Issue 152 | November 2020 | CarDealerMag.co.uk | £6
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Issue 152 | November 2020 | CarDealerMag.co.uk | £6
INVESTIGATION
HOW A LACK OF GENDER DIVERSITY IS DOING THE MOTOR TRADE NO FAVOURS
FIRST DRIVE
765
McLAREN
OVER THE HILL: WE TRY LATEST ABARTH 500 AT BRITAIN’S OLDEST RACING VENUE
NEWS
• ELECTRIC VW CROSSOVER • RENAULT COUPE-SUV • DIESEL FIESTA AXED • NEW £8.5M AUDI SITE • CAZOO LOSES NEARLY £19M IN FIRST YEAR THE MANUFACTURERS AND SUPPLIERS YOU RATED AND SLATED THIS YEAR INTERVIEW
PAUL
PHILPOTT
5LT
ULTIMATE WEAPON FROM WOKING OR YET ANOTHER IDENTICAL MCLAREN?
KIA BOSS ON THE STRONG FUTURE OF PHYSICAL DEALERS
PLUS
HELP& ADVICE
FCA SPOT CHECK WARNING; WHY YOU NEED TEST & TRACE QR CODES
PSA MEGA DEALER: INSIDE GIANT PEUGEOT, CITROEN AND DS CHISWICK SITE
The UK’s Best Used Car Warranty
02 | CarDealerMag.co.uk
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THE BOSS FOUNDER James Baggott
james@thebaize.com Twitter: @CarDealerEd
EDITORIAL CHIEF SUB-EDITOR John Bowman
john@blackballmedia.co.uk
HEAD OF CONTENT Jack Evans
jack@blackballmedia.co.uk Twitter: @jackrober
MULTIMEDIA MANAGER Jon Reay jon@blackballmedia.co.uk Twitter: @JonReay
HEAD OF DESIGN Graeme Windell
graeme@blackballmedia.co.uk Twitter: @graemewindell
CONTRIBUTORS James Batchelor, Darren Cassey, Rebecca Chaplin, Nigel Swan, Ted Welford
FINANCE
FINANCE MANAGER Kate Gordon
kate@blackballmedia.co.uk
ADVERTISING SALES MANAGER Kevin Day
kev@blackballmedia.co.uk
ACCOUNT MANAGER Michelle Searle
michelle@blackballmedia.co.uk Twitter: @cardealermich
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WELCOME. I
t was a depressing start to the week for anyone who didn’t know the full picture. The SMMT’s report on the September new car market – although accurate – took a distinctly, and some would say unnecessarily, pessimistic view. The SMMT chooses its comments carefully when it briefs the press and, make no mistake, there was a bigger story to the labelling of September’s registrations as the ‘weakest ever’. The trade body would have thought long and hard about highlighting the 70-plate change month’s near-16 per cent drop on the 10-year September average while it also used phrases like ‘poor performance’, ‘torrid’ and ‘not a recovery’ for a reason. The SMMT’s bleak picture was designed to resonate with the government. It’s been going cap in hand to ministers for months, putting draft paper after draft paper in front of the business and Treasury departments, arguing the case for car industry support. And I’m not denying it’s needed. Quarter four looks like it could be far harder work than the summer months, as furlough comes to an end and winter restrictions really kick in. Local lockdowns are already causing issues for the motor trade in those localities, according to reports from dealers operating in areas affected by them. Some Welsh dealers say trade has halved where lockdowns are toughest, while Motorpoint admitted in its update to the Stock Market in early October that it too had seen weakening demand in areas affected by Covid-19 restrictions. However, what the SMMT is really worried about is Brexit, said one dealer group boss. With a deal hanging in the balance, the knock-on effect of a no-deal scenario would be devastating for an already battered and bruised motor trade. What makes the SMMT’s job harder though is the fact dealers across the country are reporting profits well ahead of expectations. Some are already ahead of last year – many others expect to exceed 2019’s numbers. That’s hard to believe isn’t it? But what was looking set to be the biggest-ever September market petered out towards the end of the month as it became clear the manufacturers wouldn’t be piling into the market with pre-registrations quite like they did in 2019. One insider told me that 110,000 cars were registered by dealers on the last day of September last year as manufacturers offered juicy incentives to its franchisees to bolster their numbers. That simply didn’t happen this year – mostly because manufacturers just didn’t have the cars. That’s no bad thing. Pre-registrations are a painful habit that many dealers find hard to break once hooked. Relying on the volume bonuses to prop their businesses up that they can only achieve by self-registering cars then selling them cheap is a vicious cycle. A customer quickly spots he can get a ‘delivery mileage’ model sitting on the dealer’s used forecourt for a few grand off the price he’s being quoted for a new car – thus that dealer loses a new sale, and so the cycle continues. Yes, the market may have been down, but the smiles on the dealer bosses’ faces say it all. They’re making more money from ‘real’ sales rather than chasing forced numbers. Yes, it might not look great for the SMMT’s numbers, but dealer accounts look far healthier as a result.
The SMMT’s bleak picture was designed to resonate with the government.
JAMES BAGGOTT Founder, Car Dealer CarDealerMag.co.uk | 03
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IGNITION. ISSUE 152 | NOVEMBER 2020
CONTENTS
31 12
16
69 ‘July was an all-time record month for us with sales up 28 per cent on last year.’ 6
FORECOURT
‘The steering, bristling and alive, forces you to wrestle the car around the bends.’ 28
Interview: Paul Philpott Car news Investigation Feedback News digest Supplier news Business news Car Dealer Live Finance
6 10 38 40 44 48 50 54 56
FORECOURT McLaren 765LT BMW 220d Gran Coupe
28 31
FEATURES Rebranding PSA’s new dealership Car Dealer Power Awards Maserati MC20 Hillclimb challenge COMMENT James Baggott Big Mike James Litton
38
INTERVIEW
8
FEATURE
‘You can’t help but notice huge tyre marks going into straw bales, or worse – a rather steep drop.’ 52
8 12 16 42 52
21 22 25
ADVICE FCA spot checks Test and Trace QR codes
61 63
DATA FILE The Statistics Suppliers Guide Long-termers
64 67 69
DATA FILE
‘The majority of manufacturers are reporting an exceptionally strong month.’ 64 CarDealerMag.co.uk | 05
INTERVIEW
‘We are not going to do anything that competes with our dealers being our primary route to market’ Kia Motors UK and Ireland president and CEO Paul Philpott tells James Batchelor why the network is an integral part of the brand’s success.
W
hen a man like Paul Philpott says he doesn’t believe in a pure online car sales model, you have to take note and listen. As the first non-Korean to hold the position of president and CEO of a region outside of the brand’s home market, he’s a man who knows what he’s talking about. Before Kia, Philpott had various sales and marketing roles at Ford, before moving to Toyota GB as its commercial director in 1997. After nine years at the Japanese car maker, he packed his bags to go to Kia Motors UK as managing director – a move that would have caused eyebrows to raise. It’s almost hard to remember that in 2007 Kia was still a manufacturer at the sidelines, watching the established players wooing UK buyers like they always had done. But with genius Peter Schreyer already holding the designer’s pencil for 12 months at that point, Kia was on the move and the Cee’d hatchback and Sportage SUV helped to turn the brand around. In 2010, Kia Motors Europe came calling and Philpott took the job of chief operating officer, but in 2012 he was back in the UK taking the role of president and CEO for here as well as Ireland. In 2011, the year before he returned, the South Korean car maker was shifting just over 53,600 vehicle – last year, it was 97,323. With a track record like that, he’s a man who knows how to get the job done, but with car manufacturers all jumping on the end-to-end online sales model and believing it to be the next big thing in the motor retail industry, Philpott’s reservations are surely out of tune? ‘At the moment we do not sell cars online – we have a dealer network,’ he says in an interview you can watch in full on our website. We’re sitting with Philpott in Kia’s purpose-built training showroom at its head office in Walton-on-Thames, and he’s taken time out to chat with us along with accepting the only award that matters in the motor trade – the Car Dealer Power Best Manufacturer award for 2020. And that dealer network Philpott mentions is happy. The reason why Philpott is behind his dealers and not following other car makers’ leads and bowing to new consumer tastes, shaped by weeks being shut up in houses during lockdown, is one of competition and a belief customers don’t want online car sales. ‘We are not going to do anything that competes with our dealers being our primary route to market,’ he says. ‘But at the same time we want to deliver the experience each individual customer wants and take them as far online as they want to. ‘But I think the best option for most customers is through the dealership, experiencing the physical environment and meeting the people. So, when they have servicing needs in the future it’s not unfamiliar to them. You can’t get a car serviced online. I’m not sure pure online is with us any time soon. You and I would probably spend hundreds of pounds 06 | CarDealerMag.co.uk
‘July was an all-time record month for us with sales up 28 per cent on last year.
Kia UK boss Paul Philpott accepts the award for Manufacturer of the Year Power Awards coverage starts on page 16
ELECTRIFIED CARS
I strongly believe an amalgamation of offline and online can deliver the best experience for most customers. online without consulting with anyone who might know what they are talking about, and most of the time we tend to get it right. Or if we get it wrong we send it back,’ he says. ‘I don’t know about you, but I would not be up for spending tens of thousands of pounds and buying something without talking to someone and understanding why that product is the one I should be spending my money on – sell it to me! That’s why I don’t think full endto-end sales processes are really going to take the car market by storm. ‘Our position is the dealer is integral to this – test-driving a car for most customers is still a key part of the buying process, so I need customers to test-drive my product range, particularly now we’re getting EVs, PHEVs, HEVs, petrols and diesels. Come in and try out the product, understand it and choose the one that’s right for you. Making that decision at the press of a button at home without doing that I think is very, very limited.’ Kia is rolling out more online services for customers such as live chat and the ability for dealers to conduct live video walkarounds with customers, but then the role of the dealer and the physical interaction comes into play. ‘In May, for instance, we had no dealers open – we don’t have a pure online sales process and yet we registered over 1,000 cars. So, dealers have processes to get cars to customers if they want to do it online, or over the phone or without a physical interaction, but I strongly believe an amalgamation of offline and online can deliver the best experience for most customers.’ It’s not just with its dealers where Kia is in a strong place but also in the market as a whole. We’re speaking just days before September’s crucial 70-plate registrations data is published and Philpott is pleased about the year-to-date performance. ‘I have to say that since June we have had a really good time. July was an all-time record month for us with sales up 28 per cent on last year, and even in August we sold over 4,000 cars, 20 per cent up, and we went into September with a good order bank. September is looking okay. I’m not going to say we are going to break any records. We will be down on last year.’ As it turns out, September was down after two months of growth, but compared with other big players it was a strong performance. Kia shifted just under 15,000 cars, which was nine per cent down on September 2019, but it considerably outpaced the likes of BMW, Mercedes-Benz, Ford, Vauxhall and sister brand Hyundai. Philpott is cheerful though – probably because there’s much to be pleased about but also, as he says, he needs to be. ‘I think Q4 will be tough. We’re seeing an evolving situation with coronavirus and facing the reality of having restrictions being with us for the next six months. All of that is a worry. ‘I can’t control that, but what I can control and drive is our market share of whatever demand is out there. In the end, consumers will have money to spend, and I think the fact we’ve got an improving supply line of eco cars which more people are turning to, plus we’re launching a brand new Sorento and we’re going to launch three mid-cycle small car facelifts drives feel-good in the dealerships and is something to talk about to existing customers. ‘It would be very easy to have doom and gloom through the winter, but we’ve got so much to be grateful for. If I get down as a head of a UK business then my people get down and that rubs off on my dealers and that then rubs off on their people. I remain upbeat.’
Supply is coming through – and it’s a good job, too! NOW it has the supply, Kia is going all out with electrified cars ‘In today’s marketplace you need a good range of electrified cars,’ says Paul Philpott. ‘Year to date, about 22-23 per cent of our sales are electrified models [hybrid, plug-in hybrid and full electric] and I think around 11 per cent of our full sales for the whole year are pure electric – so, e-Niro and Soul EV. This is really helping us drive volume growth, share growth and putting profit into our network – and boy did they need it after quarter two.’ Last year, Kia faced the euphoria of its all-electric e-Niro winning the What Car? Car of the Year award but then couldn’t get the cars into the country. That’s now sorted and Philpott is bullish on targets in 2020. ‘Dealers have done a really great job with e-Niro and customers were prepared to wait. ‘The supply is getting better, and to demonstrate that, at the end of August we registered around 3,000 e-Niros. In Q4, I expect to add around 3,0003,500. Full year will be around 8,000. The supply is coming through and it really needs to – we’ve all got CO2 targets to hit on a pan-European basis this year, but from next year we have to hit it ourselves, so EVs will become even more important.’
Click here to see the video of our Paul Philpott interview CarDealerMag.co.uk | 07
REBRANDS
WHAT’S
LOGO-ING ON?
Vauxhall has just announced a wholesale rebrand, with a simplified red logo replacing its ornate chrome one. But why shake things up right now?
V
auxhall’s logo has been a challenge for several years. Unlike other car brands, it’s a UK-only badge, making it truly unique – no other manufacturer has the market volume to have a Britain-only brand, but rebranding Vauxhall as Opel in the UK has never got past the starting line, such is the long-term familiarity with Vauxhall here. Then there’s the griffin itself. It was originally part of the coat of arms of Sir Falkes de Bréauté, who was Lord of the Manor of Luton in the 13th century – a title that many of us would probably politely turn down today. But the obscure logo has come in for criticism by some in recent times, its historical significance lost to the idea of it being a ‘backward-looking chicken’, to quote one former marketing manager from the Luton-based firm. So what, then, is the point of a rebrand, why now, and will it be a success?
Other car brands that have changed their logo Audi
Nissan
Why rebrand?
The new Vauxhall logo first appeared quietly on Twitter back in June and very few people noticed, but with it set to ‘properly’ debut on the new Mokka SUV, Vauxhall has gone public with the redesign, which it describes as ‘confidently British’. ‘Constantly evolving and innovating, the brand continues to reinvent itself, with these most recent updates a reflection of Vauxhall’s commitment to ingenious design and modernisation,’ said Vauxhall Motors managing director Stephen Norman – although we wonder if he sounded as unconvinced as both we and the dealer network were when he spun that line to the press officer. One Vauxhall salesman in the east of England, who asked not to be named, told us: ‘The logo looks cheap and nasty, whereas the old black and silver one was quite classy. When the last rebrand happened with the first Insignia we welcomed it, as it looked much smarter than the old one, but this takes it right back – and have they even considered the costs of rebranding everything from dealerships to business cards?’ The answer is actually yes. Much as Vauxhall would like to hide behind the veneer of ‘confident, British and modern’, the reality is that it’s both cheaper and far easier to produce and reproduce two-dimensional logos for digital use, which has been by far the biggest shift over the past decade in how brands across all areas of marketing communicate. It’s not the only carmaker to do so, either, with Volkswagen, Audi, Nissan and Toyota all returning to flat 2D designs in recent times. Simplicity also aids recall. A survey carried out by van sales platform Van Monster earlier this year showed that Vauxhall’s logo had the lowest level of recall (behind even Alfa Romeo) when people were asked to draw it from memory – something that may also have been behind the decision to simplify it, not least because of some of the hilarious results. 8 | CarDealerMag.co.uk
Toyota
Volkswagen
Why change a logo at all?
Vauxhall’s new logo
What does this mean for dealers?
Vauxhall has been very keen to point out that any changes to corporate identity at its dealerships will be carried out ‘over a period of time’ and ‘as part of our normal maintenance and visits cycle’, but the brand can’t hide behind the fact that its changes will create costs for its franchise partners at a time when such things will be welcomed least. It’ll be a big challenge for Vauxhall, which was third from the bottom in this year’s Car Dealer Power manufacturer survey with an overall score of 52.0 out of 100 (see page 16). Meanwhile, a raft of senior management changes and rationalisation at parent group PSA’s head office has seen a number of redundancies and staff roles reassigned, leading to mass confusion around the network. This is partly countered by the introduction of the new Mokka, which at last gives Vauxhall a replacement for what was its second-best-selling model behind Corsa until it was deleted after the PSA takeover.
So what is Vauxhall playing at – and why now of all times?
Well, the reality is that the wheels of change turn slowly in the car industry, so while nobody from Vauxhall will openly say as much, it’s likely that the decision to redesign the logo was taken well over 12 months ago, before Covid-19 was a global concern and car dealers were under lockdown. ‘I recall working for GM during the Chevrolet logo redesign of 2011,’ said Craig Cheetham, former PR director for the now-defunct in the UK brand. ‘There was a good two years of toing and froing and indecision around whether or not to add a shadow to the Chevrolet badge and if so how big to make it. ‘Had it not been for an urgent need to get the new logo ready for the brand’s centenary in 2011, I’m not sure they’d have ever made their minds up. And remember, this was a huge global brand – in the USA it has as much instant recall as the likes of Pepsi or Nike.’ Chances are that the creative agency behind the new Vauxhall logo had already been appointed, contracts signed and money handed over well before the car industry faced its biggest challenge in living memory – and that probably explains why Vauxhall didn’t go big on the new logo back in June, when it first trickled its way on to Twitter. But does the fact that barely anyone noticed back then tell a story of its own?
Click here for more Vauxhall logos drawn from memory
ACCORDING to the business networking app Slack, which recently brought in a more simplified logo, the need for change comes about for a number of reasons – brand fatigue, new leadership, awareness and recall, or a poorly done original. Of these, Vauxhall ticks at least the first two boxes. The most famous example of the last one, meanwhile, is Apple computers – its ‘apple with a bite taken out’ logo is one of the most famous in the world, but until 1989 it had an ornate, almost Georgian-looking logo featuring Isaac Newton sitting beneath a tree and about to experience one of the most famous moments in physics. Very few people remember it, even though it was originally designed to position the brand as a game-changer in science and technology. The instantly recognisable apple is so much easier to recall, even if it doesn’t tell that story. But former Netflix marketing man Barry Enderwick warns against just changing logos for the sake of it. ‘Brand fatigue is when a company simply grows tired of its current logo. They’ve seen it day in day out and are, frankly, bored with it,’ he said in an interview with Slack. ‘It may be tempting to look down your nose at these companies but we had to fight that battle internally at Netflix more often than you would imagine. ‘This, of course, is a terrible reason to change the logo. Why? In the case of an older, more established company, it can destroy brand recognition that the logo helped build. ‘It is a needless distraction and diversion of resources to something that is not going to really move the needle.’ CarDealerMag.co.uk | 9
DASHBOARD
CAR NEWS ROUND-UP Manufacturers have been busy refining existing models and producing new ones. We look at 10 of the results... VOLKSWAGEN
Covers are thrown off the new ID.4 VOLKSWAGEN has finally revealed its ID.4 electric SUV after several weeks of teasers. Powered by a 77kWh battery, the ID.4 initially arrives with a claimed electric range of up to 323 miles, yet will still be capable of going from 0-60mph in under 8.5 seconds and hit a top speed of 100mph. Eventually, it’ll be available with four power outputs as well as two choices of battery sizes, giving buyers flexibility when it comes to powertrain choices. It’s set to go on sale in the UK later this year.
