MG Owners’ club to get MG franchise

[Davidt6dcm]

Hi all, i had this posted on my SWMGF forum today thought you may like to see,Dave


Exclusive: Owners’ club to get MG franchise
27 July 2007
Author: Tom Seymour
Source AM-ONLINE

In an industry first, Nanjing Automotive Corporation UK has awarded an MG new car sales franchise to the MG Owners’ Club. It becomes the 13th dealer to be awarded the franchise.

The dealership – Advantage MG – will trade as a business independent from the club, but based at MGOC’s headquarters in Swavesey, Cambridgeshire.

MGOC applied for the franchise when the Chinese manufacturer appealed for dealers at the start of the year. The two have been in regular contact since Nanjing bought MG Rover’s assets in 2005.

The club will adapt its current facilities to make way for a showroom displaying Nanjing’s new MG TF roadsters. The headquarters already has an approved XPart MG Rover Specialist Auto Service Centre.

Richard Monk, MGOC chairman, told AM the partnership with Nanjing will not jeopardise relations with MGOC members.

He added: “It doesn’t create a problem at all. I think they’ll be enthused about the idea. Who better to sort out problems or questions about their new MG?

“Advantage MG will be focusing on a simplified way of working. It’s a completely new direction for MGOC and will be a completely new business model for the industry,” he said.

Monk said Advantage MG would build up the business “professionally and slowly”.

No new staff will be recruited for the franchise. Instead, Monk will transfer some of MGOCs existing 60 staff. Four or five sales executives are ready to fill roles.

Administration will be handled largely by MGOC’s human resources department and it already has MG trained technicians in the XPart workshop.

Some contract details are still to be finalised, but Monk told AM he was “100% committed” to becoming a franchisee, and he expected completion by mid August.

Advantage MG is still waiting on Nanjing’s corporate identity and showroom requirements. Pricing of the MG TF and warranty provision is also yet to be announced.

Professor Garel Rhys, automotive professor at Cardiff University business school, said granting a franchise to MGOC was an innovative move by Nanjing.

“Advantage MG will feel like it is guarding the soul of MG and Nanjing will benefit from the link to the club’s British heritage.”

Professor Rhys doesn’t believe the link with MGOC will give Advantage MG an unfair advantage. “Dealers will just regard it as a variation on the normal franchise arrangements,” he said.

[daved]

Thanks for this info David. If this is indicative of NAC's innovative thinking which also influences its business activities including car development and retailing then the future should be bright!

As an aside, I worked with Garel Rhys more than ten years ago and was very impressed by his knowledge of the car industry and him as a man. Glad to see that he is still bowling along.

[balrog]

Hmm, that kind of begs the question what those 4 or 5 people + HR were doing in the first place. So is this a free way of getting a profit making business off the ground using labour paid for by MGOC members. Maybe I'm being unfair and profits will go back to supporting the membership.

[stu]

balrog said:

Hmm, that kind of begs the question what those 4 or 5 people + HR were doing in the first place. So is this a free way of getting a profit making business off the ground using labour paid for by MGOC members. Maybe I'm being unfair and profits will go back to supporting the membership.

A very valid point Tim I can also see this distancing the CC and OC, in the past both 'clubs' were all about the people who owned the cars and their experiences with them.. Will the Dealership cloud the issue and give the OC different priorities ?

Only time will tell..

Stu

[sniperpenguin]

In my eyes I think this is a cross between improving the "status" of the MGOC and a bit of one-upmanship againt the MGCC.

I would be very interested to see where the profits for this venture would go, especially since the "MGOC Hardcore" will probably give their money to the MGOC, and not to a possible new local dealership!

[andrew]

Any franchise will have to be run on a profesional level because of the financial outlay. Yes they will have to compete on price and quality of service because they will be one of the maney dealers who will be trying to chase the pounds and profit plus customers go where they persieve the best value for money not the nearest or most conveient.

[daved]

I think you all might be being a little cynical here. Or am I being naive?

The MGCC is the "club" for MG owners and although the MGOC is perceived as being elitist towards Bs the MGCC has also had its elitist problems in the past. The difference between the two is that the MGOC was founded, as far as I can tell, basically as part business project and part membership club. Or as a members club aimed at making a profit?

This is the way of it. Nevertheless there is room for both to exist and thrive as they do because members have a choice - join one or the other or both. Also, having the two clubs and other MG clubs, opens varied routes for development and progress.

The more variety the better as long as the competition between the two remains respectful I think it is a good thing.

I think it is great that at least one of the clubs is now involved in selling the new version of the cars. Market forces will dictate the level of prices and customer service etc and good luck to them. I also see it as a great route for feedback to NAC-MG.

[John Ponting]

The real difference between CC and OC is that OC is a private profit making company funded by sales of spares and accessories and a fully equiped workshop while the CC is funded by members, events and advertising.

btw I have no problem at all with the MGOC although I am not currently a member.