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PICTURES: JONATHAN FLEETWOOD
Influencers What does 2019 hold for the industry? The great and the good from across the automotive spectrum have their say.
Tanesha Stafford Armchair Marketing Page 52
Louise O’Sullivan Groupe Renault UK Paul Philpott Kia Motors UK Page 44
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Paul Humphreys Cox Automotive Page 50
IT’S the time of year when we bring together some of the top movers and shakers from the automotive industry and ask them to give us their thoughts on what might be coming up in the year ahead. Regular readers might notice a change of venue for our photoshoot this year. Our guests are surrounded by Sir Frank Williams’ private collection of cars thanks to the team at Williams Advanced Engineering, who are currently working on some very exciting but
Iain Wight Williams Advanced Engineering Page 53
annoyingly top-secret projects. However, we did manage to grab business development director Iain Wight, who is included in this year’s line-up. Also among our 2019 influencers, we have two representatives from manufacturers that have launched online retailing platforms for their brands. One of them is Louise O’Sullivan, who was MD of Dacia UK when this section of the magazine was compiled but is now Groupe
Renault’s network operations director. The other is David Peel, the managing director of Peugeot UK. We chat to him on page 46, but unfortunately he wasn’t able to be present for the group shot. All our influencers provide thoughtprovoking commentary about the current state of UK Automotive plc and we’re grateful to each of them for taking time out of their busy schedules to chat to us. Rebecca Chaplin
Anton Hanley The Lead Agency Max Stolton Google Page 55
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Phill Jones Motors.co.uk Victoria Finn Pendragon Page 47
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Feature.
Paul
Philpott
KIA MOTORS UK: South Korean brand will be looking to maintain momentum after 2018 sales growth.
What opportunities does 2019 present? Alongside all the current uncertainty, we have many opportunities to maintain our momentum this year (we grew by three per cent last year!) with new products, new powertrains and a continuously improving purchase and ownership experience delivered by our excellent dealer network. We have a great partnership with our dealers, which forms the foundation of our profitable franchise. What poses the biggest threat to the motor industry in 2019? Obviously the biggest concern is about Brexit. We need certainty and stability and we need consumer confidence to return rapidly. But global trade uncertainty could also have an impact on operations and profitability this year. What do you foresee as the biggest change coming in the year ahead? I think we are at a tipping point with electrified cars. They are about to become more mainstream, which will be a good opportunity for those with a strong range of electrified products. Awareness and demand is increasing rapidly and e-Niro is going to have a big impact for Kia. Do you think our industry needs to change? The industry is always changing and will
continue to do so! But in the end, customers still want to receive the very best level of service. Those brands who remain customer-focused through this period of uncertainty will win. If you had a message for the government in 2019, what would it be? Come together to give us certainty and stability – long-term planning is essential for profitability and investment and to be able to meet changing demand and new regulation. What change should dealers be making to their existing forecourts? They must, of course, be attractive, appealing and inviting places to visit, and clearly demonstrate the range of services on offer. They must reflect latest technology (plug-in charging points will be increasingly essential), and of course customers must always find it easy to park! What one change should dealers make to their digital presence? Fast, effective lead management – customers now do all their research online and want quick and effective responses from trusted people. Taking 24 hours to respond is simply not good enough! The integration of digital processes with the physical environment and human contact of a dealership must be seamless and efficient.
Mini CV
Paul Philpott, president & CEO, Kia Motors UK. Lives: Dorking, Surrey. Drives: Kia Stinger. Career: Midland Bank, Ford, Toyota, Kia (UK & Europe). Petrol, diesel, EV or hybrid? Increasingly electric! Digital or physical presence? Physical supported by valued digital services. Dream car? I drive it – a Kia Stinger!
What do car buyers want in 2019? Value, reliability, security, ease of information and outstanding service – I believe customers will pay a fair price for all these things but will go elsewhere if one is missing. Customers still want to buy from people they trust and can go back to in the future, and not just transact with a faceless screen! Should dealers be changing their stock profile to suit a changing consumer? Of course, this has always been the case, but by having a close partnership between manufacturer and dealers, we will optimise our new car production and inventory planning, and the dealer will get their stock profile right!
