BY MAUREEN N. MARATITA and PAULY SUBA Journal Staff
Ruslan Kinebas, CEO for the Asia Pacific for Inchcape; couldn’t be happier about the performance of the Asia Pacific region in general, and Atkins Kroll Inc. in particular.
“We are very excited about Asia Pacific. It’s currently a growth engine for us and for the world. They will be beating the global average by a mile.”
Ruslan Kinebas is the CEO of Inchcape Asia Pacific. Photo by Maureen N. MaratitaAs to Atkins Kroll’s share of a region that also encompasses Australia, Brunei, Hong Kong, Indonesia, Macau, New Zealand, the Philippines, Saipan in the Northern Mariana Islands, Singapore and Thailand, Kinebas said, “Guam is a very significant part. It’s punching above its weight.”
Kinebas attributes that success to the breadth of AK’s offerings. “It’s because of the significant market share we’re able to command because of our portfolio,” he said.
AK’s brands include BMW, Chevrolet, Lexus and Toyota.
Atkins Kroll is celebrating its 110th anniversary this year, marking a significant milestone in Guam's automotive landscape.
At the same time, it’s new logo released in hand with the anniversary emphasizes the closeness between AK and its parent company, which Inchcape acquired in 1974.
Kinebas — who has been a member of the executive teams of Kraft and Cadbury-Schweppes in the past, told the Journal, “I’ve always loved brands as an expression of the consumer desire and the emotional connection that consumers have to products. … At Inchcape we deal with some of the highest profile, most exciting brands that you can think of. The emotional connection of people with the car and the car brands is quite exceptional.” He said Inchcape partners with more than 50 brands in different combinations in different parts of the world, giving it a wide portfolio that it represents. “Every brand is unique, and you want to do the best you can within the market for the brand that you represent.” That’s the group’s business model, Kinebas said — representing brands.
“Inchcape and Atkins Kroll have really a lot in common in terms of the brand connection to the history to the markets where we operate and how people think about them,” he said. “Inchcape is a very old trading house, so the company has been around for over 170 years,” he said, acquiring similar historic assets during those years. “Atkins Kroll is a very natural part of that because Atkins Kroll has an unprecedented history here in Guam and has got amazing roots … and is something that is a household name here. It’s an amazing brand.” Given that, Kinebas said, “We definitely want to make sure that this brand continues to thrive; continues to represent what Guam people stand for, but equally feed naturally into the family of brands that is Inchcape.”
With the new corporate logo, he said, “We tried — very respectfully — to reinterpret the logo so that it starts to feel like it’s part of the new Inchcape identity, because we are also a little bit reinventing the Inchcape brand identity as we speak …,” he said.
YapAlex Yap, president of AK, has a background spanning 25 years in the automotive sector.
He said Inchcape fully acknowledges the brand power of Atkins Kroll. “We are not going to do away with that for sure,” he said. Although AK is an Inchcape subsidiary, Yap emphasized the company's dedication to building upon this legacy. He said, "We will continue to develop this brand, Atkins Kroll, and work together with our Original Equipment Manufacturers partners to grow the business and maintain the automotive industry landscape in this region. Atkins Kroll will always be the brand on Guam.”
AK has been in expansion mode — moving into Palau in November 2021, acquiring Morrico Equipment Holdings Inc. the same month, acquiring Avis Rent a Car, Budget Rent a Car, and Payless Rent a Car in April 2022, and breaking ground in Saipan for a Toyota Lexus Showroom and Service Center in March 2023. AK had upgraded its showrooms in Guam previously.
“That was driven by Inchcape strategy,” Kinebas said. “We represent brands in the markets. … We are the world’s leading automotive distributor across all segments of the automotive market. We build multibrand portfolios in the markets, which allows us to do a better job for the customer in the market — given the scale we can create, particularly in small and mid-size markets, which is what we are focusing on.”
In such markets, he said, the group is able to create efficiency. “We bring the brands together into one portfolio in a very respectful and complementary way and that allows us then to establish the right business processes, ensure customer service is there, invest in the technology to make sure that that will deliver the right customer service.”
Kinebas said Inchcape felt that with Toyota and Lexus brands in Guam there was a great foundation, and that there was “great execution in terms of sales but also in terms of after sales. But we were not present with those brands in the luxury segment and BMW is one of our global partners,” he said. “It was quite natural for us to bring that brand into Guam and start representing BMW.”
Kinebas said Inchcape does work with commercial brands across the world as well. We have businesses in Latin America and Africa … where we sell construction equipment and agricultural equipment ... ," he said. "We were looking for an opportunity to expand here, given our big footprint already in passenger cars,” Kinebas said. Morrico had a strong presence, he said. “And they were dealing with some of the brands that we know globally as well.”
While only 16% of vehicle owners drive electric or hybrid vehicles in the U.S., elsewhere the trend to electrification has taken hold. “Electrification is one of the key trends the industry has been experiencing,” Kinebas said. “Globally there are close to 40 million electrical vehicles; 10 million are hybrids. It’s not evenly spread across the world.” The trend will continue, he said. “It’s inevitable. It will take a little time. Affordability is less of an issue in the premium segment; adoptability is faster.”
Yap highlighted the ongoing transformation in the automotive industry, particularly the shift towards electric vehicles. He emphasized the importance of adapting to this change, stating, "We need to develop people's skillsets to keep pace with the transition from combustion engines to electric vehicles.
Regarding the introduction of EVs in Guam, Yap acknowledged a gradual uptake, noting, "although the pace of electrification on the island is not as quick as in the U.S., the trend towards EVs and hybrid vehicles is evident." He said global projections show that by 2030, 60% of global vehicle sales would be EVs, emphasizing the need for readiness in Guam's market.
In addition to technological advancements, Yap discussed the role of community engagement and corporate responsibility. He highlighted AK's contributions to the community. As part of its 110th anniversary celebration, AK Toyota presented the American Red Cross Guam Chapter with a 2024 Toyota Tacoma (See “Corporate Giving,”).
Yap said Inchcape provides close to 390 jobs and counting in Guam. "We play an integral part in providing jobs for the island and contribute significantly to the economy," he said.
Looking ahead, he provided a brief update on their construction of a new facility in Saipan, the Atkins Kroll Toyota Lexus Showroom and Service Center at Chalan Pale’ Arnold in Puerto Rico, Saipan. He said the facility should open its doors in the third quarter of this year.
The new 43,800-square-foot facility will include a Toyota showroom, Saipan’s first dedicated Lexus showroom, corporate offices, and an automotive service and body repair shop that will be able to service personal and commercial vehicles.
As for further expansion, Yap said the outer Pacific islands remain on his radar. Especially because of the Morrico acquisition, because that allows the company to expand its reach further.
Yap acknowledged that the acquisitions of Avis, Budget, and Payless Rental Car companies back in mid-2022 have yet to see their full potential, because the tourism market is only slowly making a rise. Yap said, “Once the tourists do come back, I'm sure there'll be more expansion of footprints.”
Despite challenges such as supply chain disruptions and the impact of natural disasters, Yap expressed optimism about Guam's automotive industry. He underscored the importance of diversifying the economy beyond the military buildup. Yap said, "Our island cannot rely solely on federal funding. We need more businesses and tourism to drive the economy forward."
Yap reiterated Inchcape's dedication to Guam's community and economy. He said,
“Our business will continue to grow because we believe in the potential of Guam and its people." mbj
