AM November 2014 preview

www.am-online.com November 2014 £8.00

pa r i s m o t o r s h o w / p6 6

The new cars you’ll be selling in 2015

automotive management

the showroom experience Carmakers demand more ‘theatre’ within the dealership, but will it sell more cars?

fa c e t o fa c e / p 3 6 & p 3 8

de alership de sign / p21

pre senting produc t s / p47

Michael Edwards MG and Oxford Audi: Same trade, different environments

Can franchised dealers afford the car showroom of the future?

Dealers still find a place for ‘old school’ forecourt tools in this iPad age

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ouR ExpERT conTRIBuToRS

Is a car showroom the right place for ‘theatre’?

C

armakers seem convinced that requiring their franchised networks to invest in a freshly built property, or at least a new showroom style, every six to 10 years, is a reasonable expectation (despite fewer than one in three dealers thinking refreshing showrooms increases sales, according to our poll on page 35). Manufacturers feel this is a great way to maintain a brand experience that will draw in new customers and keep existing ones, some of whom may have changed their car just twice since the previous corporate identity was brought in.

Carmakers’ latest focus seems to be on building ‘theatre’ into the showroom experience, with interactive technology (see page 31) that they hope will make it more compelling, or even more entertaining, to visit a dealership.

But isn’t this simply evolution? Aren’t the technology bars, touchscreen configurators and plush coffee lounges the new equivalent of the sales desks, children’s play areas and vending machines of old?

The revolution could come on the digital side of motor retail. Hyundai is already trialling a new way (page 7) and the view from the AM Digital Dealer Conference (page 52) is that motor retail’s shop windows are now online.

Our dealership design piece (page 21) suggests considering a cautious approach to solus showroom investment in future. n AM has welcomed a new member to its editorial team. Senior reporter Danielle Bagnall was formerly social media account manager for Vertu Motors and has written for Motors.co.uk, Golf+, Total BMW and Fast Car.

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 (p28), he suggests dealers follow monthly new car registration figures to work out what used cars to stock.

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 (p43), he warns against embarking on huge showroom redesigns without first making sure the fundamentals are in place.

The AM editorial team Email: am@bauermedia.co.uk Website: www.am-online.com Twitter: @amchatter LinkedIn: am-online.com/linkedin

Jeremy Bennett Editor

Tim Rose Managing editor

Danielle Bagnall Senior reporter

AM Awards deadline is Oct 31 Ð donÕt forget to enter!

See details on back cover am-online.com November 2014 3

In this issue November 2014 38 FACe TO FACe RiDGeWAy OxFORD AUDi HeAD OF bUSiNeSS Alex MATSCHy

21

DeAleRSHip DeSiGN bUilDiNG A ‘ReTAil expeRieNCe’

Insight

Your news

Analysis

7

Can dealers afford the 31 21 showroom of the future?

News digest This month’s round-up includes the latest on Hyundai’s plans for sales without salespeople, dealers make a £15,000 loss in August, and Vertu Motors says its profits rose almost 50% in the six months to August 31.

Manufacturers are increasingly demanding hi-tech ‘experience’ showrooms, but research suggests dealers should be wary of expensive, single-use new-builds.

12

Fewer than one in three AM readers believe regular showroom refreshes increase sales.

14

New car registrations September figures hit a 10-year high, but growth slows.

Used car values

17

What the FCA’s ‘treating customers fairly’ principle means for the dealer’s relationship with brokers.

4 November 2014 am-online.com

36

Face to face: Michael Edwards Group

38

Face to face: Ridgeway Oxford Audi

Property problems

25

September values fall as NAMA warns that October could be the turning point that shifts the market in favour of the buyer.

Finance

Car consumers have ever higher expectations of the showroom experience and dealers are adopting the latest technology to meet them.

35 AM Poll

Market intelligence

Engaging the 21st-century dealership customer

28

Skyrocketing property values and more and more demanding requirements from manufacturers are forcing dealers to consider non-traditional sites.

Used car sales CAp’s philip Nothard says the best way to predict used car demand is to follow monthly new car registration figures.

The most successful MG dealer in the UK illustrates the benefits of a low-tech approach.

Head of business Alex Matschy on keeping a focus on people in his sparkling, new ‘terminal’ site.

business school 43 View from the

Dealers must answer three key

For the latest motor retail industry news, visit am-online.com Sign up to get AM news daily by email: am-online.com/newsletter

pROpeRTy pRObleMS RiSiNG pRiCeS SQUeeZe DeAleRS

25

66 pARiS MOTOR SHOW CARS TO WATCH FROM THe CiTy OF liGHTS

questions before embarking on an expensive rebuild, says prof Jim Saker.

47 Presenting the products With the drive towards digital in dealerships, do traditional display methods still have a role to play?

70

Seat Ibiza

72

Volkswagen Golf

71

Mazda3

AM Digital Dealer 52 Conference Report

Highlights, analysis and advice from the AM Digital Dealer Conference.

Why dealers need 59 to know ‘the code’ on warranties

The award-winning seventh-generation Golf begins to prove its worth when a long-distance trip reveals its efficiency.

The new Mazda3 is playing a crucial part in the Japanese brand’s growth.

Now an AM long-term test will determine why.

What has been the impact of Motor Codes’ code of practice for warranty providers since its summer launch?

Showroom

66

lack of a courtesy car loses brand some points during otherwise faultless body repair work.

Paris Motor Show Tim Rose reports from paris on the key new models and relaunches showcased at this year’s event.

Coming soon

78

In December’s issue – published Nov 28 Face to face with Macrae & Dick MD Andrew Grzesinski; what the future holds for used car departments; and coverage of the AM Used Car Market Conference. plus, the Škoda Fabia reviewed.

D E A L E R S A N D S U P P L I E R S IN THIS ISSUE: Allen Ford.............................................................7 ASE .........................................................................9 Aston Martin........................................................9 Audi.......................................................................32 AutoProtect........................................................18 Barclays ..............................................................12 BCA.......................................................................14 Black Horse.......................................................12 Blue Motor Finance .........................................9 Calltracks ...........................................................54 Capgemini ..........................................................53 Car Care Plan ...................................................63 CBR.......................................................................26 CitNow .................................................................54 Colin Appleyard..................................................7 Colliers International......................................26 Endeavour Automotive ....................................7 FLA .......................................................................19 Ford ......................................................................32 Frontline Solutions..........................................17 Frost & Sullivan................................................22 Glyn Hopkin..........................................................7 Google...........................................................31, 53 GVA .......................................................................26 Hyundai ......................................................7, 9, 34 Internet Advertising Bureau........................53 iVendi....................................................................17 Jardine Motors ...................................................9 Jones AD.............................................................22 Kia ..................................................................10, 47 Knight Frank......................................................25 Lookers ...............................................................48 Manheim......................................................14, 54 Mapfre .................................................................60 Marketing Delivery..........................................54 Mercedes-Benz................................................10 Michael Edwards Group................................36 Mitsubishi .............................................................7 Mitsubishi Specialist Cars...............................9 Motor Codes ......................................................59 Motoring.co.uk ..................................................54 Movetech.............................................................48 NFDA......................................................................9 Nissan....................................................................9 Node4...................................................................54 Regent Automotive............................................7 Ridgeway Oxford Audi....................................38 Robert Stephens & Company......................25 Rockar .................................................................34 SMMT...................................................................12 Social@Ogilvy ....................................................54 Specialist Cars..................................................48 Stoneacre ...........................................................10 Swansway Group.............................................10 The Funding Corporation..............................18 The Warranty Group.......................................63 TrustFord............................................................32 Vauxhall...............................................................10 Vertu Motors .......................................................9 Volkswagen................................................32, 52 Volvo .......................................................................9 Williams Automobiles....................................53 WMS.....................................................................63

am-online.com November 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

Dealer profitability The average UK motor dealership lost just more than £15,000 in August, according to ASE.

