LDV importer wants MG too

Distribution of Chinese vehicles from MG and LDV would be twinned in a major assault on Australia if the country’s biggest independent auto importer gets its way.

The Ateco Goup is already making solid sales with LDV utes, vans and SUVs, and now it believes a joint import effort with MG’s growing line-up of SUVs and passenger cars under the one umbrella is the key to a big breakthrough Down Under.

MG and LDV are linked through their shared Chinese parent, the Shanghai Automotive Industry Corporation. SAIC is China’s largest motor group with sales of 6.93 million vehicles in 2017.

Distribution of its two brands, however, is entirely separate in Australia with MG operating as a direct factory-owned operation.

MG Motor Australia is not showing any enthusiasm for the plan, even if Ateco CEO Neville Crichton is fired-up about the potential of a joint deal.

“I think there will ultimately be a connection between us and MG,” Crichton revealed to motoring.com.au

“We have the product. The ownership is the same… Whether it’s a joint-venture or whatever, I’m not sure. We [Ateco] never stop talking to manufacturers.”

The Crichton plan is news to the general manager of MG Motor Australia, Peter Cao, who says his company is pushing ahead with its existing strategy and sees no need for change.

“Both MG and LDV businesses are forging ahead with an absolute common goal, and that is for LDV and MG to become strong household names within the highly competitive Australian automotive marketplace,” Cao stated.

“SAIC is firmly committed to its strategy in Australia, with both MG Motor and LDV performing well as independent brands,” he said.

“While MG and LDV are separate businesses, we have a good relationship and an open dialogue to ensure interests are met for both brands under the SAIC umbrella,” Cao explained.

Despite the denial, Cao admits MG is getting some rub-off from LDV.

“Working together, we’ve also found success through our dealership network. An increasing number of dealerships who have commenced working with one marque have then been attracted to on-board one of our other brands.

“We have expanded the MG network nationally, now with 16 dealer partners, and welcome more dealer partners to join us in the future.”

Crichton’s aggressive plan for Chinese brands is the latest chapter in a success story for the New Zealand auto entrepreneur that stretches over more than 30 years.

Crichton turned his attention to China after previous successes with Mazda and Suzuki from Japan, Kia from Korea, and a wide range of European brands from Audi to Citroen, Ferrari and now Maserati.

He is also the driving force behind the introduction of RAM pick-ups with a right-hand drive re-manufacturing operation that has just been extended with the three-model RAM 1500 range.

Ateco was an early Chinese adopter with Great Wall, but the import partnership came to an acrimonious end after a scandal over the use of asbestos in the vehicles.

“I have no doubt we could have turned Great Wall into another Kia. We could have done 20,000 a year,” Crichton told motoring.com.au.

“The Great Wall issue with asbestos cost a lot of confidence in the dealer network and with Chinese product. And probably our reputation got a little tarnished as well.

“So, to come out and launch another Chinese brand with LDV was quite difficult.”

Crichton forecasts solid sales growth for LDV, which was up by 178 per cent in May over 2017 off the back of the T60 ute and the growing acceptance of its vans.

“We see LDV as a major player. We’re doing over 500 a month. I’m not about to project volumes but we’ve got to get over 1000 a month. We’ve got 65 dealers and that will grow as the brand grows.”

Crichton is confident that Chinese brands can go well in Australia but says the key is getting the representation right.

“There are plenty of good Chinese cars, but there are not many good importers doing them,” he says.

“MG is starting to get a little traction, but the jury is still out. As far as Haval and Great Wall are concerned, there is nothing wrong with the product,” Crichton opined.