www.am-online.com August 2014 £8.00
FA C E T O FA C E / P 3 6
AUTOMOTIVE MANAGEMENT
HR Owen’s Chris Harris on enticing customers with email and events
TARBLETFAS
CEB O T W SMARTPH ON O DIGITAL E M T A G AZINES IT
N P A G E 19 E - S TA R T S O U S S I G N I T E K THE MAR
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21 Y R U T N CE G N I T E MARK how dealers d e g n a h c y ll a ic d ra Digital media has and sell to their customers. reach, analyse up to speed? s s e in s u b r u o y Is
B I G D ATA / P 19
ENGAGING BU Y ER S / P4 3
Data is at the heart of marketing, says Audi UK’s Nick Ratcliffe
Traditional methods can still pay off for digital-age dealers
ES
K
Tuesday 21 October
Telford International Centre, TF3 4JH Success in used car sales has long been the bedrock of a successful dealership. Today, the sales environment is undergoing a transformation that is redefning the long-established sales model. Vital proft centres in F&I are under scrutiny and consumer trends ensure that understanding and adapting to a digital sales model is imperative. The current sales model must change and adapt.
Headline sponsor:
The AM Used Car Market Conference 2014 sees experts presenting their thoughts and best practices to help dealers adjust to the rapidly changing conditions. Developed with dealers for dealers, the conference is designed to provide pragmatic advice and practical ‘take-aways’ that can help turn the threats surrounding today’s used car operation into tomorrow’s opportunities.
Co-sponsors:
For more details, or to book visit www.usedcarconference.co.uk
welcome
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am@bauermedia.co.uk
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ouR ExpERT ConTRiBuToRS
Is your digital marketing fit for purpose? hy should HR Owen be different to any other motor retailer in the 21st century? Any franchised dealer should truly value the contact it has with its customers, should ensure every marketing communication is targeted and valid, should ensure the transition from in-market to actual purchase is smooth and seamless. Is the only exception for HR Owen that it is catering for London’s high net worth individuals and the starting price of its new cars is more than double that of a BMW 1 Series? This is why HR Owen’s strategy is “experience is everything”. With former Nokia global brand strategist Chris Harris in charge of marketing, the motor retailer is engaging with customers in an intelligent, data-driven way. You’ll read in our interview on page 36 how the dealer group is smashing industry averages through a consistent group approach, segmentation of its customer data and analysis of what those segments really want to hear. Be inspired by Harris, and then, armed with insight from our Marketing Toolkit and Customer Engagement features on pages 31 and 43, check your marketing strategy is fit for the 21st century.
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Jay nagley A former business analyst with Porsche GB, he now runs Redspy Automotive, offering insight and analysis into motor retail trends. This month (p23), he says car manufacturers need to face the reality outside their organisations and how Vms such as Vauxhall are trying to break out of listening to the groupthink within.
Dr Richard parkin As director of valuations & analysis, Parkin coordinates the editorial and analysis team at Glass’s. Prior to joining Glass’s in 2012, he spent six years as a strategy consultant at ernst & Young, with a focus on the automotive industry. In this issue (p24), he examines the dynamics of used car sales by region and why Scottish dealers are among the most profitable.
professor Jim Saker As director of the centre of Automotive management at loughborough University’s Business School, Saker is a key figure behind the drive for management recognition and skills in the motor retail sector. This month (p42), he writes that while fans of the english football team will accept disappointment after disappointment, PcP car buyers will not be so forgiving.
The AM editorial team Email: am@bauermedia.co.uk Website: www.am-online.com
Jeremy Bennett Editor
Tim Rose Managing editor
Tom Seymour Content manager
Hugh Dickerson Google UK’s senior industry head of automotive and an AM Awards judge, Dickerson is responsible for developing digital brands in the UK. This month (p47), he offers car manufacturers and dealers his tips for online video success.
am-online.com August 2014 3
In this issue August 2014 36 FACE To FACE HR oWEN MARKETiNG diRECToR CHRiS HARRiS
Your news
7
Analysis
26 AM poll
News digest This month’s round-up includes a fourth consecutive record-breaking year for John Clark Motor Group, acquisitions for Cambria and Marshall, and average dealer profitability dips slightly.
Market intelligence
Readers share how much of their marketing budget they put into digital.
Insight Building the ideal customer profile
19
12 New car registrations
A 6.2% increase in new car registrations in June ends the best half-year total since 2005.
12
15
Used car values Average used car values decreased in June, according to BCA, down 1.6% on the month before.
Finance Lenders are urging dealers not to ignore used car sales in preparing for plate-change September.
4 August 2014 am-online.com
Your feedback
23 24
Audi is unifying the disparate bits of information held by the manufacturer and its dealers and putting it at the centre of its marketing strategy, says UK head of marketing Nick Ratcliffe.
Moving beyond groupthink Jay Nagley on how manufacturers like Vauxhall are finally embracing reality outside the corporate HQ.
31
36
Used car sales by region Glass’s dr Richard Parkin looks at why Scottish dealers are among the most profitable in the UK.
