AM Online

SMTA buys group from own members

The Scottish Motor Trade Association (SMTA) has acquired a buying group company set up by its own members for an undisclosed sum.

The group, named SMTA Trading Partners, was initially set up three years ago by five members. It was owned by the members but run by the SMTA.

Membership had increased to 49 by the time of the buy-out.

Douglas Robertson, SMTA chief executive, said: “The SMTA board felt that buying the company would allow its doors to be opened to all SMTA members without the necessity to buy a share in the company.”

Trading Partners hopes to save each dealer up to £25,000 by pooling their buying power and getting discounts on consumables such as oil, number plates, waste management services, tyre disposal, stationery, overalls, water, workshop consumables and valeting materials.

It has no plans to try to gain discounts on parts or utilities.

After generating £500,000 in turnover from 49 members, the SMTA will now be marketing the buying group to its 900 members. It believes it can generate up to £2 million turnover.

Robertson added: “With increased turnover will come keener pricing from selected suppliers.

“We’re in early discussions with other trade associations with a view to allowing their members to purchase through Trading Partners,” he said.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.