10

Mercedes-Benz recall Mercedes has recalled more than 8,000 C-Class models in the UK due to a steering fault.

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HYUNDAI

Showroom will let consumers buy cars without salespeople Hyundai is to open a store in a Kent shopping centre where consumers can buy a car “without speaking to a salesperson”.

The announcement of the store at Bluewater comes a week after dealer group Colin Appleyard said it was opening an unmanned store in Yorkshire (see below).

Hyundai has partnered with a business called Rockar, founded by Simon Dixon (the former chief executive of Dixon Motors and co-founder of Jamjar.com) to launch Rockar Hyundai. It is designed to “provide consumers

with an all-encompassing online and in-store service that will allow them to research, test-drive, get a price for their old car, choose a payment option, purchase and service their new car all at the touch of a button without ever having to speak to a sales person if they wish,” a statement reads.

Should a customer wish to speak to someone, staff – called Rockar Angels, will be on hand. Servicing will also be available every day of the week.

■ For more on Hyundai, read ‘Engaging the 21st-century dealership customer’ on page 31.

E N D E AV O U R Endeavour Automotive has bought Regent Automotive in a share capital deal.

Regent Automotive operates the Volvo franchise in six locations in and around London.

John Caney, managing director of London-based Endeavour Automotive, said: “The acquisition is a perfect fit for us in terms of geography and is a major step forward in delivering our strategic plan of growing a regional group with a balance of manufacturer representation.”

ALLEN FORD A South African fleet management company, Super group, has acquired Ford dealer Allen Ford, part of Camden Ventures, for £33.9 million.

An artist’s impression of Rockar Hyundai ‘s Bluewater store

COLIN A p p L E YA R D In a pilot initiative, Colin Appleyard Cars is set to open an “unmanned” car sales showroom where customers will browse and choose their car without a sales executive.

ColinAppleyard.com said the experimental showroom will remove sales staff from the shop floor, and will instead feature tablet computers that will allow customers to look up further information, place their order and even apply for finance.

The experimental showroom will still have staff on hand for those who require it.

MITSUBISHI The managing director of Mitsubishi Motors in the UK (MMUK) said he is pleased how well its dealers are responding to the Japanese brand’s rapid increase in sales volume this year.

MMUK’s new car registrations are up 93% year-to-date, which is higher than forecast. A crucial driver of that has been the Outlander PHEV, the plug-in hybrid SUV that is priced on par with a turbodiesel. It has sold 3,000 units within three months of going on sale, but managing director Lance Bradley said it “has taken the rest of the range with it”. ASX is up 35%, Outlander diesel up 40%, Shogun is up more than 60%, L200 is up 25% and Mirage is similar to last year, he said.

Bradley said not only was volume up, but dealer profits for the six months to the end of July were the highest they had been in 10 years. The network’s average return on sales is exceeding the ASEstated UK average of 1.51%, and he said the margin Mitsubishi dealers were taking out of Outlander PHEV was significantly higher than any other product. The brand is also expanding. It has recruited 12 new dealers since April and wants 10 to 15 more sales points filled to ensure full coverage.

The acquisition includes an option to purchase eight properties from Camden.

Allen Ford operates 13 Ford franchises and two Kia franchises.

Super Group said it expected to conclude the deal around December 1, if regulatory authorities approve. The property acquisition is expected to be completed shortly afterwards.

Super Group (UK Investments), is a wholly owned subsidiary of Bluefin Investments. Both are registered in Mauritius.

g LY N H O p K I N glyn Hopkin has become Nissan’s largest UK retail partner after it acquired Nissan Cambridge from Marshall Motor group.

The site is situated between Glyn Hopkin’s dealerships in Ipswich, Bishop’s Stortford and Bedford. The acquisition increases Glyn Hopkin’s Nissan portfolio to 13 sites across the South East and is its first outlet in Cambridgeshire.

am-online.com November 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

D E A L E R p R O F I TA B I L I T Y

IN BRIEF

profit sensitivity is highlighted in the latest performance figures released by ASE. Its report on August figures show that money is only being made during ‘fast-start’ or quarter-end months.

ASE said the average dealer lost just more than £15,000 in the month.

“This marks a £4,000 deterioration compared with August 2013 and shows that while plenty of metal is being shifted, profits are only being earned during fast-start or quarter-end months,” said Mike Jones, ASE chairman.

This loss has pulled the rolling 12-month return on sales below 1.5% for the first time since March. However, ASE is confident this trend will be reversed in September.

BLUE MOTOR FINANCE Blue Motor Finance has announced that it will be re-launching at the end of the year. The company withdrew from lending in 2008 due to the financial crisis. The re-launch is backed by investors Cabot Square Capital and Citibank.

V O LV O Volvo UK is rolling out a new showroom concept to its network from next year with an aim of creating more of a destination for its customers.

Volvo is introducing its VRE (Volvo Retail Experience) look and feel with emphasis on a warm-coloured ‘living room’ area for customers to relax in and a cold-coloured ‘street’ area with the cars on display, tablet PCs on stands and customer consultation booths.

The exterior of the showroom will be largely translucent, but with ‘shop windows’ to display Volvo’s cars.

Large interior glazing will allow customers to see all workshop activity and the concept facilitates customers speaking directly with technicians, AM understands.

■ Read ‘Can dealers afford the showroom of the future?’ on page 21.

VERTU MOTORS

ALL AN RUSHFORTH Nissan Motor Company has appointed Allan Rushforth as corporate vice-president for global sales. Rushforth joins Nissan from Hyundai and will report to Nissan’s chief planning officer, Philippe Klein.

NFDA & EMAC The National Franchised Dealers Association has joined forces with EMaC to provide service plans to franchised dealers. The partnership says it offers dealers unrivalled support and aims to underline the importance of quality in the aftersales experience.

Vertu’s interim results show pre-tax profits rose 48.8% yearon-year to £12.8 million in the six months to August 31.

D E LY T H T H O M A S Half year revenues were up by £246.7m to £1.08 billion, a 29.5% rise. Growth was fuelled by acquisitions of six further sales outlets since March. However, Vertu reported that like-for-like retail new vehicle sales volume was up 11.8%, fleet cars rose 12.4%, commercial vehicles rose 28.6% and used vehicle volumes were up 11.6%. Group margin fell to 10.6% from 11.1%.

JARDINE MOTORS

Delyth Thomas has been promoted to dealer principal from general manager at Mitsubishi Specialist Cars, in Cwmbach, Wales. Thomas said: “I’ve been in the motor trade for 20 years but always in used cars, so this has been a totally different experience.”

Jardine has opened an £8million Audi site, with a 17-car showroom and 18-bay service and MoT workshop in Milton Keynes.

SIMON SpROULE The 3,520 sq m site took nine months to develop and includes a private customer lounge, a concept taken from the Audi City site in Piccadilly and which the manufacturer is implementing in key urban dealerships.