42
The 21st-century marketing toolkit
The key technology, products and channels that will support dealers’ new and used car marketing and longer-term customer relationship strategy.
Face to face: HR Owen
Marketing director Chris Harris explains how the UK’s largest luxury and supercar dealer mixes events, email and CRM software to entice and analyse potential customers.
View from the business school
While fans of the English football
For the latest motor retail industry news, visit am-online.com Sign up to get AM news daily by email: am-online.com/newsletter
D E A L E R S A N D S U P P L I E R S IN THIS ISSUE:
19 BUiLdiNG THE idEAL CUSToMER PRoFiLE HoW AUdi UK USES iTS dATA
Alphera Financial Services .......................15 Andrews Aldridge........................................45 ASE ....................................................................10 Audi...............................................................9, 19 Autoglym.........................................................52 AutosOnShow................................................32 Black Horse....................................................15 Cambria Automobiles ............................7, 32
31
21st CENTURY MARKETiNG MAKE THE MoST oF THE LATEST diGiTAL TooLS
CitNow .............................................................32 Codeweavers...........................................16, 32 Drayton Group .................................................9 FLA ....................................................................17 Frontline Solutions.......................................16 GardX ................................................................51 Gforces ............................................................32 GoldSand Digital...........................................45
58
JEEP CHERoKEE ANoTHER PoSiTiVE STEP FoR JEEP
Hendy Group ....................................................7 HR Owen.........................................................36 iVendi................................................................32 JCT600................................................................9 Jemca ........................................................31, 44
team will accept disappointment after disappointment, PCP car buyers will not be so forgiving, writes Prof Jim Saker.
43
Have you balanced your marketing budget?
The growing dominance of digital media should not push dealers to ignore more traditional marketing methods.
Showroom
56
Jeep Cherokee Jeep expects the new, higher-quality Cherokee to almost triple its annual registrations.
Jewelultra .......................................................51 John Clark Motor Group ..............................7 John Martin Group.........................................7 Lings....................................................................7 Lookers ...........................................................44 Maindealerdiscount.com..............................7 Manheim...................................................31, 45
58
Mitsubishi Outlander PHEV
61
Mitsubishi ASX
Mitsubishi ..........................................................9
Mitsubishi is showcasing its crossover in a TV documentary sponsorship deal.
MotoNovo.........................................................15
Mazda6 Tourer
Permashine ...................................................52
Hybrid undercuts the competition with a diesel price match.
Marketing Delivery................................31, 43 MarketingFile...................................................7 Marshall Motor Group ...........................9, 43
47
View from Google Google’s Hugh dickerson offers car manufacturers and dealers his tips for online video success.
62
Mazda’s Skyactiv engines offer efficiency alongside performance.
Northridge Finance......................................16 Paintseal..........................................................51 PwC ...................................................................31 Q8 Oils ...............................................................9 Razoom ...........................................................32
Coming soon
51
Putting the shine back into paint protection
Suppliers are investing in developing next generation products and new training materials.
66
In September’s issue of AM Face to Face with Knights BMW and Mini aftersales director ian dow, going back to basics on aftersales and the Citroën C4 Cactus reviewed.
Sky ................................................................7, 32 SsangYong.........................................................9 Supagard ........................................................52 Sutton Park Group .........................................9 Vauxhall...........................................................23 VW Commercial Vehicles ............................9
am-online.com August 2014 5
NEWS DIGEST
T H E N E W S YO U C A N ’ T A F F O R D T O H AV E M I S SE D
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F O R D A I L Y N E W S , V I S I T: w w w.am-online.com T O G E T A M ’ S F R E E D A I L Y N E W S L E T T E R , V I S I T: w w w.am-online.com/newsletter
Marshall acquisition Marshall Motor Group has acquired the Hammond Land Rover business in Halesworth, Suffolk.
JOHN CLARK MOTOR GROUP
John Clark Motor Group has announced a fourth consecutive record-breaking year in 2013, with turnover increasing 33% from 2012 to £470 million. The latest figures from the group, which has 21 car dealerships across the east of Scotland, show an operating profit before interest rise from £5.7m to £8.9m and a 68% rise in group pre-tax profit from £4.4m to £7.4m. It was the first time in the group’s history that unit sales passed 20,000. New vehicle sales volumes increased by 31% to 11,101 units, while used vehicle sales grew by 27% compared with 2012, to 9,023 units. 2013 was a year of expansion for the company. It acquired four new businesses, two Land Rover dealerships, in Cupar and Perth, and two Jaguar branches, in Edinburgh and Perth, introducing the Jaguar franchise to the group for the first time. This acquisition made an overall positive contribution to the trading results, the group said. ■ Read ‘Scots give dealers in the South East a run for their money’ on Page 24
Cambria Automobiles has acquired a Land Rover and Jaguar dealership from Lookers in a £10.47m deal. It is Cambria’s first Land Rover franchise and brings its Jaguar portfolio to six sites, four of which are in or near Greater London. Cambria has acquired the trade and assets of Lookers’ Hadley Green Garages site in Barnet, North London, which Lookers gained when it acquired parent group Colbornes in March for £33.6m.
