Risk big to win big, urges Renault head

BEST-SELLING author and Renault distributor Bill Cullen, who was paid a €2.2 million dividend in 2002 by his group Glencullen Holdings, believes that “you have to risk big to win big”.

Mr Cullen, aged 62, is the 100% owner of the group and speaking at Waterford Chamber of Commerce Business breakfast in association with the Irish Examiner yesterday, made no apologies for his success.

Mr Cullen bought the debt-ridden Irish franchise for Renault for £1 in 1986 and turned it into an extremely successful and profitable business.

The company made a pre-tax profit of €11.26 million in the year to December 31, 2002, according to accounts just filed.

Gross profit in 2002 was €9.6 million with €2.2 million being paid out as a dividend and the rest being retained. Accumulated retained profits at the end of 2002 were €26 million.

The Renault chairman pointed out that in order to gain such riches he had to take one of the biggest risks of his life.

“The company is now making €11 million a year but I bought it when it was bankrupt and losing £4 million a year. I have been able to turn it around and, lets face it, the rising tide has lifted and the car industry has gone straight up the past four or five years. But I also came through the tough times as well.

“When I took over, Renault Ireland was bankrupt and Renault France the manufacturing company was bankrupt. It was still a huge risk, I put everything I owned at that stage into the business (about half a million) and if it hadn’t worked I would have lost everything.”

The Renault chairman believes a lack of fear is essential to succeed in business. “Never be afraid to risk everything you have. If I had lost everything I would have started again and that never fazed me. The people who risk big win big, so I won big and I am enjoying it.”

The successful businessman believes that Ireland is still a strong and vibrant economy and rubbishes any doom and gloom stories.

“I went through all last year listening to these doom and gloom reports and that the tiger is dead, but there are two denominators you have to remember is that if the construction industry is flying and the motor business is flying then business is flying.”

Mr. Cullen highlighted that the car industry is going from strength to strength. “The opportunities to sell cars is immense. There is the highest number of cars ever on Irish roads with 1.6 million cars and the motor industry will sell at least 10% of that every year.

“The National Car Test system is also improving the car business as it is practically driving cars over four-years-old off the road. People either pay for repairs or get a new car.”