Family Business
Issue No. 48 - August/September 2009
Newtons succeed at City Holden
Transferring control of a major business between generations is a delicate operation. City Holden owners the Newton family have accomplished it by good planning - and lots of patience.
Chris Newton founded City Holden in 1979 when a noted Adelaide CBD dealership came up for sale. GM Holden did not want United Motors’ footprint in the CBD to get any larger. Chris, then GM of United Motors, agreed to acquire Jim Ferris Motors; City Holden was created with Chris as Dealer Principal. Key staff went with him.
City Holden’s main site is in Grenfell Street in the CBD with satellite dealerships at Hillcrest, Nailsworth and Rose Park. The group employs 109 people and turns over about $100m a year. The firm’s Dealer Principal has won the prestigious Holden Grand Masters award, a prestigious internal distinction, every year but one since the award’s inception 19 years ago. Julian is the current title holder.
Julian took over as Dealer Principal in July 2006. He has a business degree, but early on Chris insisted he must thorough understand every department by working in them. He joined City Holden as a sales cadet (initially washing cars!) and was promoted to salesperson, but before he assumed a position of real responsibility Chris suggested he spend time working outside the business.
“I went to Sydney where I worked for three major Holden dealers in used car sales, new car sales and service departments,” Julian says.
“When I came back to Adelaide it was to a marketing position under the Sales Manager and I succeeded him in that role.”
Chris and Julian Newton are both tight managers. Julian says his father understandably “struggled to give up the role of Dealer Principal”, although Chris knew the succession question had to be settled for the business to progress. They approached the problem systematically.
“We got together the financial, legal and operational advisers and we held meetings to sort out what our ...