Dealer profitability The average UK motor dealership made £5,000 profit in May, down from £7,700 last year.
IN BRIEF
£3m profit boost marks record year for John Clark
CAMBRIA AUTOMOBILES
10
HENDY GROUP Multi-franchise dealer group Hendy is using innovative market techniques made available by digital television to target consumers in its southern England heartland. It has previously employed television adverting, but in a blanketed, one-message approach. However, advances in technology mean it can now single out the type of person it wants to see the ads by location or affluence, for example, how many times it wants them to see the ad, at what time of day and during which programmes. The capability is being provided by Sky
and its AdSmart system. Mark Busby, Hendy new car sales and marketing director, is managing the campaigns. “In the next campaign we have planned, I have taken Experian Mosaic data providing demographic, lifestyle and behavioural data, plus Sky’s information on the viewing habits of its customers to identify 91,000 affluent households that will be shown our ad five times over a four-week period,” he said. “This will mean the ad will be viewed 334,000 times at a cost of about 3.6 pence per advert.” ■ Read ‘Your 21st-century marketing toolkit’ on Page 31
HUGH MCMAHON Hugh McMahon, former Lomond Audi owner until its sale to Lookers in 2012, has acquired Scotland’s only RollsRoyce and Aston Martin franchises from John Martin Group’s Murray Motors division in a £3 million deal. McMahon will run the £20m turnover business in Edinburgh with his son Chris. The site will operate under the name Rolls-Royce and Aston Martin Motor Cars Edinburgh.
LINGS Lings in Lowestoft has taken on the Mitsubishi franchise. The Mitsubishi dealership is part of a multi-million refurbishment at the five-acre site and it will open on July 28. Lings employs 95 people across five sites with Honda and bike showrooms in Lowestoft, Watton, Harleston and two in Ipswich.
MARKETINGFILE MarketingFile has launched Touchpoint – a multi-channel direct marketing system. The web-based system enables dealers to analyse and target existing customers and source private buyer and fleet prospect lists. Manufacturers, dealer groups and agencies can set up creative templates for dealerships, which can schedule email and SMS delivery and send personalised direct mail by digital print and post.
M A INDE A LERD I S C O U N T. C O M Maindealerdiscount.com, a website that matched dealers with extra service capacity and customers looking for a discount, is to cease trading. Managing director Darren Bone said he had not been able to make the necessary step change in the number of signedup dealers and service bookings.
am-online.com August 2014 7
NEWS DIGEST
T O R E A D A M ’ S D A I L Y N E W S L E T T E R , V I S I T: w w w . a m - o n l i n e . c o m / n e w s l e t t e r
MARSHALL MOTOR GROUP Marshall Motor Group has acquired the Hammond Land Rover business in Halesworth, Suffolk. It was Marshall’s second acquisition of July. Days earlier, it had bought a Volvo business in Bishops Stortford from Regent Automotive Group, which trades as Volvo Cars London, making Marshall Volvo’s largest UK partner, with seven sites. The addition of the £30 million turnover Halesworth business will take the number of Marshall Land Rover dealerships to six and is part of a wider strategic development to represent Land Rover in Suffolk. Marshall has represented Land Rover for 40 years and its market area now covers most of the East of England from the M1 to the coast, with dealerships in Lincoln, Melton Mowbray, Peterborough, Bedford, Cambridge and now Halesworth.
SU T T ON PA R K GRO U P Aldi has stated its intent to build and open a new store in Coventry despite Sutton Park Group currently occupying the space with its multifranchise dealership Aldi said it is yet to submit a planning application for the location on Shultern Lane, which currently houses Sutton Park Group’s Renault, Kia and Fiat franchises, but is in early negotiations with the landlord to demolish the showroom. A statement on the Sutton Park Group website said that in accordance with its legal right to renew its lease, it has been in advanced negotiations with the landlord to do so and therefore finds the plans “somewhat confusing” and Aldi’s announcement was “premature”.
D R AY T O N G R O U P Drayton Group has made a multimillion pound investment in a newbuild home for Mercedes-Benz of Shrewsbury, becoming the first site outside of Germany to bear the new Mercedes-Benz showroom style.
PEOPLE NEWS CIAN O’BRIEN Cian O’Brien joins Audi UK as its new head of sales operations on September 1. He succeeds Paul Sansom, who has been promoted to managing director of Audi South Africa.
JEREMY DINEEN Q8Oils has appointed Jeremy Dineen as direct sales manager for the UK automotive and manufacturing divisions. He has worked with Unipart Automotive and Euro Car Parts in the UK, as well as Fast Track in the United Arab Emirates.
JIM HUTCHINSON Mitsubishi has reorganised and expanded its field management with the appointment of Jim Hutchinson as its new area manager. Lucy Allberry and Mark Grant have also joined Mitsubishi’s corporate sales team.
