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Annual report 2013

Car and machinery trade

The car and machinery trade consists of VV-Auto and Konekesko with their subsidiaries. VV-Auto is a company specialised in importing, retailing and providing after-sales service for cars manufactured by Volkswagen Group. Konekesko offers the products and services of the international machinery brands it represents in Finland and the Baltic countries.

VV-Auto

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 is also a major car retailer and provides after-sales service at its own outlets in the Greater Helsinki area and Turku. A comprehensive dealer and service network that covers all of Finland serves customers who have passenger cars or commercial vehicles imported by VV-Auto.

The Volkswagen, Audi and SEAT ranges expanded considerably over the course of 2014. New models launched included the Volkswagen full-electric e-up! and e-Golf, the Audi A3 Sportback g-tron and e-tron, and the SEAT Leon ST estate. For the fourth time in succession, Volkswagen was the best-selling passenger car brand in Finland. In 2014, Volkswagen was also number one in company registrations and the best-selling van. The best-selling car model in Finland and the most popular Volkswagen passenger car model was the Golf. Audi achieved the best result in its history in 2014 both in terms of market share and the number of cars sold.

Konekesko

Konekesko is a machinery trade company which focuses on the import, sales and after-sales service of construction, materials handling, environmental and agricultural machinery, trucks and buses, and recreational machinery. Konekesko operates in Finland, Estonia, Latvia, and Lithuania.

Konekesko's largest business area is agricultural machinery. The main brands in Finland are Massey Ferguson tractors and Claas combine harvesters. In the Baltic countries, the selection also includes Claas tractors.

Konekesko's sale of recreational machinery is based on close, long-term cooperation with Yamaha Motor Co. Ltd. and on its own strong boat brands Yamarin, Yamarin Cross, Suvi and Palta. The largest dealer network in Finland sells Yamaha recreational machinery. Yamaha has been the market leader in outboards since 1977 and maintained its position. Yamaha is also the market leader for motorcycles in Finland for the fifth year in succession.

In 2014, Konekesko launched five new Yamarin and Suvi boat models. Yamarin is the market leader in Norway, number two in Finland and number three in Sweden.

Konekesko’s principal brands in construction and materials handling machinery are Kobelco crawler excavators, Kubota mini excavators, Ponsse forestry machinery and Still forklift trucks. In Finland, Konekesko is also responsible for the sales and after-sales service of MAN trucks, and MAN and Neoplan buses. 

Competitive advantages in the car and machinery trade
  • International brands and strong market position
  • Versatile multi-channel services, expert staff
  • Strong sales and after-sales service network, efficient logistics
 

Did you know?

  • The new Volkswagen Passat won the esteemed European Car of the Year 2015 award; the selection was made by European car reporters. Car and traffic reporters chose the new Volkswagen Passat as the winner of The Car of the Year in Finland 2015 award; the Passat also won several reader votes.
  • The third-generation Audi A3, a compact premium model, won the esteemed World Car of the Year Award.
  • The Audi RS 7 concept car drove a lap at the Hockenheim race circuit at track speed without a driver. Audi’s driverless run was performed by sending highly accurate GPS signals via a wireless network to the car.
  • Konekesko launched an online store for heavy machinery spare parts and supplies in all of its operating countries.
  • Yamarin Cross 75 Bow Rider won the European Best of Boats 2014 Competition in the ‘Best for Fun’ category.
 

Strategic emphases
Strategic objective Achieved in 2014 What next
 VV-Auto    
The best customer experience in the sector. Positive development in customer satisfaction and new digital services. Further development of customer loyalty, customer programmes and multi-channel services.
Sales growth. Market share: 20.7% (Audi, SEAT, Volkswagen passenger cars and commercial vehicles). New, more advanced car models.
Efficiency of operations. Harmonisation and increased efficiency of processes. Customer programmes and targeted marketing will be increased.
Constant competence development. Modification of the operations and premises of the service school. Focus on customer service and training in sales and after-sales service.
Konekesko    
Strengthening own brands (recreational machinery). Market share: 20.3% (Yamarin + Suvi). New models.
Maintaining the strong position in the combine harvester trade. Market share of Claas combine harvesters: 34.2%. Maintaining the strong position.