HYUNDAI
AUDI
New N Line brings sporty edge to i20
Plug-in hybrid A3 starts at £33,060
HYUNDAI has revealed a sportier N Line version of its i20 model. The exterior has been given a series of additions over the regular i20, with features such as a redesigned front bumper, black grille with N Line badge and chrome twin exhaust outlet being key additions to the vehicle’s appearance. Buyers can also choose from one of four exterior colours – black, grey, white and brass – while white cars can be specified with an optional twotone black roof, too.
AUDI has revealed a plug-in hybrid A3 hatchback. It’s available in Sport and S line specifications, with prices starting from £33,060. Badged 40 TFSI e, it combines a 1.4-litre petrol engine with an electric motor, and a battery that provides up to 41 miles of electric driving. The combined power output is 201bhp, while torque is 350Nm. It can go to 60mph in 7.4 seconds and on to 141mph. The economy figure is 282.5mpg and CO2 emissions are 31g/km.
10 | CarDealerMag.co.uk
BMW
4 Series Convertible joins coupe in range BMW has revealed its new 4 Series Convertible. With first deliveries expected in March and UK prices starting from £45,785, the drop-top joins the regular hard-top 4 Series coupe in the range. All cars come in M Sport spec as standard with full LED headlights regardless of trim level. The folding fabric roof, meanwhile, delivers the robustness of a retractable hard top with the appeal of a fabric roof, says BMW, combining large panels and a flush-fitting rear window.
ROLLS-ROYCE
Extended Ghost means more space
ROLLS-ROYCE has introduced an Extended version of its Ghost luxury saloon. Some 170mm longer than the standard car, the change brings ‘greater space and legroom for rear-seat occupants’. Inside, an optional reclining ‘serenity seat’ can be selected, bringing a level of comfort the Goodwood-based company likens to a business jet cabin. A champagne fridge has been installed between the two rear seats, and it features two cooling modes.
RENAULT
FERRARI
Arkana coupe-SUV is coming next year
Omologata is a true one-off supercar
THE Renault range has expanded with the addition of a coupe-SUV model called Arkana. It slots into the popular niche of SUVs with a coupe-like sloping roof that offers a combination of practicality and style. The Arkana is based on the same platform as the Clio and Captur and gets the latest hybrid powertrains. They combine a 1.6-litre petrol engine with two electric motors for a combined 138bhp. It also uses a clutchless gearbox that Renault says produces smoother shifts, while it should be able to complete up to 80 per cent of city driving in electric-only mode.
FORD
Mustang Mach-E GT can hit 60mph in 3.5 seconds FORD has unveiled an uprated version of its Mustang Mach-E electric SUV – the Mach-E GT. Set to arrive in the UK in late 2021, the new Mustang Mach-E GT packs an all-wheel drive plus dual electric motor setup, resulting in a total output of 459bhp and 830Nm of torque. That results in a 0-60mph time of around 3.5 seconds and a top speed of 124mph.
KIA
FERRARI has revealed a striking new one-off supercar – the Omologata. At the heart of the Omologata is a powerful V12 engine, while a range of aerodynamic touches and bodywork tweaks have been applied to create one smooth look. It was a two-year project to create the car, with it taking the same basic setup as Ferrari’s 812 Superfast and transforming it into this bespoke model.
FORD
Upgrades and fresh design for Stinger
Fiesta ST Edition is track-optimised
KIA has breathed new life into its distinctive Stinger saloon. New LED headlights have been included with matching LED daytime running lights, while the rear lights have been updated too. New turn signals, each with 10 LED units, resemble the appearance of a chequered flag. In addition, a new 19-inch aluminium wheel design has been included on the Stinger. Another colour – Ascot Green – has been added to the list of Kia’s exterior shades as well.
FORD has revealed a more performance-focused version of its Fiesta ST hot hatch. Limited to 300 examples in the UK, the Fiesta ST Edition gets unique styling details and upgrades to optimise it for road or track use, having been tuned on the Nürburgring Nordschleife by Ford Performance engineers. It gets two-way adjustable coilover suspension, dropping the ride height by 15mm at the front and 10mm at the back. The adjustability has 12 bump and 16 rebound settings. CarDealerMag.co.uk | 11
FEATURE
‘We wanted to change the customer experience for the better’ Rebecca Chaplin sees the revolutionary changes that have taken place at Robins & Day’s new drive-in flagship store.
R
obins & Day – PSA UK’s own dealer group – has rebuilt its flagship store in west London from the ground up. The unique Chiswick dealership stretches to the very edges of the site’s boundaries and has no parking outside. Instead, customers drive into the building and park on the first floor. As I make my way up through the four-storey building, it strikes me that the new site is more department store than car dealership. Peugeot, Citroen and DS showrooms are all hived off and the ground floor is dedicated to used cars – all contained inside under the bright lights. Car Dealer visited the dealership for its official opening and chief executive of Robins & Day James Weston showed us around for a special video. He explained how the inspiration for the new layout came from its DS Urban Store in Westfield Shopping Centre, where VIP parking brought customers straight to the front door. That concept was echoed here. ‘The vehicle does the movement on the various floors either for aftersales, repairs or whatever it may be,’ said Weston. ‘It was really important for us because usually the parking at a dealership is behind the used cars and demonstration vehicles, wherever you can find a space. ‘We wanted it to take the centre stage.’ The revolutionary changes aren’t simply driving and parking inside. The layout starts at the centre of the building, where people walk into the aftersales department and beyond that are the showroom floors. It’s almost a reverse Apple Store, where problems are dealt with front and centre, and from there customers move to the three high-ceilinged, brand-orientated showrooms beyond. Weston explained: ‘When the customers come through again, it’s light, it’s airy, you’re straight into aftersales, which is different to a traditional dealership, where aftersales is tucked at the back. ‘What we wanted to do was build something that’s different. We wanted to change the experience behind motor retailing rather than just build a big dealership on layers. ‘We wanted to try and change the customer experience for the better.’ Those walking in on the ground level will find themselves in a used car showroom that occupies almost the entire group floor apart from where the new, state-of-the-art workshop 12 | CarDealerMag.co.uk
Robins & Day CEO James Weston
What we wanted to do was build something that’s different.
PEUGEOT
We’re confident we can maximise opportunities
It was challenging but the team pulled together and found a way through it.
Inside the new Chiswick dealership
is located. Weston said: ‘Especially as we go into the winter months, to have all of these [used] vehicles inside and the ability to display them and offer test drives is phenomenal. I remember when myself and the general manager first came here, and all of the cars were facing forward. ‘We both walked around and didn’t get the buzz – we knew it wasn’t right. We’d just gone traditional and faced the cars towards the road, but we don’t need to because the flow of customers is within as well as external and that’s changing the format.’ PSA Group UK managing director Alison Jones was there at the opening and spoke about the difficulties of finishing the site during lockdown, but also why it was so important for the group. ‘The challenge of getting this done during lockdown is all of the practical challenges we’ve had as we’ve lived our lives. How can you continue to build in store and finalise a building when you’re socially distancing and with all of the PPE? ‘It was quite challenging before, and then you add to it the Covid safety and it makes it really challenging, but of course safety is the most important aspect. ‘The team pulled together and found a way through it,’ she said. For Weston, getting this redevelopment sorted was one of his first jobs as CEO but it’s even more significant for him as he also started with the dealer group as an assistant manager at this location when it was just Peugeot. Now the three brands sit proudly side by side, overlooking the busy Hogarth Roundabout in Chiswick, where thousands of eyes will see them every day. Weston said: ‘I remember when I started at this site as an assistant sales manager back in 2001, parking up at an admin showroom down the end, and it has transformed massively. ‘Getting the build validated – one of my first roles as CEO was to get that done. That was enormous, and it showed the confidence in the wider group and our ability to deliver profitably. ‘But the actual site itself, it pulls many heartstrings, and seeing it when it was all boarded up I just wanted to get inside it. ‘To be here today, unveiling plaques, meeting the team and unlocking the potential of this site, it’s something I’ll never forget.’
Article continues over page
PEUGEOT managing director David Peel was CEO at Robins & Day when the super-site was dreamed up, so was proud to see it finally open. He said: ‘I’ve been MD of Peugeot now for four and a half years. I was the chief executive of Robins & Day for eight years previously and I think halfway through my tenure in that role we put the plans in motion for this site as it is today. ‘To be there at the start, maybe seven or eight years ago, and to be in it now is really exciting. ‘We’re really proud of what the team has done to get the investment and to put this together at a time when it’s challenging for everybody.’ Peel added: ‘The PSA brands are positioned to attract a different customer base. ‘A customer coming to this site has a choice of a Citroen, Peugeot or DS. ‘Each one has a different customer demographic, so we’re confident we can maximise the opportunities and not lose out to another brand.’
Peugeot MD David Peel CarDealerMag.co.uk | 13
FEATURE
DS UK managing director Alain Descat
CITROEN
Retail is crucial but you can’t live off that alone EURIG Druce has had a baptism of fire since taking over the role of Citroen UK managing director in January. Despite the struggles, it’s had a very positive year so far, and although the numbers don’t quite reflect that, he explained that it was not all as it seemed. ‘New car demand has been strong, but for Citroen we’re in the middle of trying to reposition the business. ‘If I take the year-to-date position of Citroen from last year, 16.3 per cent of our sales were to daily rental companies. That’s not something I want to pursue for the future,’ he said. ‘I want Citroen to be a brand that participates in all channels to market but one that has a sustainable foundation to build from, and to keep the level of sales we make to rental companies one that’s in line with the market. ‘For that reason, we’ve seen a decline in our market share this year, but I see that very much as a position to build forward from with new products as we go into 2021. ‘Retail is absolutely crucial, and we’ve seen that grow for us this year, but we’re a multichannel brand. You can’t live off retail alone.’
Eurig Druce, MD of Citroen UK 14 | CarDealerMag.co.uk
This environment is what we wanted for the brand. DS
‘Boutique’ showroom has feel of Frenchness about it THE showroom in Chiswick is another big step for the newest brand in the PSA Group. Alain Descat, managing director of DS in the UK, is adamant that although the take-off here is slower than on the continent, public knowledge of the brand is growing. He said: ‘Yes, definitely. What we want to really show here is that we are entering the premium market. ‘We’re a premium challenger and the UK in particular is a very busy premium market with very strong brands, so in the UK I think our take-off is a bit slower. ‘This is our 34th store in the UK. Yesterday, I was in Leicester, where we opened another big, beautiful store.’ The DS showroom sits between the two established brands, which means it’s prominent with its branding over the busy road. Descat added: ‘This environment is what we wanted for the brand. As you can see, it’s cosy, and in a showroom like this it’s got this Frenchness, which is the core of our identity. ‘You feel a bit like you’re in a boutique hotel when you see the lounge and Nespresso coffee.’
Click here to see the video of the new Robins and Day dealership
ADVERTISING FEATURE
Autoguard CEO Rob Dockerill officially opens the new Belfast office, helped by regional manager Graham Marshall, left, and area sales manager Jamie Brown
EXPANSION
Autoguard Warranties establishes new regional office in Belfast A moment of history
The opening of a second office is always a seminal moment in a company’s history and there is an interesting story as to why Autoguard Warranties has chosen Belfast as its second home. The new Belfast city-centre office forms part of a wider strategic plan to support Autoguard Warranties’ rapid growth in the UK. The company’s wide product portfolio, twinned with local Northern Ireland area sales managers, means that Autoguard is ready to support and to add value, as it has for the past 10 years in Northern Ireland, to the motor dealers. The office is a statement that Autoguard is adaptable to changing markets and will react to customer feedback. A locally recruited regional claims and office manager will be permanently based at the new office and will be the main point of contact for all claims in Northern Ireland.
Opening ceremony
Chief executive Rob Dockerill got straight down to business by cutting the red tape at the opening ceremony. He was joined by all of our Northern Ireland-based staff on what was a historic day.
Supporting Northern Ireland
For 10 years, Autoguard Warranties Ltd, a nationwide extended vehicle warranty provider, has managed its Northern Ireland operations from its head office in Surrey. Even with the business impact of Covid-19, the call for a new Autoguard office in Belfast had become overwhelming. Rob commented on this defining moment in our support for motor dealerships in Northern Ireland, saying: ‘It’s a very exciting time at Autoguard. We are expanding and growing despite the current challenges. Northern Ireland has always been important to us, so I am very pleased to be able to open this regional office to support our NI dealers and customers. We have always prided ourselves on excellent customer service, and having a Belfast base allows us to service the local needs and requirements better.’
Jamie Brown and Graham Marshall are ready to help Northern Ireland dealers develop and expand
Why choose Autoguard? Autoguard Warranties is an award-winning value-added product provider. Autoguard supports motor dealerships with complimentary consultancy-led staff development, forecourt point-of-sale materials, rapid claims payment and access to a dedicated local area sales manager. Autoguard is the leading technical and product innovator in the industry. It provides state-of-theart digital services so that dealerships have 24/7 visibility of how their claims are proceeding and the ability to add new warranty, GAP, alloy wheel, paint protection and tyre cover as and when they need to. As a proactive organisation, Autoguard is always looking for ways to help motor dealers make more money while benefiting their customers. As a value-added service, expect to see dealer-applied paint protection coatings to join the extensive product portfolio later this year. Autoguard also offers a free customer app that helps them manage their cover. It tells them where they are if their vehicle breaks down, and provides a whole range of services to get them back on the road.
How to get in contact
To discover more about Autoguard Warranties and find out how the company can help you make more money for every vehicle you sell, please visit autoguardwarranties.com or call 03432 271499 during normal business hours. CarDealerMag.co.uk | 15
AWARDS
Kia reclaims crown as top manufacturer for dealers This year’s Car Dealer Power ceremony was a digital event because of the pandemic, with James Baggott and James Batchelor revealing the results of our wide-ranging and influential industry survey.
K
ia has been named the best manufacturer to represent in the Car Dealer Power Awards 2020. The survey of thousands of dealers rated car manufacturers in 13 categories, with Kia scoring an incredible 94.8 per cent overall. Speaking exclusively to Car Dealer Magazine, president and CEO of Kia Motors UK Paul Philpott said he was delighted with the win. Happy Kia dealers marked the brand at 98 per cent for its warranty, while its marketing, brand awareness and new car supply all scored 96 per cent. The South Korean firm narrowly beat Lexus, which came second with a score of 94.1 per cent, while Volvo – up six places on last year – was third with 89.9 per cent. At the bottom of the table was MG, scoring a dreadful 42.6 per cent. Philpott said: ‘I think with awards like this in the good times it is easy to impress your network but in the tough times you really find out who your friends are. ‘What we have done through the past six months is stay really close to our partners and recognised that cash flow and business through-put over the last few months to get balance sheets and P&Ls back up to where they should be is really important. ‘That has meant continuing to invest in marketing, ensuring we have the right supply in place to sell, and it means continuing to communicate with all levels of our dealer network. ‘Of course, warranty is going to be strong – we’re blessed with the best.’ Last year, Kia had to hand the crown to Mazda, but with solid scores across the board it took first once again in 2020. The manufacturer’s used car scheme came in for particular praise from the network with a top score of 95 noticeably ahead of rivals. The full list of car manufacturers and where they placed can be seen over the page. Scores for each of the categories are used to create an average overall score to one decimal point. No categories are weighted as more important than others. A dedicated post in the Car Dealer Power Awards section of our website also features interactive graphics for each manufacturer. This year there are a couple of ties in the list and several manufacturers aren’t included as the minimum number of 10 responses from dealers wasn’t achieved.
Story continues on page 18 16 | CarDealerMag.co.uk
Land Rover Defender won Car of the Year, with the Porsche Taycan and Ford Puma being highly commended
James Baggott and James Batchelor present the digital Car Dealer Power event
GardX head of sales Amanda Massey told of the team’s pride at winning their award
Click here to see the full coverage and all videos from the Car Dealer Power Awards 2020
The winners MANUFACTURER Manufacturer of the Year
Kia
Car of the Year
Land Rover Defender
SUPPLIERS Cleaning Product of the Year
Paint Protection Provider of the Year
Recruitment Agency of the Year
Auction House of the Year
Trade-to-Trade Remarketer of the Year
Trade Insurance Provider of the Year
Used Car Valuations Provider of the Year
Online Advertiser for New Cars
Consumer Lead Generation Site of the Year
Online Advertiser for Used Cars
Dealer Management System of the Year
Finance Provider of the Year (Sub-Prime)
Autoglym
Perfect Placement
Trade to Trade Underwriting Auto Trader carwow
Pinewood
Website Provider for Independent Dealers
67 Degrees
Website Provider for Franchised Dealers
GForces
Provenance Check Provider of the Year
GardX
Manheim
Gallagher heycar
Auto Trader
First Response Finance
Finance Provider of the Year (Prime)
Close Brothers Motor Finance Video Provider of the Year
GardX AD-vantage B2See Extra Mile Award
Cap HPI
What Car? New Car Buying
Warranty Provider of the Year
Product Innovation of the Year
Warrantywise
Facebook Marketplace
Highly commended Warrantywise chief executive Lawrence Whittaker said it felt wonderful to win
MANUFACTURER Car of the Year
Ford Puma & Porsche Taycan
SUPPLIERS Dealer Management System of the Year
Click Dealer
Website Provider for Independent Dealers
Recruitment Agency of the Year
Website Provider for Franchised Dealers
Warranty Provider of the Year
Autoweb Design & Click Dealer
The two Jameses unveil the winner of the Car of the Year award
Autoweb Design
WeRecruit Auto
The WMS Group
CarDealerMag.co.uk | 17
AWARDS
MANUFACTURERS
THE FACTS AND FIGURES IN DETAIL OF THEIR PERFORMANCE THIS YEAR Car Dealer also handed out awards in the coveted supplier categories in our special digital awards ceremony. This is the first time Car Dealer has held the Power Awards digitally and all the winners spoke to us about their triumph. You can watch the individual winners’ interviews in the dedicated section on our website here. In our special awards video we run down the full winners and losers in the car manufacturer section in detail. The best suppliers to represent are also showcased in the video, plus there’s a special section on the Car Dealer Power Car of the Year. The Land Rover Defender took the title this year – voted for by car dealers up and down the country – narrowly beating the Ford Puma and Porsche Taycan, both of which were highly commended. ‘This award tells us this is a very special car,’ Jaguar Land Rover UK managing director Rawdon Glover told us. ‘Internally, we’ve been very excited about the car. ‘An awful lot of work has gone into it with making it respect its history but not being harnessed by it. Seeing it recognised is really special.’ Glover added: ‘It’s been a long time coming with the Defender being out of our portfolio for some years. Strategically, it’s an important third pillar for the Land Rover brand, but for retailers it’s an incremental nameplate. It’s new business and it’s in high demand, but that aside it’s given the whole network and all Land Rover staff a real lift at a really critical time.’ Delve into the Car Dealer Power results in detail in our dedicated section here. 18 | CarDealerMag.co.uk
Position 2020
Manufacturer
Postion change to 2019
Overall score
1
Kia
+1
94.8
2
Lexus
–
94.1
3
Volvo
+6
89.9
4
Mercedes-Benz
+6
89.8
5
Mazda
-5
88.1
6
Mini
–
83.0
7
Audi
+14
81.3
7
Seat
+8
81.3
8
Toyota
-2
80.2
9
Suzuki
-1
74.4
10
BMW
-6
74.2
11
Ford
–
70.5
12
Volkswagen
-7
70.2
13
Nissan
+11
69.3
13
Peugeot
+8
69.3
14
Dacia
–
69.2
15
Skoda
+3
67.6
16
Hyundai
-14
65.7
17
Renault
+8
63.8
18
Jeep
–
61.2
19
Honda
-5
60.6
20
Land Rover
-2
60.5
21
Jaguar
-9
58.1
22
Fiat
+3
56.0
23
Citroen
+6
54.3
24
Vauxhall
-1
52.0
25
Mitsubishi
+2
51.1
26
MG
-9
42.6
USED CAR SUPPLY/SCHEME
FORWARD PLANNING
FINANCE OFFERS
WARRANTY
Click here to see the coverage of this year’s awards AFTERSALES
MARKETING
BRAND AWARENESS
ACCESSIBLE
ONLINE OFFERING
NEW CAR SUPPLY
REQUIREMENTS
BONUS
ROI
CarDealerMag.co.uk | 19
The warranty experts
The Automotive industry’s best kept secret...
