Car Dealer Magazine: Issue 47 by Blackball Media

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Issue 47 | February 2012 | CarDealerMag.co.uk | £3.50

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car industrY’s biggest names predict what’s in store for 2012 p38

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Blackball Media Endeavour Quay Mumby Road, Gosport Hants, PO12 1AH T: (023) 9252 2434 W: CarDealerMag.co.uk

IGNITION.

Editorial Director James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WRITER James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor Sub Editor Dave Brown dave@blackballmedia.co.uk Twitter: @CarDealerDave ADVERTISING Manager Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds Advertising EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade Car Dealer Club sales Executive Natasha Smith natasha@blackballmedia.co.uk

Contributors Mike Jones, Big Mike, Alex Goy, James Litton, Tim Naylor, Tim Smith, Martin Hill, Tim Heavisides and Jonathan Such

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You can pay by credit or debit card on our website – visit CarDealerClub.com – or send us a cheque to the address above made payable to ‘Blackball Media Ltd’. Subscriptions include membership to Car Dealer Club. Members get free legal advice worth £195 a year as well as access to a host of discounts from key motor trader suppliers.

Distribution

Car Dealer is distributed to a database of up to 12,000 franchised car dealers, independents, service and repair sites, car manufacturers and suppliers. Advertisers are supplied with a print certificate for the latest issue with all invoices.

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Company No. 6473855 VAT No. 933 8428 05 ISSN No: 1759-5444 Car Dealer is published by Blackball Media Ltd (Company No 6473855) and printed by Warners. All rights reserved. Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Car Dealer is fully protected by copyright and nothing may be printed wholly or in part without permission.

hates it when I get Welcome. Batch ‘an idea’. It normally involves

lots of emails, stress, and a headache. And this month’s cover story was the recipe for the perfect migraine-inducing storm. As a regular reader of Car Dealer you’ve probably guessed we like to do things a little differently. So when I floated the idea of putting people on the cover, instead of a car, for the first time it was met with a muted response. But then these weren’t going to be just any people, I explained – I wanted to get together 10 of the biggest names in the motor trade, those in positions of power with a direct ability to influence the automotive world. I mentioned some names and the team warmed to the idea (they had little choice). My plan was – in my mind at least – a simple one: Quiz the business leaders and find out what they really think 2012 holds for dealers. We’ve all been watching the news and hearing the rumours – that this year we’d slip back into recession. I wanted our interviewees to answer five simple questions that couldn’t be spun, or manipulated, but simply got their opinions on the points that really mattered. SHOOT It was no mean feat getting these guys together either. We wanted all 10 to be at our photoshoot and as you’ve seen on the cover, two of the top 10 had to pull out. That said, eight top-level chief executives, chairmen and MDs of some of the UK’s most forward-thinking firms isn’t bad going, is it? The shoot was arranged for the second working day back after the festive break at the SMMT’s new headquarters in Westminster. One by one our influencers arrived for their date with our snapper Matt. All interviews had taken place before the shoot so they knew they wouldn’t be grilled, which put most of them in a relaxed mood. I spent the first 40 minutes chatting to Pendragon boss Trevor Finn. He’d arrived two hours early and in between showing me projections on his iPad and fielding calls from people trying to sell him Porsches, he was amazingly open

and candid. His stories could fill a book, but it was his enthusiasm for the trade and for cars that really struck me. Finn is a petrolhead – just the kind of dealer we like to cater for with Car Dealer – and he told me how much he enjoyed poring over the latest cars in the mag. As the other influencers trickled in, I got the chance to chat with all of them over tea and biscuits. Tony Whitehorn, boss of Hyundai UK, joked about me trying to catch him out for a story. ‘It’s funny, James,’ he said. ‘When I read your pieces I never quite remember saying what you say I said.’ ‘That’ll be the wine I’ve plied you with first,’ I replied. Peugeot’s Tim Zimmerman told me about his time in China and the surprising similarities between retailing there and in the UK, while Toyota’s Jon Williams seemed delighted to just be back at work. But it was Mark Terry, Chevrolet boss, who arrived at the shoot on his day off that really impressed. That’s dedication to the Car Dealer cause for you! It was amazing to get together some of the industry’s mosttalented brains and hear their opinions. And, to be honest, I actually feel a lot more positive about our prospects for 2012 now, than I did before chatting to them. I hope you do too. Profit Clinic Just before Christmas we held our first ever Profit Clinic at the Heritage Motor Museum, Gaydon. The day was a huge success with seven speakers – including headline sponsors Car Care Plan and Google – giving advice to more than 100 delegates on how to keep profits up in 2012. For those of you that didn’t make the event, their advice is detailed in our special report which starts on p55. I hope you enjoy the issue – believe me, a lot of work has gone into this one… Now to find Batch some Alka Seltzer.

James Baggott, Editor

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INSIDE. ISSUE 47 I February 2012

Influencers The biggest names in the motor trade come together for Car Dealer

dashboard New Car Dealer Club legal team 08

70 14

launch night

How to organise a good one

Detroit show

Our picks of US showcase

‘‘ 34

Korean’s new D Segment challenger

Detroit show stars

Car Dealer scores dealer a deal

That Was The Month

Renault’s shock cuts

Mitsubishi’s new dealers

Finance

Around the World

Big Mike

Taiwan’s big ambitions

forecourt

It was the timing of Renault’s decision that was wrong.

Kia Optima

DVLA cuts could be good news

Firm axes dealers and slashes range

Kia Optima

Toyota Avensis

Porsche Panamera 4S

Volvo V60

features Automotive Influencers

Profit Clinic: Full report

DATA FILE Top Tips: Planning a launch night 70

Profit clinic

Report from our big event

a month in A picture...

Right Click

Auctions

Net Gains

The Statistics with Motors.co.uk

Suppliers Guide with Alex Goy

Trader Directory with James Litton 86 Jobs

Time Is Money

It’s quite possibly the creepiest family photo you’ve ever seen, and for that reason alone it was the only snap that could make our Month In A Picture slot. That’s the Car Dealer crew there that is, at the end of the Profit Clinic in December. After weeks of preparation we were so relieved it went off with a bang that we thought a family portrait would be a nice way to mark it. So here it is. Strange or what?

CarDealerMag.co.uk | 05

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feedback. Your comments via email at james@blackballmedia.co.uk | From our website at CarDealerMag.co.uk | And from Twitter: Follow @CarDealerEd

Renault – right or wrong? bit.ly/Dealersaxed IT’S great to see a manufacturer taking a pragmatic approach to their range in the UK and culling slow sellers which don’t generate sufficient sales to justify their existence. Dealers have to dedicate showroom space to them, invest in point-ofsale materials and run demonstrators, while salespeople need to learn the intricacies of the ranges and options. All this takes focus away from the core profitable models. Gavin Jacobs, via email Car Dealer report, p18

Ampera orders now open

bit.ly/AmperaSales WITH only 23 specialist centres having access to the model it is in danger of becoming a white elephant. People who are interested will want to go to their local Vauxhall dealer and look at it, and out of their network of over 400 sites less than six per cent will actually sell this eagerly-anticipated new car. Surely this defeats the object of a halo model to build excitement around the brand and drive traffic into showrooms? James Williams, via email

Saab files for bankruptcy

bit.ly/SaabBankrupt NOW the Saab saga is finally at an end, where does that leave dealers when valuing a part-exchange? There are already stories of unavailable parts, and the new 9-5 in particular has a parc of a few hundred cars so no aftermarket products are going to be available to keep them running when they go wrong. When MG Rover shut its doors, values plummeted and book prices didn’t keep up, and according to my well-thumbed guide I should be

twitter comments

What does Twitter think of the cars of the Detroit motor show? I’ll break the mould and say Smart For-Us is my favourite. Concept is daft, but more styling hints for the next ForTwo. Looks suitably fresh. Via @antonyingram No electric motor please, but want to do a road trip in E-Bugster based VW Beetle Speedster more style than a Mini Roadster. Via @RacingPuma Lexus LF-LC my favourite but only if it leads to a production model. Some show car folly but stunning-looking concept. Via @bspoke32 Got to be the awesome Honda NSX – could be the hero car that adds a little sparkle to the Honda

able to ask over £10k for a mid-spec three-year-old 9-3 diesel saloon. I wonder if the person who wrote that entry would like to come and actually try and sell the one I have for me, 20 per cent commission if you can get book retail for it! Linda93, via CarDealerMag.co.uk

Fast-chargers for m-ways?

bit.ly/Fastchargers Great news that Nissan are being so proactive

range again. Via @Steve_Carman We’re finding Detroit interesting, but then there’s some Ford and Kia stuff happening. Via @Hendy Group Detroit round-up, p14-15

in supplying charge points. I love the Leaf’s ride quality, but I would challenge any motoring journalist to do a write-up on the Leaf without majoring on the range problem. We all know the purpose of an electric car – used for short journeys, the Leaf is fantastic. Ron Gwilliams, via CarDealerMag.co.uk

Contact the editor (see p3) with your views on the news for inclusion here

MY CONFESSION

‘Full tour’ was caught on camera I AM a salesman at a large franchised dealership. As you can imagine, my days are spent trying to look busy for the dealer principal and chatting up the receptionist. I used to ‘do quite well’ with the girls at the dealership, so when we had a temp to cover holidays, I set about getting more acquainted with her. She was only there for two weeks so I had to move pretty quickly. I couldn’t be bothered with trying to play the game, I had to score from the kick-off! I took her out for lunch on her second day and made my intentions very clear with one of my onion rings and a chip… by the look on her face and the way she smiled, my experience told me it

was definitely on the cards! On the Wednesday, we went out for a drink after work. Things got pretty intense and I started to think that I had bitten off more than I could chew (not literally). As soon as she’d had a drink, or five, she was almost scary. Anyway, on the Friday, I was working late and she decided to sit at my desk until I was done with my paperwork. I couldn’t have planned it better as everyone else walked past saying goodnight and left. It was down to just me and her and a big old showroom… She said she had never been in the dealer principal’s office and asked to see it.

I couldn’t believe my luck. We locked the doors and I took her upstairs. I gave her the ‘full tour’ of the office, the desk, the chair, the floor etc. Anyway, on Saturday morning, my sales manager called me into his office for a chat. He said, ‘you know we have security cameras here, don’t you?’ ‘Yeah, course!’ I said. ‘And you know the DP has had one put in his office now that the safe is in there, right?’ ‘Ah, no...’ I replied in a very sheepish voice. He told me he had deleted all the footage from the night before and not to worry, but just to never, ever do anything in HIS office. DH, Lancs CarDealerMag.co.uk | 07

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New legal team joins our club

Car Dealer Club is new and improved for 2012 with the signing of a new legal team to assist you and a new manager to look after members

etting the right legal advice is vital when problem customers return to your dealership. Whether you’re running a busy franchised site or an independent outlet, problem cars cost money – and ultimately hit profits. No dealer wants to turn away a customer without help, but we all know many can be extremely unreasonable. And it’s those unreasonable and demanding customers who quote Sales of Goods Act this and trading standards that at you, which our Car Dealer Club legal advice line was designed for. Our popular club already boasts hundreds of dealers among its members, but for 2012 we’ve improved the offer even further with the signing of a brand new legal team and new club manager. Lawgistics, a well established and popular motor trade legal firm, have just signed up to man Car Dealer Club’s legal advice line. So what’s the club all about? Well, for just £34.99 members receive a full year’s subscription to Car Dealer Magazine, as well as access to a whole host of exclusive offers and discounts from suppliers. Without doubt, though, the biggest draw is the free legal advice. A phone call – to a lawyer who knows the motor trade inside out – is available to all members. Whether you need advice on where you stand legally with a customer’s broken down motor, or just want to know if that blown head gasket could land you in court, the club’s legal team is on hand to help members when they need it. Lawgistics have a simply cracking offer. As well as the free advice line, members also receive a free subscription to the firm’s basic membership package. This gives you access to the highly-experienced team of lawyers and advisors, and also entitles you to legal guidance notes, document templates and personalised motor trade stationery.

EXPERTS

Established 10 years ago, Lawgistics are extremely experienced when it comes to helping dealers with legal matters. With more than 1,000 clients on its books, the firm, first set-up by David Combes and Dennis Chapman in 2001, has a reputation for assisting the motor trade with customer complaints, health and safety requirements, trade-to-trade problems, debt recovery, employee issues and much more. ‘David and Dennis ran and worked for a successful legal consultancy firm for more than 20 years, specialising in trading standards and consumer advice, before they set up Lawgistics,’ explains Joel Combes, the firm’s sales and marketing director. ‘The two directors saw a change in the automotive market’s legal needs and the issues dealers had 08 | CarDealerMag.co.uk

20 years ago are very different to the ones now. Cars have become more reliable, but sadly, more complicated when they develop a fault. Customers and employees are better informed of their legal rights and the Trade Descriptions Act has been replaced with the Consumer Protection for Unfair Trading Regulations. ‘It used to be about mis-describing, insurance write offs and consumer credit licence requirements, now it is has very much turned around to unfair dismissal allegations, employee time-off issues, distance selling and credit card fraud problems and detailed correspondence with customers about their right to reject rather than repair. ‘We strongly recommend any dealer selling, servicing or repairing vehicles takes a close look at their stationery, systems and procedures to ensure the best defence when dealing with a potential claim from employees and consumers.’ Lawgistics have a team of experts who can help in all areas dealers might be affected on, and have a healthy band of clients. ‘We’ve got more than 1,000 clients who use different products – ranging from large dealer groups to smaller independents,’ added Combes. But that doesn’t mean Car Dealer Club members will miss out – the free legal advice line can be used at any time and Lawgistics’ team will give honest and frank advice to help you out. But why offer it free? Well, as legal cases go, they can often get complicated and need further action. If you decide that you want Lawgisitics’ help, above and beyond the free advice, then reasonable fees will be discussed between you and the team. That said, if all you need is the free advice – or someone to bounce a problem off – the members’ advice line is all you’ll ever need. Combes adds: ‘If you asked what the biggest problem discussed on our helpline is, it would be employment law as this can be very costly. But it is about getting it right in the first place, which is why we think dealers need a partner who is not only reactive, but also proactive in looking at problems before they happen and what can be done to prevent them. ‘Sometimes dealers can be scared to contact a solicitor because they think it will mean a large bill coming their way. But, with Car Dealer Club membership, a dealer can pick up the phone to us in the infancy of a problem and it won’t develop into an issue. Because of this, we find we get great results, and the majority of our cases will not go to court. They get nipped in the bud at the start.’ To become a member visit CarDealerClub.com or call membership manager Natasha Smith on (023) 9252 2434 who can take payment over the phone

For more information about Car Dealer Club visit our new website CarDealerClub.com

‘‘

With Car Dealer Club membership, a dealer can pick up the phone to us in the infancy of a problem and it won’t develop into an issue. It can get nipped in the bud at the start. Welcome

Meet our Car Dealer Club manager... As Car Dealer Club has expanded we’ve had to expand our team to cope too. Meet Natasha Smith – she’s in charge of looking after all our members’ interests. Any membership enquiries can be directed to Natasha – simply call the office on (023) 9252 2434 and she’ll be happy to help. She has been instrumental in arranging our new legal partner and here she explains what it means to members. ‘Car Dealer Club members get Lawgistic’s basic membership – worth £195 – free of charge,’ she said. ‘This entitles you to guidance notes written by Lawgistics’ legal experts, document templates, personalised stationery, legal updates and specialist motor trade legal advice. Not to mention the important bit – a free consultation phone call with Lawgistics’ legal team for advice when you need it.’

There are also a host of other exclusive offers and discounts available to members including discounts on advertising your cars on Exchange & Mart, a business doctor, and much more. ‘This month we’ve also produced a brand new membership handbook which details all the benefits of being a Car Dealer Club member,’ explained Natasha.’ For the full details of the new deals you can also log on to our new website at CarDealerClub.com to find out more. If you have any questions about membership, or the new legal offer, contact Natasha on the number listed before or email natasha@blackballmedia.co.uk. Membership of Car Dealer Club is £34.99 per year. You can pay on the club website, call Natasha and pay by credit or debit card over the phone or send us a cheque to Blackball Media, Endeavour Quay, Mumby Road, Gosport, PO12 1AH. We look forward to welcoming you to the club! CarDealerMag.co.uk | 09

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CBE for Nissan’s Trevor Mann bit.ly/MannCBE

DVLA offices’ demise could give a boost to franchised dealers T

of reasons, cannot access these channels or who choose not to. ‘This means making them available as self-service facilities – where the customer can carry out driver and vehicle transactions electronically using their home internet or telephone. ‘Or through one or more intermediaries potentially available through a range of outlets – these will allow customers to transact with the DVLA through a front office counter service provider who will make facilities available and help the customer use the DVLA’s electronic services.’ Everitt believes this is a great opportunity to add value to the offering of the franchised dealer network and has urged dealers and manufacturers to consider the possibility of providing customers with this service. Automotive Influencers, p38

Raft of new dealers appointed by SsangYong SSANGYONG Motor UK has announced it has appointed a wave of new dealers across the UK. New appointments have been made at Hereford, Wolverhampton and Rustington, and three dealerships that were previously service agents have also taken up the new car franchise to represent the marque in Lutterworth, Leicestershire, Larkfield, Kent and Strabane, County Tyrone, Northern Ireland. Paul Williams, CEO of SsangYong Motor UK, said: ‘We have worked really hard over

warranty wonders

The innocuous little word that can cause you trouble

Functions could be transferred, says Everitt he DVLA’s consultation to close local offices around the UK is sad – but it could be an opportunity for dealers. That’s the opinion of SMMT chief executive Paul Everitt who thinks the review of the role of DVLA offices could be an opportunity for the motor trade. Everitt told Car Dealer that although the potential closures would be sad news, some of the functions offered at the offices could be taken up by franchised dealers. ‘Reading the consultation document more closely reveals that the DVLA seems open to let what they call intermediaries take on some of the jobs DVLA offices do,’ Everitt explained. ‘It would obviously be very beneficial for dealers to be able to offer customers the option to re-tax their vehicle or change their cherished number plate in their showrooms.’ The DVLA plans to make the current services available at local offices available online, but it admits that won’t suit everyone. In its consultation document, it says: ‘The DVLA recognises that there is still potential for growth in existing electronic services. There are those who, for a number

Heavisides

the past few months to talk to as many prospective dealers as possible, and this is really paying dividends. ‘Of course the market is testing, but in many cases we’ve been leaning on an open door and people are only too keen to meet. ‘The SsangYong heritage for producing well engineered, reliable and honest vehicles, the great press reception to our new Korando crossover and our five-year limitless mileage warranty, are all reasons being cited.’

t’s strange how an innocuous word can land you in a heap of bother. For politicians it’s nothing new, but now retailers and car dealers seem to be in hot water over what seems to be the simplest way of describing an offer to customers. For the Advertising Standards Agency and the Office of Fair Trading, the word ‘free’ doesn’t necessarily imply what it first suggests and both John Lewis and Carcraft have come a cropper when using it. The Carcraft case is ongoing, so it would be inappropriate to comment, but the ASA ruled last month that John Lewis couldn’t describe their two-year warranty on computers as ‘free’ as essentially customers couldn’t have opted out of the extended cover and bought the product without the second year’s protection. It’s a curious state of affairs when you can’t describe something that comes at no extra cost to a customer as free simply because conversely it doesn’t provide an opportunity for a saving. Of course, that’s not the end of it because the ASA has now set a precedent which will invariably impact on the car industry too. You can see that dealers soon won’t be able to advertise their cars as coming with a free warranty, free servicing or free insurance if they bundle the product into all their sales. Instead we’ll be in the silly position of having to devise a form of words that means the same thing to customers but is more convoluted to avoid the legal wrangling from the nit-pickers. I’ve no doubt that legally the ASA is correct but common sense has clearly taken a back seat once again to pacify the lawyers and it’s a situation which does nothing to make things simpler or easier for the customer. For our market, it’s obvious that we’ll need to be careful around the wording we choose in our adverts and we’ll see a lot more features ‘included at no extra charge’ instead of being ‘free’. We’ll be compliant but it’s hardly progress, is it?

‘It’s a situation which does nothing to make things simpler or easier for the customer.’

Profit Clinic reports start, p55

Who is Tim Heavisides?

Heavisides is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products. CarDealerMag.co.uk | 11

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Detroit show’s top debuts Jamie Edmonds rounds up the stars of US event

etroit may not have the draw it once did – but still a number of manufacturers used the first event of the year to showcase new models. The biggest news came from Ford, who debuted the Fusion. Don’t be confused by its American moniker – this is the new Mondeo (1). In line with the maker’s ‘One Ford’ policy it will be a global car – like the Focus and Fiesta before it – with minimal changes made between the US and European versions. The design has clear links to the current Mondeo, with the front having more than a hint of Aston Martin to it. Powertrains will be familiar 1.6litre and 2.0-litre turbo petrol and diesel engines, with a hybrid petrol powertrain for the US which may make it to Europe. The car is slightly longer and taller than the current model, and fractionally narrower. We just hope that in developing the car to suit US tastes Ford hasn’t diluted the Mondeo’s exemplary handling and ride balance. We will find out nearer

the UK launch in early 2013. Mercedes pulled the wraps off the next generation SL (2), the sixth generation of the iconic sports car. Made predominantly from aluminium, it shaves up to 140kg from the previous model’s weight, while redesigned engines deliver up to 29 per cent better fuel economy with more power to boot. As you would expect, the SL is packed with safety features and technology, making it, Mercedes claim, ‘the safest roadster ever made’. It will go on sale in the UK in July with UK specifications and prices to be confirmed nearer the time. Porsche chose Detroit to debut the convertible version of its 991 generation 911 (3). The car keeps its traditional folding cloth roof and shares its basic aluminium and steel structure with the coupe. Magnesium is used in the roof structure to keep weight down. As with its hard top sibling the car is significantly lighter than the 997 predecessor. With the same range of engines, and seven-speed manual and PDK transmissions as the Carrera coupe, it promises to be an exhilarating drive. Prices will start at just under £80,000 when it goes on sale in March. Buick launched its first small crossover at

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the show, the Enclave. This car, with a different grille, will be coming to the UK in late 2012 as the unusually named Vauxhall Mokka (4). Aimed at the Nissan Juke, Mini Countryman and the upcoming Fiesta-based Ford EcoSport, the Mokka will be available with two and four-wheel drive and petrol and diesel engines. Bentley’s eagerly anticipated four-litre V8 powered Continental GT Coupe (5) appeared in full production form for the first time. The new twinturbocharged engine, built in Crewe using Audi’s FSi technology, delivers a 40 per cent improvement in fuel economy and CO2 emissions over its W12powered stablemate. Ideal for the Premiership footballer with a phobia of filling stations, the V8 can travel more than 500 miles on a tank while still developing 500bhp and covering the 0-60mph sprint in 4.6s. One of the undisputed stars of the show, though, was Honda’s NSX concept (6). Developed by design studios in California and Japan and powered by a direct injection VTEC V6 engine mated to an electric motor, the new NSX promises to offer supercar performance with an environmental conscience. The concept is expected to go on sale in the next three years.

