A trusted partner in uncertain times
Never has the future looked so unpredictable for the world’s vehicle manufacturers and their factories. At stake is the switch in production of internal combustion engine vehicles to electric cars and vans, as well as the implementation of self-driving software. Make the transition too early and OEMs will lose tens of thousands of profitable sales. Make the move too late, and they risk being left with tens of thousands of ‘unsellable’ petrol and diesel vehicles, while missing out on market share in the new EV sector.
Add in the complexity of national governments turning on and off subsidies and tax breaks for electric vehicles, and forecasting production today to meet demand in 9 to 12 months’ time is exceptionally difficult.
To resolve these uncertainties, manufacturers need a flexible partner which can absorb the remainder allocations to keep production lines running at maximum efficiency, while having complete confidence that this partner will sell the vehicles responsibly to uphold both prices and brand reputations.
At the same time, car dealers need complete faith that they can source all the vehicles they require, when they need them, from OEMs and importers.
Wholesaling new and nearly new cars
Supporting both OEMS and importers as well as car dealers is a role that Belgium-based Quadriga has fulfilled for more than a decade, establishing itself as an expert in the international wholesaling of new and ‘nearly new’ second-hand cars, and handling about 7,000 vehicles per year, says the company’s chief executive officer Geoffrey Heyninck.
“We bring OEMs added value by helping them to achieve their goals, in terms of market share, cash flow and optimizing their production planning,” he said.
“We are financially very strong, which is why we can buy significant volumes of vehicles from OEMs and importers, and we are never under financial pressure to ‘panic sell’ cars if the market slows down.”
The vehicles are never resold in the markets where they are acquired, with Quadriga selling to dealers in more than 40 countries across Europe, Africa, the Middle East and Asia.
Quadriga also works in partnership with rental companies, which order cars to Quadriga’s configuration (typically in a higher specification to appeal later to carefully identified used car markets). After the hire period, Quadriga buys back these cars, effectively underwriting their residual values and carrying their depreciation risk.
While the semiconductor crisis has brought its own challenges, in normal times Quadriga has up to 450 cars in its own warehouse and a further 1,000 at the neighbouring port, plus 1,000-1,500 in the pipeline.
“For our customers we are a reliable source of supply. We only offer them cars when we actually own them - we only start to sell when we have an actual VIN number,” said Heyninck.
Quadriga’s sophisticated IT systems track all the orders, documentation and customs forms to deliver clear, comprehensive information and simple administrative and logistical processes.
“By guaranteeing competitive prices, accurate record-keeping and smooth processing, we contribute directly to the profitability of our clients,” said Heyninck.