Central to the new design is the appearance of a large, illuminated Mercedes-Benz star against a black background on the showroom exterior that will face the major approaches, and will clearly identify the business to customers. The 24-car showroom is double the size of the former premises, and features lounge areas where customers can work or watch their car being serviced on screens relaying activity from the retailer’s 14-bay workshop. A display of more than 60 approved used MercedesBenz cars and improved customer parking are among the other benefits resulting from the move.
FRANK TURNER Bradford-based dealer group JCT600 has appointed Frank Turner as national broker and corporate accounts manager for its growing fleet operation. Turner joins from the broker division of Lease Options NI, where he was sales director.
IAN ARMSTRONG MITSUBISHI More than half (60%) of the Mitsubishi dealer network has signed up to be ‘company car specialists’, which means they have been specifically trained to help company car drivers who are considering a Mitsubishi as their next company car. The catalyst for the scheme has been the increase in enquiries and sales to company car owners for the newly-launched Outlander Plug-in Hybrid Electric Vehicle (PHEV). Any of the existing Mitsubishi dealer network can choose to become a ‘company car specialist’. To do this they need to have a dedicated and trained ‘company car specialist’ and understand the requirements of a company car driver.
VOL K S WAGEN C OMMERCI A L VEHICLES Volkswagen Commercial Vehicles UK has launched a new 10-point customer service programme across its dedicated network of dealers to make sure it can deliver on its servicing promises. The new promises will be delivered by Volkswagen’s commercial vehicle network of 71 sales and service centres, as well as 28 authorised repairers. Kevin Rendell, Volkswagen CV UK head of service & parts operations, told AM that after joining the business in February 2013, he reviewed how its dealers were performing on the previous service programme and adjusted it following customer research. Rendell said: “We were actually already offering a lot of what customers were asking for in the feedback we received, but we just weren’t talking about it enough. “It will also work as a sales tool for the network. We’re not just selling vans; we’re selling a complete service package.”
Ian Armstrong, a former director and dealer principal of East Midlands car dealer group Unity Automotive, has joined SsangYong UK as its dealer commercial manager for the South. Armstrong takes the role vacated by Neil Pemberton, who was appointed technical services and aftersales manager.
MICHAEL HUNT Marshall Motor Group has appointed Michael Hunt as head of aftersales development. Hunt joins from Evans Halshaw where he was head of aftersales for the past six years.
am-online.com August 2014 9
This conference aims to deliver easily digestible ‘chunks’ whilst also throwing a few curved balls to help dealers maintain their momentum and avoid becoming bogged down in the sheer volume of information, innovation and options available in the digital sphere. As well as marketing and social media, the conference looks at the wider aspect of digital including latest technology, data and security.
DIGITAL DEALER
CONFERENCE 2014
SAVE THE DATE: 4 September 2014 The Heritage Motor Centre, Gaydon Headline sponsor: Masterclass sponsors:
For further details, please visit www.amdigitaldealer.co.uk
AMPROMOTION DIGITAL DEALER CONFERENCE
The essential guide to the digital landscape WORKSHOPS
oday’s automotive retail environment is dominated by digital. It is vital to understand how today’s consumer wants to communicate and, more importantly, engage with your business as well as the latest technology that drives the processes to deliver the best customer experience. AM’s Digital Dealer Conference has been a sell-out every year and demand is already high for this year’s event, which takes place at The Heritage Motor Centre, Gaydon, Warwickshire, on Thursday, September 4. The conference gathers a host of experts to help you keep pace in a constantly shifting and rapidly progressing digital landscape. As well as highly charged stage presentations, Digital Dealer includes workshops and the AM Digital Fair, made up of limited but carefully selected trade stands.
T
4th, 2014 Septemberge Motor The Herita Centre Gaydon
Delegates will have even more choice of workshops to attend at this year’s conference. Eight sessions (Marketing Delivery will run twice) will be held, with carefully selected expertise suppliers providing insight into their digital niches covering topics such as analytics and measurement; content creation; and the marketing mix. Conference-goers will be able to attend two workshops. Jeremy Evans Managing director, Marketing Delivery Customers shift effortlessly between traditional and new media and expect dealers to do the same. Terry Hogan Managing director, Motoring.co.uk How to get half-a-million social visits in one week with fresh, unique and engaging content. Luke Carter Head of search, Manheim Retail Services Digital marketing brings people and information together online, enabling dealers to multiply visits, optimise conversions and drive sales. Ali White Marketing and sales director, Calltracks Getting the most from Google Analytics and understanding how Google Universal can provide a holistic marketing measurement view. Peter McCullough Managing director, RAC Cars Exploring online buyer behaviour and the trade-off between ease of use and conversion. Andrew Howells Chairman, CitNOW How to incorporate video in everyday work practices to boost the bottom line.
