Jeffrey Panton now owns the Peugeot dealership, which he will manage under a new company called Progressive Motors 2007 Limited. - Colin Hamilton/Freelance Photographer

Susan Gordon, Business Reporter

Island Motors Limited, the local dealers of the Peugeot and Ssangyong brands of motor vehicle is closing down its operations at the end of this week, and is handing over the dealership to a newly formed company called Progressive Motors 2007 Limited.

Progressive, formed only a month ago, is located on the premise of Vehicles and Supplies Limited, the lcoal Isuzu dealership owned by Donald Panton.

Up to press time, Wednesday Business was unable to contact Island Motors owner Michael Campbell for a comment. However, a senior member of the company said the closure was a "business decision from our director."

The takeover has seen Progressive Motors, whose principal is Jeffrey Panton, sorting through the company's inventory of supplies and parts for Peugeot, SsangYong, and Daewoo.

"Our responsibility rests in the spare parts section," Donald Panton told Wednesday Business in a brief interview adding, that the new set up at Vehicles and Supplies will see two different entities under one roof offering a range of priced vehicles.

Separate management

He said it was agreed with the automakers that having the rival brands, Isuzu and SsangYong, under the same roof was not in the interest of the competing brands, hence the decision to form a new company. Essentially, the dealerships will operate in shared space but managed separately.

Panton was reluctant to disclose the sale price for Island Motors' parts division and servicing equipment, but said the acquisition would eventually boost revenues.

He said Island Motors sold off all its motor vehicle inventory before offering them the deal which was brokered on the condition that Progressive Motors also retain and provide spare parts and servicing for the Daewoo brand.

When Daewoo went bankrupt, it was purchased by the American company General Motors, whose local agent is GM Challenger.

That brand has been reconverted to the Chevrolet brand, but many Daewoo vehicles remain in the local market for servicing.

Build own inventory

Panton will now have to build his own inventory of vehicles, which he said would include the 306 and 406 ranges of Peugeot.

Wednesday Business understands that Island Motors is in the process of sending out correspondence to its clients informing them of the closure, and an inside source added that salary payments were being finalised.

Island Motor's company was exclusive dealer for Peugeot motor vehicles and parts.