PSA Group vice-president and head of the India and Pacific region Emmanuel Delay

SUBARU’S Australian distributor has sealed the rights to represent Peugeot and Citroen in Australia as Sime Darby pulls out of vehicle wholesaling to concentrate on its retail businesses.

The change gives Subaru Australia parent company, Inchcape plc, control of an additional 4300 vehicle sales a year and 42 national dealerships.

The structure of the changeover will not be known until June 1, but insiders say Subaru’s Baulkham Hills property in Sydney’s north-west will become the headquarters and Inchcape’s subsidiary Autonexus – which is a prominent vehicle logistics, parts warehousing, distribution and fleet services business – will be extended to include the two French brands.

Peter Warren Automotive executive chairman, Paul Warren, told GoAutoNews Premium that he sees the change in distributorship as a good thing for Peugeot.

“Inchcape has a strong reputation as a distributor and a retailer and I think this is what Peugeot needs. I can only see positive things come out of this,” he said.

Mr Warren said he had yet to have contact with Inchcape about its plans. Peter Warren Automotive has 23 brands including Peugeot with two NSW showrooms in Artarmon and Warwick Farm.

Inchcape plc CEO Stefan Bomhard

Most Australian Peugeot and Citroen dealers contacted by GoAutoNews Premium either declined to answer or replied that they had no comment to make on the change that will undoubtedly affect their business model.

Staff at Sime Darby Motors Group (SDMG) were “considering their options” said one person. The company has strong ties with Subaru Australia with at least two senior SDMG staffers coming from the Inchcape operation.

The change of distributor for these two French brands has been coming for some time. GoAutoNews Premium was aware late last year that SDMG was planning to dispose of its distribution rights. It formed the basis of a news article that looked at the operations of the company and possible suitors.

The story was prepared for publication in mid-December 2016 but was pulled when SDMG vehemently and repeatedly denied any plans to change distribution status.

Such strenuous and emphatic denials that have to be completely reversed in the space of a few months do not represent intelligent public relations.

Former Peugeot and Citroen general manager for Australia and New Zealand, Kai Bruesewitz – in answer to questions from GoAutoNews Premium at that time on SDMG’s pending exit – said “it was just speculation”.

Mr Bruesewitz left SDMG earlier this month to join Deloitte Australia as a director of motor services. His predecessor, John Startari, is also a director at Deloitte.

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Though SDMG, owned by Malaysian conglomerate Sime Darby Berhad, has pulled out of importing and distributing vehicles, it will remain in automotive retail.

It owns Porsche Centre Parramatta in NSW; BMW Brisbane, Brisbane Mini Garage and Westside BMW in Queensland; and national mining-sector vehicle and maintenance company Corefleet.

Peugeot has 42 national dealers and Citroen has 32 in Australia. SDMG took over the Citroen distributorship in February 2013 from Ateco Automotive and has been the Peugeot importer since October 2001.

Inchcape Australia is part of the listed public company Inchcape plc that is based in London and operates in 26 countries, with its Australian and New Zealand business interests the most profitable.

The automotive and services company has its main vehicle brands as Audi, BMW, Jaguar, Land Rover, Lexus, Mercedes-Benz, Porsche, Subaru, Toyota, and Volkswagen.

Citroen C3 and Peugeot 3008 GT

It has diversified geographical interests to mitigate any economic downturns in individual regions. Inchcape’s core markets include Australia, Belgium, Greece, Hong Kong, Singapore, Russia, the UK, China and South America.

This week, after the news of that it would take over the Peugeot-Citroen distributorship in Australia, Inchcape shares jumped to a 10-year high of 857 pence ($A14.95) from 849.5 pence ($A14.82) previously.

In Australia it employs more than 1500 people in the Subaru Australia and Subaru New Zealand distribution businesses; Trivett retail, which has 14 brands; and the Autonexus parts and vehicle logistics business.

However, it will not have the New Zealand distributorship of Peugeot and Citroen. That has gone to the Rick Armstrong Motor Group.

Inchcape Australia boss Nick Senior said he would not discuss anything about the distributorship until June 1 – including the price paid for taking on the importation and the reasons why the New Zealand importer was not Inchcape.

Peugeot 308

The PSA Group in Europe tends to utilise a model of factory involvement in retails outlets to a much greater degree than other manufacturers. It remains to be seen whether or how far such a strategy may be rolled out in Australia and what the implications for existing dealer arrangements would be.  

In the UK, PSA’s retail operation, Peugeot Citroen Retail UK Limited, has 45 dealerships including Robins & Day. The business has an annual turnover of more than £840 million ($A1.46 billion) and new-vehicle sales of 39,000 and used sales of 32,000.

Inchcape Australia currently has its own retail group, owning five Subaru retail outlets in Sydney and all of Melbourne’s six metropolitan dealers plus two pop-up stores. It also has Subaru service outlets and mobile service vehicles in both cities.

The company also has retail dealerships for 13 other brands including Rolls-Royce, McLaren, BMW, Jaguar, Aston Martin and Bentley, Mitsubishi, Kia and Volkswagen.

It represents 13 brands in Sydney at 13 locations wearing the Trivett and Denlo names; three brands in Brisbane with five outlets under the Keystar name; and in Melbourne with Subaru’s six dealerships.

Inchcape last year sold the Trivett prestige car dealerships to Zagame Automotive Group.

By Neil Dowling