■ MG Austria's "Rising Star of the Year"

By: Mag. Heinz Müller Auto&Wirtschaft, translation AutoNews24

■ It happened incredibly quickly: MG has been named "Rising Star of the Year" in just its second year of participation. In a conversation with outgoing managing director Andreas Kostelecky, MBA, he reflects on this achievement.

MG has only recently joined the industry and has already earned the title of "Rising Star of the Year," securing third place among small brands. Were you surprised by this success?

■ Surprised by this success?

Andreas Kostelecky: That's an enormous achievement and truly exciting! Starting a new brand comes with unavoidable challenges. It also takes courage for a dealer to partner with a new brand. When dealers are accustomed to everything being well organised in their interactions with established brands, they naturally expect the same level of organisation from the newcomer.

■ Kostelecky: The continuity within our team has certainly contributed to our positive results, as we only replaced one key position. I also had the opportunity to familiarize myself with many dealers during my time as managing director at Mitsubishi. Our products are consistently improving, which is what dealers expect. You can now see how broad our offerings are becoming.

■ Seventy percent of MG dealers anticipate an increase in new car sales over the next 12 months, the second-highest expectation after Dacia.

Kostelecky: It’s worth noting that MG is moving in a direction with its lineup that makes dealers feel comfortable, and there is less resentment towards electromobility—specifically with full hybrids and plug-in hybrids.

■ Is it an advantage to start from scratch?

Kostelecky: The advantage is that we don’t carry a negative history, such as previous corrosion issues. We can operate freely and exchange vehicles from different manufacturers. Dealers receive classic used cars, ranging from small cars to the C segment, which sell very well.

Fifty-three percent of dealers expect an increase in return on sales—higher than anywhere else.

■ Will these dreams become a reality?

Kostelecky: You need to evaluate two key areas: sales and after-sales. In terms of sales, we have more opportunities because of our broader range. For after-sales, we’re transitioning from being a purely electric brand to offering cars where you can fill the oil as well. Every dealer appreciates this! Additionally, the 7-year warranty—which includes cars from 2020—ensures loyalty to the workshops.

■ What does an MG contract look like? MG is currently ranked fifth among all brands in terms of recommendations.

Kostelecky: Our contracts are based on the knowledge gained from the old contracts we set up at Mitsubishi. They are simple and straightforward. A significant factor is: What do I specify? How do I meet the standards? We have been very solution-oriented.

In seven instances, MG ranks as the best brand overall, particularly in the importer’s sales promotions.

Kostelecky: We started with a net pricing system, where we did not have any sales promotions. This year, we have focused on several areas, including offering special interest rates and sales bonuses and trying to secure residual value guarantees.

■ Dealers and workshops rate the scope and costs of audits exceptionally positively. Why is that?

Kostelecky: This is likely due to our fresh start. Initially, you have different issues to address. However, as we grow, the manufacturer will certainly expect more from us. The key lies in the point of sale, where customer performance is evaluated. When you reach a certain size, success should no longer be by chance.

MG is also number one in alternative drives.

Kostelecky: This achievement is intrinsic to the brand. As importers and wholesalers, we depend on what the manufacturer provides, and then we introduce those products to the market.

Given your long-standing relationship with your team, it is not surprising that you receive top marks for personal contact with the importer's management.

Kostelecky: There are very straightforward reasons for this: We are accessible, and I don’t take it personally when a salesperson calls me with questions. I learn something from every single conversation. Our close relationship with the trade is valuable and part of our culture. However, success is not just an individual accomplishment; what truly matters is that the entire team operates cohesively!

Source: Auto&Wirtschaft

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