Car Dealer Magazine: Issue 56 by Blackball Media

Issue 56 | November 2012 | CarDealerMag.co.uk | £3.50

free

Business Publication of the Year

y 2013our pla year nner

THE

FRENCH COLLECTION We talk to top executives looking to make the most of the Paris Motor Show stars in your showrooms

plus

Ewards 2012

Rebranded

Last chance to grab a free place at our event

HR Owen chairman reveals grand plans

SAVE CASH Our guide to cutting your dealership’s costs

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription

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IGNITION.

Editorial Director James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WRITER James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor STAFF WRITER Jon Reay jon@blackballmedia.co.uk Twitter: @JonReay Sub Editor Dave Brown dave@blackballmedia.co.uk Twitter: @CarDealerDave head of design Graeme Windell graeme@blackballmedia.co.uk Twitter: @CarDealerGraeme ADVERTISING Manager Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds Advertising EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade Advertising EXECUTIVE Natasha Smith natasha@blackballmedia.co.uk Twitter: @CarDealerTash Advertising EXECUTIVE Pippa Marsden natasha@blackballmedia.co.uk Twitter: @CarDealerpip

Contributors

Mike Jones, Big Mike, James Litton, Tim Naylor, Tim Smith, Tim Heavisides and Jonathan Such

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Sept. iPhone App downloads: 78 Total downloads: 3,535 Sept. iPad App downloads: 174 Total downloads: 3,637 Search for ‘Car Dealer Magazine’ in iTunes 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.

If one thing was clear Welcome. from the 13 hours I spent

rushing around the Paris Motor Show halls it wasn’t just the fact that there’s still a distinct lack of powerful-enough deodorants on sale for the European car press corps, but that there’s also an air of confidence coming back to the automotive industry. Some 99 new cars made their debut in the brightly lit and poorly ventilated halls of the French show. Not that I saw many. My press day started with a coach ride across traffic-choked Paris that I could have walked faster followed by a mad dash to my first interview with BMW’s marketing director. Fortunately their stand was the first one in the first hall. Handy. After a 20-minute chat about the success of the brand’s sponsorship of the Olympics and a few awkward questions about keys, I asked if I could grab a quick picture. Now these guys are on tight schedules – as was I – so we barged our way into the fenced-off area surrounding the i8 supercar (how many times has that been on the BMW stand?) and got in place. It wasn’t until I grabbed my camera out of my bag that I realised the battery was completely flat… Obviously I did what any self-respecting hack would do and pretended to take pictures. I stopped short of making the clicking noise with my mouth. I thanked the BMW big cheese and quickly slipped away. If he didn’t twig then, he certainly knows now… Sorry BMW. Anyway, the rest of the day was rather less disastrous (and picture free). I managed 16 interviews and teased some interesting stories out of the usually cagey execs. Many were resolutely positive – some in the face of worrying sales figures. Ford’s vice president for sales and marketing said he’d never been more confident about the future, despite the fact the manufacturer is losing millions in Europe. Kia and Skoda chiefs both said they want to double sales, while even struggling Mitsubishi was confident its innovative new products will turn its fortunes around. The MDs of UK manufacturers Jaguar Land Rover, Toyota, Nissan and Honda were all in buoyant mood,

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claiming their factories had never been busier. Vauxhall’s chairman wasn’t quite as upbeat, though, revealing his factories may be forced to take another down week this year if market conditions worsen. But despite that he was still looking forward to the future and introducing new models to his range like Adam. And we spoke about that silly name too. These car executives like to talk up the market – it’s their job, after all. But even with that taken into account, there was a distinctly different feel to the Paris Motor Show of two years ago. It was one of optimism. Let’s hope they’re right to feel confident. Read my special report from page 39. MORE It’s not all (mostly, but not all) about Paris in this month’s mag. There’s an update on our search for the best automotive websites in this year’s Car Dealer Ewards, sponsored by Autotorq.com. If you want to come along to our free Online Conference to find out the results you can still grab your place. Find out how on p10. We’re also still looking for entries in the Wheeler Dealer Awards. It seems they’ve taken the industry by storm as we’ve already had a flood of them. Hosted by TV’s Mike Brewer and supported by Gard X, the awards are on December 3. Full details can be found on p18. WINNERS And lastly it gives me great pleasure to announce Car Dealer Magazine was named Best Business Publication at the prestigious Headline Auto Awards. Our innovative mix of fun and business was praised by the judges. We’re delighted the hard work that goes into producing your favourite motor trade mag has been recognised. Enjoy the issue.

James Baggott, Editor

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CarDealerMag.co.uk | 03

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INSIDE. ISSUE 56 I NOVEMBER 2012

dashboard

PARIS MOTOR SHOW EIGHTEEN pages of coverage

KIA CEE’D

Kia’s new estate tested

THE WINNER IS...

Car Dealer scoops top award

Ewards

2012 autotorq.com

Ewards 2012

Come along to our new-look awards

new audi RS4

Firm’s fast estate driven

a month in A picture...

‘‘

Headline Auto award for us!

Ewards 2012 update

Kia’s new car park showroom

HR Owen interview

Wheeler Dealer Awards latest

Training, Mercedes-style

That Was The Month

Customised cars could fail MoT

Finance

Around The World

Big Mike

Car Dealer Club

forecourt

I’m looking to double profitability during 2014 compared to 2011

Joe Doyle of HR Owen has big plans

Audi RS4

Kia Cee’d

features Paris Motor Show

Guide to Saving Money

DATA FILE The Statistics

Auctions

Right Click

Net Gains

Trader Talk

Driving Values

CSI Files

Suppliers Guide with Reay

Trader Directory with Litton

Long Termers

Workshops

Time is Money

This was a picture the editor did manage to take of BMW’s UK marketing director Chris Brownridge at the Paris Motor Show – after fluffing his first attempt because his camera had run out of charge. This shot was taken on his iPhone – and sent back to the production team at Car Dealer Towers, who were hard at work putting this issue of the mag together. The ed was certainly busy in the French capital – we have 18 pages of coverage, starting on page 39.

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

Car Dealer bags a top award Congrats on winning yesterday! Kia UK @KiaUK

AS YOU may know, Car Dealer Magazine was voted Business Publication of the Year at the recent Headline Auto Awards (story, p9). We received plenty of kind messages of congratulations...

CONGRATULATIONS!!! @ CarDealerMag – The Headline Auto Business Publication of the Year! #WellDeserved Lawgistics Ltd @Lawgistics_UK

Well done to you and the team. Tim Naylor @Tim_J_Naylor

Well done to @CarDealerEd and all @CarDealerMag – Business Publication of the Year 2012 Al Clarke @alclarkeltd

Congratulations! Contact Advantage @ContactAdvantag Well done on your award boys, great news! Steph Colinswood @StephWMSGroup Huge congratulations! Welldeserved! Alex Robbins @Scrof Congrats to everyone involved, including whoever makes the tea now it’s not Batch ;-P Simon Ford @sf4d74 Congratulations! You deserve it! Great mag! Hants4x4 @hants4x4 Congratulations, very well deserved. Proof that hard work does pay off! Dom Romney @domromphoto Many congratulations! David Wilkins @WilkinsDavid Absolute boom! Congrats all involved. Car Throttle @CarThrottle

Congratulations! Dave Timmis reallygooddomains

The CD Cava will have to be cracked open tomorrow – have a good evening. Steve Carman @Steve_Carman Huge congratulations, very well deserved. Benfield Skoda @BenfieldSkoda Congratulations on your win! Robert Slater @Mistyrobert Nice one and well deserved fellas! Jeremy Clarke @LawsonClarke Congrats! :-) Katie Read @Katie_Read Congrats, dude! Well deserved! Alex Goy @A1GOY Well done guys! Manheim @ManheimRetail

Well done! Will send @FrontSeatPhil to see you with celebratory cakes next week :) Samantha Phoenix @huffingtoncakes Well done on the Headline Auto award. Alyson Marlow @alysonmarlow Nice one Baggie! Thoroughly deserved. :-) Andy Wertheim @AndyWertheim Whoop! Well done!! Emma Judd @pn_Emma_Judd Congratulations, James! Philip Raby Porsche @RabyPorsche Well done guys! Very much deserved. Rob Griggs-Taylor @robgt2

Hi guys, Just a quick note to say congrats re: the award last night. Well deserved even though I told you guys when you came here that you’ll do very well! Enjoy! Mohammed and all the team Project Kahn Huge congratulations to all. Well done guys!!! Don Brough First Response Finance Congrats. Bram van den Berg Mazda Academy Director Congratulations Blackball Media team! Dan Jones Commercial Vehicles Press Officer Ford of Britain Well done to the BBM team! Freelance Phil, Hamble

MY CONFESSION

Signature got me out of trouble ONE FRIDAY I set an appointment with a difficult customer. He was very rude, expected nearly 25 per cent off the screen price and was not a nice bloke. My plan was simple: take the demo to him, let him drive it and leave with a deposit. Then I was off for the annual boys’ weekend to Blackpool. Sorted. After a lengthy test-drive I eventually got the dipper out of him. £500 cash to be exact. Nice! I grabbed my stuff, picked my mates up and headed to sin-city.

We drank from 9pm Friday to Saturday night – great weekend. I was so drunk in fact, I didn’t think much of spending the monkey burning a hole in my pocket. Whoops. Thinking about it all on Sunday morning made me feel sick. Why did I buy all those rounds? Why champagne? And what did I need an inflatable dolphin for?! I was in trouble. I was skint and had no money to pay back. How was I going to get out of this one?

Monday morning I get a call from the customer. ‘Right, listen here. I’ve had a think, I don’t want it any more.’ Quick as a flash I said: ‘Oh that’s a shame, unfortunately you did sign the order.’ The ‘order’ he signed was actually just the FSA doc. ‘Oh well, I guessed that would be the case, not to worry. Win some, lose some, bye then.’ What? Did that just happen? I got away with it that easily? You do win some, indeed... CarDealerMag.co.uk | 07

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DASHBOARD.

Heavisides

warranty wonders

Use warranties to stay away from Watchdog!

Car Dealer editor James Baggott, centre, receiving our award from Graeme Fudge, PR director of Mazda, right, and Andrew O’Kelly, managing director of the Headline Group

It’s official! Car Dealer Magazine is the best business publication To win means a great deal to the team, says editor James Baggott

ar Dealer Magazine has won the Best Business Publication 2012 title in the prestigious Headline Auto Awards. The awards, which are voted for by journalists and motor industry professionals, this year saw more than 1,000 votes cast. Car Dealer Magazine took first place in the Best Business Publication category beating off stiff competition from Motor Trader, Business Car, Dealer Update and Automotive Design. Presenting the award, Headline Auto’s Andrew O’Kelly said: ‘The winning magazine brings its readership an insightful, engaging overview of their industry which entertains as well as informs. Described as an impressive and excellent publication, the winner is Car Dealer Magazine.’ Car Dealer submitted three magazines for the judges to assess. These included our ‘To Business’ issue which included interviews with 10 top automotive influencers; our Geneva Motor Show special which had 10 pages of interviews with top executives; and our 50th celebratory issue. One of the nominations Car Dealer

received said we have a ‘first-rate understanding of the readers with a great blend of insight, analysis, information and fun, peppered with an occasional surprise’. Editor James Baggott said: ‘We are thrilled to win this prestigious award. We’ve been nominated in this category every year for the last four years so to finally win it means a great deal. ‘We pride ourselves on producing a magazine that’s not only packed with business information for car dealers but is also a little bit of fun too. We have the best jobs in the world and every month try to share that with our valued readers in the magazine, on our free iPad and iPhone Apps and on our website. ‘We’re chuffed that the team’s hard work has been recognised.’ Staff writer James Batchelor was also recognised in the Rising Star of the Year award, and Baggott in the Business Writer of the Year category.

f you watched BBC’s Watchdog last month, you may have seen an item about cars that use coffin-style keys, which led to calls for restrictions on the sale of diagnostic and fault-code readers. If Watchdog expected huge amounts of adverse press coverage, they seem to have failed and it’s been interesting to watch the reaction to the report by individual brands. Calmly and quietly, they’ve contacted owners of vehicles which could be affected and suggested a software upgrade to resolve the problem. No fuss, no bother and no continued hounding by the press – it’s a textbook example of how to manage customers. Toyota was the victim of press hysteria three years ago and wasn’t so lucky; they recalled nine million cars worldwide before the authorities in the USA decided that accelerator problems were probably down to driver error after all. The question of ongoing liability once a car has been sold and is in customer ownership is an interesting one. Dealers aren’t immune from this of course and I’m sure every retailer has a tale of a car that’s been brought back with a list of faults that weren’t present at sale. For car companies, the logistics and PR departments spin into action to calm these situations but how should dealers cope? The Sale of Goods Act gives pretty clear guidance, as does Motor Codes, but in this day and age I still find it incredible that dealers will sell cars without the protection of a warranty. And I don’t just mean protection for the customer – the right warranty helps protect dealers from the cost of repairing nasty surprises that crop up while the burden of proof is on them and it gives the customer the security that the problem will be resolved without fuss. So by using warranties to protect you and the customer, you might not get to see yourself on the BBC’s flagship consumer programme – but isn’t that the point?