W H Y Y O U S H O U L D AT T E N D ■ Stay ahead in a fast-paced digital retail arena ■ Thought-provoking and jam-packed content to enhance and extend your digital know-how ■ Tangible and practical advice, which can be readily implemented on return to your dealership ■ Benchmark your mobile strategy against some of the biggest brands ■ Understand how social media reach is evolving ■ From online to showroom: how one manufacturer is aiming to achieve virtual and real integration ■ Digital as a sales driver learn the lessons from one dealer’s reinvention of its business ■ Get under the skin of the connected consumer ■ Get under the bonnet of the connected car ■ Stake your place in today’s digital retail environment to safeguard tomorrow’s success
Node 4 IT masterclass How applying the latest IT thinking and technology can enhance a business proposition. With Sean Booth, managing director of Parkway Volkswagen.
PLENARY SPEAKERS This year’s event sees seven expert speakers take to the main stage, with five already confirmed. Their topics cover the demise of organic reach of social media; the connected car and the connected consumer; the unstoppable growth of mobile and m-commerce; the story of how one retailer transformed its city centre dealership into a rural destination business; and creating a contemporary retail network for the digital age. Ian Plummer Head of sales operations, Volkswagen UK Henry Williams Managing director, Williams Automobiles Alex Kozloff Head of mobile, Internet Advertising Bureau (IAB) Marshall Manson Managing director, EAME, Social@Ogilvy Hugh Dickerson Industry manager (automotive), Google
Tickets are available to dealers and manufacturers. To book, please contact Emma-Louise Kinnaird on 01733 395133, email emma-louise.kinnaird@bauermedia. co.uk or visit www.amdigitaldealer.co.uk
market intelligence 16
the news in depth
Finance
Dealers get a clear message from lenders in the run-up to the September plate-change: Don’t lose focus on used car sales.
n e w c A r r e g i s t r At i o n s
6.2% June rise ends best half-year total since 2005 228,291 new registrations in June takes six-month total to 1,287,265 units need to know n half-year total 10.6% up on 2013 n Alternatively fuelled-vehicle registrations up 51.3% to 23,337 By Tim Rose here were 1,287,265 new cars registered in the first six months of the year – a 10.6% rise and the best half-year total since 2005. the Society of motor manufacturers and traders said consumer demand for efficiency has driven alternatively fuelled-vehicle registrations up 51.3% to 23,337 units yearto-date. the Uk’s new car market is on track for 2.4 million new car registrations in 2014, up more than 6% on last year. Mike hawes, sMMt chief executive, said, “improving economic conditions have helped propel the Uk new car market to a strong first half-
t
voluMe split
June 2014 2013 % change Mkt share ‘14 Mkt share ‘13 Year-to-date 2014 2013 % change Mkt share ‘14 Mkt share ‘13
Total 228,291 214,957 6.2%
Total 1,287,265 1,163,623 10.6%
year performance, with registrations up 10.6% on the same period in 2013. “the overall market has risen faster than we were expecting but, after a bumper march, growth is showing signs of stabilising around our forecast level.”
Diesel 117,411 104,671 12.2% 51.4% 48.7% Diesel 642,873 570,745 12.6% 49.9% 49.0%
Petrol 106,720 107,155 -0.4% 46.7% 49.8% Petrol 621,055 577,451 7.6% 48.2% 49.6%
AFV 4,160 3,131 32.9% 1.8% 1.5% AFV 23,337 15,427 51.3% 1.8% 1.3%
Private 101,615 96,868 4.9% 44.5% 45.1% Private 623,640 557,425 11.9% 48.4% 47.9%
Fleet 113,859 107,877 5.5% 49.9% 50.2% Fleet 602,113 555,543 8.4% 46.8% 47.7%
Business 12,817 10,212 25.5% 5.6% 4.8% Business 61,512 50,655 21.4% 4.8% 4.4%
Av e r A g e u s e d vA l u e s B y s e c t o r
r o l l i n g -y e A r v o l u M e s s i n c e J A n 2 0 1 2 A n d q u A r t e r ly g r o w t h r A t e s t o d A t e
used car values in June stalled, according to BcA, the uk’s largest motor auction group. Average values fell to £7,476 from £7,597, a month-on-month decrease of 1.6%. ex-fleet cars averaged £9,448, a fall of £89, or 0.9%, compared with May. however, the figure was £588, or 6.6%, up year on year. part-exchange car values fell faster since May, dropping 1.8%, or £75, to £3,973, although the average remained 7.6%, or £281, ahead compared with June 2013.
