Core ends TomTom deal
OWNERS of TomTom satellite navigation systems may find themselves lost and looking for an alternative as the sole distributor Core ends its deal to import and support the products.
Core director RJ van Spaandonk said the Dutch manufacturer had repeatedly let SA down by failing to deliver enough of the vehicle navigation devices, not supplying the most recent maps, and providing no advertising budget.
The move plays right into the hands of the rivals Garmin and its local distributor Avnic, as motorists will probably opt for Garmin instead, at least until TomTom appoints a new distributor.
TomTom had failed to honour its contractual obligations since appointing Core in 2006, Van Spaandonk said.
“We haven’t had the support in terms of localised product ranges and marketing. We still believe TomTom is the best
Problems arose from the start, he said, when Christmas deliveries failed to materialise, the devices only contained maps for SA and not southern Africa, and the maps were two generations behind Garmin’s version. TomTom had also promised to invest in advertising, but never did, constituting “a major breach of contract”.
Core held enough stock to fill orders retailers had placed, and would conduct a handover once TomTom either appointed a new distributor or set up a direct presence here, he said.
Core claims to have sold “tens of thousands” of TomToms, mostly through MTN and Vodacom as an incentive when customers renew their cellphone contracts. It had predicted that sales of in-car navigation systems would accelerate tenfold to see 400000 sold this year, creating a market worth R1bn.
Avnic CEO Richard Fearon said there were no reliable figures for market share, but he said TomTom’s sales were “insignificant”.
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