It also has a drive-through check-in for service customers, and forecourt space for more than 100 Audi Approved used cars and parking for more than 300 cars.

Jardine has also expanded its dealership team, with 20 additional positions being created as a result of the relocation, bringing the total workforce to 90 staff.

Simon Sproule joins Aston Martin as director of marketing and communications.

Sproule has spent more than 20 years in the automotive industry joining Aston Martin from Tesla Motors where he served as vice-president of global communications.

R O B I N H AY L E S Hyundai Motor UK has appointed Robin Hayles to the newly created position of sustainable fuel development manager.

In his new role, Hayles will develop and deliver Hyundai’s fuel cell and sustainable fuels strategy.

am-online.com November 2014 9

market intelligence 14

Used car values

Bca said average used car values fell as volumes rose in September; manheim reported ex-fleet falling, but part-exes gained in value.

17

the news in depth

Finance

the Fca’s ‘treating customers fairly’ regulation will radically alter the relationship between dealers and finance brokers.

n e w c a r r e g i s t r at i o n s

September hits 10-year high, but growth slows Year-on-year increase falls to 5.6% as ‘market starts to find its natural running rate’ need to know n 425,861 cars registered n 31st consecutive month of growth

By Jeremy Bennett very commentator has been predicting for months that the new car market would cool and September proved them right, while at the same time delivering the best results for the month for 10 years.

With 425,861 registrations, September marked the 31st consecutive month of growth, but the increase slowed to 5.6% ahead of September 2013. Year-to-date registrations have reached 1,958,196, up 9.1% on the first nine months of 2013. after march’s 18% surge, September’s more moderate growth indicates demand is starting to level off, said the Society of motor manufacturers and traders. sMMt chief executive Mike hawes said: “September’s strong performance underlined the continuing

e

volUMe split

September 2014 2013 % change Mkt share ‘14 Mkt share ‘13 Year-to-date 2014 2013 % change Mkt share ‘14 Mkt share ‘13

Total 425,861 403,136 5.6%

Total 1,958,196 1,794,924 9.1%

robustness of the Uk new car market, particularly in the context of last September’s bumper volumes. “in the months since march – which saw an 18% jump in registrations – the growth has shown signs of levelling off as the market starts to find its natural running rate.” chris sutton, managing director of motor finance provider, black horse

q U a r t e r ly i n c r e a s e s i n n e w c a r r e g i s t r at i o n s , q1 2 013 t o d at e

12 November 2014 am-online.com

Diesel 204,105 192,816 5.9% 47.9% 47.8% Diesel 974,233 878,754 10.9% 49.8% 49.0%

Petrol 211,801 203,933 3.9% 49.7% 50.6% Petrol 946,121 890,998 6.2% 48.3% 49.6%

AFV 9,955 6,387 55.9% 2.3% 1.6% AFV 37,842 25,172 50.3% 1.9% 1.4%

said: “We would anticipate the rate of growth in car sales to level out to more moderate levels.

“Whilst manufacturers and dealers have been working very hard to offer competitively priced finance deals to entice customers into the showroom, they will now be turning their attention to how they will retain this custom and continue to make a profit.” richard lowe, head of retail and wholesale at barclays, said: “While the market is likely to balance out over the final few months of the year, 2014 is destined to be another success story for dealers and manufacturers.”

On am-online, readers have implied that end-of-month pre-registrations are playing a significant part in the market’s health.

However, one dealer rebutted this: “not all vehicles registered in the last days of the month are pre-reg. We will register any customer vehicle we can and often these are ‘just off the boat’, to get to a monthly objective. there are

Private 221,146 208,864 5.9% 51.9% 51.8% Private 956,381 869,436 10.0% 48.8% 48.4%

Fleet 178,771 170,535 4.8% 42.0% 42.3% Fleet 904,772 842,223 7.4% 46.2% 46.9%

Business 25,944 23,737 9.3% 6.1% 5.9% Business 97,043 83,265 16.5% 5.0% 4.6%

no fields full of pre-reg cars. there are customers looking for a pre-reg deal (even though a PcP is often cheaper).

“We are simply feeding, and benefiting from, another route to market. let’s be proud of the great job we are jointly doing to get more new, cleaner, more efficient and safer cars on the roads.”

av e r a g e n e w c a r r e g i s t r at i o n s b y M o n t h , 2 0 0 4 -2 013

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

September Marque

2014

Ford Vauxhall Volkswagen Audi BMW Mercedes-Benz nissan Peugeot Toyota Hyundai Citroën Kia renault Fiat Škoda Land rover Mini Honda Seat Suzuki Mazda Volvo Mitsubishi Dacia Jaguar Lexus Porsche Alfa romeo Smart Jeep Subaru Chrysler SsangYong MG Abarth Infiniti Bentley Maserati Aston Martin Lotus Chevrolet Perodua Mia Proton Saab Other British Other Imports Total

54,322 41,175 37,852 25,535 24,891 23,382 22,550 17,865 17,232 14,865 14,270 13,292 12,993 12,147 10,991 10,915 9,996 9,642 9,594 8,070 8,066 7,230 3,527 3,523 3,173 2,131 1,022 1,014 802 762 617 390 363 357 331 214 206 158 144 27 3 2 0 0 0 63 157 425,861

% market share 12.76 9.67 8.89 6.00 5.84 5.49 5.30 4.20 4.05 3.49 3.35 3.12 3.05 2.85 2.58 2.56 2.35 2.26 2.25 1.89 1.89 1.70 0.83 0.83 0.75 0.50 0.24 0.24 0.19 0.18 0.14 0.09 0.09 0.08 0.08 0.05 0.05 0.04 0.03 0.01 0.00 0.00 0.00 0.00 0.00 0.01 0.04

2013 51,084 41,310 33,104 25,829 27,308 21,256 20,119 19,160 16,912 14,479 12,682 12,728 9,045 11,667 10,380 9,531 10,382 10,442 8,498 7,037 7,189 5,258 1,813 2,759 3,183 2,013 1,248 1,192 913 326 522 630 161 104 276 25 147 28 119 10 2,083 13 0 3 0 76 92 403,136

1

Year-to-date

% market share 12.67 10.25 8.21 6.41 6.77 5.27 4.99 4.75 4.20 3.59 3.15 3.16 2.24 2.89 2.57 2.36 2.58 2.59 2.11 1.75 1.78 1.30 0.45 0.68 0.79 0.50 0.31 0.30 0.23 0.08 0.13 0.16 0.04 0.03 0.07 0.01 0.04 0.01 0.03 0.00 0.52 0.00 0.00 0.00 0.00 0.02 0.02

% change 6.34 -0.33 14.34 -1.14 -8.85 10.00 12.08 -6.76 1.89 2.67 12.52 4.43 43.65 4.11 5.89 14.52 -3.72 -7.66 12.90 14.68 12.20 37.50 94.54 27.69 -0.31 5.86 -18.11 -14.93 -12.16 133.74 18.20 -38.10 125.47 243.27 19.93 756.00 40.14 464.29 21.01 170.00 -99.86 -84.62 0.00 -100.00 0.00 -17.11 70.65 5.64

