Arnold Clark in takeover talks with Ness Motors

Independent and long-established Inverness garage and car dealership Ness Motors is in negotiation with Arnold Clark regarding a takeover bid from the giant motor firm.

Arnold Clark, Europe’s largest privately owned dealer, with seven outlets in Inverness, would only say this week it was in talks with Ness Motors’ chairman Scott Lauder.

Staff received letters from the company earlier this week confirming the move but it is understood a deal had not been agreed by Wednesday evening, with Arnold Clark saying there would be no news yesterday. Ness Motors did not return any calls from The Inverness Courier asking for a comment,

It is thought the takeover will be of the whole group, based in Harbour Road but with dealerships in Elgin and Perth and employing an estimated 107 staff.

"It’s always sad to see another long-established independent being swallowed up by a large group, but it is a sign of the times," said The Inverness Courier’s Motorsnorth editor David Morgan.

"Competition is tough in the motor trade and it comes down to the survival of the fittest. Large groups with national coverage benefit by having powerful negotiating power with manufacturers which helps them deliver good showroom value, but often at the expense of the personal touch.

"What is key to the success of any motor trade outlet in the Highlands is having staff who know the area and the preferences of their customer base. That’s why large groups would do well to retain as much local staff as possible after any takeover."

In September last year, Ness Motors, the Citroen and Renault franchised dealership, reported a near 30 per cent dip in annual pre-tax profits in 2013 despite sales rising nearly 16 per cent to £47.4 million.

Arnold Clark sells in excess of 200,000 vehicles per year and generates an annual turnover of over £1.5 billion.

In August last year it completed the takeover of another Inverness car dealer, Calterdon BMW and Mini in Harbour Road under the name Harry Fairbairn, Arnold Clark’s BMW and Mini sales arm.

Dealership history

NESS Motors was formed in 1960 and in 1971 it acquired the Renault franchise for the North of Scotland. Mr Lauder joined the company in 1972 as the company accountant and 10 years later purchased it from the retiring owner and chairman Bill Gilbert.

In 1998 it moved from its original premises in Telford Street to a purpose built facility on Harbour Road. In 1986 the Renault franchise for Moray and Banffshire was attained, with a showroom opening in Elgin.

The company expanded in 2006 with the takeover of Inveralmond, the Renault dealership in Perth.

In January 2010 it acquired the Citroen territory for the Highlands and Islands to become the main dealer for the area with the Citroen showroom also in Harbour Road. A year later Saab became the company’s first prestige marque covering the Highlands and Morayshire.

There was further expansion in July 2012 with the addition of SsangYong, the Korean 4x4 and people carrier manufacturer. The company also deals in Dacia, a brand of the Renault Group.

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