12 August 2014 am-online.com
market intelligence New car registrations n e w c A r r e g i s t r At i o n s
10 -y e A r M A r k e t t r e n d s AvA i l A B l e : w w w.am-online.com/ami
June Marque
2014
Ford Vauxhall Volkswagen BMW nissan Audi Mercedes-Benz Peugeot Toyota Citroën Kia Hyundai Škoda Fiat renault Mini Seat Honda Land rover Volvo Suzuki Mazda Dacia Jaguar Mitsubishi Lexus Porsche Alfa romeo Smart Jeep Subaru Chrysler MG Abarth Maserati Bentley SsangYong Aston Martin Infiniti Chevrolet Lotus Perodua Mia Proton Saab Other British Other Imports Total
29,376 28,304 18,654 15,052 13,524 13,503 11,200 9,684 8,850 7,274 7,260 7,198 6,477 6,463 6,277 5,465 5,075 4,802 4,027 3,915 3,318 2,700 1,931 1,792 1,266 1,076 766 570 467 352 239 212 196 138 134 127 100 94 45 23 22 3 0 0 0 67 273 228,291
% market share 12.87 12.40 8.17 6.59 5.92 5.91 4.91 4.24 3.88 3.19 3.18 3.15 2.84 2.83 2.75 2.39 2.22 2.10 1.76 1.71 1.45 1.18 0.85 0.78 0.55 0.47 0.34 0.25 0.20 0.15 0.10 0.09 0.09 0.06 0.06 0.06 0.04 0.04 0.02 0.01 0.01 0.00 0.00 0.00 0.00 0.03 0.12
5
Year-to-date 2013 31,197 24,870 19,591 14,290 10,602 12,417 9,613 9,887 8,472 6,886 6,742 7,147 6,361 5,710 4,161 5,956 4,428 5,461 4,046 3,127 3,039 2,478 1,829 1,341 416 738 669 445 502 203 175 231 22 123 35 116 36 97 12 1,299 17 15 0 0 0 57 98 214,957
% market share 14.51 11.57 9.11 6.65 4.93 5.78 4.47 4.60 3.94 3.20 3.14 3.32 2.96 2.66 1.94 2.77 2.06 2.54 1.88 1.45 1.41 1.15 0.85 0.62 0.19 0.34 0.31 0.21 0.23 0.09 0.08 0.11 0.01 0.06 0.02 0.05 0.02 0.05 0.01 0.60 0.01 0.01 0.00 0.00 0.00 0.03 0.05
% change -5.84 13.81 -4.78 5.33 27.56 8.75 16.51 -2.05 4.46 5.63 7.68 0.71 1.82 13.19 50.85 -8.24 14.61 -12.07 -0.47 25.20 9.18 8.96 5.58 33.63 204.33 45.80 14.50 28.09 -6.97 73.40 36.57 -8.23 790.91 12.20 282.86 9.48 177.78 -3.09 275.00 -98.23 29.41 -80.00 0.00 0.00 0.00 345.61 -12.24 6.20
2014
% market share 173,554 13.48 141,609 11.00 110,666 8.60 75,122 5.84 70,929 5.51 83,761 6.51 63,866 4.96 57,428 4.46 51,064 3.97 44,090 3.43 40,849 3.17 42,732 3.32 39,176 3.04 34,870 2.71 32,064 2.49 21,408 1.66 27,342 2.12 29,919 2.32 30,019 2.33 19,850 1.54 19,726 1.53 19,887 1.54 12,976 1.01 9,826 0.76 6,000 0.47 5,631 0.44 4,640 0.36 2,957 0.23 2,527 0.20 1,628 0.13 1,309 0.10 1,084 0.08 1,204 0.09 789 0.06 564 0.04 810 0.06 738 0.06 482 0.04 226 0.02 2,759 0.21 95 0.01 22 0.00 5 0.00 1 0.00 1 0.00 432 0.03 628 0.05 1,287,265
2013
% market share 163,396 14.04 132,640 11.40 101,317 8.71 65,214 5.60 61,661 5.30 73,767 6.34 54,637 4.70 56,253 4.83 47,358 4.07 42,784 3.68 37,178 3.20 39,135 3.36 32,384 2.78 29,423 2.53 20,035 1.72 25,320 2.18 22,752 1.96 30,226 2.60 30,120 2.59 16,780 1.44 17,120 1.47 15,642 1.34 6,994 0.60 8,658 0.74 5,034 0.43 4,114 0.35 3,901 0.34 2,787 0.24 2,921 0.25 958 0.08 1,100 0.09 1,379 0.12 129 0.01 711 0.06 174 0.01 596 0.05 291 0.03 530 0.05 238 0.02 6,764 0.58 97 0.01 152 0.01 0 0.00 15 0.00 3 0.00 422 0.04 513 0.04 1,163,623
% change 6.22 6.76 9.23 15.19 15.03 13.55 16.89 2.09 7.83 3.05 9.87 9.19 20.97 18.51 60.04 -15.45 20.17 -1.02 -0.34 18.30 15.22 27.14 85.53 13.49 19.19 36.87 18.94 6.10 -13.49 69.94 19.00 -21.39 833.33 10.97 224.14 35.91 153.61 -9.06 -5.04 -59.21 -2.06 -85.53 0.00 -93.33 -66.67 47.87 -15.01 10.63
Biggest growers y e A r t o d At e
1 2 3 4 5 6 7 8 9 10
BrAnD MG Maserati SsangYong Dacia Jeep Renault Lexus Bentley Mazda Škoda
YTD (%) 833.33 224.14 153.61 85.53 69.94 60.04 36.87 35.91 27.14 20.97
Mg’s management has something to smile about now we’re past the mid-year point. the brand, celebrating its 90th year in 2014, has already surpassed its 2013 registrations total thanks to compelling offers on its competitive Mg3 supermini. its growth is also putting it under consideration by more retailers – it took on its 50th dealer this month and aims for 80 by year-end. similar success is also being enjoyed by Maserati and ssangyong. led by appealing product, both are expanding their networks steadily.
