Distribution System Assignment

CLIENT:
A major international manufacturer of automobiles and trucks building a distribution system in the United States.

PROBLEM:
Most United States distribution was inherited with the purchase of a financially troubled domestic manufacturer. Dealer performance in many areas was marginal at best. Assignment of new dealers, however, was being contested by existing franchisees. One major new dealer assignment was being blocked by dealer franchise regulations requiring a hearing and decision.

ASSIGNMENT:
MacKay & Company conducted a comprehensive evaluation of overall territory activity, the current franchisee, competitive franchises, other territories with satisfactory dealer performance, customers and non-customers. A detailed report was presented in the hearing supported by expert witness testimony.

RESULT:
The dealer franchise hearing examiner recommended appointment of a new dealer in the contested territory. This new dealer has captured significant market share for our client, business previously enjoyed by competitive products.