Eye on openings in Auckland

The Armstrong Motor Group hasn’t ruled out further expansion in Auckland after it takes over Giltrap City Toyota next month. The sites in Grey Lynn and Mount Wellington will be leased out to the iconic dealership’s new owner, which will have the opportunity to purchase them further down the line, while the name will change to Auckland City Toyota. “Having a nationwide presence has always been one of my goals,” says managing director Rick Armstrong, who has moved up from Wellington. He will take on the chief executive officer’s role until the right person for the job is found, after which he will return to managing the group. Armstrong told Autofile that Richard Giltrap called to offer him Giltrap City Toyota, which will be his first operation in the City of Sails. “I’ve bought businesses from the Giltraps before,” he says. “They’re extremely good to deal with and we have a good working relationship.” Those companies include a joint venture with Mercedes-Benz and taking over Team European in Wellington, which was rebranded Armstrong Prestige. The opportunity to buy the “number-one brand” in the country’s biggest market made the acquisition a no-brainer. “Opportunities like this don’t come up often,” says Armstrong. “It’s always easy to take over an existing business – and essentially turn a key on it and add our own flavour.” It’s the group’s first Toyota franchise and Armstrong is ready for the challenge. “It’s a volume game and I need to get my head around that, but at the end of the day your commodity is still a car and basic principles apply. “In many ways, it couldn’t be simpler because it’s a non-multifranchise environment. “We will make some subtlechanges but it’s largely a business that’s well-run and in pretty good order from what I can see.” The group’s nationwide expansion has been a slow slog, says Armstrong. “We work on basic principles and grow in an orderly fashion with a strategic plan to build a sustainable business,” he explains. “We’re focused on the service side and try to gain a good reputation to retain customers.” And Armstrong isn’t ruling out further acquisitions or opening new dealerships in Auckland. “Never say never because it’s hard to turn down a good offer. Initially I’ve got to get this one up and running and demonstrate it’s sustainable. There’s no sense in running too fast.” Armstrong has met with Toyota NZ, which has backed the acquisition. “I’m impressed with its professionalism and the support Toyota is giving us.” The Giltrap Group will retain the Lexus part of the business, which is run as a separate dealership. Joint managing director Richard Giltrap describes as difficult the decision to sell to Armstrong. He adds: “It’s a significant dealership, but for various reasons we’ve taken it to a level where it needs an owner-operator to take it further.”