THE chief executive of Vertu Motors has highlighted the firm's enthusiasm for Scotland, saying the company's investment in a flagship dealership in Glasgow reflects its confidence in the outlook for the country's economy.
Robert Forrester said the new Nissan dealership the company plans to open in north Glasgow is a big commitment for the company to make in a city he described as a fantastic territory for motor dealers.
"That is an important development for us ... and shows the confidence we have in the Scottish economy and the propensity of Scottish people to buy cars," said Mr Forrester.
He added: "In April some of our Scottish dealerships hit record levels of sales."
Gateshead-based Vertu has nine dealerships in Scotland trading under the Macklin brand.
The company yesterday posted strong trading results that reflected buoyant conditions in the UK motor trade, which Mr Forrester expects to continue.
"If you have strong GDP growth and a robust economy you tend to find car sales go with it. And we have record levels of employment; high immigration, people need cars; we have inflation less than earnings growth and because of strong sterling new cars are very affordable," said Mr Forrester.
He said Vertu's operations in Scotland had performed in line with the rest of the UK in recent months.
With 116 outlets in the UK, Vertu said its March and April trading performance was ahead of the current year financial plan and significantly ahead of prior year levels.
Aim-listed Vertu said group new car sales volumes increased by 4.3 per cent in March and April compared with the same month last year, stripping out the effect of changes in dealerships.
Used car volumes increased by 6.2 per cent. Mr Forester noted more used cars were coming onto the market following a period when supplies were limited amid the downturn that followed the global financial crisis of 2008.
Vertu increased total sales by 23 per cent in the year to 28 February, to £2.1 billion from £1.7bn in the preceding year.
The company grew pre-tax profits by 33 per cent to £21m, from £16m.
It has amassed a £40m war chest to support expansion. Mr Forrester said the company sees attractive acquisition opportunities.
Vertu bought the Glagow-based Taxi Centre specialist sales business for £1m in November.
It acquired two Hyundai sites in Edinburgh in November 2013 for around £700,000 in total.
Mr Forrester said Vertu might make further acquisitions in Scotland but noted the importance of the expansion in Glasgow. The company doubled its number of Nissan dealerships in Glasgow to two from 1 April. It plans to build an expanded outlet in north Glasgow over the next 18 months to replace the existing temporary facility. Employee numbers in Glasgow are expected to increase to around 70 when the new centre opens, from 30 currently.
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