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Audi supply problems impact Perth motor group

Camerons, DUnkeld rd Perth
Pic Phil Hannah
Camerons, DUnkeld rd Perth Pic Phil Hannah

A major Perth motoring group said it had delivered a “solid performance” in a “competitive and challenging” year that saw sales fall by £2 million.

Cameron Group Perth operates Volvo dealership Strathmore Motors, Volkswagen dealers Cameron Motors as well as Perth Audi.

The company saw overall sales slip 2.2% from £92.1m in 2018, to £90m for the year ending May 31 2019.

Pre-tax profits fell from £2.1m in 2018 to £1.8m last year.

Sales and profits at the company’s Volkswagen and Volvo dealerships increased last year.

However, Perth Audi’s sales fell from £50.6m to £42m last year, which group managing director George Malcolm blamed on a lack of supply affecting the whole industry.

He said: “This has been a very solid performance that saw two of the franchises do very well.

“While sales slipped at the Audi franchise, this is the result of a supply issue that has affected dealers up and down the country – it is an issue that was very much out of our control.”

The firm expects to complete an extensive programme of investment across its franchises early in 2020.

Its Volkswagen facility was demolished and rebuilt at a cost of £2m five years ago, while Perth Audi was overhauled in a £1.75m investment.

A £2m revamp of the Strathmore Volvo facility began in 2018, however the collapse of contractor McGill saw a delay of several months.

“Over recent years we have made substantial investment in our franchises to ensure they are up to standard,” Mr Malcolm said.

“This means there won’t be a requirement for any major capital spending for the next 10 to 15 years. Our strong ethos of quality customer care, as well as the continuous development of our staff, means that we have excellent levels of customer retention.”

Cameron Motor Group was established in 1930 by Ian Cameron with a loan of £300 at Bridgend, Perth, in what used to be the Perth Hunt stables.

The business closed during the war years between 1939 and 1945.

In the 1950s, a new dealership opened in Scone where Volkswagen was located in 1953. Volvo followed five years later.

Premises were built on Dunkeld Road for Volvo in 1972, Volkswagen in 1984 and finally Audi in 1995.

The group, which remains in the ownership of the Cameron family, employed an average of 186 workers last year, with a wage and associated costs bill of £15.5m.

jimillar@thecourier.co.uk