‘Brands who remain customer-focused through this period of uncertainty will win.’
Louise
O’Sullivan GROUPE RENAULT UK: Unique value offering means a stronger position in uncertain times.
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What opportunities does 2019 present? Dacia has a real opportunity for growth in 2019. Our key models compete in the fastest-growing segments: B and C-SUV. This is the first year we will take advantage of a full year of All-New Duster sales with a full engine line-up now available. A new entry-level engine has been added to Sandero Stepway – making it even more affordable. Our unique value offering with Dacia means we’re in a stronger position in uncertain economic times. The opportunity for our network is not only there from conquest customers but we’re now seeing our first customers renewing and coming back to the brand. What poses the biggest threat to the motor industry in 2019? Economic uncertainty and a lack of consumer confidence in making big purchase decisions. What do you foresee as the biggest change coming in the year ahead? The alternative fuel market will continue to rapidly grow.
Do you think the motor industry needs to change? The industry needs to further adapt to modern consumer buying habits, ready to deal with customers’ demands and requests for information at all times of the day. We have taken the first steps in doing this through Dacia Buy Online. If you had a message for the government in 2019, what would it be? It would be to provide more EV infrastructure through increased public charging networks to support the demand for EVs. What change should dealers be making to their existing forecourt? Customer convenience is key, so a simple thing like parking is actually a major issue. People need to access the dealership; the ‘forecourt’ itself should move to become more digital. What one change should dealers make to their digital presence? They should be easily accessible, through tools
Louise O’Sullivan, network operations director for Groupe Renault UK. Lives: Buckinghamshire. Drives: Dacia Duster. Career: Having been made head of Dacia UK in 2015, Louise was promoted to network operations director at Groupe Renault UK in January 2019, retaining responsibility for the Dacia brand in the UK and Ireland until a successor to her former role is announced. She joined Groupe Renault UK in 1995 on the graduate scheme and moved up the ranks through market analysis, product marketing, sales, aftersales, fleet business and marketing communications. Petrol, diesel, EV or hybrid? For me, diesel fits my driving needs. Digital or physical presence? Both are important. Dream car? Mk1 Ford Escort. such as live chat systems that provide quick responses back to customers. Personal interaction in digital areas is important and people still want to speak to a human being. Engaging with customers through digital platforms ‘out of hours’ is important and can help to convert awareness or consideration into a potential purchase. What do car buyers want in 2019? Value for money, good customer service, ease and simplicity in purchase and ownership. Should dealers be changing their stock profile to suit a changing consumer? We don’t have too many choices for consumers – we keep the Dacia line-up simple and this means that buyers are less confused.
‘The industry needs to further adapt to modern consumer buying habits.’
Feature.
David
Peel
Mini CV
PEUGEOT UK: Confidence and momentum are the watchwords for French manufacturer.
What opportunities does 2019 present? At Peugeot UK, we enter 2019 with real confidence following three years of creating solid foundations for success through a disciplined trading strategy and successful launches of our fabulous 3008 and 5008 SUVs, all-new 508 Fastback and most recently, our Partner Van (2019 International Van of the Year). This, combined with our ‘Stronger Together’ engaged network, gives us both confidence and momentum. What poses the biggest threat to the motor industry in 2019? Brexit uncertainty is a challenge for most UK industries. Potential tariffs and forex fluctuations resulting from a hard exit would have a significant influence on trading terms across the UK automotive industry post-March. Similarly, with CAFE regulations, which come into play from 2020, consumer confidence and understanding of the real-life diesel situation will also be at the forefront of everyone’s agenda. What do you foresee as the biggest change coming in the year ahead? Outside of any Brexit impact, an acceleration towards Low Emission Vehicles (LEVs) will be the biggest change. At Peugeot, we will introduce both plug-in hybrid and fully electric vehicles this year, with a consumer message that Peugeot will offer an LEV powertrain on every model, including LCVs, by 2023. Simply put, the customer will be able to choose their Peugeot, then choose their powertrain, across the entire range.
