Despite a stormy economic climate, luxury cars are flying out of at least one dealership – Stratstone’s luxury division. A handful of car brands has led to the sharp recovery, including: Jaguar, Land Rover and BMW. These are the exceptional sellers that led the boost in profits for the first half of the year.
According to Trevor Finn, chief executive of the company, recovery has been swift and strong in Pendragon’s luxury Stratstone division, compared with slow and unassuming.
Revenues at Stratstone rose by 31 per cent, while profit surged 111 per cent to 17.1 million pounds, compared with the same time last year.
Trevor Finn discussed the recovery by saying: “The new car market has recovered as we predicted in 2009 with stronger recovery in the prestige sector and a more moderate recovery in the volume sector.” He believes the reason behind the quick recovery is “decision making”. Finn thinks the individual able to react the quickest, and make the best business decisions during those moments of changing economic condition, will be the most successful.
Overall, the Pendragon group of dealerships reported a 16 per cent rise in revenue to 1.83 billion pounds and 4.8 million pounds growth in profits to 13.3 million pounds. These numbers help explain why, 1 out of every 20 new cars in the UK come from a Pendragon dealership.
If the economy slides again, Finn believes the company’s used car and after-sale division will be there to maintain sales for the group. Being the most profitable division within the group, it rose 15.9 per cent in used car sales through June 30.
Analysts have warned that growth (like Pendragons) will be difficult during the second half of the year due largely to further economic uncertainty. Industry estimates are for a 13 per cent decrease of new car sales in July alone.