Centenary dealers

Two world wars, the 1929 Wall Street Crash, the crowning of Britain’s second longest ruling monarch and the only time England has held the World Cup aloft – some businesses have ‘seen’ it all, writes Debbie Kirlew.

2011 has had its fair share of 100-year celebrations. Perhaps, most notably, Ford’s century in Britain, while with its intrinsic British heritage, Rolls-Royce celebrated 100 years of its most famous mascot, the Sprit of Ecstasy.

Not quite the icon it is in America, but nevertheless Chevrolet also celebrated its centenary year in 2011.

These brands, as well as many more, would not be enjoying their current status without their network of dealerships.

And there are several whose businesses also date back 100 years or more. These dealers have thrived, adapted and survived without government backing and multi-million pound marketing budgets.

For each of the businesses and dealer groups featured here, there are plenty more who have been around for as long or are due to celebrate their centenary this decade.

This feature is dedicated to you all, we tip our hats and sincerely hope that you will all be in business in another 100 years to come.

County Motor Works: established 1907

County Motor Works (CMW) is enjoying a new era while bucking the current trend.

At its four-acre site in Chelmsford, Essex, where it currently represents the Vauxhall, Chevrolet and Alfa Romeo franchises, as well as being approved repairers for Subaru and Fiat, new car sales are up 44%, used car sales have increased by 70% and finance income is up by 90% while aftersales has risen 20%.

That equates to a total turnover of £19 million to the end of September compared to £15m for the same period last year.

But it hasn’t been plain sailing. The business, which first opened in 1907, has endured some difficult times and although it is still owned by descendants of the founders, it was recognised that new blood was needed.

That new blood came in the shape of managing director Mike Gamble who took the helm around a year ago and has successfully steered CMW back on course.

He said: “We have been going through a fairly major transition since October last year which has seen us streamline, introduce new processes and basically bring the business into the 21st century. We are delighted that our measures have worked.”

On the brink of signing two new franchises, Gamble is facing the future with a certain amount of enthusiasm.

No doubt founder John William Austin would admire Gamble’s entrepreneurial spirit and commercial zest.

The son of a London-based printer who went to Glasgow University before working for the East Anglian Daily Times and The Essex Weekly News as a general engineer specialising on the printing press, Austin acquired the print works in Chelmsford with the help of his father.

It wasn’t long before he was applying his engineering skills to the new automotive industry and by 1913 he was successful enough to need larger premises and built a state-of-the-art showroom for the time and extensive workshop.

Leading up to the First World War business was thriving and notably CMW supplied and repaired all sorts of vehicles for the Ministry of Defence.

In the years that followed the business continued its development and in 1919 became the Buick agency for General Motors. When in 1925 General Motors purchased the Vauxhall factory at Luton, CMW was the natural choice as agents for the brand throughout Essex.

However, when John William Austin’s son, also John, was demobbed at the end of the Second World War he returned home to his family and business, which was in a sorry state. Undeterred, John, now aged 95, brought the business back to its former glory throughout the 50s and 60s.

Caffyns: established 1865

The Caffyns story could easily be the story of Britain from the Victorian age to the present day.

William Morris Caffyn was apprenticed to his uncle in 1856 to learn the trade of “ironmonger, tinman and brazier” before opening his own shop in 1865 in premises adjoining the present site of Caffyns’ head office in Meads Road, Eastbourne.
An entrepreneurial Victorian, in 1871 William Morris obtained a petroleum licence expanding his services to include ‘lamp and oil merchant’.

But it was a chance visit from a new breed of people – a motorist – which was to have far reaching repercussions for the business.

The driver needed a place to keep his four-cylinder Renault and asked if the butcher’s shop veranda could accommodate the vehicle and a further, similar request convinced brothers Percy and William Caffyn, the sons of William Morris, that the motorcar had a lasting future.

In 1903 the brothers took over the business and opened their first garage which they called a ‘coach house’ and in 1904, the premises were enlarged to hold 16 cars and the name “Caffyn’s Garage” appeared on the fascia.

The brothers’ ambition saw them continue to expand, develop and acquire additional premises, opening a new garage in 1906 with space for 100 vehicles while agencies held included Argyll, Belsize, Clement-Talbot, Siddeley and Wolseley.

Even the war did not halt their expansion, though, like many companies, the business began the manufacture of wartime supplies.

