Pendragon secures deal with Korean car brand Genesis to be first retail partner in Yorkshire
Further building its Stratstone brand portfolio, which includes manufacturers such as Aston Martin, BMW and Mercedes, Pendragon will operate the Genesis Leeds, York, Sheffield market area from January 2024.
With the agreement signed last week, over the Genesis Scottish Open, the move will support Genesis’ expansion plans to grow capacity and capabilities for test drives, sales and service operations, ahead of further expansion into other European markets.
Bill Berman, chief executive officer of Pendragon PLC, said: “We are delighted to add Genesis to our Stratstone roster and be able to offer Pendragon customers another luxurious and sustainable brand from next year.
"As the fastest-growing luxury car brand in the world, we are looking forward to being an integral part of Genesis’ continued success and its plans to become an EV leader in the UK.”
Genesis arrived in the UK market just over two years ago.
The brand intends for all new Genesis vehicles to be “pure” electric from 2025, and is also “pursuing” the goal of becoming net zero by 2035.
Lawrence Hamilton, managing director for Genesis Motor Europe, said: “This is an exciting milestone for Genesis in the UK.
"Earlier this year, we announced we would be expanding the Genesis footprint and we are delighted to now have Pendragon on board who share our vision for the future.
“With Pendragon now officially part of the Genesis family from the start of 2024, it means we can deliver our unique Korean customer service directly to our new and existing customers in Leeds, York and Sheffield.”
Genesis also appointed six other retailers from across the UK.
Ancaster Group, Hendy Group, Arnold Clark, Holdcroft Group, Richmond Motor Group and Sinclair Group are also set to work with Genesis.
All expect to be operational by 2024.
The news comes shortly after Pendragon posted a trading update on its half year results for 2023, where the group indicated a “robust” performance.
The group said it expects to report a 9 per cent increase in underlying profits, up to £36.5 million, for the six months leading up to 30 June.
The group also experiences 18.3 per cent volume growth in new vehicles on a like-for-like basis.
Aftersales also performed well, with the group recording like-for-like gross profit growth of 14 per cent during the first half of the year.
The group’s dealer management software business, Pinewood, and its leasing business, Pendragon Vehicle Management, also performed strongly, with both delivering operating profit growth over 10 per cent.
In the group’s statement, Mr Berman said: “Pendragon has continued to perform well, demonstrating the continued success of our strategy.
"Increased sales across all divisions and higher profitability more than offset cost pressures, resulting in a strong cash position.
"While we expect high inflation and interest rates to persist in the second half of the year, our resilient model means we are well-placed to perform in line with Boards expectations.”
Pendragon also owns the Evans Halshaw and Stratstone brands.