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.