Do you think our industry needs to change? Yes. Every business needs to continue to adapt. General retailers continue to make the customer experience more digital, enjoyable and efficient. Motor retailers in 2019 need to find ways to replicate this type of omni-channel customer journey, as well as seriously preparing in terms of culture and infrastructure for LEVs in volume. If you had a message for the government in 2019, what would it be? There is an urgent need for the government to support the motor industry in two ways. Firstly with clear communication on the benefits of driving a diesel vehicle while quashing the myth that modern diesel cars are dirty oil-burners. A government diesel scrappage programme, removing old, inefficient diesel cars, is long overdue. And secondly, to develop the conditions to assist the growth of LEVs through infrastructures and clear incentives on PHEV and BEV which they have just cancelled. What change should dealers be making to their existing forecourt? In 2017 every Peugeot dealer upgraded their physical premises to the latest Peugeot corporate identity. For 2019, every Peugeot dealer is upgrading its physical facilities to cater for LEVs with charging points at every point of sale. What one change should dealers make to their digital presence? Online retailing will continue to accelerate in
David Peel, managing director, Peugeot Motor Company. Lives: Kenilworth, Warwickshire. Drives: Peugeot 508 GT Fastback. Career: Peugeot Motor Company managing director, 2016-present; Robins and Day Ltd CEO, 2009-2016; Peugeot Motor Company fleet director, 2009; Peugeot Motor Company regional director, 2006-2009; Robins & Day / Evans Halshaw dealer principal, 1991-2006. Petrol, diesel, EV or hybrid? All four. Digital or physical presence? Both – omni-channel. Dream car? Peugeot E-Legend. 2019 and my advice to all dealers is that if you cannot replicate general retailers with a seamless online and physical omni-channel customer journey, your business won’t survive. What do car buyers want in 2019? Nothing new! They want a reliable mobility solution from a brand that is trustworthy, operates with integrity and delivers great, honest customer satisfaction. Should dealers be changing their stock profile to suit a changing consumer? Not really, as at present, consumers are confused over the misleading information they have received regarding diesel vehicles especially. Today’s trends will change as the diesel message is addressed and the reality of the situation becomes more commonly understood. New car consumer demand will ultimately drive the mix of available stock in the market place and there is definitely a place for petrol, diesel, hybrid and full electric powertrains.
‘A diesel scrappage programme, removing old, inefficient diesel cars, is long overdue.’
Victoria
Finn
PENDRAGON: Striving for simplification in a sector that is highly complex.
What opportunities does 2019 present? 2019 is in many ways no different to any other year. We’re always looking for opportunities to stand out from the crowd. Our clear strategic objective to double used car revenue by 2021 remains at the forefront, and we’ve recently launched our online marketplace carstore.com as a key step to achieving this ambition. Car Store will enable customers to purchase or sell cars online, and is supported by a growing sourcing and fulfilment network across the UK. This is a really exciting development for the group and continues to gather pace.
The industry is changing, and will continue to do so. We work in a sector that is highly complex and we should drive for simplification. For us, this is about making our services and retail offering transparent and simpler for our customers, and also the simplification of processes and minimising red tape, to enable our teams to perform at their best. We need to make the motor industry a more desirable employment prospect and also strive for exceeding consumer expectations; we cannot do this if the industry remains overly complicated and opaque.
What poses the biggest threat to the motor industry in 2019? We cannot afford to be complacent. Every single industry is facing disruption and the motor industry is no different. We all need to challenge, innovate and disrupt ourselves. Customers are always demanding more for less, and more convenience across all areas of their lives. We need to adapt and be open to changing, and changing fast.
What change should dealers be making to their existing forecourt? An interesting question – if the ‘forecourt’ is the physical premises, it’s back to basics. It needs to be welcoming, clean and tidy, well laid out and intuitive to customers. More and more we refer to the ‘forecourt’ as our digital presentation. Our websites and social presence are essential to the modern customer journey.
What do you foresee as the biggest change coming in the year ahead? Hopefully political stability – and at the time of answering, things can only get better! We need to get back to the day job. Do you think our industry needs to change?
