The Cox Automotive Australia merger has been officially finalised and will see the new company work with a majority of Australian new and used car dealers.
The merger covers CarsGuide, Dealer Solutions, Manheim and Sell My Car to form Cox Automotive Australia and includes the finalisation of all necessary regulatory approvals.
For John Bailey, Cox Automotive president of international, the merger will be a watershed moment for the Australian automotive industry.
“It is important to note that the new company is a true partnership with the automotive retail and wholesale sectors,” Bailey says.
Cox Automotive Australia is 70% owned by Cox Automotive and 30% owned by DealerMotive, which is a consortium of some 60 dealer groups representing approximately 600 dealerships around the country.
The dealers who have invested in Cox Automotive Australia comprise every new car franchise in the market and many geographic regions in the country.
The combined selling power represents around one-third of all new and used vehicle sales made in Australia, including their parts and servicing market share.
The group will operate as Cox Automotive Australia, with each brand retaining its own identity and focus.
Plans to incorporate Xtime, another Cox Automotive brand into the new structure are also under way.
Solutions Groups to underpin new merger
Cox Automotive Australia will be organised in ‘solution groups’ to best service the needs of its clients.
Under the Inventory Solutions group will be Manheim and Sell My Car. Those brands will provide services to dealers, fleet managers, fleet owners, businesses and consumers for any needs related to buying and selling vehicles, including logistics, sales and residual value setting.
The Media Solutions group will comprise CarsGuide and Autotrader which will be relaunched by Cox Automotive later in 2017. Those brands will assist dealers and private buyers to research, buy and sell vehicles online, in addition to providing digital advertising and marketing services to the automotive industry.
Dealer Solutions will represent the Retail Solutions group, with Xtime to join the group in the near future. It will offer dealers and manufacturers a range of modular software and online based services, to facilitate retail vehicle sales and after-sales customer retention and vehicle servicing.
Joe Luppino, senior vice president and chief operating officer of international for Cox Automotive, says the new company will help the industry deal with the major changes taking place across the sector.
“Cox Automotive Australia will exist to empower each of our clients to thrive in a rapidly changing automotive marketplace.”
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