Percy’s two sons, Sydney and Edward, joined the company in the 1920s although the Second World War saw them pursue two very different courses; Sydney remained at home while Edward pursued a distinguished military career.

Sydney secured government contracts which kept the business operational as well as contributing to the war effort.

Caffyns’ premises were damaged in no less than 79 separate bombing incidents.

A total of 370 Caffyns’ staff served in the Forces, 18 men did not return and their names are on the Caffyns’ Roll of Honour.

Peacetime saw Caffyns re-equipping premises and reorganising the business.

By 1965, 100 years since William Morris Caffyn opened his first shop in Eastbourne, the company had a turnover of more than £10 million and a staff of more than 1,500.

Unusually, both brothers received knighthoods, Edward in 1963 and Sydney in 1972.

Expansion continued in the 1980s, including spreading to the neighbouring counties of Dorset and Hampshire.

By this time Caffyns had added marques such as Mercedes-Benz, Renault and Audi-Volkswagen to its portfolio.

New franchises were added and new services were introduced including ‘menu pricing’ known as Flexi-Serve in 1985 which was so innovative that it featured on the BBC programme Top Gear.

Sir Edward died in June 1990 at the age of 86, after 65 years of service to the company.

In the same year, representing the fifth generation of the family, Simon Caffyn, now chief executive, joined the company after clocking up considerable experience with American management consultants, Andersen Consulting and large national motor group Mann Egerton.

Sarah Caffyn, who has responsibility for human resources, is also on the plc’s board.

Simon, who joined the board almost 12 years ago and was appointed chief executive in 1998, believes a clear vision has helped keep the business operating for more than 100 years as well as retaining the Caffyn family links.

He said: “Clear values centred on customer service, value and integrity are vital ingredients for longevity as well as the ability to keep adjusting and developing as the environment changes.

"For example, we have reacted to the current climate by restructuring to concentrate on premium and premium volume franchises which are proving to be more resilient.

"We have a strong balance sheet enabling us to take up opportunities that may arise. Our strategy means we now have fewer, but larger, more resilient operations, such as our new flagship Land Rover dealership in Lewes.”

Employees with excellent pedigrees are also highlighted as essential for the success of any business.

He adds: “We have generations of employees and customers – I once met a customer who knew my great grandfather! We have quite a number of ‘families’ who have worked in the business.

“I think if our founder William were to see the business today, he would recognise the key values are similar to those of 1865,”
 

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Hendy Group: established 1898

Dealers, to some extent, are inextricably linked with the fortunes and misfortunes of the brands they represent.

No more so than the UK’s first ever Ford dealer Hendy.

A century after its founding, the Hendy Group, which has sold more than 400,000 cars and has carried out more than
three million services.

It employs around 700 people at 21 dealerships and has a turnover of £250m. It remains both buoyant and in the family.

The origins of the company date back to 1859 when Frederick Adolphus Hendy, whose great grandson Brian Hendy (chairman) and great-great grandson Paul Hendy (managing director) now head the group, started his bicycle repair business in Whitchurch, Hampshire.

However, it was his son Percy, the youngest of six children, whose meeting in November 1910 with Henry Ford sowed the seeds of a relationship with the brand that was to become the UK’s most popular make of car when he signed the contract to become the country’s first ‘official’ dealer.

“I think both Frederick and Percy would be extremely proud at what we have become and the fact that it remains a family business,” said Paul.

He added: “We have always prided ourselves on our customer service, our ability to identify and grasp opportunities while remaining risk averse.

"This is as true today as it was 100 years ago, even 150 years ago.

"We have always been prepared to plough back our profits to keep the business strong.

"We take a long-term view and we look after our employees and our suppliers, be they manufacturers or local businesses.

All our relationships stretch back years – Ford is obviously the longest at 100 years, but we have held the Iveco franchise for 35 years and our partnership with Honda is in its 15th year.

“All generations have faced adversity in business and it’s difficult to draw comparisons.

"It’s a constant challenge to keep evolving and moving with the times, but that has kept us in business for so long and we never get to the stage where we think we’ve cracked it.

"The immediate challenge is to consolidate our position and take up sensible opportunities that may come our way.”

While the Hendy name remains synonymous with the Ford brand, including trucks, all along the south coast, the group has expanded into other franchises, including Kia, Mazda and Honda as well as Iveco Trucks and has spread its geographical representation further west to Devon and Cornwall.