Fiat increases its stake in Chrysler Group bit.ly/FiatChrysler

The stars of the Detroit motor show

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redictions for 2012 car sales make pessimistic reading with registrations likely to remain 20 per cent lower than 2007 levels. However, with a smart aftersales strategy, a dealership can turn the changes in today’s car ownership landscape into genuine profit and retention opportunities. At least that’s the opinion of automotive specialist Bamboo Marketing. The firm says marketing budgets and operating costs are already under serious scrutiny. But they believe there is a solution that allows your dealership to stay lean, be fully committed to its core business and capitalise on opportunities. Steve Tweedle, MD of Bamboo, said: ‘Shrinking vehicle parcs mean customer retention is now imperative rather than a luxury, yet daily challenges faced when running a dealership can prevent a consistent approach. ‘People are keeping vehicles longer and now have a different mind-set in relation to after-care. ‘With the right approach, we can ensure that a

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dealership capitalises on this and gains a bigger share of a changing market by outperforming the competition.’ So how can Bamboo help? ‘Put simply, we offer effective strategies, take responsibility for implementation and offer guaranteed results. Our teams are dedicated, focus on maximising customer spend, satisfaction and loyalty to your business. ‘We have the luxury of focusing on this one area and being very good at it, proactively contacting your customers, booking all events due including service, MOT, end of contract, end of warranty, and more. ‘Calling 66 hours per week ensures we book these events before customers consider looking elsewhere. We’re experts at generating intelligence and insight from your database, reactivating lapsed customers, ensuring retention via service plans, extended warranties and loyalty programmes,’ added Tweedle. ‘We think a dealer’s most valuable asset – their customer base – shouldn’t be entrusted to anyone other than a true professional.’ To find out more visit bamboomktg.co.uk or phone 01905 670870.

MOT

PROMOTION

CHINESE WAY

Car Dealer helps dealer bag Great Wall franchise A FAMILY-owned business has just been awarded a Great Wall franchise – thanks to Car Dealer Magazine. Chepstow Car Sales has been given the opportunity to represent the Chinese maker – a process that started after the dealership’s director picked up a copy of Car Dealer. ‘I read the cover feature and learnt all about Great Wall and its hunt for new dealers,’ Richard Axford, Chepstow Car Sales’ director told us. ‘After reading the feature, I applied and just before Christmas we were awarded the franchise.’ Car Dealer featured the Chinese maker and its plans to enter the UK market in Issue 37 (April 2011). We also published first drives of the Great Wall C30 and Steed pick-up, and interviewed Great Wall’s UK boss Paul Hegarty. ‘It was that feature that got me interested and has led to where we are now. We are absolutely chuffed to bits; we will be receiving two showroom cars and two demonstrator versions of the Steed pick-up, and our dealership signage shortly.’

IT DATA

MYSTERY SHOP

SERVICE BOOKINGS

CRM

CSI

SERVICE PLANS

RETENTION MINEFIELD?

WE RETURNED £23.74 FOR EVERY £1 DEALERS SPENT WITH US* For your guide through the mineﬁeld contact us: 01905 670870 *Average of dealer group results for Q3 2011

16 | CarDealerMag.co.uk

Vauxhall opens order book on Ampera bit.ly/AmperaSales

The month, digested

December is usually the quietest month, so here’s a briefer than usual summary DECEMBER 15 - JANUARY 13 BMW revealed the 6 Series Gran Coupe. The four-door 6 appears this year, probably with a £2k premium over the 6 Series Coupe. Skoda produced the 1.5 millionth secondgeneration Octavia. The landmark car was a Greenline II Estate. Audi released a new ‘lead-in’ diesel version of the Q7. The 201bhp 3.0-litre V6 diesel emits 189g/ km and returns 39.2mpg. Dealer group Heritage saved 17 local jobs after purchasing Loders Motor Group. Car rental firm Avis took delivery of 100 MG6 GT fastbacks. It’s the British marque’s first big order of this kind. CAP named the British-built Nissan Qashqai as the used car of 2011 for the second year running from a shortlist of six models. Renault revealed the 21 dealers who are charged with the task of selling the French firm’s electric vehicle range. Nissan opened the order books on a special version of its X-Trail. Just 200 examples were

Volvo’s plug-in hybrid concept of its XC60 SUV, left, and right, Nissan’s Qashqai made available. Volkswagen announced it intends to make production 25 per cent more environmentally friendly by 2018. Volvo revealed a plug-in hybrid concept of its XC60 SUV. Its petrol engine develops 280bhp while an electric motor produces 70bhp. The car will return 100mpg. Prices for Volkswagen’s new CC were

announced. It’s a revised model and prices start at £24,200. Citroen, Peugeot and Toyota showed off new versions of their C1, 107 and Aygo models. Renault freshened up its Megane range with new looks and a new engine which returns 80mpg. Alfa Romeo announced 2011’s registration figures were the highest since 2002.

CarDealerMag.co.uk | 17

DASHBOARD.

Renault wields axe

In a hammer blow to its network, the French firm has slashed its model range and sales forecasts for 2012 – and sacked a third of its dealers. James Baggott reports

hristmas: A time of peace and goodwill to all men. At least that’s what you’d like to think. Unfortunately someone hadn’t sent Renault the memo. Just days before the motor trade was due to break up for the festive season, the firm dropped a badlytimed bombshell on its network. Not only would it be taking the axe to a swathe of models, but it was also cutting sales forecasts for 2012 and, worse still, firing a third of its dealers. The news came as a shock to the industry, and as an absolute hammer blow to its loyal network, delivered as it was, just a few days before Christmas. Renault said it had taken the difficult decision because its dealers just about broke even in 2011 and with its new car sales expected to drop from 75,000 to 50,000 in 2012, the network size simply wasn’t sustainable. At the same time, the manufacturer announced it was immediately axing the entire Laguna range, Espace, Grand Espace, Modus and Grand Modus. Also getting the chop was the Wind Roadster, Kangoo (car) and, as Car Dealer exclusively revealed on our website, all Gordini models too. But it wasn’t that I had a real problem with. Most of the cars were pretty poor anyway and needed to be binned a while ago. In fact, I think the tough decision was to be applauded. However, what I did take issue with was the way the news the maker was firing 55 dealers, cutting the network from 190 to 135, was announced. On Thursday, December 15, Renault dealers gathered for the annual conference where MD Thierry Sybord laid his plans bare. It wasn’t an easy announcement to make, but one that received mixed reaction. The press was told two days later. Some dealers contacted us in amazement at the news was dropped when it was, questioning why Renault couldn’t have let them and their staff enjoy Christmas, and be given the news in the New Year. No sackings were to happen immediately so what difference would a few days make? Others told me it was the ‘best dealer conference’ they’d ever been to. One chief executive said: ‘It needed to happen. Some other manufacturers need to take Renault’s lead and do the same. It was difficult to do, but at least they were honest.’ Thankfully there was some good news for 18 | CarDealerMag.co.uk

those Renault dealers that did escape the axe. Firstly, the French firm announced it would launch Renault 4+ – a four-year/100,000-mile warranty, four years/48,000 miles free servicing, four years’ roadside assistance, and four years’ finance. It will be available on all models in the updated car and van range. There was also news on some key products on the way to replenish the diminished range. This month the new Twingo arrives, February the new Scenic, and March the allelectric Twizy rolls in. A new Megane will appear in April, said the maker, the electric Fluence ZE in May,

‘‘

the electric Zoe in October, the all-new Clio 4 in November (potentially a huge seller), and the Dacia Duster and Sandero in December. In a further boost, Renault said all remaining dealers will sell Dacia models and the entire network will be set up to sell its electric model range by 2013. ‘Currently we have 20 dealers selling the Kangoo ZE, our first electric model, but by 2013 all remaining dealers will be EV retailers,’ said a spokesman. ‘We will also be introducing Dacia at the end of this year and all dealers will be selling these too.’

Dealers may have kept the news to themselves for fear of losing staff.

ANGRY BLOG Car Dealer reported on the shock

Read the editor’s blog slamming Renault by clicking here bit.ly/renaultblog

moves online and in a blog I slammed the maker for what I thought was disastrous timing. It read: ‘Times change, products fall in and out of favour, and brands lose their appeal. Sadly, Renault has suffered the fate of all three. ‘What I have got a problem with is the fact Renault delivered the news just a few days before Christmas. And before you tell me “that’s business”, well hear me out – it’s quite frankly not business at all. ‘Business is about personalities, it’s about relationships, it’s about lives – and there are now a damn sight more people out there entering the Christmas period with an almighty cloud over the heads.’ The blog prompted a Renault spokesman to schedule a visit to our offices in early January to explain why it made the decisions it did.

‘We appreciate the timing wasn’t ideal,’ said the spokesman. ‘But the dealer conference was always planned for the end of December and that’s when the message had to be given. ‘You said in your blog that dealers weren’t told, but that’s not true – all dealers were told – it’s just the people you spoke to might not have known. Some dealer principals may have kept the news to themselves for fear of losing good members of staff.’ When the news broke the Car Dealer team contacted 10 Renault dealers and not one of the staff members we spoke to knew about the models being axed or that some dealers were getting the boot. Frankly it got a bit embarrassing that we were the ones telling them what was going to happen. ‘We thought long and hard about a gap in between telling the dealers and the press, but it would have got out,’ claimed the spokesman. ‘As it happened, we told the dealer conference on the Thursday, then announced it to the press on the following Monday. This was a huge decision that had to go to the very top at Renault. It was always going to be difficult.’ The PR boss said the dealers that got the chop were mainly because their territories overlapped with others and with the firm’s sales forecasts drastically cut, the brand simply couldn’t support its current network numbers. ‘Dealers just about broke even last year,’ said the spokesman. ‘Clearly it couldn’t continue that way so action had to be taken. The dealer council supported our moves.’ During the meeting I explained that I categorically thought the timing of the decision was appalling. I said I felt it was wrong to give dealers, who had loyally represented the brand for years, the devastating news when it did. In a market where new car sales are expected to be static this year, and possibly for a few years to come, Renault may have been the first to slash its network, but it quite possibly won’t be the last. As one dealer group chief executive told me: ‘With sales falling how can some manufacturers sustain the networks they have? There simply aren’t enough new car sales to go around. It’s only a matter of time before another manufacturer takes an axe to its network.’ A chilling thought, but one that could all too easily become reality... [CD] James Litton, p86

MoDEL CULL

Laguna

Espace

Modus

Wind CarDealerMag.co.uk | 19

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DASHBOARD.

Renault appoints new sales director bit.ly/Renaultdirector

Mitsubishi takes the EV route with all its franchised dealers Extensive training programme will teach staff all they need to know

itsubishi has announced all its franchised dealers are to become fully-functioning EV centres from this month. By the end of March, the approved dealerships will have two fully-trained EV sales personnel as well as aftersales technicians. The announcement comes ahead of the arrival of the firm’s first plug-in hybrid technologies within the next 18 months. Lance Bradley, Mitsubishi Motors’ UK managing director, said: ‘The Pure EV i-MiEV has now been a reality for the last year with lots more new plug-in hybrid technology and vehicles to come to the UK soon. ‘Our dealer network will provide excellent service and be able to offer the best advice to our retail and fleet customers. ‘Staff will undertake an extensive training programme so that there is a very clear understanding of the demands and requirements of electric vehicles for consumers, as well as an awareness of the wider industry issues relating to the EV marketplace. ‘Their after-sales departments will also comply with compulsory

Vertu delight at new deal VERTU has bought the trade and certain assets of Vauxhall dealer W Grose Northampton Limited for £2m. The deal, which sees Vertu’s outlets grow to 80 franchised and three nonfranchised sites around the UK, went through on January 9. Robert Forrester, CEO of Vertu, said: ‘We are delighted to expand our operations in Northampton. This is our 11th Vauxhall dealership and reflects the growing scale of our Vauxhall operations.’

MAZDA

manufacturer training and require specialist tools to enable the service and maintenance of electric vehicles,’ added Bradley. All Mitsubishi EV Centres will have Mitsubishi i-MiEV demonstrator vehicles that will be available for customers to properly test and

experience over a prolonged period. This, says Mitsubishi, will make them the largest EV dealer network in the UK providing sales and aftersales coverage. The Japanese firm has also announced two more dealers to join its network. Dews Motor Group – which was established in 1910 – covers the Huddersfield and Halifax territories, and has chosen the Mitsubishi Motors franchise because of the 4×4, EV and plug-in hybrid offering. Meanwhile Riverside Mitsubishi, pictured left, in Doncaster opened its doors on January 9, and will provide sales, service and parts.

Service and satisfaction win award for Smithy Garage MITSUBISHI UK has announced that their ‘Dealer of the Year’ for 2011 is Smithy Garage based in Gwynedd, Wales. The award was presented to John Roberts, a director of the franchise at Mitsubishi’s annual dealer conference, which took place at the Celtic Manor Resort in Newport in December. Smithy Garage won the award for its excellent levels of customer service and satisfaction. The Japanese manufacturer assesses their dealers based on real-time feedback from actual customers. The Gwynedd-based business has held a maximum five-star rating in the Mitsubishi Motors Customer Service Score programme since its launch in

EXPANSION

June 2011. This means that between 95 per cent and 100 per cent of their existing customers would recommend Smithy Garage to their family and friends. Roberts said: ‘It’s always a pleasure to receive any award and Mitsubishi

Dealer of the Year is a tough one to get because the competition is so good. As owners of the business, we know that this can only happen with the dedication and professionalism of loyal staff.’ Mitsubishi Motors’ UK managing director Lance Bradley, pictured, said: ‘Smithy Garage has always been a strong advocate of “Excellent Service” and they have been ambassadors for the brand for many years. ‘The service they offer inevitably results in strong sales and after-sales success, with very happy customers returning to them time after time.’

Business will keep growing BORDER Cars has acquired Ayr Mazda from Glen Henderson. The dealership took on the Mazda franchise in 2009 and has delivered strong volumes since its opening. Brett Hague, Mazda UK’s senior manager, franchising and network development, said: ‘Glen Henderson has done a first-class job for Mazda. ‘Now, with Borders Cars adding Ayr to its well-established Mazda portfolio, we have another experienced and well-respected company who will help the Mazda business grow further.’

TRADE-SAFE

Scheme gives peace of mind CAR dealers can play it totally ‘safe’ with payments thanks to the online used car trading network Autotrade-mail. The UK’s leading online used car trading network has introduced ‘Trade Safe’, a peace-ofmind payment scheme that is recommended by police and safeguards the interests of both buyers and sellers alike over a vehicle transaction. CarDealerMag.co.uk | 21

IT AIN’T ROCKET SCIENCE

A STREAMLINED, FLEXIBLE AND HASSLE-FREE ONLINE SERVICE BOOKING SYSTEM. GForces’ NetDirector Service Booking removes the need to speak to a service advisor, enabling customers to conveniently book online by entering their registration details, choosing their nearest branch and adding any additional options. For example, MOT, oil change or air-con recharge. Customers can also define which type of transport options they want – collection, delivery or ‘while you wait’, and can even book a courtesy car. The system shortens the service booking process for dealers and reduces admin costs. The system is fully flexible and boasts an array of benefits for dealers: f Active 24-7

f Offers full reporting

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Call GForces on 0845 658 9290 or visit www.gforces.co.uk to find out more.

FINANCE. FLA FIGURES

Dealership finance is still first choice for buyers NOVEMBER’S figures showed that dealer motor finance remained UK consumers’ first choice for new cars. The Finance & Leasing Association’s latest figures show that 61.5 per cent of consumers buying a new car in the year to November used motor finance provided through dealers, almost ten percentage points up from November 2010. Consumer demand for dealer finance led to growth of six per cent in the number of new cars bought in November compared with November 2010, and a rise of four per cent in used car sales over the same period. Paul Harrison, head of motor finance at the FLA, said: ‘Our figures highlight just how important finance sold in dealerships has become in helping people to buy new and used cars. Showrooms are the first choice for buyers because of the range and flexibility of the products on offer. ‘Looking forward to 2012, consumer confidence will be more important than ever to the performance of the car finance industry. But the secured nature of car finance means that lenders can continue to offer some of the best deals.’

Manufacturers looking to steal a March with tempting offers Major players are looking to reverse the decline, reports Jamie Edmonds

ith the March plate change just around the corner, Car Dealer has looked at some of the most attractive deals on new cars at the moment. With the market in 2011 down by 4.4 per cent year-on-year against an already low 2010 figure, manufacturers are keen to make a strong start to the new year and reverse the decline. Low-rate PCPs and zero per cent deals are out in force to entice customers into the showrooms but some manufacturers are delving even deeper into their toolbox of offers to try to steal a march on their rivals. A wide range of no-deposit packages are available, giving dealers a great opportunity to target customers wanting to change vehicles before the end of their existing agreements or those with older cars of low value wanting to upgrade.

VAUXHALL GM’s ‘flexible’ zero per cent deals mean the customer can set the deposit level and length of the agreement. You can have an Agila 1.0 S on your drive for just £165.59 a month over 60 months with no upfront payment, and Vauxhall will even make a £500 deposit contribution.

FIAT THE Punto is reaching the end of its shelf-life, so to keep it attractive against newer models, the basic 1.2 Active can be had with three years

Clockwise from top left, Jazz IMA, Auris, Agila, Ypsilon

interest-free finance and no deposit at £288.88 per month.

HONDA OFFERING buyers the chance to ‘create their own offers’ allows them to tailor a package to suit their needs. A Jazz IMA works out at under £350 a month with no deposit and a balloon of £5,400 after 37 months, with warranty, servicing and breakdown cover all included for four years.

CHRYSLER THE Ypsilon and Delta are new to the UK market but are already attracting significant incentives to push sales. The Ypsilon gets a 20 per cent reduction in list price making it ‘VAT free’ bringing the price of the 1.2 S down to £8,921, or 47 payments of £159, with a £159 deposit and a final payment of £3,423. A similar deal on

the Delta 1.4 S has the deposit and monthly payments at £249 and an MGFV of £4,711.

TOYOTA JAPAN’S biggest car manufacturer has already surprised us with a zero per cent PCP deal on the newly-launched Yaris (see right) but this deal is also on offer across their whole range of other models. The Auris Hybrid T-Spirit is available for £269 per month with a deposit of £4,039.80 and a balloon of £8,440.20 over 36 months, while an Aygo Go! is just £129 a month – £1,568.10 down and £3,771.90 to pay at the end of the agreement. With deals like these, your customers could drive away in a new car and save money as well, perfect for the motorist and you as well in these times of austerity!

Valuing Service – Valuing You! First Response Finance is the first choice for the UK’s small to medium sized dealer market. 24 | CarDealerMag.co.uk

..in association with

DEAL FINDER Latest finance deals on superminis SKODA FABIA SKODA’S Fabia is a firm favourite with retail buyers, in spite of its advancing years, and the model ranks highly in customer satisfaction surveys with a combination of well-proven Volkswagen technology and attractive prices. It is spacious and a pleasant, if unexciting, car to drive and is also available as a practical estate. With a whole raft of offers including three years’ free servicing, and ‘Zero VAT’ on top of the low-rate finance, the 1.2 12v S hatch model is available at just £129 per month on a three-year PCP with a

customer deposit of £1,661.08. To own the car at the end of the agreement, the customer has to make a final payment of £3,105 bringing the total paid to £9,341.

This model can be had on a three-year PCP with a monthly payment of £129, and a customer deposit of £1,668. The GFV is £3,145 meaning the total price the customer pays is £9,457.

TOYOTA YARIS THE third-generation Yaris launched in August 2011 to a lukewarm reception. It offers more space and refinement than previous versions, a great multimedia system and a five-year warranty, but lacks sparkle. The B segment is extremely crowded so even new models need incentives to stand out and this is what Toyota has provided. Zero per cent three-year PCP deals are rare, even on run-out models, let alone cars launched less than six months ago and in the best-selling TR spec it makes a compelling proposition.

time is money

Searching for success

HYUNDAI i20 HYUNDAI’S i20 has cemented its position as a genuine alternative to the European and Japanese norm in this sector. The ‘Five Year Triple Care’ package gives a five-year unlimited mileage warranty, five years’ roadside assistance and five annual vehicle checks all included in the price, keeping running costs low. Even in basic S spec, the car comes with air conditioning, ESP, six airbags and MP3 stereo with aux input – and with CO2 emissions of 119g/km on the 1.2 model, road tax is only £30 per year.

Meldrum

In three-door 1.0 VVT-i form, the deposit is £2,093 with monthly payments of £169. The optional final payment is £4,251 making the total £12,260. And running costs won’t break the bank either.

re we nearly there yet? It’s the question kids always ask when they are on a long, never-ending journey to a family holiday resort. I think I have been hearing the business version of that very same question over the last few weeks and it’s: ‘Will 2012 be better than 2011?’ This question has been posed to leading economists, top business leaders and prominent politicians and what has been interesting is that almost all of their answers began the same way: ‘That all depends on…’ ‘That all depends on fixing the Euro Zone crisis.’ ‘That all depends on government plans for economic growth.’ ‘That all depends on interest rates staying low.’ Maybe what the experts are trying to say is that they don’t know themselves because it’s just too close to call and the much-needed recovery is still beyond the horizon (just like the holiday destination). Should we stay in bed, pull the duvet over our heads and wait until the pundits tell us it’s okay to come out or should we take control of our own destiny by pushing through the paralysing fear of failure and make growth plans of our own? I know which strategy I’ll be taking because I believe that with proper planning and a clear vision of a successful future, anyone can defy soft economic conditions to grow their business and significantly increase their market share (especially when their competitors are still under their 13.5-tog duvet). Most people reading this will know that what their business achieves in 2012 will be entirely up to them – not the Euro Zone, government growth or interest rates. They will succeed because they know that success doesn’t come to those who wait… we need to go looking for it. Are we nearly there yet?

‘Anyone can defy soft economic conditions to grow their business.’

Who is Jim Meldrum?

Jim is regional sales manager for First Response Finance. Call him on 07917 460 111 or email Jimm@frfl.co.uk

Tel: 0844 8730819 Web: www.frfl.co.uk CarDealerMag.co.uk | 25

dashboard.

Around the world Dealer news from somewhere other than here

Kia reveals all-new C’eed bit.ly/newceed

CANADA

The car bosses of the ‘Detroit big three’ in Canada have warned that a year of static car sales lies ahead. Total sales in 2011 in Canada were up 1.8 per cent from 1.56m to 1.59m vehicles, but consumers’ record debt levels, fears over the political climate in the US, and the European recession are expected to impact sales in 2012.

USA

A CAR dealer in Ohio has slashed prices and launched a major advertising spree in order to get rid of its remaining stock of Saabs. Saab of North Olmsted is offering discounts of between 25 and 45 per cent to get rid of its stock, and is offering a service contract that lasts for up to 60,000 miles as a replacement for Saab’s warranty. The dealer has also launched a $100,000 (£65k) advertising campaign.

UAE

GENERAL Motors and Ford reported record sales in China last year, beating Japanese rivals who were affected by the March earthquake and Thailand floods. Deliveries to dealers in China rose 8.3 per cent to 2.55m vehicles for GM and five per cent for Ford. In contrast, Toyota’s sales were at 2004 levels, while Honda reported its first ever decline in sales to the country. Sales in China for the two American brands are also expected to grow in 2012.

