One of the top-performing MG auto shops is opting out of new vehicle sales, attributing the manufacturer’s rapid expansion as the main concern.
Summit Garage, a family-run establishment in Dudley, which commemorates 80 years in operation this year, notified its clientele this week of its decision to discontinue its status as an MG Motor UK new car sales franchise after thorough deliberation.
Expressing their reasoning, the dealership conveyed, “While our alliance with MG has been favorable, we are convinced that realigning our focus will more effectively cater to the requirements and expectations of our patrons.”
Summit Garage will now emphasize vending Approved Pre-Owned Vehicles and extending post-sale support services, encompassing official MG guarantee, upkeep, and repairs.
The entity stated that this strategic transition harmonized with its fundamental principles of honesty, dependability, and client gratification – showcased by the accolades received in MG Motors UK yearly ceremonies as an after-sales vendor of the year.
While exhibiting gratitude towards MG Motor UK for their collaboration and backing over the years, John Newey, the co-owner and sales manager, elaborated to AM further on the rationale behind this determination.
“At present, the automotive industry at large is confronting challenging circumstances due to the diminishing number of actual buyers. Even though MG’s growth has been substantial according to their own statements, the current year has witnessed escalating constraints with waning retail activities.”
He mentioned that since a significant portion of the retail trade was being fueled by Motability and corporate transactions, dwindling profits here had instigated an introspective evaluation of the feasibility of new vehicle retailing.
“Various factors have converged to bring us to this juncture, yet from our corporate perspective – we have a lineage that extends back three generations, originating with my grandparents who commenced operations back in 1945 – we felt that due to MG’s prodigious expansion, our maintenance facilities were under substantial strain to render timely service. Independency appeared to offer a superior avenue for us.”
Newey also discussed the financial burden associated with the inventory funding for new cars. “In recent months, it has become apparent that we were extended a surplus of financing through Santander, who manages the MG stock funding facility.”
“Last November, we received a large shipment of new MG inventory, but the commencement of this year saw a slightly subdued market. Nonetheless, we had to bear significant interest expenses on this credit line. It became unsustainable.”
“We deliberated on this aspect, in addition to the stress on our maintenance and service areas, and we believe autonomy will afford us the opportunity to deliver an enhanced service to our clientele.”
Regarding upcoming retail strategies, Newey disclosed that Summit intends to procure pre-owned vehicles from brands not previously in their inventory, such as Audi, Lexus, Mercedes, in addition to modern-day classics reminiscent of MG.
