Volvo, Fiat dealerships to make April debut
Published:Wednesday | February 23, 2011 | 12:00 AM
Avia Collinder, Business Writer
Chief Executive Officer of GM Challenger Nigel Pagon says his company will launch its new Volvo and Fiat dealerships in April 2011 after the expected arrival of the first set of pre-ordered vehicles for its Kingston showroom.
Negotiations for the dealership were concluded in March 2010 with Conrico International, the United Kingdom-based agent for Volvo and Fiat brands in the Caribbean region.
According to Pagon, he has since then been preparing to serve the local market for Fiat and Volvo, whose demographic, he says, covers both older and younger buyers.
His target sales for both marquees is 60 to 90 vehicles or two to three per cent market share in the first year; and eventually to five per cent of the market.
Declining to state the size of the investment involved, he said that it was made with long-term develop-ment considerations for the company, which will pass eventually to his two sons.
The 'new car' market has shrunk to around 3,000 units, from a peak of 12,000, Pagon said, quoting industry data, presenting new dealerships with potential challenges in enticing buyers - a problem exacerbated by the current economic contraction.
However, Pagon notes, "My plans are long-term."
GM Challenger already dis-tributes General Motors vehicles, including Chevrolet.
Agreement
The agreement with Conrico involved the "putting up of security", the purchase of new vehicles, investment in spare parts, diagnostic equipment, show-room customisation and image development in line with brand requirements.
"We are completing the show-room at Lyndhurst Road," Pagon said, while noting that the company was conducting research to determine the needs of existing owners of Fiat and Volvo vehicles in the island, "so we can invest in satisfying their needs".
Fiat has been without dealer representation in Jamaica since 1985 while Volvo has been unrepresented since 2008.
The Volvo dealership was last held by Karram's Regency Automobiles, while repairs, up to recently, were handled by Kingston Industrial Garage (KIG), which sells Ford models.
Ford Motor Company sold the Volvo brand to Zhejiang Geely Holding Group Company Limited in 2010 for US$1.8 billion.
Under the terms of the sale, Ford continues to supply Volvo with components including powertrains and stamping systems for a period.
Pagon said that Volvo is primarily bought by Jamaicans aged 50 and over who see it as the vehicle to retire with because of its durability.
The Volvo S60 costs J$6.75 million.
However, he said new sportier versions with smaller engines, improved aesthetics and aerodynamics, should appeal to younger Jamaicans as well.
"Volvo is a premium brand which competes with BMW, Audi and Benz."
The Fiat motor cars, Pagon says, is expected to compete directly with Japanese imports.
The Fiat 500 Sport retails for J$2.8 million.
GM Challenger will carry all Volvo lines but three fiat models.