INDIA

The UAE was one of the best markets globally for luxury car firms Rolls-Royce, Bentley and Bugatti last year. Sales in the country accounted for a quarter of Bugatti’s worldwide sales, while Rolls-Royce and Bentley reported their sales were up too. One dealer reported that he last saw similar levels of sales in 2007 before the financial crisis, and had sold 50 Bugatti Veyrons – each at a cost of £1m.

CHINA

The world’s cheapest car, the Tata Nano, has received flak due to poor sales, slow build times and a series of car fires. The cheap, ‘everyman’s car’ was designed to allow dealers to be able to offer Indians a cheap alternative to the humble motorbike, but the car has been bogged down by problems. Tata’s CEO has hit back at critics saying: ‘I don’t think it’s a flop. I consider it a wasted opportunity.’

What is the latest website technology to help me sell cars? Website technology is currently in a very exciting period of growth, with regular innovations and improvements coming all the time. Your web agency should employ a team of dedicated developers to constantly stay on the cutting edge of technology and ensure that your site is always the best it can be. Current innovations include stock integration on Facebook, interactive stock searches, and Live Chat (including video chat), as well as technology behind the scenes that optimises your website even further.

How do I keep my website up-to-date? Keeping your website up-to-date and accurate is perhaps one of the most important parts of your day-to-day website management. Some dealers prefer to update their content themselves through a content management system, but this can require heavy time commitments and can often accumulate spelling errors and other inaccuracies. In order to keep your website as relevant as possible to help deliver you the results you need, we would recommend working with a web design agency who have a proven maintenance and update management process already well-established.

How will a website help me sell more cars?

Your Online Marketing Questions Answered Can I design our website in-house? Some companies with dedicated web design departments prefer to keep their website design in-house. However, unless you have access to extensive resources and a lot of design/technical knowledge, we would recommend asking a team of professionals to design the site for you. They will know how to build a site that looks good and performs well, and they will be experts in ensuring that a website converts traffic into sales. Your reputation can be damaged by a poor website, and that simply isn’t worth risking.

80% of people searching for new and used cars begin their search online — if you don’t have a website then they will not know you exist. Having a user friendly website allows your potential customers to search your stock and do their research without the pressurised and stressful task of going into a car dealership. In addition, your web design agency should be able to offer a range of digital marketing devices to attract these customers, and then give them the tools and information that they need to prevent them leaving your site and going elsewhere.

If you have any questions about online marketing please email the Bluesky team at questions@blueskyinteractive.co.uk

www.blueskyinteractive.co.uk 26 | CarDealerMag.co.uk

LET US MAKE YOUR SALES EVENT A SUCCESS

HOLDING AN EVENT? If you are investing in a showroom sales event or new product launch, we can help you make the most of it. Our Customer Service Advisors:

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Douglas Stafford Limited 1000 Lakeside Western Road Portsmouth PO6 3EN Telephone: +44 (0)23 9283 0011 Fax: +44 (0)23 9285 2900 Email: info@douglasstafford.com www.douglasstafford.com

@DouglasStafford

We’ve got quality stock and great customer service all packaged up. At grs we understand that you’ve made a promise to your customer, so we make sure we’re focused on providing you with an efficient and reliable service, from order to delivery. Which means however many vehicles you buy, it’s child’s play.

Call 01743 281 818 or visit www.grs.co.uk

big mike.

All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike

How I managed to skip bureaucracy and save some cash too

egular readers of this column will know that I’m not a man who likes to part with his hard-earned lightly. What’s more, I like even less to give it away to anyone in government. I pay my taxes like everyone else of course – the days when car dealers could get away with keeping things ‘off the books’ are long gone – but other than the additional taxes I pay on my fuel, my real ale and the odd cigar, I try to avoid greasing the palms of politicians wherever possible on the basis that all they seem to do is spend it on providing support workers for lazy, idiotic chavs while cutting budgets for schools, hospitals and the armed forces. But I digress. I’ll leave it to Jeremy Kyle to show the world exactly what’s wrong with the system as it stands, and instead tell you how being a car dealer helped me avoid a nasty little stealth tax. Over the Christmas break, I had one of those moments that occurs only occasionally in a bloke’s life. I decided it was time to ‘sort everything out’. Usually it’s only after a divorce, bankruptcy or similarly costly experience that we decide it’s time to take stock of everything. On this occasion, though, it was simply the fact that the current Mrs M had finally won her battle to have our loft converted, so she’ll soon have a secret den in which to hide away and plot my ultimate demise. So it was that everything had to come out – 40 years’ worth of rubbish – and for the first time in my life I found myself exploring the joys and perils of skip hire. The skip itself wasn’t so much of a problem. It would have meant me paying out £250 to have a large, rusting lump of metal on my driveway, which is kind of ironic when you consider what most of my customers have paid me for over the years. But here’s the rub – ever since I installed my home bar, dartboard and pool table inside a static caravan out front (just in case you thought I was being soft by letting her have the loft), The arrival of I’ve had to sacrifice the driveway, which this Volvo was was a pointless luxury anyway when a stroke of my daily smoker’s a 12-year-old Nissan good luck... Maxima being run on a motor trade insurance policy.

Big

mike Our man on the inside spills the beans on the car business...

Parking a car in the street isn’t a problem. Parking a skip there, though, apparently is, and in order to declutter my life I would have been required to fork out a further £150 for a licence from my local authority, plus I was responsible for lighting the thing. I would also have to pay £25 extra to the council for the ‘administration’ costs required to process my skip’s appearance in the neighbourhood, which would take anything ‘between one and four weeks’ to process, according to the gormless monotone who seemed to take great delight in my inconvenience on the other end of the telephone. Dreading having to go home that evening to tell the gargoyle her plans would be delayed by as much as a month while I dealt with unnecessarily expensive bureaucracy, I was visited by a moment of good karma when onto the lot pulled an ancient Volvo estate, its owner having finally

‘I was visited by a moment of good karma when onto the lot pulled an ancient Volvo estate.’ decided it was too big for his needs. His original plan, when his eldest son left home 12 years ago, was to run the Volvo until it died then get something more economical, but the stately Swede’s resolute determination to not even deteriorate, let alone die, meant he finally waved the white flag. Less than half an hour later, he left my lot behind the wheel of a nice eight-year-old Golf, and I had become the proud owner of my very own F-registered, taxed and MoT’d Swedish skip. No need to apply for permission from the council – it was already fitted with rear reflectors, and all for a part-ex allowance equivalent to the cost of the skip in the first place. What’s more, I can even lock it. Which saves me waking up, as One Foot in the Grave’s Victor Meldrew once did, to find someone else’s abandoned Citroen 2CV inside it. And when it’s full, I can simply drive it to the tip. Genius, I’m sure you’ll agree…

Who is Big Mike?

Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way. CarDealerMag.co.uk | 29

DASHBOARD.

Made in Taiwan... and on its way to the UK? The hi-tech Far Eastern island sees automotive opportunities ahead. Can dealers in the UK get a slice of the action? Dave Brown reports.

ADE in Taiwan – three words most of us will be familiar with. After all, we see them on all sorts of things we encounter in our day-to-day lives, from computers and clothes to toys and trainers. But what about cars? Not so far, in our part of the world at least. However, that might be about to change. Not many Brits visit Taiwan, but Car Dealer was lucky enough to do so late last year, to find out more about the emerging electric vehicle technologies on the island, which lies off the coast of mainland China and has transformed itself into an economic powerhouse over the last 50 years or so. One word seemed to sum up the approach of the businesspeople we met over there: Determination. Determination to provide quality products at reasonable prices to customers all around the globe; and determination to make the most of all the opportunities that are presenting themselves. There are three main strands to Taiwan’s work in the automotive industry. Firstly, the country’s reputation as a powerhouse for the production of car parts. It might not be the snappiest slogan ever written, but they say that ‘without Taiwan you don’t get car parts’. The country’s auto parts industry comprises more than 2,800 manufacturers and suppliers, not surprisingly, enjoying a major share of the global market. Last year, Taiwan auto parts exports grew by 23 per cent on the previous year, with the main recipients being the USA, China, Germany and Australia. The second strand, which is actually a single car maker, is Luxgen. Established by Taiwan’s Yulon Group, the company is a fully-fledged car manufacturer with production plants in Taiwan (not surprisingly), mainland China and the Philippines. It supplies local markets with more than two million quality vehicles produced in association with Nissan, Mitsubishi, GM, Chrysler and more. EV technology is very much a part of their DNA. The third strand we identified, again with the emphasis on EV, includes a whole group of companies who are into electric vehicles and have been for years. 30 | CarDealerMag.co.uk

SHOW TIME

A pool of knowledge The Taiwan International Electric Vehicle Show takes place from April 12-15. The country has accumulated a vast pool of knowledge and experience from its ICT industries which it is bringing to the race to create green technologies as concerns mount over global warming and carbon emissions. A spokesman for the show, which will be

But the vehicles they manufacture and work with aren’t necessarily cars, but scooters for the disabled and elderly; golf carts; electric bikes and even boats and planes. Having established themselves in those areas,

held in the capital Taipei, said: ‘EV Taiwan again joins all the strengths of domestic manufacturers showcasing their latest products and EV technologies for the emerging electric vehicle industry.’ As well as electric vehicles themselves, the show will feature firms specialising in drive and motor systems, energy storage technology, test systems and other services.

some of them see an opportunity to tap into the increasing appetite for clean, green motoring by moving into car manufacture: making small, commuter-type vehicles designed for city-based driving, rather than a car such as a Nissan Leaf,

Read Dave Brown’s Taiwan blogs bit.ly/CDinTaiwan

CRUCIAL QUESTION

No right-hand drive yet So are you planning to launch a full-scale assault on the UK? That was the question we put to Luxgen once we’d returned to the UK. (They weren’t on our itinerary for the four days we spent out in Taiwan.) Chao Yin of the firm’s International Business Department told us: ‘I must report that currently Luxgen does not manufacture the right-hand-drive vehicles required in UK. And therefore does not plan to enter the UK until the right-hand-drive vehicles are developed. Yin added, however: ‘Right-hand-drive markets represent about a third of global market share, and therefore it is something Luxgen is looking seriously into.’ Luxgen is the only car maker in Taiwan to have its own whole-car design and development centre.

designed much more as an electrically-powered Ford Focus or similar. One such company is Pihsiang Machinery, where an exciting new two-seater EV has been developed. Production of the new car – which has been given the name Achensa – begins next year at a purpose-built factory on the coast of Taiwan. Pihsiang has risen to prominence as a maker of the aforementioned electric scooters and buggies principally… so there is a logical progression behind their plans. And although the UK isn’t in its sights as a potential market for the car, it could be before too long. Jeffrey Chang, chief finance officer at Pihsiang, says the target market for the car includes commuters, housewives and senior citizens. And although specifics have yet to be released

(as well as the design of the vehicle itself) he promises that the cost will be reasonable and the charging time in the region of 90 minutes. The European market was chosen because of government subsidies and tax breaks to encourage EV ownership and also because many of its cities feature historic, narrow streets, perfect for an urban/city car to navigate. The battery has also been designed to last for as long as the car itself – around seven to 10 years – eliminating a key concern for potential purchasers. Chang, above, believes that price and charging times are the keys to encouraging wider public acceptance of EVs so he advocates using the technology for urban cars then expanding its application as technology advances, and charging times and prices come down. ‘Safety and battery lifecycle are the two basic criteria. Our industry has to resolve to shorten the charging time for the consumer,’ he said. ‘After all, people know you can fill up a car with petrol in five minutes, so we must work towards that with EV,’ he told us. ‘Several car dealers in Europe have been in touch with us already about our new car.’ Another such company is Fukuta. Set up in 1988, it now has 110 employees working in two divisions: motor manufacturing and green energy. The green energy division was set up in 2005 and has a product range including wind turbines, electric boat and electric aeroplanes. The company worked with Tesla to develop the world’s first

‘‘

electrical roadster and has formed an alliance with Luxgen too. Boss Gorden Chang says he can turn any car into an EV. I met a third Mr Chang during my time in Taiwan: William Chang, the boss of the Lanyang Technology Company, who is aiming high. He told me he wants his brand Lynopower to become as well-known worldwide as Nike, and why not? Although not actually involved in EV manufacture, the company is heavily involved in research and development and the production of batteries for EVs -- again, including bikes and boats. ‘We are only a small country but we are very active.’ Those were the words of Snow Chen, CEO at DK City, another company on our itinerary. Electric bikes and gym equipment were the products on show for us to inspect here, and although of limited interest to a motoring journalist, it was clear the firm is enjoying considerable success. The fifth and final company we visited was an outfit called Chroma, housed in an impressive building near Taichung, a city further south than the capital Taipei. Their speciality lies in research and development and in the production of testing equipment for charging stations used by electric vehicles. Fascinating stuff, and although this company already has bases right across the globe, it would seem there is the opportunity for further expansion if the EV revolution really takes off. But if any name is about to become better-known among the car dealers of the UK, it is Luxgen. [CD]

We are only a small country but we are very active.

CarDealerMag.co.uk | 31

ad feature.

Why franchise dealers choose Dealer Auction Gavin Smith and Clive Colyer, directors of Dealer Auction, answer questions asked by franchised dealers who want a simple method to maximise the profit from their trade cars I have no problem disposing of my trade vehicles, why would I use Dealer-Auction. com? Any franchised dealer can dispose of trade cars, that’s easy. We’re about maximising the profit opportunity on every trade car. A modern dealership wouldn’t dream of being without an online sales channel for retail cars, so why should trade sales be any different. The exposure we can provide for a vehicle is far greater than by any other method.

Creating a detailed, attractive listing with full vehicle condition report and up to seven photographs takes just minutes and is incredibly simple to do. Our ‘My Dashboard’ feature ensures that dealers have full control of their auctions from a simple interface. What are your backgrounds? We each have more than 20 years’ experience in the motor trade, in managerial and buying capacities for franchised dealer groups. All in our team are motor trade professionals who fully understand the needs of dealers and trade car buyers.

So what is it that you do? We are an online auction site, offering trade cars from franchised dealers to thousands of prevetted, registered trade-only buyers. How will it make my dealership more profit? As well as the large exposure we provide, our system doesn’t rely on the right buyer being in the right place at the right time. Our listings system allows you to really ‘sell’ your vehicle in a way that other methods do not. In addition, we work hard behind the scenes to make sure your vehicle is sold for the highest possible price. Our cost savings over other methods are substantial. There’s no subscription, no listing fee and there’s no charge until the vehicle is sold. It is completely no sale, no fee – meaning nobody works harder to maximise the profit on your trade cars.

‘‘

What convinces dealers to sell trade cars through

32 | CarDealerMag.co.uk

Dealer Auction’s Gavin Smith

Dealer-Auction.com? Just by talking to us. We can demonstrate just how dramatically we can help a dealership’s bottom-line. Because there’s absolutely no risk in trying us out, dealers don’t need much convincing. The managing director of a large dealer group who joined us said: ‘I’ve never seen anything like this, it makes sending cars to auction seem old-fashioned.’

The exposure we can provide for a vehicle is far greater than by any other method.

Online systems can be complicated and timeconsuming. Is yours? Our user-friendly system has been designed with the modern franchised dealership in mind.

What support do I receive? Our friendly office-based team are experts in remarketing and negotiating in order to achieve the best possible prices for your cars, and are on hand to assist with any day-to-day enquiries. Our field-based team is perfectly placed to help dealers in making the most of our service and get the most from our system and, ultimately, making more profit. How successful have you been so far? Our launch objective was to sell 50 cars per day for our dealers. We smashed that milestone and now auction more than 700 vehicles a week. Once a franchised dealer gives us a try, their own success speaks for itself and they don’t look back. The increases they see in their trade profits can be incredible and their gratitude results in lots of referrals for us. Franchised dealers wishing to sell on the site or trade buyers wishing to register to purchase can visit Dealer-Auction.com, or contact Gavin Smith on 0116 2301444 or gavin@dealer-auction.com

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forecourt. the knowledge Model: Kia Optima 2 Luxe Price: £21,695 (tested), range from £19,595 Engine: 1.7-litre, diesel Power: 134bhp, 325Nm Max speed: 125mph 0-60mph: 10.2s MPG (comb’d): 57.6 Emissions: 128g/km Residual values (three years): tbc

target buyers: Retail but mostly D-segment fleet buyers.

the rivals:

The conservative D-segment has a new kid on the block. But is it a more exciting proposition? James Batchelor finds out What is it?

What’s the spec like?

Kia calls this the most significant product they’ve launched in recent years. Its last competitor was the leftfield and incredibly dull Magentis – a car that would never have worried Ford or Volkswagen. But Kia is on the prowl to win some D-segment sales with the Optima and aims to stick its stake into the fleet market. A very modest 1,500 units are expected to sell in 2012, though.

Following on from the rest of the Kia range, the Optima receives 1, 2 and 3 trim designations. However, there are not three models but four – ‘2’ has two specs, namely ‘Luxe’ and ‘Tech’. The line-up starts at £19,595 which has a more-than-adequate equipment list of alloys, electric folding mirrors, leather steering wheel and Bluetooth. The range tops out at £25,995 for the ‘3’ auto, but the predicted best-seller will be the ‘2’ Tech at £21,695.

Vauxhall Insignia, Toyota Avensis, Volkswagen Passat

What’s under the bonnet?

Key Selling Points:

Surprisingly for a D-segment car, there’s only one engine choice. It’s the 1.7-litre diesel unit which panders to the fleet market. It comes with 134bhp while returning an impressive 57.6mpg and emits 128g/km. Performance is modest and when fitted with six-speed manual, progress can be muted by bad turbolag. However, the six-speed auto is smoother. Stop/start comes as standard and is generally unobtrusive.

1. 1.7-litre diesel unit blends decent performance with low running costs. 2. Pleasing levels of equipment – even in entrylevel ‘1’ version. 3. Build-quality is on a par with some of the sector’s best

Deal Clincher: Bold, sharp styling marks Optima out in a conservative sector.

STYLING

The latest work from Peter Schreyer’s pen is a looker – especially in Luxe trim with polished alloys and metallic blue paint.

HANDLING

Steering can be a little woolly but it’s generally satisfactory. Little body roll is a highlight. 34 | CarDealerMag.co.uk

What’s it like to drive? The Optima has been designed with the motorway in mind rather than a flowing B-road. On the motorway it’s hushed and smooth, but on a country road the front end can easily lose grip and the steering isn’t the most direct. Having said that, the ride on potholed roads is impressive and there’s very little body-roll for such a large car – it’s 82mm longer than a Passat.

What do the press think of it? Auto Express were impressed saying ‘it’s a genuine competitor in this class’ while Autocar said ‘it’s an excellent effort, fully able to compete with Europe’s best’.

What do we think of it? Much like Kia is doing with every car it replaces, customers are sure to forget its past effort in the D-segment. The Optima is a very good car and more than lives up to Kia’s rejuvenation in the UK. It’ll win customers with the way it looks, its well-built interior, and pleasing levels of equipment. With just 1,500 units to play with, Kia could shift those easily and there might be a few queues at dealers. We understand the reasoning behind the one engine decision – it makes sense financially for Kia and for the UK fleet market – but we would like to have seen just a slightly wider variety of powerplants.

Kia Optima INTERIOR

There are a few cheap plastics, but it’s all well screwed together. Some nice touches too with wood and ambient lighting.

themanual STYLING

Boasts Toyota’s new design language called ‘keen look’.

INTERIOR

Redesigned centre console and improved materials make for a well-built cabin

Toyota Avensis

ENGINE

Toyota has been to work on the bestselling 2.0-litre diesel unit – it’s cleaner and smoother.

Toyota’s British-built D-segment competitor has been given a mid-life refresh. James Batchelor investigates What is it?

What’s the spec like?

Now three years old, Toyota has given the British-built Avensis a make-over. Designers have been let loose on the exterior and given the interior a bit of a refresh with new cabin materials, and engineers have had a crack at the 2.0-litre diesel engine. In fact, the Avensis is the first Toyota to wear the Japanese firm’s new ‘design language’ which we’ll be seeing plenty more of in the future.

In an effort to get the Avensis back onto the radar of many retail and fleet buyers, Toyota has worked on equipment levels. The range starts with the T2 model – £18,450 for the saloon and £19,485 for the estate – with the 1.8-litre petrol unit which features Bluetooth and a leather steering wheel. The range rises to £28,885 for the 2.2-litre diesel T-Spirit Tourer which boasts full and heated leather upholstery, 18-inch alloys, a rear view camera, and Toyota Touch & Go Plus multimedia system.

What’s under the bonnet? One 1.8-litre petrol and three diesel engines. The 2.0-litre D4-D diesel unit is very much the bread and butter of the range, and it’s this engine which Toyota have concentrated on. Engineers have managed to shave 3kg from the engine’s weight, the power delivery has been made smoother, and emissions have been cut from 139g/km to 119g/km to pander to the company car market. It develops a very respectable 124bhp; top whack is also 124mph.

What’s it like to drive?

What do the press think of it? Honest John wasn’t very complimentary about the Avensis’ handling capabilities – with the D-4D engine fitted – saying it ‘handles like a wet blanket’. Honest John’s choice was the 1.8-litre petrol. Autocar says ‘it’s hard to recommend’ and ‘falls well short’ of its rivals. Auto Express were far more upbeat adding: ‘The Avensis is the clever choice in this market – even if it’s the sensible one.’

What do we think of it?

It’s very easy to forget that the Avensis is available in the D-segment – what Toyota have been concentrating on with new product such as the Optima how the car performs on twisty roads. (opposite) and the Hyundai i40. But The chassis has been stiffened up – the Avensis makes sense for a lot of but not at the cost of ride comfort – a families and fleet buyers who want a quicker steering rack and a stiffer car that’s up to the job. The revisions anti-roll bar have all been added. What have been largely successful, but results is an Avensis that is slightly we’ll have to wait until the nextfocused to drive, but it won’t worry generation Avensis for something that the sector’s best – namely the muchreally brings something new – and loved Mondeo. interesting – to the party.

the knowledge Model: Toyota Avensis TR saloon Price: £21,525 (tested), range from £18,450 Engine: 2.0-litre, diesel Power: 124bhp, 310Nm Max speed: 124mph 0-60mph: 9.7s MPG (comb’d): 62.8 Emissions: 119g/km Residual values (three years): 34 per cent

target buyers: Family buyers – especially with Tourer – but mostly fleet buyers.

the rivals: Kia Optima, Hyundai i40, Vauxhall Insignia

Key Selling Points: 1. Showcases Toyota’s brandnew design identity. 2. Cabin quality is better than ever. 3. Touch & Go Plus – advanced multimedia system.

Deal Clincher: 2.0-litre D-4D fuel economy is an impressive 62.8mpg – only £30 to tax. CarDealerMag.co.uk | 35

forecourt. the knowledge Model: Porsche Panamera 4S Price: £90,891 (tested), range from £84,129 Engine: 4.4-litre, petrol Power: 400bhp, 500Nm Max speed: 175mph 0-60mph: 4.8s MPG (comb’d): 25.4 Emissions: 260g/km Residual values (three years): 36 per cent

target buyers: Conquest customers who want a practical Porsche.

the rivals: Audi A7, Jaguar XJ, Maserati Quattroporte

Key Selling Points: 1. A Porsche with added practicality. 2. Top-notch interior. 3. 4.4-litre V8 is rapid and sounds immense.

Deal Clincher: Can carry four people and their luggage.

