Dealer group Ghistelinck (Mercedes dealerships in West Flanders and the north of France) starts a partnership with United NRJ, owner of MIG Motors. It buys 50% of the shares of MIG Motors right now, and normally the other 50% of the shares will be purchased within the next five years.

MIG Motors represents nine dealers in East Flanders selling products of the VW Group. It sells VW, Seat, Cupra, Skoda, Audi, and VW Vans through nine dealerships in East Flanders: Ghent North, Ghent South, Aalter, Sint-Martens-Latem, Eke, Zwijnaarde, Lievegem, Evergem, and Wetteren.

550 million

The result of the partnership is that Ghistelink now represents a yearly turnover of €550 million, selling around 12 400 vehicles in total and employing 620 people in 20 settings.

Vicent Yserbyt, owner and CEO of Ghistelink Automotive, makes a surprising move by taking over dealerships of the VW Group. He also aims to secure the supply for other businesses like Luxauto and Top Rent Fleet Services. Both companies represent a car park of another 2 200 vehicles, of which some 1 100 are to be renewed every year.

Hubert Sigiez and Christel Lootens, the owners of United NRJ, are stressing that the rich experience of Vincent Yserbyt in the automotive sector is a significant gain for the MIG group and that it was the right move for further growth.

“We think it’s fantastic that two strong groups meet each other and are bundling forces to confront the challenges of the future in the sector,” both owners add.

Moving

The world of automotive dealers is in complete transformation. On the one side, you have the manufacturers trying to gain even more control of their distribution by installing a new ‘agency model’. Conversely, you see sizeable international dealer groups like Van Mossel, Hedin, and others taking over smaller dealers at a severe pace.

Larger regional dealer groups try to protect themselves by joining forces and withstand this international pressure. What will be the result, in the end, is still unclear. One thing is clear: the small regional car seller with one or two dealerships is bound to disappear. Only the big and strong will survive, and they also will have to adapt to a changing commercial environment where more and more is done online.