MARSHALL ACQUIRES SILVER STREET AUTOMOTIVE BUSINESSES

Marshall, the privately owned dealer Group, has announced that it has completed its acquisition of the Audi, Volkswagen (Passenger Cars and Commercial Vehicles) and Škoda businesses in Devon and Somerset from Silver Street Automotive.
The deal includes 10 businesses: three Audi businesses (Exeter, Plymouth and Taunton); three Volkswagen cars businesses (Barnstaple, Bridgwater, Taunton); two Volkswagen commercial vehicles businesses (Barnstaple, Bridgwater); Škoda in Barnstaple and the Trade Parts Specialist business in Exeter.
The acquisition takes the total number of franchised dealerships in the Marshall portfolio to 70.

Under the terms of the agreement, all 324 colleagues at these sites have transferred to Marshall, taking the headcount at Marshall to around 2,300. The combined group’s turnover for 2012 is £927m with Silver Street accounting for £115m.

Commenting on the acquisition, Daksh Gupta, Chief Executive at Marshall said: “We are absolutely delighted to be partnering with Audi and also to be joining the Škoda network. We are also pleased to be further strengthening our relationship with Volkswagen Passenger Cars and Commercial Vehicles especially having joined their respective networks just last year.”
Daksh Gupta added: “This is a significant acquisition for Marshall which sees us continuing our strategy to become a national dealer group. Since early 2009, we have added substantial scalable businesses in the Midlands, the North East, the North West and now the South West, all the time reducing our reliance on our historic heartland in East Anglia.”
“Since 2009, our underlying turnover has grown from £250m to a run rate that is rapidly approaching a billion. 70% of our portfolio is new and we have welcomed around 1,500 new colleagues to Marshall. All of our acquisitions have been funded by our own cash flows and have involved no debt. Our plan is to continue to grow the business through acquisition, but a key focus for us now is optimising the group’s performance."
"This performance optimisation strategy is to benefit all our key stakeholders; our customers, people, brand partners and shareholders.”

Simon Thomas, Chief Executive of Volkswagen Group UK commented “This is an important acquisition event for Marshall and the Volkswagen Group. It will strengthen our partnership by increasing representation on our Volkswagen car and commercial vehicle brands whilst also introducing Marshall as a new investor to our Škoda and Audi franchises.”

The new Audi businesses will be overseen by David Waghorn, an established Marshall Franchise Director with significant prestige brand experience.
The Volkswagen businesses and the Škoda business will be run by Chris Norris, the Marshall Brand Director for Volkswagen who joined the family‐owned group in 2012 following the Company’s acquisition of their first Volkswagen businesses.
Daksh Gupta concluded: “I very much look forward to welcoming our new colleagues to Marshall and to introducing them to our Company, our culture and our values.”

Marshall closes car dealership

Marshall has closed its Vauxhall dealership in Ely.
After more than a decade in the city, the branch in St Mary’s Street closed on Friday.
Christopher Walkinshaw, the company’s communications director, said: “We are working with all 12 employees to find them alternative employment within the company.
“Vacancies are coming up at Marshall all the time so we are confident that we will be able to find the majority, if not all of them, alternative roles.”
He said the lease on the site was due to end in the next few weeks and Marshall decided to close rather then renew it. “We are now working with our customers to deal with their needs.”
The dealership has been in Ely since 2001.
The site’s owner, Ely businessman Mike Grey, said: “I do not know what the future holds for the site yet. I am now looking at all the possibilities, such as leasing it out to someone else or developing it.”

Nissan Pioneers First-Ever*1 Independent Control Steering Technology;

To Be On Sale Within a Year

- Delivers responsive performance by controlling tire and steering angles inputs independently-

YOKOHAMA, Japan (October 17, 2012) - Nissan Motor Co., Ltd. today unveiled the world's first steering technology that allows independent control of a vehicle's tire angle and steering inputs. This next-generation steering technology was developed by Nissan.

A conventional steering system directs tire movements by transmitting steering inputs to the tires via a mechanical link. Nissan's next-generation steering technology reads the driver's intentions from steering inputs and controls the vehicle's tire movements via electronic signals. This transmits the driver's intentions to the wheels even faster than a mechanical system and increases the direct driving performance feel by quickly and intelligently communicating road surface feedback to the driver.

The system controls and insulates the vehicle from unnecessary road-generated disturbances to deliver only the necessary performance feel to the driver. For example, even on a road surface with minor ridges or furrows, the driver no longer has to grip the steering wheel tightly and make detailed adjustments, so traveling on the intended path becomes easier.
Accompanying this next-generation steering technology, Nissan has also developed a camera-based straight-line stability system to further enhance on-center driving capability. This system is a world-first*2 technology that improves vehicle stability by making small input angle adjustments so the vehicle will accurately trace and continue as planned in the lane it is traveling. If the vehicle direction changes due to road surface or crosswinds, the system acts to minimize the effect of these conditions resulting in reduced steering input from the driver.

