Bronte Howson

FORMER Automotive Holdings Group (AHG) Ltd managing director and CEO, Bronte Howson, is back in the retail car game after buying Western Australia’s sole Audi dealership, Audi Centre Perth.

The acquisition, made a month after his golden handcuffs were released by former employer AHG as part of his retirement conditions, was believed to be about $18 million.

Current Audi Centre Perth co-owners Peter James and David Collins are expected to remain minor shareholders along with Barbagallo Group chairman, Alf Barbagallo. Mr Howson’s share has not been revealed.

Mr Howson said his investment represented an exciting opportunity to join forces with a successful team to drive further growth for Audi in WA.

“Audi is an exciting brand with a host of exceptionally impressive new models on the way over the next few years,” he said.

“For me, it’s an exciting time to buy into Audi in WA. It will allow me to add my experience to the dealership team and will no doubt be useful as the brand commences another strong product onslaught with new vehicles like the Audi A8 and Q8.”

Audi Australia director of business development, Thierry Juilland, says the company was pleased to add an investor of Bronte Howson’s calibre to its dealer network.

“Peter James, David Collins and Alf Barbagallo have been a strong team for Audi in WA, and we’ve also enjoyed seeing the benefits of facility investments in the state for the past 14 years,” Mr Juilland said.

“Bronte’s investment now means that growth will continue with vigour at a time when the brand is developing a host of extraordinary new products for customers.”

It is the first time in 14 years that key ownership in the dealership has changed. It was previously majority owned by the Barbagallo Group before Peter James and David Collins – both experienced prestige car retailers – bought into the business in 1999.

They substantially expanded the premises in 2012 with a $17 million, 8000-square metre showroom and state-of-the-art service centre; the first in Australia to be based on Audi’s latest architectural style, with plans to sell 1800 Audis a year.

The showroom, built alongside the previous “hanger” style building that is now the dealership’s used-car centre, is built using Audi’s patented brushed aluminium, folded honeycomb cladding. The building contains a 20-car showroom, training rooms and a 15-hoist workshop.

Audi Centre Perth is Western Australia’s sole agent for the German brand and one of 40 in Australia. Sales of Audi from the Osborne Park dealership, which is located 8km north of Perth’s CBD, hit 1072 units in 2017.

The state has had a subdued three years in new-car sales but March data shows some signs of green shoots with Audi recording a drop of 5.5 per cent (to 104 units) compared with the same month in 2017; but less than the fall in WA of its key rivals BMW and Mercedes-Benz.

Mr Howson left AHG in August 2016 after 28 years with the company, 17 years as CEO. He had signed a non-compete agreement that expired on March 31, 2018.

By Neil Dowling