The group has also established extremely successful subsidiaries, including Hendy Rental and Hendy Power, formed in 1968 to supply engines, major ass-emblies and original equipment components to the specialist vehicle and manufacturing industries.

Its portfolio also includes Exeter-based used car brand Hendy Car Supermarket and Hendy Motorsport.

Hendy Ford played a central part in Ford’s centenary celebrations which included a heritage day at its Eastleigh showroom and attending the Goodwood Revival Meeting where Ford displayed 100 cars, including several models from the Hendy Group’s own collection.

Not surprisingly, Henry Ford’s famous quote - “Coming together is a beginning, staying together is progress, and working together is success” – remains very much at the heart of the Hendy Group.
 

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Sturgess: established 1897

“Knowing your limitations” and “a sense of humour” are the cornerstones to staying in business for 100 years, according to Chris Sturgess, chairman of Leicestershire-based WE Sturgess & Sons.

The fourth generation to run the business, Chris is supported by his managing director brother Barney and together they preside over a group representing a wide range of automotive brands.

Not bad considering founder and the brothers’ great grandfather Walter E Sturgess’ false start when he went to seek his fortune in Australia at the end of the 19th century.

Although he met his wife there, the venture otherwise proved fruitless and the pair worked a number of menial jobs to pay for the return trip.

Back in their native Leicestershire, Walter opened his bicycle business in 1897 calling it ‘Austral’ as well as adopting his trade mark, a kangaroo on a shield which is still used today.

Now, 114 years later, the group operates from four premises representing Jaguar and Land Rover – a relationship that stretches back to the early days when Walter was first appointed as a Rover specialist in 1904 – Volvo, Alfa Romeo, Nissan and Fiat as well as holding approved repairer status for Toyota.

Sturgess said: “My great grandfather had a real eye for an opportunity and was always looking at ways to diversify and incorporate additional revenue streams.

“I think my father made some vital strategic decisions by signing as an official dealer for Jaguar and Land Rover in the late 1940s.

"I consider our long standing relationship with these brands as one of our greatest achievements over the past 100 years particularly as it all started when Walter became the official agent for Rover.”

Not surprisingly, the awarding of a Royal Warrant to the business in the 1970s for supplying trailers, which Sturgess still holds, is a matter of pride for the company.

“More latterly, though, survival is very much a major achievement. I think we have managed to do so because we have grown organically and as such have written our own agenda whereas a forced expansion can leave a business exposed.

"The lesson we have all had to learn is that to stay in business you have to stay alert to opportunities and change; and make sure you have a plan B.”

He said: “We have learned from the generations who have gone before us about how to run a successful business and I’m sure our forefathers would be delighted to see their legacy living on.”

Hutchings: established 1896

Gilbert Hutchings’ 1896 butcher’s shop in South Wales heralded the beginnings of an automotive business a decade later, which is now run by his great grandson John, as chairman, and great great grandson Steve, as sales and marketing director.

Steve said: “The heartland of our business is the Rhondda Valley and we have continued to serve these communities whose own generations of families have supported our business.

“Just as in my great, great grandfather’s day, today’s customer still expects my father and I to be hands on and running the company at grass roots level.”

Hutchings enjoys gen-erations of customers as well as generations of employees.

The dealership has just sold its 14th Vauxhall to customer Roy Saunders, the second generation of his family to be loyal customers.

Another customer, in his will, requested that his children continued to buy their vehicles from the family and, although they lived in London,
they fulfilled his request for years.

By building a successful butchers and meat distribution business Gilbert developed alongside it a vehicle repair operation, after he acquired a delivery van in 1908 and realised he would need someone to maintain it.

Soon the Hutchings business was offering the service to other local vehicle owners as the motor vehicle grew in popularity.

Hutchings was a relative late-comer to sales and did not embrace retail until the 1930s.

Two decades later Leighton, Gilbert’s grandson and Steve’s grandfather, recognised the potential of the Vauxhall brand as consumerism took off in the 1950s. In 1957 he became an official supplier.

It was then that Hutchings’ automotive retail really made its name, leading through relocations to its current Treforest location, its home since 2007.

“The internet, emails and mobiles are certainly the way we need to be communicating,” said Steve who has just launched the company’s new website with features more likely to be adopted by much larger groups.

“However, the way you treat people to guarantee they come back and recommend your business will never change.”