‘It’s a textbook example of how to manage customers.’

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 | 09

EWARDS 2012.

Still time to get involved with our new-look Ewards ! Entries have flooded in and spaces for attendance are filling up – get involved with our Ewards & Online Experts Conference now

his year’s Car Dealer Ewards looks set to be the best yet. Category entries have closed but don’t worry – you can still get involved! For the first time we’ll be handing out the Ewards gongs to the winners and highlycommended firms at a special event – to which you’re invited. Our Ewards & Online Experts Conference will be held at the Heritage Motor Museum – a Car Dealer Magazine event favourite – on October 24. There, our judges will give delegates their advice on how to make the most money out of their websites. You’ll hear from our headline sponsors Autotorq.com first as well as our other judges. These include experts from Google, Auto Trader, Razsor, Dianomi, Contact Advantage, The Auto Network, Autos On Show, Webzation and Trade Outs. All these firms will be handing out their expertise on the day as well as judging entries. After they have imparted their advice we will be handing out the coveted Ewards.

1. Multi Franchised Dealer Website of the Year 2. Single Franchised Dealer Website of the Year 3. Independent Dealer Website of the Year 4. Car Supermarket Website of the Year 5. Car Manufacturer Website of the Year 6. Web Innovation of the Year

The event is free to attend and simply by turning up you will be in with your chance of winning an iPad 3 and an amazing Alfa Romeo bike worth more than £500. Anyone is free to attend the event to listen to the advice from our judges too – it’s not just for those that have been nominated. However, for those that have been shortlisted, there will be an added bonus at the end of the event – the chance to win an Eward! We will be handing out the following awards on the day:

The day will start around 9am where delegates will be treated to coffee and pastries on arrival. Our judges take to the stage at 9.30am, then there’s a second coffee break mid-morning, before a few more speeches. Then around lunchtime we move into the awards. Once these are handed out, delegates will be free to take a look around our exhibitors’ stands and enjoy a free buffet lunch. And included in the free ticket is entry to the museum which has a fantastic collection of classic cars for you to enjoy. n We apologise for an error in last month’s edition of the magazine which led to an erroneous headline appearing on Webzation’s panel in the judges section.

THE JUDGES Autotorq.com

Autotorq

I will be looking for websites that really engage with customers, providing relevant offers and building an online relationship with them for both sales and aftersales. With 50 per cent of profits coming from aftersales, having less than 10 per cent of the website content reflect this is a real missed opportunity!

Stewart Niblock 10 | CarDealerMag.co.uk

Autotrader.co.uk

Auto Trader

razsor.com

Razsor

dianomi.com

Dianomi

hyI will be looking for hysites that are simple and

hyWinning dealers deliver hya class-leading digital

hyFrom a survey of around hy2,500 consumers, we

intuitive to navigate, enabling consumers to easily return the most relevant results for them, as well as the ability for the dealer to promote their stock and other services with innovative imagery, products and calls to action to maximise leads sales.

experience. I’ll be looking for intuitive navigation, engaging design with clean, clear attractive imagery, a user friendly search and strong calls to action. As website lead generation is key, excellence in SEO and a superb mobile user experience are also critical.

found that 90 per cent search for cars online before deciding which to buy. Therefore this year I’ll be looking for userfriendly sites that provide prospective car buyers with the tools they need make better informed purchasing decisions.

Paul Shoesmith

Paul O’Donoghue

Paul Hughes

Google.com

Google

hyI will be looking for hyfocus and purpose in dealer websites. Are customers and prospects doing what you want them to do on every webpage? Many automotive websites still prioritise information and interactivity rather than clarity and ease of use, a trap which many industries have learned to avoid!

Alex Rose

hy hy

..held in association with Autotorq.com

CarDealer. Ewards

2012

I n a s s o c i at i o n w i t h

autotorq.com

askaprice.com

Auto Network I will be looking for dealer websites that bring together elegant design and eye-catching content to help consumers navigate the buying process. A winning website should match this with functionality to create a virtual showroom environment that makes it easy to build a lasting relationship with the consumer.

Anton Hanley

Autosonshow.tv

Autos on show

hyOnline consumers hyare now more savvy,

information hungry and they want it now. Car dealer websites have to make the consumer’s life easy. I will be looking to ensure they will be providing them with the latest technology to best show off the vehicles and make it an enjoyable experience.

Rachel Price

tradeouts.com

Trade outs

hyWebsites that hydemonstrate they

understand the needs of their users, both in terms of functionality and ease of use. After all, there’s little point having a visually appealing website if it’s difficult to use. Flexibility across multiple platforms, including mobile devices is also an important factor.

David Brown

The Heritage Motor Museum is a stunning venue – and one which Car Dealer has put to good use in recent months. Above, Mediahawk’s Harry Bott addresses his audience at our Lead Generation conference this year

COME ALONG! Our Ewards & Online Experts Conference isn’t just open to those nominated in the Ewards categories – it’s for all dealers! Places at the event are completely free of charge and you’ll enjoy a free lunch, the chance to look around the Heritage Motor Museum and get the chance to win an iPad3 or an Alfa Romeo bike in our free prize draw. If you’d like to reserve your place at the event contact our events manager Jade Simmonds on (023) 9252 2434 or email jade@blackballmedia.co.uk.

ivendi.COM

iVendi

hyOur winners will need hyto demonstrate an ability to convert prospects into potential customers. Getting more users onto your website is great, but if they don’t identify themselves, then your ROI will soon deteriorate – are you attracting the wrong type of user? Effectively identifying and qualifying visitors is the next step too.

James Tew

contact-advantage.com

Contact Advantage

hyWE know dealers need hy‘E’ products or services

to add to the bottom line, fit in with processes, and save time and money in doing so. I will be looking for proof these products have added to dealer profits, giving benefits over traditional operations while helping to drive quality processes.

Bob Feltham CarDealerMag.co.uk | 11

Streaming video in real-time. From the award-winning video-streaming specialists AutosOnShow.TV, comes the latest addition to our suite of video and photography solutions. Car dealers can now live-stream video through smartphones and camera-enabled tablets in real-time within seconds.

Car Dealers use AutoLIVE™ to: D Demonstrate new and used vehicles in real-time D Encourage customer loyalty & repeat business D Show speciﬁc features in real-time D Retain website visitors for longer D Streamline the sales process D Build rapport & gain trust with potential customers

D Provide dedicated customer web-viewing pages ...and much more!

Personalised vehicle demonstrations for the car buyer researching at home. AutosOnShow.TV can help you provide an extremely high quality level of customer service to make you stand out from your competitors.

Car Dealers use AutoDIRECT™ to: D Automatically email customers with personalised vehicle videos D Automatically identiﬁes & measures client interest D Allows managers to identify sales personnel who require training D Provides a quality control mechanism D Build rapport & gain trust with potential customers D An incredibly intuitive process for the car buyer D Reduce no-show appointments & sell more cars

DASHBOARD.

A happy ending to a multi-storey!

Kia’s new dealership in a north London car park is now open. Jon Reay reports

t’s taken over four years of planning, thousands of hours of building work and plenty of blood, sweat and tears, but Kia’s Collindale dealership in North London is now up and running – successfully converted from, of all things, a multi-storey car park. We originally reported on the ambitious plans back in issue 50, when much of the building work was yet to take place. Then, four months later in issue 54, we began to see the building taking its new form. And now the finished article is here – and we’ve caught up with Kia’s dealer development director Simon Hetherington, and Humming Bird’s customer service and marketing director Lucie Herman, to hear about the transformation. ‘It was a bit hectic – the actual move,’ reveals Herman, ‘and for the first couple of days the computers weren’t working, we didn’t have any printers, just the usual stuff. But in terms of major teething problems, we’ve all settled in really well’ Herman says she and the staff are over the moon with the new premises – even if it means getting used to the additional floor space. ‘They really love their new home, and it’s just an amazing environment to be in,’ says Herman. ‘Our average length of serving is 16 years, so all the guys that have been with us from when we first started in a tiny little place, it’s amazing for them to see the transformation. ‘That’s probably one of the downsides,’ she jokes. ‘They’re doing a lot more walking.’ With four times the retail space, we asked if Kia were expecting four times the turnover. ‘I think probably four times the volume or profits would perhaps be unrealistic,’ said Hetherington, ‘but the previous sites where Humming Bird operated from were stretched beyond capacity already. This puts them into a facility that is able to capable of achieving those volumes and much more.’ It’s not just the site itself that’s expanded, either – Humming Bird have recruited more staff to fill the 15-car showroom. ‘We’ve taken on two receptionists and we’ve also employed two extra valeters /drivers,’ Herman told us. ‘We’ve taken on three salesmen already, and as we grow we’ll just take on more and more staff. We’re certainly looking into taking on some apprentices to come with us.’ Situated on the busy Edgware Road in North

OPENING CEREMONY Lucie Herman told us: ‘We are inviting friends and family, Kia head office staff and our loyal customers, for an opening party on November 1, which will be a history of Humming Bird, as we opened in 1935, along with the history of Kia. Following that, from November 2-4, we’ll be holding a big event for all the community to come down and have a look at the new showroom.’ London, location played a big part in the move – and for Humming Bird it seems to have paid off. ‘The original dealership was on ‘car alley’, but that’s nothing compared to the car alley that we’re on now,’ enthuses Herman. ‘But it’s great, because the look of the place really stands out. We do get a lot of passing trade, which we welcome. And I think it’s really nice to get lots of people from the community, not necessarily looking to buy a car, but coming in to introduce themselves,’ she added. The location isn’t just generating friendly visitors, though – it’s been bringing in new Kia customers, says Hetherington. ‘What we’re finding as well is that a lot of customers who’d previously never come into contact with the brand are coming because of its location, and we’ve sold cars over

the last month as a direct result of people having seen it up and running,’ he said. ‘They love the showroom, they love the experience, and they’re just intrigued by the nature of it – it’s such an unusual place to have a dealership.’ With Kia UK backing the move themselves, the transformation of the Collindale dealership was something of a first for the company – in more ways than one. ‘It’s the only site that we currently have that Kia motors have a direct interest in,’ Hetherington told us. ‘We’ve supported the development of the site, and it’s a model that we’re looking to repeat with two or three others across London. That’s something we’re exploring at the minute – how exactly we do that.’ With the metamorphosis such a success, we were keen to ask Kia whether another converted building might be on the horizon. ‘We’re not actively going out looking for unusual dealership buildings and saying “we’ll convert that”,’ Hetherington told us. ‘I think if we could, a clear site is a better place to construct a dealership than working around the constraints of an existing building – but we wouldn’t rule it out. ‘I think what was demonstrated here was that it’s possible, and that the result can be very impressive.’ [CD] CarDealerMag.co.uk | 13

INTERVIEW

‘I’ve got great challenges in an environment I love’ One year on from his appointment, Joe Doyle of HR Owen has big plans. James Batchelor reports

e have to change the business, but grow it at the same time. Getting the balance between those two is easier said than done. The business just isn’t big enough today. Those are the words of Joe Doyle, HR Owen’s chief executive – and it’s clear to see he’s a man on a mission. ‘HR Owen was really hit hard in 2008 and was steady and unspectacular in 201011,’ he explains. ‘When I joined I wrote a threeyear plan and with the existing footprint, during 2014, I’m looking to double profitability of the company compared to 2011.’ Strong words indeed, but how is Doyle going to achieve this? Through a major brand and operational overhaul, that’s how. Led by Doyle, the business is adopting a ‘360 approach’ to its turnaround, and it covers everything from

‘I’m looking to double profitability during 2014 compared to 2011.’ a logo redesign, to a new CRM and showroom refurbishment. ‘What’s going on behind the rebrand is more important here,’ says Doyle. ‘We have been through, and are in the midst of, a lot of change. There has been a significant management change and we are bringing in a sales process and enhanced technology to help with our interaction and understanding of our customers. ‘All of this aligned to pushing more sales for the group – with all of that going on in the background, we wanted to come out and say there is a whole new thing going on here at HR Owen. One of the ways you can emphasise and show that externally is by presenting a new look to the business.’ The rationale behind the logo was, amazingly, that there was no consistency. ‘A customer could go from one showroom to another and they wouldn’t know they were on HR Owen premises,’ says Doyle. ‘This brings us back to the cultural changes we are making here – the business traditionally operated in silos. I’ve changed that – there is now one person responsible for each franchise and a 16 | CarDealerMag.co.uk

