Looking after 13 multi-franchise dealerships representing 14 brands (and still growing), is by no means an easy task. It takes a special approach by a special leader to keep the ship on the right tack during these challenging times the retail automotive industry is facing.
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Dealerfloor
had a chat with Sean Singleton, Franchise Director of Combined Motor Holdings, a JSE-listed company with large interests in the vehicle retail sector, the car rental business and, amongst others, workshop equipment for vehicle dealerships.
“We are so exited about our recent renovations of four major Ford dealerships in the Group and the completion of a brand-new, state-of-the-art Toyota dealership in Alberton. Furthermore, we are in the process of moving to new premises for our recently acquired UD Truck division in Pinetown. The facility covers more than 28 000 m2
and will be the talk of the town,” Sean tells us.
Asked about the re-introduction of Foton in South-Africa by CMH, he says they made the decision to also distribute the Foton franchises to outside the traditional CMH network. “With CMH’s focus mainly on KwaZulu-Natal and Gauteng, we have opted to include other motoring groups to cover the country in its totality for Foton, with around 40 dealerships currently.
“We expect big things from Foton with a wide range of vehicles that also includes a large electric offering in different segments. I am pleased that before the end of year, we will have a number of MG dealerships up and running, providing customers with a choice of affordable hatchbacks and crossover/SUVs. CMH has a wide variety of products that also includes the likes of Proton,” Sean tells Dealerfloor.
He says the car business today revolves around what consumers can afford and that the strong inroads especially made by Chinese brands, are proof of this. The value proposition Chinese manufacturers present today, with good quality cars, all the necessary back-up and excellent warranties, even puts used cars under pressure.
“We are fortunate to have a number of Chinese brands within our Group and with the addition of Foton and MG, we will expand our portfolio in this regard. In terms of the pre-owned car market, we are able to supplement our used offering with rental vehicles that have a full record and service history, providing buyers with peace-of-mind choices.”
As someone who has to make the dealerships viable, Sean says the only way forward is the multi-franchise concept as it cuts down on a number of overheads commonly shared by different brands. “It is, however, vital that each brand has a dedicated sales team in place to promote the specific brand and build a relationship with the customer base.
“I am not in favour of recycling sales executives, but I am looking for new blood with fresh ideas and new approaches to the business. A crucial aspect, which is also my motto, is to focus on what you can control.
“With this remark I mean that we cannot do much about fixed costs like the price, warranty and the vehicle itself. In short – control the controllables. However, we can do a lot about how we approach a customer, the quality of the service we render and the way we treat our staff. I always say a happy staff complement makes for happy customers and happy customers will keep coming back to you,” Sean says.
He tells us that although he oversees all the dealerships, he still sells around 20 vehicles a month just because of the relationships he has built over decades in the industry. “In one instance, I sold 39 vehicles over a period of 30 years to one specific family. I am 40 years in the business and have been involved in all the various departments and roles.”
The start of his career in the automotive industry has an interesting angle. “My dad took me to the local Ford dealer with the intention of buying me a car when I was an 18-year-old ‘laaitie’. My dad and the owner got talking and when we walked out, my dad bought the dealership.
“I started at the bottom as one of the used car sales assistant’s apprentice. In later years, my dad sold the dealership and I moved into the used car business. My career progressed and I got involved with Hyundai and later Imperial and then, about 20 years back, I became part of CMH, also by moving up the ranks,” Sean tells us.
Sean concludes that he is optimistic about the future of the automotive industry and the expansion of their dealer network and changing people’s lives, be it a staff member or a customer.
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