Motor industry needs to drive its own recovery

George Mordaunt, owner of The Mordaunt Group motor dealership in Clonmel, Co Tipperary has said that the loss of the Bill Cullen franchise only proves the inability of dealers to function without a cushion.

It emerged today that a receiver has been appointed to Cullen’s two remaining dealerships, in Swords and Liffey Valley, ending his days in the motor trade.

Now 30 years in business, The Mordaunt Group employs 15 people. It is the longest serving motor dealership in Clonmel, due mainly to the fact that it have adapted with the times.

It now specialises in quality used cars, having recently created the online resource wesourceNEcar.com, which allows people to choose their own used car at a price that competes with the top five cheapest online.

“Our strategy of entering exclusively into the used car market while offering a creative alternative to selling has proven to be the saviour of the company. We believe this is where the hole is in the market,” said Mordaunt.

Motor industry has lost its way He believes that the industry has lost its way over the last five or six years and that certain aspects are self inflicted because of distributor pressure in pursuit of market share through discount pricing.

“There are too many dealerships in the country for a market of 75,000 new cars per year – these figures are similar to those in the late 1980s,” he said.

“The industry is forced to ignore almost 97pc of their market– there is an absolute need for dealerships to increase profit margins by taking each sale on a case-by-case basis and moving away from the outdating pre-registration model as currently.”

Mordaunt believes that it’s time for the motor industry to wake up and be an active participant in its own recovery.

“The motor industry has the ability to maintain over 10,000 jobs at any point and is one of the key industries that drives exchequer receipts given VRT and VAT payment.”

In addition to the car sales side of the business, The Mordaunt Group has a drapery business, The Wardrobe Clonmel, lifestyle barber shop Get your Locks Off, and food business Ballyseedy Cafe in Tralee.

 

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