Articles by Tony Raggatt

The Townsville dealership of China's Great Wall Motors is to have a new showroom. The Motoco Group, operated by Jason Collins and Alan Baxter, has confirmed its purchase of the former BP service station site at the corner of Bowen Rd and Balls Lane, Mundingburra, for $1 million.The firm will spend about another $500,000 converting the property into a showroom and car yard for the dealership, which it has operated for about four years. It will also sell Foton light trucks. Motoco dealer Jason Collins said the Great Wall team, which had traded almost opposite on Bowen Rd alongside its used car business, had earned its new location.“They should have their own stand-alone facility,” Mr Collins said. “We are consistently in the top 10 in Australia with Great Wall.” There are about 80 Great Wall dealerships around the country and the number is growing. It is one of the largest manufacturers in China, where the auto industry has exploded in recent years to become the world's largest vehicle maker.Work to fit out the new Townsville showroom has just began. “It will be gutted and turned into a showroom with a new glass facade and a modern awning,” Mr Collins said. He said they were confident about the prospects for business in Townsville despite a difficult market recently.“Townsville has been very good to this business,” Mr Collins said. “Talking to the Gold Coast dealers, they are still doing it tough and there's a general feeling that we have it far better in this area.” Peter Wheeler of Colliers International Townsville, who negotiated the sale of the 2233sq m property, said the purchase opposite Motoco's Audi Townsville Centre was a logical extension of their business.But with interest rates at their lowest levels for some 50 years, it was also a well-timed move. “Now really is the time to be buying. It's a good time to be getting into the market,” Mr Wheeler said. The Motoco Group which also operates in Cairns was formerly Honeycombes Cars. It has dealerships in Audi, Alfa Romeo, Citroen, Fiat, Great Wall, Peugeot, Winnebago and Millard. It is also involved in Rising Sun Marine and Townsville Suzuki Marine dealerships.tony.raggatt@news.com.au 

About $8 million is being invested in new Toyota and Lexus showrooms at Townsville.Dealer principal Mike Carney said yesterday the move was being driven by a need to improve its customer service and experience as well as the fact that the businesses had outgrown its current facilities. “People ask me why you would pull down a perfectly good building but that's progress,” Mr Carney said. “If you don't (upgrade), you don't have an efficient business.”Toyota and its premium brand Lexus shared a building providing showrooms at the corner of Duckworth St and Stock Route Way at Garbutt. Work started recently to demolish the structure and build two new adjoining showrooms Lexus facing Stock Route Way and Toyota facing Duckworth St. Meanwhile, the businesses are continuing to operate from adjoining used car premises in the Carney group, also on Duckworth Street.Mr Carney said the new showrooms would include display areas, under-cover airconditioned vehicle delivery points, customer lounges, children's play area, new staff and administration areas and under-cover links to existing service and parts workshops. A mezzanine level in the showroom building would provide space for training and functions.Mr Carney said bringing sales, service and parts together was a big factor in the thinking behind the design of the new premises. Service for Lexus customers was also being improved. “We wanted customers to feel that once they bought a car, there were the support services available as part of the package,” he said.Mr Carney said car retailing in Australia was buoyant and competitive, despite the intervention of the global financial crisis. The sector was also affordable with prices for new cars much the same as they were 20 years ago. “You get a lot more features in a car than before so it's better value for money,” he said.The new showrooms are expected to open early next year. 

The Townsville dealership, led by managing director Adam Carmichael, has acquired about 9000sqm of land behind its premises on Dalrymple Rd, Garbutt, to improve its back-end services and provide more space for vehicles and spare parts. About $4 million is being invested in property and improvements, including the upgrade of existing warehousing for its spare parts division, the installation of an automatic car wash machine and washdown bays and more hardstand areas. The expansion will also free existing space for a new business sideline focusing on used cars under $10,000. Mr Carmichael said the property acquisition, apart from adding much-needed space for immediate needs, would set the business up for the next 20 years. “We have had growth issues,” Mr Carmichael said. “We have been investing a lot in the dealership over the past five years and if there is any city in the country where I would want to do that, it is Townsville. It has a great broad-based economy.” He said the latest investment was another piece of the puzzle for Key Motors. “It is going to bring us a huge amount of efficiencies across the business,” Mr Carmichael said. The additional property on Veness Court is the former depot of freight company Followmont Transport, which recently invested in its own new $12 million distribution hub on Ingham Rd at Bohle. Colliers agent Neville Smith, who recommended the site to Key Motors and negotiated the deal, said the acquisition was a logical choice for Key Motors. Mr Carmichael acquired Key Motors 10 years ago from his father, long-time Townsville car dealer and businessman David Carmichael. At the time, the business sold about 75 cars a month and employed about 30 people. That has grown three-fold to car sales of around 200 a month and 95 staff. Mr Carmichael said they began re-investing in the business about five years ago as the global financial crisis struck, redeveloping showrooms and acquiring surrounding parcels of land for a specialist Subaru servicing centre and more storage and washdown areas. Despite the gloomy global outlook, the investment helped build capacity and confidence in the business, “In some ways, this (investment) is probably the best thing I have done,” Mr Carmichael said.  

The dealership, part of the Motoco Group, scooped five gongs in Winnebago's national awards, including customer service dealer of the year, merit achievement, sales achievement and Tropical Bliss sales incentive program.Dealership manager Owen Wyer also won dealer employee of the year, with a prize including a seven-day sojourn on the Cook Islands where the awards were presented. Winnebago Industries sales and marketing manager Max Mayo said the Townsville dealership demonstrated all the professional qualities that Winnebago expected."They have overcome the disastrous consequences of Cyclone Yasi and continue to move forward strongly, especially in their desire to look after their customers after the sale," he said. The coveted customer service dealer of the year, an award based on surveys of customers, was a big endorsement for the dealership.Mr Wyer said the dealership also recorded the highest sales above target of any in Australia. Motoco Group managing director Jason Collins praised the team headed by Mr Wyer and sales manager Dave Berryman. "It is important for us to receive national recognition from such a well-regarded manufacturer."

The Townsville-based dealership has developed a new building and opened a Tyreright franchise at 154 Duckworth St near the group's existing used car dealership and Opposite Lock 4WD and vehicle accessory business.It comes complete with Tyreright's trademark bright orange paintwork. Principal Mike Carney said the group was an existing agent for tyre importer Tyres4u which devised the new Tyreright network being rolled out around Australia.He said Tyreright required a separate purpose-built premises and the dealership believed it was a worthy addition to group's businesses."We were prepared to put in the investment to build the new shop and I think it will complement everything we have now,'' he said.The dealership has attracted an expert in tyre retailing to head a team of five at the store, a former manager to the well known John Barr Tyres outlet and the late John Barr's son-in-law Damian Gray.Mr Gray said the new store, especially built to Tyreright specifications, included two fitting and wheel alignment bays with the potential to add more bays as demand required.He said the shop included Tyreright's concept showroom and lounge for clients including a kitchen, coffee machine, large screen television and amenities."It's a lot more user friendly than the old days,'' he said. The business includes on online presence where customers can book and pay for new tyres and take advantage of Tyreright's pledge to fit and balance the tyres within 30 minutes, which if they fail to meet entitles customers to a $30 discount.The store offers a pick up and drop off delivery service. Tyreright stocks leading brands including Bridgestone, Pirelli, GT Radial, Firestone, Eldorado, Event, Continental and Runway.