Three of the bigger names in the Australian automotive industry services space are set to merge under one umbrella operation.
International firm Cox Automotive has announced that it has formed Cox Automotive Australia, which will include its fully-owned Manheim business, Dealer Solutions, which it took a stake in earlier this year, and CarsGuide.
News Corp Australia confirmed this morning that it is selling its 50% stake in the vehicle listing business to Cox. The rest is owned by members of the automotive trade.
Cox and CarsGuide have signed agreements with a view to completing the transaction by the end of 2016, after working through the necessary regulatory and legal requirements.
Campbell Jones, chief executive of Manheim Australia and New Zealand says the acquisition of Dealer Solutions signalled the intended plan.
“The acquisition of Dealer Solutions earlier this year certainly signalled our intent to replicate the breadth of products, services and solutions they already provide on a global scale, within Australia and New Zealand,” Jones says.
“Today is a watershed moment for the automotive industry, as we announce our plans to strategically combine CarsGuide with Dealer Solutions and Manheim,” he explains.
“This will more closely align our capabilities in Australia with Cox Automotive’s comprehensive range of products and services available to the wholesale and retail sectors of the automotive market.”
Each brand retaining its own identity and focus
Sandy Schwartz, president of Cox Automotive, called the new venture exciting.
“This exciting news is yet another sign of Cox Automotive’s commitment to the local markets in Australia and New Zealand. As part of Cox Enterprises – a global firm with 55,000 employees and revenues of more than $18 billion (USD) – we can actively support local clients with the resources of one of the world’s leading automotive services company.
“Cox Automotive has identified Australia and New Zealand as growth markets and the confidence in our people, our performance and our brands has enabled this significant investment in the future growth of our group of companies.
“We can simplify the trusted exchange of vehicles, and maximise value for the entire automotive industry, especially vehicle sellers, buyers, dealers, manufacturers and fleet, leasing, finance, insurance and rental companies,” Schwartz explains. “We can continue to evolve the client experience with a wide variety of solutions to meet the exploding shift in mobile usage, online buying, consumer access and customer expectations.”
Lauren Williams, chief executive of CarsGuide, says the structure will enable the wholesale and retail sides of the trade to work closer together.
“As part of Cox Automotive Australia, we expect to be able to further facilitate the links between the wholesale and retail markets so our customers can take full advantage of the synergies offered by the new brand suite. The move will especially allow us to offer our dealer customers an even greater range of channels in which to sell and buy their vehicles.
“The addition of the CarsGuide brand will fit perfectly within Cox Automotive Australia’s evolving family of brands, particularly as the digital marketplace becomes ever more influential.,” Williams says.
“Major changes within the automotive landscape are creating vast new opportunities and formidable barriers to success that until a few years ago didn’t even exist. Cox Automotive Australia will exist to empower each of our customers to thrive in a rapidly changing automotive marketplace.”
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