The GC Avtodom and the GC AutoSpecCentre unite the management cluster

Top Quote The group of companies AVTODOM and the group of companies AutoSpecCenter made a decision to merge management companies and administrative divisions into a single management cluster in the summer of 2021. End Quote
  • (1888PressRelease) July 27, 2021 - Holdings plan to reduce costs for the development and implementation of new technology projects and scale the best business practices to both companies due to the synergy effect and modernization of the architecture of operational processes.

    The merging of the control cluster will primarily affect the administrative functions. Among them: the development and implementation of a new DMS platform, the use of new technologies and tools in marketing, such as the launch of the CDP system, the consolidation of the work of the departments of financial services and used cars.

    «AutoSpecCenter and AVTODOM remain autonomous, legally separate companies with their own organizational structure. This does not mean a complete merger of holdings. First of all the synergy of management teams is aimed to reducing costs, automating operational processes and introducing new advanced technologies into the marketing and IT infrastructure of holdings, – commented Andrey Olkhovsky, General Director of the group of companies Avtodom. – We plan to issue bonds and raise public funding in the near future. We need to be at the forefront of the most modern business trends in order to successfully develop in this direction».

    The introduction of a new comprehensive auto business management system will create a single information space. The DMS platform will help to logically link and automate business processes: sales of cars, spare parts, after-sales services, and promptly collect centralized reporting in all areas.

    The general trend towards digitalization requires businesses to introduce new technologies and marketing tools to improve the quality of the business. The synergy of the best practices of two large successful Russian automotive holdings will allow automating a number of operational processes, introducing artificial intelligence and machine learning technologies and reaching a qualitatively new level.

    Consolidation of the work of the financial services department will expand the portfolio of financial and insurance partners of companies and will allow you to launch your own products on the market, which will be most beneficial for both customers and dealers and partners. Combining efforts in the used car sales segment is aimed at modernizing the valuation and redemption system, obtaining the most favorable conditions for working with partners and expanding warehouses.

    This step does not indicate a complete merger of the companies. Dealer centers of the group of companies AVTODOM will continue to operate under the brand "AVTODOM". The company specializes in the sale and service of premium and luxury cars. Dealerships of the group of companies AutoSpecCentre will continue to operate under the brand “ASC”. The company specializes in the sales and service of mass segment vehicles, develops the sales of Chinese brands and commercial vehicles.

    «Transactions for the sale of several dealerships of premium brands of the ASC in AVTODOM really took place this year. At the same time, each of the parties solved its own problems. For our part, we have significantly reduced the credit load of the ASC and reduced monthly payments. Thus, the company has more working capital for business development. Our plans do not include a complete merger with the GC AVTODOM. Consolidation of management companies will help us implement the best technological practices and interact with the most competent specialists of AVTODOM», – emphasized Andrey Terlyukevich, General Director of the GC "AutoSpecCentre".

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