Firm tackles recession by helping others cope

Jun 9 2009 by Chris Knox, The Journal

A MOTOR accessories company believes it can make up for a 50% drop in turnover by moving into new markets, including satellite fleet tracking.

Newcastle firm Sungold Autosounds said it had been badly affected by the slump in car sales, its sales dropping by 40% to 50% in the past 12 months.

The firm, which employs 13 people at its site on Scotswood Road, said it had also had to make cuts, including the loss of five staff over two years, to secure its future.

Government attempts to steer consumers into car showrooms through its scrappage scheme – in which car buyers are given a £2,000 discount on a new car if they scrap one at least 10 years old – have so far failed to make a dent in new vehicle registrations, which last month were 25% lower than a year ago.

Recent figures by the Society of Motor Manufacturers and Traders (SMMT) show 134,858 new vehicles registered in May, the 13th successive month sales dropped.

However, Sungold Autosounds believes its decision to move into fleet tracking equipment will help it recover in the coming months and it hopes it will be able to begin rebuilding its turnover as well as its workforce.

The Road Angel Live Track, which has been developed by Northamptonshire’s Road Angel Group, helps firms keep track of exactly where their vehicles are in relation to their destination.

The technology, which provides updates every 60 seconds, also records how fast vehicles are going as well as how long they have been left idle. Sungold Autosounds said it was getting calls from North East businesses involved in logistics as well as vehicle recovery among its customers looking to cut costs and streamline their businesses in the downturn.

Managing director Steven Coates said: “It has been very difficult over the last year as many of our customers, especially those in car sales, have continued to struggle. However, we believe that our involvement with fleet tracking technology will help rebalance our losses and provide a new dimension to the business.

“Those companies that hire a lot of drivers are looking to cut down on their costs and are using the technology to keep check on how their employees are performing, and using it to effectively manage their fleet. People that are waiting for improved trading conditions are now starting to realise that they will have to wait a few months yet for a new car.

“As a result, I believe many are now choosing to improve their existing models, which is good news for a business like ours.”