Joe Doyle wants to increase profitability at HR Owen

divisional director so decisions are being made in the best interest rather than in a self-centred way.’ Communication, training and development have been internalised and externalised to make people feel part of the group. ‘When I joined in October last year, I thought I’ve got a great bunch of people here but they feel as though they work for Rolls-Royce or for Bentley – they don’t, actually, they work for HR Owen. It’s a group and that’s what we are about. ‘I started work on this in February when I got the whole company together to explain where we needed to go. We needed to talk about it, because, in my view, the profitability of the group wasn’t good enough. If you want to be best in class, you’re going to have to be doing a hell of a lot more than we have today.’ Doyle is frank about the business he took the helm of in October 2011. ‘If I’m being kind, it was a business that was in the 1990s,’ he says. ‘It was 1990s in everything from its culture and technology through to its operation. ‘For instance, the first thing I found out about is that the customer database is split into four different pots! We could have customers going from one of our franchises where they would have received excellent customer service to

another where they would not be known.’ One of the biggest things Doyle has done is to introduce a new CRM system. Doyle wants HR Owen to be ‘best in class’ and to achieve this he went outside of the industry to get his CRM. But when he arrived, it wasn’t a case of putting his head into his hands – Doyle knew what he was coming into. And he’s a huge petrolhead. ‘I am in the perfect position where I have got some great challenges in an environment that I love. It doesn’t make it difficult for me to come to work every day.’ Is Doyle more of a car nut than a businessman? ‘I’d say I was a good blend! I’m in a privileged place where I get to drive lots of cars I love – and that, incidentally is at the core of our customer experience.’ So what of HR Owen’s customers? ‘They are petrolheads; they don’t need the cars we sell,’ says Doyle. ‘It’s not about treating them with champagne in luxury hotels – it’s about the experiences we can have with our customers. The ones you can share – the ones like driving in convoy to Goodwood. It’s a family.’ And if you understand what your customers want – you’re half way to building a successful business. [CD]

dashboard.

Enter our awards and enjoy a cracking Christmas party! Car Dealer Magazine has teamed up with Mr Wheeler Dealer Mike Brewer to find the very best in the used car industry. James Batchelor reports

ou probably don’t want to hear it, but the season of goodwill is only weeks away – and Car Dealer has got your Christmas party all sorted. That’s because we’ve joined forces with Mike Brewer, one of the country’s best-known car salesmen, to launch awards specifically designed for the used car industry. The Wheeler Dealer Awards will be held at The Brewery in London on December 3 and we want you and your team to be there to celebrate in style with us. You can be assured of having a good time. Held at The Brewery in London, attendees will enjoy all-they-can-drink beers and wine, a three course meal, live entertainment and

Wheeler dealer AWARDS

sponsored by

Entering is easy: Email the editor the category you want to enter or nominate in, include your details and a brief reason why you should win and we’ll do the rest! Used Car Dealership Of The Year – Under 50 Stock

Best Upsales and F&I Performance Of The Year

Manufacturer Used Car Scheme Of The Year

Sponsored by GardX This award is to be given to the dealer that offers the best all-round performance on a site that holds fewer than 50 cars. These small dealers are just as important to the car buyers as the large groups, and for that reason they are just as important to us and these awards.

Sponsored by Car Care Plan Selling a used car is only one part of a great salesperson’s mission. With every sale, there is the opportunity for selling other products and services. Selling the complete package increases profit and of course raises the individuals’ pay packet at the end of the month. We will recognise the very best at this art here.

Sponsored by Car Care Plan The Used Car Scheme award will be awarded to the vehicle manufacturer that offers the best initiative for dealers to aid them in the art of selling used cars. Never before has the used car market been so competitive, and manufacturers know the importance of a strong brand in this area.

Used Car Dealership Of The Year – 50-100 Stock

Best Used Car Customer Care

Best Used Car Website

Sponsored by GardX This award is to be given to the dealer that offers the best all-round performance from a site that holds between 50-100 cars. With a larger number of used cars, it is easy to get things wrong. We will recognise and reward one dealer that has managed to keep their dealership performing.

Sponsored by First Response When a customer visits a dealership, it is only the very best dealers that realise it is just the start of a very important relationship. Perfect customer care is needed to ensure every customer feels they are in safe hands. We will award the dealership who displays great customer service.

Used Car Dealership Of The Year – Over 100 Stock

Used Cars Of The Year

Sponsored by BCA Every dealer that wants to sell needs a decent shop window. In this digital age, dealers that embrace the internet are far more likely to sell cars. We all know this is true and that a huge number of customers will search for their car online first. We will congratulate the dealer that utilises the web the best here.

Used Car Sales Manager Of The Year

Sponsored by GardX This award is to be given to the dealer that offers the best all-round performance from a used car site holding more than 100 cars. These dealers will see all kinds of customers and need to be at the top of their game at all times to survive in this highly competitive market.

Sponsored by Auto Trader This category is dedicated to the best used car on the market. Split into two sections: Best Residual Value and Most Popular. This double award will go to the manufacturers of each car. If you think one of your models should be considered then let us know. We’ll be working with sponsors Auto Trader to work out the winners for each award.

Open for sponsorship We’ve all been there, working for a boss that we either regard as the best or worst we’ve known. We want to recognise the best! Entered by their own team, these sales managers will need to have the support of those around them. This doesn’t come with just great sales, but with the overall ability to manage a team day in, day out.

Used Car Dealer Group Of The Year

Best Used Car Marketing Scheme

Open for sponsorship Every dealer needs to generate the right amount of traffic to their showrooms. Advertising and word of mouth is one thing, but being able to offer something over and above the rest is another! Some use their own version of the scrappage scheme, some offer minimum part exchange prices. We are looking for the very best ideas here.

Used Car Supplier Of The Year

Sponsored by Moneybarn Dealers use many different suppliers in the course of their daily business – but there are good ones and there are bad ones. We will recognise the very best suppliers here. Whether that’s a finance company or paint protection firm, website design company or advertising portal – this is the award that marks the best to do business with.

Outstanding Achievement Of The Year

Lifetime Achievement Award

Used Car Sales Team of the year

Sponsored by GardX This award is to be given to the dealer group that offers the best all-round performance from multiple sites in the UK. Expanding your dealership to other sites raises the possibility of failing. We will congratulate the dealer group that has succeeded in building a brand.

Open for sponsorship There are thousands of people employed in car sales across the UK. Thousands of them are just making a living, thousands do it as a means to an end, thousands use it as a stop gap. But there are those that work in the industry because they excel in it. It is these people – who truly deserve the recognition – who we are looking for here.

Open for sponsorship More than just a ‘flash in the pan’ – this award will go to an individual who has been in the trade for many years, delivering an outstanding performance and has made their position their own. In every dealership, large or small, you will find someone who has been there since the dawn of time, continuing to put the maximum effort in. It’s these people we want to recognise!

Open for sponsorship Behind every great dealership, there is a great team. Every member of that team needs to have the right work ethic to succeed. We will recognise and applaud the best performing group with this award. We all know how tough the market is, and the winning dealer will be one that has shown it’s built that team for success.

If you want to sponsor one of the remaining awards call us on (023) 9252 2434 CarDealerMag.co.uk | 19

DASHBOARD.

Mercedes opens new apprentice academy James Batchelor meets a man who is passionate about the value and importance of apprenticeships

sk the question: ‘How important are apprenticeships to manufacturers?’ to Mercedes-Benz UK’s head of training David Joyce, and you’ll get passionate

response. ‘Apprentices are our future,’ he replies. ‘If I think back to the 1980s where people stopped taking on apprentices, there was a skills shortage and that created a price for qualified individuals. This led to dealers having to push increased labour rates onto customers. ‘By working hard to ensure we have sufficient young adults coming through our programme, we are ensuring we have sufficient staff for the future. We work constantly together with our partners to make sure there is a strong stream of young people coming through and the right capacity to support the product.’ One example of Mercedes-Benz working hard to promote apprenticeships is its new academy. Officially opened by The Duke of York back in March of this year, Mercedes-Benz UK’s new purpose-built Apprentice Academy at Tongwell is the result of a £2.1m investment. The new development provides industryleading training for young people to become Mercedes-Benz qualified technicians and parts advisors. The programme leads to nationallyrecognised NVQ and VRQ qualifications. ‘Our apprentices learn how to work on the full range of our vehicles,’ explains Joyce. ‘The passenger car apprentices will learn everything from an A-Class and the Smart car right the way through to the S 65 AMG, and there’s commercial vehicles as well – from a Vito van right up to an Actros 44-tonne arctic vehicle.’ But a lot of manufacturers have similar programmes – what makes Mercedes-Benz’s different? ‘It’s the qualification pathway we put our people through, the focus we give them on brand, and the access to the latest technology,’ remarks Joyce. ‘There’s also the in-field support. It doesn’t all happen here at Tongwell, you know – we have a suite of distance learning and a field team of specialists who go into our dealers every nine weeks

‘‘

20 | CarDealerMag.co.uk

to support the learner, setting them objectives and working with the dealer to set the bar higher.’ More than 10,000 applicants applied for 170 apprenticeships this year – a new record. And since opening in 1995, the firm’s apprenticeship programme has seen 1,148 apprentices graduate, with 60 per cent of those still working within the brand 10 years later. To prepare for this year’s intake, six months of careful preparation has been undertaken by Joyce and his team. But Joyce has been helped along the way by a dealer network who understand the advantages of apprenticeships. ‘We have a dealer network which is forwardthinking and are saying they need apprentices for the future,’ says Joyce. ‘They are not just looking at their balance sheet today and saying we can’t afford it; they are looking to the future and telling us they need x-number of people ready. ‘They are investing in young people because they understand the benefits they can bring, and they are tapping into that type of employment very early on. To give an example, when we were in the depths of the recession, we still took on 120 apprentices. Even though the network were looking at restructuring their businesses and downsizing, they worked with us in recruiting apprentices because they were focused on the upturn and needed resources. Since then, we have worked tirelessly with the network to make sure they recruit between 100 and 150.’ Joyce is passionate about apprenticeships and firmly believes they are a route more

We are ensuring we have sufficient staff for the future.

Mercedes-Benz UK head of training David Joyce young people should be taking. ‘Apprenticeships are seen as the non-achiever route,’ says Joyce. ‘In fact when an apprentice gets their level three qualification, it is the equivalent to A-Level maths, English and science. ‘Apprenticeships need to be seen as a highform of qualification. We’re on a big drive to help parents and children to make informed decisions. We saying young people don’t have to stay on to do A-Levels or university to end up with an industry-leading qualification. ‘The example I like to give is Ross Brawn – team principal of AMG Mercedes Petronas Formula One Team. A lot of people think he went through Imperial College University to go to where he is today – he didn’t, he did an engineering apprenticeship.’ [CD]

PROTECTION

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â&#x20AC;&#x2DC;C.A.R.Sâ&#x20AC;&#x2122; Cosmetic Accident Repair Solutions GardX Protection, renowned for its vehicle paint and fabric protection system, has recently launched a new Dealer profit opportunity, which they have inventively named â&#x20AC;&#x2DC;C.A.R.Sâ&#x20AC;&#x2122;! C.A.R.S is a minor accident â&#x20AC;&#x153;SMARTâ&#x20AC;&#x2122; repair insurance underwritten by Lloydâ&#x20AC;&#x2122;s of London, which covers against the unavoidable bodywork chips, minor dents, light scratches and scuffs caused by everyday motoring. C.A.R.S customers benefit by keeping their car in showroom condition whilst protecting their â&#x20AC;&#x2DC;no claimsâ&#x20AC;&#x2122; discount and future resale value for the next 12, 24 or 36 months. C.A.R.S supporting Dealers benefit from incremental profit, increased customer satisfaction and reduced refurbishment costs for returning customers - making the buying experience a pleasant experience. C.A.R.S. efficient no-fuss claims handling team have a nationwide network of over 150 qualified repair technicians utilising the latest mobile technology and offer a professional quality repair at the customerâ&#x20AC;&#x2122;s home or workplace with the minimum of inconvenience and a lifetime ownership guarantee.

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Total Protection is an innovative product offering that combines all the benefits of the C.A.R.S. product, with the Industry leading GardX vehicle paint and fabric protection system and is designed to maximise a Dealerâ&#x20AC;&#x2122;s incremental profit. As with all GardX Protection products, Total Protection is supported by an all encompassing, free of charge comprehensive Dealer development programme that includes: sales development, powerful Point of Sale material, a promotional sales video and professional monthly account management carried out by dedicated account managers. Victor Coutin, Managing Director of GardX Protection said: â&#x20AC;&#x153;we are very excited about the launch of the C.A.R.S. and Total Protection products and believe they will deliver a considerable increase to a Dealerâ&#x20AC;&#x2122;s incremental profit and provide a high level of customer satisfactionâ&#x20AC;?.

