Peoples’ Brian Gilda on forging strategic partnerships in uncertain times

Chairman of Scottish dealership group Peoples Brian Gilda talks to AM about the strategic decision to expand into Chinese car brands BYD and Chery's Omoda and Jaecoo, bringing to a close the dealership group’s exclusive relationship with the Blue Oval.

Despite the challenges of Ford's shifting business model and the lack of suitable volume options in the electric vehicle market, Gilda says he remains committed to Ford, leveraging the car maker’s robust commercial vehicle offering and the 42-year relationships with the manufacturer. Even so, he anticipates swift adoption and forecasts a 20-40% share for Chinese brands in his new car sales mix.

Late last year, Gilda initiated a bold expansion into Chinese car brands BYD and Chery’s twin brands, Omoda and Jaecoo, a calculated pivot that not only reflects the dealership’s response to evolving market dynamics but also Gilda’s strategic foresight in positioning Peoples for sustained growth in a transforming landscape.

Diversifying Beyond Legacy Partnerships

For over four decades, Peoples has been synonymous with Ford, a partnership that has shaped its identity and customer base. However, Ford’s discontinuation of popular models such as the Fiesta, coupled with its challenges in navigating the electric vehicle (EV) market, prompted a re-evaluation of Peoples’ portfolio.

Gilda’s decision to embrace Chinese brands was borne out of the need to address a fundamental gap in volume offerings. “We were a big volume player with Ford and sought something comparable,” Gilda explains. “When it became evident that such an option did not exist within our traditional framework, we began exploring alternative avenues.”

This exploration coincided with outreach from BYD and Chery, creating what Gilda describes as “a marriage of convenience.” Both manufacturers were seeking established dealers with local credibility, a criterion Peoples met with its deep roots in the market. “They were looking for local heroes, and I believe that’s what we represent,” he notes.

Chinese Brands: From Scepticism to Confidence

Gilda’s initial impression of Chinese automotive products, formed a decade ago during a visit to the Canton Import and Export Fair, was one of scepticism. “At the time, the product offerings did not inspire confidence,” he admits. However, a subsequent visit in 2022 prompted a reassessment as China’s domestic manufacturing base was demonstrating a remarkable transformation.

“Today’s Chinese vehicles are visually stunning, technically sophisticated, and competitively priced,” Gilda observes. “In many respects, their technology surpasses market expectations, and their pricing strategy is particularly aggressive.”

These attributes, coupled with Peoples’ successful launches of BYD in January and Jaecoo in September, have confirmed Gilda’s belief in the potential of these brands to redefine the dealership’s passenger vehicle offerings.

Maintaining Ford’s Legacy Amidst Change

While diversifying, Peoples remains steadfast in its commitment to Ford. The brand’s dominance in the commercial vehicle sector continues to provide a robust foundation for the dealership’s operations. “Our commercial vehicle product with Ford is spectacularly strong, and we will continue to capitalise on that market leadership,” says Gilda.

However, he is candid about the challenges posed by Ford’s evolving strategy in passenger vehicles and electrification. “Ford’s current focus on premium-priced EVs is ambitious, but it comes at a time when the market is overproduced and struggling to justify these prices,” he explains.

Despite these hurdles, Gilda is optimistic about Ford’s ability to innovate and stabilise its offerings. “They’ve shown they can produce market leaders, as evidenced by the success of the Puma, and I believe they will do so again.”

Navigating a Dual Strategy

The integration of Chinese brands alongside Ford represents a delicate balancing act, but one that Gilda approaches with confidence. “We do not see this as a conflict,” he asserts. “In fact, the diversification strengthens our ability to cater to a broader range of customers.”

Peoples has identified a distinct audience for its new Chinese offerings - buyers who are not traditional Ford customers and who are drawn to the technological sophistication and value proposition of these vehicles. “These customers have often done extensive research and are ready to commit once they experience the product,” Gilda notes.

Meanwhile, the dealership remains dedicated to supporting its Ford customers through the transition. “For customers loyal to Ford, we ensure a seamless experience, whether it’s finding a suitable replacement within Ford’s lineup or introducing them to our new offerings,” he explains.

Preparing for a Transformative Era

The rollout of BYD, Omoda, and Jaecoo across Peoples’ six dealerships is progressing in a phased manner. A dedicated showroom for Omoda and Jaecoo in Edinburgh, currently under construction, demonstrates the dealership’s commitment to establishing a strong presence for these brands.

Looking ahead, Gilda anticipates that aftersales will become a critical area of focus as Chinese EVs gain market share. “In three years, the growth of Chinese electric products will necessitate a strategic approach to aftersales, and we are already working to position ourselves as leaders in this domain,” he says.

Strategic Growth and Opportunities

While consolidation is the immediate priority, Gilda remains open to acquisition opportunities that align with the dealership’s strategic objectives. “We will consider opportunities that complement our partnerships with BYD, Omoda, and Jaecoo,” he states, emphasising the importance of maintaining a strong local presence.

The partnership with Chinese brands also brings with it an expectation of high performance. “They are looking for dealers they can depend on - what they call ‘local heroes,’” Gilda explains. “This aligns perfectly with our ethos and commitment to delivering exceptional results.”

Adapting to Industry Transformation

Reflecting on the broader changes within the automotive industry, Gilda acknowledges the unprecedented pace of transformation. “The level of change we’re witnessing is generational, far surpassing anything I’ve seen in over 40 years, including during the COVID-19 pandemic,” he remarks.

Despite these challenges, Gilda credits his team and leadership structure with the ability to navigate this complex environment. “We have a strong, cohesive team, led by my daughter Nicola Gilda, who manages the business operations, and supported by Stuart Ramsey, our finance director,” he says. “Together, we are committed to adapting and thriving, even in a tough market.”

As Peoples integrates its new Chinese partnerships and continues its legacy with Ford, Gilda remains optimistic about the dealership’s ability to weather market fluctuations and emerge stronger. “This is a period of great change, but with the right strategy and team, we are well-positioned to succeed.”