BUSI­NESS LES­SONS

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE -

Lis­ten more and be cu­ri­ous about ev­ery­thing. guar­an­teed min­i­mum fu­ture value and the mar­ket value of the old car to­wards a new de­posit. This as­sumes that the value of the car will be higher than the guar­an­teed min­i­mum value.

Both the Cen­tral Bank and the CCPC have raised con­cerns about the way in which the loans are sold and in­deed the mar­ket’s ex­po­sure to in­ter­na­tional risks, such as a dive in ster­ling.

Ear­lier in the year Toy­ota parted ways with Bank of Ire­land as its fi­nan­cial provider, in­stead en­ter­ing a joint ven­ture with Toy­ota Fi­nan­cial Ser­vices. This gave it the mus­cle to com­pete with other man­u­fac­tur­ers such as Volk­swa­gen and Re­nault, which boast their own in­ter­na­tional banks.

“It will be more dif­fi­cult for the likes of Bank of Ire­land to com­pete on new car sales. I think you’ll find that more of the brand-owned banks will pre­vail in the fu­ture,” Tormey says.

“I think PCPS are be­ing sold re­spon­si­bly. I know that’s def­i­nitely the case with our sit­u­a­tion. We’re not sell­ing in a way that the cus­tomer doesn’t un­der­stand what the prod­uct is. You have to be care­ful with the resid­u­als you guar­an­tee in the fu­ture.”

The Toy­ota chief, who has been head­ing up the busi­ness for just un­der four years now, did high­light po­ten­tial prob­lems with the early PCP deals. He said that due to the di­rec­tion in which diesel has moved, nu­mer­ous brands and deal­ers may have given too high a guar­an­teed min­i­mum value on their deals.

“Hy­po­thet­i­cally, if Toy­ota con­tin­ued sell­ing diesels into 2019 and we had to price what that car would be worth in 2022, the resid­ual value we would write would be sig­nif­i­cantly lower be­cause we don’t be­lieve that there will be value left in that car, but that’s just us,” he says.

In 2010, he spent two months in Har­vard, do­ing a two-month ex­ec­u­tive ed­u­ca­tion course, one he dubbed a “con­densed MBA”.

The course fol­lowed shortly af­ter the “scary time” in 2009, where he was hit with a dou­ble-blow of an eco­nomic crash and a rapid re­duc­tion in the value of his fleet.

Tormey main­tains that those days are now be­hind him and while the fu­ture is laden with chal­lenges, his ex­cite­ment about the in­dus­try is clear.

While there is plenty of chat­ter about elec­tric ve­hi­cles and Ire­land’s readi­ness for them, he’s al­ready moved onto the next big thing — hy­dro­gen, a fuel type that pro­duces noth­ing other than wa­ter from the ex­haust pipe.

As Tormey says, the mo­tor in­dus­try is a busi­ness that is al­ways chang­ing.

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