 Market
  • In 2014, 106,236 passenger cars and 10,624 vans were registered for the first time in Finland. The passenger car market increased by 2.7% and the van market by 2.1% from the previous year.
  • Volkswagen was the most registered brand in Finland in the registration statistics of both passenger cars and vans. The total number of registrations of vehicles imported by VV-Auto was 24,019.
  • The total market for Konekesko's product areas was €1,200 million in Finland and €230 million in the Baltic countries (Kesko’s own estimate).
Market shares

Car trade, Finland

  • VV-Auto’s market share 20.7% (Volkswagen, Audi and SEAT passenger cars, and Volkswagen commercial vehicles)
  • Volkswagen passenger cars 12.3%
  • Audi 6.0%
  • SEAT 1.7%
  • Volkswagen commercial vehicles 28.0%

Machinery trade, Finland

  • Outboards* 44% (Yamaha)
  • Boats* 21% (Yamarin, Suvi)
  • Motorcycles* 18.9% (Yamaha)
  • Tractors* 10.4% (Massey Ferguson)
  • Trucks*, over 6 tonnes, 2.3% (MAN)
  • Light transportation trailers < 750 kg 16.8% (Muuli)

* registered


Car and machinery trade in figures
 

Number

Sales (VAT 0%),

€ million

Retail sales and number of stores

2014

2013

2014

2013

VV-Auto, retail outlets

10

10

389

381

VV-Auto, imports

   

387

382

Konekesko, Finland

1

1

161

177

Finland, total

11

11

936

940

Konekesko, Estonia

   

35

36

Konekesko, Latvia

   

41

47

Konekesko, Lithuania

   

24

37

Konekesko, Baltic countries, total

   

101

119

Car and machinery trade, total

11

11

1,037

1,059

         

Car and machinery trade, key figures

   

2014

2013

Net sales

 

€ million

1,011

1,037

Operating profit

 

€ million

29.4

33.9

Operating profit excl. non-recurring items

 

€ million

29.6

33.9

Operating profit excl. non-recurring items as % of net sales

 

%

2.9

3.3

Capital expenditure

 

€ million

14

15

Capital employed

 

€ million

162

161

Return on capital employed excl. non-recurring items

 

%

18.3

21.1

Personnel average

   

1,244

1,252

         

Properties

   

2014

2013

Owned properties, capital

 

€ million

68

67

Owned properties, area

 

1,000 m²

71

68

Leased properties, lease liabilities

 

€ million

20

22

Leased properties, area

 

1,000 m²

35

35

         
 
       

CASE: VV-AUTO GROUP RECYCLES NEARLY 100% OF ITS WASTE

 

Reducing the amount of waste in stores and warehouses is highly beneficial to the environment. Nearly all of the waste generated by VV-Auto Group Oy is recycled: the waste recovery rate in the group’s premises is as high as 99.83%.

”We recycle all waste as a rule. In the car sector, there are many different waste components – timber, metal, batteries, glass, plastic and tyres – for which there is a recycling system available. We dispose of all hazardous waste properly. 100% of all of the used lubricating oil we collect is recycled,” says Harri Jyränkö, Development Manager for VV-Autotalot.

VV-Auto Group Oy’s German principal, Volkswagen Group, takes responsibility for the environment and makes sure that no unnecessary packaging waste is generated from deliveries. Increasingly often, spare parts and supplies come to Finland in reusable boxes or cages, which are returned empty to the central warehouse in Sweden.

“Many waste components, such as metal, have a high reuse value, which means that correct segregation will benefit us financially. We have a good partnership with our environmental maintenance company and we audit all of our premises annually. Waste transportation has been optimised and is cost-efficient. The waste presses on all of our premises are remotely monitored and they send emptying requests whenever needed,” says Harri Jyränkö.


VV-Auto Oy will participate in the scrapping bonus experiment organised by the Finnish Transport Safety Agency Trafi from 1 July to 31 December 2015. The aim of the experiment is to decrease the average age of the Finnish car stock, which is old by European terms, so as to have more environmentally friendly, safe cars on our roads. In order to receive a scrapping bonus, car owners must take their old cars to an official reception point for scrapping and receive a scrapping certificate to be presented at car dealers. The scrapping bonus will then be deducted directly from the price of a new car.