Gyro Mazda - The Canadian Business Journal

Gyro Mazda
www.gyromazda.ca
CB
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Gyro M
Keeping it
CB
Mazda
in the Family
AUTOMOTIVE
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AUTOMOTIVE • Gyro Mazda
After almost 40 years of operation in Toronto,
family-owned car dealership Gyro Mazda is
venturing down new roads.
Toronto’s oldest Mazda dealership began in 1953
when two brothers arrived from Slovenia and started
washing cars and pumping gas. Soon they were repairing
British cars (which needed a lot of repairs). Soon after,
the brothers acquired an Alpha Romeo franchise. When
the Japanese started selling cars in Canada, the brothers picked up a Datsun franchise, and switched to Mazda
shorty after. In 1975 they became a dedicated Mazda
dealer, and a very successful one at that.
NOVEMBER 2012 • The Canadian Business Journal
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AUTOMOTIVE • Gyro Mazda
General Manager J.P. Kovac took up the
ership every day – we’re not absentee owners,
mantle from his father in 2000, alongside the
we’re not a big group – we’re involved with the daily
General Sales Manager Paul Kmet. “We’ve been
operations of the business and we try to keep a
a family owned and operated business for two
personal touch with all of our clients,” he says.
generations now,” says Kovac.
“My father partnered with Joe Kmet in the
The company’s family-led ethos shows in its
relationship with the local community as well.
Alpha Romeo days, and his son Paul and I are now
Gyros has sponsored hockey and baseball sports
partners in the business. We recently took on an-
teams, among others, from the very beginning.
other partner, Jim Krigos. Paul looks after the new
“I’ve got team photos on the walls in here that go
car sales, Jim looks after pre-owned and I’m gen-
back to the 1970s,” Kovac adds.
eral manager, so fixed operations is where I focus.”
Kovac claims that being a small and down-
In the Fast Lane
to-earth family business shapes Gyro’s relation-
Gyro has around 40 staff and sells around 1000
ships with its clients as well. “We’re at the deal-
vehicles a year, comprising 700 new and 300 used.
NOVEMBER 2012 • The Canadian Business Journal
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AUTOMOTIVE • Gyro Mazda
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to when you’re in a small town environment
where you’ve basically got the one small dealership to deal with.”
Fortunately, Gyro is well aware of what it is
up against and has the strategies in place for
Kovac claims that at one point the company was
winning business. “When the customer has the
Canada’s “No.1 Mazda dealer by volume for seven
ability to shop around, you’ve got to make sure
years in a row.” Competition in the car sales sector
you do a good job,” says Kovac.
is much tougher now than it was, he says, especial-
“Everybody has the same products to offer,
ly when you’re one dealer among 17 Mazda dealers
so it’s the people and the process that make
in the Greater Toronto Area.
the difference. We have an excellent client
“It’s extremely competitive,” says Kovac.
base and get a lot of repeat and referral busi-
“Margins are thin. You can drive from dealer to
ness; we have very strong fixed operations; and
dealer within 15 minutes in the GTA, as opposed
that’s what keeps the customers coming back.
NOVEMBER 2012 • The Canadian Business Journal
9
You treat them right in service and they buy
They don’t have to think about when to bring the
their next car from you.”
car in for a service — we’ll make sure they get all
the reminders they need. We also offer tire stor-
Achieving the Right Balance
age and complete vehicle detailing. We recently
Kovac concedes that providing a high level of
expanded our hours of operation and the area in
customer service while remaining profitable
which our customer shuttle runs.”
can be a challenge when margins are so thin.
To bolster its financial side, Gyro is expanding
However, he believes Gyro manages both.
into a secondary franchise for the first time in 37
“Customers expect more, so expectations keep
years — with Hyundai. “That’s going to help ease
getting higher and higher, but we offer more
the cost of doing business,” Kovac says. “The
services now than we’ve ever offered.
economies of scale are such that when you get
“We have a complete follow system, so we
into more than one business – especially when
call customers when their cars are ready and
they’re situated right across from each other –
send them an email when it’s time for a service.
you can keep the costs low.”
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AUTOMOTIVE • Gyro Mazda
NOVEMBER 2012 • The Canadian Business Journal
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“When the customer has the ability
to shop around, you’ve got to make
sure you do a good job.”
New Direction
According to Kovac, Hyundai has grown by 50 per
cent over the last five years and now has offer-
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ings in most market segments. The brand has
almost twice the national volume of Mazda and
should prove a valuable asset to the company.
“Hyundai’s volume in the marketplace has really come up and it’s because of the products and
their quality,” says Kovac. “We’re very excited about
being a Hyundai dealer – they just released a brand
CONGRATULATIONS GYRO MAZDA
On all the Growth & Success.
Proud to be in assocation with the Gyro team.
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new revised Santa Fe model and it’s absolutely
beautiful. It’s an excellent brand.”
Gyro plans to open the doors of its new Hyun-
challenges, but it is not leaving Mazda behind.
Kovac points out that demand for the Mazda
dai dealership in April 2013. From there, Kovac
CX5 is currently outstripping production. “The
estimates it will achieve a sales volume of 600
product has been so well received and well-
new units in its first year and anticipates that
reviewed by the press and the public — it’s just
number climbing to 1,000 new units sold per
fantastic,” he remarks. “Now, they’ve got a
year within five years.
fully redesigned Mazda 6 that is due to hit the
“We’ve got the ability to put another fran-
showrooms in January.” Heralding substantial
chise in the next five years in the same location,
expansion and diversification, 2013 is shaping
and we’re looking to see what would be the best
up to be an exciting year for Gyro Mazda. CB
fit,” he adds. “We really want to utilize the expertise we already have, in our current operation,
Photo Credit: Tracey Job
and apply it to the next franchise as well.”
The car retailer is eager to take on new
www.gyromazda.ca
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AS SEEN IN THE NOVEMBER 2012 ISSUE OF THE CANADIAN BUSINESS JOURNAL
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