Marshall Motor Group acquires Silver Street Automotive

Marshall Motor Group acquires Silver Street Automotive

20/02/2013 in News, All News, Dealer News

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Marshall Motor Group acquires Silver Street Automotive

Marshall Motor Group has acquired 10 site group Silver Street Motors for an undisclosed sum.

The acquisition will take Marshall’s group turnover to almost £1 billion and adds the Audi and Skoda brands to its franchise portfolio for the first time.

The deal includes 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 and will push the business one place up the AM100 table above Greenhous Group to 11th place.

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

Daksh Gupta, Marshall chief executive told AM: "For some time Marshalls has been seen as one of the most aggressive groups when it comes to acquisitions.

"This latest deal brings an end to that policy for the time being. That's not to say we won't consider further, smaller scale opportunities should they arise, but our main focus now will be on maximising the value of the massively expanded business we have become - and the brands Marshall represents."

Since early 2009 Marshall has been acquiring businesses in a bid to stretch out from its East Anglia base and create a national dealer group – moving from a turnover of £250m to £927m. It has acquired sites in the midlands, the north east, north west and now the south west over the last four years, making 70% of its portfolio new businesses.

The group has welcomed 1,500 new members of staff to the business. All of the acquisitions have been funded by Marshall’s own cash flows and have involved no debt.

The new Audi businesses will be overseen by David Waghorn, a Marshall franchise director with 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.

Marshall Motor Group geographical spread (green) and Silver Street Automotive network (black) (source AMi):


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Silver Street Automotive

Exeter-based Silver Street Automotive was formed in January 2009 with the merging of Silver Street Motors and Audi South West.

The merger led to a group with 13 centres in six locations across the South West offering new and used car and van sales, corporate and business sales, servicing, repairs, parts, accessories, Motabililty and accident management and repair.

Silver Street operates the new vehicle franchises for Audi, Seat, Skoda and Volkswagen cars and vans.

In February 2013 the group was bought by Marshall Motor Group.

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Turnover

turnover

Profit before tax

profit guide

Gearing

gearing guide

Skoda Auto

Skoda is targeting sales of up to 78,000 units in the next five years as it secures an ever-stronger order book backed by a growing range.

Its sales hit a new high in 2010 backed by an expanding dealer netowork and they are set to reach a new record in 2011 too.

This growth is balanced between fleet and retail sales and Skoda expects there to be a 45/55 fleet retail split as demand grows in future.

A key launch for 2012 will be the Skoda Citigo, based on the VW Up, which will mark Skoda's entry into the A-segment and a significant potential uplift in sales.Until now, Roomster and Fabia have been its smallest cars.

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Market Share

market share

Total Sales

total sales guide

How do dealers rate the value of the franchise?

overall rating

Audi

The Audi network has hovered around the 120 sites mark for many years, but both sales and market share have been on a consistent upward trajectory.

Its model range continues to grow and the brand has benefited from the increasing popularity of premium badge cars at the expense of mainstream products.

With an enormous product range, Audi’s cars cover traditional sectors as well as important niches. It has overtaken BMW as the best-selling premium car brand in the UK and has increased its market share in 2014, putting it on course to exceed 2013’s total registrations of more than 142,000.

Perhaps unsurprisingly, dealers value the franchise highly, with its NFDA Dealer Attitude Survey scores increasing steadily over the past two years.

As the TT range is about to be renewed with a new model, and plug-in hybrid technology is about to be introduced with the A3 e-tron, there is still room for Audi to grow.

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Market Share

market share

Total Sales

total sales guide

How do dealers rate the value of the franchise?

overall rating

Volkswagen UK

The third-biggest player in the UK car market, Volkswagen has seen its share decline slightly in the past few years despite increasing its registrations.

With 196,000 registrations in 2013, Volkswagen almost matched its previous best year of 2007 and is in with a chance of improving on that in 2014, although its market share this year is running slightly behind last year’s 8.57%.

