Vehicles - Overview
In line with the group’s intention to simplify its businesses, the creation of one consolidated Vehicles division, Motus Holdings, from 1 July 2016, will create opportunities to reduce costs and drive profitability through the sharing of expertise, eliminating duplication of assets, functions, effort and expenses, and minimising capital employed. Identifying and realising these opportunities willbe a key focus for divisional and group leadership over the next year, with various work-streams already underway.
At the core of the division’s strategic positioning is its participation in all aspects of the vehicles value chain related to the ownership, usage, running and maintenance of vehicles. In addition to diversifying its revenue base, this positioning enables the division to leverage cross-selling opportunities and synergies across its vehicles-related businesses.
From the 2017 financial year, Motus Holdings will report segmentally on two sub-divisions:
- Import, Retail, Car Rental and Aftermarket Parts
- Motor-related Financial Services
However, as consolidation, integration and management restructuring has only recently commenced, this report deals with the strategy of the three sub-divisions as configured in the 2016 financial year.
Vehicle Import, Distribution and Dealerships
Exclusive importer and distributor of 14 automotive brands, covering virtually all segments of the value chain. Retailer, aftersales servicing and parts through 136 owned and 193 franchised dealerships.
WE CREATE VALUE THROUGH:
- Our status as an exclusive importer of quality vehicle brands, the largestbeing Hyundai, Renault and Kia
- Coverage of virtually all aspects of the vehicle value chain, from importing, retailing and rental to aftersales service, parts and financial services.
- Ability to multi-franchise and add additional brands to our product portfolio by leveraging the scale in our existing distribution and dealership network.
- Leveraging financial services to gain market intelligence on sales and vehicles, enabling the division to reach clients with the right product at the right time.
- Ownership of 70% of our physical infrastructure.
- Ability to strengthen our position in the value chain through value-added products and aftersales parts and services, which provide annuity income.
Vehicle Retail, Rental and Aftermarket Parts
Represents 22 original equipment manufacturers (OEMs) through 80 passenger and 57 commercial vehicle dealerships (including 38 in the UK). Provides vehicle rental and distributes parts and accessories.
- Extensive footprint of 80 passenger vehicle dealerships representing 22 locally based OEMs.
- 57 commercial vehicle dealerships (including 38 in the UK) and workshops representing 12 brands in South Africa.
- Beekman canopies (manufacturing and retail).
- Jurgens caravans (manufacturing and wholesale).
- Distributor, wholesaler and retailer through 764 owned and franchised stores.
- Midas, Alert Engine Parts and Turbo Exchange.
- Focus on parts and accessories for vehicles five to ten years old.
- Car rental (Europcar and Tempest).
- 63 dedicated pre-owned retail outlets (Auto Pedigree).
- Panel shops.
WE CREATE VALUE THROUGH:
- The business’s position as the largest vehicle retailer and aftermarket parts distributor, and the second-largest car rental operator in South Africa.
- Well-balanced footprint of vehicle retail operations which represent almost all major brands in South Africa, with the benefit of scale and a broad spread of motor-related services in its portfolio.
- Trusted relationships with manufacturers, franchisors, franchisees, customers and suppliers.
- Ownership of 70% of facilities that retail passenger and commercial vehicles, in prime locations (South Africa and the UK).
- A strong balance sheet and cash generation ability.
- Continual investment in people, as a critical point of differentiation.
- The business’s technical training network for vehicle-related trades, which is the largest in South Africa.
Motor-related Financial Services
Develops and distributes innovative vehicle-related financial products and services through dealer and vehicle finance channels, and a national call centre.
- Mainly motor-related financial services.
- Full maintenance leasing services.
WE CREATE VALUE THROUGH:
- Access to the group’s extensive vehicle dealership network, which provides significant point of sale opportunities for financial services.
- Access to market intelligence through the group’s vehicle businesses and its own data, which provides a basis for the business to create leads for its products and services, enhance the customer’s vehicle ownership experience, and provide for vehicle and customer retention opportunities.
- Ability to feed market intelligence back into the vehicle businesses.
- Cash-generative revenue lines that create strong annuity income streams.
- Proven track record of product and channel innovation, deployment and development.
- Consistent investment in people and technology ensures agility to rapidly respond to market changes and developments.