DVG Automotive Group has invested more than $1 million to upgrade and expand two Kia dealerships in Perth and has taken on a former AHG executive in a new chief operating officer role.

The company, majority owned by Japan’s IDOM Inc and Western Australia’s second biggest automotive retailer with 10 locations and 17 new-vehicle franchises, expanded its showrooms in the Perth suburbs of Morley and Midland in line with forecasts that identified these two areas as being growth markets for Kia.

DVG managing director Lou DiVirgilio said Kia was a top-10 brand in the Australian car market and the company “was incredibly excited to have been chosen to deal Kia vehicles in both locations”.

“We delivered on all of Kia’s key criteria – we’ve got financial backing; we’re a solid company; we’ve got a really good track record in the business and we have the available premises which is vitally important,” Mr DiVirgilio said.

“We’ve just completed an extensive upgrade to both showrooms, so we’re pleased to unveil two of the best looking Kia dealerships in the state.”

Kia Motors Australia chief operating officer Damien Meredith said company research had identified the suburbs of Midland and Morley as potential growth markets for the Korean car-maker.

“Kia is experiencing significant growth and Midland and Morley were open points for our brand,” he said.

“Both dealer locations were strategic for Kia and the investment made by DVG to upgrade both showrooms is fantastic. We look forward to positive ongoing relationships with DVG.”

The Midland site has a building area of 351 square metres and has a five-car showroom with an outside area capable of parking 15 vehicles. There is room for an additional 30 used cars on the site.

It also has a six-bay workshop with six hoists for servicing, reconditioning and pre-delivery purposes.

The Morley site has a building area of 343 square metres with a showroom for five vehicles and room outside area for 36 vehicles, plus room for an additional 52 used cars and a 13-bay, 13-hoist workshop.

DVG will this month take on former AHG executive and 30-year industry veteran Tony Salerno as COO. He is tasked with building DVG’s brand presence in WA and expanding its national footprint.

IDOM president Yusuke Hatori said his company was committed to the Australian market.

“We view Tony’s appointment as one step in a larger plan for IDOM and DVG to continue to grow its new-car presence across Australia,” he said in a statement.

Mr Hatori is expected to visit Perth this month.

IDOM bought 67 per cent of DVG Automotive Group in July 2015 when it was known as Gulliver International.

The listed Japanese company is one of Japan’s largest dealer groups with more than 300,000 annual vehicle sales from 500 locations.

By Neil Dowling