Expansion into Eastern Europe
Inchcape PLC
13 December 2004
13 December 2004
Inchcape update on expansion into Eastern Europe
Inchcape plc (Inchcape), the international automotive services group, is
delighted to announce a number of acquisitions, as its expansion into Eastern
Europe gathers pace.
This region, stretching from the Balkans to the Baltics, represents an exciting
opportunity for Inchcape as vehicle sales in the new European member states, in
particular, are forecast to grow strongly over the next five years.
Inchcape's current representation in Eastern Europe includes distribution for
Toyota in Romania, Bulgaria and FYROM (Former Yugoslav Republic of Macedonia)
and exclusive retail for Toyota in Bucharest, Sofia and Skopje. We also import
and distribute for Mazda, Jaguar and Land Rover in the Baltic States. These
businesses, in total, sold over 6,600 units in 2003 and had a turnover of c.
£75.0m. In 2004 these markets are growing, on average, by over 30.0% per annum.
In Estonia, in order to develop the well proven vertically integrated
distribution and retail business model, Inchcape has acquired the country's two
independent Mazda retailers. The total investment in these dealerships was
£5.3m. As a result we are now the exclusive importer and retailer for Mazda in
this 'city state' market. Mazda sold over 1,500 units in Estonia in 2003 and had
a market share of 9.3%.
In Poland we have just opened two BMW/MINI dealerships. The first is situated in
the capital city of Warsaw and the second is in Wroclaw, in the west of the
country. These dealerships required a total initial investment of c. £3.0m
including working capital. By the end of 2005 these businesses should achieve
sales of some 700 new and used cars. We are well positioned to expand on this
initial investment and are confident of developing our partnership with BMW
further in order to develop a significant business in Poland, which will benefit
from the economies of scale that will be created.
Peter Johnson, Group Chief Executive of Inchcape plc, commented:
'Our recent success in the Balkans demonstrates our ability to build scale
businesses in emerging markets.
'We are greatly encouraged by the recent development in Estonia where we now
have a fully integrated business, and we are delighted with our new venture in
Poland.
'We will continue to expand in these markets.'
- Ends -
Notes to editors
For further information, please contact:
Group Communications, Inchcape plc
020 7546 0022
Hogarth Partnership Limited (John Olsen/Barnaby Fry)
020 7357 9477
Inchcape, an international automotive services group, provides quality
representation for its manufacturer partners, a choice of channels to market and
products for its retail customers and a range of business services for its
corporate customers. Operations are focused on the UK, Greece, Belgium,
Australia, Hong Kong and Singapore. Inchcape's activities include exclusive
Import, Distribution and Retail, Business Services, automotive E-commerce and
Financial Services. Our key manufacturer partners are Toyota/Lexus, Subaru, BMW,
the Premier Automotive Group of Ford, Mazda, Mercedes-Benz and Volkswagen.
For further information, visit us at www.inchcape.com
This information is provided by RNS
The company news service from the London Stock Exchange
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