What one change should dealers make to their digital presence? The customer’s research and decision-making process is not a simple linear journey. There are various triggers driving a customer to type in relevant search terms, watch a video or visit your website. Make sure you have appropriate content to support their various stages of research and to
Mini CV
Victoria Finn, group marketing and communications director at Pendragon. Lives: Derbyshire. Drives: Mercedes-Benz GLC. Petrol, diesel, EV or hybrid? Driving a diesel with work, but also have an electric car for personal use (BMW i3). Digital or physical presence? My responsibilities are across both, but driving the digital strategy for Pendragon is a key focus. Dream car? Porsche 911.
address any concerns, build confidence and trust – this is not achieved by just having product offers. What do car buyers want in 2019? The car buyer in 2019 still wants great customer service and a convenient experience. Expectations are set by the experiences they have in other areas of their lives, and our industry needs to continue to evolve in order to meet growing demands. Should dealers be changing their stock profile to suit a changing consumer? If retailers are using data available to them to have a stock profile that fits their market then they will see it evolving in line with market demands.
‘Every single industry is facing disruption and the motor industry is no different.’
Feature.
Phill
Jones
MOTORS.CO.UK: Managing director advises dealers to keep listening to the market and responding accordingly. What opportunities does 2019 present? The biggest opportunity for dealers is to prioritise and continue the adoption of digital into their sales culture. It’s fundamental to understand that behind every walk-in or telephone or email lead is hours of research on multiple websites that makes the consumer think this is the right car and dealer for them.
Do you think the motor industry needs to change? A rolling stone gathers no moss. We always need to be challenging ourselves to improve. The motor industry has many amazing efficiencies, but it can be guilty of trying to hold on to the status quo. Consumer choice is so rich these days, that you can quickly be left behind.
What poses the biggest threat to our industry? Brexit creates uncertainty that all of us could do without. This uncertainty could cause consumers to delay purchases which will hurt volume. Within dealerships, it is failing to evolve and being left behind by consumers who find them inflexible or unresponsive to their demands. Dealers need to factor in the potential impact of non-traditional competitors who may shine a light on known frustrations for consumers.
If you had a message for the government in 2019, what would it be? Stop playing political games, listen to businesses and your constituents and work collaboratively to see us through Brexit. I’m staggered by the lack of grit within politicians, who prefer to cut and run, rather than focus on the job.
What do you foresee as the biggest change coming in the year ahead? More people will be willing, and expecting, to do more of the car buying process online. Although the physical dealership will always be important, our research shows that the vast majority of consumers want to be able to start their deal online, including generating finance and partexchange quotes in advance, with the aim of reducing unnecessary time in dealerships. Clickto-buy schemes are worth investigating, with our research showing 37 per cent of consumers would consider buying their next car online.
What change should dealers be making to their existing forecourt? Ensure that their online and physical dealerships are consistent and effectively communicate their core values and messages. Always ask yourself ‘why would I buy from this dealership?’ because if you can’t see it, consumers certainly won’t. What one change should dealers make to their digital presence? Aside from ensuring they have the online ‘basics’ covered – fast website, excellent imagery, video, mobile-friendly design etc. – the opportunity online is to be clear why someone should buy from you. This needs to be across all platforms
Mini CV
Phill Jones, managing director, Motors.co.uk. Lives: Gloucestershire. Drives: Lexus IS 300h (it’s the accountant in me). Career: Chartered accountant specialising in corporate finance at Deloitte and Ingenious Media; Business development at Daily Mail and General Trust, Various roles at Motors.co.uk. Petrol, diesel, EV or hybrid? Hybrid. Digital or physical presence? Digital. The car-buying journey starts online! Dream car? Porsche 944.
including car search websites and social media as well as their own websites. What do car buyers want in 2019? Essentially the same as they have always wanted: good-quality cars with valuable information; to be listened to and treated well; and ultimately to get a fair deal. The perceived challenge is doing this online, but if you get the culture right this will naturally flow through your business. Should dealers be changing their stock profile to suit a changing consumer? Dealers are experts at doing this. We saw in 2018 dealers smartly reducing diesel stock to better match consumer demand. Continue to listen to the market and respond accordingly.
