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automotive management
The Japanese ‘small car’ brand has pulled off a big UK turnaround
volume vsvalues
Carmakers tell dealers they want great customer service, but pay them most to push metal. Will it ever end? P33 t ec h N o l o gY / P 3 9
ProPert Y / P53
Fa c e t o Fa c e / P 4 2
Using IT to get the most from your aftersales
Is the future of the dealership digital-only?
How a long-term view led Rybrook Warwick BMW to world-class aftersales
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How have volume bonuses affected your dealerships’ values?
T
he balance of target-driven volume sales versus car manufacturer controls on the customer’s brand experience is a theme we’re exploring in this issue. It stems from conversations with several dealers about the rapid increase in new car sales targets they have experienced in the past 18 months. In the depths of the recession, it seemed every national sales company AM interviewed wanted to show its softer, caring side. Customer retention programmes, soft skills and engagement processes for their franchised networks were the hot topic. But now that carmakers are ramping up their volume-related bonuses again, will that get in the way of dealers’ values? Industry experts share their views on page 33. One carmaker that seems to strike a reasonable balance is Suzuki. Our analysis on page 27 shows the retail-focused brand is steadily improving volumes but it understands the needs for relationships and allows its dealers a significant level of entrepreneurship. It enjoys above-average customer loyalty and high ratings for dealer satisfaction in return. That can’t be a coincidence, surely? The AM editorial team
philip nothard He is retail and consumer valuations editor at CAP, which he joined in 2010 after two decades working in motor retail, culminating in running dealerships for European Motor Holdings, Lythgoe Motor Group and Arnold Clark. In this issue (p31), he examines whether demand in the used car market is being sustained and if the returns are still there. Jay nagley A former business analyst with Porsche GB, he now runs Redspy Automotive, offering insight and analysis into motor retail trends. This month (p30), he looks at how many models a carmaker needs to be mainstream. 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 (p52), he suggests volume and values are not mutually exclusive but problems arise if incentives unfairly favour one.
Check your inbox for your
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am-online.com May 2014 5
In this issue May 2014
42
FACE TO FACE RYBROOK WARWICK BMW’S SIMON BIRCHALL
Your news
9
News digest This month’s round-up includes good results for HR Owen, Ridgeway Group launches its own training academy and Honda cuts production at Swindon.
Market intelligence
14 16 19
22
Used car values March volumes were up 11%, but some auctioneers warned of Easter sales downturn.
25
27
6 May 2014 am-online.com
30
31 33
Have your say
AM readers vote on whether manufacturers incentivise volume targets or customer service more.
Analysis
Finance Alphera launches a loans package for new and used EVs and hybrids, DSG hires ex-OFT official to lead compliance and Codeweavers launches finance comparison tool.
Inflation has finally been overtaken by rises in weekly earnings, which grew by 1.7% in February.
Your feedback
New car registrations In March, new car registrations hit their highest point in a decade.
Economic indicators
Suzuki’s big turnaround Suzuki has turned its lack of new products over the past few years to its advantage and is enjoying sales growth and rising dealer satisfaction.
Market segmentation Jay Nagley on how many models a modern car manufacturer needs to cover the market.
Is used demand still there? As registrations explode, is demand in the used market being sustained and are the returns still there?
The incentives issue Carmakers tell dealers they want great customer service, but sales demands mean shifting units still carries a higher bonus. AM asks analysts, manufacturers and dealers if there is a better model.
Insight
39 42
IT and aftersales
Moving from manual systems to computerised databases integrated across departments is paying off for dealers and their customers.
Face to face: Rybrook Warwick BMW
Daily targets and a focus on every individual have driven the AM Awards winner for Excellence in Aftersales to global success.
For the latest motor retail industry news, visit am-online.com Sign up to get AM news daily by email: am-online.com/newsletter
27
ANALYSIS SUZUKI’S BIG TURNAROUND
DEALERS AND SUPPLIERS IN THIS ISSUE: Alphera Financial Services .......................19 ASE ............................................................... 9, 12 Audi.............................................................10, 53 Automotive Property Consultancy .........56 BCA....................................................................16 Bentley..............................................................10 Black Horse Motor Finance......................14 Brookside Garage...........................................9
PROPERTY THE LATEST SHOWROOM TRENDS
BTC ....................................................................39
53
Callow Marsh...................................................9 Codeweavers..................................................20 Cooper Solutions..........................................40 DSG Financial Services........................19, 20 EMG .....................................................................9 Ferrari ..............................................................10 FFDL.................................................................34
33
FLA ....................................................................21
VOLUME VS VALUES AM LOOKS AT THE INCENTIVES ISSUE
Gemini Systems ...........................................40 Grant Thornton.............................................33 Greenhous......................................................40 Hendy Group ....................................................9 Honda................................................................12
49
52 53
AM Executive Breakfast Club report
Business guru Geoff Burch wants motor retailers to foster loyalty and stop measuring satisfaction.
