Supply chain issues are having a “massive” impact on Perth-based Cameron Motor Group, despite it reporting a hike of over £20m in sales.
Customers ordering a new car may have to wait up to six months, but director Jamie Cameron said the problem is not unique to the Perth business.
“We’re finding that our suppliers have halved in new cars.
“We’ve got a massive gap in stock and when the next new cars will arrive next year.
“It’s a big problem, it’s national and every brand is affected by this.
“The consequence is there’s massive lead times on a new car.
“We are telling customers to get their orders in while they can and join the queue.”
Business booming until three months ago
The current problems faced by dealerships is a far cry from this time last year, when business rocketed.
People spent money they had saved during the first Covid-19 lockdown on a new car.
Mr Cameron said the first few months, with the business closed, was “quite uncertain” but that business took off last summer.
He added: “People weren’t spending money so they came and bought new cars.
“We had a good run of things and the market has been buoyant.
“That was the case up until three months ago.
“There has been a shortage of new cars and the past three months have been very difficult.”
Cameron Motor Group, established in 1930, has three operations: Strathmore Motors for Volvo; Cameron Motors (Perth) for Volkswagen; and Perth Audi.
When will the issue be resolved?
The company director believes it could be well into next year before supply returns to normal for Cameron Motors.
“I think the end for supply going back to normal will be quarter three next year.
“It’s very frustrating because we have a contract with Volkswagen UK and Volkswagen Germany and the same with Volvo for Sweden, and Audi.
“They are not meeting the contract we signed.
“It is frustrating because we’re losing money and we can’t control it.”
Cameron Motor Group expects figures to fall
Last year’s boom saw sales across the group rise to £96.9 million for the year to May 31 2020.
That was a jump of £23.2m, from £73.7m the previous year.
The Volvo operation’s sales were up £5.4m to £23.6m, Volkswagen rose £5.6m £25.2m.
Audi sales jumped £12.1m to £48.1m for the reporting period.
Mr Cameron said: “Supply was good and prices of used cars were at a normal level. We had a good run.
“Since the middle of summer, things have gone a little pear-shaped.”
The company director acknowledged those figures will dip again next year.
“We can’t sustain that level of turnover with a smaller number of cars,” he said.
Mr Cameron added: “I think it’ll take time to get supply back up and fulfil all the orders.
“I don’t think we’ll see another year like we had last year in terms of the volume. It was unprecedented.
“I don’t think we’ll have another year like last year.”