‘Consumer choice is so rich these days, that you can quickly be left behind.’
Paul
Humphreys COX AUTOMOTIVE: The need to change is being driven by consumers’ desire to do more online. What opportunities does 2019 present? 2018 was a challenging year for the UK car industry – alongside many others – and so I think the main opportunity is to reset and refocus on how we go to market. We’re seeing a great deal of innovation in e-commerce and digital retailing, and those businesses that are ready to embrace these changes will certainly stand a better chance of enjoying success in 2019. What poses the biggest threat to the motor industry in 2019? 2018 was a challenging year for new cars, and it looks likely that this will continue in the first half of 2019. As a result, many dealers have switched their focus to used cars, capitalising on the relative buoyancy in the market when compared to new, and there will still be plenty of opportunity in this area over the months ahead. What do you foresee as the biggest change coming in the year ahead? I don’t think there will be ‘one big change’ for the industry this year but rather a continuation – and possible acceleration – in the growth of online retailing and e-commerce. Do you think the motor industry needs to change? Absolutely. Every industry needs to change. Change is the only constant. For manufacturers, we’re seeing an unprecedented level of change with the fall in
diesel sales and the race to create increasingly viable AFVs. For retailers, the need to change is being driven by consumers’ desire to do more online. Retailers can’t just expect someone to deliver them an e-commerce platform to sell cars. The online experience must be supported by the right roles and responsibilities in the showroom. If you had a message for the government in 2019, what would it be? Obvious really – let’s get Brexit behind us one way or another. The automotive industry is a major employer and an important sector for UK business – from new and used vehicles to the parts, technology, services and solutions surrounding them. Don’t underestimate the impact uncertainty about Brexit could have. What change should dealers be making to their existing forecourt? Retailers need to be ready to help consumers with their desire for convenience, and find a blend between physical and digital that effectively connects people and processes within the dealership with the online journey. It’s about connected retailing, connecting how consumers search and view vehicles with how they actually buy them. What one change should dealers make to their digital presence? Make it easy. Provide consumers with all the
Mini CV
Paul Humphreys, managing director, Cox Automotive Retail Solutions. Lives: Yorkshire. Drives: Volvo XC90 T8. Career: High street and grocery retail for 12 years followed by six years in aviation and online travel retail before joining Cox Automotive in 2014. Since joining Cox, sales director for retail solutions and managing director of incadea UK before joining the UK board to deliver a ‘connected retail’ experience that brings together valuation & appraisal, sales & service, and digital marketing. Petrol, diesel, EV or hybrid? Hybrid. Digital or physical presence? Both of course. Dream car? Singer 911 – Classic appeal with modern tech!
tools and information they need to do what they want, when they want, in the way they want. The beauty of a digital showroom is that it’s easier to make frequent, small changes to optimise your presence. If you have to make one change, engage with solutions that are flexible and designed to make the most of opportunities. What do car buyers want in 2019? As ever in the digital age, consumers want more convenience and control – trust, transparency and ease of process are key to a great experience. Car buyers want an easy path through the whole buying process, from initial search, through part-exchange, to completion. Should dealers be changing their stock profile to suit a changing consumer? Retailers should constantly optimise their stock profile to suit their strategy and their identified customer base and profile. The opportunity is in using data tools to monitor the market and stock availability to understand what vehicles will increase stock turn, and maximise returns.
‘Don’t underestimate the impact uncertainty about Brexit could have.’
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Tanesha
Stafford
ARMCHAIR MARKETING: Digital consumer journey is going strong with plenty of room for innovation.
