In 2022, we announced the acquisition of Derco, Latin America’s largest independent automotive Distributor. Inchcape’s largest deal since 1967, it was also one of the most ambitious deals in our history - marking a transformational step in our ongoing growth and value creation journey.
Three years on, the integration of Derco has delivered great results -bringing thousands of talented colleagues across Chile, Peru, Bolivia and Colombia into our business, adding £2bn to our Group revenue, increasing our Distribution volumes by around 150,000 vehicles and expanding our OEM portfolio.
But what has driven this success, and how is Derco contributing to our wider strategy?
Advancing our Accelerate+ strategy
The successful integration of Derco is playing a key role in driving our Accelerate+ strategy. It has strengthened Inchcapearound the world – creating a more scaled, diversified business across more markets and with more OEMs, driving sustainable, profitable growth and value.
We have boosted our market share across several territories and added 11 OEMs – Suzuki, Changan, Citroën, GWM, Haval, JAC Motors, JCB, Komatsu, Landini, Mazda and Renault - to our portfolio, some of which we have introduced into APAC and Europe & Africa. In Chile, our market share went from 5% to 25% and from 4.5% to 23% in Peru - supporting our strategic ambition of driving towards greater than 10% market share, where we can realise the benefits of scale, over the medium to long-term.
Expanding capabilities and elevating customer experience
Derco has also enhanced our capabilities and synergies in logistics, finance and insurance, and expanded our presence into attractive adjacent categories, including machinery and light commercial, in sectors such as agriculture and construction.We also transformed our approach to retail, with Derco Centresa great example of Inchcape’s multi-brand retail approach.
By combining car purchasing, ownership support, financing and insurance options in one location - available online and in-store - under a single, trusted name,we’re able to deliver an exceptional customer experience, which is reflected in our record customer satisfaction scores.
A journey of successful cultural integration
One of the critical ingredients in any successful merger or acquisition is how effectively new colleagues are integrated into a new organisation and how cultures are aligned. By investing in programmes to successfully integrate Derco colleagues into our One Inchcape culture and build awareness of our strategy, we were able to drivestrong colleague engagement and cultural alignment across the Americas region.
A key part of this journey was the One Inchcape Ambassadors initiative. Nominated locally, ambassadors were selected to reflect each market’s specific needs, playing an important role in helping colleagues adapt to new ways of working. In Colombia, ambassadors launched ‘The Integration Route’ to help office merges, while in Peru they conducted interviews across teams to understand challenges in adapting to change.
Delivering for all stakeholders
Three years on, the Derco acquisition has strengthened Inchcape’s financial performance, expanded our OEM portfolio and created new opportunities for colleagues across the Group.
It has reinforced our ambition to become the undisputed global leader in independent automotive Distribution - enhancing our scale in the Americas and beyond and positioning us for long-term growth in line with our Accelerate+ strategy.