U-turn car dealer races beyond credit crunch

Apr 29 2008 by Graeme King, The Journal

ONE of the biggest car dealers in the North East, Springfield Motor Group, has posted an impressive 43% rise in profits, just months after owner Ron Price opted not to sell the business.

Springfield is also on the expansion trail with a new dealership planned for Silverlink in North Tyneside which will create 25 jobs.

The Washington company was on the verge of being sold late last year but founder Mr Price made a late decision to retain the business – and that is now paying dividends.

The company posted sales of £83.5m for 2007, a 4% rise from £80.2m in 2006, while the business enjoyed pre-tax profits of nearly £500,000.

Those figures were all the more impressive for being achieved at a time when big-ticket products were beginning to suffer from declining consumer confidence in the credit crunch.

Springfield is working on a five-year plan to take its sales up 50% to £120m and achieve profitability of at least 2%.

Now Mr Price and his team are investing in a flagship new outlet in partnership with Japanese manufacturer Honda, to take the place of a temporary dealership at Tynemouth.

The site, formerly a car park serving the Atmel microchip factory, is currently being developed and will open towards the end of this year. The 25 staff being hired for the new base will take Springfield’s staff number in the North East to 250.

The Silverlink operation is being developed in conjunction with Honda UK as an extension of Springfield’s relationship with the manufacturer.

Springfield was awarded sole dealer status by Honda in Durham and Tyne and Wear in 2003.

The company runs Honda dealerships in Newcastle, Gateshead, Sunderland and Durham, and also has Citroen, Fiat and Suzuki dealerships in Gateshead, as well as its headquarters and bodyshop in Washington.

A statement from the company said: “Despite increasingly challenging economic circumstances towards the end of 2007, Springfield figures remained impressive as the company turned over more than £80m during the year.

“This new investment, which will take the number of employees to 250, should further improve performance in line with a drive to increase turnover by 50% over the next five years and strengthen the links forged with Honda. Mr Price said: “This new site has been a long time in the planning, so I am delighted that it has finally got under way.

“When we decided to expand our Newcastle operations in 2004 we managed to secure a prestige site to the west of the city on Scotswood Road, but always said our Tynemouth outlet would be temporary. This new facility will replace that.”