Mini CV What opportunities does 2019 present? The opportunity to thrive – it looks like the market will continue to slow, which means we’ll need to work harder on conquesting. So regardless, for those that want it, and those that have the knowledge, 2019 brings leads, walk-ins and cold, hard cash. What poses the biggest threat to the motor industry in 2019? I would have to say Brexit uncertainty. As there’s no clarity about the conditions under which we’re going to leave the EU, it’s understandable that both private consumers and businesses have become more wary of investing. What do you foresee as the biggest change coming in the year ahead? It’s difficult to say. If, as looks likely, we’ll leave the EU without a deal, both tariffs and loss of easy access to our biggest market would make quite a change. Whilst the uncertainty is there, I suspect OEMs will be cautious to push, influence or invest in our market and without the buzz and noise we’ve experienced not too long ago, it’s hard to stimulate new car buyers into the pot. Do you think our industry needs to change? Our industry continues to see opportunity in the digital consumer journey and it’s going strong, with plenty of room for innovation. We’re also seeing it coupled with good old reliable processes becoming adapted for the online experience. Our industry is also experiencing a really positive equality focus, specifically
highlighting the opportunities for females in the motor industry and slowly finding the confidence to openly challenge any remaining old-fashioned and derogatory behaviours. If you had a message for the government in 2019, what would it be? To set aside political views and work together towards minimising the potentially devastating impact that a hardline Brexit could have. What change should dealers be making to their existing forecourt? Should we look at a forecourt in silo? Or is it wise to look at it as part of a flowing journey from online to offline? Car dealers are now open 24/7 and we can generate leads while you sleep. What’s really changed? Make sure stock is displayed in the best possible way and that no information is hidden. Make it easy for customers to enquire. Put systems, processes and procedures in place to accurately track enquiries. What one change should dealers make to their digital presence? Invest properly in your advertising and align it to your business goals and metrics. Don’t invest in people or agencies that can’t help you understand how to do that and aren’t able to demonstrate a clear path to how much money you directly make from your advertising. Most people don’t realise you can do that in the automotive industry, and that’s largely driven by a common theme of historic smoke and mirrors reporting that seemed to create more
Tanesha Stafford, founder, Armchair Marketing. Lives: Northampton. Drives: Fiat 500. Career: An advanced paid advertising specialist, Tanesha has managed Google and Facebook advertising accounts for major global brands such as AutoTrader South Africa, Toyota and Lexus. Her work spans across multiple countries, in multiple languages. Petrol, diesel, EV or hybrid? Petrol. Digital or physical presence? Digital. Dream car? A super-classic Chevrolet Corvette.
questions than answers. As a result, dealers understandably seem to have a lost a little faith with regards to reporting their advertising ROI. Those who have found highly skilled partners are using their advertising to grow revenues and profits while the market shrinks. What do car buyers want in 2019? Apparently not a lot. Many just want you to offer a smooth, stress-free car-buying journey, where they get given all the information they need; can easily reach out to the dealer in a way that best suits them; and get a friendly professional who genuinely wants to find the best solution for them. They also want the industry to increase its fairly consistent doom statistic: only 50 per cent of email enquiries are responded to. Should dealers be changing their stock profile to suit a changing consumer? It seems like a no-brainer. Having stock that doesn’t sell is a very costly exercise, as any dealer in that situation will confirm.
‘Make sure stock is displayed in the best possible way and that no information is hidden.’
Iain
Wight
WILLIAMS ADVANCED ENGINEERING: The move towards electrification is presenting significant openings.
What opportunities does 2019 present? 2019 looks like another year of volatility, and while that presents challenges for businesses it also naturally offers opportunities. For example, as automotive moves towards greater electrification, this presents us at Williams Advanced Engineering with openings to support car makers in terms of vehicle integration, batteries and more, thanks to our award-winning experience as the original battery supplier for Formula E and our transfer of that know-how into commercial applications. We are already working with Aston Martin on its first battery-electric vehicle, the Rapide E, including – via our joint venture with Unipart – Hyperbat, which will open its factory in Coventry this year. Hyperbat will be the largest independent vehicle battery supplier in the UK and we will be seeking out additional customers for it this year and beyond to help electrify vehicles from car makers in the UK, Europe and beyond, which is a significant opportunity. In addition, we expect to be asked to support manufacturers through our own battery, wind tunnel and aerodynamics, lightweight materials and simulation and training capabilities.
exist just a decade ago. Automotive could see similar things taking place, in particular inspired by the transition to electric vehicles. Will that disruption take place in our sector? Who will be the disruptors? Where will they come from? How will the incumbent leading companies respond? Competition makes everyone better but it doesn’t always let everyone win. So what will be the fallout from this change and can we all be nimble enough to respond sufficiently quickly? It’s what makes the current period fascinating for our industry. The risk is that the uncertainty during this transition might lead to people keeping their money in their pockets until things shake out. So while we work on new, innovative products we also need to explain clearly where we’re going as an industry and how people will benefit to reduce this risk as best we can.