Porsche Panamera 4S

Can the naturally-aspirated V8 Panamera still impress? James Batchelor finds out What is it?

compliment for the Panamera is an impressively quick car that feels like a comfortable long-distance cruiser. The four-wheel-drive system is highly effective and it makes the car very agile.

Broadly speaking, the Panamera 4S is the mid-range version of the four-door Porsche model. Below lie cheaper V6-engined versions while above sit turbocharged versions, plus a hybrid Panamera. Prices start at £84,129.

What’s under the bonnet? A naturally-aspirated, 400bhp 4.8-litre V8 lump. It’ll get to 60mph in 4.6s and crack 175mph when the snarling V8’s power is unleashed. Normally, however, it’s a pleasant and rather effortless cruiser and can return 24.5mpg. Sometimes.

What’s the spec like? Unsurprisingly, £84,129 is just the start. The car comes with what you’d

What do the press think of it? Autocar said: ‘While this is a hugely capable and rewarding car expect – such as full leather, climate there are other options that do a control and so on – but there’s an similar job, albeit in a different way, extensive options list. Our test car had an for less.’ eye-watering £6,700-worth of options.

What’s it like to drive? The figures say the car has 400bhp and 500Nm of torque – but it never felt like it had that much. That’s a

What do we think? The 4S is an impressive car. The marketing bumf says it’s a cruiser and a sports car – and we agree. At speed the Panamera feels not too dissimilar to a 911, but can easily carry four people.

Unlock your potential

36 | CarDealerMag.co.uk

themanual

Volvo V60 DRIVe

the knowledge

Volvo has slotted its eco DRIVe technology under the bonnet of its stylish V60. Whatâ&#x20AC;&#x2122;s it like? James Batchelor reports What is it?

weighted steering, comfortable seats and a charmingly wallowy ride add up to an enjoyable car to soak up the miles. We managed 58.5mpg.

This is Volvoâ&#x20AC;&#x2122;s answer to a raft of eco D-segment cars hitting the market and aims to show that the Swedish estate can be stylish, modern and environmentally friendly too.

What do the press think?

Whatâ&#x20AC;&#x2122;s under the bonnet? Volvoâ&#x20AC;&#x2122;s familiar 1.6-litre four-cylinder diesel unit as found in a number of its siblings. It can punch out 113bhp while emitting 119g/m and returning a combined MPG figure of 62.8. All come with start/stop to improve its green credentials.

ÂŁ27,575. Our test car was the ÂŁ24,920 ES which boasted cruise control, electric and heated door mirrors, 16-inch alloys, and audio controls on the steering wheel.

Whatâ&#x20AC;&#x2122;s the spec like?

Whatâ&#x20AC;&#x2122;s it like to

DRIVe can be ordered on any trim level drive? â&#x20AC;&#x201C; from the entry-level ES right up to Despite its low power output, the V60 the sporty R-Design model costing DRIVe is quite pleasant to drive. Well-

$'9(57 QHZ ORRN 35,17 LQGG

Car buying website carbuzz.co.uk said: â&#x20AC;&#x2DC;Weâ&#x20AC;&#x2122;d recommend it to anyone looking for a stylish midsized estate and would give the 1.6-litre DRIVe engine the thumbs up, but weâ&#x20AC;&#x2122;d skip on the R-Design pack.â&#x20AC;&#x2122;

Model: Volvo V60 DRIVe ES Price: Range from ÂŁ24,920 Engine: 1.6-litre, diesel Power: 113bhp, 269Nm Max speed: 135mph 0-60mph: 10.7s MPG (combâ&#x20AC;&#x2122;d): 62.8 Emissions: 119g/km Residual values (three years): 32 per cent

target buyers: Mostly fleet buyers but also a large number of families.

the rivals: BMW 3 series, Audi A4, Mercedes-Benz C-Class

Key Selling Points:

What do we think of it?

1. Low-emissions estate car motoring 2. Well-built, comfortable and nicely-designed interior 3. 1.6-litre diesel unit offers a good compromise

We like the looks and the specification and we think customers will be very happy with it. Slightly keener pricing wouldnâ&#x20AC;&#x2122;t have gone amiss.

Deal Clincher: Emissions of 119g/km mean ÂŁ30 road tax

CarDealerMag.co.uk | 37

Feature. Trevor Finn

Mark Terry

Tim Zimmerman

Linda Jackson

ake a long hard look at the faces on these pages because they are the people who will greatly influence your 2012. Why? Because they represent some of the biggest brands in the UK’s motor industry, and what they do has a direct influence on the industry’s performance. In total, these people sold nearly half a million new cars in 2011. They are the big guns – and Car Dealer brought them together at the SMMT’s headquarters in London to exclusively discuss the year ahead. Arguably the benchmark car maker in the UK, Ford’s performance year-on-year is a good 38 | CarDealerMag.co.uk

Automotive key to the state of the UK new car market. In its centenary year, the Blue Oval sold 265,894 cars resulting in market share of 13.7 per cent – the most of any car manufacturer – but sales were still down 5.16 per cent on the year before. Ford’s MD Mark Ovenden was not able to attend our photoshoot but was more than happy to exclusively answer our questions. The same went for Ovenden’s arch rival Duncan Aldred – Vauxhall’s chairman and MD. The firm sold 31,184 fewer cars than Ford in 2011, and sales were down a comparable 5.08 per cent. Sitting in second place in the new car sales charts and holding a market share of 12.09 per cent, they too

are a benchmark manufacturer. In one of his first interviews with the trade, Tim Zimmerman had much to say about the next 12 months for both the market and Peugeot. He comes to the brand from a role in China and will oversee a major product rejuvenation. But with sales down 13.11 per cent. Peugeot lie in seventh place in the new car sales chart and hold a market share of 4.89 per cent after shifting 94,989 in 2011. Also chatting to us was Jon Williams, the president and managing director of Toyota. He’s the man who resides in the green corner in terms of product and 2012 will see the introduction of a handful of new hybrid models as

Portraits: Matt Richardson

Jon Williams

Michael Cole

Paul Everitt Tony Whitehorn

Influencers well as a new sports car. Toyota sits in ninth place in the 2011 sales chart with 73,589 cars sold in the UK representing a market share of 3.79 per cent. Citroen boss Linda Jackson saw the French firm sell 68,464 cars in 2011. That represents a decline of 6.62 per cent and her company currently rounds off the top 10 in the new car sales chart, with a 3.53 per cent market share. Recently-promoted president and chief executive of Hyundai UK, Tony Whitehorn, was more than keen to give his thoughts on 2012. Hyundai are 12th in the UK sales table, with sales up 1.86 per cent on 2010 levels, and they enjoy a 3.24 per cent market share.

Sitting in 13th, just one position below its sister firm, Kia is a growing brand. Their MD is Michael Cole and he’s in charge of a model range that can claim to be one of the freshest in the UK. The Korean firm registered 53,615 cars in 2011, securing a market share of 2.76 per cent. Mark Terry, Chevrolet’s MD, represents the firm that has sold the fewest cars in 2011 here. Dealers wearing the golden bow tie registered 12,524 cars, and Chevrolet sits in 23rd position in the UK sales chart with a 0.65 per cent share of the market. However, Terry is at the helm of a brand that is entering exciting waters with a host of new model

launches including the ground-breaking electric Volt and big screen movie star car, the Camaro. Representing the dealer interest is Trevor Finn. He’s chief executive of the UK’s biggest dealer group Pendragon. Under the group’s umbrella is Statstone, Evans Halshaw, the truck and van retailer Chatfields, the parts wholesale business Quickco, and dealer software provider Pinewood. Last, but not least, we invited Paul Everitt to take part. As chief executive of the Society of Motor Manufacturers and Traders, he’s at the heart of the motor industry and is its voice to government. Here’s what they had to say.

Car Dealer Club members get free legal advice worth £195. Sign up at CarDealerClub.com | 39

Feature.

Trevor Finn

Brief and to the point, the boss of the biggest UK dealer group doesn’t fear 2012 Do you think the UK economy will slip back into recession? No. Mainly because the recovery hadn’t picked up enough momentum and so doesn’t have far to fall back before it will bounce into positive territory again. This time, unlike in 2008, businesses are much better prepared. What do you think dealers should be focusing on to stay in business?   Reducing costs and avoiding unnecessary expenditure. If the marketplace is not buoyant trying to attract more business by spending more, this will get people into trouble. What do you think the biggest threat is to the motor trade in 2012 and in the future? Legislation. Historically the industry has been shielded by legislation and has been offered protection from lots of external forces that apply pressure to other industries. As legislation particularly to enhance consumer power is applied, it will make it more difficult going forwards. Do you think the motor trade needs to change and where should it come from?   There is no question that it does change but it has changed very slowly. The change should come from within the industry. Are there any reasons to be cheerful in 2012?    One good reason is it will not be as difficult as 2008, because everyone is in much better shape.

the knowledge Trevor finn Who? Pendragon chief executive UK dealers: 245 UK franchises Family: Married, three children Drives: Jaguar E-Type Lives: Derbyshire

CV Finn left school at 15 to become an apprentice. He moved to Alisons BMW in Hull in 1977 as a technician and gained a diploma in business management at night school. Then he became MD of Williams Holdings PLC in 1982 and chief exec of the division in 1989 when it became Pendragon. Now he is CEO of the group, the largest in the UK and in the top 10 in the world.

Typical working day Finn is based in the Nottingham office where he has hands-on meetings covering a wide range of operational issues within the group throughout the day coupled with dialogue with manufacturers, shareholders and press. 40 | CarDealerMag.co.uk

Automotive Influencers

Paul Everitt

Don’t panic, says SMMT chief executive: New car sales should hold steady in 2012 Do you think the UK economy will slip back into recession? The UK automotive industry is a key driver for economic growth and we are set to see further growth in production in 2012. There has been significant new investment committed to the UK securing new model programmes, new facilities and more jobs. Economic conditions will be tough and uncertainty in the Euro Zone is a major issue. New car registrations should hold steady, establishing a firm base for further growth in 2013 and beyond. What do you think dealers should be focusing on to stay in business?   The top tip for dealers in 2012 is to maximise their local competitiveness by making the most of their subscription to Motor Codes, using customer word-of-mouth to build retention and reputation. The service and repair code received full OFT approval at the end of 2011, enabling dealers to demonstrate their commitment to customer service, quality, reliability and trustworthiness. Make sure you are subscribed to Motor Codes to get live customer recommendations to boost customer loyalty (read more on this on p58). What do you think the biggest threat is to the motor trade in 2012 and in the future? Economic uncertainty will make the first half of 2012 very demanding. It is important that vehicle manufacturers and their dealers work together to promote the value of the franchise network and maximise returns across new and used cars, as well as the repair and service business. It is important to keep up to speed with the latest products, technologies and trends and to respond swiftly to changing consumer expectations and demands. Do you think the motor trade needs to change and where should it come from?   The motor trade is constantly changing. The internet is already a massive part of the sales process – often an area out of the control of many retailers. Those that harness the potential of online and social media as a step in the sales process and a tool for building customer engagement will stand the best chance of profiting from change in purchasing behaviour. The range of products is also changing with pure electric, range extended and hybrid vehicles, not to mention increasingly efficient petrol and diesel models. Understanding these technologies and helping motorists to choose the most appropriate vehicle for their needs will be essential as industry continues to evolve.

the knowledge Paul everitt Who? SMMT chief executive UK dealers: N/A Family: Married, two children Drives: Nissan Qashqai Lives: East London

CV Before becoming chief executive of the SMMT, Everitt was director of Civil Air Transport and Communications at the Society of British Aerospace Companies. Prior to that he was head of communications, economics and policy at SMMT and previously was deputy director of the British Road Federation. Are there any reasons to be cheerful in 2012?    Certainly. The diversity of the vehicles coming to market is exciting in itself. Add to this the ongoing enhancement of vehicle specification, safety, refinement and quality and it’s easy to see why we should be cheerful about 2012 and beyond. Many consider 2011 to have been a step-change year for automotive. Having ridden out recession, industry has the potential to grow, develop and thrive like never before.

Typical working day Everitt’s day can start at 5.30am if broadcasters are seeking the industry view on the state of the market. On a regular day he balances meetings with ministers, industry chiefs and visiting members with the running of SMMT and its diverse commercial activities. His priorities are to influence policymakers and explain the scope and scale of the sector to key stakeholders. CarDealerMag.co.uk | 41

Feature.

Linda Jackson

Citroen UK managing director says it’s vital we don’t talk ourselves into recession Do you think the UK economy will slip back into recession? Well, I don’t have a crystal ball, and I am not in the prediction business – I will leave that to the politicians. But I know that Citroen are well-placed with our product range, so that if car buyers want to replace their cars with stylish, fuel-efficient low-cost offerings, our network will be ready. It’s really important we don’t all talk ourselves into recession, as buying a new car is a big commitment and the public have to feel confident. As Roosevelt said in the great depression ‘we have nothing to fear but fear itself’, so we can learn a lesson from history.   What do you think dealers should be focusing on to stay in business?   Customer satisfaction, customer satisfaction, customer satisfaction! It’s the absolute key. If we look after our customers they will return, they will tell their friends and we know it’s much more cost-efficient to convert existing customers into new cars then conquest non-Citroen owners. It’s a major focus for us to help the dealers in improving customer satisfaction and as a result profitability. It’s our mantra that these two areas create a virtuous circle and growth will then be controlled, sustained and profitable. What do you think the biggest threat is to the motor trade in 2012 and in the future? Well, it’s all about customer confidence and creating an atmosphere where buyers are tempted and teased into our showrooms to buy cars (and commercial vehicles). Clearly the ease of credit (and the cost of money) have a major impact in this so it’s vital we create the correct conditions as much as we can. Beyond that the industry can only react quickly to changing market conditions, but sometimes threats can come totally unforeseen as happened with the tragic events in Japan. Do you think the motor trade needs to change and where should it come from?   I believe the industry constantly changes and reacts. That’s what makes it such an interesting and challenging sector. Clearly I would refer back to customer satisfaction as that can always be enhanced and improved. I would also think we need to manage cash flow and stock more efficiently, adopt modern and up-to-the-minute management techniques and look outside our industry for ways to improve. All these actions come from within or are demanded by our customers so it’s up to us to adapt to new trends – and do it quickly.   42 | CarDealerMag.co.uk

the knowledge Linda Jackson Who? Citroen UK MD UK dealers: 180 Family: Married Drives: Citroen DS4 Lives: Near Aylesbury, Bucks

Are there any reasons to be cheerful in 2012?    Of course there are reasons to be cheerful, we have great new products that are relevant and in demand. We have a world first with the diesel hybrid 4 DS5, what manufacturer wouldn’t want that in their showroom in these difficult times? Across the range we have low CO2 products, and when we may see £9 a gallon, 85mpg looks very attractive! We will also have rolled out a complete new corporate ID into our network so we will have fresh and modern dealers to close the deal. For the foreseeable future people will need personal transport – our great industry is more relevant today than it has ever been.

Jackson began her automotive career at MG Rover working in various finance roles. She was appointed MG Rover’s European finance director in 2004 before joining Citroen UK as finance director in 2005. She was appointed finance director of Citroen France in 2009 and became Citroen UK’s managing director in 2010.

Typical working day Jackson starts work at 7am with meetings at her office in Slough or with calls to France. Her working day ends at around 8pm, although evening functions regularly feature in her diary. Dialogue with the network is an important part of Jackson’s week and she frequently visits dealers to meet management and staff.

Automotive Influencers

Tim Zimmerman

New Peugeot MD has just arrived from China and he’s excited about 2012 Do you think the UK economy will slip back into recession? I’m not an economist and cannot forecast whether the technical requirement to declare a recession, (negative growth), will be experienced in the UK this year. We have heard much recently from European leaders in their New Year messages that we are in for a rough ride in 2012 and there is gloomy news in every headline and news bulletin. In truth, it is clear that growth will be limited at best, and whether the economy grows by one per cent or contracts by one per cent it does not make a material difference to the average person in the street. The buying choice revolves around confidence – in the future, in the product and in the supplier. What do you think dealers should be focusing on to stay in business?   The dealer business is complex and varied, with a wide range of profit centres possible. In the current climate, they have to optimise every one of them. A dealer cannot survive on just concentrating on one or two particular facets of the business. It is of course imperative that dealers ensure that they have their costs under strict control and at the same time have a real grip on cash flow. However, the two key words for me are realism and optimism. Realism because the market is going to continue to be tough and we at Peugeot have to work closely with our network to get the most out of it. Optimism, because all car manufacturers will have new products to launch in 2012. Here at Peugeot we will be launching the world’s first diesel hybrids and we replace our biggest selling model the 207 with the new 208. What do you think the biggest threat is to the motor trade in 2012 and in the future? Fatalism. We have a habit of focusing on the negative news. For example, in a declining market we are tempted to spend our time bemoaning the five per cent drop rather than talking about the 95 per cent of customers that are still there. As far as Peugeot is concerned, we have a lot to be positive about in 2012, but the rewards will only be there for those that grasp the opportunities. Do you think the motor trade needs to change and where should it come from?   Just five months ago, I was running Peugeot China and was based in Beijing. It was a fascinating experience. This is the world’s biggest market of some 12m new cars but still very much in its infancy. One could imagine that the distribution system might be radically different to that of Europe given its very recent creation in the age of

the knowledge tim zimmerman Who? Peugeot MD UK dealers: 250 Family: Married, two children Drives: Peugeot RCZ Lives: Stratford-upon-Avon

the internet but no; traditional full service, franchised dealers are by far the preferred suppliers for all these new customers. That said, the motor trade must move with the times and like all industries, must evolve. At Peugeot, excellence in customer service remains a priority to ensure existing ones stay with us and new ones come on board. Are there any reasons to be cheerful in 2012?   New products are our lifeblood. At Peugeot in December we showed our network a number of great new cars coming to market in 2012 as well as a host of other initiatives. The van market too is buoyant and has always been a good barometer of near-future trends in the economy. We should take comfort from the fact that businesses are still buying LCVs.

Zimmerman began his career as a graduate trainee in 1986 with Peugeot and has remained with the company over the 25 intervening years doing a number of different roles around the world including most recently managing director of Peugeot China.

Typical working day Zimmerman leaves home at 7am arriving at the Peugeot UK headquarters in Coventry at 7.30am. He uses the first hour to check emails, look at the daily press cuttings from the UK and France and prepares for the inevitable day of meetings. A few days a month are spent visiting dealers. Leaving the office around 7pm, he uses the drive home as thinking time and as a chance to catch up on daily news on the radio.  CarDealerMag.co.uk | 43

Feature.

Jon Williams

Toyota president and MD believes there are lots of reasons to be cheerful in 2012 Do you think the UK economy will slip back into recession? Most economists are predicting a difficult year with underlying economic weakness as output is hit by the continuing debt crisis in the Euro Zone. Despite the deficit reduction plan implemented by the UK government, we are still highly influenced by what happens in Europe. Assuming the Euro doesn’t collapse, we foresee a stable but still very challenging UK economy this year with a flat, or slightly declining, new car market. What do you think dealers should be focusing on to stay in business?   Well-run businesses will still make healthy profits. The financial crisis in 2008 taught us how to keep costs under control; we need to remember these lessons. The best dealers look after their customers and earn their loyalty. Dealers need to grow their revenue, they can do this by selling and servicing older vehicles – competing in terms of value with independents and national fast fit chains. It’s really important that dealers focus on selling cars – customers are out there and they are buying retail, fleet, and used cars. We have to demonstrate the value to customers of buying our latest vehicles with improved quality and new technologies which are more fun to drive and result in improved cost of ownership and lower taxation.

the knowledge

What do you think the biggest threat is to the motor trade in 2012 and in the future? The biggest threat to the motor trade is not looking after customers. For example, we need to offer the best levels of quality, value and service if we are to grow customer loyalty and appeal to customers with older vehicles – this needs to be backed-up with consumer offers such as fixed price servicing and repairs, a price match promise on tyre sales, and our approved used car programmes. Do you think the motor trade needs to change and where should it come from?   The motor trade needs to keep moving forward. Customer expectations are changing fast, driven by new technology. Customers’ time is more and more becoming a premium and increasingly people are using the web and social media to make their decisions on buying or servicing their vehicles. We need to be prepared for this. We need to make it easier for customers to do business with us on their terms. Manufacturers and dealers need to work together to redefine our services and to redefine value to our customers. Are there any reasons to be cheerful in 2012?    There are many reasons to be cheerful in the year 44 | CarDealerMag.co.uk

JON williams Who? Toyota president and MD UK dealers: 183 Family: Married, three children Drives: Lexus RX Lives: Surrey

of the London Olympics – this will give the whole country a boost. Manufacturers and dealers have worked together over the past three years to improve revenue streams, competing for sales and servicing of older vehicles. There are also new and exciting products which will drive customer demand – for example, Toyota is launching three all new hybrid vehicles (Prius Plug-in Hybrid, seven-seat Prius+ and Yaris Hybrid) and the new GT 86 sports car. Lexus is launching the new GS, a refreshed RX and the F-Sport version of the CT 200h. Interest rates are set to remain at record low levels, this means a continuation of lower mortgage payments as well as low rate financing opportunities on new car sales. Customers are buying cars – they’re looking for newness and value – it’s up to us to demonstrate this.

Williams joined Toyota GB as commercial director in 2007. He moved from Toyota Motor Europe, where he was director of marketing. Before that he gained experience at Ford, spending nine years with its UK sales and marketing division, and three years in the USA, where he worked in product marketing for Ford and as vice president of marketing for Land Rover. He was made MD in October 2010, and became president and MD this month.

Typical working day Williams arrives at the office at 6.30am and heads straight for the gym for an hour’s work out, arriving at his desk around 8am. When not visiting Toyota and Lexus dealers, a typical day would usually involve back-to-back meetings.

Automotive Influencers

Tony Whitehorn

Hyundai boss is preparing for eight new product launches and some tough times Do you think the UK economy will slip back into recession? If we look at the economic prospects for 2012, it is unlikely that the UK economy will slip back into a recession, however, the year is likely to be characterised by restricted growth. The principal reasons for this restricted growth will be the government’s proposed austerity measures and unemployment, which is expected to reach 10 per cent. The key to the UK economy’s success will be dependant, among other factors, upon consumer confidence and people’s ability to service their medium- to long-term debts such as mortgages. Therefore, although it is forecast that 2012 will be a tough year, it will still make modest gains. What do you think dealers should be focusing on to stay in business?   Every dealer will be, and should be, focussing on costs in 2012. And this is not just about reducing them but also looking at new ways of increasing revenues. While new car sales do represent a sizable portion of a car dealer’s income, it will be vitally important in 2012 for franchises to focus even more on their workshop business as it traditionally delivers the highest marginal profits. Retaining customers beyond vehicle warranties and offering them excellent customer service and favourable service and maintenance packages will play a role in ensuring that a dealership remains profitable. What do you think the biggest threat is to the motor trade in 2012 and in the future? All dealers will need to be savvy in 2012 and beyond. Franchised dealers will have the job of keeping their costs low to appeal to customers who will have less real income in 2012 than they had in 2011. For independent garages, they have historically had a cost advantage over franchised dealers due to lower overheads. However, they will need to invest in more sophisticated technology as new models become more complex. 2012 will be about providing ‘value’ to the cost conscious consumer. Do you think the motor trade needs to change and where should it come from?   The digital age has revolutionised the way in which we all do business and it’s certainly no different with the motor trade. A constant awareness of the internet and internet enquiries from potential and existing customers is very important. The motor trade needs to evolve alongside the new digital platforms and building a relationship with a customer through electronic means is now essential. For instance, service

the knowledge tony whitehorn Who? Hyundai president & CEO UK dealers: 153 Family: Married, three children Drives: Hyundai Grandeur Lives: Wokingham, Berks

histories online or capturing an audience’s attention when they start their car buying research can help to drive sales. Are there any reasons to be cheerful in 2012?   There is very little that can be done to change the overriding market conditions. So, for 2012, if you’re a franchised dealer, you will be happy with one or two new products to sell, however, if your franchise is able to bring eight new models to market, then you’re Hyundai; so 2012 is a very exciting year for us in terms of new additions to the model range. Further on the dealer side we are already seeing the increase in professionalism and the general improvements in servicing standards in the industry, and we fully expect that trend to continue in 2012.

