Plans of the new CEO of AAA Auto

The interview with the CEO Karolína Toplová on ČT24 was broadcast on 9.8.201.

Opening new branches, improving customer service and fighting the poor reputation of used car dealers in the Czech Republic. The new CEO of the AAA Auto group Karolína Topolová plans this and more. She recently took over at the head of the company from the majority owner Anthony Denny. Alexandra Nosková was also interested in the reason for changes in company management.

Karolína TOPOLOVÁ, CEO, AAA Auto: Mr. Denny planned his, let’s call it commercial retirement, for a long time. The reason is clear, Mr Denny founded this company and led it very intensively every day for 20 years and had the feeling that the right time had come, let’s say to withdraw from the role of the operational manager and to really be that owner, leader and visionary, whose visions his team will bring to life.

Alexandra NOSKOVÁ, editor: A new boss, new management. Will you be changing the style of management in any way and how will this be different from Mr. Denny?

Karolína TOPOLOVÁ, CEO, AAA Auto: With a view to the fact that Mr. Denny set some very well-functioning processes, I don’t plan any, let’s say marked changes in the concept, or in the settings of those processes in question. But there really are places where I want to improve, let’s rather say fine tune those individual steps in the given process. Especially in customer care. I can imagine, from the point of view of the fact that I am a woman, that I will add a little more of that human empathy there. Another of my tasks is to set the retention programme for customer return rates. That retention must also bring with it some interesting new products for the people who have already purchased a car here. I would like to establish the position of ombudsman precisely as a sort of, let’s say mediator in the case of those problematic disputes.

Alexandra NOSKOVÁ, editor: How will you ensure the independence of this ombudsman, so that he is not too connected to the company and really is objective with regards to the customers?

Karolína TOPOLOVÁ, CEO, AAA Auto: Well, in any case it will be a person who already has some credibility on the market and a person who really is known for their independence.

Alexandra NOSKOVÁ, editor: Is the economic crisis evident in terms of car sales? Or is demand for used cars in fact growing?

Karolína TOPOLOVÁ, CEO, AAA Auto: If the crisis is exhibiting itself in any way, then rather in that more people are leaning more towards buying a used car than a new one, because they can count and the sum is an easy one for them, because when you buy a new car, the customer immediately loses as much as 30% of its price the minute they leave the showroom.

Alexandra NOSKOVÁ, editor: How much interest is there in fact now in sale of cars using a loan?

Karolína TOPOLOVÁ, CEO, AAA Auto: In the Czech Republic, the figure is a little more than 50% of all of our transactions. So purchasing cars in instalments in this way is represented. The figure is more than 60% in Slovakia. So we are seeing a great increase.

Alexandra NOSKOVÁ, editor: Your objective will be to further increase car sales. How many cars do you sell a year now and what level do you want to reach?

Karolína TOPOLOVÁ, CEO, AAA Auto: This year, our target is bordering on 50 thousand cars sold, whereas last year we sold over 45 thousand cars.

Alexandra NOSKOVÁ, editor: AAA opened a used car dealership in Russia last year. This is near the ring road around Moscow. How are car sales doing there?

Karolína TOPOLOVÁ, CEO, AAA Auto: The branch’s economic management has balanced out now, so between the first and the second quarter, we registered a growth of almost 70%. We are looking forward to the profitability which should be coming in the following months with regards to the segments of cars which are sold on the Russian market. For example, we sell cars in a higher price category in Russia as compared to the Czech and Slovak markets.

Alexandra NOSKOVÁ, editor: Which other branches are you planning to open, not only in the Czech Republic, but for example in Slovakia or Russia, let’s say over a horizon of the next few months to a year?

Karolína TOPOLOVÁ, CEO, AAA Auto: We are planning another two in the Czech Republic this year. One branch in the west of the Czech Republic, the second more likely in the south. We will definitely be opening one branch in the east of Slovakia. On the Russian market, the moment we reach the level of profitability, either St. Petersburg or the opposite side of Moscow to where we currently have a branch come into consideration.

Alexandra NOSKOVÁ, editor: You were active on the Hungarian market, but left. Do plan to return there?

Karolína TOPOLOVÁ, CEO, AAA Auto: We plan to make our decision on the date for our return to the Hungarian market by the end of this year, because in fact we left Hungary thanks to the deepening economic crisis, which hit the Hungarian market very intensively, very deeply and the situation there is still not 100% healthy.

Alexandra NOSKOVÁ, editor: How is the behaviour of your customers changing, which cars do they now prefer?

Karolína TOPOLOVÁ, CEO, AAA Auto: Škoda cars still dominate our sales. A third of cars we sell are Škoda, sold in the Czech Republic, in Slovakia and an interesting thing is the recent swing more towards luxury cars and SUVs.