Transport and logistics company Super Group was forced to close its Fourways-based used 4x4 dealership because rapid change in the market had made the Extreme 16 business concept unviable.

Transport and logistics company Super Group was forced to close its Fourways-based used 4x4 dealership because rapid change in the market had made the Extreme 16 business concept unviable.


Billed as the largest pre-owned dealership in Africa, X16 stocked a variety of different types of vehicles, offered a innovative retail experiences - such as Extreme Kidz, Suzuki World, Outdoor Xtreme and Extreme Traxion - and included two restuarants and a conferencing facilities.


Reporting the Group’s financial results for the half year to September on Tuesday, the group said Extreme 16 “struggled in a market where growth in new car sales, driven by real price decreases, weighed on used car prices”, it was reported.


Super Group chief executive Larry Lipschitz said 2004 “was the first year on record when there were no increases in prices of new cars” and that led to some used car prices falling as much as 30 per cent.


The Extreme 16 site in Johannesburg will now accommodate Super Group's new Nissan franchise. A group spokesman said the closure of the two-year-old dealership would cost R24-million, but it would continue to service Extreme 16's customers from the site.


Despite Extreme 16’s downfall, Super Group's revenue increased 19 per cent to R3,95 billion, as trading margins grew from 7,8 to 8,2 per cent. Trading income rose 25,3 per cent to R325,8 million and net income increased 14,6 per cent to R172,4 million, a report said.