300 new jobs on way as Benfield steps up a gear

Feb 27 2008 by Andrew Mernin, The Journal

CAR dealer Benfield Motors has revealed plans to create up to 300 jobs across the North this year despite ongoing tough market conditions in the motor trade.

The Newcastle firm said it expects to open up to six new dealerships across the North East and Yorkshire this year and is also in talks to boost its range of models.

Managing director Nigel McMinn said: “We are expecting strong growth this year and although our figures haven’t been published yet, we are expecting good growth in sales volumes and turnover margins as we haven’t felt the credit crunch as much as some companies have.”

With each new dealership expected to employ around 50 people the news will provide a welcome lift to the region’s motor industry which has been hit by heavy job cuts in recent weeks.

Meanwhile, a report published yesterday by information service Experian said the North East has been the hardest hit by the national slowdown in used car sales.

The study said overall used car sales fell by 3% in the third quarter of 2007 compared to the previous year, while in the North sales fell by 13%.

Kirk Fletcher, managing director of Experian’s automotive division, blamed the squeeze on customer’s finances for the drop.

“By the time the third quarter had begun, the base rate had already risen five times to 5.75% – its highest level since spring 2001 – so consumers were feeling the squeeze on their finances.

“Sales of ‘big ticket’ items, such as cars, were the most likely to suffer, and they did.” But according to Mr McMinn, Benfield has bucked this trend with a 10% rise in used car sales over the last year. He also said the firm is gearing up for a bumper sales month in March, due to the change in registration plates.

Benfield has 25 dealerships throughout the North which employs 1,200 people with an annual turnover of around £310m.

Page two: read the full Experian report on used car sales.