Susan Gordon, Business Reporter

Brian Stevenson, managing director of the Issa Transport Group Limited explains the company's new strategy from his office on South Camp Road, Kingston. - Photo by Susan Gordon

The Issa Transport Group (ITG), owned by the House of Issa, is spending up to US$4 million ($260 million) to refine its operations in a strip-down from eight companies to three by January 2008.

Managing director of the group, Brian Stevenson, who was recruited some 10 months ago to turn around the company, said the restructuring that has been under way for several months should reduce operational costs and boost efficiency in its after-sales service to clients.

"We are trying to take 10-15 per cent of all our costs," said the new MD.

ITG comprises companies Jamaica Industrial Equipment, Performance Distributors Limited, Motor Bike Sales, International Rentals Limited trading as Budget Rent-a-Car, and car dealerships Motor Sales, Euro Star Motors and Prestige Motors. The group office itself is considered the eighth entity.

Stevenson, a Zimbabwean, said none of the 300 jobs in the group would be affected.

"It's a business strategy: changing the way we do business to exceed our customer's expectation and grow the company," he said.

"We are trying to flatten the organisation to one which is more responsive, with communication going a lot quicker ... "

In keeping with the restructuring plan, the Lee Issa-chaired ITG has opted to purchase the 2.5 acre property housing two of its subsidiaries - Motor Sales and Euro Star Motors, dealers for the luxury brand Mercedes-Benz - from another Issa family-owned company, St. Andrew Hotels, for US$1.5 million ($97.5 million).

The group will spend another US$500,000 to revamp the property, and US$1 million on plant and equipment upgrades for the facility.

Funds will also be channelled into training and consultancy services.

"The company will spend in excess of US$3-4 million in bringing ourselves up to scratch and make the company as lean as possible," said Stevenson. He said for every franchise there is a company so there has been over the years, duplication of efforts and purse which is unnecessary.

Declining to give exact figures, ITG marketing director Paul Issa told Wednesday Business that the business has been growing.

"Our gross revenue, year to date, has seen a 20 per cent increase over last year," said Paul, adding that the Mitsubishi brand was its biggest money earner.

"I think the new structure will drive up sales ," added Stevenson.

The consolidated operation will see ITG focussing more specifically on tours and travel, catering to the car rental sector and transport for the tourism industry; automotive transport, dealing will all light commercial and passenger vehicles; and industrial/commercial equipment, specialising in earth-moving equipment and automotive batteries for industries.

Phase one of the restructuring was completed earlier this year with Prestige Motors, dealer for Volkswagen and Audi, being absorbed into Motor Sales and Services, which sells the Mitsubishi and Chrysler brands.

Performance Distributors was absorbed into Jamaica Industrial Equipment.

Stevenson has been sensitising the staff members with team building and efficiency workshops to improve customer satisfaction; he has upgraded telephone and computer systems internally, and overhauled the parts department, putting it "on par with any European company with state of the art equipment," said the Zimbabwean.

By the end of February, ITG anticipates that its parts department would have been sufficiently reshaped to fill at least 90 per cent of the orders for parts for all its vehicle brands.

The company will also be monitoring its turnaround time for vehicle sales as a measure of its efficiency.

And is already looking to develop an after sales service centre for its North Coast customers.

With reference to market share, Stevenson did not proffer on estimate on what ITG controls, but said that the group boasts three of the top brands in the luxury auto market and one of the top three brands in the overall market, and is rated number one in the local motor cycle market.

"The aim is to make sure any brand we have is in the top percentile of the market in the next two years," he told Wednesday Business.

susan.smith@gleanerjm.com