View from the business school Professor Jim Saker ponders the effect of PCPs on loyalty and dealer incentives.
61 62
Showroom technology
A look at the latest trends and features as manufacturers drive up the standards of their retail environments.
62
vehicle, Dacia’s estate car caters for a customer who truly wants only what they’ll pay for.
HR Owen............................................................9
Mazda6 Tourer
Jones Architecture and Design ...............55
Hyundai ............................................................10 ICDP..................................................................34
Comparison websites show our longtermer is competitively positioned against more household names.
Kia ......................................................................35
Mitsubishi ASX
Mann Island ....................................................19
The Japanese compact crossover can push its pulling power in an increasingly competitive marketplace.
Seat Leon SE 1.6 TDI
Seat’s UK director lays out why the Leon will be flying the flag for the brand in the UK.
Loyalty Logistics............................................39 Manheim..........................................................16 Mitsubishi ........................................................35 MotoNovo.........................................................19 Pentagon..........................................................10 Peter Vardy .......................................................9 Pinewood........................................................40 PSA Peugeot Citroën...................................10 PwC ...................................................................14 Rapleys.............................................................56
Showroom
58 60
Porsche Macan Porsche has succeeded in building the sportiest of SUVs, but at 1,000 UK units, it will be rare.
Dacia Logan MCV
Billed as a maximum capacity
Razoom ............................................................39
Coming soon
66
In the next issue of AM Face to face with Holdcroft, winner of the AM Award for Best Fleet Dealer; how dealer groups can ensure their dealerships engage with social media; and the Kia Soul reviewed.
Reynolds and Reynolds ..............................39 Ridgeway Group..............................................9 Rybrook Warwick BMW............................ 42 SMMT................................................................14 Suzuki ........................................................27, 35 TT Automotive Consulting .........................35 Westover Group ............................................10
am-online.com May 2014 7
market intelligence 16
Used car values
the latest data on nearly-new, ex-fleet and part-exchange car values from the Uk’s main auctions.
19
the news in depth
22
Finance
responses from the industry as one finance supplier launches products specifically supporting hybrid and electric vehicles.
economic indicators
a selection of the key national statistics that will help Uk motor retailers to refine their business opportunities.
new cAr MArket
March registrations hit highest point in a decade First-quarter trend could see full-year market volume reach 2.4 million units
2004
140
-4%
120 100
-51%
80 56%
60 40 20
13%
128%
Total 464,824 394,806 17.7%
Total 688,122 605,198 13.7%
14 May 2014 am-online.com
Diesel 222,409 187,239 18.8% 47.8% 47.4% Diesel 334,962 292,405 14.6% 48.7% 48.3%
Petrol 233,702 202,249 15.6% 50.3% 51.2% Petrol 340,376 304,354 11.8% 49.5% 50.3%
AFV 8,713 5,318 63.8% 1.9% 1.3% AFV 12,784 8,439 51.5% 1.9% 1.4%
-28%
41%
-27%
Private 246,660 204,271 20.8% 53.1% 51.7% Private 347,958 294,609 18.1% 50.6% 48.7%
Fleet 194,955 171,726 13.5% 41.9% 43.5% Fleet 307,193 282,702 8.7% 44.6% 46.7%
Business 23,209 18,809 23.4% 5.0% 4.8% Business 32,971 27,887 18.2% 4.8% 4.6%
M PV
0
volUMe split
February 2014 2013 % change Mkt share ‘14 Mkt share ‘13 Year-to-date 2014 2013 % change Mkt share ‘14 Mkt share ‘13
