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Mechanical Llyod to
give up Land Rover franchise in November
Accra, Aug. 14, Ghanadot/GNA –
Mechanical Llyod Company, a Ghanaian auto importer and
dealer is giving up its franchise with British car maker
Land Rover at the end of November this year, its director
said on Wednesday.
Mr Terence Darko, Managing Director of MLC, told brokers at
the ‘Facts Behind the Figures’ series of the Ghana Stock
Exchange that the decision to stop marketing Land Rover was
as a result of low return on investment and competition from
cheaper vehicles.
“Land Rover is a premium and expensive vehicle and very
difficult to sell,” Mr Darko said.
He said MLC customers and shareholders, as well as Land
Rover had been informed about the decision.
Mr Darko said there were plans to take on Chinese-made
vehicles in response to demands from customers within the
lower income bracket.
He said the Company would be guided by its reputation and
performance of its flagship BMW and Ford vehicles in
choosing a robust Chinese manufactured vehicle to satisfy
the market.
Mechanical Llyod, which also distributes and markets farm
machinery, posted a 33 percent increase in profit before tax
in the first half of 2008 from GH¢900,000 to GH¢1.2 million.
Total assets also increased by 40 percent to GH¢22 million,
from GH¢15 million.
Mr Darko attributed the improved performance to increased
sales in Ford vehicles and the improving economy, making it
possible for Ghanaians to acquire new vehicles.
However, the market was still dominated by used cars, he
said.
Available figures show that about 8,000 new vehicles were
sold in 2007, compared with 25,000 used vehicles.
This notwithstanding, the records show that there is growing
sales of new vehicles due to the introduction of cheaper
brands from China and India.
Mr Darko said the company would continue to manage
operational cost and adopt strategies to increase sales and
double its turnover by 2012.
GNA
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