Dirk Ellis Motors was formed in late 1984 when Dirk Ellis acquired the full ownership of Marais & Erasmus Motors in Humansdorp. This dealership went on to perform extremely well against its competitors, not only of other manufacturers, but also within Volkswagen’s National Dealer Group. Each successive year many awards were bestowed upon this fast growing concern.
Not too far down the road and also in the Eastern Cape, Mike McNaughton, having entered the motoring industry in the fitment arena (tyres and exhausts) soon saw an even bigger opportunity in the form of a motor dealership. In 1996 Mike purchased Kelly Volkswagen, a well established dealership in Uitenhage, thus Market Square Volkswagen was born.
Dirk Ellis started in the motor industry some 30 years ago, in 1980, then achieving a position of 25th salesman in the country in his first year, a feat he repeated again in 1981. After buying 30% in Marais and Erasmus Motors in 1982, he quickly increased this to 50% by 1983, and by 1984 he was the sole owner. They won “Best Dealer in SA” Award in the new car sales category, and at the age of 24, Dirk broke new ground as the youngest Dealer Principal at that time. This dealership continued to scoop awards all through 1986 – 1988. In 1988 The Afrikaanse Handels Instituut voted Dirk “Eastern Cape Businessman of the Year”. By 1990, Dirk Ellis Motors had been included in the Club of Excellence (award for the top ten dealers) and they went on to win it again in 1992 (and many more years following that). In 1995, Dirk was awarded the Diamond Pin Award, which the highest award for an individual for their contribution to VW Worldwide, having received the second highest of Gold Pin prior.
Mike McNaughton started his career in the fitment industry in 1979, and from then through to 2005, he owned and operated various businesses within this sector including a Fasfit and Hi-Q Franchise. During this time he was awarded many accolades within the industry and served on the board of FasFit for a period of 6 years. In 1996 Mike purchased then “Kelly Volkswagen”, together with an empowerment partner, Stephen Dondolo and a farmer from Kirkwood, Jannie Potgieter. (Both were subsequently bought out during the 2000 merger). Under the trading name of “Market Square Volkswagen” they were awarded “Club of Excellence” seven times and won the overall “Dealer of the Year” award for 2003. At the age of 40 Mike saw the need to marry solid theory with what he had learnt in practice over the years and on the advice of Prof. Kobus Jonker began studying towards a diploma at the then PE Technikon. Mike went on to not only complete the diploma, but also a degree and finally attained his MBA. He has lectured in the field of marketing and sales and still serves as an external examiner and moderator. In 2005 Mike was awarded the Golden Pin Award, which is the second highest award for an individual’s contribution to VW Worldwide. In November 2009 he received the Diamond Pin Award in Germany.
A chance meeting on a flight to London in 1999, led to Mike and Dirk discussing the challenges that each faced in the ever-changing motor industry. “Tough times” were calling for a new approach to overcome hurdles facing the small, rural dealer. Mike and Dirk spent the flight debating how one could make the smaller rural dealer profitable in the face of a small market, yet being in an industry where manufacturers required large capital inputs. From these lengthy discussions, new business ideas were born and the proverbial “paradigm shift” in how they did business began to take form.
Thus is the year 2000, the original holding company of Market Square Volkswagen, Kelston Motors, incorporated Dirk Ellis Motors into its stable and The NEW Kelston Motor Group was re-launched to the motor industry.