Prospects in 2015 look better with an all-new Passat on the new Volkswagen Group MQB small and medium car platform.

The facelifted Scirocco has just been introduced and the Touareg also benefits from a nip and tuck for 2015.

Volkswagen added two electric cars to the range in 2014, the E-Up and the E-Golf, and zero emission options will be joined by an ultra-low emission Golf GTE plug-in hybrid in 2015, offering 204bhp with an expected CO2 rating of 35g/km.

Note: Manufacturers administer the franchised contracts for cars and LCVs in different ways. Broadly, for some the contract to sell cars and LCVs is managed through a separate dealer contract. For others one contract covers both vehicle types.

AMi seeks to acknowledge the difference and reflect it in the count of each dealer groups total franchised outlets (franchised businesses) and sites (locations).

Volkswagen treats car and LCV sales as coming under separate contracts –AMi counts each individually.

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Market Share

market share

Total Sales

total sales guide

How do dealers rate the value of the franchise?

overall rating

AMi enables you to:

  • Monitor the UK’s most dynamic dealers
  • Identify the fastest growing dealers
  • Assess brand relationships
  • Benchmark performance
  • Access dealer health checks
  • Assess risk and identify opportunities
  • Track dealer group activity.

AMi is available on subscription. To find out more download our digital brochure or call Sara Donald on 01733 366474 or email sara.donald@bauermedia.co.uk.

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Comments (5)

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Karl Davis - 88 weeks ago

As someone who has never been afraid to offer my opinion openly, without the need of a false moustache and glasses for disguise, I stand by my earlier comments sgcb - whoever you are?

Even after 30 years in the industry with retail, manaufacturer and for the past 12 years consulting experience, I can tell you that I haven't got all of the answers. I do know, however, that it's much harder for retailers to make money in todays climate, than to read a set of accounts. 50% of motor retailers forecast a loss for 2012, and that included premium brands too. Whilst insolvencies overall are slowing, in the motor retail sector they are speeding up - averaging more than 10 a week. The number would be even greater if the larger groups were not being so aquisitive!

I know the former directors of the Silverstreet business well, and of course their trading position to date. They are good people that will find their ways into other senior roles within the industry if they wish.

Motor retailing with premium brands is a cash hungry business, and Marshall Motor Group has the cash to take the Silverstreet forward.

Rather than just ofering an armchair opinion about our industry, I'm passionate about offering practical support for retailers. In support of the smaller groups and independents, I'm co-hosting a Directors' Workshop called "Pole 2 Pole" on 7th & 21st March in Birmingham and Newbury respectively. As the title suggests, it's designed to address the polarity in retailers performance.

When cash is tight you have to turn stock quicker and sweat your assets. Pole 2 Pole will reveal the guerilla tactics and world class habits to more actively manage working capital, people, performance related pay and relationships with banks. Karl Davis, MD, Coachworks Consulting Ltd. www.coachworks-consulting.com

sgcb - 88 weeks ago

@Karl Davis -you are right Karl! You said it all in your last paragraph they didn't obviously make enough or manage it!

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audi123 - 88 weeks ago

sgcb, you obviously don't know the staff or the business that well either! Silverstreet has among the most dedicated and capable staff in the business and has purely not been able to compete with the demands imposed on it by the Manufacturers due to a lack of cash in the bank. Perhaps now they will be able to go from strength to strength with the backing of Marshall and a lack of debt that has thwarted it.

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sgcb - 88 weeks ago

Karl you obviously haven't looked at their accounts recently!Try company check on google before you make a statement like that.

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Karl Davis - 88 weeks ago

Marshall Group have aquired a well runn business and some great new colleagues. It has been our pleasure to support Silverstreet over the past couple of years and we wish all concerned continued success. Karl Davis, MD,Coachworks Consulting Limited. www.coachworks-consulting.com

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