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Bounce backs should be celebrated but take care you don’t burn out
W
It’s pleasing to read that although the lockdown was punishing, many dealers have rolled with the punches and come out fighting.
e’re deep into results season and as we sift through the numbers from dealer groups across the country, it’s pleasing to read that although the lockdown was punishing, many dealers have rolled with the punches and come out fighting. As showrooms reopened in June, dealers have been awash with customers in new and used car departments. The result has been monumental bounce backs. The more directors’ reports I read, the more I see predictions from dealers that this year they’ll be ahead of last. I can’t quite believe I’m even writing that, given where we were just a few short months ago. It’s nothing short of staggering. While some dealers are generating less revenue, they’re making more profit as a combination of cost cutting, government support and excellent margins on used cars compound to boost balance sheets. Many have realised that, sad as it may be, they don’t need quite as many staff to do the job as they had before the pandemic, and when you add in the cost savings of online sales, the cost of sales has reduced considerably. Let’s look at some of the facts. While the 10-week shutdown was painful, with many dealers racking up multi-million-pound losses in April and May, they have quickly rebounded. Most made a healthy profit in June and that has continued throughout the summer and into September. Why? Well, take a look at your own personal circumstances. Are you going out to eat as much as you did before? Have you been on holiday? Chances are – like the rest of the working population – you haven’t and are saving more money than ever before. I bet you’re pretty fed up with the hard work you’re putting in and in need of a release. Vertu’s Robert Forrester summed it up nicely when we chatted this month. ‘They’re spending it on cars, or their homes – or both,’ he said. And he’s right. Customers are deciding that they’re pretty cheesed off and need cheering up. Marshall boss Daksh Gupta called it ‘revenge buying’, but, more accurately, it’s ‘reward buying’. Be that a new car or a used one, people are deciding they fancy a treat and are going out and buying one. It’s pushing prices up and resulting in strong sets of results for an industry that desperately needed some good news. Then there’s a swathe of the market that’s being driven into a car purchase because of need. Lots of people out there are unsure of what their future holds. One minute we’re allowed in pubs, the next some people aren’t. The future is as confusing as the government advice. It means that as PCPs and lease deals come to an end, many are deciding not to renew and heading to the used market instead. There are also huge numbers of people who’ve discovered they’re not using their cars as much as they did before. Some I’ve spoken to are thinking of giving them up completely and hiring a car when they need one, such has been their dramatic plummet in usage. With commuting cut back and nowhere to really drive to, many customers are staring at cars on their drives costing them lots of money and wondering why they’ve even got one in the first place. While some are giving them up altogether, most are taking the pandemic as an opportunity to reassess their budgets and deciding, with job uncertainty on the horizon, a used car is a far safer option. There are plenty of sales drivers out there, and if it’s not pent-up demand, which surely has long since been satisfied, it must be something else. And if it is people cheering themselves up, then with the winter we’re facing, chances are that isn’t going to change any time soon either. Anyone outside the industry looking in thinks it’s remarkable how dealers have bounced back – and in many ways it is. Market forces are driving much of it, but with most dealers operating on fewer staff than before and achieving more, there are some pretty frazzled people out there. We really need to be careful we don’t burn out.
Speaking out
COMMENT
JAMES BAGGOTT
AGAINST OUR BETTER JUDGMENT, WE LET THE CEO HAVE HIS SAY EACH MONTH James Baggott founded Car Dealer Magazine and is the chief executive officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us. CarDealerMag.co.uk | 21
Big Mike OUR MAN ON THE INSIDE SHARES HIS THOUGHTS ON THE CAR BUSINESS
Who is Big Mike? Well, that would be telling. What we can say is he’s had more than 40 years in the car trade so has probably forgotten more about it than we’re likely to know. 22 | CarDealerMag.co.uk
COMMENT
Valuable advice taken to heart should avoid surgery for car and me
I
’m always one to help a damsel in distress, especially when said damsel is not only pleasant on the eye but also a good customer of mine. So when a lovely young lass called Jayne, a twice-purchaser from Big Mike’s Motors and a local A&E nurse, appeared on my forecourt in distress last week because the Mini she’d bought from me a couple of months earlier was making a nasty noise and she was almost late for her shift, I did what any good car dealer would do in the circumstances and chucked her the nearest set of keys so she could continue on her merry way. Like everyone (at least I hope), I absolutely cherish our emergency services and have the utmost respect for anyone who puts themselves on the front line, especially in these weird and challenging times, so my number one priority was to get her to work, and my number two priority was to have a proper look at the Mini to determine what might be wrong with it, and – indeed – determine if there was any liability on my part. I like to help damsels in distress, but I don’t like them starting a warranty action against me or taking me to the small claims court. I’m not that much of a soft touch. Anyway, with Jayne happily saving the lives of the great unwashed from behind the wheel of the 2004 Jaguar X-Type I’ve been smoking around in (it was part-exchanged with two-thirds of a tank), I took the Mini into my workshop – which is more of a shed full of hand tools at the back of the lot, but it sounds posh – to see if I could find anything obvious. And I did. As soon as I started it up, it sounded like a family of skeletons at a disco. The familiar click-clock-clack of an engine as dry as my sense of humour or a minor Arab state was so loud that it was obvious what was wrong. She had suggested to me that a friend had pointed to the ‘710’ thing under the bonnet as a likely cause, but I had no idea what she meant by the ‘710’ thing – until I turned the number upside down, and that was long after my diagnosis. Two litres of 10w40 later and the Mini sounded like it should, and with no lasting damage – or at least I hope not. So I called Jayne to give her the good news and told her that if she called by on her way back from work, I’d give her the results of the health check on her car and some useful advice on how to avoid such a stressful moment in the future. Later that afternoon, she returned my Jaguar as clean and sparkly as a hospital ward, which was the very last thing I expected her to do. But she’s that kind of person. The type that we really need more of in this world so we start to respect each other more, along with each other’s property, opinions and beliefs. But it’s probably for the best not to get me started on that. Because she’s such a lovely person, I felt terrible reading her a fatherly riot act on vehicle maintenance. I explained that the clue with the ‘710’ thingy was to turn it the other way up, and reiterated a phrase my old man taught me when I was a kid: ‘Only a dipstick ignores their dipstick’. I showed her how to check the oil, and while at it the coolant level, the tyre pressures and how to spot warning signs of imminent problems, such as where to look for spots of potion number 710 seeping out of the block, or white deposits on radiator hoses that suggested they were about to let go. I should add, these were not issues on her car – supplied by a reputable Midlands purveyor of fine previously cherished automobiles – but on a PX-toclear Hyundai Amica that was residing in Poo Corner: the part of my pitch where I keep the cars that are one MOT or 710 change away from the scrapyard, and which I frequently farm out to local takeaway outlets in exchange for curry vouchers in lieu of cash. I pointed out that all of these precautions would save her from having to subject her car to major surgery in the future, to which she nodded sagely, accepted she’d been a bit slack
She had suggested to me that a friend had pointed to the ‘710’ thing under the bonnet as a likely cause, but I had no idea what she meant by the ‘710’ thing – until I turned the number upside down.
and beckoned me over to the Jaguar because she wanted to ‘show me a couple of bits’ before she gave it back. Concerned that the problem might be with the car (those V6 Jags are usually quite reliable, providing you don’t poke the sills with a screwdriver), she instead opened the boot and showed me two boxes. The first was one that I’d put in there myself, containing half a dozen empty wine bottles, two empty port bottles and at least a dozen empties courtesy of Banks’s Brewery – the consumption of the last lot being a rite of passage for any Midlands lad, even if it does take a while to get used to the taste. The second box was one that Jayne had put together herself, containing two wooden Monte Cristo cigar boxes (other cigars are available, but you might as well just ignore them in my opinion), half a dozen empty tins that once contained ‘full-fat’ Coca-Cola, and several paper wrappers from the roadside and high street food chain that recently found fame for its vegan sausage rolls. And there was nothing vegan about what I’d consumed from those wrappers, believe me. These had all been found rolling around inside the car. Next to them were a tub of lard (or to TV viewers of a certain age who recall the famous episode of Have I Got News For You – Roy Hattersley MP), a half-burned log and a tennis ball wrapped in elastic bands. ‘These are your arteries,’ she said, holding up the tub of Hattersley. ‘These are your lungs [the log] and this is your heart,’ she added, holding up the tangled up tennis ball. ‘After all, it’s only fair that I give you the same kind of advice so you can keep your body from having to undergo major surgery in the future.’ And you know what? She had a very good point. While she was deliberately (but somehow amusingly) patronising in her delivery, it was a bit of a wake-up call that a life spent eating the rubbish you buy from the petrol station, setting fire to plants and sucking the burning bits through your mouth, then drinking yourself to merriment every few days or so probably isn’t the healthiest of lifestyles, and in our industry all of these are rife. I grew up in the motor trade, most of my mates are in the motor trade, and it’s a business that attracts a certain type of person. They’re the kind of people who are always very funny and great fun to be around but who are rarely beacons of physical perfection. This is partly because we do a lot of our deals in the pub, and partly because we’re often working-class blokes, for whom our upbringing is as much a part of the reason why we don’t take care of ourselves as well as we should as much as our own weaknesses and addictions. As Jayne drove away, she could no doubt see from the pensive look on my face that as much as I’d taught her a lesson, she’d taught me one, too. And I’m pleased to say I’ve taken a little bit of notice and I’ve given up the sausage rolls.
She could no doubt see from the pensive look on my face that as much as I’d taught her a lesson, she’d taught me one, too.
CarDealerMag.co.uk | 23
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Steady as she goes seems to be likeliest scenario for near future
S
The shelter that a private car offers a driver has probably been partly responsible for this continued car market activity.
ssh, don’t say anything, but it feels like it is getting a bit quieter. For most motor retail businesses, their trading performance up to the end of September would have exceeded even their wildest expectations at the end of March, but as selfish motor dealers, we have all got used to improved new car margins, appreciating used cars and stacked-out workshops. What happens for the rest of quarter four is as much of a guess as anything in the quarters that preceded it, but I think it’s fair to say used car residuals are likely to see some negative movement as a minimum. The key question is how much. My guess is a five per cent market adjustment per month until the end of year before natural organic new year recovery. This is not a doomsday scenario by any stretch; new car stock levels for many manufacturers are still relatively low, not only as factories struggle to return to pre-pandemic productivity levels, but as new PHEV and BEV variants are introduced. Used car supply as a result of rampant pre-registration is less likely and lockdown affected manufacturer registrations that would now be starting to be remarketed. We also have to remember that the demand levels of recent months are unsustainable. There is no doubt that at times we have felt stretched with the pure volume of leads and that has possibly compromised our customer service – we have definitely seen an impact on the quality of deals when factoring in sales of insurance products. The other positive which I try to envisage every day is that we might actually get good news about a vaccine, not just in success terms but in speed of deployment. Everyone is desperate to go out and enjoy the theatre again or visit friends in far-flung places. I am hoping, nay praying, for a sense of euphoria similar to what the country experienced following the Olympics in 2012. Of course, there will be wider macro-economic concerns that could impact on motor retail. A no-deal Brexit looms large, and with the news being dominated by daily coronavirus updates, this could easily slip under the radar and cause serious disruption to parts, new car supply and taxation. The government will have to start the long process of debt recovery, and taxation will no doubt be a key mechanism deployed. Although we may see some cuts to try to stimulate the economy, income tax for both individuals and businesses is inevitably going to rise. It is possible that there may be some short-term taxation relief to try to stimulate the economy, but individuals will feel their disposable income level impacted. Some commentators have speculated that shared mobility solutions may see accelerated growth once we start to emerge from the pandemic. We have seen retail trends accelerate, with even more buyers moving online and away from the high street, and it is possible that this could happen with car buyers who move away from regular monthly payments or car ownership. However, I think this may be a step too far. The shelter that a private car offers a driver has probably been partly responsible for this continued car market activity, so it is unlikely buyers will migrate quickly to new car ownership methods. My safest and most likely hypothesis is that we move back to the market we perhaps anticipated before all of this craziness began. That is to say neither disaster nor recordbreaking times, more steady as she goes. There will be some dealer casualties, there will be some more tougher times ahead, but we should have been anticipating those anyway.
Trader Tales
COMMENT
JAMES LITTON
CASTING AN EXPERIENCED EYE ON THE WIDE AND CHALLENGING WORLD OF MOTOR SALES
James Litton is an automotive retail consultant who always has something to say about the industry he loves. CarDealerMag.co.uk | 25
ADVERTISING FEATURE
OPENINGS
Franchise is so easy to make part of existing business Approachable – and making things simple, fun and profitable for dealers
I
suzu has big plans for the future and there’s an opportunity for dealers in a dozen towns and cities in England and Scotland to take advantage of this niche market with its award-winning D-Max pick-up. And with a new D-Max on its way in early 2021, the Japanese pick-up professional is confident it’ll be a game-changer that will get it on track for its 2025 target of 10,000 sales. UK managing director William Brown told Car Dealer: ‘We are so excited to receive this new model. It is a big step forward for Isuzu and will be the most advanced pick-up on sale in the UK, setting new standards in the sector. ‘Because it is a simple franchise to operate, it is very easy to integrate into a successful existing operation, whether it be cars, 4x4s or LCVs. ‘What we’re looking for in a new dealer is someone who is dedicated to our brand within their existing business. We can do all of the training. Most of the time, a pick-up is being bought to be used as a pickup and that’s why it’s an easy product to sell. That’s where we win. ‘The other unique opportunity with Isuzu is that it’s not just about chassis profit; a key advantage we have is our accessories. All our vehicles have a large range of accessories that customers will purchase at the point of sale. We have the largest accessory range of any pick-up manufacturer in the UK.’ He emphasised how approachable Isuzu was, adding: ‘We’re not just interested in our dealers’ performance. For us, everything we do for our dealers has to be simple, fun and profitable. It’s all about making business as simple as possible, whether it be trading terms, campaigns or communications.’
The 12 towns and cities ripe for an Isuzu dealer Birmingham Brighton Bristol Canterbury Doncaster Forfar Newcastle Portsmouth Romford Southampton Swindon Weymouth
For more details about becoming an Isuzu Pick-Up Professional, call Melissa Butcher on 0121 730 8073 or email mbutcher@isuzu.co.uk 26 | CarDealerMag.co.uk
CONNECTED RETAILING Omni-channel vehicle retailing solutions connecting your customers to your showroom no matter where they are
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iVendi.com tellmemore@ivendi.com 0345 226 0503 CarDealerMag.co.uk | 27
FORECOURT
Engine
McLAREN 765LT
The 4.0-litre V8 punches out 754bhp and 800Nm of torque, giving the 765LT a 0-60mph of just 2.7 seconds
McLaren’s latest Longtail car has been designed with the track in mind, so Jack Evans took it round one of the UK’s most famous loops to find out what it’s like.
THE KNOWLEDGE McLaren 765LT
Price (as tested): £280,000 Engine: 4.0-litre V8 Power: 754bhp Torque: 800Nm Max speed: 205mph O-60mph: 2.7 seconds MPG (combined): 24.6 Emissions: 280g/km CO2
WHAT IS IT? This is the latest in the Woking-based firm’s range of Longtail vehicles. They’re essentially cars that bring heightened performance and enhanced aerodynamics over and above the already rather razor-edged regular road cars. Yet while this car is at home on the track, it’s also a full-on road car – just one that happens to top out at 205mph. WHAT’S NEW? The 765LT takes its basic platform and design from McLaren’s current 720S, which is why the two look quite similar – from the front end at least. But swivel round to the back and you’ll find a far more dramatic design with a huge, long ‘tail’ – you can see what they did there – giving additional downforce at the rear. It’s also been on a diet to shed some unwanted pounds over its road-going stablemate. In fact, thanks to lighter seats, more carbon fibre and clever motorsport-inspired polycarbonate glazing – among other measures – the 765LT is 80kg lighter than the 720S. WHAT’S UNDER THE BONNET? You’ve got the same 4.0-litre V8 as you’ll find in the 720S – and a variety of McLarens, in fact – but here it’s been tweaked up to 754bhp and 800Nm of torque, which are sizeable figures for a car that only weighs slightly more than a Ford Fiesta. Zero to 60mph? That’ll take just 2.7 seconds. Zero to 124mph takes a frankly astounding seven seconds. Flat out, it’ll do 207mph, and from our experience, the 765LT wouldn’t take awfully long to reach that top speed. WHAT’S IT LIKE TO DRIVE? Our first opportunity to drive the 765LT was on track – at Silverstone in fact – so we’ll have to leave our road-based conclusions at the door for now. But at the circuit, even on a wet and soggy autumn day, the McLaren feels utterly unhinged. There’s the performance for starters, which pins you back to the seat with the merest prod of the throttle, while the steering, bristling and alive, forces you to wrestle the car around the bends. Act a little cavalier with the accelerator and the 765LT will make you fully aware of it, although there’s balance there to help manage the slide. The shifts feel razor-sharp and ping into place with a ‘thunk’, which only adds to the brutal nature of the car overall.
28 | CarDealerMag.co.uk
The cabin The driving position feels spot on and focused purely on the task of motoring as quickly as possible.
Looks The rear is dominated by the huge wing and has a purposeful large central titanium exhaust.