2014
160
Sp or Du ts al Pu rp os e
t
7%
180
Lu xu ry
By Tim Rose he plate-change in march saw new car registrations rise 17.7% year-on-year to 464,824 units. the Society of motor manufacturers and traders (Smmt) said the monthly figure was the highest since march 2004, which was 2,130 units higher. Ford’s Fiesta and Focus led the market, accounting for 42,613 registrations on their own. march’s campaign is typically the year’s biggest, accounting for almost a fifth of the full-year market. the result could suggest a total industry volume of almost 2.4m units for 2014. Since the start of this year, new car
n e w c A r r e g i s t r At i o n s B y s e g M e n t ( p l U s p e r c e n tA g e c h A n g e ) , M A r 2 0 0 4 t o M A r 2 014
M ini Su pe rm Lo in we rM i ed ium Up pe rM ed ium Ex ec ut ive
n March total hits 464,824 units n Alternatively fuelled vehicles rose 64% to 8,713 registrations
registrations have risen 13.7% yearon-year to 688,122 units. Private registrations are up 18.1%, while the fleet market is 13.5% ahead. the march result was “a surprisingly strong level of growth and a reflection of intensifying consumer confidence and the availability of great new products”, said Mike hawes, sMMt chief executive. “given the past six years of subdued economic performance across the Uk, there is still a substantial margin of pent-up demand that is contributing to a strong new and used car market. “there has never been a better time to buy a new car, thanks to attractive finance deals and advanced technologies that often make new cars cheaper to run. We expect the market to continue to perform positively for the rest of the year, albeit at a more modest rate.” chris sutton, managing director at Black horse Motor Finance, said its
New car registrations, thousands
need to know
data showed record transactions in march, with PcPs continuing to be popular. “With the historic and continued low interest rates, which are also influencing improved sales through low-rate finance, we would also expect to see increased use of car finance in 2014 by potential car buyers,” he said. phil harrold, automotive partner, pwc, said: “the threat of rising interest rates may act as a brake on demand in the future; hence my belief is that demand will return to more stable growth rates. “One feature worthy of note is the growth in alternatively fuelled vehicles, which have risen 64% to 8,713 registrations.”
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 A t: w w w . a m - o n l i n e . c o m / a m i
February Marque
2014
Ford Vauxhall Volkswagen Audi BMW nissan Mercedes-Benz Peugeot Toyota Citroën Hyundai Kia renault Honda Skoda Fiat Land rover Seat Mazda Suzuki Volvo Mini Dacia Jaguar Lexus Mitsubishi Porsche Chevrolet Alfa romeo Smart Subaru Jeep Chrysler MG Abarth SsangYong Bentley Aston Martin Maserati Infiniti Lotus Perodua Saab Mia Proton Other British Other Imports Total
63,149 50,068 36,276 28,841 26,977 25,529 22,369 21,564 19,148 15,601 14,930 14,787 13,805 13,036 12,907 12,749 11,987 9,429 8,576 8,472 6,827 6,769 4,973 4,150 2,142 1,830 1,466 1,329 1,134 823 505 441 409 361 305 295 250 199 103 34 26 2 1 0 0 104 146 464,824
% market share 13.59 10.77 7.80 6.20 5.80 5.49 4.81 4.64 4.12 3.36 3.21 3.18 2.97 2.80 2.78 2.74 2.58 2.03 1.84 1.82 1.47 1.46 1.07 0.89 0.46 0.39 0.32 0.29 0.24 0.18 0.11 0.09 0.09 0.08 0.07 0.06 0.05 0.04 0.02 0.01 0.01 0.00 0.00 0.00 0.00 0.02 0.03
Year-to-date 2013 54,702 42,017 31,091 25,452 21,767 20,658 18,870 19,857 17,925 14,606 12,157 12,608 6,493 12,471 9,711 10,020 12,994 6,828 6,092 7,089 5,736 9,150 1,651 3,505 1,550 2,185 1,097 2,080 964 987 519 312 513 41 266 90 148 141 52 104 37 55 0 0 8 69 138 394,806
% market share 13.86 10.64 7.88 6.45 5.51 5.23 4.78 5.03 4.54 3.70 3.08 3.19 1.64 3.16 2.46 2.54 3.29 1.73 1.54 1.80 1.45 2.32 0.42 0.89 0.39 0.55 0.28 0.53 0.24 0.25 0.13 0.08 0.13 0.01 0.07 0.02 0.04 0.04 0.01 0.03 0.01 0.01 0.00 0.00 0.00 0.02 0.03