10 9 8 7 6 5 4 3 2 1
BrAnD Lotus Infiniti Aston Martin Smart Mini Chrysler Chevrolet Saab Perodua Proton
YTD (%) -2.06 -5.04 -9.06 -13.49 -15.45 -21.39 -59.21 -66.67 -85.53 -93.33
Biggest FA l l er s y e A r t o d At e
9 am-online.com August 2014 13
SHOWROOM 58
Mitsubishi Outlander PHEV
It’s a game-changing plug-in hybrid that undercuts rivals thanks to a diesel price match.
THE CARS DRIVING YOUR BUSINESS
61
Mitsubishi ASX
The Japanese brand has been showcasing its compact crossover in a TV prime-time documentary sponsorship deal.
62
Mazda6 Tourer
After Mazda reveals the second of its Skyactiv diesel engines, we see how the unit in our car blends performance with efficiency.
FIRST DRIVE: JEEP CHEROKEE – ON SALE NOW
Will the Cherokee put Jeep on the road to recovery?
The Cherokee is another positive step for Jeep, following the Grand Cherokee
Jeep expects the new, higherquality Cherokee to almost triple its annual registrations By Tom Seymour he Jeep Cherokee is phase two of the brand’s recovery plan after parent company Fiat Chrysler Automobiles (FCA) came very close to dropping the franchise in the UK in 2012. Jeep will become the lead franchise for Chrysler Jeep dealers with the new Cherokee leading volumes until the Fiat 500L-derived Renegade arrives next year. Steve Zanlunghi, Fiat Group Automobiles UK chief executive and managing director, told AM the Cherokee would add 2,000 units to Jeep volumes in its first six months, building up to approximately 4,000 units in a full year. Jeep ended 2013
T
56 August 2014 am-online.com
“In order for sales to take off in Europe, it needs to abandon some of its American heritage”
with registrations of 2,229 units so it’s clear what kind of an impact Zanlunghi is expecting the Cherokee to have. Jeep has already posted 1,276 units in the first five months of the year and increased market share from 0.10% to 0.12% YTD. Jeep has a strong badge to trade on and the business is expecting to pull in conquest sales on the back of improved build quality and styling that is more to European tastes. It’s a difficult line to walk for Jeep. In order for sales to take off in Europe, it needs to abandon some of its American heritage, but that quintessential Americana is also what gives the badge its strength. There are little nods to Jeep’s past, with a WWII Jeep silhouette on the interior of the windscreen, but this is very much being marketed as an on-road vehicle, rather than a mud-plugger. The interior quality in the cabin has been improved massively over previous generations. Zanlunghi told AM that under General Motors’ ownership, Chrysler engineers were told to strip out cost from the interior on previous Jeeps to stop it competing with internal products. Under Fiat’s ownership, fit
F O R M O R E R E V I E W S V I S I T: w w w . a m - o n l i n e . c o m / r o a d t e s t s
S P EC I F I C AT I O N Price £25,495-£35,695 Engine 2.0-litre 140bhp/170bhp diesel Performance 0-60mph 10.3-12 secs; 117-119mph top speed Transmission 6-sp man; 9-sp auto Efficiency 48.7-53.3mpg; 139-154g/km CO2 RV 3yr/30k 36% Rivals Audi Q3, BMW X3, Land Rover Discovery Sport
WHAT YOUR CUSTOMERS WILL BE READING ABOUT THE X-TRAIL
The 2.0-litre diesel has CO2 emissions of 139g/km
Interior quality has greatly improved
and finish has been improved on the Cherokee (which is based on the Alfa Romeo Giulietta platform). The dials on the dash are more tactile and any areas the driver touches are soft-touch plastic. There’s still a little bit of hard plastic to be found, but it’s a big improvement. One concerning area, however, was the fitment of the centre console in the back of the Cherokee, which was quite loose on the two test cars AM tried on the UK launch. The Cherokee has extremely comfortable and squashy seats. There’s not much lumbar support, but the seats take some of the harshness out of the new Jeep’s ride. Initially, the new Cherokee will be available with a choice of 140bhp and 170bhp 2.0-litre turbo-diesel engines. The topselling higher powered diesel is capable of 48.7mpg and has CO2 emissions of 154g/km. Customers can choose from four trim levels: Longitude, Longitude+, Limited and Trailhawk. The Trailhawk trim will only be available by special order towards the end of this year and will be powered by a 3.2-litre petrol engine.