TARGET BUYERS:
Those who find the standard 720S too ‘mundane’.
THE RIVALS:
Ferrari 488 Pista, Porsche 911 GT3 RS, Lamborghini Huracan Performante.
KEY SELLING POINTS:
The steering, bristling and alive, forces you to wrestle the car around the bends.
1. Unhinged performance. 2. Wild appearance. 3. Driver-focused cabin.
DEAL CLINCHER:
The 765LT brings incredible levels of performance to an already otherworldly range of cars.
HOW DOES IT LOOK? The front end of the 765LT appears relatively close in design to the regular 720S, albeit with a variety of additional cuts and grooves to aid cooling. There’s a large scoop atop the car’s domed cabin area, which helps to chill the otherwise quite-hot engine bay area. At the back, the huge wing dominates proceedings, while the large central titanium exhaust looks more purposeful than the one you’ll find on the 720S. WHAT’S IT LIKE INSIDE? Get into the 765LT’s cabin and, initially at least, things are pretty much regular McLaren. The steering wheel sits right up into your chest and the driving position itself feels spot on. Large bucket seats are fitted with racing harnesses to keep you pinned in place, while vast swathes of Alcantara have been applied to all of the touchpoints through the cabin. In short, it’s a no-frills cabin that’s focused on the task of driving. WHAT’S THE SPEC LIKE? As with most track-orientated cars, the 765LT is a model where you pay more for less. So despite a hefty £280,000 price tag, there’s no radio or air conditioning, although both can be added should they be required. There’s a clear driver display just behind the wheel, and it moves when you change through different modes. This means that when you make the switch, the dials become clearer and less distracting. WHAT DO THE PRESS THINK? Autocar said: ‘You get the feeling here . . . that Woking cared significantly more about how much fun this car was ready to provide, and how many different ways and environments it could be driven and enjoyed in, than how quickly it went.’ WHAT DO WE THINK? There’s no sane person who will get into the 720S and think ‘This needs to be faster’. But the very nature of supercars is that they need to be faster, lighter, quicker. The 765LT is all of those things, while above and beyond that it’s simply exhilarating to drive. Our slippery drive around Silverstone might not have been the most apt place to showcase its talents, but even here the sheer capability of this car really hit home. CarDealerMag.co.uk | 29
Gallagher Automotive Specialist Insurance for the Motor Trade Experience is key - and you need a specialist insurance broker who’ll take the time to understand the specific needs of your motor trade operation.
GST-236330647
The Gallagher Automotive Insurance Team has been helping to protect businesses across the UK for over 50 years - from independent repairers and small family firms to the largest franchise dealerships.
Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP1451–2019 Exp. 13/12/2020. ARTUK 1551 30 | CarDealerMag.co.uk
Get in touch to discover how we can help your business. Would you like to talk? T: +44 (0) 800 612 2284 E: automotive_enquiries@ajg.com www.ajg.com/uk
FORECOURT
BMW GRAN COUPE
The 2 Series Gran Coupe is one of the latest additions to BMW’s range of saloons but what’s it like to drive? Jack Evans went for a spin. WHAT IS IT? Essentially a four-door version of the two-door 2 Series (which itself is a coupe version of the five-door 1 Series), it’s the smallest Gran Coupe model in BMW’s line-up. WHAT’S NEW? It’s slightly longer than the 1 Series, which helps to add to its sleek, stretched-out design. Inside, it benefits from BMW’s latest infotainment system plus a host of connectivity and assistance features. WHAT’S UNDER THE BONNET? There’s quite a range of engines to choose from but we’ve got the 220d model, which sees a 2.0-litre turbocharged diesel engine sending 188bhp and 400Nm of torque to the front wheels via an eight-speed automatic gearbox.
THE KNOWLEDGE
BMW 220d Gran Coupe Price (as tested): £37,825 Engine: 2.0-litre turbocharged diesel Power: 188bhp Torque: 400Nm Max speed: 146mph 0-60mph: 7.3 seconds MPG: 53.4 Emissions: 134g/km CO2
TARGET BUYERS:
Those who want the spaciousness of a saloon with the looks of a coupe.
THE RIVALS:
Mercedes A-Class saloon, Audi A3 saloon, Hyundai i30.
WHAT’S IT LIKE TO DRIVE? You’d expect a car like the 2 Series Gran Coupe to be comfortable, refined and easy to live with over long journeys and, for the most part, it achieves each of these traits well. The steering is excellent too, while the eight-speed gearbox is one of the best in the business.
KEY SELLING POINTS:
HOW DOES IT LOOK? Well it’s different, isn’t it? The back of the car is a particular talking point. But there are plenty of nice touches. The bright blue brake calipers on our car help brighten up an otherwise quite dark exterior, while the large alloy wheels give it a distinctly premium air.
DEAL CLINCHER:
WHAT’S IT LIKE INSIDE? The interior of the 2 Series Gran Coupe represents an excellent blend of the old and the new, but headroom in the back isn’t the best as a result of the sloping roofline. The boot is larger than the 1 Series’ but the narrower opening means it’s a good degree harder to access.
1. Efficient engine. 2. High-quality interior. 3. involving drive.
The 2 Series Gran Coupe is a great combination of looks and practicality in one compact package.
WHAT’S THE SPEC LIKE? Our car had tip-top M Sport specification, including larger alloy wheels plus full sport suspension. This bumped our test car’s price up to £37,825 from the standard £33,340. M Sport Plus (£2,200) adds upgraded braking and sound systems plus high-gloss exterior trim pieces. The Technology Pack (£1,500) has features such as adaptive LED headlights. WHAT DO THE PRESS THINK? What Car? said: The BMW 2 Series Gran Coupé delivers a similarly fantastic blend of driver appeal and ride comfort to that offered by the 1 Series, along with a great interior.’ WHAT DO WE THINK? With its decent on-road manners, excellent economy and good build quality, the 2 Series Gran Coupe is well rounded enough to appeal as a genuine prospect in BMW’s current crop of cars.
Looks
The sloping roofline does impact on the headroom in the rear but the boot is larger than that of the 1 Series. CarDealerMag.co.uk | 31
Beyond finance “I’m more like a consultant, taking time to understand the dealership so that we can add real value to their business.” Watch Aimee's video to see how: blackhorse.co.uk/beyondfinance
Aimee Winder Account Manager North East Region
A better way of doing business 32 | CarDealerMag.co.uk
FOCUS ON Car Care Plan
carcareplan.com
Car Care Plan puts a spotlight on service
A
t Car Care Plan, it’s our mission to furbish dealerships with market-leading motor add-on products, support dealers through the entire aftersales process, and ensure that our customers and clients receive the very best service and cover. Fulfilling these goals for more than 40 years, Car Care Plan has come to be trusted by over 2,000 UK dealerships and many major manufacturers around the world. Keeping customers’ vehicles running smoothly is our expertise, with warranty, asset protection, service plans, MOT test insurance, roadside assistance, cosmetic repair plus tyre and alloy insurance products provided. Customer service is a top priority at Car Care Plan, with Treating Customers Fairly and the Customer’s Best Interest rule playing a key role within business operations. With over 1.8 million products registered by Car Care Plan in 2019, all of which are insured by AmTrust Financial and our in-house insurer CCPI, it’s essential that our claims engineers are highly trained and enthusiastic about helping customers. Many of our claims engineers worked as service receptionists or vehicle mechanics previously so are knowledgeable and experienced, and with Car Care Plan boasting such a long and successful history of protecting motor vehicles, our products live up to the standards expected by clients and customers. Dealerships that choose Car Care Plan can benefit from the wealth of knowledge and expertise within the company. With in-house marketing, compliance, customer services, IT and e-commerce, Car Care Plan is fantastically equipped to support dealerships through the entire aftersales journey. With products also underwritten in-house, Car Care Plan has the ability to provide dealerships and manufacturers with a completely flexible approach to aftersales. With all of these departments found in one place, clients can expect a high level of bespoke service and quick responses to client needs or requests. During recent months, our dealer clients have had to face changes in how business is conducted. Car Care Plan has been striving to support them through these changes and into the future, and has done this by launching a new sales platform. Recently, customer visits have been restricted to shorter time periods, making it more difficult for aftersales to take place as there is less opportunity to present add-on products to customers. Car Care Plan responded to this by creating a sales platform that comprises a white-label branded platform to which dealers can send customers and which contains details, videos and pricing for all the add-on products they provide. Customers will have the opportunity to purchase the products they are interested in through this platform, and the dealership still receives their commission. Creating the means for aftersales to take place means that dealerships won’t miss out on the crucial benefits aftersales provide: the revenue streams, increased customer retention down the line, customer satisfaction and increased footfall, to name a few. Further to ensuring that aftersales can take place is ensuring that a range of products is on offer. Different customers will find different products will fit their needs, so allowing them to choose from a wider product range will help boost customer satisfaction. But dealerships also require different things, so Car Care Plan offers dealers a bespoke, tailored service to ensure that the service it provides is exactly what the dealership needs.
Car Care Plan has the ability to provide dealerships and manufacturers with a completely flexible approach to aftersales.
To find out why dealerships and manufacturers all over the world trust Car Care Plan to take care of their customers, visit carcareplan.com CarDealerMag.co.uk | 33
What makes Navigate a different kind of conference? Last year, CarGurus introduced a new kind of automotive conference in the US: Navigate. This year, we’re bringing it back—but it’s going global and virtual! We understand that making the time to keep up with the rapidly-evolving selling environment can be a challenge. Step back from the day-to-day grind— at least for a few hours—and focus on improving yourself and your dealership through: • A thought-proving mix of automotive insiders, CarGurus leaders, and tech experts from other industries • Dedicated sessions and dealer panels for the UK market, plus global content for all dealers • Sessions on high-level digital marketing strategies, tips for succeeding with digital retailing, and the latest industry and consumer trends and data
Enjoy
from the comfort of your own home or office: It’s virtual and free! 34 | CarDealerMag.co.uk
Explore
new strategies for adapting to a rapidly-changing consumer climate
Ignite
your personal and professional growth with speakers who inspire and empower
AGENDA HIGHLIGHTS 26 OCTOBER 13:00 UK Kickoff Featuring: Sir Clive Woodward 14:00 Opening Keynote: Turning Change into Opportunity Presented by: Peter Sheahan 16:00 Fireside Chat with Langley Steinert Founder and CEO of CarGurus
27 OCTOBER 14:00 Future of Automotive UK Dealer Panel 15:00 Executive Keynote Sam Zales, President & COO and Tom Caputo, CPO 16:00 What’s New at CarGurus in the UK Jason Trevisan, CFO, Ben Kasdon, Senior Director, Product Management
Reserve your free spot
Can’t attend live? All registrants will have access to on-demand sessions. events.cargurus.com/navigate
CarDealerMag.co.uk | 35
FOCUS ON Autoglym
lifeshine.com
LifeShine is perfect to help dealers maximise profits – especially now
P
eople are falling in love with their cars again after a 40 per cent increase in driving school bookings and a rise of almost 10 per cent in used car sales in September 2020, compared with 2019. And with that comes a new opportunity for dealers selling both new and older cars to maximise their profits – not least because in uncertain economic times, protecting our assets is more important than ever. LifeShine by Autoglym is a full protection package offering a tough, protective system of sealants and treatments that comes with a lifetime guarantee. LifeShine protects the bodywork, interior and glass areas of a car and is applied at dealership level to both new and used vehicles, and at a minimal monthly cost to customers when included as part of a finance package. ‘We’re seeing a period where car ownership is suddenly more important than it’s ever been as people want exclusive use of their own car – their safe personal space,’ said Autoglym sales director Jonathan Levey. ‘Those who have previously shunned car ownership are re-evaluating their options, as can be proven by the number of new drivers who are signing up for lessons, reversing a trend that has seen a fall in the numbers of younger drivers in recent years.’ Red – the largest driving school in the UK – has reported that bookings over the past four weeks have been 40 per cent higher than a year earlier. ‘We have seen an unprecedented number of new customers wishing to learn to drive,’ said Red chief executive Ian McIntosh. This has had a knock-on effect on the car market, with prices of used cars increasing by 10 per cent in September 2020, according to Auto Trader. In addition, online car sales have shot up, with new online-only retailers recognising a shift in buyer perceptions on the back of a 248 per cent increase in retail sales in all sectors of business so far in 2020. This has been driven by the pandemic but what had already been a gradual trend in consumer habits has been accelerated. The number of OEMs and dealer groups completing transactions online has also risen. ‘In one sense, customers spending less time in the showroom may limit a sales executive’s opportunities to maximise aftersales and accessories opportunities,’ added Levey. ‘But in another, it’s a real opportunity. A product such as LifeShine is very easy to rationalise in the current climate, and there are many brand-new customers looking to buy cars for the first time. ‘The sales process, where a high-quality lifetime protection package can be added to a PCP or lease deal for a very small monthly add-on, makes it appealing for customers and easy for sales teams to sell in. LifeShine is perfect to help dealerships maximise profits at a time where physical sales of aftersales products is much harder.’
To find out more about LifeShine and how it can help benefit your business, visit lifeshine.com 36 | CarDealerMag.co.uk
Those who have previously shunned car ownership are re-evaluating their options. Jonathan Levey
CarDealerMag.co.uk | 37
INVESTIGATION
Does it really matter if there are fewer women in car sales?
N
by Rebecca Chaplin @believebecca
early 70 per cent of car buyers have never bought a car from a woman, a shocking poll of buyers run exclusively for Car Dealer has revealed. The What Car? survey of 3,000 car buyers, carried out on our behalf, found 68.4 per cent had never bought a car from a woman. Respondents also resoundingly called for more women to be encouraged into frontline car sales roles – but does it really make a difference to the performance of a car dealership? The poll revealed that although nearly all buyers (90 per cent) really don’t care if they buy a car from a male or female sales executive, only 32 per cent ever had bought from a woman. However, managing director of What Car? publisher Haymarket Rachael Prasher and founder of the Automotive 30% Club Julia Muir, who appeared on Car Dealer Live to discuss the poll, said having more women in sales roles did change how a business performed. Prasher explained that so much of this was about perception, and how vitally important it was that the industry addressed these concerns. Shockingly, 29 per cent of female respondents to the survey stated they believed that car retailing was inherently sexist, with 13 per cent of men agreeing. She said: ‘It is exacerbated by female experience, and actually of all the stats that came out of the survey I think the one that worried me most was the question “Do you think that any elements of car retailing are inherently sexist rather than imbalanced from a gender perspective?” That was designed to tease out whether there was just a gender imbalance issue or actual sexism. ‘Twenty-nine per cent of women felt there was an inherent sexism. Whether or not that’s fair we could debate endlessly, but if that’s people’s perception, then that’s the challenge that the industry has to face.’ Examples cited ranged from the prominence of men in advertising materials and a tendency for staff to address the man when a couple enter the premises through to the attitudes of male workers, especially with regard to having pictures depicting cars and under-dressed women on display. While Muir agreed that this was about the perception of car dealers, and that it wasn’t a problem for simply new car retailers or used car independents, she was able to add some statistics from her own research that found only 12 per cent of sales executives were female and only six per cent managers. Meanwhile in aftersales, there is a much more equal balance with almost gender balance in service advisers. However, these preconceptions about gender roles can cloud the reality, she explained: ‘The situation you just described often is the case in many showrooms, that the only female that they see within the first few minutes of arriving is someone who serves them coffee. Then the men are introduced as the people who are going to do the proper business. ‘It’s very different in aftersales. I’m very pleased to say we’re almost gender-balanced in service advisers. So those people going to the dealership for that kind of service get a different experience. ‘But the impression we’re giving in sales is that the women serve the tea and the men do the deals. That’s not something people would experience in other situations.’ She added: ‘The first impression really counts. When someone goes into a retail environment, they’ve got previous experiences that they will build upon. ‘Women going into retail environments would not be used to it being predominantly male. Other retail environments are usually either balanced or predominantly female.’ In our survey, just 19 per cent of respondents felt the genders were equally represented in car showrooms, with 78 per cent saying they felt they were dominated by men. 38 | CarDealerMag.co.uk
The impression we’re giving in sales is that the women serve the tea and the men do the deals. Julia Muir
Click here to view the results of the What Car? survey
Overall, 87 per cent of respondents said they felt more women should be encouraged to work in showrooms. Some women also believed they were offered worse financial deals on cars as a result of their gender. Vertu Motors chief financial officer Karen Anderson said she wasn’t shocked by the results of the survey. ‘Surely what all car buyers want is to be respected and treated in an honest, transparent and professional way by a retailer. ‘If this is achieved, does the gender of either the customer or sales executive matter?’ Georgia Coles, one of the founders of the Autocar Great British Women in the Car Industry, added: ‘Women often walk into a dealership knowing exactly what they want, including having already possibly interacted with the dealership online. ‘Dealers need to understand this, be much more inclusive with female customers, and in general just listen more.’ This was echoed by Muir, who said it was linked to deep-rooted attitudes put on to women generally. ‘What is it about those hours they spend in a car showroom that makes women feel so vulnerable that they would need a man to accompany them? It’s not necessarily anything to do with the nice salesperson who’s there to try and help them buy a car, it’s years of programming. We raise young girls to not go into a place where there’s lots of men on your own, don’t be left alone with a strange man, don’t get in a car with a strange man. Yet here we are with test drives where we’re expecting women to do that.’ She added: ‘We need to shift this perception that we are just men selling cars in a patronising way. It’s not true in many of our retailers and we need to work hard to make sure everyone is aware of that.’ Prasher addressed this point in the Car Dealer Live broadcast, explaining that some retailers were already working hard to address it, while others had been forced to change their process because of Covid-19. ‘When I think of a lot of those big franchise groups, they’ve done a massive amount of work on this in the last few years. One that springs immediately to mind are Arnold Clark where they brought in product geniuses, I know they’re not alone in that, but these are people who are not commissioned, the’re not there to do the deal. Ultimately, they’re a bit like an Apple Store experience to provide information about that product.’ ‘I know they’ve worked very hard to attract a lot more female candidates to those roles. I think that does make a difference, and if people are doing more research online and they’re better qualified, fundamentally you’re coming into the dealership to have a brilliant experience.’ This need to shift towards an excellent customer experience as the norm was something Muir agreed with. She said: ‘I think the way we should frame this is it has come at a brilliant time, this information, because now is the time to start to make changes and to really take advantage of the new ways of working – and the new ways of selling online.’
When I think of a lot of those big franchise groups, they’ve done a massive amount of work on this in the last few years. Rachael Prasher
Click here to see Rachael Prasher and Julia Muir on Car Dealer Live CarDealerMag.co.uk | 39
FEEDBACK TOP TWEETS
With the Car Dealer Power Awards taking place virtually this year, the celebrations were happening on Twitter! Here’s a snapshot...
