Sunday, 15 May 2011
Al-Futtaim Motors cuts number of used cars
Simon Frith, Managing Director of Al-Futtaim Motors Company, told Gulf News that AFM would not be selling cars more than three years old because customers were reluctant to buy them. He said that going forward AFM would be selling "a third as many used cars" as it would be selling new.
Frith also revealed that the change in customer mindset had led to operational changes within the company, with second hand sales brought into the remit of the used car division of the Al-Futtaim Group, and away from the company's Automall brand.
"We have traditionally sold our used cars through our Automall brand, but that has changed. For Toyota and Lexus, we are bringing the used cars back into our business and we will be retailing them rather than Automall operations," he said.
Frith added that while it has already started happening, the full transition will be completed by the end of the year.
Under the new set-up, Al-Futtaim Motors will sell pre-owned vehicles which are older by six months to three years, while Automall will concentrate on vehicles older than three years.