Frontpage Divisions Car and machinery trade

Car and machinery trade

The car and machinery trade consists of VV-Auto and Konekesko with their subsidiaries. VV-Auto and Konekesko represent the leading brands in the sector and are responsible for their sales and after-sales services.

VV-Auto imports and markets Volkswagen, Audi and Seat passenger cars, and Volkswagen commercial vehicles in Finland. It also imports and markets Seat passenger cars in Estonia and Latvia. VV-Auto also retails cars and provides after-sales services at its own outlets in the Greater Helsinki area and Turku.

Konekesko is a service company specialising in the import and sale of construction, materials handling, environmental and agricultural machinery, trucks and buses, and recreational machinery. Konekesko operates in Finland, Estonia, Latvia, Lithuania and Russia.

VV-Auto set all-time sales record

The combined market share of VV-Auto's new passenger cars and vans reached a new record: 20.7%. The number of registrations of vehicles imported by VV-Auto was about 29,000, which was an all-time high also in terms of number.

Customers with Volkswagen passenger cars are served by a network of 40 dealer shops and 58 service workshops, while there are 41 dealer shops and 59 service workshops for Volkswagen commercial vehicles. The corresponding figures for Audis are 21 and 25. Seats are sold by 22 dealers and maintained and repaired by 35 workshops in Finland and four in the Baltic countries

Volkswagen's new repair workshop concept, Direct Express, was launched in late 2011. The workshop specialises in fast repairs and exchange of wear parts in vehicles older than five years. The first workshop was opened in Otaniemi, Espoo. The next repair workshops will be opened in Jyväskylä and Oulu.

Audi opened a new type of showroom in the Kluuvi shopping centre in Helsinki for three months, which enabled new car models to be displayed in the city centre.

The openings of the construction projects initiated in 2010 – the new Volkswagen Center in Espoo and the expanded and renovated Volkswagen Center in Turku – will take place in spring 2012.

The Volkswagen range was well complemented over the year. New models on the market included the new Jetta, the revised Tiguan and the Golf GTI celebration model. The Volkswagen DemoTour offered motorists a chance to test drive a new Golf Cabriolet convertible and Beetle. Volkswagen Commercial Vehicles launched a new Amarok pick-up and a revised Crafter. Audi launches included the revised Audi A5 and Audi A6 range, and Audi Q3. Towards the end of the year, Audi also transferred to the hybrid era by introducing Audi Q5 Hybrid. Seat's offering of the year was the Seat Alhambra family car.

Konekesko's versatile selections

Konekesko's sale of recreational machinery is based on close, long-term cooperation with Yamaha Motor Co. Ltd. Konekesko imports and sells Yamaha motorcycles, mopeds, ATVs, snowmobiles, outboards, generators and PWCs through its network of Yamaha dealers. Konekesko's own boat brands are Yamarin, Yamarin Cross and Suvi. In addition, Konekesko sells Linder and Zodiac boats and, since summer 2011, also TG boats. Yamarin and Suvi boats are made in Finland and imported to several European countries and Russia. During the 2011 season, Konekesko launched eight new boat models of its own.

Konekesko's range of Muuli trailers is complemented with Saris trailers for professional use, the sales of which was transferred to Konekesko in October 2011.

Construction, materials handling and environmental machinery is marketed in Finland, the Baltic countries and St. Petersburg through Konekesko's own dealer network. The best-known product brands represented by Konekesko are New Holland, Case, Kubota, Manitou, Sennebogen, Grove and Still. Sales of Weidemann wheel loaders started during the 2011 season. In the Baltic countries, Konekesko also represents Ponsse forestry machinery and Dynapac asphalt rollers and pavers.

The main brands in Konekesko's agricultural machinery sales in Finland are Claas combines and Massey Ferguson tractors. In the Baltic countries, the selection also includes Claas tractors and a comprehensive range of agricultural implements, the most important of which are Claas, Lemken and Hardi. Konekesko and Claas have gained the position of market leader in the Baltic combine business.

Konekesko is also responsible for the sales and after-sales services of MAN trucks, and MAN and Neoplan buses in Finland.

Service training ensures top service

Konekesko's special focus in 2011 was on the comprehensive service network and the training of service personnel.

In 2011, Konekesko organised, in cooperation with the TTS Work Efficiency Institute, a six-month trainee programme, which produced agricultural machinery mechanics for Konekesko's own service outlets and service entrepreneur network.