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DASHBOARD.

That Was The Week – our roundups are posted online on Fridays CarDealerMagazine.co.uk

The month, digested We keep an eye on the motoring must-knows so you don’t have to. Here’s what’s been happening in the auto industry this month

SEPTEMBER 10-14

Clockwise, from top left: Motorpoint Chingford; Sandero; Discovery; Nemesis

Vertu Motors bought three East Midlands and Yorkshire dealerships from Co-op Motors for £5.5m. The acquired sites add a further six franchised sales outlets to the group’s portfolio, with Nissan and Fiat in Derby, Nissan and Peugeot in Ilkeston and Nissan and Renault in Bradford. Skoda UK announced a record first half of 2012, registering more than 28,000 cars. The firm is hoping to beat its record sales year in 2011 of 45,000 cars and improve its 2.7 per cent market share. Peugeot updated their RC-Z sports car, extracting 260bhp from the 1.6-litre THP engine. New suspension and a limited slip differential control the power, while there’s also a new front end to match the latest Peugeot family look. Sales were strong at Ferrari with the Maranellobased manufacturer reporting an increase of 43 per cent for the UK. That translates to 393 cars sold in the first six months of the year. Worldwide, sales are up 7.4 per cent.

SEPTEMBER 17-21 Audi filled yet another niche with the limited edition SQ5 TDI. The order books for this 309 bhp SUV open later this year, with deliveries starting in the spring. Two decades after McLaren rocked the car world with the ground-breaking F1, the benchmark hypercar’s spiritual successor – the P1 – has been revealed. Expected to include Formula One derived KERS technology, the P1 should be ‘the quickest and most rewarding series production road car on a circuit’. MG Motor UK dealers are now offering an allowance of £3,000 against a new MG6 if a customer trades in their old banger, just as long as it’s got 14 days of MOT left. The number of dealerships who are ‘SAF Approved’ reached 2,000, the Finance & Leasing Association (FLA) announced. UK car manufacturing fell 8.9 per cent in August, latest figures from the SMMT revealed. The Dacia Sandero, a cut-price supermini that’s set to pull the rug from underneath the Fiesta sector’s feet with a rumoured sub-£6k price tag, was unveiled ahead of its public debut in Paris. Honda is ditching its image of selling boring cars and revealed it will be producing a new UKbuilt Civic Type R with an expected 280 bhp.

SEPTEMBER 24-28 Vauxhall closed both of its UK factories for a week due to a drop in production numbers, and said it 22 | CarDealerMag.co.uk

MOT FAILURE RISK

Story of the month THE EU wants to change the definition of a roadworthy vehicle, enforcing the rule that vehicles should not change from factory spec. In other words, a car with alloy wheels, a tow bar or anything that was not fitted to a vehicle when it left the factory – such as a modern component – would fail its MOT. Full story, p27

couldn’t rule out further closures in the future. Land Rover’s Discovery came top of an unreliability chart produced from findings by Warranty Direct. The Mercedes E-Class was the most reliable. Car Dealer Magazine won the Best Business Publication category at the prestigious Headline Auto Awards. A land speed record was broken by the Lotus Exige based ‘Nemesis’ electric car. The battery powered car reached 151mph, taking the UK electric land speed record in the process. Jaguar finally unveiled the new F-Type sports car, promising that even the entry model will be more driver-focused than the XKR-S. More than 1,000 deposits have already been taken.

Car supermarket Motorpoint opened a new site in Chingford, Essex. The Derby-based retailer network now has six sites across the UK. Motability Operations gave a commendation to Ford for their ‘performance and consistent excellence’. Ford accounted for one in five of the cars delivered through the scheme, or 48,000 cars in 2011. The new Auris and Auris Touring Sport estate from Toyota were revealed, the duo taking a more confident design approach. Mitsubishi released details of its new Outlander Plug-in Hybrid, promising an electric range of around 35 miles.

OCTOBER 1-5 Lexus widened the CT 200h range by adding an entry level ‘S’ spec. With 15-inch wheels and a larger rear spoiler, the hybrid powered executive car drops its CO2 output to 87g/km. Prices start at £21,995. The Vehicle Fraud Unit recovered 350 cars valued at £5.5 million over the last 12 months. Due to its ongoing success at combating finance fraud, the Finance and Leasing Association are continuing their sponsorship for a sixth year. Toyota has made it into the top 10 most valuable global brands. Interbrand have put a price tag of $30 billion on the name for their Best Global Brands report.

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DASHBOARD.

Nissan dealership wins a coveted global award bit.ly/nissan-award

Could customised cars be banned from the UK’s roads? New EU rule might mean vehicles given the personal touch fail the MoT

o you have customers who have replaced their car’s bog-standard steel wheels with some tasty aftermarket alloys? If so, they may not be able to drive their cars on UK roads in the future if a controversial EU ruling gets the go-ahead. The EU wants to change the definition of a roadworthy vehicle, enforcing the rule that vehicles should not change from factory spec. In other words, a car with alloy wheels, a tow bar or anything that was not fitted to a vehicle when it left the factory – such as a modern component – would fail its MOT. To pass, owners would need to replace their personalised parts for factory-spec items – a costly and timeconsuming process. Leading retailer of car parts and enhancements Halfords has said it’s on the side of the motorist though. Its Autocentres – specialists in MOTs and car servicing – back up motorists’ rights to personalise their cars. Halfords Autocentres chief executive

‘‘

Manufacturing forges ahead THE UK’s automotive manufacturing sector is heading for a period of expansion, according to the Society of Motor Manufacturers and Traders. Nine per cent growth per year is predicted – which should bring output back up to pre-recession levels, and mean 2.2m vehicles could be produced in our country by 2016. While this predicted rise sounds rosy, the report also warned about the dangers of complacency – with smaller suppliers struggling to keep up.

NEW SITE Bill Duffy said: ‘Provided owners don’t compromise the safety or performance of their vehicle, we would absolutely defend their right to stand out from the crowd.’ Chris Mason, managing director of Motor Codes, the governmentbacked, self-regulatory body for the motor industry, told Car Dealer: ‘Nobody would dispute the need to keep a vehicle safe and roadworthy and the annual MOT test performs this vital function, alongside routine servicing. With the pace of innovation in the automotive industry, it would be a barrier to progress if an older car couldn’t be fitted with a modern component.’

It would be a barrier to progress if an older car couldn’t be fitted with a modern component.

The Society of Motor Manufacturers and Traders (SMMT) is also worried about the proposal. ‘The SMMT and its members are reviewing in detail the European Commission’s roadworthiness package, which is a complex proposal with far-reaching implications for European motorists,’ the organisation’s chief executive Paul Everitt told us. ‘In regard to MOT testing against relevant standards at the time of build, the SMMT has particular concerns about the complexity of data gathering, sharing and application. There would also be challenges for older vehicles for which the supply of original parts has been discontinued. ‘While we welcome ambitions to increase the safety of vehicles on Europe’s roads, we are keen to ensure this does not result in undue additional cost and administrative burden on businesses and consumers in the UK.’

New site for premium cars from News International NEWS International has launched a classified advertising site for premium vehicles: Sunday Times Driving (driving.co.uk). The website’s launch precedes a name change to the newspaper’s InGear motoring supplement, which is now known simply as Driving. Sunday Times Driving is the first car-buying site dedicated to the top end of the market and builds on The Sunday Times’ brand and heritage. Unlike other car listings websites, driving.co.uk is a one-stop

GROWTH

shop that supports the car-buying journey with reviews, buyer guides and articles written both to inform and entertain. Editorial content will come from the supplement, as well as specially-commissioned articles. In total, NI have more than 46,000 vehicles for sale on the site. The website has secured launch advertising partnerships with Mercedes, Porsche, Honda, VW and Sytner Group. NI has invested £6m into a multi-media marketing campaign that highlights

Sunday Times Driving as the most entertaining and definitive resource for buying premium cars online. Launch general manager Chris Taylor commented: ‘This is an incredibly exciting launch for News International and brings a unique new proposition to market for consumers and dealers alike. ‘For the team now the really exciting next phase lies in listening to consumer response and then developing and enhancing the site over the coming weeks and months.’

Motorpoint’s way is Essex... MOTORPOINT, one of the UK’s leading car supermarkets, has opened a new site in Chingford, Essex. The new outlet has more than 500 new and nearly new vehicles available to view and access to more than 3,000 more models available through Motorpoint’s group stock. The opening of the Chingford site represents the first step in an ambitious expansion plan for Motorpoint.

DEAL SEALED

Remarketing deal signed TWO leading dealer groups, Marshall Motor and Ridgeway, have teamed up and signed a remarketing deal with auction house Manheim. The new contract will see Manheim handle sales of more than 45,000 vehicles over three years – a number worth in excess of £160 million. Manheim will manage the two groups’ part exchange, off-lease and other vehicles that require remarketing from any of Marshall and Ridgeway’s 90 outlets and 30 brands combined. CarDealerMag.co.uk | 27

FINANCE. GOLF DAY

Eleventh year of popular sporting event BEN Ireland’s 11th Annual Golf Day recently took place at the Hermitage Golf Club near Dublin and was supported by Alphera Financial Services (BMW). Consisting of an early-morning breakfast followed by a shotgun start, the four-person teams headed to various tee boxes in brilliant sunshine. The competition was then followed by a prize-giving dinner in the evening for all who

had taken part in the fundraising day, which raised an impressive €6,000 (£4,812) for the Irish contingent of the automotive charity. BEN Ireland honorary secretary and BEN life governor, Con Dalton said: ‘We are delighted to report that support still continues for the BEN Ireland Golf Classic, now in its 11th year. ‘The generous support we received this year from Alphera Financial Services (BMW) has not only enabled us to continue our fund raising efforts but also to continue to create the much needed greater awareness for BEN in Ireland.’ BEN is a dedicated charity for those who work, or have worked, in the automotive and related industries, as well as their dependants.

FLA members play vital role in combating finance fraud More than 300 vehicles recovered, worth a total of almost £5.5m

ore than 1,500 cars fraudulently obtained on car finance have been recovered thanks to a partnership between the finance sector and the police. The partnership between the Finance and Leasing Association (FLA), the trade body representing the motor finance industry, and the Vehicle Crime Intelligence Service (AVCIS) saves finance companies millions of pounds and delivers significant savings for consumers. In the last 12 months, AVCIS, an arm of ACPO, the Association of Chief Police Officers, has recovered 350 vehicles worth almost £5.5 million to FLA member motor finance companies. Around 80 arrests have also been made for associated crimes. In the five years that the partnership has been

‘‘

The police and motor trade are working together to drive down finance fraud running, AVCIS has made almost 400 arrests, with vehicles worth a total of £25 million having been recovered. Due to the ongoing success of the scheme, FLA members will be continuing their sponsorship of the Vehicle Crime Unit for a sixth consecutive year. Paul Harrison, head of motor finance at the FLA, said of the on-going partnership with AVCIS: ‘The FLA is delighted to

The success of the unit is sending a message to fraudsters that they will not be tolerated.

confirm its sponsorship of the AVCIS Vehicle Fraud Unit for another 12 months after a further year of real success for the unit. ‘By catching fraudsters, our partnership with the police helps motor lenders minimise their financial losses. ‘This in turn plays a vital role in keeping finance costs low for consumers. The success of the unit is sending a clear message to fraudsters that their actions will not be tolerated.’ Contributing FLA members effectively act as the eyes and ears for the police, reporting suspected fraudulent cases to AVCIS for investigation and recovery.

More than 2,000 approved dealers join specialist finance scheme SHORTLY after adding dealer groups Eastern Western Motor Group and Hartwells to the Specialist Automotive Finance Scheme, the Finance & Leasing Association’s initiative has extended to more than 2,000 approved dealers. After putting 35 employees over seven sites through the online SAF competency test, the TC Harrison dealer group has taken the scheme

over the significant milestone. The addition of TC Harrison to the scheme means that more than 20 per cent of all UK showrooms now participate in the initiative, with around 37,000 industry staff from across the 2,000 dealerships having taken the SAF competency test. David Bocking, joint managing director at T.C. Harrison, said: ‘We

are committed to providing the best possible level of customer care. The SAF training undertaken by our staff will help give our customers confidence that the advice we give them is of the highest standard.’ Paul Harrison, head of motor finance at the FLA, said: ‘This big milestone for SAF shows the significant support for the initiative.’

