Ian allen motor industry management and turnaround summary
- 1. IAN ALLEN Motor Industry Management and turnaround summary
- 2. Introduction ● Experience in all areas of the motor industry – Auction house / remarketing sector. – Specific volume used car / car supermarket track record. – Operational turnaround of underperforming dealerships. – Consultant to vehicle manufacturers, privately owned and Plc motor retail operators and major bank funders / stakeholders. – Fixed term turnaround secondments. Interim management – Training programme implementation
- 3. Senior Automotive Partner. CNA International. Current. ● Part of Pertemps Network Group. ● Largest privately owned outsourcing,and management consultancy in the UK. ● Responsible for advising motor manufacturers and retailers in relation to improved dealership performance and turnaround. ● Operational involvement. Training implementation. ● fixed term / interim / consultancy assignments ● Advisor to major banks and funders on turnaround / restructure of underperforming dealerships. ● Advisor to manufacturers and dealer groups in relation to used car strategy. ● Search and selection of dealership senior management executives.
- 4. Key Competencies / Strengths ● Strategic planning followed by implementation. ● Budgeting and Financial Management ● Manufacturer relationships / new and used car target achievement. ● Operational management track record in all areas of motor retail. On line enhancement. ● Supply chain management / used vehicle acquisition ● Customer satisfaction index ( CSI) ● Aftersales initiatives ● Volume used car sector experience / track record.
- 5. Specific used car sector experience ● Experience and track record in used car sector advising manufacturers re RV protection and increased dealership ROI. ● Experience in increasing profit per unit ( ppu) by improving vehicle margin and extra’s and finance penetration levels. ● Increased efficiencies in vehicle refurbishment costs. ● Experience in stock turn, model mix and overage control. ● Development of used car buying teams to ensure ongoing business performance. ● Sales process implementation. ● Opening of green field high volume outlets plus turnaround of under performing dealerships.
- 6. IAN ALLEN Current Automotive Assignments
- 7. Advisor to Global car manufacturer re used car strategy. Current ongoing assignment. ● Working with global manufacturer and its franchised dealer network to improve overall used car performance. ● Operational involvement in improving used car buying/stock acquisition / model mix, and stock turn. ● Improving online awareness and customer interaction. Broadening used car profile, increasing financial services penetration and after sales revenue. ● Streamlining car sales process. ● Increasing volume and margin in used car sales, resulting in greater RV protection and ROI.
- 8. Current Assignment. Advisor to global investment bank. ● Currently seconded to global investment bank who are entering into UK used car retail paper and wholesale funding sector. ● Arranging introductory meetings with franchised dealers / car supermarkets / independent motor retailers. ● Advising bank on PCP / HP finance strategy and risk management ● Identifying most appropriate age and stock profile of vehicle retail paper and wholesale funding risk. ● Defining strategy for business mix in terms of prime / near prime/ sub prime percentages ● Exec search responsibility to locate senior UK management with motor retail finance sector experience.
- 9. IAN ALLEN Previously completed green field and turnaround projects
- 10. Motorhouse 2000 Ltd ● 1998 – Founder member / director, car retailer Motorhouse 2000 Ltd. ( MH2K LTD) – Submitted detailed business plan proposals, secured £4million vehicle stocking facility supplied by HBOS. ● 1999 – Opened first branch of MH2K LTD, on purpose built car retail facility in Cannock, Staffs. Stock of circa 500 new and nearly new units, and headcount of circa 70 staff. Established premium brand sector within the business. – Key Responsibilities ● Full P&L responsibility ● Operational management including sales process and delivery of customer buying experience and CSI. ● Total responsibility for vehicle purchasing and vehicle supply chain management arrangements with major leasing, rental and auction companies.
- 11. Motorhouse 2000 Ltd (Cont’d) ● 2002 – MH2K was recognised as the fastest growing independent car retailer / car supermarket in the UK, by turnover. Source: Motortrader journal. ● 2003 – Annual turnover £90million, pbt £1.7million ● 2004 / 2005 – Opened 2nd purpose built 6 acre branch at J28 of M1 at Mansfield, Notts. – Secured further £10million vehicle stock funding facility with HBOS. – Group turnover increased to £140 million. – Annual retail paper turnover increased to £30 million. – Premium brand sector also replicated successfully at both sites. – Total combined annual vehicle sales 10,000 from 2 locations by end of 2005
- 12. Carland (General Motors) ● 2006 – Turnaround / Restructure / disposal – Appointed by General Motors to become head of their UK car retail operation Carland to effect turnaround and disposal. Carland was the largest car supermarket operation in the UK, with 6 branches and 500 staff. Wholly owned subsidiary of GM via GMAC. – Carland had been consistently losing between £5-£10 million per annum since acquisition by GM in 2002. Appointed to the role in March 2006, and carried out a strategic review of the business. – My review and suggestions for the business were submitted to GM in the UK, and then on to GM in USA. The plans were agreed and implemented by myself and the Carland management team.