Konekesko's Marine service unit has been training mechanics in accordance with the worldwide YTA (Yamaha Technical Academy) programme for four years now. There are currently about 160 mechanics in Finland who have completed the programme.

Konekesko has expanded its spare part and on-call service during the agricultural season in all its business areas. The spare part network consists of 17 full-service K-spare part stores complemented with 30 K-maatalous outlets, which have service and wear parts available. Spare parts for environmental and construction machinery are now also available from all K-spare part stores, while warehousing was previously centralised in Vantaa premises.

Konekesko expanded its contract service model to the Baltic countries, where the first contract service providers started operations under Konekesko's guidance in 2011.

10 years of Konekesko

Konekesko Ltd celebrated its 10th anniversary as an independent company in autumn 2011, but Kesko has been in the machinery business since 1945. Konekesko's most long-standing representations include Allison gears and Yamaha outboards.

The most sought-after brands and strong service network

Strengths in the car and machinery trade include internationally known brands, a wide and high-quality product range, and expert staff. Strengths also include versatile services, a strong sales and after-sales services network, efficient logistics, and an own chain of retail outlets in the car trade.

The objectives of the car and machinery trade for 2012 include increasing the market share of the brands it represents, further developing the dealer and maintenance network, and strengthening customer satisfaction and loyalty. The main areas of improvement will be expanding the selection of products and services and increasing electronic customer communications.

The car and machinery market is expected to start to decline in 2012; a contributing factor will be the upcoming car tax increase in Finland on 1 April 2012.

Car and machinery trade market

In 2011, 126,123 passenger cars and 14,491 vans were registered in Finland.

The passenger car market grew by 12.6% and the van market by 31.2% from the previous year. Volkswagen became the number one brand in the registration statistics of both passenger cars and vans. Audi continued as the number one premium brand. Seat's market share increased from the previous year.

The market for recreational machinery totalled about €300 million in Finland and remained at the level of the previous year. The export market for boats declined. The market for construction machinery totalled around €800 million in the operating area and increased by approximately 60%. The combined market for agricultural machinery in Finland and the Baltic countries was about €630 million, representing an increase of 20%. The market for trucks (weight class of over 6 tons) was approximately €590 million and grew by 17% from the previous year.

 

Operating environment

Car trade market shares in Finland

Machinery trade market shares in Finland

Boats, market share 18.9% (Yamarin, Suvi, Linder, TG, Zodiac, Palta and Capelli)

Motorcycles, market share 16.5% (Yamaha)

Mopeds, market share 7.9% (Yamaha)

Tractors, market share 13.7% (Massey Ferguson)

Trucks, over 6 tons, market share 5.8% (MAN)

K-Group's car and machinery trade, number of stores, and retail and B2B sales	Number		Sales, (VAT 0%) € million
	2011	2010	2011	2010
VV-Auto, retail outlets	9	9	422	339
VV-Auto, imports	1	1	447	349
Konekesko, Finland	2	2	217	193
Finland, total	12	12	1,086	881
Konekesko, Estonia			32	29
Konekesko, Latvia			42	40
Konekesko, Lithuania			41	28
Konekesko, Baltic countries, total			114	97
Car and machinery trade, total	12	12	1,200	978
Car and machinery trade segment’s key figures			2011	2010
Net sales		€ million	1,174	955
Operating profit		€ million	51.9	33.9
Operating profit excl. non-recurring items		€ million	51.8	33.1
Operating profit as % of net sales excl. non-recurring items		%	4.4	3.5
Capital expenditure		€ million	29.9	17.8
Return on capital employed* excl. non-recurring items		%	32.8	19.6
Personnel average			1,206	1,138
* cumulative average
Car and machinery trade segment's net sales in 2011			€ million	Change, %
VV-Auto			849	27.0
Konekesko, Finland			219	13.3
Konekesko, Baltic countries			111	14.7
Total			1,174	23.0
Car and machinery trade segment’s capital employed at 31 December, € million			2011	2010
Non-current assets			94	84
Inventories			223	165
Short-term receivables			74	58
./. Non-interest-bearing debt			-163	-130
./. Provisions			-18	-14
Capital employed**			210	163
** capital employed at the end of financial year

Key flag to Yamarin Cross boats

In January 2011, the Key Flag symbol of the Association for Finnish Work was awarded to the aluminium-hull Yamarin Cross boat models launched on the market in 2010. The symbol indicates that the product has been manufactured or the service produced in Finland.