Valuing Service – Valuing You! First Response Finance is the first choice for the UK’s small to medium sized dealer market. 28 | CarDealerMag.co.uk

..in association with

DEAL FINDER Latest finance deals on SUVs SSANGYONG KORANDO THE Giorgetto Giugiaro-designed Korando is leading SsangYong’s resurgence in the UK, with a limited-edition version, cunningly named the LE, aiming to boost popularity. Adding desirable extras to the LE increases the value, with climate control, heated seats and cruise control coming as standard. The drive train is limited to just twowheel drive to keep costs down though, so this isn’t a vehicle for off-roading. SsangYong are offering LE buyers a 4.3 per cent APR finance deal. A deposit of £5,920 is required, along

with an arrangement fees totalling £300, leaving 36 monthly payments of £349. There’s no final payment, bringing the total payable to £18,782. Backed by a fiveyear warranty, five years of finance is also available at the same rate.

requiring a £7,015 deposit followed by 60 monthly payments of £399. There are no arrangement fees, and the offer is also available across the Spark, Aveo and Orlando range, all backed by a five-year warranty.

JEEP WRANGLER OF COURSE if off-road use is required, there are few options as capable as the iconic JEEP Wrangler. Oozing Americana, on-road refinement may be lacking but there’s no shortage of equipment to distract you, the Sahara spec only listing heated seats and an uprated stereo unit as options. Take it off road and it’ll give a Land Rover Defender a run for its money. The torquey 2.8 turbo diesel engine isn’t the most refined but will drag the 4x4 through most terrain. JEEP are offering the Wrangler on a zero per cent finance deal, but a large deposit of £16,825 will be required. Interestingly there are then no payments required for

time is money

Keeping your ‘captives’

CHEVROLET CAPTIVA DEFINITELY not suitable for off-roading is the Chevrolet Captiva, although the ondemand all-wheel drive will get you out of mildly sticky situations. Significantly larger than the Korando, the Captiva adds an extra pair of seats to the rear making the seven-seater suitable for very large families. Equipment levels are just as high too, with the LTZ model adding full leather trim, sat-nav and a reversing camera to the mix. Until the end of the year, Chevrolet are backing the Captiva with a zero rate finance offer, with the top spec LTZ model

Meldrum

two years until a final payment of £9,990 is needed. Mileage is limited to 10,000 miles per year though, with a hefty charge of 12 pence per mile charged for exceeding that figure. As with the Chevrolet deal, there are no arrangement fees to pay.

ow good are your salespeople at selling finance to ‘captive’ finance customers? A common definition of a captive finance customer is: ‘A customer who intends / needs to use POS finance provided by the dealership where the finance sale and the car sale are interdependent.’ Here are six reasons why captive finance customers are important: 1) Increased car sales: not every customer has the funds to buy a major asset like a car outright. POS finance provides the funds for customers to be able to buy cars that may be out of their budget range. 2) Improved profit: by offering POS finance the salesperson can protect the ‘profit in the metal’ because the focus will be on the monthly repayment instead of the screen price. 3) Earning finance commission: important if the actual profitability in the deal is tight as it can provide much-needed extra income – every little bit helps (even if it is a modest sum such as £50). 4) Volume bonus: another source of income that’s most likely paid monthly, quarterly or annually to the dealership. Captive customers can provide the basis for achieving the dealership’s volume targets quickly and easily. 5) Higher repeat business: customers who use POS finance are more than twice as likely to return to the original dealership as those who pay by cash, credit cards or use personal loans from their banks. 6) Captive customers make up a huge percentage of car buyers, so their business is essential to most dealerships achieving their unit-based sales targets. If you want to improve sales to captive customers then you might be interested in looking at the training session we deliver to our supporting dealers – you can adapt the material to suit your own needs. Simply email to jimm@frfl.co.uk to receive a free copy.

‘Not everyone has the funds to buy a car outright.’

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 | 29

dashboard.

Around the world Dealer news from somewhere other than here

Car supermarket Motorpoint opens new site in Essex bit.ly/MotorpointEssex

USA

Young car buyers are flocking back to the new vehicle market, according to a report by JD Power. Easier-to-access credit and an improving job market are likely to be fuelling the increase, with the survey suggesting that the under-35 market now accounts for 23 per cent of retail buyers.

MEXICO

Illegal cross-border imports from the USA are harming used car sales, according to Mexico’s dealers. Around six million of the black market cars are currently on the country’s roads, and are simply driven over the border and not officially registered. USA-market cars are favoured over their Mexican equivalents because they’re viewed as having been looked after more carefully.

UAE

Once-neglected used car dealerships are starting to up their game, according to GulfNews.com. With two new cars being sold for every used one in the UAE, second-hand sales have traditionally received less of a focus. ‘The growing demand for pre-owned cars in the first half of 2012 is attributed to the improvement in the quality of used cars sold by the dealerships,’ said Mahesh Rohra of Arabian Automobiles.

250

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SOUTH AFRICA

CHINA

Japanese automakers are facing a slump in Chinese sales, thanks to a political rift between the two countries. Protests against Japanese industry have forced Nissan and Toyota to shut down their Chinabased manufacturing plants for three days, as sales reduce in the face of the campaign. ‘It’s very difficult to sell cars right now, but that’s true with every Japanese brand. Not just us,’ an anonymous Toyota executive told Reuters.

Demand for used cars has led to their prices reaching as much as 110 per cent of their original market value, according to South African dealers. Demand for used cars has soared by as much as 300 per cent in the country, according to Standard Bank’s Kevin Watson – adding that values for cars less than six months old were unlikely to be lower than their new list prices.

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big mike.

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

A pie, a pint and the purchase that led to a trouble-free trip home I

hate public transport. The reasons are many and varied, but let’s just say I’d rather drive across town in the world’s worst car than attempt the same journey in the world’s best bus. Back in the halcyon days, when I was a young man and the telly was black, white and grey, I used to source cars for my then boss from fleet companies all over the UK. He ran one of those backstreet garages where the cars on offer were usually fairly late models, but in the kind of condition that meant the more upstream dealers left them alone. They were the ones, for example, that had reached the end of a four or five-year fleet contract and had too high a mileage to retail or, more often than not, were simply falling apart. He’d underwrite them all for stupidly low prices and fleet managers would frequently give him a ring just to get rid – whereupon he’d despatch yours truly to go and pick the things up from wherever they were – quite often the arse end of the middle of nowhere. I was reminded of those days a short while ago while attempting to work out how to get back to Birmingham from Surrey without a car. I was on the platform of Weybridge station, contemplating why on earth some train company numpty was making me fork out almost £200 just to get back to Birmingham on a Friday afternoon. Factor in my taxi fare at the other end, not to mention all the arsing around waiting, the inevitability of having to stand for half the journey and the need for sustenance in the form of watery tea and a stale sandwich, and I’d be in for well over two big ones. Not a happy man, I retired instead to a local pub to contemplate, and enjoy a pie that was, refreshingly, not being offered at Surrey prices. Forty-odd years ago, it was quite acceptable to endure such discomforts with train travel. For starters, it was usually somewhere around a fifth of the price you’d hose into your fuel tank to get anywhere, and choppy as the ride often was, the timetable was generally quite trustworthy, at least until the 1970s started to sink their horrendous teeth into practically everything. But these days, public transport is woefully confusing. If, for example, I’d booked my ticket two weeks previously I’d have been spending around £30 for a saver ticket – perfect. But the reason I found myself in Surrey

Big

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

on a balmy Friday afternoon was because I’d sold a Jag on ebay, and the buyer had paid me a few extra sovs to deliver it. Anyone who runs their own business will tell you this – you follow the money, right? Two weeks previously, I didn’t even have the Jag for sale… While the pub chef was cooking my pie (something that, from the time it took, must have involved rolling out the pastry and killing the cow), I reconciled myself to the misery of public transport with a pint of London Pride (not quite sure why they’re proud of that one, it’s not exactly Banks’s…) and the local free-sheet. And there it was. Tucked away in the back of the classifieds, my ticket to freedom – or at least to a couple of hours of M25 exhaust fumes before being catapulted to freedom up the M40. Mine for the princely sum of £295 or nearest offer was a taxed and MoT’d 1989 Toyota Corolla

‘Not a happy man, I retired to a local pub to contemplate and enjoy a pie...’ Liftback (remember those?) in ‘Executive Titanium Grey’, complete with auto box and radio-cassette player. Given I was in for the best part of £250 already just to make it home, and on the basis that no human being has ever attempted to kill an old Toyota and won without a fight, it was worth a punt. I picked up the phone, the buyer was home, and they lived just round the corner. It was in the pub car park before my pie arrived at the table, and I no longer had to wolf it down to avoid missing my train connection. Perfect. And you know what? It drove me back to Birmingham without the merest hint of trouble, didn’t use a drop of oil and even had enough fuel in the tank to get me as far as Warwick Services. Okay, so it won’t win any prizes, and the body is hardly of an acceptable standard to retail even as a ‘PX to clear’, but it’ll do for my two mechanic lads to run around in as a parts trolley until the inevitable MoT expiry comes around. Unless, of course, you’re stuck in Birmingham as you read this, and don’t want to fork out for a train ticket home. If so, there’s a cracking little pub in Harborne that does spectacular pies. I’ll see you in the car park in ten…

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 | 33

helpdesk.

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £34.99 annual subscription

Ask Lawgistics Car Dealer Club lawyers Lawgistics answer dealers’ legal questions. Join for £39.99 a year to get advice like this when you need it

I have received a consumer questionnaire from the Financial Ombudsman Service stating a customer was not happy with the way we sold payment protection insurance. What do we have to do with this, if anything? VT, Lincolnshire As a seller of insurance products, you will either be directly authorised under the Financial Services Authority (FSA) or you will be an authorised representative (AR). In this way, you will be either directly or indirectly responsible to the FSA to follow the rules on selling PPI and other insurance products. You are obliged to investigate the complaint and respond within eight weeks of receiving it. If the customer is not happy with your explanation, it will go to adjudication. If there is still a disagreement, either side can have it referred to the ombudsman (FOS). The ombudsman’s decision would be final and, if not carried through by any penalty on you, the customer can have it formalised at court. The FOS can award money not only for financial loss but pain/suffering, damage to reputation, distress and inconvenience. You don’t get charged a case fee for the first three complaints dealt with each year and no supplementary fee is charged for the first 25 PPI complaints. The common reasons people allege the insurance was mis-sold are... n they were told the insurance was compulsory to get the finance;

ADVICE

Just 17 – so what are the employment rights here? Q. We have an employee who is 17 years of age. How many hours a week can he work and what breaks do I have to give him? WA, Warwickshire A. Employees who are of school-leaving age (16) but are under 18 cannot work as many hours in a week as those over 18. They can work no more than eight hours in a working day and no more than 40 hours in a working week. Employees of this age cannot opt out and work over these limits and further cannot average their hours over a period of time. Hours worked outside of these limits will n they didn’t realise they had taken on insurance; n the policy wasn’t suitable (for example, selfemployed exclusions); n previous medical problems led to exclusions from the policy. It is vital to keep documentation from when the policies were sold. In this way you will have documented evidence of ‘demands and needs’ questionnaires, the key facts relating to the policy and so on. If you do receive a PPI selling complaint – whether from a customer or via a claims management company – then always make sure you respond when you should as it is likely to

be considered a breach of the Working Time Directive. In regards to breaks, 16 and 17-yearolds are entitled to 30 minutes’ break for every 4.5 hours worked. They must also have a minimum of 12 hours between shifts and should have two full days’ break in a seven-day period. cost you a lot of money if you don’t. The FSA took over the regulation of PPI sales in 2005. So, if a customer tries to complain about the specific rules that came into place in 2005 for a policy purchased before that date then there is generally a straightforward defence to such an allegation. As a word of warning, if you sell cars on credit you will appreciate that there is now a more careful and documented process in place for these sales. It is only a matter of time before complaints arising due to misleading sales of credit begin to filter through to the FSA. So follow the rules to the letter and keep documentation for every sale.

Why you MUST respond every time Q. A customer has recently issued a claim against me. The claim is totally unfounded and the claimant is being unreasonable in that they are expecting new-car quality from a used car. I feel like throwing it in the bin because I’ve got plenty of other things to be getting on with. Do I have to respond to it even though it is a ridiculous claim? FT, London A. Unfortunately, you do. If somebody issues a claim against you, then, if you wish to defend the claim, within 14 days of service of the claim form, you must either return the completed

acknowledgement of service form (response pack) or return the completed defence form. It is never a bad thing to allow yourself a little extra time to prepare a defence so by sending off the acknowledgement of service, you then get 28 days from service of the claim form to put in your defence. Please note: If you do nothing in the timeframe, the claimant can get judgment by default irrespective of whether the claim is justified or not! If the claim is simply a sum of money, you will need to return the acknowledgement of service

and defence to the County Court Money Claims Centre, PO Box 527, Salford, M5 0BY. You will notice on the claim form that the claimant will have chosen a ‘preferred court’. You will have an opportunity to challenge this when you later receive a document called an allocation questionnaire. If you do receive a PPI selling complaint – whether from a customer themselves or via a claims management company – then always make sure you respond when you should as it is likely to cost you a lot of money if you don’t.