What poses the biggest threat to the motor industry in 2019? I would suggest that inertia is a big challenge. We have already seen other sectors, such as retail and aerospace, being shaken up by new, nimble entrants making use of technology that did not
Do you think the motor industry needs to change? All industries need to change constantly. The world doesn’t stand still and nor should we. As we stand on a significant shift to electrification that is never more true than right now.
What do you foresee as the biggest change coming in the year ahead? Definitely electrification. The shift to electric vehicles has been slow until now but I expect to see an acceleration this year as more companies launch new products to meet social and customer demand.
Mini CV
Iain Wight – Business development director, Williams Advanced Engineering Lives: Shipston on Stour, Warwickshire. Drives: AMG E43 and Ford Transit. Career: Ferranti – Electronics Development Engineer (1987-1990), Bosch – Automotive Systems (1990-1995), Pi Research – Sales Manager (1995-2003), Ricardo – Director of Transmissions (2003-2017), Motorsport Industry Association – Chairman (2017-present), Williams Advanced Engineering – Business Development Director (2017 – present) Petrol, diesel, EV or hybrid? EV. Digital or physical presence? Being in business development, I’d lean towards a physical presence. Dream car? Singer Porsche DLS or a Bugatti Chiron.
If you had a message for the government in 2019, what would it be? Listen. Often, the desire to be seen to be doing something to meet social demands can be overpowering. But listening to industries that can deliver on these demands will enable more effective solutions. It might take slightly longer but it will deliver greater benefits in future. The way the government has embraced the challenge of electric vehicles and engaged the sector to understand it further is encouraging. We need to keep that going together, as well as spread the practice of engagement to other areas of potential collaboration.
‘Competition makes everyone better but it doesn’t always let everyone win.’
Anton
Feature.
Hanley
THE LEAD AGENCY: The chase is on to realise opportunities in the year that lies ahead.
Mini CV What opportunities does 2019 present? As with any year in business, we are confident that 2019 represents a year of opportunity, although we will have to chase it down for it to be realised. The Lead Agency helps automotive retailers engage with on-brand car buyers who are actively in the buying cycle to purchase a new car. Through our network of digital partners and proprietary digital assets, we engage directly with more than 50,000 consumers per month who require assistance in navigating the new carbuying landscape to find the most suitable car for their circumstances. As a result of continued investment into our workforce, technology, industry partnerships and more, we are uniquely positioned to be the intersection of car buyers, publishers and the automotive retailers, assisting in the matching and directing to help all three achieve their goals. What poses the biggest threat to the motor industry in 2019? The biggest threat to the automotive industry in 2019 is the lack of consumer confidence in the marketplace pre-Brexit and potentially post-Brexit. We all know that generally in uncertain times big purchases are delayed.
What do you foresee as the biggest change coming in the year ahead? The biggest change in the year ahead will be around our relationship with Europe and how that affects manufacturing in the UK and the lack of consumer confidence that relates to car buying. Do you think the motor industry needs to change? The automotive industry is changing, and that rate of change will only increase as the automotive industry fundamentals change (product, usage profile, continuing digitalisation of the research and buying process, etc). With major manufacturers already exploring, investing in and testing mobility as a service – widely considered to be one of the growing trends in the industry – there is a feeling that ownership will become less important to the average consumer. If you had a message for the government in 2019, what would it be? The government needs to get behind the automotive industry, which provides £20.2bn to the Treasury every year and accounts for around 850,000 jobs. The support should equate to clear policies around company car tax, emissions, congestion charge policies, etc. The government should also be ready with a ‘scrappage-style
Anton Hanley – CEO and founder of The Lead Agency. Lives: West Hampstead. Drives: Waiting for a Tesla 3. Career: Seventeen years at The Lead Agency. Petrol, diesel, EV or hybrid? EV. Digital or physical presence? Digital. Dream car? Singer-Williams 911 DLS.