% change 15.44 19.16 16.68 13.32 23.94 23.58 18.54 8.60 6.82 6.81 22.81 17.28 112.61 4.53 32.91 27.24 -7.75 38.09 40.77 19.51 19.02 -26.02 201.21 18.40 38.19 -16.25 33.64 -36.11 17.63 -16.62 -2.70 41.35 -20.27 780.49 14.66 227.78 68.92 41.13 98.08 -67.31 -29.73 -96.36 0.00 0.00 -100.00 50.72 5.80 17.73
2014 94,876 74,292 56,271 43,766 37,937 37,808 33,799 32,433 27,732 24,178 23,103 21,608 17,656 18,265 20,307 18,782 17,098 14,023 12,487 11,520 9,909 9,767 6,821 5,474 3,040 2,727 2,140 2,561 1,576 1,290 670 716 590 546 420 429 472 257 187 116 43 12 1 5 1 202 209 688,122
% market share 13.79 10.80 8.18 6.36 5.51 5.49 4.91 4.71 4.03 3.51 3.36 3.14 2.57 2.65 2.95 2.73 2.48 2.04 1.81 1.67 1.44 1.42 0.99 0.80 0.44 0.40 0.31 0.37 0.23 0.19 0.10 0.10 0.09 0.08 0.06 0.06 0.07 0.04 0.03 0.02 0.01 0.00 0.00 0.00 0.00 0.03 0.03
2013 84,347 69,227 49,260 38,262 31,322 33,931 29,002 31,260 26,065 22,187 19,986 19,204 9,806 18,144 15,504 14,877 18,765 10,457 9,075 9,956 8,926 11,934 1,978 4,978 2,261 3,043 1,660 3,027 1,486 1,464 669 506 725 81 378 163 262 259 87 120 42 98 1 0 12 186 215 605,198
% market share 13.94 11.44 8.14 6.32 5.18 5.61 4.79 5.17 4.31 3.67 3.30 3.17 1.62 3.00 2.56 2.46 3.10 1.73 1.50 1.65 1.47 1.97 0.33 0.82 0.37 0.50 0.27 0.50 0.25 0.24 0.11 0.08 0.12 0.01 0.06 0.03 0.04 0.04 0.01 0.02 0.01 0.02 0.00 0.00 0.00 0.03 0.04
% change 12.48 7.32 14.23 14.39 21.12 11.43 16.54 3.75 6.40 8.97 15.60 12.52 80.05 0.67 30.98 26.25 -8.88 34.10 37.60 15.71 11.01 -18.16 244.84 9.96 34.45 -10.38 28.92 -15.39 6.06 -11.89 0.15 41.50 -18.62 574.07 11.11 163.19 80.15 -0.77 114.94 -3.33 2.38 -87.76 0.00 0.00 -91.67 8.60 -2.79 13.70
Biggest growers y e A r t o d At e
1 2 3 4 5 6 7 8 9 10
BrAnD MG Dacia SsangYong Maserati Bentley Renault Jeep Mazda Lexus Seat
YTD (%) 574.07 244.84 163.19 114.94 80.15 80.05 41.50 37.60 34.45 34.10
March 2013 was very slow for niche brand Mg. this year, however, it has rocketed to the top of the growth league, ahead of rival value-positioned brands dacia and ssangyong. what is most impressive based on actual volume is renault’s arrival in the top 10 growers. A focused March campaign has helped the French brand add more than one percentage point of market share during the first quarter. Add on sister brand dacia’s performance and the renault network is now outperforming hyundai’s.
10 9 8 7 6 5 4 3 2 1
BrAnD Aston Martin Infiniti Land Rover Mitsubishi Smart Chevrolet Mini Chrysler Perodua Proton
YTD (%) -0.77 -3.33 -8.88 -10.38 -11.89 -15.39 -18.16 -18.62 -87.76 -91.67
Biggest FA l l er s y e A r t o d At e
am-online.com May 2014 15
MArKET iNTElliGENCE Used car values
Volumes up 11% on March 2013 Greater supplies of older vehicles behind 3.4% fall in month-on-month values to £5,259 Need To KNow
Av e R A g e U S e d vA l U e S B y S e CTo R – R o l l i N g y e A R
n 110,471 used cars sold in March, up 15% on February n Average price of used cars sold at auction fell to £5,259 n Concerns over sales downturn over easter break By Tim Rose arch recorded a 15% rise in used car wholesale volume over the previous month, according to the National Association of Motor Auctions (NAMA). The 110,471 units sold was also an increase of 10,563 units or 11% on March 2013. The relative increase in supply of older vehicles, particularly part-exchanges, was the principal reason behind an average value decline of 3.4% since February, to £5,259. Year-on-year, the average value was 6% ahead. The proportion of cars selling first time held flat at 64%. NAMA said the Easter break this month raised concerns in the trade that car sales may experience a downturn, however it is certain that values are not likely to see many major downward movements in the coming weeks. “Even if retail activity diminishes, buyers still need to bring stock levels back in line so demand will challenge supply for some weeks to come,” it said.
