McCarthy to spend R225m on property projects

Posted On Thursday, 23 February 2006 02:00 Published by
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McCarthy Limited, the Automotive Division of the Bidvest Group is to spend 225.3 million rand on various property development projects during 2006
 
McCarthy Limited, the Automotive Division of the Bidvest Group (BVT) is to spend 225.3 million rand on various property development projects during 2006.
 
According to McCarthy CEO Brand Pretorius, these investments will put the group's dealer network in a position to capitalise on the current and anticipated future growth in the South African vehicle market.
 
"In addition, these new facilities will enable us to accommodate the rollout of a new vehicle franchise for the Group, and also meet the ever- increasing franchise standards required by vehicle manufacturers."
 
Pretorius emphasised that McCarthy is also committed to create substantially more capacity in their dealerships' service centres across the country.
 
"We believe that these facility developments will enable us to further enhance our service offerings to our customers," said Pretorius.
 
A total of 14 new dealerships will be completed before the end of the year benefiting McCarthy's Audi, Alfa, DaimlerChrysler, Fiat, Lexus, Nissan Diesel, Toyota and Volkswagen franchises. Two Renault outlets, a new franchise for the group, are also under construction.
 
The McCarthy dealer network currently comprises 100 outlets which are located in all the major metro areas, and currently sells and services a total of 21 different vehicle brands.
 
"Our target is to sell 85,000 new and used vehicles this year, while our service centres are expected to service more than 700,000 vehicles nationwide," said Pretorius.
 
Apart from the numerous developments in its dealer network, Pretorius foresees that McCarthy's Budget Rent a Car, Yamaha, McCarthy Insurance Services and McCarthy Fleet Services business platforms will be broadened even further.  McCarthy's also intends establishing a fully fledged vehicle import and distribution division during 2006.
 
According to Pretorius, the medium to long-term view of new vehicle market in SA is very promising, as a number of infrastructure development projects get underway in preparation of the Soccer World Cup.
 
Meaningful macro economic growth is projected, and it is also expected that enhanced vehicle affordability will unlock further market growth.
 
"McCarthy Limited has confidence in the future of the South African vehicle industry, and we expect meaningful growth through to 2010. The upgrading and expansion of our dealer network will put us in an excellent position to capitalise on future opportunities," said Pretorius.
 
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge

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