Expansion sees car dealer's turnover soar

Hodgson Newcastle, which recently opened a £5m Toyota dealership at the MetroCentre, Gateshead, is to plough a further £2.5m into the site and add two more franchises.

Steve Hodgson, who set up the company's main site at Silverlink, North Tyneside, in 1992, said the investment reflected a period of major growth and expansion.

The new and used cars dealership has seen its turnover climb year-on-year from £2m in 1992 to £54.1m in 2005, while profits have jumped from £100,000 to more than £1m.

Mr Hodgson, group managing director, said: "Over the past ten years, we have continually re- invested in the group, its people and facilities and the way we do business.

"We couldn't fit any more into our Silverlink site. Therefore, to grow, our only option was to go south of the Tyne and give people a chance to see what we are about from a new site."

The firm opened its £5m Toyota dealership at the MetroCentre in September, increasing its workforce to 134.

In its first month, the dealership sold 160 cars, giving the company an 11 per cent market share.

The two-acre site has room for further development and Mr Hodgson said the company will invest £2.5m to add another two franchises.

Hodgson Newcastle has seen sales increase thirteenfold since 1992 and now sells more than 4,500 cars every year.

"Nationally, new car sales slowed down by 13 per cent in January, but we are bucking the trend and sales are on a par with last year and the year before," said Mr Hodgson.

"I think the reason for this is because we are not continually having to find new customers - we have a rich core of repeat business. People come back time and time again."

Hodgson Newcastle's four-and-a-half-acre Silverlink site houses Mazda, Toyota and Suzuki dealerships.

The site has held the number one spot for selling Mazda cars for the past ten years - outselling Mazda's national average on all models.

Its sales of Mazda 3 and MX-5 are the best in the UK.