act 1980, on 29th October 1981 the Company
changed its name from Caffyns Ltd. to Caffyns plc.
In 1982 another member of the Caffyn family, Mr Douglas Caffyn, who
joined the Company in 1976, was appointed to the Board as Executive
Director. A graduate of Cambridge University as well as an Associate of
the Chartered Institute of Secretaries, he was originally in charge of
the Caffyns Pension Fund. Now his responsibilities were expanded to
include forecourt operations and all property matters.
In the early part of the decade the pattern of the retail motor trade
changed dramatically. The car manufacturers launched a program of
streamlining their dealerships, at the same time demanding continually
higher standards and levels of investment. On the Service side, extended
intervals between services and minimising of servicing schedules caused
a general dilution of this part of the industry A review of the
Company’s activities led to a plan of rationalisation being carried out
and, in towns where representation existed at several sites,
consolidation was achieved by centralising activities and selling excess
capacity In the light of these major changes, in 1982 the Main Board of Directors
had decided that a restructuring of the Company’s management was
desirable. As a result of the recommendations of Management Consultants
Urwick Orr and Partners, all branches were grouped into regions, each
one under the control of a newly appointed Regional Director. A Regional
Board of some 10 senior members of staff was thus formed to consult with
the Main Board on the day-to-thy operation of the Company in the rapidly
changing climate of the motoring world. The new management style brought
wide-ranging changes to the Company, with increased regional autonomy,
new
accounting systems and further computerisation.
Branches at Tenterden, Hastings, Westerham, Dover and Folkestone were
closed. Another “casualty” was Rolls Royce — in common with most car
manufacturers, Rolls Royce greatly reduced the number of their retail
outlets, and in 1984 the franchise held since 1927 was relinquished.
This decisive action, together with the new management structure and the
acquisition of further new franchises, helped Caffyns to weather the
difficult years ahead more successfully than some of its competitors.
Since the installation of their first business computer in 1965
when the Company’s annual turnover was around £10 million, by 1983 this
had grown to over £70 million and, although its capacity had been
increased three times in the intervening years, by now it had reached
the end of its useful life and a completely new ICL system was
installed. Indeed, the volume of business continued to expand to the
extent that in 1986 it exceeded £100 million.
Also in 1983, Caffyns were appointed Managing Agents for the Youth
Training Scheme (now known as Training Credit).
The mid l980s was an especially busy time. The introduction of
Audi-Volkswagen at Goring near Worthing made Caffyns the largest group
of Aud1AW dealers in Sussex. Other new appointments included a General
Motors Main Dealership at East Grinstead for the Vauxhall range of cars
and vans; the Nissan franchise at Canterbury where activities were
transferred to a new showroom and workshop on the outskirts of the city
with greatly improved access for customers and a major Land Rover Centre
in the newly developed Brooks Road area of Lewes.
This period also saw an important new development of the Service side of
the business, Flexi-Serve. Launched in 1985 and conceived and marketed
by Anthony Caffyn, Joint Managing Director (Service), this system of
fixed-price car maintenance for all popular makes of car, which included
“menu-pricing”, would give car owners the freedom to select exactly what
work was to be done at pre-quoted prices with no hidden extras. All the
work would be guaranteed for three months (later increased to twelve
months) against defective parts or workmanship and only top quality
materials would be used. This facility offered by a main dealer was so
unique at the time that it featured in the BBC program Top Gear.
In response to changing marketing conditions the Company established in
1984 a new division at Canterbury — Caffyns Motor Contracts — especially
created to offer the widest possible range of financing options for the
acquisition of vehicles, whether for business or private use. Techniques
are based on long experience
— Caffyns began Contract Hiring Schemes back in the mid 1930s. The
business now operates from Ashford with a second branch in Brighton and
provides vehicles nationally.
During 1986 Caffyns devised a vehicle funding package which they called
Driveplan. This was basically a lease scheme for private motorists which
until then had only been available in the UK to business users. Some
nine years later, essentially the same package would be offered as
Personal Contract Plans (PCPs) by almost all major manufacturers.
Other developments during this period included the opening of a
replacement Coachshop at Hailsham with fully equipped Paint Shop to add
to the extensive Sales, Service and Parts facilities already available
there. Caffyns’ smaller sites were not overlooked and the familiar
Eastbourne landmark of Crossways petrol station was updated to provide
easy-access self-serve facilities, combined with a well-stocked “Shop
for the Motorist”, with a 24-hour service
After being active in the Heavy Commercial Vehicle field for the last 75
years, it was decided to reduce investment in this highlyspecialised
and increasingly competitive area. In a mutually advantageous management
buy out, the Kent operation based at Ashford was taken over by Ron
Stupple, who had been associated with the Company’s Commercial Division
for 28 years. The Sussex operation was sold to Evans Haishaw plc.
Throughout the 1980s, Caffyns’ Accident Repair and Parts Delivery
Services, were streamlined and greatly expanded to meet the needs of the
increasing number of cars on the road and the extended range of car
franchises that had been acquired. To provide the higher standards of
repair and paint finish that were being introduced by the manufacturers,
the Company’s major accident repair centres in Crowborough, Brighton,
Worthing and Hailsham were completely re-equipped.
To ensure the necessary parts were available for both routine servicing
and accident repairs, a network of major parts depots was established
with a transport fleet to serve both retail and trade customers. In
addition, a network of “Express Factors” depots were set up to give
rapid service to local branches and customers with deliveries at regular
intervals. By 1986 the Company carried in stock around 50,000 different
“lines” or types of part to the value of nearly £2 million.
In October 1987, the Fiat branch in Sa1isbur~ taken over when the Rob
Walker Group was acquired in 1977, was changed to the Toyota franchise
and in the latter part of the decade active development took place in
several other directions including three new Austin Rover dealerships.
These were established at Tonbridge (a redevelopment of the former
Commercial premises), officially opened by Mr Kevin Morley, Commercial
Director of Austin Rover: at Ashford, also a part of a major
redevelopment, which was officially opened in October 1988 by Mr (later
Sir) Graham Day, then Chairman of the Rover Group and at Hove, Kingsway.
The Company’s activities in the luxury sector of the market, which
earlier centered mainly on Rolls Royce agencies and then Jaguar, now
expanded steadily with the opening in July 1987 of impressive new
premises for Mercedes-Benz at Dorchester, followed by another
Mercedes-Benz centre at Salisbury in July 1989, later officially opened
by Mr Hans Tauscher, Managing Director of Mercedes-Benz UK Ltd.
In September 1988 Caffyns staged a motor show with a difference, by
taking over the South of England Showground at Ardingly for a highly
successful “Ride the Range” thy. This provided a family day out with TV
and Radio personality Ed Stewart hosting the show. Competitions and
sporting attractions were added to the opportunities of test driving
dozens of demonstration vehicles.
The 1980s saw a considerable growth in the UK of business leasing and
the operation of company cars. With many regional businesses being
acquired by the large multi-national companies, fleet vehicle
acquisitions were being made centrally in much larger quantities,
resulting in manufacturers supplying direct rather than through dealers.
This led to Caffyns’ branches relying more on sales to local businesses
and private buyers.
During the mid ‘80s world-wide recession, high interest rates and
increasing unemployment led to a decline in consumer spending with many
companies going out of business. Although this was a difficult trading
period, with its strong background and astute management, Caffyns were
able to maintain modest profits.
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