scheme’ if the market rapidly deteriorates around new car registrations. What change should dealers be making to their existing forecourt? In this day and age, it’s imperative that the offline forecourt and online forecourt are 100 per cent aligned with stock levels. What one change should dealers make to their digital presence? Mobile first. What do car buyers want in 2019? SUVs and AFVs. Should dealers be changing their stock profile to suit a changing consumer? Smart dealers know their customers and will no doubt change their stock profile to reflect the market demand.
‘There is a feeling that ownership will become less important to the average consumer.’
Max
Stolton
GOOGLE: Making the purchase process as simple and seamless as possible is the name of the game.
What opportunities does 2019 present? Users turn to digital for intuitive and assistive experiences. It is the first place many people turn to before making a purchase decision and auto is no exception. They have access to a wide range of information and dealers have the opportunity to be there at those key moments, providing genuine value to assist their purchase decisions. My advice would be to maximise every relevant opportunity in digital to connect with potential customers, providing useful information that helps to inform their purchase decisions and elevate your brand above the competition. What poses the biggest threat to the motor industry in 2019? My answer hasn’t really changed from last year. Uncertainty and confusion cause doubt in consumers’ minds and we’re seeing some put on hold bigger purchase decisions such as a new car. We’re also starting to see more waves of disruption with new digital-first propositions entering the market in 2019. These new business models, potentially backed by large funding, are going to pose a threat to dealers who aren’t able to transform fast enough to meet consumer demands. What do you foresee as the biggest change coming in the year ahead? The combination of fewer car sales in the near term, consumers demanding more, and disruptive companies entering the market will be the catalyst for change through 2019. It will
provide an opportunity for the dealerships that embrace it. I expect to see dealers and portals start to test new approaches to customer acquisition, and some interesting new business models appearing. Do you think the motor industry needs to change? I think we’re seeing a realisation from the industry that change is inevitable. Manufacturers have been experimenting over the last few years with new sales models and I think 2019 will be the year that dealerships start to change some fundamentals in how they think about customer engagement and fulfilment, particularly through digital platforms. What changes should dealers be making to their existing forecourts? This isn’t my area of expertise but I am already seeing some interesting uses of technology to improve the customer experience and I’m excited to see how these evolve. Making the purchase process as simple and seamless as possible is the name of the game. Being able to check in to an appointment, browse the full range of cars or experiment with finance offerings are all simple ways to assist your customers and enhance their dealership experience. Thinking longer term, I look forward to seeing how dealers can make use of new technologies such as augmented reality. In a world where you can virtually showcase your whole stock, do you need large, expensive forecourts filled with cars depreciating in value?
Mini CV
Max Stolton, industry manager, Google. Lives: London. Drives: Mini Countryman SE. Career: Seven years in various digital marketing agencies in Canada, Australia and the UK, leading digital strategies for some of the UK’s top brands. I’ve been at Google UK working with automotive dealerships for the last 16 months. Petrol, diesel, EV or hybrid? I own a hybrid but would go EV if the infrastructure was in place. Digital or physical presence? Digital. Dream car? Aston Martin Vanquish Zagato. What one change should dealers make to their digital presence? Look for the friction in your purchase journey, especially on mobile. Leading players have made gains on site speed but the market as a whole still lags behind on mobile user experience and an over-reliance on poorly captured leads. What do car buyers want in 2019? Beyond the constant demands of getting the best price and wanting more choice, consumers are demanding more control, convenience and a better experience when buying a car. Should dealers be changing their stock profile to suit a changing consumer? I think you would be hard-pressed to find any successful business that doesn’t change what they offer based on consumer demands. Stock that meets customers’ needs is important but I would also argue that entire business models may need adapting in the future in light of fewer people taking their driving test or owning cars. [CD]
‘Maximise every relevant opportunity in digital to connect with potential customers.’