STARTING UP a motor business in 2010 mightn’t have seemed like the best idea in the world but John Kennedy’s faith in his own judgment has been rewarded thus far. “We’re very pleased with how things have gone in the first 10 months. We’re all in gainful employment, we’re paying the bills, we’re making a profit and we’re hopeful for the future,” says Kennedy, who opened John Kennedy Motors in Clonmel on January 11th last.
He had spent the previous 10 years working as manager of the Clonmel branch of the Tom Hogan Motor Group which ceased trading in June of 2009. “Within a couple of months of the business closing I started looking at the possibilities of setting up a new motor dealership in the town,” he says. “It may not have appeared to be the best time to start a business, and particularly a motor business, but I became convinced that there was the potential to establish a good, sustainable business in Clonmel.”
First, he set out to to get the Toyota franchise which his former employer had held in the town. “Toyota is an excellent premium brand and it is very popular and well thought of,” he says. “I went to Toyota and after extensive consultations I got the franchise shortly before Christmas.”
The next part of the jigsaw was the finance. “I have to say that Bank of Ireland Finance were a great help,” he says. “Without their help it wouldn’t have been possible to get the business up and running. No matter how big or small the dealership, a significant amount of finance is required and Bank of Ireland backed us.”
The final piece was the premises and he was able to move into the former Tom Hogan premises following talks with the liquidator of that company. “I had looked at other premises because I didn’t know if the premises here on Cashel Road would be available,” Kennedy recalls. “But we got agreement with the liquidator just before Christmas. That meant we had all our Ps and Qs together and we knew it was going to happen. We then worked very hard so we could have the doors open on January 11th.”
While most businesses would be pleased to open so early in the year, this is actually quite late by the standards of the motor trade. It meant the dealership lost out on all the pre-sales that would normally be done before Christmas in readiness for the change in the registration year on January 1st. “The first quarter is especially important for the motor business and we were a bit late in,” he admits. “But we got through it. We are delighted with how the first year has gone. We have had a lot of goodwill from the local people and this has been great. All areas of the business are doing quite well. Car sales get quite skinny towards the year end but we do parts and service as well and these areas of the business have held up well.”
He is reasonably optimistic in relation to the year ahead. “We are a new business and we have to be a bit enthusiastic about the future,” he explains. “But we have to take heed of what’s going on around us. Personally, I feel the general economic downturn we have all experienced hit the motor trade before everyone else and I think we might have our most difficult time behind us now. But it is important that the scrappage scheme is continued. If it is kept in place I would be reasonably happy that 2011 will turn out something similar to 2010 with total car sales in the country of around 85,000 or thereabouts.”
He is also quite confident about the prospects for his own business. “It’s early days yet but once we stay focused on serving our customers and keeping our costs under control we should be OK for the future.”