M
Trade-in disposal The UK’s largest motor auction group, BCA, reported its average value for dealer part-exchanges in March rose £109 or 2.8% to a record level of £3,906. Year-on-year March values were ahead by £340 or 9.5%. The average mileage and age of part-exchanges was lower than a year previously. At Manheim’s auction rooms the average part-exchange value for March was up £69 month-on-month to £3,285. Year-on-year the average value was 1.7% or £55 higher despite average age and mileage having increased. “We saw greater volumes from dealer part-exchange sources and a small increase in fleet volumes,” said BCA’s UK operations director Simon Henstock.
BCA’s average value for dealer part-exchanges in March rose to a record £3,906 Retail stock acquisition Manheim’s Market Analysis for March showed the average selling price of ex-fleet vehicles rose to £7,791, a month-onmonth rise of £715 or 10.1%. The figure was £1,076 higher yearon-year, attributed to a small fall in age and mileage. daren wiseman, valuations services manager at Manheim Auctions, said: “The headline figure of £7,791 has been strengthened in March due to an increase in market volume generated by good-quality, late-year, low-mileage de-fleeted company cars. The seasonal influx in part-exchanges following the recent plate change has had a positive impact on the average selling price. BCA’s Pulse report shows the average value of its ex-fleet vehicles in March also reached a new high. The average value of £9,572 was £381 or 4.1% up on February and 9.5% or £838 ahead year-on-year. BCA’s Henstock warned that the market was already showing signs of softening in the run up to Easter and if supply begins to outstrip demand then average values will come under pressure.
yeAR-oN-yeAR Fleet/leasing Mar 2013 40.37 Mar 2014 40.17 46,014 45,575 £8,734 £9,572 97.68% 43.81% Part-exchange Mar 2013 87.62 Mar 2014 88.52 72,179 70,915 £3,566 £3,906 95.86% 96.74% Nearly new Mar 2014 8.63 10,109 £20,315 100.55%
BCA warned the market was showing signs of softening before easter
16 May 2014 am-online.com
Average age (months) Average mileage Average value Sales vs CAP
HAVE YOUR SAY
@amchatter
AM POLL
Does your manufacturer incentivise you more to hit your volume target than to keep customers satisfied? ■ Yes 79%
■ No 21% Volume targets trump customer satisfaction, according to AM’s latest online poll. Almost 80% of respondents said they are pushed for volume targets rather than keeping customers satisfied. The trend has prompted much discussion within the industry about a potential change in culture needed within UK motor retail (see ‘Volume vs Values’ on page 33).
Are you considering ending offering GAP due to proposed regulations from the FCA? ■ Yes 25%
■ No 75% Three-quarters of dealers are confident they will continue to offer GAP to customers despite the Financial Conduct Authority’s proposals to tighten regulation around how the product is sold. Some 75% of respondents to the poll said they would continue to offer GAP, while 25% were considering ending sale of the product. The FCA has proposed a number of changes to the way general insurance products are sold in the dealership. It could mean that while dealers can explain and offer GAP when selling a car, it cannot be sold when the car is purchased. Some dealers are restructuring their processes to fit with the FCA’s recommendations. One dealer comment on the poll said: “We have already ended sales of GAP. The risk of aggravation in the future is not worth it.” ■ Current poll: Do you think Peugeot Citroën’s model cull is a positive step for the company in the UK? Please leave a comment when you vote. Vote online at am-online.com/polls/
AM PROMOTION
HOW TO SELL MORE AIR-CON SERVICING How good are your service staff at selling air-conditioning servicing, asks Simon Bowkett of Symco Training Now is a great time to be talking to your customers about servicing their air-conditioning and if you are reviewing the way you do that, you may want to consider this approach to painting a picture in the customer’s mind. It’s an idea I picked up from a colleague, Tony Sexton, and it’s featured in my latest training video on the AM website this month (www.am-online.com/symco, or on my own website, www.symcotraining.co.uk). Tony would tell his customers that when it comes to air-conditioning, it’s really important to get it serviced – and not just because of potential leaks, etc. “Air-conditioning,” he would say, “is a bit like having a hanky. “Can you imagine having a hanky whenever you sneezed or coughed – but you had it for three years. At the end of three years, wouldn’t you want to get it washed? It’s no different with your air-conditioning system, we really need to get it serviced.” Sell the value, not price I thought that was a great way of selling the value of air-con servicing and, if you try it, I think it could work really well for you. Because to sell it successfully, you need to be able to build value rather than simply quote a price. You need to be able to tell customers exactly what you are doing when you service their air-con system, and that means being able to communicate the features, advantages and benefits. For example: ■ Features – inspect the entire system for signs of leakage, clean condenser fins, measure temperature output, etc. ■ Advantages – factory-trained technicians, manufacturer parts only, 12-month/12,000-mile warranty, etc. ■ Benefits – extends life of major components, identifies leaks to prevent major repairs, etc. Identify the features, advantages and benefits to customers of an air-conditioning service first, then shop the competition to find out how much they are charging and what their air-conditioning service actually includes. Then create a script for your service advisers or call centre staff that builds value.
