Peter Warren Automotive suddenly closes Volvo Cars Gold Coast after 23 years in business
A Gold Coast car dealership has been suddenly shut down after more than 20 years in business, forcing customers to drive to Logan for servicing.
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A Gold Coast car dealership has been suddenly shut down after more than 20 years in business, forcing customers to drive to Logan for servicing.
Volvo Cars Gold Coast customers were sent an email on Monday saying the “difficult” decision, by ASX-listed parent company Peter Warren Automotive, was made “amid a dynamic automotive landscape in Australia”.
“It has been a pleasure to serve our community and provide our customers with dedicated care and service,” the email said.
The dealership has been operating in Southport since 2002 and is described on its Facebook page as “one of the most successful Volvo dealers in South East Queensland”.
The Nerang St premises, which is still home to the city’s Aston Martin and McLaren showrooms, had big stickers covering the Volvo signage on Wednesday morning.
Half a dozen Volvo cars were still parked in the lot.
A staff member said the last Volvo would be serviced on the Gold Coast at the end of the month, with customers’ closest option at Springwood.
The email, from dealer principal Robert Bradbury, said the team was grateful for customers’ “loyalty and support over the years”.
“It has been a privilege to be a part of your automotive journey, and we are incredibly proud of the relationships we have built within our community,” he wrote.
The Bulletin understands some Volvo staff have been retained with the McLaren and Aston Martin brands.
Volvo Cars Australia’s Greg Bosnich said the carmaker was “in talks with potential partners regarding Volvo Cars representation on the Gold Coast”.
“For sales, servicing and parts Volvo Cars has a national retailer network that can offer assistance in the meantime,” he said.
The Gold Coast dealership was acquired by Peter Warren Automotive (PWR) in its merger with local powerhouse Frizelle Sunshine.
PWR CFO Victor Cuthell did not provide further reason for the dealership’s closure or say if any more closures were likely this year.
“In relation to Volvo owners and their needs for servicing, parts and warranty, we advise that arrangements are being made by us and Volvo Cars Australia to provide ongoing servicing and support to our customers,” he said.
In its half-year results, released last week, PWR reported net profit of $4.2m, more than 80 per cent lower than the $22.2m reported for the same period last year.
The company cited cost of living pressures hurting demand, along with reduced gross margins fuelled by higher competition from electric vehicle makers.
The group paid $7.1m for a Ferrari dealership in Brisbane in July last year, and has also acquired majority interests in companies that operate Mazda, MG, Nissan, LDV, Toyota and Volkswagen dealerships in NSW.
Volvo Cars globally has shifted away from the traditional dealership model and towards direct online sales to consumers. It recently revised its plans to become fully electric within the next five years.
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Originally published as Peter Warren Automotive suddenly closes Volvo Cars Gold Coast after 23 years in business
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