The higher-powered diesel is adequate and the nine-speed auto is smooth enough, but it’s not as refined as the ninespeed available with Land Rover. The Cherokee actually feels slightly better to drive in manual mode with the lowerpowered diesel, there’s more control over the gears and there doesn’t appear to be a huge performance difference on the road despite a 30bhp drop in power. While the Cherokee starts at £25,495, the majority of sales will be the £35,695 Limited 9-speed automatic model. This price point puts Jeep right up against some tough opposition, such as the BMW X3 and Audi Q5. Customers could also be looking at a top-of-the-range Kia Sportage and still have more than £6,000 to spare. The arrival of the Land Rover Discovery Sport later this year (the replacement for the Freelander) will likely add another tough competitor to crossover customers’ consideration lists. Part of Jeep’s marketing strategy will be to invite comparison. Its ‘dare to compare’ campaign will let customers make like-for-like comparisons against competitors and Jeep is particularly keen to push the technology angle. Each model features a thin-film transistor (TFT) screen in the instrument cluster available in either monochrome or colour. On the centre console there’s a choice between a five-inch colour touch-screen for the Uconnect media system and, in a first for this class, an 8.4-inch display. The entry-level Longitude model comes with cruise control, parking sensors and dual-zone air-conditioning as standard. One highlight is an optional wireless smartphone charging pad on the centre console. It’s a neat addition and in this case, Jeep is ahead of the smartphone curve, with only the newest phones being compatible with the device (dealers can include sleeves which will charge any phone, but this somewhat defeats the purpose). The Cherokee is another positive step for Jeep, following the Grand Cherokee, with improved quality over the previous generation and technology which will help it compete in the sector. While it’s not strong enough to rival German products on style and quality, it is still a credible option that Jeep is hoping will help it onto customer consideration lists.
AUTOCAR The new Jeep Cherokee is an improvement over the old model, but it isn’t yet in the league of German competitors. AUTO EXPRESS At long last, Jeep has come up with a crossover that’s a credible mainstream choice. The new Cherokee trails the class leaders because of its poor handling, lack of reassuring steering weight and relatively high noise levels, but it remains an encouraging first step.
4,000 the registrations Steve Zanlunghi, Fiat Group Automobiles UK chief executive, expects the Cherokee to add to Jeep volumes in its first full year
M A N U FA C T U R E R FINANCE OFFER Model Jeep Cherokee 2.0 Longitude 140 FWD Finance type PCP Deposit £4,179 Term 36 months Monthly payment £299 Final payment £11,810 APR 1.9%
am-online.com August 2014 57
IN SEPTEMBER ’S ISSUE
C O N TA C T U S
PUBLISHED AUGUST 22
AM, Media House, Lynch Wood, Peterborough PE2 6EA Email: AM@bauermedia.co.uk If you or someone you know are aged 16-24 and are interested in work experience opportunities at Bauer Media go to www.gothinkbig.co.uk Editor Jeremy Bennett 01733 468261 Managing editor Tim Rose 01733 468266 Brand content manager Tom Seymour Industry editor Tony Willard AM production Head of publishing Luke Neal 01733 468262 Production editor Finbarr O’Reilly 01733 468267 Designer Erika Small 01733 468312 Contributors Jay Nagley, Prof Jim Saker, Dr Richard Parkin, Debbie Kirlew, Hugh Dickerson, Chris Phillips, Chris Lowndes AM advertising Commercial director Sarah Crown 01733 366466 Group advertisement manager Sheryl Graham 01733 366467 Project managers Leanne Patterson 01733 468332 Kerry Unwin 01733 468327 Angela Price Lucy Peacock 01733 468338 Account managers Sara Donald 01733 366474 Richard Kerr 01733 366473 Kelly Crown 01733 366364 Recruitment enquiries Richard Kerr 01733 366473
FACE TO FACE:
Knights
AM publishing Managing director Tim Lucas 01733 468340 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan
Ian Dow, Knights BMW and Mini aftersales director, tells AM how the group is driving up efficiency in its workshops and aftersales teams.
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Taking aftersales back to basics The right fix at the right time, every time, is the holy grail for workshops. Experts share their views on how to achieve it.
Technologies for aftersales
Citroën C4 Cactus
A look at a selection of technologies designed to improve aftersales performance.
ADVERTISERS’ INDEX Armchair Answercall........................39 Barclays Partner Finance..................2 Cambridge Sound .............................39 Chris Eastwood Automotive ...........65
66 August 2014 am-online.com
The Airbump parking damage protection on Citroën’s new compact hatchback may polarise prospective buyers, but the French brand needs this car to succeed.
Close Motor Finance............................6 Digital Blurb..................................34-35 DSG Financial Services.....................18 Experian................................................30 Greenhous Re-marketing Service 63 Heritage Automotive .........................64 Infomedia ..............................................68 Institute of the Motor Industry .......27 iVendi......................................................33
Jewelultra.......................................50/52 Lloyds Banking Group .....................14 Loughborough University ................60 Manheim Retail Services...........25/59 Mapfre Abraxas uk..............................8 Marketing Delivery ............................44 Marketingfile........................................49 Marsh Finance.....................................60 Northridge Finance............................62
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Paragon Automotive..........................11 Pendragon............................................65 RAB.........................................................22 Stephen James Group Trading .....65 Supagard...............................................53 Symco Training....................................26 Trader Publishing ....................... 28-29 Trusted Dealers ..................................10 Williams Manchester .......................64