Ashford W. Meikle, Business Reporter

Harry Benjamin

Managing director of New Line Motors, Dr. Harry Benjamin, is scoping out lucrative corporate fleets in the private sector, saying he plans to capture about seven per cent of the new-car sales by going after business from companies.

Benjamin straddles both the new and used-car sectors, but largely built his business from the latter segment.

"Look out, corporate Jamaica, we are coming for your business - all of it," Benjamin declared at the opening of his newest dealership and bonded warehouse, an 18,000 square foot car property on Constant Spring Road in Kingston.

Last year, about 15,000 vehicles were imported into the island, a third of which were new models.

Benjamin aims to sell about 60 to 80 vehicles per month, split equally between new and used, generating revenue of about $50 to $70 million per month, or just over half a billion dollars per year.

"You have to set lofty targets to work with," Benjamin told the Financial Gleaner, acknowledging that his plans were ambitious.

"It means that you have to double your efforts to get where you need to be."

Under the New Line Prestige Motors Company marquee, the car dealership has the exclusive franchise to sell motor vehicles from four Chinese automobile manufacturers: Yutong - which carries the flagship buses which are now being used extensively by JUTC and a number of tour operators on the north coast; Zheng Xhiang (ZX) Auto - featuring four and two-wheel drive pickups as well as the Landman SUV; Cherry - carrying a range of sedans, minivans and SUVs; and Foton - the largest truck manufacturer in Asia.

Customer service, Benjamin argues, will make the difference in the increasingly competitive auto industry.

His new dealership is an improvement on the choked operation he had at Hope Road. But more exclusively, the New Line supercentre features a spa and a beauty parlour as well Internet facilities for customers.

"The market is absorbing a certain number of vehicles, andit is going to come down to what percentage of that you can get," said the dealer. "And in order to increase your share of that market, it's going to come down to the quality of service you offer."

Benjamin already believes he has an advantage on price in the market. Chinese vehicles are generally re-engineered off existing technology and, in some cases, are as much as a third cheaper than similar models carried by automakers such as Honda, Volvo and Mercedes Benz.

"The engine is Cummings, one of the best in the world," said Benjamin, referring in this case to the Yutong buses.

"They have been using a lot of German technology and the engines come with a two-year unlimited warranty."

The Cherry QQ, an economy car, costs just over $600,000," noted Benjamin.

The new dealership, which opened last weekend, was developed on almost three acres of land in about six months. The pre-engineered steel facility has three structures, with the main building occupying about 15,000 square feet. It houses the showroom, the administrative and executive offices and a showroom, which accounts for 4,000 square feet of the space. There is also a warehouse, with some 28,000 square feet of racked storage space, a bonded warehouse capable of holding 80 vehicles, and a display lot with space for 70 vehicles.

The new auto centre has a staff complement of about 50 and there are plans to hire additional workers. Financing of the project was through a mix of private equity and credit facility extended by First Global Bank, but Benjamin declined comment on the capital outlay.

"The budget was the budget," he remarked.

The new dealership will service both new and used-car clients with the same level of service, said Benjamin.

"We haven't shifted away from used-car businesses, we remain an active and aggressive distributor of pre-owned motor cars," he said.

"In some cases, the prices will be lower than the competition since we will have the buffer of new-car sales and won't depend solely on used cars for profitability."

ashford.meikle@gleanerjm.com