Whitehorn began his career as a sponsored graduate with the Rover Group, before moving to Renault as a field sales manager. Following that he joined Toyota in 1989 as training manager and subsequently worked in the fleet, marketing and sales departments. He finished his 16-year career at Toyota as UK operations director. He then moved to Hyundai as managing director progressing to his current role as president and CEO.

Typical working day Work begins at 8.15am and typical activities include reviewing daily market performance and sales figures coupled with regular meetings with the management team to discuss strategy and ways to take the brand forward. CarDealerMag.co.uk | 45

Feature.

Automotive Influencers

Michael Cole

Euro Zone issues present the biggest threat to recovery, believes Kia’s UK boss Do you think the UK economy will slip back into recession? No I don’t, but we need to be realistic about the pace of recovery and the potential risk from the Euro Zone. Our coalition government took some tough decisions with the 2010 austerity budget and while not all popular or positive for business today the actions do at least target the underlying issue of excessive national debt. That’s why I think the latest OBR forecast of 0.7 per cent GDP growth this year is realistic. But of course the risk of a ‘double-dip’ remains as long as uncertainty exists in the Euro Zone, and despite several ‘summits’ there appears to be no credible plan to restore confidence in the currency. So there’s a real danger to economic growth. We need a stable Euro for the UK economy to regain true stability and strength. What do you think dealers should be focusing on to stay in business?   I don’t think the focus for our dealers in 2012 is particularly different from any other recent year. As our product range changes and our brand reputation progresses we’re experiencing great sales growth and that’s building a much bigger car parc and resulting dealer profit opportunity. So this year we’ll be looking for dealers to increase both their retail and business sales volumes and profits, and we want to see the average Kia dealer improve their overhead absorption by increasing after sales turnover and profits and continuing to control overhead costs. We’re putting a greater focus on keeping customers within the brand – both for repeat sales and also for workshop hours and parts sales. What do you think the biggest threat is to the motor trade in 2012 and in the future? For 2012, two things: The pace of economic recovery and the threat of competition from the independent after sales sector. Looking longer term, environmental issues will become increasingly important and hydrogen could offer real independence for the motorist with long distance and flexibility, but it needs infrastructure and governments seem reluctant to take the long view. But for this year, I think service customer retention remains the real challenge that we all need to tackle. We have to seek ways to make customers want to stay with the franchised network rather than leave it – which is often all too easy. Do you think the motor trade needs to change and where should it come from?   There are always challenges and if we resist change we die. Constantly questioning the customer experience is vital and examining the business 46 | CarDealerMag.co.uk

the knowledge Michael cole Who? Kia UK MD UK dealers: 169 Family: Married, two children Drives: Kia Sorento Lives: Horsham, West Sussex

model regularly is also important. We should resist complacency at every turn and seek to engage physically, digitally and through every possible medium. I think the digital world offers all kinds of possibilities for better communication that is so much more personal and l would urge dealers to seriously examine their digital presence if they are not already doing so. Are there any reasons to be cheerful in 2012?    There are always reasons to be cheerful and optimistic – and the challenge is always good! For the professional who has an open and inventive attitude there is business to be done. And in 2012 we have more new products coming that will continue to shake up people’s expectations of Kia. Thanks to Peter Schreyer’s remarkable design direction, our now-legendary build quality and reliability – plus of course our seven-year warranty – Kia dealers can confidently offer a quality, value-for-money car to suit any customer’s needs.

After completing a diploma in accounting at Oxford University, Cole spent 10 years in the Ford dealer network. He qualified as an accountant and became a Fellow of the Chartered Association of Certified Accountants. He joined Toyota in 1995 and held a number of field-based roles before taking on jobs in the finance and fleet depts. He then moved to marketing in 2001 before becoming southern region general manager in 2002, aftersales general manager in 2003 and later sales director. He joined Kia Motors (UK) Limited in June 2009 as MD.

Typical working day Cole is at his desk in Weybridge by 8am to catch up with department heads and go over the previous day’s figures. Monday always starts with a board meeting. He’s often busy with meetings during the day. Dealer openings, trips to European HQ in Frankfurt, media launches and industry events are all common. He normally leaves by 7pm.

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Feature.

Automotive Influencers

Mark Terry

Chevrolet boss says 2012 will be the year his brand really turns a corner Do you think the UK economy will slip back into recession? At this stage it is difficult to tell, clearly the UK plc ‘engine’ needs to rev much more strongly than at present, and while there is stimulus in many economic sectors, the key to getting the economy going again is improving overall consumer confidence. Customers on the whole are confused. The media message is one of ‘doom and gloom’ but apart from rising fuel and energy costs, consumer buying power is in many ways better than ever and manufacturers such as Chevrolet, who offer superb value for money, can really make a difference in 2012. What do you think dealers should be focusing on to stay in business?   One of the outtakes of a poor economic forecast is that customers generally become more discerning. Good customer service is absolutely paramount, as is great aftersales – people like to fix their costs, so long warranties and fixed-price servicing packages are essential – that’s what we can offer from a manufacturer standpoint. The dealers themselves need to focus on great customer service. They need to be the best in their area, to appeal on a local level, to be a business that people in that town or city want to have a relationship with. Above all, they need to recognise that when the market’s tough, they should fight for every single sale.

the knowledge

What do you think the biggest threat is to the motor trade in 2012 and in the future? There are always threats to the motor trade in various forms, be they economic, legislative or environmental. In 2012, the economy will clearly be a key talking point, and foreign currency exchanges will definitely play a part – nobody quite knows yet, for example, the longer term impact of the recent Euro discussions. But if companies are quick to react, able to adapt to change and are run in a lean and efficient way they can ensure they stay at the top of their game.

years changes to the cars themselves – electric cars, like the Chevrolet Volt, for example, have suddenly become real and viable, and those manufacturers that have them are bringing them to the fore. Customers are smart, they have weighed up the ecological and economical benefits, but once they have experienced the excitement of electric cars, especially those with range extenders, this will really start the revolution.

Do you think the motor trade needs to change and where should it come from?   Change has already begun. These days, it’s a much more intelligent market, both from the point of view of a manufacturer and as a customer. Gone are the days of saving your way to success. The motor industry has been focusing on reducing costs and improving efficiency for the last few years, the key now is to sell, sell sell! There is still a huge car market in the UK and for a growing brand such as Chevrolet a straight-forward, valuefor-money, honest approach will be very refreshing to consumers. We will also see over the coming

Are there any reasons to be cheerful in 2012?   There are plenty – especially from where I’m sitting. In 2011, we launched three brand new cars, in 2012 we’ll do the same again, plus, in addition, the revolutionary Volt. This kind of product onslaught energises our staff, our customers and our dealer network. There are still thousands of sales out there and each one of those is an opportunity, especially for a brand like Chevrolet where no car in our model range is more than two years old. We have great value pricing, a superb aftersales package and five-year warranty – 2012 will be the year we really make things happen.

Mark terry Who? Chevrolet MD UK dealers: 87 Family: Married Drives: Volt and Captiva Lives: Bucks

CV Terry joined Saab in 1986 as a technician and has since been with GM for 22 years. He worked for GM in Singapore from 1993-96 in Asia Pacific business development, then operations director for Saab GB. He has been managing director of Chevrolet UK now for threeand-a-half years.

Typical working day Every day is different with a growing brand such as Chevrolet, says Terry – but a typical office day involves an early start, individual briefings with his core staff in sales, aftersales, marketing, HR, PR, finance, fleet and retail network development, as well as meetings with dealers and key suppliers and liaising with the European management team based in Zurich to develop UK business. CarDealerMag.co.uk | 49

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Automotive Influencers

Mark Ovenden

Ford of Britain boss isn’t worried too much about what he can’t fix himself Do you think the UK economy will slip back into recession? We tend not to dwell on exactly where the economy is going at the moment – over the last few years, volatility has shown just how fruitless this can be. We broadly assume that today’s position will carry on for the foreseeable future and with low interest rates balancing the lack of consumer confidence and nervousness around large-ticket purchases. We then concentrate on making sure Ford is in the best position possible to respond to customers – it is about speed of reaction not about forecasting. What do you think dealers should be focusing on to stay in business?   The one thing we are sure of is that the relentless consumer drive for better value and improved service is not going to stop – Ford remains absolutely committed to being the best in class on both those fronts. On a wider issue – the migration of so much of the shopping process means dealers taking the widest view on where and how customers communicate with them will win out. What do you think the biggest threat is to the motor trade in 2012 and in the future? The biggest threats to all of us come from outside the industry (Euro Zone collapse, oil prices) which will drive macro economic changes. The end result of any change though is that the best value will win through. Ford is already well placed to respond to those threats with, for example, new Econetic diesels launching this year taking emissions to under 90g/km and delivering more than 85mpg.

the knowledge Mark Ovenden Who? Ford of Britain MD UK dealers: 550 Family: Married, two daughters Drives: S-MAX Lives: Essex

Do you think the motor trade needs to change and where should it come from?   The motor industry is an incredibly competitive place with an amazing ability to push technology and design boundaries constantly. The number of technological advances and new models announced nearly every week is testament to that. Ford itself changed radically with the decision not to take the US government bail-out money and instead concentrate on its own plan (the ONE Ford Plan) which has delivered incredible global results through global planning and making the right decisions quickly. Are there any reasons to be cheerful in 2012?    There are lots of reasons to be cheerful! Ford has just announced its new global brand promise ‘Go Further’ and in 2012 we certainly aim to do that – Ford will launch new, incredibly low-emission

Ovenden joined Ford in 1985 as a sales analyst. Previous roles include postings in Europe, as pricing director and small car manager, as well as in Britain as marketing director. Then he was Ford of Europe brand manager. He returned to Ford of Britain as MD in 2011 from Ford Russia where he was MD and president.

Typical working day

petrol and diesel engines, the new B-Max offering an MPV experience in a small package, a powerful new Focus ST and much more that has yet to be announced. Ford has an extremely busy year ahead of it and it’s going to be a good one.

Ovenden gets into Ford HQ at Warley for 7am, and by 8am he’s logged-in to check registrations and emails. In the morning Ovenden is involved with functional updates including sales, fleet, aftersales, finance and marketing. Time is then spent on calls with dealers and European colleagues. The afternoon can be spent looking over dealer operations and by 6pm he’s usually in the company gym. CarDealerMag.co.uk | 51

Feature.

Automotive Influencers

Duncan Aldred

New product launches and football are enough to keep Vauxhall chief smiling Do you think the UK economy will slip back into recession? A combination of turmoil in Euroland and also weakness in the UK economy could result in a recession. Whether we get there or not is debatable, but it will certainly come close. Against this background, I predict a fragile economy and weak consumer confidence and therefore little growth over the next few years.    What do you think dealers should be focusing on to stay in business?   First of all, Vauxhall retailers will be presented with fantastic opportunities with seven new Vauxhall products to be launched over a period of 14 months. This is unprecedented in the 109-year history of Vauxhall Motors in the UK. Secondly, both Vauxhall and our retail network partners need to ensure that costs are appropriate to this level of market demand. Last but not least, Vauxhall, with more than three million vehicles on UK roads, also has a significant opportunity in the older vehicle parc. We need to encourage more owners of those vehicles to get them serviced at their local Vauxhall dealer. Apart from an additional profit opportunity for our retailers, this represents great value to the customer.    What do you think the biggest threat is to the motor trade in 2012 and in the future? The biggest threat to the industry in the UK continues to be a combination of Euro uncertainty and exchange rate fluctuation. Uncertainty in the financial world quickly translates into customer uncertainty. A weak pound will drive vehicle inflation resulting in the UK motor industry falling to even lower industry volumes.    Do you think the motor trade needs to change and where should it come from?   Yes, but not radically. As an industry, we need a greater focus on the older vehicle parc where we can convince customers that Vauxhall and other franchised retailers will offer the best value and are often cheaper for their servicing and other aftersales needs.    Are there any reasons to be cheerful in 2012?    Yes, there are many reasons to be cheerful in 2012. England has qualified for the European Championships and has a good chance of winning – England are unbeaten since Vauxhall began sponsoring the national team! Also, as already mentioned, Vauxhall is looking forward to seven brand new launches plus a major facelift – all within 14 months – and if that doesn’t excite motoring enthusiasts, nothing will. [CD] 52 | CarDealerMag.co.uk

the knowledge Duncan aldred Who? Vauxhall MD & chairman UK dealers: 432 Family: Married, three children Drives: Vauxhall Corsa Nurburgring Lives: Bucks

CV Aldred started at Vauxhall as an undergraduate at the Ellesmere Port plant in 1990. With Vauxhall sponsorship, he graduated from Liverpool Polytechnic in 1992 with a BA (Hons) in business studies. He worked in various positions in sales and marketing before his appointment as retail sales director in 2004. Aldred worked in Budapest as director of sales, marketing and aftersales for GM South East Europe before moving to Germany, in 2009 to take the role of sales operations director, GM Europe. He became MD in 2010 and then both MD and chairman in 2012.

Typical working day As chairman and MD of Vauxhall, Aldred is working around the clock starting around 7am on his way to the office and leaving after 6pm, smartphone in hand. Aldred starts his day with an update on the news and sales results and maintains a regular dialogue with the retail network among his many other commitments.

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Launching 15th November 2011 Awards dinner to be held at the

Heritage Motor Centre July 12th 2012 Hosted by Robert Llewellyn

Do you have a green policy? Are you green and want to be seen? If you would like to raise the profile of your dealership then enter the Green Apple Awards for Car Dealerships.

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Contents

Profit Clinic T

here is much speculation and rumour that the next 12 months are going to present harder working conditions for dealers – you only have to glance at our interviews with the industry’s influencers on the pages before this to see that.

There’s little doubt 2012 is going to be tough, but with some thought, new ideas and help there are some innovative ways you can still make healthy profits. But how exactly? Well, as 2011 drew to a close, Car Dealer invited some of the leading suppliers together to chat to delegates at our inaugural Profit Clinic about their ideas for making money in these difficult times. Held at the Heritage Motor Museum at Gaydon, more than 100 delegates enjoyed presentations from our speakers, lapped up a free lunch and took in the delights of the museum’s impressive collection. Places at the event were free for delegates and even Popbang Colour – the remote-control car artist who created last month’s cover – was on hand to give a live demonstration.

Car Care Plan

P56

Motor Codes

P58

Profit Clinic headline sponsors unveil all-new product

How you can use recently-OFT approved code to market your site

Fourmative

P60 Wondering where your customers are? Well we may just have the answer...

Contact Advantage

P62 How harvesting email addresses could be the saviour of your business in 2012

Armour Automotive

P64 Why offering clever Bluetooth kit could help dramatically boost your profits

First up as proceedings got underway were Profit Clinic headline sponsors Car Care Plan. The firm’s CEO Tim Heavisides and head of product Mike Cowling told dealers how the market is changing and in turn how dealers need to adapt their upselling processes with a greater focus on long-term products for customers.

Winn Assist Automotive P66

How dealers must keep pace with a tidal wave of change in consumer habits was the subject of Contact Advantage’s presentation, while Winn Solicitors spoke about the advantages of offering accident management services to customers and how it can improve business and keep customers happy.

Google

Do you offer accident management? It’s key to keeping customers happy

P68 How the power of search marketing could transform your business

Audio and video specialist Armour Automotive told dealers how to make the most of offering state-of-the-art Bluetooth equipment to customers, and how to make a decent profit from the sale of it. Meanwhile, Fourmative showed delegates why customers are voting with their feet and opting to do their business with independents, rather than big brands – and what to do to stop it. Web giant Google gave a fascinating presentation on the power of search and how to make the most out of the world’s biggest internet search engine, while Motor Codes’ managing director Chris Mason gave best practice advice on the benefits of consumer-led marketing with its Garage Finder service. In the following pages we’ve reported on each presentation so that those of you who couldn’t make the event don’t miss out on the great advice.

Popbang Colour

The Profit Clinic was the first of a series of events Car Dealer has planned. Our next event will be based around Lead Generation. If you’d like a speaker’s place or want to reserve a ticket please get in touch with the editor via email – james@blackballmedia.co.uk – or call the office on (023) 9252 2434.

Words: James Batchelor & Dave Brown Pictures: Matt Richardson

Delegates at the event CarDealerMag.co.uk | 55

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Profit Clinic Car Care PLAN

How 2012 could see profits rise W: carcareplan.com T: 0844 5738000

he next 12 months could be the perfect time for dealers to really improve their profit margins. Why? Because used cars are outselling new ones. And despite some estimates the new car market could operate at satisfactory levels in 2012, it’s the used car market where the sales are really going to be made. However, making profit in this sector can be done believes Car Care Plan – and some easy tips can pay real dividends. ‘While the focus among consumers has moved away from new cars, it has shifted to used cars. Here is a huge opportunity; consequently the value of aftersales is great,’ said Tim Heavisides, Car Care Plan’s CEO at the Car Dealer Profit Clinic. Working together with aftersales in consumers’ minds is the notion of unexpected costs. Consumers want – and often need – to keep their cars for longer, and they are all too well aware of the costs they didn’t expect. They are interested in lifetime costs, too. And the subject that should be at the forefront of dealers’ minds is how to encourage the customer to come back, believes Heavisides. He said: ‘The challenge is to find the ways and the mechanisms of providing products customers want to buy. Customers are focusing more on lifetime costs, which creates an opportunity to sell aftersales products to maximise customer retention.’ But that shift in attention isn’t the only change concerning dealers and the aftersales market. New good practice guidelines introduced by the Association of British Insurers aim to make the selling of aftersales products more transparent. It’s this change, believes Heavisides, that dealers need to be aware of. ‘The ABI’s voluntary code is in force today, and partial refunds will apply to warranty and GAP insurance products. Customers are entitled to refunds if they cancel a warranty or a GAP insurance product mid-term – and they will 56 | CarDealerMag.co.uk

ask for refunds if they cancel mid-term. ‘In light of this, dealers will have to change their approach to these products. I would encourage dealers to make sure their commissions are fully protected from mid-term cancellations and to make sure their sales people understand.’ The changes will see increased transparency of products and sales processes, and improved awareness of consumer rights. ‘It will mean more administration by us all, but it is needed,’ added Heavisides. Along with changing consumer attitudes and new ABI guidelines, the market as a whole is changing too. Cars which are available with a balance of a manufacturer’s warranty on them are few and far between, and with the added factor of consumers keeping their cars for longer, market dynamics are shifting. In turn, upselling dynamics are changing too with more of a focus on long-term products. ‘A number of dealers are reinventing themselves when it comes to selling used cars, and are making a good profit,’ added Car Care Plan’s head of product Mike Cowling. ‘But 80 per cent of warranties are still given away at the point of sale. Now a customer expects a warranty to be given when they buy; dealers have forgotten how to sell. Crucially a warranty just given away is no guarantee of that customer returning.’ One way dealers can reinvent themselves is taking a broader, more measured look at how they generate profit. ‘Dealers should be selling products that bring back the customer, not the products that have the highest commissions – this is something dealers need to inform their staff of. While fixing prices might be at the expense of retail work now, the customer is tied-in for the next three years. Mark up does not equal profit – to optimise profit, dealers may need to reduce prices, and thereby selling more and getting used to customers coming back.’ Car Care Plan do know what they are talking

Car Care Plan CEO Tim Heavisides

about here. Making the most of warranty penetration improved one large dealer group’s profits dramatically. Using a real example of how it can be done, Cowling showed that by improving penetration by 50 per cent on a retail sales level of 7,000 cars a year, total sales commission jumped by £1.4m. ‘It’s great in theory and even better in practice, but there is no overnight fix,’ he explained. ‘Incentive plans and pay structures need to be longer-term. Dealers’ aftersales profit begin with sales targets.’ To conclude Car Care Plan’s presentation, Heavisides said: ‘Every year we hear a large number of dealers will be going into administration. While it is true some have unfortunately closed, we have not seen the large numbers predicted. If dealers do the basics right, 2012 will be successful for them.’

HELD In association with car Care Plan

EXCLUSIVE

Cosmetic car warranty CAR Care Plan has announced it will be introducing an exciting new policy for 2012: A cosmetic warranty. The firm’s chief executive and Car Dealer columnist, Tim Heavisides, said the new scheme would prevent motorists having to ‘live with the disappointment’ of driving around in a damaged car after a minor knock or scrape because they couldn’t afford to get a cosmetic imperfection repaired. Heavisides, who has been with Car Care Plan for 30 years, chose Car Dealer Magazine’s inaugural Profit Clinic to reveal news of the product.