2014

% market share 262,754 13.42 210,357 10.74 168,662 8.61 126,487 6.46 113,520 5.80 99,096 5.06 106,890 5.46 85,418 4.36 76,055 3.88 65,564 3.35 66,542 3.40 62,538 3.19 50,732 2.59 53,781 2.75 60,386 3.08 45,483 2.32 36,584 1.87 44,102 2.25 42,611 2.18 31,431 1.61 31,373 1.60 30,784 1.57 11,162 0.57 18,583 0.95 14,627 0.75 8,629 0.44 6,483 0.33 4,464 0.23 4,016 0.21 2,844 0.15 2,140 0.11 1,673 0.09 1,215 0.06 1,840 0.09 1,286 0.07 591 0.03 1,160 0.06 921 0.05 695 0.04 180 0.01 2,764 0.14 27 0.00 5 0.00 1 0.00 1 0.00 624 0.03 1,115 0.06 1,958,196

2013

% market share 249,017 13.87 200,357 11.16 154,536 8.61 114,261 6.37 105,313 5.87 86,624 4.83 94,541 5.27 86,019 4.79 72,831 4.06 61,210 3.41 63,773 3.55 58,307 3.25 32,320 1.80 47,587 2.65 49,576 2.76 43,916 2.45 40,264 2.24 45,494 2.53 35,468 1.98 27,187 1.51 26,027 1.45 24,851 1.38 7,416 0.41 11,631 0.65 13,256 0.74 7,050 0.39 6,021 0.34 4,496 0.25 4,316 0.24 1,458 0.08 1,757 0.10 2,237 0.12 505 0.03 273 0.02 1,114 0.06 305 0.02 941 0.05 239 0.01 725 0.04 141 0.01 9,982 0.56 193 0.01 0 0.00 18 0.00 3 0.00 644 0.04 724 0.04 1,794,924

% change 5.52 4.99 9.14 10.70 7.79 14.40 13.06 -0.70 4.43 7.11 4.34 7.26 56.97 13.02 21.80 3.57 -9.14 -3.06 20.14 15.61 20.54 23.87 50.51 59.77 10.34 22.40 7.67 -0.71 -6.95 95.06 21.80 -25.21 140.59 573.99 15.44 93.77 23.27 285.36 -4.14 27.66 -72.31 -86.01 0.00 -94.44 -66.67 -3.11 54.01 9.10

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 Jeep Infiniti Dacia Renault Mitsubishi Lotus Volvo

YTD (%) 573.99 285.36 140.59 95.06 93.77 59.77 56.97 50.51 27.66 23.87

the positive experience of one Mg dealer profiled this month (page 36) is replicated throughout the network as the brand continues to feel the glow of consumers won over by the low-priced, high-spec Mg3.

Maserati continues to take its fight to bMw, Mercedes-benz and audi as its ambitious growth plans – including network expansion – bear fruit, supported by the ghibli. chevrolet now has just two sales outlets (both toomey sites in essex) and 89 authorised repairers as it carries out its european exodus.

BrAnD 10 Alfa Romeo 9 Honda 8 Aston Martin 7 Smart 6 Mini 5 Chrysler 4 Saab 3 Chevrolet 2 Perodua 1 Proton

YTD (%) -0.71 -3.06 -4.14 -6.95 -9.14 -25.21 -66.67 -72.31 -86.01 -94.44

biggest Fa l l er s y e a r t o d at e

3 am-online.com November 2014 13

Are you focused on your digital strategy?

Attend the AM and Auto Trader Digital Marketing Conference and sharpen your digital edge, stay ahead of the competition and maintain momentum in the digital world.

Thursday 12 February – The NEC, Birmingham

www.amdigitalmarketing.co.uk For all further enquiries, including exhibitor opportunities, please contact Kate Howard on 01733 468146 or email kate.howard@bauermedia.co.uk

INSIGHT AM Digital Dealer Conference

are your dealerships digital-fit?

read extended versions of these reports online at: am-online.com/ digitaldealer2014

Analysis and advice from our 14 experts on how dealers can run better digital businesses the CUstomer joUrNey – ClICKs, brICKs aNd PeoPle

Need to KNow n Volkswagen’s ‘blended retail’ merges physical, digital and people elements of sales process n Integrated sales experience journey contributed to a 40% rise in options and finance

Ian Plummer, head of sales operations, Volkswagen UK Blended retailing is the title of a concept being used by Volkswagen UK in its dealer network that accepts the digitisation of the sales process, said Ian Plummer, head of sales operations. It does not assume that face-to-face contact in the showroom or sales staff with encyclopaedic knowledge of the brand have become redundant, instead merging – or blending – clicks with bricks, with people.

Plummer said VW and its dealers were acknowledging the non-linear way customers collected information, online, in brochures, through test drive, email and telephone enquiries or showroom visits. The lack of a link between physical and digital sites is

illogical and problematic, he said. The tablet computer, as the new “digital showroom”, is a primary tool in this. It was also the first step in Volkswagen’s integrated sales experience journey. In two years, the process has improved car sales and contributed to a 40% rise in options and finance.

“We still want customers to touch the car, but with added theatricality and potential benefit to the customer and dealer in the understanding of options available and the upsell opportunities.”

Another key element is retention of customer preferences, earlier visits and incomplete sales processes.

On ‘bricks’, Plummer said more than half of the 208-strong network had adopted the Volkswagen Retail Concept (VRC) corporate identity.

On the third pillar of the blended retailing concept, people, he said: “A lot of customers will come to a showroom with a pretty clear view of the model they are keen on.

“But it’s not totally refined. It is the assistance in a credible, honest, open, hopefully warm and maybe even humorous way from the sales person that is critical in terms of making sure that you have built a rapport which in turn provides value to the customer,” Plummer said.

“We still want customers to touch the car, but with added theatricality and potential benefit to the customer and dealer” 52 November 2014 am-online.com

bUIldING stroNGer lINKs wIth today’s Car CoNsUmer

Need to KNow n Car dealerships still the most important source of information and trusted with consumer data n Numbers using manufacturer and dealer websites instead of going to a dealership is growing

Nick Gill, chairman of Capgemini’s automotive council The automotive industry faces significant disruptive change, according to Capgemini’s latest research.

Nick Gill, chairman of Capgemini’s automotive council, said despite comments about looming transformation of the auto sector from global executives at Volkswagen, BMW and Daimler, some of the vehicle manufacturers Capgemini deals with do not seem convinced that the industry is going to change radically.

Reassuringly for dealers, Capgemini’s global research for its Cars Online report has shown that car dealerships are still the most important source of information and consumers trust them with their data.

However, there is huge growth in people using manufacturer and dealership websites and not going to a dealership. The role of the dealership is becoming less important.

Some manufacturers are testing consumer desire. Daimler and BMW

have mobility services that are now profitable and providing learning opportunities for those carmakers.

Volvo recently announced its new XC90, with a First Edition model that consumers could only order online.

While 24% of consumers would only take a test drive in a dealership, 76% would not necessarily use the dealership for a test drive. And 21% would only buy at a dealership, but 79% would consider other ways.

“The people who say the dealership will always exist because it’s the only place you can do a test drive and touch and see a car, they’re wrong.

“It has to be a more fulfilling, enticing experience than just those reasons,” Gill said. “We have to be thinking in a broader way about that innovative, compelling experience.” Globally, 44% of people are likely to buy a car online given the opportunity, although in the UK the proportion is 28%.