Improve your selling skills online
Register for my internet channel, www.Symco.TV, and receive some free credits. Follow me on Twitter @SymcoSimon or call Symco Training on 01829 760 679.
am-online.com May 2014 25
SHOWROOM 60
Dacia logan mcv
Billed as a maximum capacity vehicle, Dacia’s estate car caters for a customer who truly wants only what they’ll pay for.
the cars Driving your Business
61
mazda6 tourer
A trawl of comparison websites reveals our long-term test car is competitively positioned against more household names.
62
mitsubishi asX
The Japanese compact crossover can emphasise its pulling power in an increasingly competitive marketplace.
63
guess the car
Paul Martindale of Slaters of Abergele correctly named last issue’s mystery car. Will you identify the next one?
First Drive: porsche macan – on sale now
Porsche builds the sportiest SUV
the macan could be a licence to print money for porsche
Porsche had little option but to introduce a crossover, but at 1,000 UK units it will be rare By Tom Seymour he Macan’s presence in Porsche’s line-up may still disappoint some die-hard 911 enthusiasts, but having a crossover in your model range is now essential for all manufacturers to remain viable in global markets. The Macan – which is the Indonesian word for tiger – will be built at Porsche’s Leipzig plant at a rate of 50,000 a year. Like
T
58 May 2014 am-online.com
“You can’t help thinking if the UK could secure more, they would fly out of the showrooms”
the Range Rover Evoque, the Macan could be a licence to print money. The global desire is already there, with the majority of sales being split between China and the US, while Europe and the UK gets to fight over what’s left. UK dealers will have 1,000 units or just 2% of global production between them and there’s a 12-month waiting list. High-flying user-choosers with the means will be scrambling to secure a Macan too, but while Porsche has a dedicated web portal for fleet customers, they’re going to have to push to fulfil orders. Porsche knows it needs to limit the production of its models to hang on to its exclusivity, but you can’t help thinking that if only the UK could secure more units, they would fly out of the showrooms. While the Macan is based on the Audi Q5, it shares just 25% of its parts (slightly more if you include the Audi-built diesel
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
the macan’s cabin is comfortable, but functional rather than flashy
s p ec i F i c at i o n Price £43,300 - £59,300 Engine 3.0-litre V6; 3.6-litre V6 petrol; 3.0-litre V6 diesel Performance 0-62mph 4.8-6.3 secs; top speed 157-266mph Transmission 7sp auto PDK Efficiency 31.7-46.3mpg; 159-216 g/km CO2 RV 3yr/30k Macan S 45.4% Rivals BMW X3, Audi Q5, Range Rover Evoque
what your customers will Be reaDing aBout the macan
engine). However, Porsche engineers have managed to tease out the trademark sporting pedigree you would expect. The Macan is not a dull, lolloping behemoth – it has impressively potent engines, even with the entry-level S. The Macan has no near rivals (the £43,300 entry-level Macan S is at least £10,000 more expensive than the BMW X3, Audi Q5 or Land Rover Evoque), so Porsche dealers need only worry about the UK’s limited product allocation driving customers elsewhere. However, Porsche dealers will have to carefully manage customers’ expectations on waiting times so they don’t head off to the nearest BMW dealership to get their hands on an X3, which has a waiting list of five months. A while-you-wait Cayman S courtesy car, perhaps? Customers lucky enough to get hold of a Macan can choose
from three models, the Macan S, with either a 255bhp diesel or 335bhp turbo petrol engine, and the range-topping Macan Turbo, which adds 59bhp and more technology features for the £59,300 price tag. The Macan’s interior is what you would expect from a Porsche – dark, high quality and lots of leather. The new model’s cabin is very comfortable, but it’s functional and well put together rather than flashy. Standard equipment includes electrically adjustable seats, 18-inch alloys, leather and Alcantara (artificial suede) seats, climate control and DAB radio. Customers that want cruise control will have to pay £348 to spec it as an option and £271 for Bluetooth connectivity. The