Using a camera mounted above the vehicle's rearview mirror, the system analyzes the road ahead, recognizes the lane direction, detects changes in the vehicle's direction, and transmits this information to multiple electronic control units as electronic signals. If a discrepancy occurs, the system acts to reduce the discrepancy by controlling the opposing force to the tire angle. By reducing the frequency of detailed steering input adjustments, which are a cause of fatigue on long drives, the driver's workload is greatly reduced.

This next-generation steering technology's high reliability is achieved by multiple ECUs. In the event a single ECU malfunctions, another ECU will instantly take control, and in extreme circumstances such as the power supply being disrupted, the backup clutch will act to connect the steering wheel and wheels mechanically, ensuring continued safe travel.

This technology will be equipped on select Infiniti models on sale within one year to provide "Driving as Intended" and "Driving with Peace of Mind" for owners.

*1: World-first development of an independent control steering technology that controls tire and steering angles inputs independently.
*2: World-first development of an accurate tracing technology that enables a driver to continue driving as planned in the lane with small steering angle adjustments (depending on road conditions).

Face to face: Marshall Motor Group

Marshall Motor Group continues on its acquisition trail, but of equal importance to chief executive Daksh Gupta are the controls and processes in place at the group to meet the challenges and maximise the opportunities, including the development of the company’s rapidly increasing staff.

Jeremy Bennett: What are your strategic plans?

Daksh Gupta: Our strategic imperatives are around optimising the performance of our existing core businesses with a focus on customer service, our people, brand partnerships and operational excellence. The second part is the acquisition side, which is about balancing our brand portfolio and part of that is about keeping good pace with the market. Also it’s about optimising our cash management around work and people issues. It’s a case of building on reputation for values in business.

JB: What are the headline numbers?

DG: Our operating profit went backwards, from £10.2 million to £6.9m on a like-for-like basis on a turnover of more than £700m. In 2010 we achieved £581m turnover, and we made £9.9m operating profit. But within that we took some exceptional hits, part of which was £1.6m related to acquired sites, business restructuring and divesting of businesses.

JB: When you buy an underperforming business there’s a price that you pay because it’s failing. It costs you to drag it up.

DG: This year we’ll break even on the new businesses. Next year we’ll make half a million and the year after that a million on them as the impact of our turnaround policy is felt.

JB: What were the other reasons for the fall in profits?

DG: We are heavily concentrated with a number of Japanese brands (Marshalls is Honda’s biggest partner with seven franchised outlets) and the tsunami had a comparatively worse effect on our portfolio compared to groups with less representation of Japanese brands. The good news is we did outperform the 19% national decrease as we were down only 12%. But if you take 12% out of a £700m business it’s going to hurt.

Aftersales

DG: One of the challenges we face is that since our volumes were down last year we’re not going to see those customers this year for servicing, so there’s a whole host of stuff that we need to do to make sure that we’re maximising every aftersales opportunity.

JB: What are you going to do to improve your absorption rate of 72% in extremely challenging conditions?

DG: We’re concentrating on everything around aftersales mar-keting, making sure we’ve got the right resource in terms of divisional help. We’re recruiting two divisional aftersales guys and plan to increase this to five.They’re effectively a resource employed by the group or by each division to support the service managers, helping them drive the performance.

One of the things we do is track electronic vehicle health check activity on a weekly basis. Had we not done this I don’t think we’d have achieved 72% absorption. We were in the 80s, but clearly the decline in retail volumes has hit that.

Marshall’s brand portfolio

JB: You’ve added Kia, Mercedes-Benz and boosted your representation with Honda and Jaguar. Why?

DG: Over the last three or four years we’ve been doing deals that have added brands or have been divesting of brands to the point where we now have fewer partners. We have to work in scalable markets and if we’ve divested from certain brands it’s invariably because they’ve been loss-making, a business where structurally we’re just not going to make money; or it’s not been a core brand for us.

JB: Have you now got your core brands?

DG: We’re not quite there yet. There are a couple of brands that we would love to represent, but we also have to recognise that those opportunities come up very rarely. Our strategy on brand is based on growing scale.

JB: You’ve moved out of your East Anglia heartland. Can you focus on more than one region and still be successful?

DG: The scale of change in Marshall Motor Group is enormous. In 2008 we were very much a regional group. And if I was asked to describe the strategy it was ‘dominate a region’. That was fine for a period of time, pre-financial crisis when the market was 2.4m new cars. You could guarantee a return because the volumes were significantly higher and absorption was higher. But the world has dramatically changed since then with a smaller market and the additional power of the internet.

JB: Your response has been to move to the north-east and north-west.

DG: Those areas are where I can achieve scale. You have to consider that whatever the size of the market area you’re in, a certain amount of the cost burden will be the same for me as it would an owner operator. But if you could operate in a city market the opportunity could be three times the size, your cost base will be nowhere near the same ratio as three times the opportunity.

