Japanese company IDOM will take over the day-to-day operations of DVG Automotive Group after chief executive Lou Divirgilio stepped back to focus on his role as chairman.
After more than 20 years at the helm, Mr Divirgilio said it was the right time to move on.
“I felt the timing was right for me to now focus on my role as chairman of DVG Automotive Group, and to hand over the day-to-day running of the business to a new CEO in Takayoshi Udagawa,” he said.
Mr Udagawa had been working in the business since July 2015, when IDOM took a 67 per cent stake.
The company also has a new chief operating officer in Tony Salerno.
Mr Salerno joined the DVG team in January this year after more than 10 years as dealer principal and chief operating officer with Automotive Holdings Group.
In addition, the company has a new Chief Strategy Officer in Dan Kawai and Chief Financial Officer in Guido Berini.
Mr Divirgilio said the car industry had weakened since IDOM's acquisition.
“Certainly, the last two years have been among the toughest that I’ve experienced in the car industry and we’ve had to make some difficult decisions to resize the business to fit the market,” he said
“We’ve cut almost $6.5 million in costs from our annual operating expenses and have increased our revenues to the point that we’re now back trading profitably.”
Mr Divirgilio said he was confident in the new leadership team.
“Mr Udagawa has a strong executive team and I certainly look forward to being able to provide advice, guidance and mentorship as we execute DVG’s exciting growth strategy over the coming years,” he said
IDOM president Yusuke Hatori praised Mr Divirgilio’s service to the company.
“I thank Lou for his management and leadership of DVG and I know he will be with us every step of the way as we expand DVG’s operations across the east coast of Australia,” Mr Hatori said.
Of the seven Divirgilio brothers who were originally part of the business, only Lou and Michael are still involved in the business.
The other five moved on to pursue other projects since the IDOM acquisition in July 2015.