Mike Cowling He said: ‘We continue to look for new and exciting products to help dealers and customers and are committed to helping the industry to blend exceptional service and revenue opportunities. Cosmetic warranty fills a hole in the market. Beforehand, customers would have to live with the disappointment of having

damaged their car, probably in a supermarket car park, and having to live with that damage. Now they don’t have to.’ Heavisides explained that the new warranty would help keep cars looking newer for longer, and that repairs would be carried out using smart repair techniques and facilities. The recommended retail price for three years’ cover would be £399, with retained commission per sale of £200 and income per repair of £100. Scuffs, scrapes and dents could all be repaired under the scheme. One important aspect of the new warranty, concluded Heavisides, was that the scheme would bring vehicles back into dealerships, further building customer loyalty. CarDealerMag.co.uk | 57

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Profit Clinic Motor Codes director Chris Mason

Motor Codes

Marketing your services for less W: motorcodes.co.uk T: 020 7344 9207

ealers can no longer rely on traditional forms of marketing as their only way of attracting business. Gone are the days when happy customers would tell their friends, colleagues and their postman of the delightful experience they got at their local garage. If they do happen to engage in conversation with someone, it’ll probably be more of the negative type rather than anything complimentary. These days, if customers have something good to say about a dealer or a garage owner, they will migrate to the internet to spill all. But keeping track of where, when and how customers do this can be tricky – which is where Motor Codes’ Code of Practice for Service and Repair can help. The scheme can help out in a variety of ways, from support to helping settle disputes, but perhaps the best way it can assist dealers and garage owners in 2012 in making more profit is from the marketing power it boasts. With a presentation entitled ‘A new perspective to your marketing’, Modes Codes’ managing director Chris Mason told Profit Clinic delegates that by embracing the benefits of its services, not only can profits rise but also recognition and respectability can too. Mason urged dealers to look beyond product margins and instead focus on modern marketing. That’s not the traditional word-of-mouth marketing, but one that relies on social media and is consumer-led – something which other industries have been doing, but the motor industry has been slow to follow. Mason said: ‘Motor Codes is a traditional form of self-regulation that the government requires us to run an advice line. But wrapped around that is customer technology that cuts straight to the heart of marketing in terms of aftersales in dealers’ postcode regions. ‘We have to admit that marketing is evolving. The days of big-spend national advertising are being questioned by more low-cost, high gain tools which allow dealers to manipulate the 58 | CarDealerMag.co.uk

internet to drive business to them locally instead of waiting for a brand campaign. My view of the future is that static paid-for advertising will be a decreasing currency.’ By simply signing up to Motor Codes, subscribers will be joining a band of garages who want to offer fair and honest services to customers, who want to complete work as agreed, and who want to deliver open and transparent pricing and good practice. The Code allows customers to fill out a survey on the Motor Codes’ website and rate the service they received. Accurate satisfaction ratings are then generated which advertise the service to new customers via the ‘Garage Finder’ tool. This can even be downloaded as a ‘widget’ and added to garages’ websites to give customers assurances of the service they’ll receive. It’s consumer-led and is real-time. ‘Within 24 hours you can have a government-backed business, with full OFT approval, and a Motor Codes rating – it really is that straightforward,’ said Mason. More than 30,000 customers have filled out a survey, and, in November alone, there were 1.6m subscribers listed in searches, and 77,000 page views. ‘That’s the opportunity for 77,000 jobs of work to go through businesses in the month of December,’ said Mason. The structure of Motor Codes’ website means customers can find businesses by locality and reputation above anything else. Mason said you should think of each subscriber’s page as an online advert boasting all the information needed by customers when picking where to have work done. Last year’s big news was the OFT giving the Service and Repair Code full approval (see right). That means any subscribers will now be able to make their businesses fully government-backed with OFT approval. ‘The OFT approval of the Service and Repair Code concludes phase one of our work. Now we are thinking about phase two which is about growing the scheme and making it work harder for our subscribers.’

HELD In association with car Care Plan

LONG BATTLE

OFT backs scheme

Mason on stage TWO weeks before Car Dealer’s Profit Clinic, Motor Codes received full OFT approval for its Service and Repair Code, giving motorists further reassurance. The endorsement means subscribing garages can now display the OFT logo alongside the Motor Codes tick – something which is sure to give consumers added reassurance. Colin Brown, director of consumer policy at the OFT, described the move as ‘one of the most important developments in consumer protection in car service and repair for many years’. Chris Mason, Motor Codes’ MD, said: ‘The Service and Repair Code was introduced at the request of government to deal with its continued prominence in complaint statistics and set out to improve standards and raise consumer confidence. ‘This announcement sends a clear message that we offer a comprehensively backed code of practice and our network of garages delivers real peace of mind for the consumer.’ Brown added: ‘Motor Codes has demonstrated a commitment to transparency and scrutiny among its members, making it simpler for motorists to make an informed choice.’ To date, in excess of 25,000 motorists have submitted reviews, all visible on the Motor Codes website. The RMI also supported the news. Chairman Alec Murray added: ‘The RMI recently pledged its full support to the scheme and see this development as vital to the growth of code. With full backing from the OFT the code can go further in delivering peace of mind to the consumer and improved standards across the industry. ‘The RMI continues to work closely with Motor Codes to ensure the service is of value to both consumers and our members.’ CarDealerMag.co.uk | 59

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Profit Clinic

Fourmativeâ&#x20AC;&#x2122;s Gary Hodgkiss 60 | CarDealerMag.co.uk

HELD In association with car Care Plan

Fourmative

Keeping those customers W: fourmative.com T: 01280 828100

n easy way to make more profit in 2012 is to upsell, right? There’s no doubt upselling has its benefits. It’s a relatively easy process to initiate for starters, and, if a dealer’s staff are good sales people, it can be a pain-free process for both the customer and the dealer’s bank balance. But get it wrong and that customer will walk out of a dealer’s double glass doors, never to return again. It’s a risky scenario to be in – and with the uncertainties surrounding 2012, it’s a scenario a dealer would be wise to avoid. But what’s the solution to upselling? ‘It’s reselling,’ said Fourmative’s director Gary Hodgkiss at Car Dealer’s Profit Clinic. With a presentation entitled ‘Upsell or Resell – Your Choice’, Hodgkiss told the audience what dealers needed to do to make customers come back in the future – and the answer was the correct handling of the colour amber. ‘If we take a look at dictionary definitions of the words ‘‘upsell’’ and ‘‘resale’’, we find two different meanings,’ said Hodgkiss. ‘The definition for ‘‘upsell’’ is: ‘‘Seller induces the customer to purchase more expensive items, upgrades or other add-ons in an attempt to make more profitable sales. The organisation must ensure that the relationship with the customer is not disrupted’. And the definition of ‘‘resell’’ is: ‘‘To sell again’’. ‘If we look at why customers buy items, we can see there are two types of purchasing habits. The first is pleasure – items such as clothes and televisions – which are items which customers consume and want to buy. However, the other type is pain purchases – such as bills – and these

‘‘

Advising the customer on when they need to return is a great way of ensuring customer retention.

DOn’T get It wrONG! Gary Hodgkiss began his presentation by describing what upselling is like for a customer. ‘Back in 1998,’ he said, ‘I owned an Audi A6, 1.8-litre turbo. I took the car into my local Audi dealership for its 40,000-mile service and I had a phone call saying my brake pads were a little low and did I want them replaced. I asked how long they would last and the person said they wouldn’t last until the next service. They were going to cost £125, and I decided not to have costs are met because the customer has to do it. In other words, there are purchases that give pleasure and relieve pain.’ Aftersales and car servicing fall in the latter category. Customers rarely want to get their car serviced or replace expensive parts – but when the need arises, it’s unavoidable. ‘Underpinning both categories of buying is trust, and the challenge for dealers is to sell correctly to customers.’ Using a CAP survey from 2010, Hodgkiss showed the most likely reason for a customer to choose a franchised dealer was trust. But, the number one reason for a customer not to choose a franchised dealer was that their prices were too expensive. ‘These days, 45.7 per cent of all service work is carried out by fast-fits and independents – up from 42.1 per cent in 2010. Ten years ago it was 30.2 per cent.’ Customers seem to trust franchised dealers for carrying out important service work, but it’s the cost that’s putting them off. As an example of how to keep customers for life, Hodgkiss turned to the American businessman Carl Sewell and his book ‘Customers For Life’ and whose car dealerships became known for trust among customers. A famous example of Sewell’s attitude to customer trust was a sheet of paper given to Cadillac customers who had their car serviced. The sheet had three questions: ‘Are the charges (less than), (the same as), (more than) the final estimate?’, ‘Was your automobile ready when promised? Yes/ No’ and ‘Is this the second time for the same repair? No/Yes’. ‘But, trust itself will not deliver retention.

them done despite the dealer sternly advising me to do so.’ Hodgkiss said he travelled a further 23,000 miles without having the pads changed and said his story had lessons for everyone. ‘That is the challenge,’ he said. ‘Getting the balance right. ‘I’m all for dealers selling more but they need to sell correctly. That means understanding the difference between red and amber work. Get it wrong and that customer is gone.’ Dealers need a value proposition too,’ said Hodgkiss. ‘Sandwiching trust – right first time, on time, and with a price equal to or less than expected – and retention, there needs to be a value proposition.’ Hodgkiss’s step one concerned measuring retention. ‘There are retention opportunities in new cars, used cars, services, MOTs and amber work. Dealers’ targets should be 100 per cent.’ Step two was measuring the process. It’s here where the customer experience revolves, ‘so dealers should make sure they measure it and not their customers, and dealers should be asking does this add something to the customer experience?’ Focusing on the customer was Hodgkiss’s step three. ‘Dealers should be finding out why customers are not completely satisfied as opposed to just concentrating on the customers that are completely satisfied. ‘Advising the customer on when they need to return is a great way of ensuring customer retention,’ said Hodgkiss. Managing the customer was Hodgkiss’s step four, and effective management can ensure that the customer comes back in the future. ‘Commit them now to future work. Customers are more likely to commit to someone they trust and have carried out a good service, and customers trust the advice of the service advisor.’ But it’s not just the customer that dealers need to be concentrating upon. Dealers’ own workforces are areas that need to be looked at as well. ‘Incentivise staff to deliver quality service, and teach them the importance of customer retention.’ CarDealerMag.co.uk | 61

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Profit Clinic Contact Advantage

The key is to keep in touch W: contact-advantage.com T: 0845 226 2650

eeping data up-to-date. Maximising your sales potential. Bringing back lost customers. Controlling your stock... When you’re running a car dealership, there are so many plates that need to be kept spinning it’s difficult to make sure that one doesn’t crash to the ground. And if your business is based in more than one location, life can be even tougher. Happily, help is close at hand… and you could be looking forward to a streamlined and successful future if you get in touch with Contact Advantage. The firm can help you in so many ways, it would be foolish not to at least consider them when you’re thinking about increasing sales, reducing costs and improving profits. The company’s Bob Feltham was among the speakers at our Profit Clinic and, not surprisingly, hugely impressed with what the firm offers. In fact, as well as extolling the virtues of its products and services, he has walked the walk as well as talked the talk, having implemented their systems into West London Motor Group, Glyn Hopkin and a raft of other dealers across the UK. Feltham delivered an entertaining speech to the audience at our event, explaining that he joined the motor industry in 1995 as network performance manager for Daewoo Cars and worked on a range of products until the time they were taken over by GM. He then went on to quote Isaac Asimov, the American author and professor, who said the only thing you can be sure of is that change is going to be everywhere forever and you have to think like a scientist to get it right. A man of many parts, Feltham now combines his work at Contact Advantage with a role running a dealership for one of the major retailers in the UK. And he gave a clear explanation of how the Contact Advantage effect turned his business around: ‘This was a dealership losing £400,000 a year but in the last year we’ve managed to turn it round. The business was in decline. I didn’t change very much, we refined it a little bit in some places, but most importantly we stuck on 270 used cars. ‘The way we did that was by using some really 62 | CarDealerMag.co.uk

Nissan partner

Keeping the MD in touch ONE of the clients Contact Advantage works with in the UK is Nissan, a company definitely on a roll at the moment, having recently announced record production figures at its Sunderland plant and enjoying a market share of around five per cent. Feltham told our delegates: ‘What we do with Nissan is collect all their data. Everything that’s sold at a Nissan site goes into various systems. That data is then collated, put together and turned into a common source so it all looks the same. It is then sent to the MD of Nissan’s phone so he can have a look at it and decide whether it’s been a great day for business or whether it’s been a miserable day for business.’ If Contact Advantage can do that for Nissan, imagine what they could do for you.

good programmes which are written into the Contact Advantage system. Some of the things that we believe in at Contact Advantage could make a big difference to your profit and loss account. It’s something that I’ve been putting into practice where I have been working in the last year and it’s something that the guys from CA do all the time.’ It goes without saying really that the whole way businesses interact with their customers has changed fundamentally and drastically in the last few years – and that process isn’t over yet. The internet, mobile phones, texts and emails are all central to any dealership’s relationship with its customers. Feltham confirmed: ‘Things have absolutely changed from where we were just a few short years ago. When I started in 1995, I doubt the guys from Google had even been born. Facebook hadn’t been invented. The whole thing has been revolutionised over the last five years.

‘Keeping in contact now is much different. Instead of writing letters, everything is done via email and text. Everybody in this room will have a mobile phone and access to a computer. There has been a sea change in how the market’s working. Managing the digital transition is crucial. Is your sales and marketing process keeping up with the change?’ Again, Contact Advantage can help and Feltham went on to explain why data capture is so important: ‘When I went to the dealership I’m looking after at the moment, they had an email data capture rate of 30 per cent and they thought they were doing really well. Now it’s running at 95 per cent.’ Interestingly, Feltham indicated that a key person at a dealership these days might not necessarily be a salesman, but someone at the business who was adept at ‘sucking in email addresses and mobile phone numbers’ – ensuring the information is correct – and entering them into the computer system. The figure for accessing the internet via mobiles has sky-rocketed, he added, and it was vital for motor retailers to keep pace with Facebook interaction, the tweeting of value messages and simple gestures such as sending an email to say thank you when a customer has either bought a car or had their vehicle serviced. There were several key points Feltham pressed home in is summing-up: 1. Are the sales force that switched on? Contact Advantage can audit weekly. 2. Contact Advantage can manage your stock for you. 3. Your sales team will be selective in feedback – especially when stock is more than 20 cars. Contact Advantage can help you override that. 4. You can receive automated directors’ data to your mobile daily, with drill-down reports. Perhaps the message Feltham wanted to hammer home the hardest, though, was the importance of collecting those crucial email addresses. As he said: ‘If you’ve got the email address of a customer, you can keep them for life.’ Let Contact Advantage take control for you and you will soon be reaping the rewards.

HELD In association with car Care Plan

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Keeping in contact now is much different. Instead of writing letters, everything is done via email and text. Everybody in this room will have a mobile phone and access to a computer.

‘‘ CarDealerMag.co.uk | 63

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Profit Clinic Armour Automotive

Music to your ears W: armourauto.com T: 01420 476767

f you’re looking for a way to generate more income at your dealership (and let’s face it, who isn’t?), Armour Automotive has something to offer that could be music to your ears. The company is in the vanguard of technology and has a fantastic product that really could capture your customers’ imagination and drive additional revenue into your business. But if the word ‘technology’ is a bit of a turnoff, don’t think their offering is complicated to understand and even trickier to explain. It’s neither of those things. It’s a simple and effective music-streaming hands-free car kit – and Vijay Punj, sales and marketing director at Armour Automotive, was on hand at Car Dealer’s Profit Clinic to tell delegates how it works. In a presentation entitled ‘Innovation Onboard Driving Profitability,’ Punj explained that his company had only been working with car dealers for three to four years, making the channel a relatively new one for Armour. There’s no doubt the Armour Group is built on rock-solid foundations. It’s a leading consumer electrics group with an extensive product portfolio and serves 5,000 customers across more than 60 countries. Punj told our audience: ‘Back in 2005-2006, we were looking to develop a product that would enable us to strategically grow our business over a five- to seven-year period. The experience we now have is one of developing an incremental revenue stream which we have successfully done over the last three years within the dealership community. ‘In terms of our customer base, it’s really around 220 dealers that we are selling this particular service to.’ When they were formulating their business plan back in the mid-noughties, Armour focused on the automotive Bluetooth market. Punj explained: ‘The first thing that was apparent to us was that it was a very big market. The market itself in terms of unit sales on an international spread is worth around £3.8bn.’ The company also found that the attachment rate of Bluetooth technology in vehicles would grow from around 20 per cent to 70 per cent by 64 | CarDealerMag.co.uk

technology

Fancy £25,000 a month? Vijay Punj had plenty of figures at his fingertips to convince his audience that Armour Automotive is a company worth forming a relationship with. One slide included in his presentation showed how a group with 37 dealers, each selling just four kits a month, could generate a margin of £25,000 in a single month. And the endorsements from leading dealer groups added further weight to his cause. Hendy Group said: ‘iO gave us an opportunity to deliver new profitable sales.’ While Robins & Day added: ‘We have sold more than 2,000 kits, generating additional sales and profit.’

2016, identifying an opportunity ‘not only for today but also for the future’. Having decided to work in this area, Armour needed a strategic partner to work with and formed a relationship with a company called CSR, a leading UK-based Bluetooth manufacturer. Punj continued: ‘The other thing we were witnessing at that time was a revolution within the mobile phone market. If you take the mobile phone accessory market on an international basis, that is valued at around £40bn. And from that amount, the sales of hands-free kits predominantly within that market account for about nine per cent.’ Having identified an already sizeable and expanding market, Armour’s next step was to actually launch its new product, as Punj elaborated: ‘The brand iO was launched in 2008 and stands for innovation onboard. We now have a £3m business which is generated specifically on the back of selling this brand and the brand is very much established within the UK.’ Quite simply, things took off from there. Punj confirmed: ‘At this moment in time we are selling to approximately 220 dealers and in terms of the

product itself we have sold just over 6,000 kits in this channel. ‘A large proportion of our product is also being sold into countries such as Australia and New Zealand. And the key thing is that we are not just promoting an opportunity to deliver profit on a one-off product. ‘What we have in terms of the brand is a product with a range of accessories.’ So far so good… and Punj had more good news for the Profit Clinic audience: ‘To maintain the customer base that we’ve actually developed within the car dealership channel, we will be launching the next generation of iO, iO Play 2, in April.’ iO Play is the exact name of the product being promoted to car dealerships and Punj was quick to point out the benefits. He said: ‘It fits any car, is fully compatible with iPod or iPhone and it enables people to play music which is stored on your mobile phone wirelessly through the existing speaker system that you have in your car – very high-quality music. The kit that we’ve got has a 180-watt amplifier built in. ‘Basically, you get superior sound quality when you compare that to playing a CD on your current radio system.’ Installation takes between 25 and 40 minutes. And pricewise, the product costs a car dealer £85 and is sold for £255 – a profit margin of £170. Armour will also provide plenty of support for dealerships who go down the road of forming a relationship with the company. Punj added: ‘We would offer you the training that would be required for your sales teams and installation teams, and I think it is important to bear in mind that it is a simple product. Realistically, the product should sell itself. ‘In addition to that we will also offer you the marketing collateral.’ In summing up, he said: ‘We have strong relationships with dealers but we still have a long way to go.’ Judging by the reception he received at the Car Dealer Profit Clinic, Punj will have been forming some more strong relationships recently. Will you be one of them?

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Armour Automotiveâ&#x20AC;&#x2122;s Vijay Punj

CarDealerMag.co.uk | 65

focus on.

Profit Clinic Ron EvansBrookes

Winn ASSIST AUTOMOTIVE

Looking motorist W: winnsolicitors.com

ou probably don’t want to think about it, but your happy and smiling customer who has just left your showroom in their shiny new car could well have an accident in it. The statistics say it’s very likely and could range from a 5mph shunt in the local Tesco car park to, worse, a highspeed road traffic accident. But dealers should be thinking about such scenarios. By employing the services of an accident management company, dealers can expect increased revenue and profits. More importantly, though, if they have been looked after well, that customer could return to you for another car in the future. However, there are many accident management companies out there, so who should you choose? With a presentation entitled ‘Where are our customers these days?’, Winn Assist Automotive’s Ron Evans-Brookes and Julie Muter told Car Dealer Profit Clinic-goers how they should be picking the right accident management firm for them and their customers. ‘Many dealers have an accident management system in place. All we ask is that dealers consider us next as we can offer something that is unique,’ said Muter. ‘Winn Assist Automotive can help increase revenue potential and profit making – but it’s not all about this. We can improve customer retention – and that’s something that increases revenue and profits. ‘You need commitment and belief in any business decision you take, so if you take away one business initiative or idea with you today it is that you should consider us and the services we can provide.’ Evans-Brookes added: ‘As much as we may loathe customers from time to time, the one single fact remains that whether we love or hate them, dealers have no future business to look forward to without them. But when it comes to customer retention, who really is in control? Is it the manufacturer? Do you have a manufacturerbacked scheme? All manufacturers use a third party business, but are your customers happy? Or is the insurer in control? ‘Believe it or not but more than 50 per cent of motor insurance is controlled by five insurers out of a total of 49 known underwriters. It’s no wonder 66 | CarDealerMag.co.uk

HELD In association with car Care Plan

after the in need

Julie Muter

T: 0844 576 1585 the average labour rate still sits at a staggering £29.63 as at the end of July 2011. I say staggering because in December 2003 it was £24.15. In just five years it has moved just £5.48. With this in mind, it is little wonder that insurers have tended to ignore traditional dealer bodyshops.’ By not making sure that they are looking after their customers, dealers cannot be sure that customers will turn to them after an accident, said the duo. ‘We all know that accidents can be a distressing time and we shouldn’t be highlighting this,’ said Evans-Brookes. ‘But when is the right time? It’s really reassuring for a customer to know that they can depend on a dealer should that circumstance arise. They are your customer after all. Do you not want to try and keep them?’ This is how an accident management company can help. In the event of an accident, customers can be directed to the dealership to get their car repaired. ‘But a bad experience with an accident management company can both put your customer off you, and you off other accident management firms,’ added Muter. ‘Winn Assist Automotive is different. We are a specialist road traffic accident firm and are a one-stop shop for dealers’ customers.’ Winn Assist Automotive gives dealers their own white-label service with a unique telephone number. It’s branded as the dealer’s giving added value to the customer experience, and when that customer has an accident, they are steered into the dealer’s own bodyshop thereby being in control of their own customer. The accident is claimed on the other driver’s insurance – meaning no increased premiums or excesses to pay – and they are given a like-for-like vehicle. Winn Assist Automotive also covers diminution. On vehicles under three years old which have been involved in a heavy accident, Winn will pay the perceived depreciation of that vehicle to the customer. That means more cash in their pocket and, because the service is branded as the dealer’s own and they have had a good experience, they will be confident in purchasing another car from the dealer. They also provide dealers with all the stationery they need and encourages them to brand it as their own and hand over to customers when they pick up their new car. CarDealerMag.co.uk | 67

focus on.