How are you finding buying at the block? For me, a mixed bag. I’m really hurting not being able to see, hear, touch and smell the cars before I bid. The prices are a mixed bag, some winners and some losers. The auctions I watch seem to be mostly supported by a regular ‘crew’ that don’t get silly (the odd one goes silly, usually something luxury/high powered). But I have noticed there’s a price difference north and south. I’m guessing delivery costs are an issue for us southerners. I’ve also noticed that those old bangers that still find their way on to the lists are making strong money. The 2004 Focus 1.6LX in wine red made 450 at the hammer. Plus fees and delivery and an MOT, that’s all of itself isn’t it? And the 2003 ‘Skoda’ saloon in silver made £400, again plus fees and delivery. What the hell is left in it? There was a time when I could put it down to ‘noobs’ or privates but not any more. Traders bought those cars. How are you guys finding it? Metcars
@PPJimi
CD Power awards I’m watching it live – so glad the red trousers are back @JRRBatchelor #fingerscrossed for year 8 #cdpower
@AutoglymPro
Thank you guys! Superb virtual event this year, although I hope we can all meet at the top of the tower again next year.
@SamMage26872142
Fantastic!!! We have some great teams in our business and so many that make the difference right from the cleaners to CEO. We have some amazing partnerships with our buyers and vendors with it all we are all #bettertogether So proud to be part of the team #auctions #auctioneers
Your comments via email to editorial@blackballmedia.co.uk
PICTURE OF THE MONTH
Finding you’ve got a flat tyre is never much fun, particularly after a 12-hour day... Fortunately for head of video Nigel Swan, pictured here using the ineffectual punctureplugging goop supplied with our Ford S-Max, his breakdown occurred just yards away from colleague Jon Reay, who was immediately on the scene to... take lots of photos! Sorry Nige.
Online is a new way of buying. I have always bought a few online before but not all of them. Been here a while I’m thinking so better get used to it . Bought nine today. My biggest problem is getting them here fast enough, though delivery is so slow. It takes two weeks sometimes which caused a massive delay when it first started, so we found we had to buy 10 extra and let it feed in so we had a constant supply arriving. If ever they deliver all together I’m stuffed for space! Transport prices have gone up too this week so that’s upset me. I do miss the cheapie bits we used to buy at physical auctions though for a bit of fun. David Horgan I miss the actual going to the auctions though and getting to socialise slightly, it meant an afternoon out of the workshop. but in the same respect it’s much easier for me to buy five or six through the course of the week from whatever site and then just send the truck out one day a week for collections. MarkTVS
BCA seems to be declaring major faults now – engine noisy, smoking, or a clutch fault. Doesn’t seem to be putting buyers off though. Watched a Jag XF last week declared as engine noisy, EML on and gearbox fault. Capping clean without faults at £3,700. It sold for £3750. Madness. Lakeside Can’t be a CAP warrior in this day and age. I’ve been online-only for a few years now and win many more than I lose. Rory RSC The guys who struggle to buy don’t bid on enough. We would regularly target 70-80 cars in a day at various auctions but we might only buy two or three. What a lot of people don’t understand is that if you have something ‘provisionally sold’ to you it means ‘provisionally bought’ by you so just carry on bidding on other stuff as you can refuse the provisional one later if your bid is accepted. Trade Vet
More and more of our readers are joining the debate – and it couldn’t be 40 | CarDealerMag.co.uk
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MISSING A TRICK?
Should you buy a car with no service history? Just after a little advice/insight about cars without service history, particularly at auctions. Just wondered how you view/assess them in terms of worth, taking a risk/value. Having recently started, we buy most/all our vehicles at auction, but at the moment only purchase vehicles with service history. However, it seems no service history doesn’t really put buyers off (at auction) so wondering if we are missing a trick! LSP Vehicles
We’ve teamed up with Car Sales Memes to bring you a few of their funniest captions and slogans each month. Enjoy!
Joe Public will walk past a car with full main dealer history, freshly belted if the next one is a few quid cheaper....most are penny wise and pound stupid. Frank Cannon One of the factors is do you have a ready reply for the question ‘Why is there no service history?’ Some people think no service history means the car has never had a service, then you get people who want it cheaper because you’ve answered the question ‘Has it got no service history?’ with a ‘no’, despite the price allowing for no history available. I have had many people put the phone down hoping I had made a mistake and not put FSH in the ad. Have a word with the wife We had a car in for a service a while back, Audi A6, been to the same Audi main dealer for 60,000 miles. New owner brought it to us, took the oil filter off and there were only tatters of the filament left. Never been changed we reckoned. Air filter was the same. Fuel filter had never been touched. Joe Public asks me about main dealer services and I have a slight smile. David Horgan
What are the risks of selling cars on behalf of customers? I note some dealers offer a service for selling customer cars for a fixed fee or percentage. I’m just wondering how it works in regards to the service itself and the accounting in particular. It’s something I am considering but I presume you are taking on the warranty risk? Johny1980 Risky game is that one Johny. You have to make it very clear that a few things are at their risk. Insurance while in your care can be an issue as it’s not your stock. Warranty is also an issue as the previous owner will deny any fault existed. Profit margins can be contentious too. My advice is DON’T do it. The accounting is simple. You sold it on commission + VAT, return was X, profit Y plus the VAT charged to the owner. David Horgan I would also add that you need to allow three months for the car to be sold. Your customer might imagine it will be sold in two weeks and if they take it back within the three months you should have a fee for the cleaning and advertising. I recently had this issue with a distant friend and will not be doing that again. Blenheim Car Sales
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6
The MC20 is capable of more than 200mph
UP CLOSE
INTERESTING FACTS ABOUT
MASERATI MC20
The exclusive supercar is packed with performance and technological innovations. Jack Evans gives us a tour around the flagship vehicle.
M
aserati has just unveiled its new MC20, bringing a new flagship supercar to the firm’s range of cars. Needless to say, it’s jam-packed with features – as well as a whole host of performance innovations – so there’s an awful lot to talk about. We’ve delved under the skin to find out the key things you need to know about Maserati’s latest supercar.
It’s got an extremely powerful engine As you’d expect from a highflying supercar, the MC20 uses an extremely powerful engine. It’s a 3.0-litre twin-turbo V6 that produces 621bhp and 730Nm of torque. As a result, 0-60mph should take around 2.7 seconds, while flat out the MC20 should do more than 200mph.
42 | CarDealerMag.co.uk
There’s likely to be a convertible version on the way Although Maserati has focused the initial launch of the MC20 on a hard-top version, there’s likely to be a soft-top variant on the horizon soon. That’s because its construction allows for the top to be lopped off with little effect on the car as a whole.
And an electrified version should be on the cards, too That same platform that has been geared towards a drop-top future also means that the MC20 will likely incorporate an electrified powertrain in the future. There’s little information about what type of engine or electric motor will power it, but it’s likely to be a pretty potent combination.
Key parts of its design were done via computer Many aspects of the MC20’s design were done completely digitally. The exterior, for instance, was created by Maserati’s Innovation Lab, which used dynamic simulators to shape and create the look of the car. In addition, a mathematical model called Virtual Car was used to finesse the car’s aerodynamics before they could be tested out on the road for real.
It’s targeted at Ferrari and McLaren
The cabin is laden with technology
That’s right – Maserati is using the MC20 to take the fight to fellow Italians Ferrari as well as the UK’s McLaren. Entering into the ultraexclusive, low-volume segment is a challenge, particularly given how many options there are. However, the MC20 is pitched as the very pinnacle of supercars, which it likely hopes will sway potential buyers away from other brands.
Get into the cabin of the MC20 and you’ll be met by a pair of 10-inch screens. One sits where you’d expect to find the conventional dials, while the second – positioned in the middle of the cabin – is where you’ll access all of the infotainment system. You’ve also got smartphone wireless charging and a drive mode selector at your disposal.
Click here to see the video of the Maserati MC20 CarDealerMag.co.uk | 43
DASHBOARD MOTORLINE
NEWS DIGEST HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED
£8.5m is spent on new Audi site MOTORLINE has moved its Audi dealership in Canterbury to a larger 40,000 sq ft site in an £8.5m investment. Formerly in Ashford Road where it was known as East Kent Audi, the showroom is now three miles away in Broad Oak Road, reopening on October 5 as Canterbury Audi and boasting enough space for 12 vehicles. It took nine months for the development to be built, after the pandemic held things up for two months. Some 15 more staff are expected to be employed.
SKODA
INVESTMENT
Digital retailer Drover secures £2.25m more funding as it looks to accelerate EV offering DIGITAL car retailer Drover has won another £2.25m in investments which it says will be mainly used to speed up the EV side of things. The money from Shell Ventures – the corporate venture capital arm of Royal Dutch Shell – will also be spent on talent and technology. Felix Leuschner, founder and chief executive of Drover, said: ‘Our car-as-aservice proposition has proven remarkably resilient in 2020, with record revenues in Q2 and Q3. Partnering with Shell will only strengthen our position as the leading flexible ownership model in the UK and beyond.’
WALES
Dealers help with engine app project HUNDREDS of Skoda dealers in more than a dozen countries have helped to develop a smartphone app that can figure out if the engine needs work doing to it. Garage technicians hold the phone near the engine to record its sound as it’s running. The recording is converted to a picture of the varying frequencies, which artificial intelligence analyses against stored data to find discrepancies. The dealers shared recordings and tried out the app. 44 | CarDealerMag.co.uk
New sales sinking in crackdown areas
NEW car sales leads are plummeting in areas of Wales affected by tough local restrictions, leading to fears tightening coronavirus rules elsewhere in the UK could throttle the car industry recovery. Richard Hughes, director of White Dove Motor Group, which operates Skoda, Seat and Suzuki franchises in Cardiff, said sales at his Seat dealership were down 70 per cent on the weeks when travel was allowed.
2.7
The time in seconds that the new Maserati MC20 supercar will reach 0-60mph. Flat out it should top 200mph. Read our six interesting facts about the Maserati MC20 supercar p42
INITIATIVES
Mitsubishi to offer free servicing
MITSUBISHI is to offer three years of free servicing and roadside assistance on all of its new models. Available on any new car between now and December 29, 2020, the move follows the firm’s announcement of its withdrawal from European markets and aims to give buyers added security when buying a new Mitsubishi model. In a separate initiative, Vauxhall dealers will soon be servicing all cars on a fixed-price programme.
Automotive social media agency launches. Supplier News: p48
‘We would advise car dealers and garages to create a QR code and encourage customers to check in when they enter the premises.’ Advice: p63
EVENT
Used Car Awards deadline looms
NOMINATIONS for our digital Used Car Awards this year have been flooding in and sponsors have been flocking to throw their weight behind the prestigious event as well. The deadline for entries is October 30, with the nominations list being announced on November 4, the shortlist on November 16, and the grand video ceremony itself taking place on December 16 at 6pm. There are 20 dealer categories and eight manufacturer categories in this year’s Used Car Awards.
RECORD SALES
TrustFord notches up £5m profit in Q2
PENT-UP demand and serious hard work saw TrustFord bounce back from a tough lockdown to record a £5m profit in the second quarter. It notched up a record 20,000 new car sales from June to August, with the strong performance continuing into September. Chairman and CEO Stuart Foulds said: ‘It’s a tribute to everyone working in these extremely challenging times that we are able to satisfy strong customer demand whilst delivering a stunning performance.’
CELEBRATION
Kevin marks 30 years with Nissan
THE founder of one of the bestknown dealerships in the Nissan network is celebrating 30 successful years with the brand. Kevin Abbs is the joint founder of Crayford & Abbs, which runs a Nissan dealership in the village of Bodham in north Norfolk. To mark the occasion, he was handed the keys to a new Nissan GT-R by GT-R specialist Jass Singh at Lookers Nissan Leeds for a spell behind the wheel.
TOYOTA
Holy hydrogen! Pope given special Mirai
POPE Francis has been given a specially adapted hydrogenpowered Toyota Mirai ‘Popemobile’. The car, which is 5.1m long and 2.7m high, is one of two that were specifically made by Toyota and donated to the Catholic Bishops’ Conference of Japan when the pontiff visited last November. It uses a hydrogen fuel cell system that results in zero-emissions propulsion, and can return up to 310 miles of range per tank of hydrogen, with just water as the end product.
INTERIMS
Many have realised that, sad as it may be, they don’t need quite as many staff to do the job as they had before the pandemic. James Baggott p21
Vertu bounces back from losses to profit
VERTU Motors bounced back from the lows of the national coronavirus lockdown to post a £4.7m profit for the first six months of the year. It achieved revenues of £1.12bn despite dealerships being forced to close for 10 weeks. In interim results announced on October 7, the group said it lost £14.3m in the first quarter due to the lockdown. However, it rebounded strongly with its best September performance resulting in a Q2 profit of £19m.
BITE-SIZE Bumper sales, online conference and more...
PARKING: Commuters are abandoning public transport in favour of driving to work, says an online parking platform. New research by YourParkingSpace. co.uk shows there has been an obvious drop in bookings for parking at train stations.
SALES: Motorway had a bumper sales month in September with a 25 per cent increase on August. Best-selling vehicle was a Jeep Wrangler Sahara Sport that went for 37 per cent above CAP. Worst was a Nissan Leaf Acenta Flex at 28 per cent of CAP.
EVENT: CarGurus is to hold a free online conference on October 26 and 27 to help car dealers keep pace with the evolving sales environment. Navigate will have industry insiders plus tech experts from other industries.
HELP: Insurance support for drivers whose habits have changed because of the pandemic will last until at least the end of 2020. The Association of British Insurers says it could be of significant help to many of the UK’s 27m policyholders.
Turn over page to catch up on more stories CarDealerMag.co.uk | 45
DASHBOARD ADDITION
NEWS DIGEST HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED
Krazy Horse joins Caterham network CATERHAM has added Krazy Horse to its UK network. The Bury St Edmunds dealership is the first one that the iconic British sports car maker has teamed up with that sells motorbikes as well as cars. It will sell the full UK range of Caterham’s cars, from the retro-inspired Super Seven 1600, pictured, to the 620, plus a selection of aftersales products including service, warranty and parts support, and takes the number of retailers in Caterham’s UK network to five.
UPDATE
TOP-LEVEL TALKS
Cabinet ministers told of industry challenges by Cambria boss Mark Lavery during dealership visit A BALANCED changeover from petrol and diesel engines is vital, cabinet ministers Grant Shapps and Brandon Lewis have been told by Cambria Automobiles boss Mark Lavery. Transport secretary Shapps and his Northern Ireland secretary colleague Lewis had the point made to them on a visit to Cambria’s Grange dealership in Hatfield. The ban could come in as early as 2032, and Lavery said he was grateful for the chance to reiterate Cambria’s stance. Pictured from left are Mark Lavery, Brandon Lewis, Grant Shapps and Cambria finance director James Mullins
ACQUISITION
Lockdown cost Motorpoint £3.4m THE lockdown in April and May cost used car supermarket Motorpoint £3.4m – but the impact was lessened by government support. In a trading update to the stock market on October 8, the dealer group – which operates 13 sites around the UK – said the shutdown was offset thanks to £3.8m of government handouts. The group furloughed a ‘large proportion’ of its staff and senior management took voluntary pay reductions. But it rapidly bounced back to profit in June. 46 | CarDealerMag.co.uk
Sandicliffe site is bought by Vertu
VERTU Motors has bought Sandicliffe’s Nottingham Kia dealership – the third Kia acquisition for the group this year. It follows a reorganisation by Sandicliffe earlier in 2020 that saw it shut its Melton Mowbray Kia outlet. Sandicliffe said at the time that it was retaining its Nottingham and Leicester Kia outlets, but the Leicester one was snapped up by TMS Group in the summer. Vertu now has nine outlets in Nottingham.
46.17 The time in seconds for our writer Ted Welford’s first run up the Shelsley Walsh hillclimb in an Abarth 595 Esseesse. Find out if he managed to better that on his subsequent runs. p52
COURT
Dealership used roads as forecourt
A LEIGH-ON-SEA dealership was told to pay a total of £4,400 after illegally using residential roads as an extension to its forecourt. Eastwood Motor Company, based in Rayleigh Road, admitted 48 charges of the offence when it appeared before Southend JPs and was fined £2,400 and told to pay £2,000 costs. The court was told Southend-on-Sea Borough Council had had a number of complaints from residents. Image: Google Street View
Ex-Audi boss stands trial. Business News: p50
‘The ability to change the welcome message on the digital dials was something that tickled me for days.’
Long-termers: p69
AWARD
Outstanding Kia dealers honoured
KIA Motors UK has recognised 34 dealers from across its 187site network with the President’s Acceleration Award. The awards went to those that gave outstanding performance and went above and beyond to rebuild in the past three months. Kia president and CEO Paul Philpott said: ‘We appreciate that each of our dealers have faced unprecedented challenges, and the awards highlight those that have really excelled and pulled through as a team.’
ACCOUNTS
Cathedral Motor Co suffers profit drop
THE Cathedral Motor Company – which trades as Arbury – saw its pretax profit drop from £3m to £2.6m last year although turnover rose from £132m to nearly £141m. In its accounts for the year ended December 31, 2019, filed with Companies House, it said it sold more than 9,400 vehicles over the 12 months – an increase of some 100. That was mainly down to a 6.7 per cent rise in the sale of used vehicles. Image: Google Street View
ACCOUNTS
There is a segment of the consumer base that wants to purchase completely digitally and we are going to be able to facilitate that. Car Dealer Live p54
JOBS BOOST
LEVC appoints its first dealer in Wales
INTER Vehicle Group has been made LEVC’s first full sales and aftersales dealer in Wales. The Cardiff dealership will supply the region with the London Electric Vehicle Company’s TX electric taxis and new electric van – the VN5. Fifteen jobs in facilities operations have been created by Inter Vehicle Group, which will also be taking on a new 27,000 sq ft commercial space in Cardiff Bay for the business’s growing Inter Hire element.
Cazoo loses nearly £19m in first year
CAZOO lost nearly £19m in its first year of business, according to accounts filed at Companies House. But directors of the used car dealer – which has attracted £450m of investment, valuing it at £2bn – said they were comfortable that it was a ‘going concern’. The accounts show the business made a loss of £18,921,615 for the year to December 31, 2019 on revenue of just £1.1m. It had a £35m cash balance, £63m net assets and £38m of undrawn stocking facilities.
CRIME
Tyres slashed on 40 cars at showroom
A DEALERSHIP in Kettering has been left counting the cost after vandals slashed all the tyres on 40 cars. The criminals targeted Beddows Motor Company in Green Lane overnight between September 22 and 23. The total cost has been put at £15,877.28. Dealership partner Mark Beddows told Car Dealer how sickened they had all been by it. ‘It just cripples you. You can’t move,’ he said, adding he couldn’t understand the mentality of those responsible.
BITE-SIZE
Fiesta diesels axed, Ferrari hopes and more... WAIT: As new car waiting list times creep upwards, research by What Car? has revealed some car buyers are happy to wait as long as it takes to get the model they want. Peugeot, for example, is reporting 12-week-plus waits for EVs such as the e-2008.