Appetite is there for more regular communications through digital and traditional channels, said Gill.

People expect better communication post-purchase and don’t understand why they only get communication once a year or when the warranty is almost up. Tesla’s CEO Elon Musk plans to communicate regularly, with monthly software updates, car configurations, and is selling an idea of ‘change your car every month’.

“I think we’ll look back in five years’ time and realise we were doing nothing with data,” said Gill. “We talk about all these amazing tools, but as an industry, we still don’t know if it’s somebody’s first or eighth car.”

headline sponsor

the CoNNeCted Car aNd the CoNNeCted CoNsUmer

Need to KNow n one in five consumers choose a car brand they only discover while researching their purchase n dealers and carmakers need to design websites to help consumers’ decision-making process

hugh dickerson, head of automotive, Google Consumers ‘have all the gear and no idea’, according to Hugh Dickerson, Google’s head of automotive, who said 79% of carbuyers need guidance, which gives dealers a huge opportunity to influence their eventual car-buying decisions.

When that decision is finally made, 40% of buyers opt for a brand that had not been their original favourite.

Consumers typically compile a list of four marques and 21% purchase a brand they discover while researching.

“18-34-year-olds are already exhibiting behaviour that’s different to the norm,” said Dickerson. “They consider five brands, 55% do not buy their favourite and 23% purchase a brand they discovered in the research phase.”

Dealers should take a leaf from Google’s book, said Dickerson. When

creating the driverless car, Google opted to start afresh rather than build on something that already existed.

Dealers and manufacturers should apply that thinking to their websites and design them to aid decisionmaking instead of forcing consumers to find information from third parties.

Cookies should be used to track the car-buyer’s journey and tailor content.

With 78% of people using video as part of their online search, it’s imperative, said Dickerson, that ‘hero’ content is

VehICle retaIlING for the dIGItal aGe

Need to KNow

“40% of buyers opt for a brand that had not been their original favourite” utilised (see his AM column on ‘hero’ content at am-online.com/videotips), which should be supplemented by informative ‘hygiene content’.

Consumers will research a dealership before visiting, but 63% will not make an appointment. Dickerson warned against dismissing these people as time-wasters.

On mobile devices, Dickerson said 39% of consumers will continue to research on their smartphone while on the forecourt and that figure is expected to grow.

n williams ditched mainstream franchises and opened countryside morgan and lotus showroom n a strong website and social media presence now act as ‘a digital showroom’

henry williams, managing director, williams automobiles When Williams Automobiles repositioned itself as a British sports car specialist, it embraced the digital world as a means to engage with enthusiasts, both in the UK and internationally. A quarter of the business’s £6million turnover is generated by international sales.

The business ditched its mainstream franchises and relaunched with a single dealership holding Lotus and Morgan franchises in a converted barn near Chipping Sodbury in the

Cotswolds (read AM’s Face to Face profile with Williams Auto at am-online.com/williams).

Under managing director Henry Williams and his father and company chairman, Richard, the business has become a destination for enthusiasts, despite being based in the countryside.

“I learned that, without a high-profile location with passing traffic, the shop window had to be our website. The only way to find us was through digital means,” Williams said.

Its website highlights the cars and services it provides, but doesn’t promote any deals. The business is active on owners’ forums such as Pistonheads and in social media, with 2,700 fans on Facebook.

Activity such as email newsletters and posting pictures of work being done, such as performance upgrades and even an MG restoration, has led to customers enquiring about having similar work done on their own car.

Williams also encourages customers to share photos of their car on social channels: “Our customers do plenty of the advertising for us.”

“Without a high-profile location, the shop window had to be our website” maxImIsING mobIle

Need to KNow n UK smartphone penetration has reached 76% from just 25% in 2010 n smartphone web pages need to be easy to use and navigate

alex Kozloff, head of mobile, Internet advertising bureau “If a website doesn’t work on mobile, it doesn’t associate sponsors

work,” Alex Kozloff told delegates at the conference.

The Internet Advertising Bureau’s (IAB) head of mobile said its studies showed the importance of a “mobilefirst” approach. Smartphone web pages need to be easy to use and navigate due to nature of the small screen, she said, and all web pages should take on a similar philosophy.

“If you think about the way people are changing their media habits, it becomes more and more crucial to make sure it works on mobile,” said Kozloff. UK smartphone penetration

has reached 76% from just 25% in 2010.

IAB studies of consumer behaviour have shown that, rather than do nothing, 52% of people prefer to check their phone, and 37% of people accept that, when socialising, they and their friends will use their phones when there’s a lull in conversation.

In addition, multi-screening, where people use a mobile device while watching TV, is increasingly normal.

Companies can capitalise on this trend. Kozloff gave an example from Canada, where Mazda created a

gaming experience in a Cineplex, which cinema-goers played via their smartphones.

Dealers and carmakers need to consider mobile as part of their marketing and SEO plans. From a value of £528million in 2012, the UK mobile advertising market grew to £1billion in 2013. It’s a figure almost as large as radio advertising, Kozloff said.

“It’s vital to get your search as right on mobile as on desktop, because in some sectors Google sees it as more important.”

am-online.com November 2014 53

INSIGHT AM Digital Dealer Conference faCebooK Zero aNd the ImPlICatIoNs of soCIal reaCh deClINe

Need to KNow n dealers need to tailor content according to topics that are trending n targeting non-fans can generate more word-of-mouth

marshall manson, managing director, eame, social@ogilvy Facebook fans are not necessarily the best advocates for your business, according to Marshall Manson, managing director, EAME, at digital consultancy Social@Ogilvy.

The decline of organic reach means a Facebook page with an average of 100,000 fans can only expect to reach about 6,000, while pages with about 500,000 fans now have an average organic reach of 2%. Despite the drop, says Manson, Facebook continues to give, but investment is required.

Delivering the right content is key and he advises using organic reach as a means to test which material promotes the highest levels of engagement. However, dealers need to adopt a newsroom mentality and tailor content according to topics that are

trending. Manson said there is still value in Facebook, but it is unlikely to lie in the fans themselves. He illustrated Social@Ogilvy’s analysis with an example of McDonald’s Belgium, which had 246,000 fans, but found only a fifth interacted with its content. By using Facebook’s targeting, the brand found it could generate a higher response rate. In fact, paid targeting aimed at non-fan advocates generated an average five times more wordof-mouth than targeting fans.

“Relying on advocates is wrong,” said Manson. “Interestingly, it is not the fans who convert. We need to stop thinking about social as the place to just reach our fans and start thinking about social as the place to do some really sophisticated targeting with some great content.”

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PUttING the CUstomer fIrst

“You need the data to dictate the message that goes out” jeremy evans, managing director, marketing delivery

dIGItal marKetING: brINGING PeoPle aNd INformatIoN toGether

“The experience of the user starts in the search page” luke Carter, head of search, manheim retail services

how to Get half-a-mIllIoN soCIal VIsIts IN oNe weeK

“Social sites offer a great way to attract new visitors” terry hogan, managing director, motoring.co.uk

PeoPle bUy from PeoPle whICh Is why lINKedIN Is VItal

Need to KNow n linkedIn ‘the most powerful social media site for leads’ n like, comment and share with other users to build reputation

Philip Calvert, linkedIn expert People buy from people, making LinkedIn one of the most important social platforms, according to Philip Calvert, professional speaker, LinkedIn trainer and social media sales strategist.

