Expansion of our Australian Distribution Platform
Partnering with Groupe PSA
Inchcape plc ("Inchcape" or the "Group")1, the leading independent multi-brand Automotive Distributor and Retailer with global scale, is pleased to announce a Distribution contract win with Groupe PSA (PSA) in Australia. This new Distribution contract will complement our current operations and is consistent with our Ignite strategic objective of investing to accelerate growth.
Inchcape will distribute PSA's internationally respected brands Peugeot and Citroën. The retail network for PSA in Australia incorporates 57 sites, none of which are directly owned. Australian PSA vehicle volume in the past three years has been approximately five thousand units per annum, close to 10% of the volume of our existing Australian Distribution business.
The contract was signed on 16th May and will be effective from June 2017.
Highlights:
· New distribution opportunity for renowned partner with internationally respected brands
· Leverages our Australian scale across vehicles and parts, creating an even stronger platform for growth
· Opportunity to strengthen and differentiate PSA in Australia through the application of Group expertise in customer service, marketing, logistics and retail network management
· Good long-term New Vehicle market outlook in Australia
Inchcape has operated in Australia for 25 years as an Automotive Distributor and Retailer. We have a long-standing track record of market share success as a Distributor with our partner Subaru. In a Retail-only capacity, we are focused in major Australian cities for a number of leading luxury brands, including BMW, Jaguar and Land Rover. Our Australian operations also include our high quality automotive logistics business Autonexus.
PSA has seen success in recent years across their core markets, with a strategy focused on product quality and a customer centric approach. The product line-up has evolved to include more cross-over and SUV models, taking advantage of the global trend towards these segments evident in Australia.
The PSA Australia business is expected to be broadly profit neutral in 2017 and to make a positive contribution thereafter.
Stefan Bomhard, Group CEO of Inchcape plc, commented:
"Inchcape is perfectly placed to leverage our increased scale in Australia with this contract win for PSA. The addition of PSA to our Australian portfolio reflects our Ignite strategy in action, working closely with OEMs to target exciting growth opportunities and building further momentum following the deals completed by the Group in 2016.
This Distribution contract win adds meaningful volume to our Australian operations and I am excited about the potential to build an even stronger platform for growth, driving value creation for our shareholders and partners."
Ends.
Enquiries
Group Communications, Inchcape plc +44 (0) 20 7546 0022
Investor Relations, Inchcape plc +44 (0) 20 7546 8359
FTI Consulting (Jonathon Brill/Edward Westropp) +44 (0) 20 3727 1000
Notes
1 Reference to Inchcape plc includes all its worldwide subsidiaries
About Inchcape
Inchcape is a leading global premium automotive group, operating in 29 markets with a portfolio of the world's leading car brands in the fast-growing luxury and premium segments. Inchcape has diversified multi-channel revenue streams including sale of new and used vehicles, parts, service, finance and insurance. The Company has been listed on the London Stock Exchange since 1958, is headquartered in London and employs around 16,000 people. www.inchcape.com