In 2008 our average turnover per site was £9m. This year we’re forecasting £13.5m. That’s a function of two things: one, we’ve sold more through our existing operations. Secondly, it’s the result of operating in bigger markets.

Between 2009 and today we have added 33 new businesses and all have been broadly out of our traditional heartland, extending our reach into the north-west with our five Mercedes-Benz and two Smart dealerships; into Yorkshire adding four further Honda businesses; into Buckinghamshire, with the acquisition of Pilling Group; into Leicestershire with the Francis Group; opening businesses in places like Nottinghamshire.

But in those three years we have also been divesting of brands. We started with 41 businesses, we’ve added 33, but divested of 13 businesses, so our total is now 61. Our brand portfolio has reduced from 28 to 19.

Marshall Motor Group factfile:

Annual turnover: £747m
AM100 ranking: 12
Franchises: Volkswagen (3),
Mazda (1), Renault (1),
Mercedes-Benz (5), Smart (2), Vauxhall (6), Ford (5), Peugeot (5), Honda (7), Land Rover (5), Jaguar (4), Volvo (7), Saab (1), Citroën (2), Mitsubishi (1), Kia (3), Hyundai (1), Toyota (2), Nissan (2), Chrysler Jeep (2), Chevrolet (1), Honda motorbikes (1), Dodge (2), Seat (2), DAF (1), Suzuki (1), Dacia (1)
Annual sales volumes:
40,000 (new and used cars)
Annual servicing:
360,000 cars annually
Outlets: 61

Marshall Family Day 29th September in Cambridge
The Marshall Family Day to be held at The Plough in Fen Ditton in Cambridge on Saturday 29th September from 12 - 6pm.

The Plough will be offering a BBQ as well as their normal offerings and The Marshall Network will be holding a charity dog show for Marshall employees to bring their K-9 friends along!

There will also be a bouncy castle for the children! The Network will also be extending the Photo Competition so that the judging will coincide with the dog show; we hope that you will bring the entrants along, to claim their prizes!!

Everyone is welcome, we hope to see you all there to support Guide Dogs for the Blind and the Marshall Group of Companies.

For more information please follow @MarshallNetwk 

Peter Cakebread to Head Up BVRLA

Peter Cakebread, managing director of Marshall Leasing has just been appointed Vice-Chairman of the British Vehicle Rental & Leasing Association (BVRLA) and will take over as Chairman of the BVRLA in May 2013, a position he will then hold for two years until 2015.

The BVRLA is the UK trade body for companies engaged in the leasing and rental of cars and commercial vehicles. Its members provide shortterm rental, contract hire and fleet management services to corporate users and consumers.

The BVRLA’s members operate a combined fleet of around 2.5 million cars, vans and trucks, buying nearly half of all new vehicles sold in the UK. Through its members and their customers, the BVRLA represents the interests of more than two million business car drivers and the millions of people who use a rental vehicle each year. As well as lobbying the

government on key issues affecting the sector, the BVRLA regulates its members through a mandatory code of conduct.

Peter has been heavily involved with the Association for many years, during which time it has successfully represented the interests of the industry.

Commenting on his appointment, Peter said: “It is, of course, an honour to be selected for this role, which reflects the standing Marshall Leasing has within the industry and the Association. Once again, it is an example of Marshall Leasing punching above its weight, as this role would usually go to the head of one of our larger competitors.”

Marshall Motor Group completes acquisition of Holland Brothers Lincoln Jaguar

Marshall, the family-owned dealer group, has announced today the completion of its acquisition of the Lincoln Jaguar business from the Cooperative Society.
This acquisition brings to four the total number of Jaguar dealerships in the Marshall Group and means that Marshall has now doubled its representation with Jaguar in the last 3 years. The Group’s other Jaguar dealerships are in Peterborough, Cambridge and Ipswich.

Speaking about the acquisition, Daksh Gupta, Chief Executive Marshall Motor Holdings, said: “This is a great acquisition for Marshall as it now gives us a larger contiguous territory, which serves the East of England from the Humber down to East Anglia".
"Since 2008 we have been reshaping our portfolio and focusing on key and core brand partner relationships. This acquisition is consistent with this strategy to increase the depth of our representation".
"It is also consistent with our strategy to de-risk our previous over exposure to Cambridge and Peterborough. We have represented the Jaguar brand for nearly 40 years now and are delighted to be growing with Jaguar, especially at a time when their investment plans for the growth of their own business are so exciting”.
Under the terms of the deal the Lincoln Jaguar employees have transferred from the Co-op to Marshall. Daksh Gupta added: “I am delighted to be welcoming our new
colleagues to the Group and we look forward to meeting them in the next few days as we introduce them to their new colleagues across the rest of the Marshall Group”.
Jeremy Hicks, Managing Director, Jaguar Land Rover UK, said: “Jaguar has a very exciting future and strong retail partners are fundamental to our success in the marketplace. Marshall is an important partner for Jaguar and it gives me great pleasure to see their continued growth with our brand in the UK. I wish them every success with their acquisition of the Lincoln Jaguar business.”

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