Gold Coast Power 100: The city’s biggest motor vehicle retailers
ONE key factor has driven change in the Gold Coast motor vehicle retail sector during the past 12 months: consolidation. Find out who are the city’s biggest motor vehicle retailers.
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ONE key factor has driven change in the Gold Coast motor vehicle retail sector during the past 12 months: consolidation.
The biggest change in the past year was Sydney’s Peter Warren Automotive Group together with Quadrant Private Equity taking a majority stake in Gold Coast-based James Frizelle’s Automotive Group.
The takeover created a new entity called Frizelle Sunshine with annual revenue of $1.5 billion.
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It also thinned the ranks of Gold Coast-owned motor vehicle retailers at the same time.
The biggest players are: Grand Motors Group, established in the 1950s on the Gold Coast and led by dealer-principal Gregory Scott; Von Bibra Group, led by managing director Wade von Bibra, and Hinterland Group, which was established in 1983.
IBISWorld senior industry analyst James Thomson said new car sales may have grown across Australia, but greater price competition and falling per-unit revenue have constrained the pace of expansion.
Mr Thomson said large industry players have turned to acquisitions to make sure they retain or increase market share.
“This has been the major driver of consolidation across the industry,” he said.
However, while some large industry players have boosted their margins through consolidation, overall industry profitability has fallen over the past five years, he said.
Von Bibra Group is another Gold Coast vehicle retailer doing its bit to consolidate the sector.
It bought the Surfers City Holden dealership, formerly on the corner of Southport-Nerang Rd and Olsen Ave, Ashmore, in June and moved it to new premises on Expo Court in Southport.
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Mr von Bibra said the industry is a “capital intensive” business that demands significant investment in facilities.
He said some family-owned firms, such as Frizelle’s, look to an injection of capital to take the next step in terms of growth.
“The other side relates to family businesses looking to pass the baton on, whether they are second-generation family businesses or third or fourth.
“Sometimes that is not easy, having a succession plan, so they have opted to sell out to the large public players or look to go public themselves.”
He said the industry remains highly competitive.
“People can buy the same car 15km up or down the road. But we like it competitive, because that, from a business point of view, brings out all the good habits and makes sure we are operating as efficiently as we can.”
One part of the market still attracting significant investment is the luxury car sector.
Autosports Group Limited, which is listed on the ASX, has signed a 15-year lease for a new showroom on the corner of Ferry Rd and Brolga Ave, Southport.
The $25 million showroom, which will be used to sell Bentley and Maserati, was built by Gold Coast developer George Mastrocostas after purchasing the site for $2.8 million in 2014.
Glen Sealey, chief operating officer for Maserati Australia, said the growth of the car brand in Australia has required a greater presence.
“The Gold Coast is the largest market outside the major capital cities for Maserati,” he said.
“After carefully measuring the potential versus the return, it was deemed appropriate we should be there, not just for the business opportunity but for the existing customers and of course the new customers coming to the brand.”
GRAND MOTORS GROUP
Grand Motors was established on the Gold Coast in the 1950s and had revenue of $725 million in FY18, according to research from IBIS World.
That makes it one of the largest private companies in Australia.
According to company records, dealer principal Gregory Scott, a Bundall resident, is a director as well as Benowa local Timothy Unwin.
The company has multiple brands including Toyota and Mercedes Benz.
It also has interests in car dealerships in Queensland and NSW, including the Ryde Mazda, Subaru and Kia dealerships in Sydney.
VON BIBRA GROUP
The von Bibra name is well known to Gold Coasters. It was founded by Warren von Bibra, who began his working life pumping petrol in Tasmania at the age of 14 and went on to own and operate major car-sales businesses in the island state.
He bought the Gold Coast Nissan, Honda, and Daewoo dealerships from former car industry figure Warren McKie in mid-1998.
Today, von Bibra Group is the second-largest dealership network on the Gold Coast and headed up by Warren’s son and now managing director Wade von Bibra. Its dealerships sell new and used car brands including Nissan, Mitsubishi, Holden and Peugeot.
The company’s latest expansion came when it bought Surfers City Holden from listed AP Eagers and moved it to Southport auto village.
HINTERLAND GROUP
Hinterland Group’s Toyota dealerships in Nerang and Robina are doing their bit to drive sales for the Japanese carmaker. In addition, the company has expanded its suite of businesses to include caravans (Hinterland Caravans at Burleigh) and marine offerings (Surf Coast Marine in Labrador).
It also has Hinterland Money Solutions in Labrador and coating solutions company Oz Trade Supplies in Nerang.
Dropped off the list:
James Frizelle’s Automotive Group
Sydney’s Peter Warren Automotive Group with Quadrant Private Equity took a majority stake in Gold Coast-based James Frizelle’s Automotive Group last year. James Frizelle’s son Brett and his wife Rebecca have reinvested back into the business, however, it is no longer Gold Coast owned.
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