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Seat is on the up. The Volkswagen Group brand has ambitious growth plans with the arrival of the new Leon beginning a major range revitalisation programme which will see the brand debut its first SUV next year. Sales volumes are already on the rise, up 18% in 2014.
The brand is also rolling out a new corporate identity across the Seat dealer network and filling prime open points. One of the newest recruits is Blackpool Seat, which is owned by Cox Motor Group. Cox, rated 148 in the MT Top 200, is one of the largest groups in the north west with five Honda sites, a Volkswagen outlet in Lancaster and a Seat showroom in Kendal.
Seat Blackpool opened in March on a large site that also houses the group’s Honda centre and Automart, a used-car supermarket.
Andrew Donovan, who previously managed another large used-car operation, joined the company to become the new Seat site’s sales manager.
What was the appeal of opening a new Seat outlet?
Well obviously Seat is part of the highly-regarded Volkswagen Group and the brand has a strong product range, the Leon and Ibiza especially. This makes the franchise a very attractive proposition, while they also have very strong marketing campaigns and bonus structures. It’s a combination of those factors. When we convert people into Seats from other cars they are very impressed.
How did you go about building a customer base from scratch?
The Cox Motor Group has a strong brand presence in the area already. We’re known for being a family business and treating our customers well. The group has been here for a number of years and all its dealerships are located within a relatively short distance along this coast, between Southport and Kendal.
There’s a strong marketing element to the group based on great value for money, a huge product range to choose from and great packages to help customers choose the best deal.
We are using all the marketing methods available to us. We already have a large database of our non-franchised customers, and a strong Facebook following both of our own and the Automart one which is 8,000-plus. We’ve also done mailshots, radio and press in order to get the name of Seat and Cox together in customers’ minds.
We’ve had our Seat outlet in Kendal for a number of years and it has been very successful. We accept
it will take a while to become known here, but we are already seeing strong early interest.
The last NFDA survey found Seat dealers were unhappy. What’s your reaction to that?
It surprises me to hear that. The only opinions we’ve had regarding Seat, both from the short time we’ve been with them and through our Kendal dealership, have been overwhelmingly positive. With the research and development that goes on in the VW Group you know each new model coming through will be both innovative and of high quality. Seat will spend lots of money marketing it, and the people drawn in to the franchise will be impressed, which makes our life much easier. When you combine that with the offers available and the Cox Motor Group’s reputation of looking after our customers, it should be a recipe for success.
What impact will the new SUV have on your business?
The SUV market will be a vital component and Seat wants to be a part of it, using the experience of the other VW brands. It looks fantastic. Seat’s market share is growing. The Ibiza and Leon are the two really popular models and the arrival of an SUV will really give the range a new focus.
How would you assess the current state of the used car sector?
It is really good and very strong. We put a lot of effort into getting good stock, because we know the kind of used stock we need and we focus on it.
We are also generating a huge amount of used stock through part-exchanges. It’s working very well, because customers buying new Leons from us are trading-in cars like Audi A4s and VW Sciroccos. They realise the value for money they get with a Leon, which in turn gives us some fantastic used car stock. We are absolutely with Seat at the right time.
How important are service plans to your business?
Service plans are very important to the future growth of the business, and the free three-year servicing that Seat offers on new cars actually helps us promote our plans, because it brings servicing to the fore at the point of sale.
Customers can be quite shocked at the typical cost of servicing. Purchasing a plan up front saves the customer money and helps us. We also have a very strong view on service loan cars. Some businesses put their service customers in a cheap and cheerful loan car, but for us a Leon customer for example would be loaned a current Leon as a courtesy car, as would a customer possibly aspiring to a Leon. It’s a marketing opportunity.
How are you dealing with the FCA requirements for marketing finance, notably online?
Our group marketing department and legal departments make sure the offers we give are clear and transparent and meet the guidelines that the FCA set down. We have to work within the legal framework. The rules aren’t that onerous and create no problems in our discussions with customers.
Have the changes in finance regulation caused you to review the products you offer?
Our legal and marketing department set the standards we work to – it’s pretty transparent and we simply make sure we stay within the guidelines.
How do you see the new car market performing over the coming months?
The market is getting stronger and Seat’s aggressive plans are very exciting. With a good product line-up and great consumer offers you are going to outrun the market, that’s one of the reasons I’m happy to be a Seat dealer. If the rest of the market grows as well then we’ll ride with it.
FACTFILE
Blackpool Seat
Established: March 2015
Brand: Seat
Location: Blackpool
Ramps: 2 + MOT
Staff: 8 (admin shared with Blackpool Honda)
Andrew Charman
