BMW dealership powers up

By COLIN TAYLOR

New Zealand's longest-established BMW dealer, Team McMillan BMW, is undertaking a $10 million expansion involving an upgrade for its Newmarket headquarters and a new building at Botany Downs.

The $4 million revamp of the company's 3635sq m main building at 7-9 Great South Rd will give the frontage of the white-painted brick building the same distinctive aluminium and glass appearance as its BMW and Mini showroom in the former Firestone building at 11 Great South Rd, on the opposite corner of Margot St.

The 4193sq m Firestone building was leased by Team McMillan BMW after the company was granted the franchise for the modern range of Mini cars in August 2000.

"Expansion at the Newmarket site will create a bigger showroom, an expanded accessory sales area and more spacious customer service lounge," said Bob McMillan.

"We will more than double our vehicle and service volumes through the expanded facilities in Newmarket and with the addition of a full dealership facility in Botany Downs."

The 322sq m Newmarket expansion will create space for up to 12 new BMW vehicles. Sales staff offices will shift to a mezzanine floor overlooking the extended showroom.

Consents for the Newmarket project have been gained and the nine-month reconstruction will begin next month. The company will soon move its administration, servicing and accessories functions across the road.

"In preparation for the expansion project, the first floor of the Mini/BMW building is being altered to house administration and other functions and to provide extra carparking during the expansion," McMillan said.

"It is also being upgraded to house a cafeteria capable of servicing the company's 90 staff and to provide an additional 60 parks for the servicing operation."

Team McMillan BMW originally occupied its headquarters building in November 1989 with a staff of just 30.

A major new feature of the restructured head office building will be the installation of a Kardex parts system, the first in Australasia, which will free up 82 per cent of the 300sq m space now required for parts warehousing. The system allows for car parts and accessories to be stored in a mechanised vertical shelving column that can be accessed using a computer.

The Kardex shuttle will occupy a floor space of only 4m by 4m.

Stock control is automated and the system provides fast and accurate "parts picking". The parts business is projected to grow from $7 million a year to $10 million by 2008.

Asked why the company was renovating its Newmarket buildings instead of moving to an area where real estate was less expensive, McMillan said: "We can't afford to move out of Newmarket".

"This section of Great South Rd has become the focal point for car dealerships in the top end of the car market, like Porsche, Mercedes Benz, Jeep, Audi, Alfa Romeo, Ferrari and Maserati.

"It's where Aucklanders know to come when they're considering buying a European or luxury vehicle."

The $6.5 million two-storey Botany Downs project, due to start next year, will involve the construction of a 3335sq m sales, service and specialist paint and panelling facility on almost 1ha of vacant land on the corner of Te Irirangi and Accent Drives.

"BMW will be the first luxury brand to establish representation in this rapidly expanding area of Auckland," McMillan said.

"The Eastern Corridor area is the fastest-growing sub-region of Auckland with a higher household worth than similar, but slower growing socio-economic suburban areas.

"Our move into the eastern suburbs follows surveys which show that 30 per cent of our service clients live in that part of Auckland.

"The new Botany building will enable us to better serve the needs of those customers closer to home and to gain access to significant potential business which we believe is waiting there for us."

The new dealership will feature an eight-vehicle BMW showroom and three-car Mini showroom, along with space for some 50 used vehicles.

"There will be a 10-vehicle service workshop and an attached 32-bay specialist panel and paint facility operated by an established specialist in European car repairs."

McMillan said the company's major expansion projects reflected continuing confidence in the growth in high-class vehicle sales, with BMW New Zealand currently holding 25 per cent of the luxury car market.

His company has an annual turnover in excess of $100 million and sells more than 1200 new and used vehicles a year.

Third-quarter figures show that new-car sales are up more than 15 per cent over the same period last year, and sales for next year are projected at 1400 and 1500 cars.

McMillan said the expansion could not happen soon enough, with four new BMW models launched this year and the new Mini Cooper and Cooper S convertible models due to arrive at the end of the year.

"We're bracing for continued growth in the vicinity of 20 to 30 per cent for each of the next two years," he said.

McMillan bought Johnstone BMW in December 1985 when it had 17 staff.

He expects to have more than 100 employees after the expansion.