Continued boom in car sales prompts major dealer upgrades

Hundreds of millions of pounds are being spent in upgrading and redeveloping Irish motor dealerships as the boom in new car sales continues. New car registrations this year are likely to exceed 250,000 - up from 174,182 last year, which was itself a record. The previous year, 1989, the figure was 145,717 which was also a record.

Eddie Murphy, sales director of Ford, says about half of their 56 dealers now have improved or redeveloped premises. "You can take it that the expenditure for most would be over £1 million and in some instances as much as £2.5 or £3 million."

Ford's showcase dealerships are, according to Eddie Murphy, almost too numerous to mention. "But we have some exceptional ones like Bandon Motors, Higgins of Galway - which is also our oldest - and in Dublin Finglas Motors and Fort Motors. The retail environment is driving this demand for thoroughly modern facilities and with the incredible buoyancy of the market dealers can afford to invest."

Fiat Auto Ireland has 27 dealerships and Joseph Brown, the dealer development manager, says about two-thirds have modernised or are in the process of doing so.

But there can be problems: "The dealers are having a lot of difficulty getting builders to tender. They are so busy, so committed, with so many other building projects."

He emphasises that redevelopment means more than new air-conditioned showrooms. "The workshop areas have to be state-of-the-art too with clear and well-defined workbays. The overall appearance must be appealing and eye-catching," he says.

He cites among Fiat's showcase dealerships Tractamotors in Blanchardstown, Dublin, where it is believed £2 million was spent recently. It is Fiat's biggest in terms of cars sold.

Others that have been involved in major redevelopment are Grandons at Glanmire, on the outskirts of Cork city, Martin Reilly in Sligo, and H B Dennis at New Street, Dublin and Michael Barrable in Swords, north Co Dublin.

At Opel Ireland, sales director Tony Carey estimates 10 per cent of their 46 dealers have modernised and another 10 per cent have plans. Major Opel dealership schemes have included DG Opel, which relocated from Cabra Road to Navan Road in Dublin, and Kellys, in Waterford, which moved out of the city centre to the Cork road.

The DG Opel scheme involved expenditure of between £4 and £5 million while Kellys' move and redevelopment is believed to represent a £2 million investment.

Paul O'Sullivan, marketing director of Nissan Ireland, says their dealer redevelopment programme is 99 per cent complete. "We embarked on Network 2000 four years ago with the objective of having it all done by the millennium. Apart from two dealerships which have planning problems, we have all our work done."

Nissan Ireland has 50 dealers and Mr O'Sullivan estimates Network 2000 represented a collective dealer investment of between £30 million and £50 million.

At the prestige end of the market, the investment in upgraded Mercedes-Benz dealerships is around £60 million, according to Bill Duffy, sales manager for Mercedes Benz.

"We have 22 dealerships and by next year, every one of them will have redeveloped with their own separate showrooms."

Virtually all of BMW'S 16 dealers in the Republic have been redeveloped. The exception is Joe Duffy Motors, a major Dublin northside dealership which is relocating to Finglas, in an expanded site beside the M50.

"It will be a flagship dealership for the northside and we expect it to be operational before the end of next year," explains Michael Nugent, who is general manager sales and marketing for Motor Import, the BMW importers. "Currently, Joe Duffy Motors is awaiting planning permission for the Finglas site. We are glad all our other dealers have already modernised, given the volume of business that they now have to accommodate."

Dave Shannon, managing director of Toyota Ireland, thinks that Toyota dealers have spent £15 million to £20 million over the last five years in upgrading and redeveloping 60 per cent of the dealer network: "Over the next three to four years another £10 million at least will be spent on the remaining 40 per cent."

Toyota has 48 dealers operating through 56 outlets and he lists major dealerships like Donnelly Fitzgerald who are relocating from Dun Laoghaire to Glenageary in south Co Dublin; Kearys in Midleton, Co Cork, and Hogans in Ennis.

Volkswagen has 44 dealers and some also market Audi which is Volkswagen's upmarket division. Tom O'Connor, sales manager at Volkswagen, says where possible VW dealers who also sell Audi are expected to have separate showroom premises for the Audi marque.

About 60 per cent of dealers have modernised and he thinks that by 2002 the programme will be completed.

"Some of our major dealerships also sell Mazda and Mercedes-Benz, including all the four franchises handled by the O'Flaherty group. Park Motors relocating from the North Circular Road to Navan Road in Dublin is certainly a major event."

"It will be on an eight-acre site and the old premises on the North Circular road will continue just as the workshop area."

Park Motors is one of the four major Dublin dealerships owned by the O'Flaherty group: the others are Grange Motors in Deansgrange; Europa in Blackrock and Ballsbridge Motors on the Shelbourne road.

Tom O'Connor cites Belgard Motors in Tallaght as another major Dublin redevelopment. Again Belgard handles not just VW and Audi but Mazda and Mercedes-Benz: "It's so big that one building has parking on the roof for 165 cars."

Other major projects recently completed include Sheehys, in Carlow, and Frank Hogan in Limerick city.

Cyril McHugh, chief executive of the Society of the Irish Motor Industry thinks too many people have a negative attitude about the growth of the new car population: "Dealers all over the country are creating a huge amount of business for builders and architects and lawyers and all this activity wouldn't happen without the buoyancy in demand."