Power 100: Gregory Scott, of Grand Motors Group, and Wade von Bibra, of von Bibra Group, top list of most influential Gold Coasters in motor vehicle industry
The Gold Coast motor vehicle retail sector has gone through a wave of consolidation during the past 12 months. Find out the new power players.
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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. Bruce Lynton, of Bruce Lynton Automotive, also sold out, this time to Sydney rich lister and car tsar Nick Politis.
These changes have 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.
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Mr Thomson says 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 says.
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.
Mr von Bibra says the industry is a “capital intensive” business that demands significant investment in facilities.
He says 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 says 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, says 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 says.
“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.”
He says he can “see no reason” why the dealership shouldn’t become one of Maserati’s top-performing caryards in Australia.
“With Maserati sitting among other prestige brands like Porsche down the road and Bentley next door it creates a luxury precinct,” he says.
“Of course it adheres to the strict codes of every Maserati retail facility whether it be the tiles, lights, furniture, carpet or wood. It’s all carefully selected and put together by the team from Italy for implementation in Australia.”
Maserati is not the only game in town when it comes to luxury cars.
Fellow Italian brand Ferrari has come in on the act with a $10 million showroom
Ferrari Australasia chief executive Herbert Appleroth has previously said the launch of the Gold Coast dealership in partnership with Frizelle Sunshine Automotive had been sparked by the record number of sales on the Glitter Strip.
“The Ferrari Gold Coast showroom is integral to our growing dealer network in Australia and globally,” Mr Appleroth said.
He said Ferrari ownership on the Gold Coast was among the highest in the nation.
Not to be outdone, Grand Motors Group, which owns Mercedes Benz Gold Coast, has also been active. This year the dealership unveiled the new X-Class ute at the Home of the Arts in Bundall.
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