However, it continues to be underrated and underused, with most people still viewing it as a glorified job site despite its 300 million users.

Calvert said once individuals learned how to use LinkedIn properly and become active members on its online community, benefits and results would follow. He added that the reputation or ‘brand’ of the individual is inextricably linked with that of the

54 November 2014 am-online.com

business and LinkedIn provides an opportunity to build trust in both.

Calvert cautioned against assuming that an individual’s offline reputation, which has probably taken years to establish, will immediately translate online: “In some respects we have to start again and create new behaviours online and attract people to us.”

Research from Hubspot identifies LinkedIn as the most powerful social media source for leads with a 2.74% visit-to-lead conversion rate (Twitter 0.69% and Facebook 0.77%).

Calvert advises logging in regularly, even daily; have a professional, well presented profile with a good photo; connect with people at every opportunity; incorporate misspellings of your name in your profile if it is commonly misspelt; use the blogging platform to publish articles to promote your expertise; and help people out when they ask for information or guidance.

“LinkedIn rewards people who engage and that’s people who like, comment and share. It is a supremely powerful tool to build trust and enhance your professional credibility,” said Calvert. associate sponsors

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UsING teChNoloGy to redUCe Costs aNd ImProVe serVICe

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to read these workshop reports in full, please visit: www.am-online.com/digitaldealer2014

Is your F&I business secure?

Dealer and manufacturer tickets from

£149 +vat

Tackling the single biggest challenge facing automotive retailers since the downturn itself, AM’s first F&I Compliance Conference places the Financial Conduct Authority (FCA) under the microscope.

The interim period is now at an end and dealers will be receiving notification of their slot to apply for full authorisation with many scheduled for early next year and the view from the FCA and other F&I specialists is simple: prepare, prepare, prepare.

AM’s F&I Compliance Conference provides you with the perfect opportunity to gain the understanding you need to successfully apply for full authorisation and ensure your business remains compliant.

Conference Schedule 08:30 09:20 09.30 09.40

Registration

Welcome Jeremy Bennett, editor, AM Conference moderator introduction

14.00

Understanding how to meet your obligations under the FCA Qamar Aziz, associate, Wragge & Co LLP

10.40 10.50 11.20

Q&A Refreshments and networking

11.50

14.30 14.40 15.10

The future of GAP

15.40

Adrian Foster, director, Adroit Automotive

A new era for F&I brings benefits Andy Gruber, director, Alphera Financial Services UK The benefits of compliance culture will be explored in greater detail as a more open and transparent F&I culture will result in higher levels of trust and will ultimately increase sales boosting an already buoyant automotive retail market. The presentation looks at how the less rigid FCA structure should be welcomed.

Q&A Refreshments & networking

Dealer view Reserved for AM guest speaker

Preparing your submission for full FCA authorisation Louise Wallis, head of business development, National Franchised Dealers Association

The evolving role of the business manager From commission disclosure to the sales process itself including second facing, this session asks if dealers need to rethink the business manager’s job role to provide an advisory service to customers and take responsibility for compliance in the dealership itself rather than ‘selling’ F&I products.

How finance & insurance can be social

This session will provide a further view of the FCA, its regulations and how dealers are facing up to the challenge of creating a compliant culture which places the customer genuinely at the heart of the business, and, crucially, being able to prove it.

MAPFRE ABRAXAS GAP has been thrust into the limelight following the FCA’s investigation into insurance add-ons and MAPFRE ABRAXAS has been at the forefront of providing commentary and feedback. This session explores the current position of GAP, the FCA’s views to date and the potential changes surrounding the product’s future as we await the final report.

Lunch and networking

Dealers use social media to highlight offers and compliance is imperative. However, dealers can use these channels to talk in general about F&I and at the same time boost SEO. The FCA has issued social media guidelines and this session looks at how dealers can take advantage whilst remaining compliant.

Francisco Esteves, manager, FCA

With clients such as the SMMT, Wragge & Co will provide its legal perspective underlining the typical gaps it has already identified in dealers’ compliance procedures. From assessing how dealers handle more vulnerable customers to delivering specific requirements, this session focuses on potential pitfalls and gives best practice advice.

Q&A

Simon Ryan, founder, Social Advisors

Viewpoint from the FCA A viewpoint direct from the regulator covering expectations of businesses and examples of advertising and promotions. Esteves will stress the importance of creating a new business culture which places the customer at the heart of all F&I proceedings.

10.10

12.20 12.30 13.30

16:10 16:20 16.30

This practical session aims to give tangible advice on how to apply for full authorisation, the NFDA will deliver a stepby-step guide on how to apply, based on its interpretation of FCA requirements. Understanding the process and collating information is underlined as a vital first step.

Q&A Chairman’s closing remarks Conference close

(The organisers reserve the right to change speakers and/or timings as necessary)

For more information or to book your places please visit: www.amfandicompliance.co.uk or

Why attend?

Who should attend?

Here’s our top 10 reasons why you should attend:

Our conference is aimed at automotive retail professionals who need to gain a full understanding of F&I compliance under the FCA and individuals responsible for full authorisation submissions, anyone, in fact, who will be governed by the FCA remit and whose role entails working within its guidelines.

1

To better understand and evaluate the risk to business

■

Divisional directors – must have a solid overview

2

Understand the full authorisation process

■

Finance directors – the most senior fnancial fgurehead must understand the implications of the FCA

3

Hear from the FCA including an evaluation of its frst six months with responsibility for consumer fnance

■

Dealer principals and general managers – at the forefront of implementing FCA guidelines with responsibility for compliance

Pinpoint typical non-compliance issues which have arisen

■

Sales managers – deal with compliance issues on a daily basis

■

Business managers – arguably, the role most affected by the FCA

■

Sales executives – the consumer’s most likely frst port of call and providers of funding information to car buyers

■

Aftersales managers – the extended warranty, service plans and a host of insurance products such as alloy wheel and smart repair protection comes under their remit

The FCA is the single biggest challenge now facing automotive retail and a healthy fnance and insurance business is critical to the success of most dealerships.

4

5

Following the FCA’s investigation of add-on products, explore the future of GAP

6

Clarity on communicating vehicle fnance offers and F&I product promotions

7

Communicate the F&I information, which consumers demand, via social media

8

Evaluate how the business manager’s role may evolve

■

Service advisors – sell and manage a wide range of insurance products

9

Focus on the positive aspects which the FCA’s arrival has facilitated

■

Marketing and digital marketing managers – fnance led marketing and insurance product promotions must meet FCA regulations

■

Customer service managers and advisors – conversations inevitably cover service plans and other F&I products

10 Look through the consumer’s eyes and see how higher levels of trust are developing which will boost dealersourced funding and insurance solutions

18 November 2014 Oxford Belfry, OX9 2JW www.amfandicompliance.co.uk #amcompliance Headline sponsors:

Co-sponsors:

Associate sponsor:

contact Emma-Louise Kinnaird on 01733 395133 or emma-louise.kinnaird@bauermedia.co.uk

showroom 70

seat ibiza

It’s a mixed experience as our long-term test seat Ibiza gets a fettling following an argument with an Audi Q7.

the cars driving your business

71

Mazda3

The new mazda3 is playing a crucial part in the Japanese brand’s growth. Now an AM longterm test will determine why.