Profit Clinic Google’s Alex Rose

Google

Lessons from the web search kings W: google.com T: 020 7881 7430

he internet is making consumers increasingly demanding – and it’s up to car dealers to meet that challenge. That’s according to Alex Rose, associate industry manager (automotive) for Google, who gave a fascinating insight into the workings of the international internet and software corporation at the Car Dealer Profit Clinic. Rose, based at the company’s London office, works mainly with manufacturers but increasingly large dealer groups too. His job is to make sure people get the best out of Google’s products: Mainly the search engine but also offerings such as YouTube and display banner advertising. He bombarded his audience with a host of quick-fire facts designed to equip them for the year ahead and help them boost their profits. Underpinning the modern way of doing business is the slogan: ‘Content is king’. As the company says, marketing content used to be your ‘ad creatives’ and product information. But in a digital world, content needs to be completely redefined to include forums and communities, product reviews and surveys, games, videos, gadgets and viral marketing – all of which can help shape consumer perceptions of your product and brand. Rose revealed that Google runs an annual survey involving 500 UK consumers who have bought a car in the last 12 months and looks at how they went about researching and buying that car. He said 85 per cent of them would use search engines, with the majority turning to Google – and that search engine users presented a great opportunity for car dealers. ‘There’s one point that’s really key about people who use search engines,’ said Rose. ‘They are a different sort of consumer. People who don’t use search engines are less open-minded and more brand loyal. ‘Those guys who search online are more likely to present a conquest opportunity for your business. The more unusual the thing that people 68 | CarDealerMag.co.uk

PHILOSOPHY

Always be in beta Google’s philosophy is ‘always be in beta’ – be fast to market, keep testing, learning and refining. The company says: ‘Marketing in the digital world is about regular iterations, small and pragmatic changes, based on real-time data, rather than taking decisions today based on research done 18 months ago.’ It is important you start thinking about how digital can play a bigger part in your marketing. If you want to stay informed with the latest trends, sign up to the barometer blog at googlebarometer.blogspot.com.

are looking for, the more likely they are to use a search engine to find it. ‘When it comes to finding manufacturer sites, Ford.co.uk for example, people could probably guess that, but seven out of 10 people are still going to use a search engine to get there. When it comes to consumer reviews and ratings sites, 75 per cent of people will look for those via a search engine. It’s all about demystifying the large amount of information that’s out there. ‘Online usage when it comes to people buying cars is pretty dominant. Dealer visits are still critical but a visit to a dealership is becoming more of an affirmation of their intended purchase.’ Among a host of other fascinating insights into the way your customers are using the web to make their car-buying decisions, Rose revealed: 1. Year on year, there has been an increase of 27 per cent in the number of people carrying out offer-related searches to do with cars involving categories such as car finance, deals, discounts and upgrades. 2. Across the broader retail environment, that

HELD In association with car Care Plan

figure is 56 per cent. 3. Although vouchers and coupons may have been seen as a ‘little bit low rent’ in the past, things have changed with companies such as Groupon thriving like never before. 4. Brand loyalty is currently running at 48 per cent meaning that a Ford owner searching for a new car is less than 50 per cent likely to end up in another Ford. 5. 94 per cent of consumers use the internet at some point, meaning it is ‘key at every stage’. 6. January is the biggest month for car searches. Rose said the biggest challenge for car dealers was standing out online and in an interesting comparison to the way a supermarket is laid out, said your position on the ‘digital shelf’ was all-important. He drew comparisons with ‘endcaps’ in supermarkets – the shelves at the end of the aisles where clear offers can be displayed to attract customers and sell more products. Unsurprisingly perhaps, he was keen to highlight the ways in which Google can help car dealers make the most of web-based opportunities… by using the company’s ‘paid search’ facility as well as ‘natural search’. ‘When it comes to search advertising, there is no minimum commitment,’ said Rose. ‘You can pause your ad whenever you want, you can have the budget you want and most of all you only pay when when someone decides to interact with your ad. And that’s obviously by clicking through and visiting your website.’ Transparency is key too, with the ability to measure your return on investment. ‘You can say exactly what you want to the right customer at the right time. You can target to a radius around your dealership and you can even target by time of day,’ Rose added. ‘But there is a more fundamental way you can target your ad. And that’s by deciding the key words, the words you type in, when your ad appears.’ Perhaps the key point from Rose was that your website has never been more important to the success of your business than it is now. [CD] CarDealerMag.co.uk | 69

DATA FILE.

TopTips n

Our helpful feature that gives you hints and tips to improve your business

Run a brilliant car launch New models arrive in showrooms every month, but how should you launch them to punters? Dave Brown reports

aunch night. It’s the event you’ve been planning for months. The invitations have been sent out and accepted, the showroom’s looking fantastic and the sensational new car that’s just arrived for you to promote is looking great. But how can you be sure the event will be a success? Organised and promoted properly, a launch night can be a wonderful way to get some great PR, maybe achieve some coverage in the local press and online, and hopefully of course, do some deals too. But as with everything in life, there can be pitfalls – and avoiding them is key. Car Dealer has spoken to some experts in the field of hosting successful launch nights, all of whom had their own hints and tips for success. Andrew Jeffery is dealer principal at Hatfields Jaguar, Sheffield, which currently ranks top in Jaguar’s nationwide ‘customer loyalty programme’ for showroom experience – as voted for by customers. Jeffery said making a good impression was hugely important. ‘With a launch event you need to make yourself memorable to local people, businesses and suppliers – in short, your current and future customer base,’ he told us. ‘Making the right first impression will ensure people want to return, creating leads and sales. ‘First, get your intelligence right: Prepare an invitation list of customers and prospects who could be interested in the model or initiative you are introducing. ‘Always include your ‘‘best’’ customers on any invite list. Also, ensure that you send out the invitations early – three weeks is close enough to be relevant, but far enough away to be free in a customer’s diary. ‘Send eye-catching invitations by letter, card or email – or even via social media. Be sure to request a reply, that way you can monitor responses and plan accordingly. ‘On the night, staff must be smartly dressed with 70 | CarDealerMag.co.uk

name badges, helping arrivals park, welcoming them at the door and providing umbrellas if raining. ‘Ensure staff have the requisite knowledge to answer any questions they may be asked. Within your showroom, don’t spare expense on top-quality catering; provide interesting refreshments and a waiting service. Include a wide selection of soft drinks and wine, too.’ Jeffery added that a good way of drawing in a new crowd is to ‘spice-up’ the event with something else for the guests to see and experience, such as a classical music quartet, a jewellery and fashion display or art exhibition from a local painter. ‘You should also keep any speech concise, or better still get a local celebrity or manufacturer

‘Making the right first impression will ensure people want to return.’ representative to deliver it,’ he added. ‘If the product has a local link, highlight this. ‘Afterwards, stay in contact with your guests. Follow-up on any leads created on the night promptly.’ Jeffery explained a business card prize draw and an attendance register will allow you to store people’s details and forward any future offers that may be of potential interest. And he said holding the event on a weekday evening is better. ‘Quite simply, people are more likely to be available to attend,’ he added. ‘Following these simple rules has given us great post-event sales success in the past. I’d advise other dealerships to try them out.’ But are there any other things to think about? Could things perhaps be kept a little more simple? That was certainly the approach advocated by

hy hyhy hyh yhyhy Gordon Wright, dealer principal at Wrights Mazda, East Anglia. He told us: ‘Whether you are launching a new dealership, as we recently did, or introducing a new model, I think a key theme has to be ‘‘keep it simple’’. ‘To offer visitors greater flexibility we decided to hold a launch weekend, not just a launch night. Naturally we invited all our existing customers and prospects, and we teamed up with our local radio station to both promote and attend the event. ‘In the showroom we had a Mazda full of ‘‘celebrity’’ dummies and a competition to guess their identity and win a flat-screen TV. The radio station broadcast live from the dealership several times over the weekend and we attracted almost 300 visitors – in line with our target. ‘We kept the catering simple, using nonperishable items, so we could quickly bring in more

DataFile CONTENTS.

or save and store any excess – as visitor numbers are invariably hard to predict. ‘In addition to the radio tie-up, we ran two press adverts/invitations in the week before the event. But there is sometimes a tendency for people to ‘‘see-andforget’’ press adverts and I recommend an on-the-day radio promotion to remind and lure visitors.’

PLAN

Proper planning is crucial for success, according to those in the know at Skoda. The company told us: ‘Issuing invitations as early as possible, and targeting the right customers is fundamental to the success of the event, and organisers should ensure suitable time has been given over to building a considered and effective mailing list. ‘Ensure you hold regular meetings to keep planning on track, appoint clear responsibilities and don’t leave anything to chance. When planning

Right click 73 Auctions 75 Net Gains 77 Shares 79 The Statistics 80

your event, choose a trading time of typically moderate or low activity, such as a Wednesday or Thursday night to help to draw the maximum number of attendees. ‘The most important part of any event is the venue, and never more so than when your venue is also your place of business. Consider lines of sight, how the customer will negotiate the showroom, and how to best place marketing materials. Simple, powerful point-of-sale that focuses on offering the customer added value will prove more effective in driving sales than novelty offers.’ Catherine Sleigh, head of press and PR for Skoda, told us: ‘To ensure a high turnout, it’s really important that your launch night is well promoted in your immediate area. Contacting local papers and radio stations is a great way to publicise your event; while forming partnerships with local caterers or suppliers can be the ideal way to reduce

SMMT sales figures 82 Suppliers guide 84 Trader directory 86 Jobs 88 Time Is Money 90

the cost of your event and build relationships with businesses in the area. ‘Once you’ve handed out flyers in the local area and secured a mention in your local paper, start thinking outside the box. ‘Personally invite relevant key people in your community, such as suppliers (actual and potential), the mayor, important officials, local business owners and local owners’ clubs. ‘If you have any social media channels, make sure you are delivering the right messages to the right audience. Consider tailoring communications to suppliers, customers and key opinion formers separately, using a copy writer where possible to make the invite special. Ask those who have been invited to RSVP and follow up diligently. ‘And ensure that prior to the event sufficient data capture measures are implemented; building your database is vital to the continued success of the dealership.’ Sleigh added that providing an incentive to customers to come along would pay dividends. She advised: ‘Provide food and drinks, run competitions or raffles, and find local musicians to perform on the night. Skoda has classic car models that its retailers can borrow to display in their showroom at events. You might try something like an event discount to consumers who make an order or book a test drive at the event.’ Photography was another area that ought to be considered, she told us. ‘Book a photographer – great-quality pictures will always be useful for targeting local press post-event and the initial expense will pay for itself. Consider what imagery you may need for future marketing materials, staff profiles, local society pages and stock imagery of your showroom. This will ensure you draw the most value out of the initial outlay.’ [CD] With thanks to... Andrew Jeffery, hatfields.co.uk Gordon Wright, wrights-motors.co.uk Catherine Sleigh, skoda.co.uk

CarDealerMag.co.uk | 71

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A website should be a digital dealership There’s never been a better time to get your internet presence right. And using Software as a Service could be the way to go

ccording to studies, 94 per cent of people undertake research online when buying a car. Consider this fact in conjunction with the turmoil in the UK car market and it’s clear that now is the time to get your web presence right. Car dealers should stop thinking of a website as a marketing tool; they should consider it a ‘digital dealership’ – open 24 hours a day. Software is fast evolving to enable dealers to make the web profitable. However, if your website isn’t easily adaptable, you could be losing out on sales of cars or services. Some platforms require a considerable investment, and to remain up-todate, must be upgraded at extra cost. Increasingly, dealers are turning to Software as a Service (SaaS) solutions which are 100 per cent internet-based. These can be automatically updated, integrating new technologies and features quickly and simply allowing you to get the best out of your digital dealership. They also ensure that you remain on the curve of web design. An additional benefit is that these systems are quick to build and are paid for on a monthly basis, ensuring cost-effectiveness. Modern platforms mean dealers aren’t bound

Having the right web platform is crucial

by standard layouts and functions; rather they can help create a unique website with in-built tracking and marketing tools and optional functional additions, for example CAP data and finance calculators. A well-designed, content-rich digital dealership is a useful tool to customers, and they are more likely to enquire if a website appeals to them. Your digital dealership should still be userfriendly, requiring minimal administration to produce the maximum return on investment. Modern content management systems (CMS) are very intuitive, thus only basic staff training is required. Updating stock, for instance, saves you time through integration with a selection of datafeeds including eBay and Motors. Effective marketing campaigns help drive traffic to your digital dealership, potentially leading to sales. Web-based systems can be developed with easy-to-administer organic search engine optimisation (SEO) built-in. As well as this, email marketing campaigns can be sent to customers as another lead-generating tool. Perhaps the biggest advantage of a web-based digital dealership platform is that it can evolve as

more functionality becomes available. Some of this is simple improvements to the site, but more importantly when new ‘bolt-on’ software comes out, you will be able to integrate these with complete confidence in their compatibility. The main source of dealership profit is aftersales and the trend is towards offering parts and services online. DMS-integrated service booking, service plans, parts shops or tyre sales software are becoming more common as dealerships look to derive profit from the web. This trend is set to continue, so it is important to have a platform that allows this software to be added as it becomes available in a cost-effective manner. Having the right web platform in 2012 is possibly more important than ever. Make sure your website is creating leads, capturing data, being used to market your business and, ultimately, making money for you.

Who is Tim Smith?

He is commercial director for serial award winners GForces. Learn more about how he can help you at gforces.co.uk or call 0845 658 9290.

‘Modern platforms mean dealers aren’t bound by standard layouts and functions.’

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Average values jump by £250 in December Demand increases too in a shortened trading period

A small drop MANHEIM’S latest Market Analysis for Cars reports that average wholesale used car values fell by 0.6 per cent (£41) to £6,528 in 2011. This relatively small drop was in spite of a significant ageing of the vehicles sold from 51 to 55 months, and an increase in average mileage of 1,831 to 55,436 miles. Fleet vehicle values fell by 4.8 per cent (£280) to £5,561 in 2011, average age increased by three months to 51 months and mileage increased by 3,519 to 62,200 miles. Dealer part exchange values saw an increase of 4.3 per cent (£96) to £2,321 with average age up by three months to 99 months and mileage up by 1,816 to 76,170 miles.

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Are motorists making the switch to electric power?

verage used values increased by four per cent or £250 in December compared to November, says BCA. Their Pulse report showed the rise which was due to increased demand over a shortened trading period and reduced volumes. Average values rose to £6,451, the highest figure on record since Pulse began reporting in 2005. Some of this was down to model mix, but the increase also reflects the very competitive trading environment in December. Average values have risen by more than eight per cent in the past two months. The bulk of the increase was felt in the fleet/lease sector where values improved by £270 (3.6 per cent) to £7,658 – reaching the highest monthly average figure since January 2011. While values fell in the part-exchange sector from November’s record-breaking figure, demand for budget vehicles remains exceptionally strong, says the auction firm. Values rose for nearly-new models by just over £1k to reach £19,963, a result of model mix in a very low volume sector

Henstock

and a number of special sales events staged during the month. BCA’s communications director Tony Gannon said: ‘December provided another relatively strong performance in the used car market, as professional buyers competed strongly for stock in the run-up to Christmas – a trend we have seen over a number of years now. ‘However, it is worth factoring in the much-reduced trading period and reduced headline volume – down by some 37 per cent – which means model mix has a bigger role to play in average values during December than at any other time of the year. ‘Otherwise, the overall picture remains very similar to recent months, with a good balance between supply and demand.’ Fleet values improved for the second month running and reached £7,658 – the second highest average value in 2011. CAP performance improved marginally to 96.48 per cent and year-on-year values were ahead by £423 or 5.8 per cent.

Aston Barclay’s purchase strengthens its position AUCTION firm Aston Barclay has announced it has completed the purchase of a new car auction site. The multi-million-pound investment by Aston Barclay Group will see the redevelopment of a former four-and-a-half-acre site previously occupied by Motor Auctions Leeds. Strategically placed, the acquisition of the Hillidge Road site, south of Leeds and close to the M621, further strengthens Aston Barclay’s position in the marketplace and will complement its centres in Chelmsford, Essex, Westbury in Wiltshire and Prees Heath, Shropshire. Initially, Aston Barclay will stage two sales a week, disposing of up to 300 cars and LCVs. Tim Hudson, Aston Barclay’s managing director, said: ‘The acquisition of the Hillidge Road site in Leeds is strategically important to Aston Barclay Group as it completes our national footprint.’ The new site is scheduled to open in April.

ith several new electric models due to be launched during 2012, and the Plugin Car Grant now in place, are we on the cusp of a revolution in fuelling our cars? Buying an electric car is now a real option for new car buyers – but how will the used market react to these cars? Professional buyers have yet to see many examples of electric vehicles, so any reaction is hard to judge at this stage. There is certainly a lot of interest, however, but there is an almost total dearth of reliable information about the wholesale value of these vehicles. Anecdotally, motorists are said to have concerns over the front-end costs of electric vehicles, which could mean that examples that do reach the used market will have to be competitively valued if they are to be remarketed successfully. There are also questions regularly raised over battery life and range anxiety – research shows that EVs are typically used in multi-vehicle families as a runabout for short journeys, with traditionally-fuelled vehicles being used for longer trips. Does this mean that single-car households are less likely to join the electric vehicle revolution? Motorists’ concerns also focus on how to charge the vehicle. And on the open road, charging becomes a more contentious issue. Relatively few rapid EV charge points are available across the UK at the present time, and while the major conurbations are quite well served, as you move away from our bigger cities, the gaps between charging points widen considerably. Of course, the traditional fuel network offers a choice of perhaps five or six garages in every town. With the relative newness of EV technology in mass market terms, it is probably too early to worry about the wider ramifications on the used market. However, it is inevitable that electric vehicles will be start to be traded and part-exchanged over the coming months so it is worth considering what your strategy will be in advance. Will you power up... or pull the plug?

‘Motorists are said to have concerns over the front-end costs of electric vehicles.’

Who is Simon Henstock?

Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644. CarDealerMag.co.uk | 75

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The ‘Zero Moment of Truth’ has arrived Remember that decisions are being made before customers pay you a visit

t was once thought a physical impossibility that a human would ever run a mile in under four minutes. Yet following Roger Bannister’s achievement in 1954, 16 runners went on to do the same thing in the following three years. It’s not that human evolution had suddenly taken a spring forward – it was just that there had been a change in mindset. This month, I have a simple task for each reader of this magazine. Just key the letters ZMOT into your search engine and soak up as much information as you possibly can. Maybe unsurprisingly, the term has been coined by Google, and in my opinion highlights the continued impact of one of the biggest shifts in online consumer behaviour. If you take your web strategy seriously then ZMOT is something that you cannot afford to ignore. It stands for Zero Moment of Truth, and it refers to that period of online consumer research that a customer undertakes prior to making contact with a seller. Traditionally, there has been a three-step mental model of marketing: The STIMULUS, where an advertisement for a car first attracts attention. Secondly, the FIRST MOMENT OF TRUTH, where the customer

‘It is so easy for people to share how well they have been informed by you.’ calls in to the showroom to look at the vehicle and goes on to buy the car. Finally, there is the SECOND MOMENT OF TRUTH, where the customer enjoys their new car. The net has now added the ZMOT to this list. It slots neatly in between the Stimulus and the First Moment of Truth, and involves the customer going online to look at reviews for the car, or to find out more about customer service at your dealership. In more and more instances, the customer has actually made their buying decision BEFORE they arrive at the showroom. The cold facts are that online decision-making is rocketing, yet many motor dealers are only spending a fraction of what they should be on online marketing. Your online customers want to research, learn,

explore, and then come to you ready to buy with confidence. By not giving them the ability to conduct this research in an effective manner then you will more than likely send them to a competitor. And don’t forget that it is so easy for people to share how well (or badly) they have been informed by your website or business. So if you allow people to research their next purchase online, they will be more likely to tell people how helpful you were. It is possible for you to make it easier for people to buy from you at the Zero Moment of Truth stage. You could incorporate customer ratings and testimonials for your business, or include proven functionality such as the integrated Codeweavers finance calculation and payment search services.

Who is Martin Hill?

Martin is commercial director at Codeweavers. Learn more about how he can help you at Codeweavers.net or call 0800 021 0888.

CODEWEAVERS CELEBRATE THEIR 10TH BIRTHDAY IN 2012 0800 021 0888 www.codeweavers.net contactus@codeweavers.net

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Looking back on a tough 12 months for motor retailers 2011 started strongly for many groups... but then the wheels started to come off the market

NOT EVERYONE HAD A BAD YEAR! Mini achieved record sales in 2011

he year 2011 proved to be a very tough one for the listed motor retailers and, looking back at it, it was very much a game of two halves. During the first part of the year, we had strong results and positive trading statements from nearly all of the groups, leading to a steady position for most and a nice share price boost for Pendragon, Lookers, Vertu and Cambria. As the wheels started to come off the retail market during the second quarter this fed through to steep share price declines for all of the listed motor retailers during July and August. Principally this was brought about by gloomy forecasts over the UK economic outlook. However Inchcape was also hit by a downturn in the global economic recovery meaning that they also felt the chill. Prices have been relatively static during the final quarter of the year as the market remains uncertain over when the recovery will start, with there certainly being no light at the end of the tunnel at present.

â&#x20AC;&#x2DC;The market remains uncertain over when the recovery will start.â&#x20AC;&#x2122; Looking back at 2011 overall, therefore, the listed motor retail stocks have proved a poor place to invest. Vertu was the only stock to have posted a gain (albeit a very minimal one at 0.05 per cent). The remaining stocks have suffered various declines as follows; Pendragon (63 per cent decline, albeit with a significant undersubscribed rights issue clouding the picture), Cambria (32 per cent), HR Owen (31 per cent), Caffyns (23 per cent), Lookers (18 per cent) and Inchcape (18 per cent). The outlook for 2012 appears very uncertain with little cheer to be found in new vehicle sales; nearly new vehicles providing a potential problem for some brands in particular and likely to hit used vehicle values; and aftersales departments being hit by a combination of declining usage

IN SPITE of a tough market with overall volume down 4.4 per cent on 2010, several manufacturers have posted record sales figures. Hyundai has seen sales grow 2.3 per cent on 2010 figures to 63,557 units, with the bestselling i10 topping 20,000 units. Skoda UK has also beaten records, with more than 45,000 finding homes in 2011, up 9.2 per cent on the year before. A total of 21,889 of the cars went to fleets, also a record for the brand, taking its share over two per cent for the first time to 2.2 per cent of the fleet sector. VW Group sibling Seat also beat its record UK sales figure, with just over 36,000 cars sold, trumping its previous best of 34,790 set in 2007. The Ibiza family accounted for more than half of all the cars sold, and it was the most

from customers, the postponing of service work to save money and, for most brands, a declining vehicle parc. Among the individual listed stocks, the most activity this month has come from Caffyns. A disaffected minority shareholder has written to fellow shareholders criticising the running of the business which prompted the chairman to issue a formal response. This represented a robust defence of the way the business is being run and the strategy being adopted. Pendragon has also completed the purchase of a BMW dealership in Leeds marking its first acquisition for a while. Whether this is opportunism or the start of a

successful year for the model in its 27-year history. Mini also achieved record sales of more than 50,000 units with the new Countryman contributing 13,000 of them in its first year on sale, offsetting a small fall in sales of the hatchback and cabrio numbers. Alfa Romeo posted its strongest sales since 2002 with the MiTo and Giulietta helping sales to rise by 30.8 per cent over 2010s performance. Audi, Bentley, BMW, Lexus, Mercedes and Rolls-Royce also posted year-on-year increases in the UK in what has been a good year for the premium brands at the expense of the traditional European and Japanese volume producers where only Nissan and VW bucked the downward trend.

trend we will have to wait to see. The economy looks like it will provide little cheer to lift the share prices of the listed motor retail stocks. Short-term gains will therefore be made in those businesses who are able to calm nerves and prove they can make significant profits despite lower volumes. During 2012 and the start of 2013, we also expect the listed groups to continue positioning their businesses in advance of the ending of the current Block Exemption regulations. This is likely to produce a slew of acquisitions and disposals as groups work to manage their brand portfolios before the new regulations come into force.

Who is Mike Jones? Heâ&#x20AC;&#x2DC;s executive chairman of ASE Global. If you want to talk to him about his column call 0161 493 1930 CarDealerMag.co.uk | 79

DATA FILE.