GONE: Ford has axed the diesel variants from its Fiesta range because of falling demand. It had been available with two 1.5-litre four-cylinder engines but now only has petrol powertrains. In its place comes a 48-volt 1-0-litre mild-hybrid variant
PLAN: Sytner Group is hoping to open Scotland’s second Ferrari dealership. It has submitted plans to Renfrewshire Council to transform the ex-Infiniti site in Braehead. Ferrari has a dealership in Edinburgh run by Graypaul, also part of Sytner.
PRICES: The prices of used petrol and diesel cars rose to record highs in the third quarter, although those of EVs and hybrids stabilised. That’s according to Autorola UK, which said the industry was starting to settle down to its new normal.
LIST: The top 200 most stocked used car dealers for September have been revealed as the number of cars sold falls. Analysts Carcondor say 86,818 used cars were sold by the dealers, generating revenues of £3.08bn. CarDealerMag.co.uk | 47
We run an Abarth 595 up Shelsley Walsh King of the Hill: p52
DASHBOARD
SUPPLIER NEWS
A ROUND-UP OF WHAT’S BEEN HAPPENING ACROSS THE COUNTRY SOUTHGATE CONSULTING
Free help and advice if redundancy is looming
WITH the end of the furlough scheme looming and redundancies in the car industry set to rise, motor trade job seekers are being offered a free helping hand. Recruitment firm Southgate Consulting is planning to give inspiration and advice in a series of 45-minute Zoom meetings to anyone whose motor trade role is made redundant. Contact Callum Southgate on callum@southgateconsulting.com.
MOTOR SOCIALS
Automotive social media agency launches AN AGENCY has launched that aims to free car dealers from the hassle and stress of running social media marketing campaigns. Motor Socials says its team – who have all worked in the industry – can use their skills and experience to run dealers’ social media channels, write the content, boost their following and drive leads into their business. Operations manager Lauren George, pictured, said: ‘Motor Socials is designed to free up motor dealers’ time so they can do the job they’re best at – selling cars.’
AUTO TRADER
Top Spot targeted advertising launched
AUTO TRADER has launched a highimpact advertising product to help dealers target local buyers. Top Spot is designed to give dealer partners unparalleled exposure to car buyers. As a premium marketing product, it will let retailers target local car buyers who are typically regarded as the most profitable. Dealers can control spending by choosingwhen to start or stop the advertisement and only pay when it gets seen. 48 | CarDealerMag.co.uk
INSURANCE
I advise that you start to plan for the worstcase scenario – in this case, a local or maybe even a national lockdown.
Ben Garside p57
CLEANLINESS
Loyalty shouldn’t be penalised, says FCA
Disinfected used cars importance highlighted
MOTOR insurance customers won’t be penalised for renewing their policy if proposals by the Financial Conduct Authority are brought in. The regulator says loyal customers shouldn’t have to pay more than new ones when renewing their motor or home policies. It reckons its proposals will save consumers an estimated £3.7bn over 10 years. Views need to be submitted by January 25, 2021, and the new rules would be introduced in 2022.
DISINFECTED used cars are more important than cut prices as car buyers look for cleanliness in light of the coronavirus. A survey by eBay Motors Group of 529 visitors to the Motors.co.uk site during August and September found a third of buyers rated cleanliness as the number one service used car dealers can offer. The assurance was especially important to female buyers, found the survey.
CarDealerMag.co.uk | 49
DASHBOARD
BUSINESS NEWS
A ROUND-UP OF WHAT’S BEEN HAPPENING AROUND THE WORLD RECOVERY
UK manufacturing growth rate eases
RECOVERY in the UK manufacturing sector continued in September but the growth rate eased slightly, according to latest figures. The IHS Markit/CIPS manufacturing purchasing managers’ index showed a score of 54.1 against August’s two-and-a-halfyear high of 55.2. Anything above 50 is regarded as expansion.
SCHEME
New wages help if firms shut over coronavirus THE government has announced new support for workers if firms are forced to close under new coronavirus restrictions. It will pay two-thirds of their salary up to £2,100 a month without employers having to contribute. The expansion of the Job Support Scheme, announced by Rishi Sunak on October 9, will start on November 1 and run for six months. Staff must be off for at least seven days in a row. Here’s what car dealers need to know about latest furlough scheme
COURT
EXPERIMENTS
Ex-Audi boss on trial First UK lab for testing over emissions scandal driverless cars opens
VICTORY
Uber wins London licence appeal A JUDGE has given Uber an 18-month licence to run its ride-hailing service in London after being deemed ‘fit and proper’. It was denied a licence to run its service in the capital by Transport for London (TfL) in November 2019. TfL cited breaches compromising passenger safety and issues with transparency, but deputy chief magistrate Tan Ikram allowed an appeal at a court in Westminster.
EX-AUDI chief Rupert Stadler has gone on trial in Munich over charges connected to its cheating on diesel car emissions tests. He was joined by three others for the start of the first criminal trial in Germany over the scandal. All four are charged with fraud, false certification and criminal false advertising in a trial that is set to go on until December 20, 2022.
A NEW lab will test driverless cars that use 5G and satellite technology. The Darwin SatCom Lab is the UK’s first commercial lab of its kind and is backed by the government plus UK Space Agency funding. Based at the Harwell Science and Innovation Campus in Didcot, it’ll look at using 5G tech and satellites to keep vehicles connected. Firms can test driverless cars there.
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APPOINTMENT
UNEMPLOYMENT
Dominique Boesch is Jobless total soars made Genesis’s first MD to three-year high
DOMINIQUE Boesch has been made Genesis Motor Europe’s first managing director as it readies itself for its launch. He joins Hyundai’s luxury vehicle division from Audi, where he has been sales director in France then MD in South Korea, Japan and China, as well as head of European sales. Latterly, he has been leading the brand’s future Global Retail Strategy.
UNEMPLOYMENT has jumped to its highest level for more than three years as the coronavirus crisis claimed jobs across the economy, according to latest figures from the Office for National Statistics. The number of people out of work rose quarter on quarter by 138,000 to 1.52m in the three months to August – the highest since the beginning of 2017.
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LOCKDOWN LOANS
Aid could cost government £27bn THE government could lose £27bn on Bounce Back loans and two other support measures it put in place at the height of the lockdown. The Department for Business, Energy & Industrial Strategy said the Bounce Back Loan Scheme alone could cost it as much as £22.8bn. It has told banks it will pay them back if a business can’t. The loans were given to small businesses and extensively taken out by car dealers.
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FEATURE
KING OF THE I HILL! Ted Welford learns about and samples one of the oldest motorsport venues in the world in one of Abarth’s hottest models.
52 | CarDealerMag.co.uk
t can be a strange job this one at times. That’s certainly what we’re thinking as we’re enjoying a walk up a crazily steep bit of tarmac in a lovely part of Worcestershire, exactly mirroring the walking line of our instructor for the afternoon – think a grownup’s version of follow-my-leader and you get the idea. Yes, welcome to the world of hillclimbing. But no, this isn’t the art of walking up a hill (as self-explanatory as it might seem), but rather, driving a car up a gradient instead. And as this is a form of motorsport, the aim is to do it as quickly as possible. Famous racing hillclimbs include Pikes Peak, which weaves through the Rockies in America, along with Goodwood’s iconic hill that is used during the Festival of Speed. But here we are at Shelsley Walsh – the longest-running unchanged motorsport venue in the UK – which has been in near-constant operation since 1905, with the exception of the two world wars. While it’s usually single-seat racers that head up this 1,000-yard stretch of tarmac, our steed for the day is something a bit more humble – an Abarth 595 hot hatch. So with an Abarth at our disposal, why exactly are we walking, rather than driving, up this hill? Well, it’s all about learning the lines, which is much easier to do at a walking pace than at near-motorway speeds. We’re looking for the yellow markers that signal when to turn in. At the same time, you can’t help but notice huge tyre marks going into straw bales, or worse – a rather steep drop at the opposite side. Yes, things quite often go wrong with hillclimbing, and unlike a typical track, you don’t have a run-off or gravel to help save any impact. After enjoying more exercise than we’ve done for some time, we head back down to the paddock area at the bottom, where there’s a colourful line-up of Abarths waiting for us. Our particular vehicle is the 595 Esseesse (pronounced ‘essay-essay’ in your finest Italian accent), which sits at the top of the 595 range and is arguably the best-suited model to this hillclimbing business. With its Brembo brakes, sportier dampers and mechanical limited-slip differential, it’s the most performance-orientated of the Abarths, and also looks mega in its Campovolo Grey colour plus white 17-inch alloy wheels. It comes with a punchy turbocharged 1.4-litre petrol engine, too, enabling a 0-60mph time of 6.5 seconds and a claimed top speed of 140mph – although we wouldn’t be getting close to that figure up this hill. You also get a performance Akrapovic exhaust. Lined up on the hill, we’re a bit nervous to say the least. It’s quite different walking up a hill to thrashing a car up it, and the worry about forgetting everything you’ve just learnt beckons. To allow for a swift getaway, a marshal puts a wooden ‘chock’ under the back wheel, and with the lights turning green, off we go. It’s a brilliantly smooth, flowing piece of tarmac,
As the lights go green, the 595’s wheels spin up and it feels like progress as we speed up the first section of track.
You can’t help but notice huge tyre marks going into straw bales, or worse – a rather steep drop at the opposite side.
with the sections of track coming in the order Start, Kennel, Crossing, Kink, Bottom Ess and Top Ess, before a straight that heads right to the top of the hill. Until you get to the ‘Esses’, there isn’t really a need to brake, either. The first run is a rather steady one – ‘learning the track’ is probably the diplomatic way to describe an underwhelming 46.17 time. This comes just after we’ve been told the quickest time up Shelsley is 22.58 seconds, set by a Gould GR55NME – a car specifically built for hillclimbing. While it’s clear we won’t be beating that, something a bit closer is the aim… After all six Abarths have got to the top, all spaced out just in case there’s an accident – which thankfully there isn’t – everyone heads back down in convoy. But while it’s not a race as such, nobody wants to come last, do they? The second run is a better one as the lines become clearer and how to use the yellow markers starts to make more sense. We’re pretty impressed with the time (which turns out to be 43.85 seconds), but it turns out our instructor Gary Thomas isn’t quite so pleased. We’re braking too early – the most common mistake up Shelsley, he says – and not ‘straight-lining’ the first bit as we should be. Must try harder. Taking the advice on board, there’s a noticeable improvement as a second is shaved off the time (now 42.82 seconds). The next three are all similar, with times of 42.76 seconds, 41.9 seconds and 42.03 seconds. But we’re still not happy with a particular performance, as there’s always something that messes up a hillclimb. With our final run approaching, it’s time to try to get our best time up the hill. Thomas is carefully watching everyone’s driving and giving some final tips to extract our finest performance. His advice couldn’t be more blunt. ‘Is this your car?’ ‘Errm, no,’ we hesitantly reply. ‘Well, what have you got to lose then? Push it to its absolute limit.’ Understood. Up until now, it’s the actual start that’s been the biggest letdown. Next to everyone else speeding away off the line in front of us, ours keep feeling a bit disappointing. So with the knowledge that we probably won’t get to do a hillclimb again (or at least for some time), it’s the final chance to perfect this. As the lights go green, the 595’s wheels spin up and it feels like progress as we speed up the first section of track. We’re a bit wide on the first corner, but aside from that, the rest of the run is one we’re happy with. The result? 41.16 seconds. Yes, we’ll take that, and it means we’re not actually last! As the hillclimb closes for the day, the Abarths are returned to the paddock, all ticking away after some brutal abuse but performing brilliantly. If ever there was a setting to show off one of these sporty hot hatches at its best, an enthusiastic drive up Shelsley Walsh is it. We leave hoping that this isn’t our final taste of hillcimbing, as well as with a prize for being the ‘Most Determined Driver’. Quite what the word ‘determined’ means in this context or how we earned it, we’re not entirely sure… CarDealerMag.co.uk | 53
DASHBOARD
INDUSTRY VIEWS NEWS AND THOUGHTS FROM SOME OF OUR CAR DEALER LIVE GUESTS ZEUS CAPITAL
Pendragon strategy is very impressive
MIKE Allen, head of research at independent investment banking operation Zeus Capital, commented on how impressed he’d been with Pendragon’s strategy document. ‘It’s clear [Bill Berman] has gone through the business in detail. He knows what he wants. He knows what he doesn’t want. I think there’ll be a lot of focus in the right areas.’ However, he added: ‘Obviously it is in a volatile market as well. But I think Bill’s taken that into account.’
PENDRAGON
Digital transition will help us to £90m profit
PENDRAGON CEO Bill Berman said the digital transition would help the group achieve its ambitious target of generating £85-90m profit by 2025 – but it wasn’t the only solution. ‘There’s no one thing that will get us there – if it was that easy I would have retired 20 years ago,’ he joked. ‘No other product has a new car smell and I know no VR that allows you to experience driving a new Porsche GT3. It’s hard to spend 10-12-15 thousand pounds sight unseen, but there is a segment of the consumer base that wants to purchase completely digitally and we are going to be able to facilitate that.’
SUBARU UK
Our future is purely SUV and crossover
NEW Subaru UK boss John Hurtig faced criticism of his brand’s ability to survive in the UK but was adamant that it would become a stronger brand under his leadership. He said: ‘We have a strong company, we have a strong owner with money, we have to invest that money because we have to get back and build this brand, and we have started that in September.’ But he stressed: ‘The future for Subaru is purely SUV and crossover.’ 54 | CarDealerMag.co.uk
CAZANA
My view is you have highs and lows in life, and we’ve had a high so shortly will come a low, or at least a more moderate period. Robert Forrester Vertu CEO
AUTOMOTIVE 30% CLUB
Average price of older cars has gone down
The more diverse your sales team, the better
CAZANA director of insight Rupert Pontin said the average retail price of vehicles more than 10 years old had dropped by 3.68 per cent in the week before his appearance. ‘Perhaps we’re beginning to see that area of the market tail off.’ He hadn’t been surprised by it, he added, as those people seeking a car had got themselves sorted. ‘That’s why I see pricing returning downwards slightly to a more realistic level, if you can call it that.’
FOUNDER Julia Muir talked about gender inequality in the motor trade. ‘We also ought to ask does it actually matter that so few women work in sales? ‘And our opinion and the research that we’ve done would show that yes it does matter,’ she said. ‘And the more you can get a team that is diverse and from different backgrounds and different perspectives, the more it reflects the customer base.’
The latest from our fleet. Long-termers: p69
Watch our Car Dealer Live broadcasts as they go out or catch up on any that you’ve missed at: cardealermagazine.co.uk/live VERTU
There will be longer lasting economic impacts that will have some sort of impact on the industry, but I don’t think it will be a broad brush. Rawdon Glover Managing director of JLR
CAP HPI
Christmas could mean boom time for dealers as people splash out on gifts
Used cars are likely to do well as 2021 starts
VERTU chief executive Robert Forrester is predicting that Christmas could be a boom time for his dealers as customers splash out on new vehicles as presents. ‘My view is you have highs and lows in life, and we’ve had a high so shortly will come a low, or at least a more moderate period. I was musing the other day about Christmas and who knows where we’re going to be by Christmas? It depends on the death rate, but what can people buy for Christmas?’
HEAD of valuations at Cap HPI Derren Martin spoke about the state of the used car market but said it was very difficult to predict what was going to happen next. The first quarter of 2021 was likely to be pretty good, he commented, with a ‘tipping point’ around Easter. He said: ‘The high volumes from previous years like 2018 will come back in 2021 and cars from 2017 that didn’t come back into the market this year will start to come back too.’
FREETHS
Act now over business interruption claims
JAGUAR LAND ROVER UK
We’re probably in the best shape we can be JLR managing director Rawdon Glover said he was generally positive about the remainder of the year for sales at Jaguar Land Rover dealerships. He explained that dealers had been getting busier since reopening in June, saying: ‘As we go into the next quarter I think we’re probably in the best shape we can be. ‘I am cautiously optimistic about the future, because in terms of how the pandemic is going to affect the economy as a whole I suspect, like everyone else, that there will be longer lasting economic impacts that will have some sort of impact on the industry, but I don’t think it will be a broad brush.’
RICHARD Coates, partner at legal firm Freeths, told Car Dealer in an exclusive interview that dealers must urgently look at their business interruption insurance policies and make a claim. He said by engaging a lawyer now dealers may be able to use the FCA test case to make insurers pay up. ‘Most policies will include a time limit for notification of a claim. If you haven’t done so, the insurer will say you’re out of time.’ CarDealerMag.co.uk | 55
DASHBOARD
FINANCE NEWS PARTNERSHIP
First Response and G3 extend contract for three more years by John Bowman john@blackballmedia.co.uk
G
3 Vehicle Auctions and First Response Finance have signed a new deal that will see the lender become one of the first headline vendors for the auctioneer’s new £12m marketplace. The two businesses have agreed a threeyear extension to their solus contract ahead of G3’s move to the purpose-built 14-acre G3’s new £12m marketplace in West Yorkshire centre, pictured, off junction 32 of the M62 in West Yorkshire in January 2021. First Response Finance – which scooped the trophy for Finance Provider of the Year (SubPrime) at Car Dealer Power 2020 – and G3 Vehicle Auctions began working together in 2017. The contract extension means First Response Finance will now offer all of its disposals through its sale events every Tuesday and Thursday with instant decisions on bids. Matt Dale, joint director of G3 Remarketing, said: ‘We are delighted to reinforce the great relationship we have with First Response Finance with this long-term deal now in place to support our exciting expansion plans. ‘We’ve worked hard to deliver enhanced performance for First Response Finance in what many are seeing as a challenging time for the automotive industry, so it’s a testament to our team that we’ve been able to satisfy the needs of another large finance house who lead the way in their field.’ As part of the new deal, the number of drop-off locations in G3’s network will go up to 35. Paul Heaton, team manager at First Response, said: ‘The collection and disposal of our vehicles through G3’s sale events continues to form an essential part of our business. One of the key reasons we chose G3 was the uplift in financial returns using their E-Recovery management software, which we use to track all our collections in one place and we’re now able to report on our assets in real-time. ‘To recognise the levels of service that G3 are providing by awarding a long-term extension to the contract shows we are fully committed to the partnership. ‘We’re looking forward to both our businesses growing together and being part of their impressive development plans.’
NEW RULES
Dealers and financiers ‘must work together’ MOTOR finance firms have to work now with vehicle retailers and technology providers ahead of new FCA rules coming in next January. That’s according to iVendi, which says there must be uniformity over all the channels via which they sell their products. It says many dealers seem to be focusing on ensuring their systems comply but aren’t checking that third-party platforms and other routes to market also meet requirements. Chief executive James Tew said: ‘Key among the FCA changes are the banning of discretionary commission and the question of how the existence of commission is presented to the consumer in the future. ‘Because so many physical and online channels are used by motor finance companies and their intermediaries, this creates something of a challenge. We are very much aware that everyone needs to be working together to reduce the impact and business disruption in this area right now.’
