MotorServ UK joins Dack Motor Group in strategic sale
Award-winning MotorServ UK in Solihull has been acquired by Dack Motor Group in a strategic move to secure the future of the business amid significant challenges in the UK automotive service market.
MotorServ UK founder Kamran Saleem (pictured above) said in a statement that he has decided to exit from the business as part of a structured hand-over which prioritises the welfare of the employees and customers. While MotorServ UK will eventually change its name to reflect the new ownership, the business will continue to operate in the same location offering the same type of services.
MotorServ UK joins Dack Motor Group
Saleem said: “This has been an extremely tough decision but safeguarding jobs and maintaining the high level of service that our loyal customers expect, has been at the forefront of my mind. The challenges in the industry have made it increasingly difficult to operate independently, and allowing the business to join the larger Dack Motor Group is the most viable way forward for all parties. With Dack, not only are all the current jobs safeguarded but additional career opportunities will also be made available for support, service and technical staff.
“I have opted to pursue this opportunity with Dack Motor Group, because their business is run very well, is driving forward at a good rate of progress and is continuously expanding. The staff, facilities and customers will be in safe hands moving forward and things will continue to improve.”
Thriving enterprise
Since its inception in 2014, MotorServ UK had grown into a thriving enterprise, achieving a combined sales and service annual turnover of £9.3 million at the end of 2022, and grew to be the largest independent garage in the Solihull area. However, despite working through difficult times during Covid, firstly the used car market faced a sharp decline in 2023, with transactions falling by 85% compared to 2022, followed by a slump in consumer spending for car servicing, which has seen revenues decline in that department by up to 45% over the past two years. This downturn, coupled with rising operational costs and the ongoing squeeze on new cars and parts supply, has placed immense pressure on independent SMR businesses such as MotorServ UK.
For sales, the challenges had been exacerbated by the global semiconductor shortage and economic instability, which have restricted the availability of new vehicles and, in turn, reduced stock into the second-hand market. While larger car supermarkets and franchised dealers have managed to weather these conditions, smaller businesses have struggled to maintain sales conversion rates as vehicles remain on forecourts for longer.
Led by Leo Dack (pictured), Dack Motor Group operates multiple sites across Lincoln, Northampton, and Coventry, and is well-positioned to rescue, strengthen and expand MotorServ’s offering. MotorServ UK will be enhanced with the addition of systems, support and stability through the takeover.
Dack said: “We understand the challenges that businesses like MotorServ UK have faced in recent times. Our goal is to ensure stability for the team and to maintain the high standards of service that customers have come to rely on. We look forward to integrating MotorServ UK’s former location in Solihull, into our group and strengthening its position in the market”.
Local community connection
MotorServ’s reputation was built on customer satisfaction, with a goal to provide high-quality service while helping customers to save money through the implementation of various initiatives such as the £15 no-pass-no-fee MOT, and the Motor-Club plan. Over the years, the company has also been deeply involved in the local community and business chambers, hosting initiatives such as various Car Crime Prevention Days in partnership with West Midlands Police, and the Santa’s grotto and Santa Sleigh fundraiser with the Roundtable.
Saleem said: “For many years, MotorServ UK has been at the heart of the community, in my opinion providing more than just used cars and services. I have been passionate about providing apprenticeships and job opportunities for local people, inspiring young people to consider careers in the automotive industry and providing affordable MOTs so people can keep on motoring safely.
“While I’m sad to let MotorServ go, I am committed to supporting the transition and to do the right thing by all, ensuring continuity for both staff and customers. I want to sincerely thank my team and the community at large for their trust and support over the years. Once this transfer has been completed, the former business – MotorServ UK will be liquidated. Dack Motor Group shall be taking on all assets and staff of the operation on a ‘clean slate’ basis.”