Let Lawgistics help you Lawgistics are extremely experienced when it comes to helping car dealers with legal matters. The firm has a reputation for assisting the motor trade with customer complaints, health and safety issues, trade-to-trade problems and much more. To get advice like this (worth £199) join Car Dealer Club for just £39.99 per year. Sign up at CarDealerClub.com 34 | CarDealerMag.co.uk

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forecourt. the knowledge Model: Audi RS4 Avant Price: £54,925 Engine: 4.2-litre, V8 petrol Power: 444bhp, 430Nm Max speed: 155mph (limited) 0-60mph: 4.7s MPG (comb’d): 26.4 Emissions: 249g/km Residual values (three years): tbc

target buyers: Previous RS4 owners and conquest customers of C63 AMG and BMW M3

the rivals: Mercedes-Benz C63 AMG Estate, BMW M3, Lexus IS F

Key Selling Points:

1. Impressive, characterful V8 engine. 2. Four-wheel-drive to make the most of the performance. 3. Five-seat, estate car practicality,

Deal Clincher: The only 4WD powerful medium estate on sale. Monthly AutoTrader.co.uk searches: 210,834

CABIN

It’s built to traditional Audi standards of interior trim quality, plus there are some nice, sporty RS bits.

Audi has sold 7,500 RS models since 1994 and this year sees the return of the ultimate A4. Martyn Collins has driven it What is it?

What’s the spec like?

The third-generation version of the fastest, most iconic A4 which is designed to combine supercar performance and everyday practicality wrapped in understated bodywork. Only available as an estate this time, Audi claims it is an out-and-out sports car, yet at the same time an out-andout estate. While there’s no doubt the Avant’s styling is elegant, the 490-litre boot isn’t the most generous.

Simple and well-equipped, as there’s just the one model. The car has an on-the-road price of £54,925 and comes with 19-inch alloys, a leathertrimmed flat-bottomed three-spoke steering wheel, leather/alcantara trim, electrically-operated sports seats, electronic climate control, carbon fibre interior inlays, Bluetooth and an MMI navigation system. If this isn’t enough, there’s a healthy list of options including different front seats, wheel designs and premium sound systems.

What’s under the bonnet? There’s just the one engine available in the RS4, a gem of a naturally aspirated 444bhp 4.2 V8 with FSI highrevving technology. Basically, what it lacks in torque it more than makes up for in revs. More surprising is that it remains silky smooth throughout the rev range right through to the 8,500rpm limiter. Acceleration to 62mph takes just 4.7 seconds and the barking V8 soundtrack is great.

What’s it like to drive? Ride is well-judged, although the tyre noise can get tiring on long trips. Steering is generally precise, but can feel artificial at low speeds. The sevenspeed dual-clutch gearbox is slick, but is at its best in manual mode. The Drive Select system offers three programmable modes for the steering and suspension,

What do the press think of it? Auto Express said: ‘The RS4 is just about all the car you’ll ever need. Like all the other RS models, it’s muscular yet understated, and delivers huge performance.’ What Car? concluded: ‘The only disappointment is that it doesn’t thrill that much at normal speeds. The Mercedes C63 AMG feels more special more of the time.’

What do we think of it? The latest RS4 gets better and better the harder it is driven, the engine is a masterpiece and the quattro fourwheel drive chassis means you should be able to exploit the performance more of the time. It looks great too, with the blistered arches, front bumper with enlarged air intakes and the mesh grilles. Where the Audi falls down, is that rivals offer a more involving driving experience.

Audi RS4 Avant LOOKS

Customers won’t confuse RS4 with the standard A4 Avant, thanks to blistered body.

DRIVING

The RS4 is very quick and the ride is well-judged. Shame the steering is a bit artificial at low speeds, but it’s very precise. 36 | CarDealerMag.co.uk

in association with INSIDE

Build quality is now up with the sector’s best, and the SW boasts a large 528-litre boot capability.

ON THE ROAD

ENGINES

This is no sports car – but did you expect anything else? – and is comfortable and refined to drive.

Customers are best advised to plump for the 1.6-litre diesel engine. It’s punchy and boasts pleasing economy figures of 64.2 mpg.

Kia Cee’d SW

the knowledge

Kia expects to sell 15,000 Cee’ds in the UK next year and 50 per cent could be the new Sportswagon. Martyn Collins reports What is it?

What’s the spec like?

Get over the confusing name and it is basically the estate version of the all-new Cee’d with a large 528-litre boot. Based on the highly-competent Hyundai i30, the Sportswagon is designed to offer a serious alternative to C-segment leaders such as the Ford Focus, Volkswagen Golf and Vauxhall Astra, with its distinctive looks, improved build quality and the security of the seven-year warranty.

Available in five trim levels: 1, 2, 3, 4 and 4 Tech. All are well-equipped, even the entry-level 1.4 1 gets standard air-con, Bluetooth and six airbags. Expected best-seller, the 1.6 CRDi 3 includes dual-zone air-con and touchscreen sat-nav. Prices start at £16,895. Rising to £19,295 for a 2 spec car, the cost increases to £21,095 for the 3 and £24,795 for the rangetopping 4 Tech.

What’s under the bonnet? The Sportswagon is available with an 89bhp 1.4, or 126bhp 1.6-litre CRDi diesels, but the 1.6 is expected to be the bigger seller. The 1.4 seems the sweeter unit of the two, but the lack of poke over the 1.6 is obvious and makes overtaking more of a challenge. The 1.6 has plenty of low-end torque, but runs out of puff in the mid and upper areas of the rev-range.

What’s it like to drive? The ride is very refined, the result of the independent rear suspension, and even the worst Slovakian potholes barely registered in the Cee’d’s cabin. The interior is pleasantly hushed and free from wind noise, but you can hear both diesel engines a little too much. Steering is responsive, but can feel artificial. A slick six-speed manual gearbox, the clutch is light too. Plenty of grip in corners and there’s some body roll, but it never feels sporty.

What do the press think of it? Auto Express said: ‘Let’s ignore the name – the Kia Cee’d Sportswagon is anything but. Instead it’s a big, comfortable rival for the Ford Focus Estate, Vauxhall Astra Sports Tourer and Volkswagen Golf Estate.’ Autocar concluded: ‘If a C-segment estate features on your wish list, then this Korean – but very European – take on the subject is a worthy and competent contender.’

What do we think of it? Like the hatchback that came before it, Kia should be justifiably proud at how close the Cee’d Sportswagon gets to class greatness. This European designed and built Korean car is good to drive, with the classiest interior yet from a Kia. It is also well-equipped and likely to be cheap to run. If the Cee’d had more distinctive styling and sharper dynamics it could become the class leader.

Model: Kia C’eed 1.6 CRDi 3 Price: £21,095 Engine: 1.6-litre diesel Power: 126bhp, 260Nm Max speed: 120mph 0-60mph: 10.8s MPG (comb’d): 64.2 Emissions: 116g/km Residual values (three years): tbc

target buyers: Previous Cee’d SW owners. Conquest buyers from established rivals.

the rivals: Hyundai i30, Ford Focus, Vauxhall Astra

Key Selling Points: 1. Interior quality almost up to class leaders. 2. Composed, refined ride. 3. Seven-year warranty.

Deal ClincherS: Improved interior and seven-year warranty. Monthly AutoTrader.co.uk searches: 95,312 CarDealerMag.co.uk | 37

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Feature.

18-page paris SpeciaL

showtime! It’s

Editor James Baguette reports from the Paris Motor Show where UK car manufacturing giants stole the show

ot since 1944 have the Brits invaded France with such success. At this year’s Paris Motor Show there were countless (well 99, but countless sounds better) new car debuts and it was the British brands, including those making motors on our tiny island, that really grabbed the headlines. Jaguar Land Rover were the undoubted star. The new F-Type was constantly surrounded by sweaty hacks for the duration of press day – and our chat with the brand’s managing director revealed just how important the new sports car

is to the car maker. In fact the firm’s boss Jeremy Hicks is in a rather nice position right now – Jag’s sister brand Land Rover is about to unleash the new Range Rover on the world too, which could just help the maker notch up record profits in the not too distant future! McLaren unveiled its P1 hypercar. Unfortunately its unveiling was right at the end of the first press day when most journalists were drinking 1664, but we hung about to check it out and can report it’s an absolute stunner. And it was those other mainstream

manufacturers that make their cars in Britain that could report real success stories. Nissan is riding high on buoyant sales and a car factory that can’t make vehicles quick enough; Toyota is basking in its hybrid innovations; while Honda has promised its new Civic Type R will bring excitement back to the firm – something that’s long been lacking. Car Dealer spoke to no less than 15 top executives at the show to bring you the stories behind those cars and over the next 18 pages we report on what they had to say. Vive l’Angleterre!

CarDealerMag.co.uk | 39

Feature.

The cat’s out of the bag ...and there’s certainly no shortage of interest in Jaguar’s new F-Type. James Baggott reports

Bonnet hides a 3.0litre V6 or a 5.0-litre V8. Mmmm...

ore than 1,000 buyers have placed a deposit or have seriously expressed an interest in buying the F-Type. Jaguar Land Rover managing director Jeremy Hicks told Car Dealer that he asked his dealer network to find out just how popular the new sports car would be – and the results came as a nice surprise. The F-Type’s best ‘We went to the network and facial feature is asked how many people were this gaping grille seriously interested,’ said Hicks. ‘Now you never know exactly, offensive from Jaguar. The XF Sportbrake will but what we have found is a very strong level of also be arriving soon and the manufacturer is interest. F-Type will draw from other segments exploring other volume sectors to tackle too. like performance saloon and coupe buyers ‘We are laying the foundations for growth and because the design credentials are great. that means new cars in new segments,’ revealed ‘We want this car to re-establish the Jaguar Hicks. ‘The obvious place to go is down in the brand. It is a big statement car and returns us to burgeoning area of the market. We need smaller where our roots lie – sports cars.’ cars, saloon cars and crossovers. Priced from £58,000, Jaguar is aggressively ‘We are certainly looking at the crossover targeting the Porsche 911 and even though market. You can’t avoid the fact that the SUV the sector is a relatively small one in terms of market is growing and even though we are there sales, the British manaufacturer is hoping for with Land Rover – the definitive SUV maker – great things. there is scope for Jaguar too.’ ‘We have huge expectations around what this Hicks explained JLR invests £2bn a year in car can do for the brand,’ added Hicks. ‘It’s not R&D – he claims that’s the most of any UK car going to be massive in terms of volumes – you manufacturer – and the team are looking at have to remember this is a small, niche sector we several options. A replacement for the are operating in. X-Type is one. ‘The good news is we’ve got home advantage, ‘Jaguar has an opportunity to move down it’s well priced and drives brilliantly. Those are from the XF,’ he said. ‘A Mondeo sized car. We three very positive things indeed.’ were there before with the X-Type and did very The F-Type, which arrives in the brand’s 90 well with it, so there are clues there for you. ‘The dealers in the spring, is just the start of a product problem with the X and S Types, in my opinion, 40 | CarDealerMag.co.uk

was that they were too retrospective. The F-Type isn’t – it has lineage and clear DNA, but it’s not a retro car. We need to keep an eye on that for our future products.’ JLR has been a fantastic success story in recent years. As recently as 2008 the manufacturer was accepting loans from the government, but as new

NEW RANGE ROVER

‘A class of its own’ The new Range Rover is pulling in the punters too – JLR boss Jeremy Hicks has confirmed the maker already has 1,400 orders just weeks after the car went on sale. The new £71,000 luxury off-roader is enjoying healthy demand already and Hicks believes that’s down to the car being in ‘a class of its own’. ‘We’ve got 1,400 orders already and that’s because it’s such a unique car,’ said Hicks. ‘We have driven down emissions, improved fuel economy and that ticks a lot of boxes. It hasn’t

PARISSpeciaL

Top five

show cars

Drop-top for now. We’re hoping for a coupe soon Curvy haunches are a throwback to E-Type of ‘61

McLaren P1

This sits above the MP4-12C and is the successor to the F1. No performance data is known, but it’s rumoured to cost £800k!

HHHHH

Bentley GT3

Just a concept for now, but it could mark Bentley’s return to motor racing. No arguments here – it looks epic.

HHHHH

BMW Active Tourer concept 5.0-litre V8 can top 186mph. Big brakes are needed for this

Interior of Jaguar’s new F-Type

products have launched successfully the maker has bounced back. ‘What’s the secret to it? Well, that’s all down to great cars,’ explained Hicks. ‘If you go back to the crisis there was a combination of financial problems, the SUV market was down in general, and this was immediately prior to the XF launch.

moved too far away from what the Range Rover stands for either. I think our sales numbers will really be constrained by production and whether we can get enough of them. ‘This is a great story for Britain – it’s about engineering, designing and building cars here and that is just great for the UK economy.’