- 13. Carland (General Motors) ● Key areas of improvement: – 10% Headcount reduction throughout the business. – Implementation of a revised, more customer friendly sales process to ensure customer focus and best practice. – Marketing costs reduced as a result of much increased customer loyalty – Online presence considerably enhanced through revised website image and content – Marked improvement in used vehicle supply chain to raise quality and profitability of cars offered for sale – Dealership stock management processes introduced – Stock profiling processes introduced to increase profitability within group and increased customer offering.
- 14. Carland (General Motors) ● 2006 Financial result – Initial forecast - £6m loss – After restructure - breakeven achieved ● 2007 – Cerberus takeover of GMAC – reported into Cerberus CEO Steven Feinberg. – Carland non core to Cerberus business model – Decision taken to dispose of business – Responsibility for successful disposal carried out
- 15. International Motors ● 2007 – Appointed as used car Consultant to IM Group – Reporting directly to Chairman Lord Bob Edmiston ● IM Group Businesses – Subaru UK, Daihatsu UK, Isuzu UK – sole importers to UK – Funding Corporation – Finance house – Approved Car Finance – 8 site volume used car retail operation ● Key responsibilities – Subaru UK and Isuzu UK ● Assist dealer network with operational used car performance ● Improve customer focus, experience and CSI ● Improve finance penetration and offering ● Implementation of used car remarketing strategy
- 16. International Motors – Approved Car Finance (ACF) ● Evaluate all areas of business to stem current losses of £4.5m p.a. ● Headcount reductions in all departments ● Improved customer offering and business profitability through control of vehicle supply chain. Took control of used car buying function. ● Vehicle preparation costs reduced by 45% and RAC accreditation for in house workshop facility ● Increased customer satisfaction through more controlled sales process and FSA accreditation ● Gross profit per unit increased by 61% from 2007 to 2009 – Overall financial impact ● 2007 loss £4.5m ● 2008 breakeven ● 2009 £750k profit ● Overall positive difference of £5.2m within 18 months and potential for increases thereafter
- 17. BDO / Barclays Re-structure project. 2010 / 2011 ● Restructure/ turnaround of franchised dealer group in Hampshire. ● 3 franchises plus used car centre. ● Restructure of used vehicle stocking facility ● Employment of F&I business manager to increase finance penetration and ppu. ● Improve vehicle purchasing / stock management. ● Improved franchisee/ manufacturer relationships. ● Banking facilities renewed.
- 18. Multi site dealer group turnaround. City Motor Holdings. ●2012 / 2013 ●Advisory and operational support to R Capital, funders of multi site / multi franchise dealer group.Liaison with 6 manufacturer partners. ●Supplied cost saving measurers and used car performance improvement initiatives. ●Assisted in the arrangement of additional used car funding facility.
- 19. Auction/Remarketing Experience. P 2014 / 2015 auction assignment. ● Prior to volume motor retail sector, my career was in the vehicle auction / remarketing sector. Former senior manager / auctioneer at BCA. ● 2014 / 15 Appointed as operational turnaround and BDM consultant to SMA Vehicle Remarketing, prior to sale to BCA Marketplace PLC. ● Responsibility for increased vendor vehicle supply and fee generation. ● Improved cost control/Operational efficiencies ● SMA ultimately acquired by BCA Market Place PLC in July 2015
- 20. Additional projects / industry affiliations. IFT. ● H.R Owen PLC Establishment of specialist used car premium brand division, focusing on business planning, prestige vehicle supply chain and sales. ● Auto Retail Manager / Auto Retail Network – Leading motor industry publications for which I write monthly articles on best practice within the used car sector. – Ongoing consultancy – Evaluating performance of underperforming motor retail businesses to provide operational advice and input to key funders and stakeholders. – Institute For Turnaround ( IFT). Currently going through accreditation process for full IFT membership. Case studies currently being reviewed by IFT board.