The move will allow AHG to have a national wholesale platform to feed easyauto123 and, in reverse, to give Carlins the ability to expand its business to AHG’s franchised locations in Melbourne, Sydney and Brisbane.
GoAutoNews Premium was told that the operation of Carlins will remain independent from easyauto123 although the two businesses will be co‐locating in Melbourne and Brisbane. The used-car warehouse concept is now at two locations in Perth and one in Sydney.
AHG managing director John McConnell said the joint venture would become the preferred wholesale platform for AHG Automotive.
“We will effectively centralise AHG’s internal wholesale operations,” he said.
“The transaction gives AHG access to a platform and management team that are well regarded in the industry,” he said.
“This is a significant strategic move for AHG that will allow us to access a strong remarketing platform with multiple pathways to expand the business.”
Carlins buys and sells about 7500 vehicles worth about $60 million each year through its network of wholesale buyers and contracted relationships with dealers and OEMs. It also handles about 5000 consignment vehicles each year.
Less than 10 per cent of those 12,500 vehicles are sold to retail customers.
“There is a natural fit between Carlins and AHG,” said Mr McConnell.
“They have some strong sourcing channels to access used vehicle stock and we have retail expertise and a broad range of sales channels.
“They buy used cars well and we sell used cars well. We should be able to realise cost and gross margin synergies.”
He said it also presents the opportunity to work with fleet management organisations, leasing companies, corporate fleet operators, government departments, banks, finance companies and others to offer a national fleet remarketing platform.
The transaction includes options for AHG to assume full ownership of the business.
By Neil Dowling
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