Pretoria - Sandown Motor Holdings, in which motor manufacturer DaimlerChrysler South Africa (DCSA) acquired a 75 percent stake in 2002, is making massive investments in new vehicle dealerships and lifestyle centres, in line with DCSA's new retail brand separation strategy.
Arthur Mutlow, Sandown Motor Holdings' divisional director for Gauteng, said yesterday it officially opened a new R50 million Mercedes-Benz passenger vehicle dealership in Sandton this week and would be officially opening a R55 million Chrysler Jeep lifestyle centre at Forest Farm in Johannesburg later this month.
Mutlow said the new Mercedes-Benz Sandton dealership replaced the Village Close dealership, which was closed in April.
The new Sandton dealership had a 30-vehicle preowned showroom, a four-vehicle new car showroom, a bistro and a 24-bay workshop. It employs 120 people.
The Chrysler Jeep centre would in future also sell Dodge vehicles and have a 40-vehicle preowned display area, 24 bay workshop, huge parking area and employ about 75 people, he said.
These openings were preceded by the official opening in March this year of a new R40 million Mercedes-Benz Constantia Kloof dealership on Hendrik Potgieter Street in Johannesburg.
Construction also commenced this year on a R130 million Mercedes-Benz and Chrysler Jeep lifestyle centres at Century City in Cape Town for Sandown Motor Holdings. These centres will open in February next year.
These investments follow DCSA restructuring its multifranchised dealership model with one characterised by brand separated or brand-specific dealer outlets for Mercedes-Benz, Chrysler and Mitsubishi.
The restructuring involved Sandown Motor Holdings, its original owner, Roy McAllister, who still has a 25 percent stake, 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.
Sandown Motor Holdings is responsible for DCSA's retail passenger car franchises in western Gauteng and the Western Cape metro areas plus the commercial vehicle franchises for the northern and western Gauteng, and Western Cape metro areas.
Mutlow said Sandown Motor Holdings accounted for 21 percent of Mitsubishi passenger and light commercial retail sales;
24 percent of Mercedes-Benz passenger vehicle retail sales; 27 percent of Chrysler Jeep retail sales and about 30 percent of DCSA heavy commercial vehicle sales.
Fritz van Olst, DCSA's management board member for sales and marketing, said in February this year that its new vehicle dealer strategy was gaining momentum with about R600 million due to be spent this year on new dealerships and the upgrading of existing dealerships.
Van Olst said the strategy involved investment of between R1.8 billion and R2 billion, and about 20 percent, or R300 million, of this had already taken place.
Stefan Fischer, DCSA's divisional manager finance, said earlier this year Sandown Motor Holdings would invest about R400 million in its facilities between 2004 and next year, and its revenue had grown from R2.77 billion in 2002 to R4.6 billion in 2003 and R5.4 billion last year.
In the same period, its number of dealerships increased from 16 to 24 and it now had three service centres, one more than in 2002, he said.