Macan S comes with a 335bhp 3.0-litre twin-turbo V6 for a 0-62mph time of 5.2 seconds (with the optional Sports Chrono package). The 394bhp Macan Turbo 3.6-litre twinturbo will hit 0-62mph in a blistering 4.8 seconds. The 242bhp 3.0-litre V6 diesel will still hit 0-62mph in 6.3 seconds and will return 46.3mpg. All versions come with active four-wheel drive and a sevenspeed, PDK automatic gearbox as standard. Porsche has said four-cylinder engines will join the line-up after launch, which will lower the entry price. The 3.0-litre petrol S is the pick of the current models to go for. There’s quite a premium for the top-of-the-range Turbo model and the power boost will only be worth it for the most dedicated of petrol heads. The diesel option pulls strongly and offers plenty of grunt, but the power delivery of the petrol is much smoother and it delivers a much raspier howl from the exhaust. Customers can select between different driving modes, with Sport tightening up the steering and throttle response. The grip on offer for an SUV is suitably impressive. Dealers can also upsell a £785 Porsche Active Suspension Management (PASM) system, which will further improve handling with an army of sensors to control suspension, dampers and body roll. The Macan isn’t the most practical luxury SUV on the market, but who buys a Porsche for practicality? Customers will be drawn in by the badge, exclusivity and performance on offer. Porsche have succeeded in making the sportiest SUV in the segment.
what car? Dynamically, in all guises, there is no question the macan is superior to its closest rivals, the Bmw X3 and audi’s Q5, and it has a better-quality cabin. the Daily telegraph Don’t blame porsche for venturing into this burgeoning market sector. the macan is dynamically capable, fast and mildly competent off-road. it’s also expensive and will remain a rare sight on uK roads.
1,000
uK dealers’ allocation of the macan, equivalent to just 2% of porsche’s global production
m a n u Fa c t u r e r Finance oFFer Model Porsche Macan S Finance type PCP Deposit £9,500 Term 35 months Monthly payment £523.50 Final payment £22,612.59 APR 7.9% Offer ends 30/06/2014
am-online.com May 2014 59
IN JUNE’S ISSUE
C O N TA C T U S
PUBLISHED MAY 23
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Face to face: Holdcroft
The winner of the AM Award for Best Fleet Dealer explains what it is that makes this Midlands motor retailer stand out from the crowd in corporate sales.
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Holdcroft group fleet sales director Malcolm Pearson, centre, with Sophie Raworth and Fleet News editor Stephen Briers
Top tips to improve your workshop’s performance A full report from the expert speakers at the AM Aftersales Conference.
Social media insight We examine how dealer groups can determine the structure of their social media function and ensure all their dealerships become engaged.
Kia Soul reviewed
Improvements inside and out make it a stronger contender in the B-SUV segment.
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Barclays Partner Finance.............2,3
Frontline Solutions .........................26
Paragon Automotive........................13
BCA .......................................................23
Gen-3 Glasscoat................................10
RAC Cars ..............................................4
Black Horse........................................18
Jones Architecture & Design........57
Rapleys LLP .......................................54
Close Motor Finance ......................45
Mapfre Abraxas..................................8
Robert Stephens & Co ..............55,57
APC Ltd................................................54
Colliers International ......................54
Marketing Delivery .........................40
Symco Training..................................25
Autos on Show.TV.............................41
Dealer Management Services......41
Motors.co.uk ......................................17
Synergy................................................56
Auto Trader ........................................68
DSG Financial Services...................32
Northridge Finance..........................24
Trusted Dealers ................................12
ADVERTISERS’ INDEX
66 May 2014 am-online.com