Vendor administration system agency Pinewood might be centered on development within the UK and USA as soon as father or mother group Pendragon has offered its motor retail enterprise to US-based Lithia and Driveway.

Pendragon’s board expects that its separation from the dealerships and its transition to inventory market-listed Pinewood Applied sciences plc will “unlock additional scale amongst UK retailers”.

Birmingham-based Pinewood’s DMS is used within the UK principally by Pendragon’s dealerships, and there has lengthy been some reluctance amongst different main UK seller teams to make use of a provider owned by their rival – in 2018 its managing director Neville Briggs mentioned it was being utilized by round 1,000 dealerships, giving it a 22% market share.

The announcement of plans for a three way partnership with Lithia and Driveway, to enter the North America seller software program market which is estimated to be price greater than £2.6 billion per 12 months, would assist drive up Pinewoods underlying income by double its 2022 stage to a focused £27 million in 2027, reveals the inventory market announcement. 

Whereas Lithia would roll out Pinewood’s software program throughout its current 50 UK dealerships, including 2,500 customers to the present 30,000 consumer buyer base, the software program firm would additionally goal Lithia’s 17,500 customers globally within the medium time period, alongside attracting new third celebration prospects.

Invoice Berman, chief government of Pendragon who will develop into Pinewood Applied sciences CEO as soon as the deal goes by, mentioned: “The launch of Pinewood as a standalone firm is a singular and thrilling alternative to create a best-in-class product for patrons, which we are able to market globally and drive substantial worth for our shareholders and in Lithia we’ve the right companion to assist speed up Pinewood’s push into the massively engaging North American DMS market.”

It should facilitate product co-development with Lithia that can add additional functionality and supply new routes to development in key current markets.

The DMS is accepted by quite a lot of carmakers, together with Renault and BMW, and it has integrations with quite a few automobile manufacturers together with Ford and Volkswagen Group.