BURGEONING Japanese vehicle retailer Gulliver International, which recently took a majority interest in the WA-based retail chain DVG Group, is preparing to expand into Australia’s east coast and plans acquisitions in the United States.

The retailer – which now has 444 new and used outlets in Japan and Australia plus representation in New Zealand, Thailand and the US – will also soon plug in its innovative online vehicle valuation and sales tool to the DVG outlets.

The managing director of DVG, Lou Divirgilio, said that, so far, Gulliver has been a benign investor after buying 67 per cent of Buick Pty Ltd, the parent company of the 24-dealership DVG Group.

“It’s a good fit for us,” he said. “But there are plans to expand into the eastern states and they have asked us to run that for them.”

Mr Divirgilio said the timing was imminent and that “we’re now looking at opportunities in Australia”.

“In the US, Gulliver has a small presence but it is now looking at locations on the west and east coast with a view to premium new-car brands,” he said.

Meanwhile, Mr Divirgilio scotched suggestions that the move to invest in Buick was triggered by suggestions that the federal government would approve parallel (new cars) and grey (used cars) imports into Australia.

“I think those are dead in the water. Gulliver is looking for opportunities and has bought existing businesses such as ours. There is nothing to suggest that Gulliver’s expansion into Australia has been done to import cars from Japan,” he said.

Buick is owned by the seven Divirgilio brothers who are each principals of DVG dealerships.

When Gulliver bought 67 per cent of Buick in July this year, the remainder stayed with the brothers. Under an agreement with Gulliver, the family continues to operate current businesses and has agreed to grow the company.

Under the DVG label and before the Gulliver buyout, Buick bought the Burswood Honda dealership from WA car franchise identity Bob Peters.

It is soon to open an Isuzu outlet in the busy Victoria Park car-yard strip, its fourth Isuzu franchise. That will take the DVG Group dealerships to 25, most servicing more than one franchise.

Its new-car franchises include Holden, Volkswagen, Hyundai, Kia, Chrysler, Jeep, Peugeot, Suzuki, Honda, Isuzu and Alfa Romeo.

Gulliver’s 420 company-owned and franchised outlets in Japan sell 200,000 vehicles a year and never hold stock for more than two weeks.

Its online Dolphinet system – which is responsible for the quick turnover of cars – is expected to be operating within two months in DVG outlets in WA, said Mr Divirgilio. The system, which moves 3000 vehicles a month in Japan, completes all sales on-screen using a program that details and shows images of the cars for sale.

Gulliver says on its website that its Dolphinet program allows customers to see individual vehicles, the faults, the service history and the assessment placed on a particular vehicle by Gulliver staff. It can reduce sales staff numbers although total staffing levels are unlikely to alter as it requires a call centre. In Japan, Gulliver has 100 call centre staff.

By Neil Dowling