‘Since then we’ve had some great product launches with XF and Evoque which have transformed things. We’ve hit some real sweet spots and we are up 30 per cent year on year. ‘Really, I put that down to a passionate team of people at JLR. Every car maker will say that, but as the new boy here I can see the passion for the brands is quite incredible. There’s a can-do attitude and a real belief that we can do stuff. Even the dealer network can see that.’ Hicks said the dealers are seeing the returns too with profitability up. But the MD has ruled out increasing the size of either the Jaguar or Land Rover networks from their current 90 and 120 points respectively. ‘Both franchises are profitable,’ he said. ‘But that doesn’t mean we are going to drive growth by expanding the network. The current sites are making good returns so it is more important to drive more capacity through those. We can see bigger sites at some of our outlets, but not new dealers.’

Another concept, but it’s pretty ready to go. First Beemer to have a transversely-mounted engine, plus it’s a plug-in hybrid. Looks good.

HHHHH

Mini Paceman

Mini wants you to think it’s a mini (pun) Range Rover Evoque. Cynics say it’s a Mini Countryman with three-doors. You decide...

HHHHH

Porsche Panamera Sport Turismo

This is like a shooting brake version of the Panamera, but has a plug-in hybrid powertrain. It’s a concept but can still muster up 416bhp.

HHHHH CarDealerMag.co.uk | 41

Feature.

Would you Adam and eve it? [Even Vauxhall thought new name was odd!]

Can this distinctive new car help Vauxhall become number one in the UK? James Baggott reports

auxhall gave its new small car a unique badge because management believed a person’s name would make it more appealing – but Vauxhall’s chairman has admitted it does sound ‘odd’. Several other human names were up for discussion, but Adam was picked because it had ‘emotional appeal’ while research in the UK was the most positive of all of that carried out across Europe. Vauxhall chairman Duncan Aldred told Car Dealer at the Paris Motor Show that many people in the business wanted to stick with the car’s codename – Junior – but another manufacturer already held the rights to it. ‘Giving Adam a people name gives it a softer appeal and helps a bond develop with customers,’ explained Aldred. ‘I was in on the decision as far as the research and with these things you have to take a risk – a calculated risk, though. The research in the UK was strong – in fact it was the strongest across Europe. People thought it was unusual but they immediately appreciated it gave the car appeal and a personality. Adam is a neutral name. It doesn’t have any connotations, it’s a nice warm name.’ Aldred revealed Vauxhall even considered resurrecting the famous old Viva badge for the new small car, but this was only really a popular move in the UK. ‘I liked it,’ he explained. ‘I thought it would give the name a new lease of life. But there may have been some negativity for some people. What Adam does is demand attention and discussion and that’s important for a car like this. Yes, it is an 42 | CarDealerMag.co.uk

There’s three trims too: Jam, Glam and Slam. No ham though This colour is called ‘James Blond’. Others include ‘Papa Don’t Peach’. Yes, really odd name, but no one thinks it’s bad – just odd.’ Adam will attempt to move Vauxhall into the premium arena with models starting at £11,255. Aldred said the brand expects to sell around 10,000 in a full year, well under the Corsa and Astra which notch up around 40-50,000 sales a year. But Adam has a far more important role than simply adding to the manufacturer’s new car registrations – this car is about changing buyers’ perceptions. ‘Adam will help people reappraise the brand,’ explained Aldred. ‘In conjunction with the other products we’ve introduced – Ampera, Mokka, the Cascada convertible next year, as well as sponsorship of the national football team – these are all big ticket things that will get people to look at the brand differently.’ All Vauxhall dealers will appoint a specialist to sell Adam models. Buyers are expected to configure their cars on Vauxhall’s dedicated website. With thousands of personalisation options available, buyers are likely to spend hours ensuring their Adam is right for them, then they’ll print off the details and dealers will simply be expected to take the order.

‘Orders open within four weeks on our website and buyers will be able to build their cars online,’ said Aldred. ‘It will all equate to a very simple monthly payment from our affordable finance scheme. We’re aiming at the iPhone generation that thinks nothing of paying £50 or £60 a month for a phone, but questions paying £200 a month for a new car. We’ll be tying to tap into that monthly payment mindset. ‘The configurator will be a lot of fun. It will be a different shopping journey – one of personalisation. But there will be a lot of choice and there is a danger that some people will be put off by that so we will highlight the most popular configurations and let buyers use those as starting points. These will refine over time as we see what options Adam buyers go for.’ It all sounds very exciting, but is it enough to help Vaxuall close the gap on market leaders Ford

PARISSpeciaL ‘We can’t rule out more down time’

Adam can have headlining embedded with LEDs, like a Rolls-Royce. Sort of

Three engines: A 68bhp 1.2 & 1.4 with 85 or 97bhp

Adam has shades of 500, A1 and Mini in its looks vauxhall chief

Adam VXR variant? in the new car sales charts? Well, it seems that’s not a priority for Aldred. ‘This year we are moving away at grabbing market share at all costs and focussing on retail sales,’ he explained. ‘Our model range is now very appealing to private buyers and we are targeting them. We have grown our retail share by one percentage point this year, closing the gap on Ford. Last year they were at 12.5 per cent and we were at 8.5. Now we are at 9.6 per cent and they are at 12, so we have closed the gap significantly. ‘We won’t target fleet sales at all costs just to grow registrations. We need to focus on more profitable retail sales. I want to be number one for retail.’ We’ll be watching the maker closely over the next few months to see if Adam, Mokka and the firm’s other new products are enough to help Aldred reach his ambitious target.

Vauxhall UK chairman Duncan Aldred said he would like to see a VXR version of the Adam. Aldred, a huge VXR fan who famously had a Corsa VXR Nurburgring as a company car, told us the new Adam is the perfect model to be given the VXR treatment. ‘The Adam VXR would be the right car for the brand,’ Aldred told us. ‘But it would not just wear a VXR badge – it needs to be the complete package with the right chassis and the right engine.’ The Adam VXR would more than likely use the same engine as the hardcore Corsa VXR Nurburgring. That’s a turbocharged 1.6-litre petrol engine developing 202bhp. It can top 143mph. Aldred added that an Adam VXR would be positioned to take on premium hot hatches like the Mini Cooper S and Abarth 500. There’s no official confirmation Vauxhall will build the Adam VXR, but the fact the boss is talking about it is certainly encouraging.

Vauxhall hasn’t ruled out shutting its UK factories for another ‘down week’ this year following the plants’ closures at the end of September. If the economic situation continues to deteriorate in Europe, the manufacturer will be forced to shut its factories at Ellesmere Port and Luton again. In an interview at the Paris Motor Show, Vauxhall chairman Duncan Aldred told us that the decision to ‘go cold’ this week was ‘absolutely the right thing to do’ and that he can’t rule it out happening again. ‘We look at the economic outlook across Europe every month and take a decision in the first week of the month on our capacity,’ he explained. ‘We cannot afford to build up stock. It takes up cash flow and damages our business. The savings from closing the factory for one week rather than simply slowing down the line are massive. ‘Just to give you an example, if we were to run a four-day week instead of a five day week over a year we would save £1m in utilities alone.’ Aldred said he believed the closures were the smart thing to do and explained that the labour agreements put in place with the workforce when the contract for the new Astra was secured for Ellesmere Port enabled the maker to ‘bank’ the hours lost this week so they don’t incur overtime charges when they’re needed again in the future. ‘The beauty is the workforce still get paid,’ added Aldred. ‘Ironically the UK car market is up, as is Russia, but the picture elsewhere is worsening. ‘Shutting down for another week can’t be ruled out. We have not got a plan for another shut down at the moment, but we have to revaluate that every month. There are concerns in German, Europe’s biggest market, and that could cause further problems and we’ll have to take appropriate action.’ CarDealerMag.co.uk | 43

Feature.

A new icon Honda: We’ve learnt lessons from last lukewarm Type R

onda has learnt lessons from the lukewarm reception the previous generation Civic Type R received – and the firm’s UK boss has promised the new one will become ‘an icon’. For years the Japanese manufacturer has been in the doldrums with below par products that have failed to excite buyers. Honda UK chief Dave Hodgetts said the manufacturer realises that and is focussed on producing halo products that will bring the excitement back to the brand. ‘The new Civic Type R will be a total reflection of the fact it used to be an icon and will have really, really high performance,’ he told Car Dealer at the Paris Motor Show. ‘There is an understanding at Honda that the last one wasn’t up to the level expected. We really need an iconic halo car and the new one will be the genuine article.’ Hodgetts said the new Civic Type R will hark back to the success of the Integra Type R models with high performance at its heart. ‘Power output will be around 280bhp – it’s a proper car,’ he added. ‘Honda want it to be the fastest front-wheel drive car around the Nurburgring so it will be up against the Megane RS. That’s a challenge, but it will be a genuine sports product harking back to the good old days.’ Honda moved away from sports products as the recession struck, but there is now a realisation at the maker that it needs to inject some passion back into its products. So can we expect to see more Type R variants? ‘There are no plan to do other Type R variants yet,’ said Hodgetts. ‘But that can always change. Currently the priority is to get the Civic version

right. From a Honda point of view there is a realisation that these cars are what we need to be a success – we used to do them very well and we need to do that again. It’s a shame it got lost. A function of the recession curtailed a lot of the European development and an overall environmental focus at Honda thought sports products were not the right thing to do. ‘Yes we do need to look after the planet, but that can’t be done at the exclusion of genuine sports products. They are sold in small numbers, but have a great halo effect over the brand.’ Hodgetts also wants to see a spiritual successor to the S2000 return to the Honda line up. The popular two-seater sports car went down well with buyers and dealers alike, and it’s the Honda network that really wants to see it return. ‘When I talk to our dealers they all want an S200 again,’ he explained. ‘That type of car was great. It was popular with owners and slots in alongside the Civic Type R nicely. There are no specific plans for an S2000 yet, but everyone wants one. We want one of those the most – it would give us brand prestige. ‘Europe has asked for it and I am sure Honda want to do one again. However they are focussed on the NSX at the moment, but I wouldn’t be surprised if over the next few years Honda decides to do an S2000 type car again.’ Hodgetts said he is excited about the firm’s new 1.6 diesel engine which will be available in the Civic and CRV and expects it to open up a ‘whole new market’ to the brand. He also said he is looking forward to having a Nissan Juke rival in his range. ‘A Juke rival is coming – I’ve seen it,’ revealed Hodgetts. ‘It’s a new sector for us and will open

new nsx

25 buyers pay deposit Honda UK has taken 25 £5,000 deposits for its new NSX supercar already – and buyers don’t even now how much it will cost! Honda UK boss Dave Hodgetts revealed that order books for the car, which won’t arrive for another three years, had opened and that buyers had already handed over cash to get a place on the waiting list. ‘These buyers have to be quite keen,’ he said. ‘We have asked for a £5,000 minimum deposit, they don’t know the spec or the lead time. Looks wise it will be very close to the concept, but we have no idea when it will arrive.’ The new supercar is estimated to cost around £100,000 and won’t be sold in all Honda dealerships. The low volumes mean dealers will be picked on order banks and interest from customers alone.

Honda NSX up a new market. It won’t be as outrageous in terms of design as the Juke, it’ll be more Honda conservative. But it is a fantastic car and will be coming in around 2014-15.’ Hodgetts also revealed that there are currently no plans to replace the Accord in Europe. The high exchange rate with the Yen has made the current Japanese-built model unprofitable and Honda UK is no longer actively promoting it. The current model won’t be axed, said Hodgetts, it’s just that promotion has been pulled. ‘The Accord is made in Japan, so it is difficult for us,’ he said. ‘We are not putting anything behind it or bringing in many to the UK. We just can’t push it.’

‘‘

The new Civic Type R will be a total reflection of the fact it used to be an icon.

44 | CarDealerMag.co.uk

PARISSpeciaL

issan is set to launch a host of even hotter Nismo models when the brand rolls out its performance variants next year. Jim Wright, Nissan GB managing director, told Car Dealer that the manufacturer is planning a host of even faster and sportier cars to add to its Nismo range. The Nismo treatment – which will first be given to the Juke when a 200bhp version of the crossover arrives later this year – will be extended with RS models sitting above the range. Think of these like Ford’s hit RS models which sit above the ST variants of its Focus models. ‘Nismo will become increasingly important to us,’ Wright told us. ‘It is vital when it comes to communicating brand values and excitement. Juke arrives at the end of the year and then there will be an RS version next year that will be even more powerful and sporty. So you can see there is a plan to stretch the Nismo brand even further.’ Wright confirmed a Qashqai Nismo model will follow, but he said an appropriate power train needed to be developed. ‘Nismo has always been in the company, but it’s something only car geeks have really known about,’ he explained. ‘Rolling it out is about the brand and stretching that.’

