Dealers interested in selling SUVs and pick-up trucks from US brands Cadillac, GMC and Chevrolet are being sought to form part of a new network.
As part of its official UK launch, the General Motors Specialty Vehicles (GMSV) operation has launched an open recruitment process to form a nationwide UK dealer network – the first of its kind for these vehicles.
GM has appointed dealer Clive Sutton, a long-established importer of American vehicles, to lead its UK retail network development, and also to operate a flagship franchise in North West London, which will open in the coming months.
Dealers who join the network will get fully homologated vehicles to sell, supported by a three‑year unlimited mileage warranty, nationwide servicing, finance and part‑exchange options.
Available models include: the Cadillac Escalade (pictured above), Escalade ESV and Escalade-V; the GMC Yukon Denali, Sierra 1500 Denali and Sierra 1500 AT4; and the Chevrolet Tahoe, Suburban and Silverado (pictured below).
What’s on offer for GMSV dealers?
Clive Sutton, chief executive of the eponymous business, told Automotive Management that “maybe four or five” dealers were being sought to become part of the network.
Explaining the arrangement, he said: “First of all, the retail pricing will be uniform across the whole country. So, whatever we’re selling the car for, they’ll be selling the car for the same retail price.
“We will have a small wholesale margin built into our pricing, but the difference is that we will finance the importation of the car. We will do the homologation to a uniform standard, we will set up the warranty process, and these dealers will be able to join in by paying a deposit to order the car, and they only need to pay for the balance when the car is homologated and ready to be delivered to them.”
Sutton said this arrangement would offer major cash flow benefits to dealers compared with importing cars independently.
He said: “A car from North America doesn’t normally leave until it’s fully paid for.
“So, the cash flow for a dealer to involve themselves with us is going to be much better than if they were doing it as an independent.
“We will be asking them to commit to buying some stock, and vehicles for showroom. There will be some GM Specialty Vehicles corporate identity, but it’s all very low cost, and there will be some basic tooling requirements, which are also very low cost.”
Which dealers might be suitable for GMSV?
Regarding the types of dealers that might be of interest to the network, Sutton explained that the potential profile was wide-ranging.
He said: “We welcome enquiries from large public quoted dealers looking to add an interesting, profitable niche to an existing operation. We welcome inquiries from existing American car importers. who want to do something a little bit more, dare I say it, structured, and we’re looking for people who are enthusiastic about the product, as much as enthusiastic about making money, because there is money to be made doing this.
“There will be a very reasonable front-end margin to be made out of these cars.”
Sutton said that dealers who joined the network would not be given sales targets.
Regarding potential demand for the vehicles, he said: “We expect ourselves to be selling between 50 and 100 cars a year, and we expect individual dealers to do anything from 20 to 40 to 50 cars each.
“We think there’s a market for – without pushing the product – in total, maybe a couple of hundred cars a year. We would expect a dealer to make an initial order maybe for half a dozen cars, maybe two or three SUVs and two or three pickup trucks, launch the product, and then the lead time for ordering them is about four months.”
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Although the dealer recruitment process is just getting underway, customers are able to order cars online immediately, and Sutton explained that around 15 cars would be arriving at Clive Sutton next month, to be sold from the company’s existing St John’s Wood headquarters until the new flagship facility is open.
Who are the target customers for GMSV?
According to Sutton, UK buyers of US SUVs and pick-ups generally fall into two camps
He explained: “There are people who discover them on holiday, who are mainstream buyers coming out of Range Rovers, Audi Q7s, Mercedes-Benz GLSs, or there are people who are genuine Americano enthusiasts.
“Quite a lot of people who go on holiday to America with their family, they’ll rent a car like this to use, and they’ll realise that actually, the space and the comfort and the features are very, very enticing.
“So, when they come back to the UK, the first thing they want to find out is, can you buy one here? And even though none of them are available right-hand drive, a lot of people will accept the fact that they can drive a left-hand drive car quite satisfactorily here. They’re sitting high up, the vision is good.”
While the vehicles imported have a niche appeal, the ability to offer the choice to the UK’s fans of America’s prestigious SUVs and pick-up trucks is an opportunity for General Motors. Jean-Pierre Diernaz, managing director of GM Europe, said: “We’re excited to be working with Clive Sutton to bring to UK customers our iconic North America vehicles. We’ve selected incredible vehicles from our global brands – Cadillac, GMC and Chevrolet – through a dedicated GM facility in North West London and the nationwide network of retailers that is set to follow.”