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THE UK’S #1 ASMOTOR FINANCE LENDER * VOTED FOR BY CONSUMERS
*on reviewcentre.com
56 | CarDealerMag.co.uk
IN ASSOCIATION WITH
TIME IS MONEY BEN GARSIDE
A MONTHLY LOOK AT THE WORLD OF AUTOMOTIVE FINANCE AND MARKETING
Sorry to be a pessimist but be prepared for the worst
A
Ben Garside is marketing manager for First Response. Call him on 07817 518739 or email ben.garside@frfl.co.uk
s I write this column, more lockdowns are looming. In Scotland they’ve announced new measures that will be in effect by the time you read this. Pubs and restaurants are to be closed in central belt Scotland, whereas in the other parts of Scotland there will be a 6pm curfew for all indoor hospitality venues. Looking at the rising cases elsewhere, it can only be a matter of time before we all follow suit and, like previously, I predict stricter measures will be implemented across all markets and businesses. Sorry to be a little pessimistic, but I feel we need to be realistic about the fact that more lockdowns could be on the cards. So, where does this leave the motor market? There are a few things to mention here. We need to remember that we’ve been here already this year. It was tough, challenging, lonely at times and most definitely tested our resolve. However, as an industry we adapted, we embraced change and we got through it together. Throughout those months, we managed to assess many different areas – for instance, purchasing of stock and advertising – and many motor traders implemented new processes to sell and deliver their vehicles. Obviously, there was a downturn in the market, and the motor finance market was hit hard, too. However, there were a few motor finance providers that continued to operate and assist motor dealers’ operations during the Covid-19 lockdown, such as ourselves. The FLA has released figures on its website that state in July 2020 the number of new and used cars sold on finance at point of sale were up nine per cent. However, those figures for the three months to July were down by 33 per cent and 21 per cent respectively (year on year). While these losses in business are hard to stomach, they could have been worse. I have spoken to many car dealers who stated they were happy that finance companies like ourselves had implemented new processes and requirements to allow the sale of their vehicles. They stated that finance was a key method in keeping their business moving during the last lockdown, as it meant they could still trade while adhering to the government’s restrictions. In its announcement, the Scottish government again advised against non-essential use of public transport. As such, I believe there will be an increase in demand by consumers who rely on public transport for commuting to work and/or personal journeys. Again, I can see the other governments sharing this advice and guidance, thus bringing demand across the whole UK. I advise that you start to plan for the worst-case scenario – in this case, a local or maybe even a national lockdown – and be ready to service your customers’ demands via socially distanced processes. As always, First Response will be here if you need us.
98%
OF CUSTOMERS WOULD RECOMMEND FIRST RESPONSE
I feel we need to be realistic about the fact that a second lockdown could be on the cards.
GET IN CONTACT TODAY. frfl.co.uk/car 0115 946 6260 enquiries@frfl.co.uk CarDealerMag.co.uk | 57
EXTRA COVER
TECHNOLOGY
Cyber risks (and insurance) The digital dangers posed to business operations may be evolving but dealers aren't defenceless, says Leon Bosch
A
few months ago we did an article around the rise in distance selling and the cyber risks associated with this increased online form of selling. Since then, we have hosted and number of cyber risk awareness webinars (click here to listen to our last one) and learnt about the following cyber attacks that have been announcedi so far this year: March 2020 • Boots Advantage Card holders suffer security breach as criminals target passwords and rewards points • Virgin Media apologises for data breach • The Marriott International hotel chain is hit for a second time suffering a data breachii May 2020 • easyJet hit by cyber attack affecting nine million customers June 2020 • Honda announces a cyber attack has impacted its operations around the world July 2020 • Twitter accounts hacked, exposing potential for reputational harm • Mobile phone risks; 58 per cent believe smartphones are vulnerable to cyber attacksiii August 2020 • New Zealand stock exchange halted by cyber attack September 2020 • Cyber threat to disrupt start of university term due to rising wave of cyber attacks, says the National Cyber Security Centreiv As the world evolves, the ways in which business is conducted, and their associated risks, do too. Cyber risk is now present in most business operations and business owners are beginning to understand that you do not need to be a digital business to be exposed to cyber risks, only digitally reliant. So, what do we mean by a business that is digitally reliant? We mean any business that relies on digital services or data to operate. For example, a dealer may not see themselves as a digital business, but they rely more on technology and data today than they ever have done before. Some of the common ways in which a dealer relies on technology are: • Creation and storage of invoices and receipts • Taking and making electronic payments (via computer or mobile) • Use of email • Storage of customers' personal information (names, addresses, payment details) • Updating and using diagnostic equipment • Digital service records • Sale of online goods or services This article does not purport to be comprehensive or to give legal advice. While every effort has been made to ensure accuracy, Arthur J. Gallagher Insurance Brokers Limited cannot be held liable for any errors, omissions or inaccuracies contained within the document. Readers should not act upon (or refrain from acting upon) information in this document without first taking further specialist or professional advice. Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP1317-2020 Source bbc.co.uk/news except where specified https://www.infosecurity-magazine.com/news/new-marriott-data-breach-affects/ https://www.ecclesiastical.com/media-centre/smartphone-cyber-risks/ iv https://www.bbc.co.uk/news/education-54182398 i
ii
iii
58 | CarDealerMag.co.uk
About Gallagher Founded by Arthur J. Gallagher in Chicago in 1927, Gallagher has grown to become one of the leading insurance brokerage, risk management, and human capital consultancy firms in the world. With a truly global reach, our organisation employs over 33,000 people and our international network provides services in more than 150 countries. Our values are core to our culture. Passionate Service, Strategic Innovation, and Ethical Behaviour form the basis of how we do business. Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP9532020
...in association with Gallagher
To help protect your business and your clients: • Always question unexpected approaches and requests and highlight this to your customers • Verify all payment requests verbally in a separate phone call before sending any money
If these challenging times have shown us anything it is that, for most organisations, cash flow is king and that a sustained period of downtime could threaten the survival of any organisation. Luckily, this time, some business owners have received financial support from the government to help them survive while they are not able to trade, but how many businesses would survive if there was no governmental support? The question to ask of your own organisation is: ‘Could we survive a sustained period of downtime without financial support?’ Thinking about the digitally reliant operations we highlighted above, now ask if your organisation could survive if any of the following incidents occurred: Lost data. Dealers will hold increasing amounts of personal information on customers. If data is lost, then the business could be exposed to severe penalties from the Information Commissioner's Office, litigation, and a damaged reputation that could affect other customers’ willingness to engage with the business. Denial-of-service attack (DoS attack). This is a cyber attack in which the perpetrator seeks to make a machine or network resource unavailable to its intended users by temporarily or indefinitely disrupting services of a host connected to the internet. Ransomware. Ransomware is the most common form of cyber crime in the UK. It is a form of malware in which rogue software code effectively holds a user’s computer hostage until a ‘ransom’ fee is paid. Most ransomware attacks are the result of clicking on an infected email attachment or visiting hacked or malicious websites. We are seeing several instances of sophisticated social engineering scams, including Push Payment Fraud. This is when fraudsters deceive consumers or individuals at a business to send them a payment under false pretences to a bank account controlled by the fraudster. As payments made using real-time payment schemes are irrevocable, the victim cannot reverse a payment once they realise they have been deceived. There are various examples of cyber criminals posing as suppliers and asking for amended payment details to be processed. More commonly, customers are duped into paying the wrong business. For more information and risk support, please contact The Gallagher Automotive Insurance Team. T: 0800 612 2284 E: automotive_enquiries@ajg.com W: www.ajg.com/uk
• Remember that fraudsters may know basic details about you and can fake phone numbers, names and email addresses. Hang up the phone and get in touch with the company directly using known contact details. • Listen to your instincts and leave the conversation if something feels off. A trustworthy person shouldn’t make you feel pressured, and customers will always appreciate a cautious and practical vendor. • Speak to your insurance broker. Cyber and crime insurance policies can provide indemnity for costs and awards for lost data, business interruption, lost money and assets. They can also provide support and access to specialists such as forensic IT investigators, system remediation support, legal and PR support to prevent a lasting reputational issue including ongoing credit monitoring. Leon Bosch is the managing director of the automotive practice at commercial insurance broker and risk management specialist Gallagher. CarDealerMag.co.uk | 59
We check each and every dealer who wants to use us, even for their initial free trial.
So you can be sure you’re only dealing with other experienced motor trade professionals. Call 01243 772200 or visit cartotrade.com for your free trial. • Proper cars • Proper dealers • No contracts • No price increases
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ADVICE COMPLIANCE
Car dealers warned FCA is conducting random spot checks and failing one could kill their business
C
ar dealers face random spot checks from the FCA as it steps up mystery shopping to check on those selling finance. Experts have warned that dealers falling foul of the checks for relatively minor infringements could then find themselves subject to far more thorough investigations. Following the FCA’s ban on discretionary commission, the city watchdog is to carry out ‘point-of-sale mystery shop exercises to measure lenders’ control over dealer networks’. Trevor Johnson, head of business at Automotive Compliance, said if a car dealer failed a mystery shop it could ‘kill a business’ and that all dealers should be confident their selling procedures will stand up to scrutiny. Paul Guy, Automotive Compliance director, told Car Dealer an investigation could ‘open up a can of worms’ and he warned dealers to ensure their staff were giving customers robust information. ‘In previous mystery shop exercises, the FCA has reviewed whether the advisers give customers correct and up-to-date documents and also assessed whether the contents of conversations were clear, fair and not misleading. ‘The concern for dealers would be that should the mystery shop highlight an area of concern in one particular area, the FCA is then duty bound to act upon this and review. ‘Having been present at these types of reviews, it is like opening a can of worms, off in all directions and you can’t put the lid back on.’ Guy advises dealers to ensure their FCA processes are up to date and that staff are following the procedure every time. ‘The last thing a dealer needs is for it not to happen on a mystery shop,’ he said. Other important things to check include ensuring the finance commission disclosure is up to date, reviewing customer documents, making sure initial disclosure documentation is up to date and the disclosed panel of lenders is current. Guy said: ‘I would suggest reminding your sales advisers what their regulatory responsibilities are and retain evidence of these sessions. ‘Make sure your staff accreditation and training records are up to date – you will be asked the don’tad sayRevised a bloke from the finance company and does a bit Carquestion dealerlater newand strip 4/4/18 12:01 Page comes 1 with the guys.’
Paul Guy
Click here to see the video of our interview with fellow Automotive Compliance director Paul Speakman
Excellent variety of weekly stock from premium sources
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Remind your sales advisers what their regulatory responsibilities are and retain evidence of these sessions.
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COVID-19 CORONAVIRUS The IGA is supporting independent garages through the COVID-19 pandemic. Find everything you need to fight the virus at: IndependentGarageAssociation.co.uk
Call us for more information on:
62 | CarDealerMag.co.uk
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ADVICE
A
COVID-19
Car dealers encouraged to set up Test and Trace QR codes for customers to use in the fight against coronavirus
ll businesses – including car dealerships – that are open to the public should display a government-generated QR code to enable customers to test and trace. There has been strange advice from some trade bodies that suggested this wasn’t mandatory – however, even though it’s optional, with the process taking just seconds to do and directly helping fight the virus, car dealers would be silly not to do it. With the launch of the NHS Test and Trace app rolled out for iPhone and Android users last month, any business that is open to the public is being encouraged to display a QR code so customers can ‘check in’. The government advice states: ‘You should create and display a QR code if you are a business, place of worship or community organisation with a physical location that is open to the public… or an event which is taking place in a physical location.’ Car dealerships with more than one location should generate a code for each one of their dealerships to help with the battle against the pandemic. The government website adds: ‘If you have more than one venue, you need to create a separate QR code for each location. You can add multiple locations in the service.’ There was confusion at first that only food and drink venues needed to create a QR code. However, the government advice clearly states that all businesses should do so. Although not mandatory, there’s little reason why car dealers wouldn’t want to be involved. Joel Combes, director of motor trade legal experts Lawgistics, said: ‘We would advise car dealers and garages to create a QR code and encourage customers to check in when they enter the premises to comply with the rules.’ Banks were warning business customers that they must set up a QR code from September 24 to comply with the rules. Barclays told its customers: ‘From today, 24 September, if your business has a physical location that is open to the public, you’ll need to display an NHS QR code at the entrance. ‘This is to support the government with its track [sic] & trace scheme.’ The QR codes can be generated online on the government website here. The app has been rolled out as the UK recorded the highest single-day figure of coronavirus cases since the outbreak began. As of 9am on Thursday, September 24, there had been a further 6,634 lab-confirmed cases of Covid-19 across the four nations, taking the overall number of cases confirmed to 416,363. The Test & Trace app is available on iOS and Android operating systems, but it won’t work on older handsets. On the iPhone, you will need to be running iOS 13.5, meaning the oldest possible iPhone device you can use it on is 2015’s iPhone 6s. On Android, Marshmallow 6.0 – released in 2015 – and higher is required. NHS Test and Trace says this is because the app needs something called Exposure Notification, which Apple and Google developed together for it to work. Those unable to access the app are urged to continue using traditional contact tracing services instead.
To set up the QR code, businesses will need: • Business email address. • The address of each location of the business. • An email address of the manager of each site. • A phone number of the manager of each site.
We would advise car dealers and garages to create a QR code and encourage customers to check in. Joel Combes CarDealerMag.co.uk | 63
DATA FILE
STATISTICS
THE LATEST REGISTRATION FIGURES
SMMT
SALES DATA
SEPTEMBER/YEAR TO DATE
TOP
ANALYSIS
SMMT ‘looking to go begging to government for support’
THE CARS SOLD IN SEPTEMBER 2020
by James Batchelor james.batchelor@blackballmedia.co.uk
I
ndustry experts believe the Society of Motor Manufacturers and Traders may be angling for government support for the automotive sector. The trade body published its data for the crucial September plate change month on October 5, with an overly negative commentary as registrations totalled just over 328,000 cars. While the total figure represents a fall of 4.4 per cent compared with the same month last year, the general reaction by those in the industry has been positive when a lack of preregistrations activity and slowing new car supply are taken into account. Speaking to Car Dealer during a live broadcast as the figures were released, ASE Global chairman Mike Jones said it looked like the SMMT was positioning itself to put pressure on the government for support. ‘The tone from the SMMT is quite negative – it’s like it’s building up for a begging bowl request. The SMMT are really highlighting some of the negatives here – the lowest ever September registrations since 1999, the offers are there but they’re not enough to help business and personal confidence. ‘Yes, September is down, but if we got back to 2010 and 2011, September 2020 was only slightly down on then.’ Jones said the drop was ‘all in business which, in the nicest possible way, is a drop in pre-reg’, adding: ‘On a general level, it appears the SMMT tally wants to make a hit with this and go to government saying we need some support,’ Jones added. The accountancy expert’s views were backed up by What Car? editorial director Jim Holder, who said: ‘The negativity surrounding these figures is misleading. ‘Almost every retailer and the majority of manufacturers are reporting an exceptionally strong month and, most crucially, a profitable one as they match supply and demand, opt out of unprofitable pre-reg and build a pipeline for the future months.’
Model Vauxhall Corsa
Regs 10,553
Ford Fiesta
9,545
Mercedes-Benz A-Class
8,085
Volkswagen Polo
7,417
Volkswagen Golf
6,788
Nissan Qashqai
6,572
Ford Puma
6,341
Mini
6,213
Volvo XC40
5,653
Ford Focus
5,625
SEPTEMBER 2020
New car sales fall by 4.4 per cent in weakest-ever new plate for the month NEW car sales dropped by 4.4 per cent in September, the SMMT revealed. The figures had been predicted to be down by up to four per cent, as reported by Car Dealer. The new car sector had 328,041 registrations in the month – which the industry body said was the weakest September since the introduction of the dual number plate system in 1999 64 | CarDealerMag.co.uk
and some 15.8 per cent lower than the 10-year average of around 390,000 units for the month. Mike Hawes, SMMT chief executive, said: ‘During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery. Despite the boost of a new registration plate, new model introductions and attractive offers, this is still the
poorest September since the two-plate system was introduced in 1999. Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed.’ The SMMT said, however, that it took heart from the fact that battery-electric and plug-in hybrid uptake rose ‘substantially’, accounting for more than one in 10 registrations.
