It was a vehicle emissions rule that finished off Sheffield for Matthew Gilder. His dealership in the South Yorkshire city – Via Moto – had been hit with many of the same problems as the rest of the industry in recent times: increasing costs and declining sales. Together with soaring energy bills and higher interest rates, the business was on the edge.
“They introduced a Clean Air Zone,” said Gilder. “All commercial vehicles were charged, so our deliveries were costing more, and that was the straw that broke the camel’s back. We had increased interest rates, especially on stock, which became a nightmare; mortgage costs and energy bills rocketed. So we had a combination of all that, plus the market was flat, and the manufacturers had elevated ideas of what we could sell. It all put us in a very difficult position.”
Luckily, Gilder owned the Via Moto building in Sheffield, so he was able to sell it and downsize to smaller premises in Barnsley. He also took the opportunity to review the entire Via Moto operation to better suit the business conditions.
“To cut a long story short, we sold our building and looked for an alternative. We decided to downsize, so we parted company with Piaggio Group and decided to have a smaller operation, probably just selling used bikes. However, we’ve not come to a final decision on that. I still have CFMoto and Norton for the moment, and we’re focusing more on clothing and accessories; we’ll also keep on servicing bikes.
“Our overheads are now a lot less, but it’s still a very tricky market. We’re doing better and have stabilised. I still have some Piaggio stock that needs to go, which is nearly done, and then we’re going to focus on what to do going into 2025.”
But Gilder reckons the headwinds he was facing aren’t getting any easier. “The new bike business is tough at the moment. There are a whole load of issues making it very difficult across the industry, and I don’t blame anyone for closing down or selling up because it is pretty horrible. Manufacturers are pushing up prices ahead of inflation. They have to change how they work and let dealers work more flexibly.
“Right now, the market is down, at least 15% in my opinion. It’s not been good all year. Ask any dealer; it’s been erratic all year, and it’s never really got going. The weather has also had a massive impact. It’s been very hard for more than 18 months now. If they are not out riding their bike, they’re not getting it serviced or replacing it.”