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Paul Williams has been attracting dealers to the SsangYong network with new product
Job title: CEO SsangYong UK
Background Paul Williams, who has led SsangYong through thick and thin in the UK since 2008, has high hopes for the new Tivoli and sales for the growing UK network
SsangYong has enjoyed more second chances than just about any other carmaker but as it prepares for next month’s debut of the Tivoli B-segment crossover, its most important new vehicle to date,
it is looking like a brand that has stepped up a gear as it aims for sustained growth in the UK.
The new confidence can be traced back to the Korean brand being acquired by India’s Mahindra & Mahindra industrial conglomerate in 2010 and UK distribution being taken over in 2011 by Bassadone Automotive, the Gibraltar-based distributor that operates across Europe.
The importance of the Tivoli cannot be over-stated. Unveiled at the Geneva Motor Show in March it is the first new model developed under Mahindra ownership and kick-starts a new product pipeline which will see a fresh model debuted every 12 months over the next few years.
The Tivoli is a desirable looking addition to the SsangYong range which will see dealers selling into one of the fastest growing new car market segments against the likes of the Nissan Juke, Vauxhall Mokka and Renault Captur. It’s also aggressively priced from just £12,950, will have a competitive PCP offering, a myriad of personalisation opportunities and the choice of 4WD and 2WD.
This car will not lack retail appeal. The timing is perfect as SsangYong has been growing sales in the UK from just 194 cars and only four commercials in 2011 to 1,542 cars and 197 commercials in 2014. Significantly its combined Q1 2015 sales of 711 units were more than it mustered over the full course of 2013. Much of this growth has been on the back of the attractively facelifted Korando SUV and the recently uprated Korando Sport double-cab pick-up, which now boasts a 1 tonne payload enabling businesses to claim back VAT.
No wonder CEO Paul Williams, who has led the brand in the UK through thick and thin since 2008, is confident SsangYong will double last year’s combined car and commercial volumes of 1,800 units to between 3,600-4,000 units by the end of December.
“Our Q1 growth puts us absolutely on track for the doubling of the volume we’re expecting this year,” he said.
While acknowledging the crucial role soon to be played by the Tivoli, dealers were told early in the year they also needed to focus on increasing Korando sales by 20% while also shifting more volumes of the both the top-end Rexton 4X4 and Turismo, not the prettiest MPV but serving a useful niche as a seven-seater with a lowly £17,995 price tag. With Q1 car sales up 45% the network is in a good place to add incremental business with the Tivoli.
“This is a car that will really put SsangYong on the map and change brand perceptions. The Tivoli stands close scrutiny by any criteria; especially style, interior finish and value for money. The verdict from those who have already seen and driven the car
is that we’re on to a winner.”
“This sector is growing and I’m sure we’ll get more than our fair share of it, especially with our specification and pricing. It will give us a lot of growth, volume and visibility.”
Although the conquest opportunities for dealers are tantalising Williams also believes the Tivoli will appeal to downsizing Korando owners and act as a halo car.
“The Tivoli will be a game changer for us as it will make people aware of SsangYong.
It will have a positive impact on Korando, because not everyone wants a B-sector vehicle, and it will make people more aware that we have a pick-up and MPV. The Tivoli will have a massive impact over and above the commercial benefit of having a B-sector crossover to sell.”
Williams believes the 4X4 heritage of the brand will also help boost sales.
“We have the benefit of still dealing with specialist 4X4 products, we’ll still be able to play to our strengths and will have a higher share of more engineering features which will allow us to compete on more equal terms.
“We’ll never have the marketing budget or network coverage that the big players have got but we have sweet spots within the market that we’re going to exploit.”
Central to SsangYong’s ambitious growth programme is having a bigger dealer network. The dealer headcount is currently 60 sites with 75 expected to be signed up by the end of the year.
“We recruit dealers based on fit and attitude as opposed to absolute location or their premises,” said Williams.
“About half our sites are run by independent used car dealers. We are not just their only franchise but a significant additional revenue stream. We’re not trying to take over their businesses but we would like to be a significant part of it and contribute and be a valued part of what they do, rather than something left in the corner.”
A priority for the business is to grow in Scotland by filling open points in Edinburgh, Dundee, Inverness and Aberdeen. Other locations include Leicester, Teeside, Manchester, Birmingham, Bristol and within the M25.
The full interview is published in the May issue of Motor Trader