Van registrations LCV news: p66
-48%
+154%
SUBARU
SMART
Figures supplied by SMMT
September 2020 Marque
2020
% market share
September 2019 2019
% market share
Year-to-date % change
2020
% market share
2019
% market share
% change
Abarth
578
0.18
662
0.19
-12.69
1,851
0.15
2,888
0.16
-35.91
Alfa Romeo
331
0.10
500
0.15
-33.80
1,533
0.12
2,805
0.15
-45.35
10
0.00
11
0.00
-9.09
83
0.01
137
0.01
-39.42
21,893
6.67
12,741
3.71
71.83
80,435
6.47
113,254
6.08
-28.98
263
0.08
153
0.04
71.90
1,010
0.08
1,215
0.07
-16.87
21,225
6.47
27,834
8.11
-23.74
84,611
6.80
131,906
7.08
-35.86
Alpine Audi Bentley BMW Chevrolet
0
0.00
7
0.00
0.00
0
0.00
62
0.00
0.00
Citroen
5,471
1.67
6,863
2.00
-20.28
22,107
1.78
42,518
2.28
-48.01
Dacia
5,263
1.60
4,300
1.25
22.40
16,434
1.32
25,344
1.36
-35.16
DS Fiat Ford
474
0.14
556
0.16
-14.75
1,768
0.14
2,842
0.15
-37.79
4,391
1.34
4,765
1.39
-7.85
15,745
1.27
24,870
1.34
-36.69
28,252
8.61
32,522
9.47
-13.13
117,783
9.47
188,124
10.10
-37.39
Honda
5,953
1.81
5,535
1.61
7.55
22,458
1.81
36,176
1.94
-37.92
Hyundai
11,645
3.55
14,418
4.20
-19.23
37,847
3.04
68,669
3.69
-44.88
Infiniti
0
0.00
11
0.00
0.00
0
0.00
286
0.02
0.00
Jaguar
4,006
1.22
6,052
1.76
-33.81
18,362
1.48
29,364
1.58
-37.47
843
0.26
779
0.23
8.22
3,348
0.27
4,878
0.26
-31.37
Jeep Kia
14,896
4.54
16,386
4.77
-9.09
57,155
4.60
80,185
4.31
-28.72
Land Rover
11,444
3.49
12,791
3.73
-10.53
44,840
3.61
60,713
3.26
-26.14
Lexus
3,693
1.13
3,852
1.12
-4.13
11,341
0.91
12,826
0.69
-11.58
77
0.02
95
0.03
-18.95
436
0.04
760
0.04
-42.63
6,117
1.86
7,600
2.21
-19.51
18,796
1.51
33,324
1.79
-43.60 -39.71
Maserati Mazda Mercedes-Benz
23,522
7.17
30,398
8.86
-22.62
84,693
6.81
140,484
7.54
MG
3,668
1.12
1,363
0.40
169.11
14,236
1.14
9,352
0.50
52.22
Mini
9,095
2.77
12,691
3.70
-28.34
33,826
2.72
50,743
2.72
-33.34
Mitsubishi
1,242
0.38
2,017
0.59
-38.42
7,457
0.60
13,521
0.73
-44.85
Nissan
14,600
4.45
13,745
4.00
6.22
53,905
4.33
75,007
4.03
-28.13
Peugeot
10,513
3.20
10,918
3.18
-3.71
41,875
3.37
64,536
3.47
-35.11
Polestar
218
0.07
0
0.00
0.00
252
0.02
0
0.00
0.00
Porsche
1,576
0.48
1,792
0.52
-12.05
8,653
0.70
10,000
0.54
-13.47
Renault
10,454
3.19
11,814
3.44
-11.51
35,126
2.82
47,986
2.58
-26.80
Seat
7,138
2.18
8,216
2.39
-13.12
34,998
2.81
54,995
2.95
-36.36
Skoda
10,892
3.32
9,202
2.68
18.37
43,728
3.52
58,570
3.15
-25.34
Smart
320
0.10
126
0.04
153.97
1,030
0.08
3,868
0.21
-73.37 -21.75
SsangYong
391
0.12
395
0.12
-1.01
1,288
0.10
1,646
0.09
Subaru
272
0.08
526
0.15
-48.29
672
0.05
2,044
0.11
-67.12
Suzuki
5,424
1.65
3,812
1.11
42.29
16,509
1.33
29,731
1.60
-44.47
Toyota
19,671
6.00
17,858
5.20
10.15
73,067
5.88
86,881
4.67
-15.90
Vauxhall
19,614
5.98
27,403
7.98
-28.42
72,036
5.79
137,229
7.37
-47.51
Volkswagen
27,328
8.33
19,632
5.72
39.20
110,668
8.90
157,040
8.43
-29.53
9,147
2.79
8,803
2.56
3.91
32,184
2.59
44,348
2.38
-27.43
308
0.09
438
0.13
-29.68
1,443
0.12
2,374
0.13
-39.22
5,823
1.78
3,673
1.07
58.54
18,067
1.45
8,770
0.47
106.01
-4.43
1,243,656
Volvo Other British Other imports Total
328,041
343,255
1,862,271
-33.22 CarDealerMag.co.uk | 65
DATA FILE
SEPTEMBER 2020
LCV NEWS
New van sales increase by more than a quarter by John Bowman john@blackballmedia.co.uk THE LCV market grew by 26.4 per cent in September, the SMMT has revealed. A total of 52,096 vans, pickups and 4x4s were registered, which was up by 10,880 units on what the SMMT labelled a weak September 2019 at 41,216 vehicles, caused at the time by regulatory changes distorting the market. September 2018 saw 53,878 units shifted, giving an average of 55,788 vehicles between 2014 and 2018. This means that new van registrations were down by 3.3 per cent on 2018’s September market and dropped by 6.6 per cent on the September average between 2014 and 2018. Performance for 2020 to date is still low – down by 27.4 per cent, or almost 80,000 units below 2019 levels.
REGISTRATIONS OF NEW COMMERCIAL VEHICLES LESS THAN 3.5 TONNES Marque
Figures supplied by SMMT
September 2020 2020
% market share 35.89 11.41 11.34
12,934 5,479 3,497
% market share 31.38 13.29 8.48
7.72
4,339
10.53
7.28 6.40 3.83 3.42 3.19 3.15 2.87 0.90 0.77 0.46 0.34 0.33 0.22 0.21 0.12 0.08 0.07 0.00
4,080 2,696 2,168 896 1,557 1,172 804 745 76 183 143 152 114 77 68 23 0 13
9.90 6.54 5.26 2.17 3.78 2.84 1.95 1.81 0.18 0.44 0.35 0.37 0.28 0.19 0.16 0.06 0.00 0.03
41,216
100.00
Ford Vauxhall Volkswagen
18,697 5,942 5,910
Peugeot
4,023
Citroen Mercedes Nissan Renault Mitsubishi Toyota Fiat Isuzu MAN Iveco Renault Trucks Land Rover Isuzu Trucks SsangYong LDV Fuso Maxus Hyundai
3,795 3,335 1,993 1,781 1,661 1,641 1,493 470 399 242 179 172 117 107 62 42 35 0 52,096
100.00
Total light CV
September 2019 2019
% change
Year-to-date
68,074 20,853 22,200
% market share 32.72 10.02 10.67
-7.28
18,307
8.80
25,704
8.97
-28.78
-6.99 23.70 -8.07 98.77 6.68 40.02 85.70 -36.91 425.00 32.24 25.17 13.16 2.63 38.96 -8.82 82.61 0.00 0.00
15,929 21,893 7,560 7,502 4,137 6,316 5,670 2,558 1,630 1,689 930 934 676 312 720 155 35 0
7.66 10.52 3.63 3.61 1.99 3.04 2.72 1.23 0.78 0.81 0.45 0.45 0.32 0.15 0.35 0.07 0.02 0.00
22,477 28,862 10,030 15,081 8,866 6,149 7,252 3,726 1,050 1,994 1,056 1,066 650 510 465 151 0 77
7.84 10.07 3.50 5.26 3.09 2.15 2.53 1.30 0.37 0.70 0.37 0.37 0.23 0.18 0.16 0.05 0.00 0.03
208,080
100.00
286,616
100.00
-29.13 -24.15 -24.63 -50.26 -53.34 2.72 -21.81 -31.35 55.24 -15.30 -11.93 -12.38 4.00 -38.82 54.84 2.65 0.00 0.00
44.56 8.45 69.00
26.40
2020
2019
% change
95,018 24,652 31,780
% market share 33.15 8.60 11.09
REGISTRATIONS OF NEW COMMERCIAL VEHICLES 3.5 TONNES TO 6.0 TONNES Marque
Ford Fiat Mercedes Peugeot Volkswagen Iveco MAN Vauxhall Isuzu Trucks Citroen Renault Other imports Nissan Renault Trucks Total heavy CV
September 2020 2020
276 242 129 36 29 17 7 4 3 1 1 0 0 0 745
66 | CarDealerMag.co.uk
% market share
37.05 32.48 17.32 4.83 3.89 2.28 0.94 0.54 0.40 0.13 0.13 0.00 0.00 0.00 100.00
September 2019 2019
415 144 215 312 4 26 2 1 0 42 4 0 0 0 1,165
% market share
% change
35.62 12.36 18.45 26.78 0.34 2.23 0.17 0.09 0.00 3.61 0.34 0.00 0.00 0.00 100.00
-33.49 68.06 -40.00 -88.46 625.00 -34.62 250.00 300.00 0.00 -97.62 -75.00 0.00 0.00 0.00 -36.05
2020
923 1,056 1,033 727 132 169 40 11 6 92 8 134 0 0 4,331
21.31 24.38 23.85 16.79 3.05 3.90 0.92 0.25 0.14 2.12 0.18 3.09 0.00 0.00 100.00
-27.40
Figures supplied by SMMT
Year-to-date
% market share
-28.36 -15.41 -30.14
2019
564 1,455 1,281 1,844 60 364 63 123 13 171 53 0 2 5 5,998
% market share
% change
9.40 24.26 21.36 30.74 1.00 6.07 1.05 2.05 0.22 2.85 0.88 0.00 0.03 0.08 100.00
63.65 -27.42 -19.36 -60.57 120.00 -53.57 -36.51 -91.06 -53.85 -46.20 -84.91 0.00 0.00 0.00 -27.79
Figures supplied by SMMT
DATA FILE
SUPPLIERS GUIDE
LOOKING FOR A MOTOR TRADE SUPPLIER? YOU CAN FIND THE DETAILS OF SELECTED COMPANIES HERE Auctions & Trade-To-Trade Sales
Finance
Legal & Compliance
Vehicle Photography
Warranty Providers
BCA
Forza Finance
Lawgistics
Dealer 360
Warranty Administration Services
W: bca.co.uk T: 0344 875 3480 E: customerservices@bca.com Info: BCA’s remarketing programmes deliver volume, choice and availability for buyers, and speed, efficiency and market-leading returns for sellers.
W: forzafinance.co.uk T: 01245 245678 Info: Benefit from Forza Finance’s expertise, choice of products and lenders. Their personal approach will help you achieve higher levels of finance penetration and, ultimately, sell more cars.
W: lawgistics.co.uk T: 01480 455500 E: sales@lawgistics.co.uk Info: The legal experts for the motor trade, giving advice and support to our industry for over 15 years. Not anti-consumer, just pro-trader.
W: dealer360.co.uk T: 01270 780855 E: nicky.spratt@ukturntables.com Info: UK makers of photo booths incorporating our turntables for car, van and motorcycle dealers. Our software controls turntable and cameras – a onestop solution.
W: warrantyadmin.co.uk T: 01522 515600 E: tellmemore@warrantyadmin.co.uk Info: Unlock new profit and aftersales flexibility with Crystal Clear Warranty. Ideal for franchised dealers, groups and independents.
Automotive Ecommerce
HR & People Management
Marketing, PR & Video
Vehicle Tracking
Warranty Providers
GForces
HR Manager
OnCue Communications
Meta Trak
Warrantywise
Data
Key Control
Marketing, PR & Video
Warranty Providers
These Listings Work!
Real World Analytics
Keytracker
Marketing Delivery
Autoprotect
W: gforces.co.uk T: 01622 391904 Info: GForces delivers class-leading ecommerce solutions. We work with global vehicle manufacturers, the world’s largest dealer groups and independent retailers around the planet.
W: realworldanalytics.com T: 0808 1890 617 E: auto@realworldanalytics.com Info: We are a SaaS-based data analytics solution provider for multisite dealers. Our business intelligence tools help customers make faster and better decisions.
W: hrmanager.co.uk T: 01480 455500 E: info@hrmanager.co.uk Info: HR Manager is Lawgistics’ new digital compliance portal designed to assist employers in managing their legal obligations, responsibilities and duties.
W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: Established in 1996 and based in the UK, Keytracker Ltd provide an extensive range of key and asset management systems for a wide range of businesses.
W: oncuecomms.com T: 020 8125 3880 Info: We are a leading provider of PR, video and events services to the automotive industry. The PR team has a proven track record of securing high-value, big-impact media coverage.
W: marketingdelivery.co.uk/ T: 01892 599911 E: get.in.touch@marketingdelivery.co.uk Info: Our SocialStock helps target prospects with tailored stock remarketing and social media advertising tools, and automated lead capture for Facebook.
W: metatrak.co.uk T: 020 8867 2340 E: enquiries@metatrak.co.uk Info: Total vehicle security. Clever tracking technology, advanced immobilisation, 24/7 monitoring and an easy-to-use app. Security. Connectivity. Peace of mind.
W: warrantywise.co.uk/dealer T: 0800 001 4551 E: dealers@warrantywise.co.uk Info: Warrantywise sells over 100,000 warranties per year. Quentin Willson personally designed Warrantywise to be the UK’s best used car warranty.
More Sales For You
W: autoprotect.co.uk
T: 01279 406888 E: sales@autoprotect.net Info: AutoProtect offers a full portfolio of award-winning protection products, including GAP. We lead the market with an ‘Excellent’ rating on Trustpilot.
W: Your website address T: 020 8125 3880 (that’s us!) E: sales@blackballmedia.co.uk Info: The Suppliers Guide lets dealers find the companies they need to help them with their business. Make sure you’re here. Contact us via the above number or email address.
Finance
Key Control
Oil & Lubricants
Warranty Providers
Warranty Providers
Blue Motor Finance
Traka
Mobil™
Car Care Plan
WMS
Finance
Lead Management
Recruitment
These Listings Work!
Website Design & Digital Marketing
Close Brothers Motor Finance
GardX AD-Vantage
WeRecruit Auto
More Sales For You
Bluesky Interactive
W: closemotorfinance.co.uk/ Info: Close Brothers Motor Finance are a specialist finance provider, working with over 8,000 dealer partners to offer flexible finance solutions for car, motorcycle and LCV customers.
W: gardx.co.uk/gardx-ad-vantage T: 01243 376426 E: goforaspin@gardx.co.uk Info: The award-winning 360 service offers an engaging display of the vehicle while additionally presenting profitable F&I products to a consumer.
Finance
Lead Management
Trade Bodies
Warranty Providers
Website Design & Digital Marketing
First Response
iVendi
Ben
Momentum Warranties
Haswent
W: blue.co.uk T: 020 3005 9331 E: dealersupport@blue.co.uk Info: Blue is transforming the car finance market, making car ownership simple and flexible and providing motor traders with access to essential finance.
W: firstresponsefinance.co.uk T: 0115 946 6317 E: marketing@frfl.co.uk Info: First Response is an awardwinning UK finance company providing simple financial solutions. Get in touch and let us help increase your profits.
W: traka-automotive.com T: 0333 355 3726 E: automotive@traka.com Info: Bespoke software and electronic key management cabinets to deliver the most effective solution to dealerships to manage their keys and vehicles.
W: ivendi.com T: 0330 229 0028 E: tellmemore@ivendi.com Info: iVendi delivers a fully connected platform that engages consumers, converts buyers and manages transactions of vehicles online and in the showroom.
W: mobil.co.uk T: 0800 0857 420 Info: Whether using Mobil 1™ or Mobil Super™, Mobil™ engine oils meet or exceed the latest standards of the oil industry and vehicle manufacturers.
W: werecruitauto.co.uk T: 01603 550041 Info: Permanent recruitment – here to assist businesses within the automotive sector find the best fit for their company in terms of skillset, experience and culture.
W: ben.org.uk T: 0808 131 1333 Info: Ben is a not-for-profit organisation that partners with the automotive industry to provide support for life to its people and their families.
W: carcareplan.com T: 0344 573 8000 Info: Car Care Plan is a leading provider of motor protection products, trusted around the world to deliver quality protection with integrity and a customer-oriented outlook.
W: Your website address T: 020 8125 3880 (that’s us!) E: sales@blackballmedia.co.uk Info: The Suppliers Guide lets dealers find the companies they need to help them with their business. Make sure you’re here. Contact us via the above number or email address.
W: momentumwarranties.co.uk T: 0330 445 0059 E: support@momentumwarranties.co.uk Info: How long does your warranty company make you wait? We pay claims into your bank within 45 minutes. The most advanced warranty programme in the UK.
W: wmsgroup.co.uk T: 01844 293810 E: sales@wmsgroup.co.uk Info: Open 24/7, we offer award-winning warranty products for FCA- and non-FCA-registered dealerships.
W: blueskyinteractive.co.uk T: 01926 651000 Info: Bluesky Interactive drive dealer websites and digital marketing forward thanks to game-changing innovation, the latest technology and our exceptional relationships with our clients.
W: haswent.com T: 020 3920 6164 E: hello@haswent.com Info: Composer is a next-gen automotive platform. You have extensive stock management options, and you’ll gain a brilliantly responsive new website.
To have your details included email sales@blackballmedia.co.uk and ask for Suppliers Guide listings CarDealerMag.co.uk | 67
Changes in FCA regulation don’t have to be scary, let’s go on the journey
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Finance Compliance Funding Insight
LONG-TERMERS
THE KNOWLEDGE
SsangYong Korando Ultimate
SSANGYONG KORANDO After seven months of ‘ownership’, Ted Welford looks back on his time with our SsangYong Korando and says a fond farewell to the SUV.
A
lot can happen in seven months, as I’m sure we’re all aware. Thinking back to the middle of February, I was just picking up the keys to ‘my’ new Korando from a new dealer for the firm in Gosport – Fine Cars – and was happy to sit next to the brilliant salesman who guided me through its interior and features, shake hands for a photo and be on my way. Imagine that now, shaking hands with someone?! But just over a month later we were all in lockdown, meaning that for many weeks the SsangYong was rarely used – a very odd feeling when your job is to essentially drive and review cars. Yet, even with quite infrequent use at times, the Korando has certainly been put through its paces. It helped in a house move as soon as lockdown restrictions were eased, has been a great biking companion with its Thule roof rack and has never ceased to amaze me with the tech you get as standard. Admittedly, it is the top-spec ‘Ultimate’ trim, but it certainly lives up to that name – my particular equipment highlights being its ventilated front seats, superb digital cockpit, keyless entry and start, plus heated steering wheel. I reckon a bit more safety kit wouldn’t go amiss though, particularly adaptive cruise control and blind-spot monitoring. It’s also had some brilliant quirks, which are missed with more mainstream rivals. The ability to change the indicator and warning sound noises, for example. Do you need to do that? Absolutely not, but it’s a fun feature that kept me occupied. The ability to change the welcome message on the digital dials was also something that tickled me for days, and I apologise to whoever ends up with RJ69 MTE next, as I’ve just remembered I didn’t reset the, ahem, ‘interesting’ warning message that used to greet me each morning… And while, admittedly, the car hadn’t even covered 3,000 miles when it was returned to SsangYong, it didn’t set one foot wrong in those seven months. Not one niggle, quality issue or warning message. It was quite flawless really. You might think that should be a given from a new car, but the number of (usually premium) vehicles less than a few months old that go wrong is quite alarming. In fact, the only area where I can really criticise the Korando is its poor fuel consumption. Most of the time it was in the high 20s – something that’s poor for a sensible petrol crossover such as this. SsangYong itself only claims 35.8mpg from the automatic gearbox fitted to our car. Sure, there is the diesel, which will return a more pleasant 46.3mpg in front-wheel-drive guise, but annoyingly that’s not available with this high-spec ‘Ultimate’ grade – which is the specification I’d want if it were my money. So, I’ll remember the Korando’s brilliant interior tech and its hilarious ability to change the indicator sound – but also its stupendous thirst for petrol. Would I recommend a SsangYong Korando, though? Yes, I really would. It looks good, has an interior that plenty of rivals could learn from, is genuinely practical, and its seven-year, 150,000-mile warranty could be worth its weight in gold if you intend to keep your car for more than a couple of years.
Price (as tested): £27,995 Engine: 1.5-litre turbocharged petrol Power: 161bhp Torque: 280Nm 0-60mph: 11.8 seconds Max speed: 117mph Emissions: 162g/km CO2 MPG (combined): 35.8 Mileage: 2,855
This month’s highlight: Imagining what the next person driving this Korando will make of the modified warning message.
OTHER CARS WE’RE DRIVING
Nissan Leaf Mileage: 10,640 The Leaf performed superbly on a recent drive to London for a photoshoot.
Mazda 3
Mileage: 10,500 We’ve been racking up the miles in the Mazda and have learnt a lot about this quirky hatchback. CarDealerMag.co.uk | 69
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