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

The most searched-for cars on Motors.co.uk

Most popular manufacturer 1 Ford 2 Vauxhall 3 Volkswagen 4 BMW 5 Audi 6 Mercedes-Benz 7 Toyota 8 Peugeot 9 MINI 10 Renault Most popular models 1 Ford Focus 2 BMW 3 Series 3 Ford Fiesta 4 Volkswagen Golf 5 Vauxhall Corsa 6 Vauxhall Astra 7 Ford Mondeo 8 Renault Clio 9 Audi A4 10 Audi A3 most popular sub £10k cars 1 Ford Focus 2 Ford Fiesta 3 Vauxhall Corsa 4 Vauxhall Astra 5 Renault Clio 6 Volkswagen Polo 7 Peugeot 206 8 Vauxhall Zafira 9 Vauxhall Vectra 10 Ford Ka

Low confidence suppresses 2011 car registrations ... and it looks as though 2012 will be a tough year for dealers and manufacturers

emand for new cars was down 4.4 per cent in 2011 compared to the year before, figures released by the SMMT reveal. Despite the demise of the Swedish brand Saab, Renault axing some of its best-known models, and a handful of dealers going into administration, a total of 1,941,253 cars were registered in 2011. This, however, was down 4.4 per cent – or 89,593 units – on 2010, with the private market recording a drop in volumes. The 2011 figures were affected by a weak start to the year contributing significantly to the 4.4 per cent decline, but a stronger second half helped remedy the situation. By the year’s end, the 2011 market was just 1.1 per cent down – despite December’s registrations falling 3.7 per cent – the 10th monthly decline in the year. The year’s total figures were also helped by fleet sales, making 2011 finish ahead of the SMMT’s original prediction of 1.92m units made at the start of the year. ‘The decline in the retail market highlights an unchanging lack

of consumer confidence,’ said Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA). ‘While the economy remains fragile and the Euro crisis continues to affect stability, consumer confidence remains very low. Many consumers are finding their finances constrained due to inflationary pressure on household bills and travel costs. Those who do have money to spare are putting off larger purchases until there are signs that the economy is starting on a road to recovery.’ David Raistrick, UK manufacturing leader at Deloitte, the business advisory firm, believed the 2011 figures were in line with their predictions. ‘The slight dip in December’s new car registration figures, and the total for 2011 is broadly as expected, reinforcing our forecast that 2012 is likely to be a difficult year for the automotive sector,’ he said. ‘Despite putting on a brave face, the market is far from settled and various economic and environmental factors could severely impact organisations operating in this sector.

‘We believe total new car registrations for 2012 will be relatively low – around the 1.84m mark. There is no doubt that 2012 is going to be a tough year. I expect there will be a levelling-off for sales in new and used car sales, but with fleet sales remaining broadly static at 2011 levels.’ The NFDA is urging the government to take action, though. ‘We would urge the government to take measures now to secure the UK

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre 80 | CarDealerMag.co.uk

..in association with

Kelleher

Market insight

Gaining the advantage

economy and to bring back consumer confidence,’ added Robinson. ‘If the government does take action we believe that the economy will respond in a positive way.’ ‘Weak economic growth will make trading conditions tough in 2012, but record numbers of new and updated models, significantly improved fuel efficiency and exciting new technologies will help to encourage consumers into showrooms,’ said the SMMT’s chief executive, Paul Everitt.

‘Business and consumer confidence will be the key to a successful year, so it will be important that the government delivers on its growth strategy and helps to resolve instability in the Euro Zone.’ ‘The NFDA forecast for the new car market, in conjunction with Deloitte, suggests that the total number of new car registrations for 2012 will be in the region of 1.84m, a drop in the market from 2011,’ concluded Robinson. Turn the page to read 2011’s and December’s figures in detail.

ver the last few months, I’ve used this column to highlight some of the key consumer trends impacting used car advertising and by extension used car sales. The increasing use of the internet via smartphones, the emerging appetite to purchase services and vehicles via ‘deal of the day’ websites such as Groupon and Wowcher, and the potential to harness the time spent on social media sites such as Facebook to promote your dealership are just some of the themes that will undoubtedly continue to grow in importance. However, with predictions for the UK economy ranging between broadly stable to negative growth, the critical question for most marketing directors and dealer principals is how best to spend the time and resources at their disposal to generate most sales. The continued growth in sales of smartphones, the 300 per cent increase in visits via mobile that we’ve seen on our site year-on-year and the recently published Google ‘Gearshift 2011’ report make a pretty compelling combination in terms of investing what resource you do have in a creating the best possible mobile version of your site. In the UK this year it is predicted that 60 per cent of all new handset sales will be of the smartphone variety, with a knock-on effect in terms of time spent online. In terms of used car-buying related activity, 21 per cent of smartphone users found out more about a particular brand using their handset and 29 per cent located a dealer using their device. However, the most compelling statistic within the report is the fact 51 per cent of users said that information about buying a car was hard to access via their handset. While this is faintly damning of automotive websites as a whole, it is also illuminating as it highlights a potential source of competitive advantage; the dealer that can get its mobile offering right is the one most likely to hold the interest of the buyer and convert that interest into a sale.

Who is Dermot Kelleher?

He is head of research at Motors.co.uk. Find out more about how the portal can help you on their website or call 0845 265 6000.

CarDealerMag.co.uk | 81

DATA FILE.

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

Best selling cars of 2011

#*((&45 3*4&4

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#&45 4&--&34 80345 4&--&34 505"- $"34 40-%

Graphic: Carbuzz.co.uk

new car choosing made easy

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre 82 | CarDealerMag.co.uk

.co.uk

..in association with

SMMT sales data Dec/year to date

HONDA -20.54%

INFINITI 64.66%

Figures supplied by SMMT

December Marque

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Cadillac Chevrolet Chrysler Citroen Corvette Daihatsu Daimler Dodge Fiat Ford Honda Hummer Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Saab SEAT Skoda smart Ssangyong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total

2011

78 608 53 6,310 51 7,535 0 705 109 4,030 0 0 0 0 2,203 14,689 2,261 0 5,422 34 813 213 2,509 2,747 683 10 18 1,635 4,815 111 4,278 469 5,789 21 4,643 718 21 4,548 8 2,485 2,878 335 51 141 1,222 5,495 15,782 10,549 2,001 61 51 119,188

% market share

0.07 0.51 0.04 5.29 0.04 6.32 0.00 0.59 0.09 3.38 0.00 0.00 0.00 0.00 1.85 12.32 1.90 0.00 4.55 0.03 0.68 0.18 2.11 2.30 0.57 0.01 0.02 1.37 4.04 0.09 3.59 0.39 4.86 0.02 3.90 0.60 0.02 3.82 0.01 2.08 2.41 0.28 0.04 0.12 1.03 4.61 13.24 8.85 1.68 0.05 0.04

2010

Year to date (YTD) % market share

2011 % Change

87 1,077 71 5,075 48 7,373 0 894 91 3,556 0 0 0 23 2,839 13,953 3,828 0 3,108 44 1,092 186 2,464 2,236 218 51 26 2,443 5,324 10 4,774 855 6,403 37 6,178 613 38 6,007 750 2,039 2,895 443 3 424 1,590 4,853 16,548 10,828 2,332 55 35 123,817

0.07 0.87 0.06 4.10 0.04 5.95 0.00 0.72 0.07 2.87 0.00 0.00 0.00 0.02 2.29 11.27 3.09 0.00 2.51 0.04 0.88 0.15 1.99 1.81 0.18 0.04 0.02 1.97 4.30 0.01 3.86 0.69 5.17 0.03 4.99 0.50 0.03 4.85 0.61 1.65 2.34 0.36 0.00 0.34 1.28 3.92 13.36 8.75 1.88 0.04 0.03

-10.34 -43.55 -25.35 24.33 6.25 2.20 0.00 -21.14 19.78 13.33 0.00 0.00 0.00 -100.00 -22.40 5.27 -40.94 0.00 74.45 -22.73 -25.55 14.52 1.83 22.85 213.30 -80.39 -30.77 -33.07 -9.56 1,010.00 -10.39 -45.15 -9.59 -43.24 -24.85 17.13 -44.74 -24.29 -98.93 21.87 -0.59 -24.38 1,600.00 -66.75 -23.14 13.23 -4.63 -2.58 -14.19 10.91 45.71 -3.74

1,291 11,563 1,024 113,797 1,037 116,642 0 12,524 1,182 68,464 0 3 0 0 41,612 265,894 50,577 0 62,900 382 13,787 2,146 53,615 37,637 8,269 329 388 31,219 81,873 360 50,138 9,843 96,269 543 94,989 6,382 446 68,449 4,138 36,089 45,061 5,044 194 2,634 20,295 73,589 234,710 179,290 32,657 1,115 863 1,941,253

%market share

0.07 0.60 0.05 5.86 0.05 6.01 0.00 0.65 0.06 3.53 0.00 0.00 0.00 0.00 2.14 13.70 2.61 0.00 3.24 0.02 0.71 0.11 2.76 1.94 0.43 0.02 0.02 1.61 4.22 0.02 2.58 0.51 4.96 0.03 4.89 0.33 0.02 3.53 0.21 1.86 2.32 0.26 0.01 0.14 1.05 3.79 12.09 9.24 1.68 0.06 0.04

2010

%market share % Change

1,425 8,834 1,080 99,828 993 109,418 24 13,678 1,392 73,317 2 170 2 789 53,092 280,364 63,652 4 61,752 232 16,417 2,078 56,114 37,272 6,202 577 456 45,449 74,977 282 43,894 12,209 89,681 761 109,324 6,784 767 95,608 5,898 32,935 41,240 7,651 242 3,897 21,484 87,396 247,265 174,655 37,435 1,050 798 2,030,846

0.07 0.43 0.05 4.92 0.05 5.39 0.00 0.67 0.07 3.61 0.00 0.01 0.00 0.04 2.61 13.81 3.13 0.00 3.04 0.01 0.81 0.10 2.76 1.84 0.31 0.03 0.02 2.24 3.69 0.01 2.16 0.60 4.42 0.04 5.38 0.33 0.04 4.71 0.29 1.62 2.03 0.38 0.01 0.19 1.06 4.30 12.18 8.60 1.84 0.05 0.04

-9.40 30.89 -5.19 13.99 4.43 6.60 -100.00 -8.44 -15.09 -6.62 -100.00 -98.24 -100.00 -100.00 -21.62 -5.16 -20.54 -100.00 1.86 64.66 -16.02 3.27 -4.45 0.98 33.33 -42.98 -14.91 -31.31 9.20 27.66 14.23 -19.38 7.35 -28.65 -13.11 -5.93 -41.85 -28.41 -29.84 9.58 9.27 -34.07 -19.83 -32.41 -5.53 -15.80 -5.08 2.65 -12.76 6.19 8.15 -4.41

CarDealerMag.co.uk | 83

data file.

Alex Goy

all torque

Why being a friend of social media is crucial

ocial media can be your friend if you use it properly. It really can be. You see, despite the fact it’s been around for a few years now (Facebook’s AGES old and Twitter turns six this year, bless it) most people really haven’t got the foggiest about it. It’s time to learn, really, or else you’ll end up looking like the people who sold me my Mini. One-way fools. The great thing about social media is the fact that it’s two-way communication. You can join conversations and give opinions, start topics of debate and generally get in the spirit of things. Or you can do what my local dealer in Cambridge did when it first joined – tweet link after link telling people you have a great range of car X and model Y. When I confronted the chap behind that approach, I was swiftly told that he was tweeting for a car dealership after all – why would he have to say anything other than: BUY MY CARS! Well, there’s a simple answer, folks. IT’S CHUFFING ANNOYING. I say this as an outsider – I write about the industry. I love cars. I’ve only sold a couple, privately, to friends and family and never by the medium of Twitter. I do use Twitter for work, mind. I use it to promote my work as well as discuss what’s going down both in my own and the automotive world. There’s a fine line to tread, one that I’m sure I’ve screwed up on numerous occasions. But as a digital ‘shop front’ you can’t think of it as an extension of your website. Shoving offers in people’s Twitter/Facebook feeds is going to lose you followers and fans. Thankfully my local dealer has since become less about tweeting link after link and given some interesting comment. Sure, the odd link appears now and then, but that’s no bad thing. Hey, they are a car dealer – cars need to be sold. Now there’s a more human face on things, it’s easier to see that there’s a business behind it. Essentially – be yourself online (unless you’re in the BNP, mind) and selling cars will be easy. Honest. Ish.

‘There’s a fine line to tread, one that I’m sure I’ve screwed up on.’

Who is Alex Goy?

He‘s a motoring journalist with a lot to say. He also produces a brilliant podcast. Check it out by typing bit.ly/alexgoy into a browser 84 | CarDealerMag.co.uk

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The i40 has an enormous task on its hands. Not only is the Korean firm pitching it against established D-segment cars like the Ford Mondeo and Vauxhall’s Insignia, but the i40 is the car that is showcasing Hyundai’s new design and identity direction for a good few years to come. A total of 3,000 i40s are expected to be sold in a full year, with fleet companies snapping up 60 per cent. Hyundai has had a crack at the D-segment before – remember the Sonata? – but with generally poor

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We’re fans of the Chevy Cruze saloon as, like the Skoda Octavia, it offers something a little unusual. The hatchback version of the Cruze has lost some of its individuality in order to become more mainstream, and the looks have suffered for that. However, for the majority of retail and fleet buyers, this won’t matter and the car will score highly with them for offering good spec and good prices.

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Price: £13,995, tested in Issue 42

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CarDealerMag.co.uk | 85

data file.

James Litton trader tales

How Renault showed a complete lack of respect

hen Renault announced the reduction of both their retail network and model range before Christmas, it showed a complete lack of respect to those companies and individuals who

represent them. As you might recall, the news broke pretty much in the middle of the festive season with the French firm delivering the news that more than 50 of its dealers across the UK would be closing during 2012 – and that several of its best-known cars, including every vehicle in the Laguna range, would be discontinued. The firm came in for considerable criticism after the move, not least from the editor of this magazine who wrote a blog that was highly critical of Renault’s timing. I think there has been a shift of power between manufacturers and retailers of what I would call marginal brands. Ten years ago there were very few franchise open points. Today very few manufacturers can boast that luxury. It could be argued that retailer weakness is to blame for many of these opportunities and there is no doubt that high debt levels have led to the collapse of many businesses who could not support the volume or profit necessary to stay afloat. However, despite any shortcomings retailers may have, they are only as good as the products they sell. In that same period 10 years ago, very few operators would have considered a Fiat or Kia franchise. That would not be the case today. The introduction of the 500 changed the fortunes of Fiat dealers dramatically. Kia have moved from strength to strength since the launch of the Picanto, and the Sportage is the envy of many German brands. In 2002, Renault had the Clio and Scenic, both market leaders and very desirable products. Having just had four years of used car experience, I can say nothing positive about Renault and their current model range. I’ll finish with a direct message to Renault: I would think long and hard before you behave in a way which might antagonise those dealers you have left any further.

‘I can say nothing positive about Renault.’

Traderdir Alfa Romeo

Alfa Romeo

Sturgess Alfa Romeo

Benfield Alfa Romeo

Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. n Call for immediate bid. 07501 257220 or 0191 211 2200

Mangoletsi (Holdings) Ltd. London Road (A50), Allostock, Knutsford, Cheshire, WA16 9NS Tel: 01565 722899 Fax: 01565 722229

Aston Martin

Audi

HWM Aston Martin

Wimbledon Carriage Company Limited

Walton & Epsom Audi

John Crisp 07885 211872

Mark Loughnane 01932 220404 07739 519306

BMW

Bentley

Williams Rochdale

Vines Group

Harwoods

Bentley

Chrysler

Daihatsu

Jack Barclay Bentley

Horsham Car Centre

Alan Nicholas 07703199478 alan@horshamcarcentre.co.uk Best buyer for all late Chrysler/ Jeep

Stephen Barnard 0208 504 0017

Daihatsu

Ferrari

Proven Daihatsu

HR Owen Ferrari Nick Carey

Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk n Buying used Alfa Romeos up to five years old

Paul Spires paul.spires@hwm.co.uk 01932 240611 07850 326755

Craig Fenlon 01706 717700 07808 092110

Derek Bennett 020 7629 7444 07713 887 88

Keith Pattison 01428 652554 07771 547406

Dominic McConnon 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net.co.uk n Buying used BMWs up to five years old

Simon Elkin 01798 877211 07803 088711

Woodford Motor Co Ltd

Monza – Ferrari

nick.carey@hrowen.co.uk 07824 362229

Andrew Ludlow ferraribuyer@ntlworld.com 07889 305 053

Ferrari

Fiat

Maranello Ferrari

Glyn Hopkin Ltd

Sturgess Fiat

John Dutton 07817 019 456

Glyn Hopkin 07730 711889

Ian Callis 0116 254 1717 icallis@sturgess cars.co.uk n Buying used Fiats up to five years olds

Who is James Litton?

James is sales manager at Tony Purslow Mercedes Benz, Guildford. He always has something to say about the industry he loves. 86 | CarDealerMag.co.uk

To have your details included here log on to CarDealerMagazine.co.uk/trader-directory.htm

ectory

Finding the right cars at the right prices isn’t always that easy. On top of that, selling cars that you don’t necessarily want to put on the forecourt can be tough too. Our Trader Directory aims to alleviate these problems. Instead of thumbing through endless pages in

price guides looking for the right trader, you can consult the Trader Directory, either in the magazine or online, and find them right away. If you’d like to be included you can submit your details in the Directory find out how at the bottom of this page.

Ford

Honda

Benfield

Benfield Alfa Romeo

Lifestyle Ford

Honda

Thames Honda Group

Honda

Hyundai

Jaguar

Holdcroft Honda

Bushey Heath Hyundai

Hatfield Hyundai

Sturgess Jaguar

Charles Hurst Jaguar

Jeep

Kia

Lexus

Land Rover

Horsham Car Centre

Tower Hill Garage

Chapelhouse Kia

Lexus Twickenham

Sturgess Land Rover

Des Sammon des.sammon@benfield-ford. co.uk 07831 828024

Luke Regan / Chris Thursfield 07971 543884 07813 737 921

Alan Nicholas 07703199478 alan@horshamcarcentre.co.uk Best buyer for all late Chrysler/ Jeep

Richard Walker 07748 177889

Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. n Call for immediate bid. 07501 257220 or 0191 211 2200

Mark Littler/Tim Barnes 0161 767 9500 07920 599 394 07787 921 222

Jon O’Donoghue 0208 420 5100 07976 177 959

Lee Gilmour 01923 263700 07768 367085

Andy / Neil 01925 570800 07891 531129 07825 311 297

Brayley Honda Mark Corr 07812 342 635

Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868 n Buying Used Jaguars up to five years old

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Jerome Chandiram 0208 845 3551

Stewart Begg 0208 938 1300 07534 927 821

Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6969 n Buying used Land Rovers up to five years old

Land Rover

mini test: Vauxhall INSIGNIA

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

Greg Wilcox g.wilcox@beadles-landrover. co.uk 07740 717209

This new 1.4-litre turbo unit is not that exciting, but it will keep the driver entertained for a little longer than a cardboard box.

Brandon Ware 0131 200 8888 0750 326 0186

Warren Butt 02380 283404 07860 530703

Price: £17,970, tested in Issue 43

Maserati

Mazda

Mini

Mitsubishi

Nissan

HR Owen

Lifestyle Mazda

Vines Group

North City Autos (Chingford)

Nissan

Ed Tyrrell 020 8524 8855 07736 610285 n Interested in low mileage FSH vehicles

Sturgess Nissan Ian Callis 0116 254 1717 icallis@sturgess cars.co.uk n Buying used Nissans up to five years olds

Nick Carey nick.carey@hrowen.co.uk 07824 362229

Mark Spowage 01293 845045 07974 770020

Dominic McConnon Buying used MINIs up to 5 years old 07776 246905 dominic.mcconnon @vinesguildford.bmw-net.co.uk

Toyota

Volvo

General

Get noticed

Want this spot?

Currie Motors Toyota

Sturgess Volvo

Barry Freedman

This slot has caught your eye...

Your advert here

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk n Buying used Volvos up to five years old

There’s also a more comprehensive list of traders on the website, updated throughout the month

01753 543105 07836 338694 barry.freedman@virgin.net n Trade buyer of PX vehicles anything up to £8k

... and thousands of your customers could be reading this too. For £30 per month, can you afford to miss out?

Making sure you’re in front of other dealers when they need to trade their cars on is vital. And for £30 per month can you afford to miss out?

Prices for six month listings: £29.99 On Website Or £39.99 for Magazine & Website.

Payments can be made online via credit or debit card. Or send your cheque made payable to Blackball Media Ltd to Car Dealer, Endeavour Quay, Mumby Road, Gosport, Hants PO12 1AH. Your details will appear in the next issue.

CarDealerMag.co.uk | 87

New Year… New Horizons…

Same standards of excellence The demands of the motor industry may have changed over the years. But our dedication to go the extra mile, ensuring we provide the best possible service to our candidates and clients, has remained consistent. This has kept us at the forefront of Automotive Recruitment for the last 25 years. Contact us today – speak to one of our industry professionals to see how we can contribute to your future success.

Web: www.jgauk.com

Tel: 0845 644 3003

THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS

For the latest news, views and Automotive jobs follow us on twitter @JohnGibsonAssoc

Are your key pieces in place?

Dynomec Ltd · Unit 5 · School Street · The Potteries · Castleford · West Yorkshire · WF10 1NZ

08450 212123

www.justcarjobs.co.uk

0845 544 1062 www.shiftacar.com

Urg Veh ent Del icle iver ies

AS USED BY THE AA & RAC

data fiLe.

At the start of a new year, let’s all resolve to reach those goals

year which is not a leap year is classed as a normal year. Last year and the years leading up to it were anything but normal, however – particularly with the economic and financial turmoil that never seemed to go away. In the run-up to the chiming of Big Ben on New Year’s Eve, fireworks, food, drink, singing and laughter would have been prevalent in all corners of the country as we said goodbye to a hard and tiring 12 months and welcomed the prosperous leap year which is 2012. Needless to say, many of us make new year’s resolutions where we make commitments to achieving new goals in the year ahead. A goal is seen as something that we want to achieve or a destination point we strive to get towards, normally by a certain timeframe, in either our personal or working lives. Meanwhile, exciting opportunities and events lie ahead for us as a nation this year. The Diamond Jubilee of Queen Elizabeth II marks the 60th anniversary of her accession to the throne. I am sure we all remember the Golden Jubilee in 2002 and the positive impact the celebrations surrounding that event had on our nation 10 years ago. This summer the Olympics return to London for a record third time having previously been staged in our capital city in 1908 and 1948. Team GB will no doubt be looking to surpass their superb achievements in Beijing in 2008 where they amassed 47 medals and in doing so recorded Great Britain’s best performance in more than 100 years. Of course, another notable occasion for us as a country

Jonathan

Such TIME IS MONEY

was when we hosted the World Cup finals of 1966. Sir Geoff Hurst made his mark on the world by being the only player to score a hat-trick in a World Cup final. Little did he know at the time that his second goal, often referred to as ‘the goal that never was’ would shape the rest of his life thanks to the Russian linesman Tofik Bahramov who waved his flag vigorously leading to the goal being awarded. Taking a step back from the day-to-day running of your business and deciding exactly what it is you want to focus on this year is very important. Plan a desired result for 2012 and have a thorough

‘Deciding exactly what it is you want to focus on this year is very important.’ commitment to making it happen. Ask yourself the following question, once you know what your goal is: ‘How will I feel if January 1, 2013 arrives and I have not achieved my goal?’ That will test the value as, if the answer is OK, the goal probably isn’t important enough to you to become reality and the drawing board calls. We have to make sure we score our goals in 2012 and, with the greatest respect to Sir Geoff Hurst, we cannot rely on a Russian linesman to award them, otherwise we risk our goal also being known as ‘the goal that never was’.

Who is Jonathan Such? Such is regional sales manager for First Response Finance. You can contact him on 07917 781608 or email jons@frfl.co.uk

Coming next month

If there’s something you think we should be covering get in touch. Our details are on page three 90 | CarDealerMag.co.uk

Roadsters

Fun drop-tops for austere times

SPECIAL Suppliers Guide: The firms you should be using to better your business

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