d_ricardoI work in the motor industry, more specifically in the...

d_ricardo

I work in the motor industry, more specifically in the parts/aftermarket area and I'll give you my perspective on things

The company's business model is fairly sound as the market is extremely fragmented with the majority of businesses independently owned. I've looked through their business strategy and it's a sound one which I think will work for them in the long run - assuming they can create synergies within the business'. Applying a 'big business' mentality and expertise to these smaller companies they've bought should help profitability for each business

As for Mistubishi pulling out, the effect will be minimal. The 380 (which was built in Adelaide) barely sold 10,000 vehicles last year in which 1M vehicles were sold. The last 4 years have seen a huge increase in sales of vehicles, so I don't imagine

The overall economic slowdown will effect new vehicle sales, but there won't be a huge effect on how much people drive. Irrespective of the condition of the economy, you'll still drive your car so chances are, you'll have the potential to be involved in an accident. So their smash repair business should remain stable.

As for the other areas (accessories/LPG/diesel), the majority of these business' are based in WA and QLD where the mining boom will shelter from any slow down's in those states.

If you've made it this far, thanks for listening to my ramblings!