Nissan/Nissan Diesel/Fiat/Alfa/Renault
With the exception of Nissan
Diesel outlets, the other
franchises in this division
recorded substantial losses.
However, some dealerships
excelled in other key performance
areas.
Renault The Glen was named
National Dealer of the Year
and Aftersales Dealer of
the Year with international
recognition for professionalism.
Renault Pietermaritzburg
received category Dealer
of the Year recognition.
Nissan Diesel Japan bestowed
the top international award
for outstanding service on
both Alrode and Boksburg
aftersales outlets, placing
them number one in the world.
The Nissan, Renault, Fiat
and Alfa franchises have
been restructured. This should
lead to higher levels of
efficiency and improved profitability.
Nissan Diesel continues to
grow and returns remain excellent.
Our new Alrode facility is
already profitable, with
records achieved month after
month. We have increased
our market share and fleet
marketing activities are
delivering excellent results.
Peugeot
Peugeot’s product quality
and reliability are now very
competitive, but sales were
disappointing and substantial
losses were incurred. We
closed the Rosebank dealership
and further rationalisation
may be necessary.
Toyota
The Toyota and Lexus franchises
contributed significantly
to McCarthy’s profit, beating
budget despite a deteriorating
market.
The opening of five new
Toyota and Lexus dealerships
during the 2008 calendar
year will allow us to grow
our sales further. Unfortunately,
profitability will be under
pressure due to squeezed
margins and higher facility
costs.
New facilities conforming
to Toyota SA’s new retail
concept programme were opened
in February at Tableview
and in June at Woodmead.
Further new outlets arising
from relocations from small,
unsuitable facilities are
under construction.
The Lexus standalone strategy
saw the opening of Lexus
Midrand in January and we
will begin trading from a
new Lexus Lynnwood site in
November.
Volkswagen/Audi/VW Commercial/Seat
New unit sales fell 20%
while used-vehicle profitability
was eroded. However, aftersales
departments produced good
results and will be the backbone
of the franchise until new
models arrive in the third
and fourth quarters of 2009.
The VW commercial vehicle
franchise has been accommodated
in a modern facility in Witbank
and is producing excellent
results.
In line with franchise requirements,
the Audi Centre in Umhlanga
is to be housed at a standalone
site.
The prestigious Audi R8
franchise was awarded to
our Audi Centres in Durban,
Menlyn and the West Rand.
All dealerships have been
upgraded to Audi’s international
franchise requirements.
Volkswagen of SA awarded
the Dealer Group of the Year
title to the McCarthy Group
for both VW and Audi. Volkswagen
of SA also bestowed the distinguished
Diamond Pin award on McCarthy
VW franchise managing director,
Charles Bailey.
Value Centres and
ValueServe
Seventeen Value Centres
were established to provide
retail outlets for imported
vehicles, expand McCarthy’s
presence in the used-car
market and create additional
sales opportunities for
McCarthy’s finance and
insurance products. Significant
losses were incurred.
