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DCSA puts R600m into new dealership strategy
Posted on: Thursday, 10 March 2005. Article source: Business Report
The new dealer strategy of DaimlerChrysler SA (DCSA) is gaining momentum, with about R600 million due to be spent this year on new dealerships and the upgrading of existing franchises.
Fritz van Olst, DCSA's management board member for sales and marketing, said the strategy involved investment of about R1.8 billion to R2 billion. About R300 million of this had already been spent.
"We have about 100 dealer points and 16 new outlets. We will finish upgrading 50 this year and 40 in 2006, stretching into 2007. By then our entire dealer representation will have been remade. At the end of this year about R1 billion should have been invested in our dealerships," he said.
The investment in dealerships follows the company restructuring its multi-franchised dealership model into brand-specific outlets for Mercedes-Benz, Chrysler and Mitsubishi vehicles.
It involves Sandown Motor Holdings, in which DCSA has a 75 percent shareholding, and listed Barloworld Motor, Imperial Holdings and McCarthy Motor Holdings.
The strategy has led to a realignment of dealerships in the main metro centres, with a single dealer group operating in each region.
Van Olst said seven multi-brand facilities and nine brand-exclusive facilities had been completed, with 22 multi-brand facilities and 27 brand-exclusive facilities to be completed this year and a further 41 in 2006/07.
Included was the Mercedes-Benz lifestyle centre in Umhlanga, which involved an investment of R115 million in a joint venture between Barloworld Motors and Natal Motor Industries with Durban South Motors. It opened in December last year.
Construction has started on a R130 million Mercedes-Benz and Chrysler Jeep lifestyle centre at Century City, which is due to open in February next year. It is being developed by Sandown Motor.
Three further Mercedes-Benz lifestyle centres are to be built in Gauteng. One will be built in Sandton by Sandown Motors, another in Menlyn in Pretoria by McCarthy Motor Holdings and the third in Bedfordview in Johannesburg by the Imperial Group.
Stefan Fischer, DCSA's divisional manager for finance, said Sandown Motors would invest about R400 million in its facilities between 2004 and next year.
Fritz van Olst, DCSA's management board member for sales and marketing, said the strategy involved investment of about R1.8 billion to R2 billion. About R300 million of this had already been spent.
"We have about 100 dealer points and 16 new outlets. We will finish upgrading 50 this year and 40 in 2006, stretching into 2007. By then our entire dealer representation will have been remade. At the end of this year about R1 billion should have been invested in our dealerships," he said.
The investment in dealerships follows the company restructuring its multi-franchised dealership model into brand-specific outlets for Mercedes-Benz, Chrysler and Mitsubishi vehicles.
It involves Sandown Motor Holdings, in which DCSA has a 75 percent shareholding, and listed Barloworld Motor, Imperial Holdings and McCarthy Motor Holdings.
The strategy has led to a realignment of dealerships in the main metro centres, with a single dealer group operating in each region.
Van Olst said seven multi-brand facilities and nine brand-exclusive facilities had been completed, with 22 multi-brand facilities and 27 brand-exclusive facilities to be completed this year and a further 41 in 2006/07.
Included was the Mercedes-Benz lifestyle centre in Umhlanga, which involved an investment of R115 million in a joint venture between Barloworld Motors and Natal Motor Industries with Durban South Motors. It opened in December last year.
Construction has started on a R130 million Mercedes-Benz and Chrysler Jeep lifestyle centre at Century City, which is due to open in February next year. It is being developed by Sandown Motor.
Three further Mercedes-Benz lifestyle centres are to be built in Gauteng. One will be built in Sandton by Sandown Motors, another in Menlyn in Pretoria by McCarthy Motor Holdings and the third in Bedfordview in Johannesburg by the Imperial Group.
Stefan Fischer, DCSA's divisional manager for finance, said Sandown Motors would invest about R400 million in its facilities between 2004 and next year.
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