WESTERN Australia’s depressed new-car market has clipped the financial wings of the powerful Japan-based majority shareholder of the DVG Automotive Group, as its Australian interests reported a $2.64 million loss for the May quarter.

IDOM Incorporated, the parent of international used and new-car wholesaler and retailer Gulliver International, posted sales of $811 million in the quarter ending May 31 this year – the latest financial figures available – and sold 65,000 vehicles.

In its financial statements to the Tokyo stock exchange, the listed company IDOM said depressed sales in Australia was a major factor in trimming the potential of its revenue.

IDOM reported sales of $811 million, up 7.5 per cent on the same period in 2016, and profits of $5.2 million, down 37.5 per cent.

The loss from the Australian interests were higher when the reporting included amortisation for goodwill, lifting the loss to $3.8 million from $2.64 million.

IDOM’s Gulliver in July 2015 paid $120.6 million for 67 per cent of DVG Automotive Group’s parent, Buick Holdings. Buick is owned equally – 14.3 per cent each – by the seven Divirgilio brothers, headed by managing director Lou Divirgilio who remains in charge of DVG’s operations.

DVG has 10 locations in Western Australia and 16 franchises. Annual revenue was $632 million in the 2015 financial year and net profit was $4.6 million.

The business started in 1996 when three of the Divirgilio brothers started with a small used-car yard in the Perth suburb of Maddington.

IDOM’s Gulliver is Japan’s second largest second-hand car dealer group and also has interests in new-car retailing.

In addition to its shareholding in DVG, it has dealerships in Thailand, the US, New Zealand and a branch office in Sydney.

By Neil Dowling