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- Product News
- 21 November 2024
They are very excited about the expansion of the dealership to a muti-franchise set-up with the addition of two new brands, says Renier Engelbrecht, Dealer Principal at BB Nissan Sinoville in Pretoria.
The new brands are Omoda and Jaecoo (O&J), part of the Chinese Chery Group, but at dealership level split from Chery locally. Although part of the same company, at dealership level they want to establish the Omoda and Jaecoo brands as individual entities, he tells Dealerfloor.
“We had enough space at our current Nissan dealership since the withdrawal of Datsun two years ago. We split the showroom floor and have separate entrances for Nissan on the one side and Omoda and Jaecoo on the other, each with its own sales team and manager. The rest of the backroom functions is shared in the typical multi-franchise manner to scale down on the duplications of costs.”
Renier says the price segments of the Omoda and Jaecoo (the first Jaecoos will arrive shortly), are different to the offering on the Nissan side and that it is also two distinctive types of buyers for the Japanese and Chinese manufacturers.
“With the addition, we have increased our product offering to a wider range of customers. The fact that Omoda (Crossover) and Jaecoo (SUV) share drivetrains and are part of Chery, lend a lot of credibility to the two nameplates as Chery is one on the top-selling brands in South Africa.
“Omoda has been in die country for a couple of months now and are doing well. The model range will be extended with an even better value proposition on the entry side of the range. The Jaecoo SUV will most certainly capture the imagination and draw new customers to the dealership,” Renier says.
Asked if it is difficult to sell a brand-new name brand, he says the dealership has a solid reputation and good name and that alone should contribute to the credibility of the vehicles and peace of mind for customers.
Dealerfloor asked Renier about the declining new vehicle market and the way forward for dealerships. “Although fewer new vehicles are sold compared to previous time periods, there is still a lot of new cars finding homes each month.
“Our challenge at dealership level is to find ways to get our cut of the cake and increase it to be profitable. That means we have to work harder, smarter and offer more than our competitors do to gain an edge with new vehicle sales.
“I believe we have, as we mentioned, a solid reputation with customers and that we render the best possible service across the spectrum of the dealership, from sales to the workshop,” he says.
“Yes, we are losing the very popular NP200 bakkie on the Nissan side like everyone knows, but there is still more than a decent product offering from Nissan on the showroom floor. With the addition of Omoda and Jaecoo next door, we are spreading our wings.”
Renier, who joined the dealership in 2007 as Service Manager, says because of this background, this part of the dealership lies close to his heart and is a major part of the business. We are also fortunate that owing to our location, we get a good mix of business customers from the nearby industrial areas and also from a number of big suburbs in the northern part of Pretoria.”
He was appointed as Dealer Principal in 2024 and over the years the dealership has won many accolades across the spectrum of the business. He boasts two Service Manager of the Year titles from his days in that position.
“I believe placing the customer centre stage is the right approach, and I am optimistic about the future. The customers are out there, we need to keep them coming back and getting new ones with our approach and product offering,” Renier says.
Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
One of the latest Chinese automotive brands to establish itself in South Africa, GAC Motor, is benefitting from the expertise of well-known motor groups in the country, like the BB Motor Group.
Stellantis has announced the expansion of its multi-franchise dealer network with the addition of the Fiat and Jeep brands to the existing Westvaal Motor Group dealership in Klerksdorp in North West Province.