A Casualty Of Mitsubishi's Decline

The Age

Saturday August 21, 2004

By RICHARD BREWSTER

WELL-KNOWN South Melbourne dealership Collins Motors, an icon in the motor trade for more than 30 years, has become the latest victim of the financial troubles plaguing Mitsubishi Motors Australia Ltd, which earlier this month reported a $220 million loss for the year to March.

As a result, chartered accountants and business advisers PKF have been appointed to wind up the business and Lockwood & Co Pty Ltd will auction all plant and equipment from 11am Tuesday on site at 152 Sturt Street, South Melbourne.

The plant and equipment for sale includes about 20 vehicle hoists, air hoses, general service gear, office furniture, computers and other related items.

The auction follows falling sales for the respected dealership, which this time last year was Victoria's number one Mitsubishi outlet. Vehicles sales have plummeted in the past 12 months and the release in recent weeks of several new models across the Japanese manufacturer's range has failed to halt the slide.

Industry car sale figures showed Mitsubishi's horror run continuing Australia-wide in July with Magna sales 65 per cent below the figure for the same month last year.

The old South Melbourne dealership, which several years ago moved a few doors along Sturt Street, started life as Collins Chrysler with the then popular Valiant as its identifying trademark.

About 15 years ago, Collins Motors (then Collins Mitsubishi) became an official dealer for the increasingly popular Mitsubishi vehicles and, along with similar dealerships in places like Essendon, Heidelberg and Kew, quickly developed a competitive market edge.

Despite being the smallest of Australia's four car manufacturers, Mitsubishi was popular with many of the motoring public and Collins Motors continued to reap the sales benefits.

However, by the end of the 1990s poor used car resale values began to affect new Mitsubishi sales and, in late 2001, South African-based company Barlow World took over the dealership.

Twelve months later it changed hands again to its present owners D.J. Car Sales Pty Ltd, which also bought Kew Mitsubishi.

As Mitsubishi continued to struggle, the new owners were forced to close the Kew outlet in June and, unfortunately, now it is South Melbourne's turn.

Apart from the office furniture, auction items should interest buyers in the automotive trade and related industries.

Viewing is Monday from 9am-4pm and from 9am on Tuesday.

For further information, contact Lockwood & Co on 9338 2778.

? Today from 10.30am, Lockwood & Co also is holding a furniture auction at 387 Old Geelong Road, Hoppers Crossing.

Buyers will have the opportunity to purchase $300,000 worth of new, fully imported bedroom, lounge and dining room furniture at greatly reduced prices.

Among the items for sale are modern, contemporary and classically designed solid timber pieces.

Featured are five-drawer tallboy chests, bedside tables, mirrors and single and queen size beds.

Fabric and vinyl dining chairs and varying lengths dining tables (up to two metres) are on offer along with occasional tables, corner TV units and large buffets.

There also are hall tables, flower stands, stereo units, wine racks, bar stools, TV chests, picture frames and table lamps.

Viewing is from 9am.

For further information contact 9338 2778.

? Michael J. Bent Auctioneers is at Big Joe's Hardware & Building Supplies, 12-14 Piper Street, Kyneton, (Melway 521, E12) from 12.30pm today holding a hardware, furniture and giftware sale.

Among the furniture on offer are stained glass crystal cabinets, dining settings, lounge suites and a grandfather clock.

Other items to feature are towel rails, antique desks, coffee and bedside tables, mirrors, lounge chairs and drawer units.

There also are tall boys, entertainment units, dressers and beds along with giftware, lamps, ornaments, picture frames and glassware.

On the hardware side, the auction contains a range items, garden lines and seed pots, and includes paints, stains, a tinting machine, door furnishings, sinks, electrical hand tools and home furnishings.

On Wednesday from 12.30pm, the same company is auctioning plant and equipment for Drager Medical Australia Pty Ltd at 198-200 Numurkah Road, Shepparton (Melway 521, J7).

Drager manufactures disposable medical and surgical apparel and the plant and equipment.

The auction is due to the sale of their operating premises.

Features are the Atherton autoclave steriliser with a gas Delectia system steam boiler and a fully automatic medical/surgical cap manufacturers machine.

Viewing is Tuesday from 9am-4pm. For more information, contact 9562 0211.

© 2004 The Age

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