Ooh la la
Richard Davidge will be moving his business up a gear in 2003. The owner of EuroCars Limited is building a new showroom, diversifying into motorbikes and bringing the first Renault trucks to Bermuda.
As sole agents for Renault, EuroCars did a roaring trade in 2002.
The French cars have become big favourites in the Bermuda and now make up at least 12 percent of the new car market.
“Renault are over the moon,” says Mr. Davidge.
In Europe, the Renault Clio became a household name due to one of the most successful TV advertising campaigns of the 90s.
The advertisement featured a father and his tres chic daughter, Nicole, who share the same car, each going off in the Clio on their various escapades.
In 1994, a survey found that Nicole was more readily recognised by Britons than the Prime Minister John Major.
So is it the classy, French image that has won appeal with Bermudians?
“Actually, we have not used any TV advertising”, says Mr. Davidge. “But I would like to meet Nicole,” he adds.
Sales have been impressive without Nicole's assistance. EuroCars sold over 260 cars in 2002, 30 percent up from the previous year.
Asked whether he has ever been summoned to Renault seminars on selling techniques, Mr. Davidge smiles: “They did try to tell us how to sell Renaults once, but I told them, ‘That's not how you sell cars in Bermuda'.”
He attributes the company's success to a simple formula: “Give the customer what they want, give them a good price and a sales back-up second to none.”
In addition to Mr. Davidge and his wife, Stephanie, who handles the office administration and book-keeping side of the business, EuroCars have three sales staff and a fully staffed service centre of five mechanics. The head mechanic, Tim Astley, has been working for Renault for over twenty years and is Renault certified and trained.
The youngest mechanic is a Bermudian who is currently working on his City and Guilds and will eventually be sent overseas to receive Renault training.
Mr. Davidge says that the relationship with Renault started six years ago. “We were on our way to Silverstone Day for my 40th birthday, and my wife convinced me to go to Paris to see if we could get the agency agreement,” recalls Mr. Davidge.
A year of negotiations with the French company ensued. One of the conditions of the contract was that EuroCars would sell only Renault cars.
According to Mr. Davidge, this arrangement has its highs and lows.
“The good side is tighter control of the inventory and constantly dealing with one group that know your needs.”
“Because we have done so well in Bermuda, Renault have been very supportive of our back-up service.”
But in one respect, there is a cloud on the horizon. Renault will soon be introducing changes to their range of vehicles. Whereas in the rest of the world “bigger” means “better”, in Bermuda increases to the dimensions of the Renault vehicles may take them outside local size restrictions.
The result may be that fewer Renault vehicles are eligible to be imported to Bermuda - leaving only their small cars for EuroCars to sell.
Mr. Davidge is waiting to find out whether Government will approve an amendment to the Motor Car Act which will allow larger vehicles in Bermuda. The bill, apparently due to be debated in the last session of Parliament, has not yet been brought before Parliament.
“If the changes don't come by 2004, we will lose four vehicles,” says Mr. Davidge. Of the current range of Clio, Coupe, Cabriolets and Kangu cars, he already knows that the new Megane Hatch and the new Megane Coupe will be too wide for Bermuda.
Unlike other dealerships such as HWP, he will not be able to diversify his selection of cars by bringing in different makes and it may become difficult to compete in the Bermuda market with a reduced range of vehicles. At the moment, it's a case of “wait and see”.
So the diversification into trucks may come at a good time. According to Mr. Davidge, the introduction of extra choice will be welcome; most of the trucks in Bermuda are Japanese-made and EuroCars will be the first to introduce European manufactured trucks. Strictly speaking, there are already a lot of Renault-made trucks on the Island, says Mr. Davidge. He explains that Renault owns the US Mack brand which is popular here. But this will be the first time that trucks with the Renault logo are brought to the Island.
One of his customers has already purchased four tanker trucks. While most of the trucks will be special orders, surprisingly, Mr. Davidge intends to tempt further buyers by putting a couple of trucks on display in his new showroom.
Whether he will allow customers to test-drive them, remains to be seen.
Mr. Davidge was formerly in the printing business and still owns Triangle Press. Asked how he originally got into cars, he says he always enjoyed tinkering with car engines. He started to think about a car business about eight years ago.
At the time, no-one on the Island was bringing in Renaults and Mr. Davidge and his wife decided to seize the opportunity.
It was no picnic: “We had to finance ourselves, which was difficult,” says Mr. Davidge.
It has also meant 60-70 hour weeks.
“My wife and I have both worked hard.”
Another challenge has been trying to find the right staff and support staff: “In most instances we have been successful.”
There has been a lot to learn: “People think that this is easy, but it's not.” The car trade in Bermuda has specific issues, such as the finding vehicles whose engines suit the short distances travelled. Apparently it can be detrimental to certain types of engines if they never heat up beyond a certain level.
A further issue is the shortage of right-hand-drive vehicles. “To get a right-hand drive US car is almost impossible,” says Mr. Davidge.
He says that left-hand drive US vehicles are starting to appear in Bermuda, however.
“Personally speaking I don't think it's a good thing for the Island,” he says, pointing out that on our roads, left-hand drive vehicles have a large blind spot. A person driving a left-hand drive vehicle cannot see round a bus while overtaking, for example.
Comparing the car trade to printing, he concludes: “It's more profitable,” adding that there is something enjoyable about selling “big ticket items”.
They like to make the purchase a special occasion by giving flowers to the ladies and presenting the men with a cleaning kit.
As for whether his customers tend to be males or females, Mr. Davidge says: “Mostly it's a couple's decision.” After five years in the car business, Mr. Davidge still does not come across as a typical car salesman. For one thing, he's in the habit of giving away cars.
EuroCars supports two charitable golf tournaments. For the Blackie Talbot Foundation, they donate one car and give another at cost.
Mr. Davidge is also involved in a tournament which supports Bermuda Riding for the Disabled and provides a “hole in one car”, which means that if anyone gets a hole-in-one, they win a Renault.
“It could happen one day,” he says. Not one to lose a sales opportunity, however, Mr. Davidge tells The Royal Gazette photographer who has been sizing up one of the Renault Kangus during our interview, “Come back and I'll give you a good deal.”