72

volkswagen golf

The award-winning seventhgeneration Golf begins to prove its worth when a long-distance trip reveals its efficiency.

Pa r i s Mo t or sho W

Eleven to keep an eye on from the City of Lights Tim Rose reports from Paris on the key new models and relaunches for the UK market showcased at this year’s Mondial de l’Automobile L and rover discovery sPort Land rover will open order books in January for the Discovery sport, its replacement for the Freelander and a car that will sustain the upward sales trajectory created by the range rover Evoque and range rover sport.

It is longer than the Freelander, with new rear suspension and a ‘five-plus-two’ seating format to suit families who’ll need to occasionally transport their children’s friends. Land rover believes it will attract both the Freelander faithful and a new generation of buyers who wouldn’t have considered a full-size Discovery before.

This sUV is packed with technology, including an advanced terrain response system and a new infotainment package that will spread through the range, and will start at £32,395 rising through four specification grades. It will launch with only a 2.2-litre sD4 diesel all-wheel drive variant, but a 119g/km front-wheel drive ED4 variant with lower running costs will be added later.

M a z da M X- 5 The new mX-5 will be a halo model for UK mazda dealers when it arrives in late spring next year. skyactiv design principles have kept the weight down – aluminium has been widely used – and it sits 20mm and 10cm wider than the current roadster, leading to expectations of a superb drive. owners of the current car will like the snug, sporty cabin, modern infotainment system and roof that can easily be folded back as per the car’s tradition. A version with a powered folding roof is likely to follow, as this type currently accounts for the majority of UK demand.

Under the bonnet of the show car is a direct-injection skyActiv 1.5-litre petrol engine, which, like the other petrol units in mazda’s skyActiv range, features a high compression ratio. The engine is longitudinally mounted in the nose of the car. The Paris car features a six-speed manual gearbox, but a six-speed automatic transmission will be offered as an option in some markets. some regions are also likely to get a 2.0-litre engine.

66 November 2014 am-online.com

F o r M o r e s h o W c o v e r a g e , v i s i t: w w w . a m - o n l i n e . c o m / p a r i s 2 0 1 4

“The Corsa won’t simply sell on price… The interior is well styled and appears high-quality” styled and appears high quality and all versions except the base model get a touchscreen infotainment system. sales have started now but the first cars won’t be delivered until January, and standard equipment includes alloy wheels, Bluetooth connectivity and cruise control. Two chassis styles will be offered: comfort, and a sport option that sits 15mm lower.

Corsas built for the UK market have their own steering set-ups tuned at the millbrook Proving Ground to cater for domestic customers.

Five engines will be offered from launch, with the base unit a 69bhp 1.2-litre petrol and the best seller expected to be an 89bhp 1.4-litre petrol. A sole turbodiesel, with power tuned to 74bhp or 94bhp, will offer Co2 emissions as low as 85g/ km, Vauxhall says.

vau X h a L L c o r s a Vauxhall has set the entry price of its fourth generation Corsa at £8,995, as it plans to ramp up its battle with the market-leading Ford Fiesta. The carmaker says most prices for derivatives in the Corsa range are the same or lower than the outgoing model when compared on a model-for-model basis.

It won’t simply sell on price, however. The interior is well

honda hr-v The hr-V is honda’s rival to the Nissan Juke and Vauxhall mokka and the production version that will reach UK honda dealers next summer will be very close to this concept car, according to UK managing director Phil Crossman.

It’s an important addition to the honda range, given the strong consumer desire for B-segment crossovers, and it revives a name used by the Japanese brand on a compact sUV launched in 1999, well ahead of the birth of the ‘crossover’.

Crossman thinks shifting 16,000 of these hr-V models annually shouldn’t be too much a challenge and his dealers will welcome the incremental volume after a long period of stagnant sales. It’ll be offered with honda’s latest 148bhp 1.6-litre turbodiesel or one of a new family of turbocharged petrol units under the bonnet.

Front-wheel drive derivatives will account for the bulk of demand, but it is expected all-wheel drive versions could be on offer.

F i at 5 0 0 X The Fiat 500X, a compact crossover that completes the Italian manufacturer’s family of models based on its popular 500 supermini, will go on sale in the UK in the second quarter of 2015.

The car sits on a modified version of the sCCs platform that underpins the Fiat Punto and Vauxhall Corsa.

The engine range comprises four petrol engines and three diesels. Front-wheel drive models will be offered with a 108bhp 1.6-litre petrol engine, a 138bhp, turbocharged 1.4-litre petrol engine, or a 93bhp 1.3-litre turbodiesel or a 118bhp 1.6 turbodiesel. All-wheel-drive petrol models are powered by a 168bhp version of the turbocharged 1.4-litre or a 138bhp 2.0-litre turbodiesel.

The 500X incorporates a ‘Drive mode selector’ that offers three modes: Auto is the most frugal, sport is geared towards spirited driving and All weather adjusts the settings to best cope with low-grip conditions. Cabin technology includes Uconnect colour touchscreen infotainment systems featuring Bluetooth and UsB connectivity that can be operated via steering wheel controls and voice commands.

am-online.com November 2014 67

showroom Paris Motor Show v o Lv o Xc 9 0 The arrival of Volvo’s new large sUV marks the beginning of a new chapter in the swedish brand’s history, one in which it aims to secure a true premium brand spot alongside Bmw, mercedes-Benz and Land rover. order books open at the end of this year, ready for first deliveries in may 2015. The new XC90 is based on Volvo’s scalable Platform Architecture (sPA) and uses the brand’s new family of Drive-E engines introduced earlier this year in a number of its other cars.

The most popular model is expected to be the XC90 D5 with a 225bhp four-cylinder engine and all-wheel drive. A range-topping model, badged as T8, will be a plug-in electric, hybrid and high-performance car rolled into one, says Volvo. A twin-charged fourcylinder petrol engine powers the front wheels and an electric motor drives the rear wheels.

The car has a premium interior that is uncluttered. highlights include a crystal glass gear lever and a centrally mounted touchscreen whose display functions as a stack of ‘tiles’, with navigation at the top, followed by media and telephone, and the XC90 has a new cloudbased navigation system provided by Ericsson. other cloud services will include internet radio, music streaming and apps for finding and

paying for parking. The XC90 will also have the option of Apple CarPlay and Android Auto for syncing smartphones.

A standard safety package includes two world-first safety technologies: a ‘run-off road protection package’ and ‘auto brake at intersection’ capability. with the first, should the driver lose control and run off the road, the car can detect what is happening and use technology to keep the occupants in position and help prevent spine injuries.

The second provides automatic braking if the driver turns in front of an oncoming car.

Ford s-Ma X

Kia sorento Kia dealers will begin sales of the new sorento full-size sUV next spring, taking the fight to the mitsubishi outlander and Nissan X-Trail. It’s almost 10cm longer than the current sorento and load capacity with the third-row seats folded flat increases to 605 litres – that’s on a par with a Volkswagen Passat Estate.

Although the roofline is 15mm lower, repositioned seat cushions ensure increased headroom for occupants in all three rows. Kia promises more legroom too. Globally, the new car is available in five- or seven-seat versions, however the UK tends to demand the seven-seater. It’ll have a 2.2-litre turbodiesel under the bonnet. A petrol-electric hybrid version is being developed, but Kia has not yet decided if this will come to the UK. Interior styling was led by the brand’s European design team, based in Frankfurt, and Kia’s designers have used higher quality materials, with a higher proportion of soft-touch materials and leather. Kia says this is its highest quality interior yet. Buyers, who typically choose the sorento for its capacity and strong towing ability, can expect a modest price increment over the current range, which starts at almost £27,000. market-dependent technology includes an around-view monitor, a powered tailgate, adaptive cruise control, lane departure warning system, front-collision warning, blind-spot detection and lane-change assist.

68 November 2014 am-online.com

The second generation of Ford’s stylish people-carrier will launch in the UK next summer and the carmaker has promised customers a more premium cabin.

Despite the new s-max broadly retaining the same dimensions inside and out, there are no carried-over parts and a new suspension design is expected to further strengthen the previous model’s already agile handling. with a new chassis, new engines, a more flexible seven-seat interior and upgraded cabin technology, Ford will hope the new s-max repeats the current model’s success in bringing new families to the brand.

An all-wheel drive system, also shared with the upcoming mondeo and Edge, will be offered with the powerful derivatives. Inside, switchgear has been reduced, with many functions carried out by a touchscreen, and a digital instrument panel and electronic handbrake are standard.

An even plusher Vignale trim is likely to launch by the end of 2015.

F o r M o r e s h o W c o v e r a g e , v i s i t: w w w . a m - o n l i n e . c o m / p a r i s 2 0 1 4

hyundai i20 hyundai’s all-new hatchback, scheduled to go on sale in early 2015, will initially be offered in five-door form with a choice of petrol or diesel engines, with a three-door version due to join the range later.

Like the i10 launched earlier this year, the i20 has had a noticeable uplift in perceived quality and refinement and its development has been benchmarked against the Volkswagen Polo, although it is expected to conquest most sales from the Ford Fiesta and Vauxhall Corsa.

Key revisions include new exterior and interior styling, an improved range of equipment and more interior space. The new i20 will be available with a choice of two petrol units from hyundai’s ‘Kappa’ family and two diesels from its ‘U-II’ range.

The i20 is currently hyundai’s second-best selling model in its UK line-up; more than 73,000 have been sold since the car was launched in 2009.

s u z u K i v i ta r a The Japanese carmaker is reviving the Vitara model name for its five-door, C-segment sUV, which will reach dealers’ showrooms next April.

The Vitara is based on a modified version of the same platform underpinning the sX4 s-Cross, and is likely to use the same 1.6-litre petrol and turbodiesel powertrains, but is taller and wider than that model so will accommodate five occupants more comfortably. It has large-diameter wheels, high ground clearance, and an ‘Allgrip’ system with four modes the driver can select to suit the road surface and driving conditions at any time. Front-wheel driven versions will also be sold, with Co2 emissions expected to be as low as 106g/km when paired with the diesel engine.

A key feature of the Vitara will be buyers’ ability to order a personalised car. Each customer can choose from 15 body colour possibilities that include three new colours and several twotone combinations, and they can also pick the colour of the grille, bumper trims, instrument panel, louvre rings and centrally located clock. In addition, an ‘urban’ package adds chrome fog lamp bezels, body-side mouldings, and a roof spoiler, while a ‘rugged’ package emphasises sUV toughness by adding a front skidplate, a rear skidplate, fog lamp bezels, body-side mouldings, and a loading edge protection.

Jaguar Xe The XE will reach dealers next may, providing a significant volume boost for the Jaguar franchise. Prices will start at £26,995 for the petrol-engined versions and from £29,775 in diesel form.

Topping the range, and available from launch is the XE s, which costs from £44,870 and shares its supercharged 335bhp 3.0-litre V6 with the F-type.

Also included in this rear-wheel-driven executive car’s engine line-up are two new four-cylinder ‘Ingenium’ EU6-compliant diesels, with standard manual gearbox and an eight-speed auto optional, and two four-cylinder turbocharged petrol units with the auto gearbox as standard.

The base 161bhp 2.0-litre diesel offers fuel economy of 75mpg with Co2 emissions of 99g/km in manual form, or 71.7mpg and 104g/km as an automatic, so will have real appeal to the BIKconscious company car chooser. A 178bhp version of this engine will also be offered.

The car will be offered in four trim levels: sE, Prestige, Portfolio and r-sport. standard kit on the sE includes satnav, touchscreen with ‘InControl’ multimedia system, DAB radio, 17in

alloys and cruise control. sE and mid-range Prestige are only available on the diesels and base petrol model, while Portfolio, the most luxurious, is offered on the diesels and the 237bhp 2.0-litre petrol. r-sport includes a suspension upgrade and is offered only with the most powerful 178bhp diesel and 237bhp petrol.

A host of new technology includes a low-speed traction control system called All surface Progress Control that maximises traction in low-grip conditions, adaptive cruise control, two semi-autonomous parking systems and blind spot monitoring.

am-online.com November 2014 69

IN DECEMBER’S ISSUE

C O N TA C T U S

PUBLISHED NOVEMBER 28

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Macrae & Dick

Editor Jeremy Bennett 01733 468261 Managing editor Tim Rose 01733 468266 Senior reporter Danielle Bagnall Industry editor Tony Willard

Managing director Andrew Grzesinski on overcoming the challenges of motor retailing in the largest geographic territory in the UK.

AM production Head of publishing Luke Neal 01733 468262 Production editor Finbarr O’Reilly 01733 468267 Designer Erika Small 01733 468312 Contributors Jonathan Kearney, Chris Lowndes, Philip Nothard, Chris Phillips, Prof Jim Saker, Richard Yarrow 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 Julie Howard 01733 468141 Sara Donald 01733 366474 Richard Kerr 01733 366473 Kelly Crown 01733 366364 Recruitment enquiries Richard Kerr 01733 366473

Part-exchange profits Used cars A look at how dealers balance the need for retail-ready used cars with the profits currently available from remarketing their part-exchanges to the trade.

What’s in store for used car departments? We will examine the current trends and likely future movements in the used car market, enabling dealers to hone their stocking strategy.

Škoda Fabia The third-generation supermini is better equipped, but no longer a cheap alternative.

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 Subscriptions 01635 588494. Annual UK subscription £99, two years £168, three years £238.

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ADVERTISERS’ INDEX

DSG Financial Services...................33

Northridge Finance..........................40

Infomedia ............................................55

Paragon Automotive ......................49

Autoclenz ............................................51

IMI....................................................29/46

Perrys Motor Sales ........................75

iVendi....................................................30

Robert Stephens...............................27

Jardine Motors Group.....................74

Robins & Day Leicester ..................76

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Jones AD .............................................24

Supagard.............................................50

Printing: Headley Brothers Ltd, Kent

Lawdata...............................................50

Symco Training..................................35

Lloyds ..................................................16

Synergy................................................27

Car Care Plan ...................................61

Manheim Retail Services.........15/42

Tracker Network Systems ............11

Chris Eastwood Automotive .........73

Mapfre Abraxas..........................23/58

Trusted Dealers ................................10

Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.

Autoguard Warranties....................62 Barclays Partner Finance................6 Blacks Outdoor Retail ...............44/45 BCA .................................................20/51

Continental ..........................................8

Marketing Delivery ..........................34

Volkswagen Financial Services ...77

Dealer Management Services......32

Mercedes-Benz UK..........................73

WMS Group ................................64-65

78 November 2014 am-online.com