Hot stuff

Even hotter Nismo RS models planned for Nissan’s performance brand The model Wright would really like to see given a sporty makeover is the Leaf. The Nissan MD said a Nismo badge on the back of the electric car would be a great message for communications purposes. ‘I think a Leaf Nismo would be great,’ he said. ‘If you look at the torque delivery and acceleration of Leaf, then a Nismo version could be very exciting.’ The Nismo sports models will play an important part in keeping Nissan’s star rising, believes Wright. The MD has enjoyed a fantastic period of success during his time in charge so is he worried about keeping the good times flowing? ‘We’ve been doing this at the end of the product cycle,’ he said. ‘This year we will sell more cars than we did last year. Then when we move into 2013-14, over the space of 18 months we will launch five new cars. This will all help. Then when you look at our loyalty its at the highest it has ever been. Our conquest

rate is excellent too. When you put these things together, volume grows. It’s mechanical – as long as the new cars deliver what we are expecting them to deliver then our volumes should increase. We’re in a good place.’ Wright also added that changes to the dealer network had resulted in positive things for the brand as a whole. He said a number of changes had been made with regards to partners with several leaving the franchise. ‘We’re getting better partners in better locations for good franchisees now,’ added Wright. Currently there are 188 dealers with the Nissan franchise. If that was to rise to 217 the brand would enjoy 100 per cent coverage of the UK. However, Wright is targeting 200. There are a number of open points that are causing issues – mostly down to finding the right property – south west London is one particular location. ‘London is always a problem,’ explained Wright. ‘But we have just found a partner for Aberdeen. That’s the fifth biggest retail market in the UK – it’s a very wealthy town.’

NISSAN MD JIM WRIGHT

Reluctant dealers finally accept Leaf sales Nissan MD Jim Wright told Car Dealer that dealers had finally accepted that all sites need to sell the Leaf. At first only a selected handful sold the all-electric car and Wright believes this made the purchasing decision even more complicated for buyers. ‘We don’t want it to be a niche model,’ he

explained. It is a chicken and egg situation: Without the dealer coverage and a charging infrastructure it is difficult for it to take off. Only having a small number of dealers selling the car puts customers off – they needed to think about it too much.’ Dealers have also seen an

uplift in sales of other models to customers who had originally come in just to look at a Leaf. ‘It’s an important halo model for the brand,’ said Wright. ‘And leads to other sales of other models.’ Nearly all dealers have now accepted they’ll have to sell Leaf as part of the franchise, explained the MD. CarDealerMag.co.uk | 45

Feature.

PARISSpeciaL

Chevrolet boss on £45m Man Utd deal Sheer number of fans across the globe led to manufacturer sealing seven-year deal with club

hevrolet’s decision to sponsor Manchester United came about because of the football team’s global audience, revealed the firm’s vice president of RND and sales for Europe. American Jim Bunnell told Car Dealer that the club’s 600m fans across the globe – not just those here in the UK – swung the £45m deal for the car manufacturer. The seven-year deal will see Chevrolet become the club’s shirt sponsor from the 2014-15 season. ‘I think the deal was a great play for Chevrolet,’ said Bunnell. ‘When you look at Man United as a property in football overall it’s got an incredible audience worldwide. I’m from the US and over there everyone is into baseball, hockey and American football, but in the last 10 years soccer has established itself. Beckham really started it when he went over there. ‘Man U is one of the most iconic teams of all sports. When you live it every day in the UK, that seems weird, but when you’re outside and look in, you see everybody knows Man United. Not everyone knows the details, but they know

how big they are. It really is an outstanding relationship for us.’ Bunnell said the sponsorship deal was signed off in the US and it helped that Man United is huge in emerging markets for the brand, like China, too. The car maker launched its Trax SUV at the Paris Motor Show, essentially Chevy’s version of the Vauxhall Mokka. But is it a bit late to the crossover party? ‘I don’t think so,’ said Bunnell. ‘When you look at the crossover market, it’s growing at a significant rate. It’s the perfect car at the right time. It’s part of Chevy’s heritage to be a sport utility car maker – it’s in our DNA and is a perfect car for us. It fits and will be a big hit.’ The Trax will help Chevrolet in its drive to increase sales in the UK. Bunnell was reluctant to reveal his ambitions in terms of numbers – ‘these are confidential,’ he said – however he does want the brand to grow. ‘We want to push in the right way,’ he added. ‘Firstly from a network standpoint we want dealers to be profitable. But it’s about smart growth by attacking business where there is a profit opportunity and not doing crazy things.’ LAST FRONTIER Bunnell believes Europe is Chevrolet’s ‘last frontier’ to conquer and the manufacturer will be working hard on ensuring it cracks it. He added: ‘We’re a small

Chevrolet Trax

brand with big ambitions. I spent my last 30 years in the US where Chevy is very well known and entrenched. It is doing well in China and South America, but Europe is our last frontier. ‘It’s a different market. Over the past six months if I’ve learned anything it’s that it is very complex. You have to understand every country and the laws and the culture. You have to embrace that and love it. It’s been a real adventure trying to figure out which way is up as every market has its own nuances.’ Bunnell hopes Cadillac will play a bigger role in the UK in future and thinks it can become a genuine rival to BMW and Mercedes. Currently the brand is only sold from a few dealerships in the UK because of an historical exclusive distribution deal with one dealer group. However, in the future, more sites could sell the brand. ‘It will take time to get the product right,’ said Bunnell. ‘We have to get Cadillac on the consideration list of buyers. We need to be on a par with BMW and Mercedes, but hardware is the key to that and we are not there yet. We have plans to get there but it will take time.’ The American chief also thinks that the technologically-advanced Volt was very important for the brand, despite the fact it doesn’t sell in large numbers. ‘It’s a tremendous concept – a significant innovation – and we’re first on the block with it,’ said Bunnell. ‘Is it a home run from a volume standpoint? No, but we didn’t expect it to be here, or in the US. It’s all about getting there quickly with the technology and learning. ‘The next evolution will grow. We’re not disappointed in it. Price-wise it is high, we know that, but in time we will learn more. It’s an experiment but technologically it is an incredible automobile. It’s important to be there first and learn – then grow as the market matures.’

mark terry

Chevrolet UK MD leaves to ‘pursue other interests’ CHEVROLET UK managing director Mark Terry left the business suddenly at the end of September. He has been succeeded by Andy Higgins. In a press statement, Chevrolet said Terry left to ‘pursue other interests’, but when Car Dealer spoke to the former MD two weeks before the 46 | CarDealerMag.co.uk

announcement he arranged to meet us a week after he had left. So the news came as much as a shock to us as to the dealer network. We asked the firm’s European sales chief why it had been such a sudden departure. ‘I can’t add anything as to why Mark decided

to go – he’s gone to do something completely different,’ said Jim Bunnell. ‘I met Mark. He was a great guy, always upbeat. ‘I don’t know why he has gone. People leave and join the business all the time. As far as I know, it was Mark’s decision to leave.’

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Feature.

Olympic winners BMW: London Games were brilliant for the brand – and the investment was well worth it

MW’s sponsorship of the Olympics resulted in a fillip for its UK dealer network, according to the firm’s UK marketing director. The multi-million pound investment in the London Games saw BMW dealers across the country pull in new customers and start ‘relationships’ with buyers it might otherwise have never attracted, according to the firm’s Chris Brownridge. But was the huge investment in the Games really worth it? Absolutely, said Brownridge, in an exclusive interview at the Paris Motor Show. ‘Without a shadow of a doubt, the Games was a huge success for BMW,’ he said. ‘It was a tremendous event for Great Britain and the way the whole country got behind it was very exciting. It wasn’t just a case of providing some cars, we really tried to engage with the event and supported a large number of athletes. In fact, if our athletes had been a country we would have been 10th overall as a country in the medals table. ‘The dealer network has been very positive about our involvement with the Games. Most dealers sponsored a local athlete and the network used the torch relay to generate unprecedented levels of traffic in their showrooms. Even the smallest dealers saw 4-500 people for an event.’ ELECTRIC DREAMS Although the Games saw an uplift at dealers in terms of customer visits, it’s the maker’s electric i brand that’s really got Brownridge excited. ‘It’s a new chapter for us,’ he said. ‘Because of the volume of sales for these cars will be low to start with we need to agree a strategy with the network that works for everyone.

‘Not every dealer will get to sell the i cars, however every group we are partnered with will have one site that can sell the models. The cars will be suited to certain areas of the country, so it will be better placed in some dealers rather than others. We are carefully managing this implementation.’ Brownridge explained that dealers had recently been flown to Munich where they were shown the EV i brand models and he said the reaction had been ‘extremely positive’. ‘Dealers are very excited about the EV brand,’ he said. ‘ They think it is a very exciting thing for BMW overall, however it is important we select the right partners for the programme and that there is a positive business case for those dealers. We know the volume will be small at the start and we have to manage that very carefully.’ The good news for performance BMW fans, though, is that Brownridge still believes the new i, and existing performance M brand, could work together in the future. The i8 already points the way towards performance EVs, but the BMW marketing chief alluded to more performance

eco-machines to come. ‘It’s about having an intelligent solution that has exhilarating performance in an innovative platform,’ he explained. ‘The i brand is about future technology and is different to the M brand, but even though they are different there is no reason they couldn’t be linked. BMW is an innovator at the end of the day. I would never rule out I and M brands interlinking, but currently they are different propositions.’ Talking of different propisitions, what are the chances of BMW creating a model of similar size to its sister brand, Mini? Could we ever see a model from the German firm that directly takes on the British-built city car? ‘It doesn’t cause us problems having Mini in the portfolio,’ Brownridge explained. ‘Mini is a brand in itself and enjoys a 2.5 per cent market share in the UK. The fact we have cars that are aiming for the same sector is not a bad thing. ‘Who knows if we could have a model in the BMW range that could take on the Mini head on? The small car segment is one we are looking at very carefully and it’s one that we are certainly very interested in. The Mini won’t hold us back in that respect.’

car thefts

We’ve done all we can to help owners BMW’s marketing director told Car Dealer that he feels the brand has done everything it can to placate owners of models that are liable to theft. BBC Watchdog reported that many criminals were breaking into BMWs, built between 2006 and 2011, and reprogramming a key via the diagnostics port to steal the car. Brownridge told Car Dealer that the fix for 48 | CarDealerMag.co.uk

these cars was usually a relatively simple one – an upgrade of the car’s computer ‘firmware’ which patches the loophole the thieves are exploiting. ‘Under EU law the port had to be in the car,’ explained BMW’s Chris Brownridge. ‘BMWs have been targeted because they are desirable and worth stealing. We have responed very

proactively and customers who have concerns have been able to contact us and we can take action. If there is a car that the customer has a worry about then we can upgrade that vehicle’s software. It’s a bit like a computer in that we can upgrade the software to stop it happening. Car thefts affect all brands, but it’s our job to stay one step ahead of the game.’

PARISSpeciaL

Will we soon see a Supra successor? T

oyota’s partnership with BMW could spawn a successor to the legendary Supra, says the firm’s UK chief Jon Williams. The partnership – announced ahead of Goodwood earlier this year – will focus on developing green technologies and a sports car platform. ‘In terms of the next developments we have announced a partnership with BMW to develop a sports car and that is likely to be a hybrid,’ explained Williams in an interview with Car Dealer at the Paris Motor Show. ‘Our dealers want exciting cars that bring in new buyers. You’ll have seen with our product plans that, in the words of our president, we are rewarding customers with a smile. That is all about driving and the thrill of driving. That has come back with the GT86 and will continue.’ Williams said the Toyota dealer network of 182 sites had sold nearly 800 GT86 models between them and that would have been more if the manufacturer could have got its hands on them. ‘We’re hampered by supply,’ explained Williams. ‘But sales wise, it is doing well. It has

Motorsport programme plays a key role in promoting the Toyota brand, the firm’s UK boss tells James Baggott taken off with the network and inspired them. They were used to Celica, Supra, MR2 and sports cars are in their DNA, so getting this car into showrooms has enthused them and enthused customers.’ The Toyota president and managing director believes motorsport plays a key role in promoting the Toyota brand. The manufacturer made a comeback at Le Mans this year and its hybrid racer has just sealed its first victory in its third ever outing. ‘It’s important to have a motorsport programme that proves our new technologies,’ said Williams. ‘I think it does cascade into sales over time, but you need to be patient. It’s about influencing the opinion leaders and then you’ll see the benefit of that over time. We need to be doing exciting things with our cars that engages enthusiasts.’ At the Paris show, Toyota unveiled the Auris Sports Touring hybrid – and it is, unsurprisingly, the car Williams is most exited about.

‘It’s a full hybrid, built in the UK, with batteries under the seats so there is no impact on space and it’s class leading in terms of cost of ownership,’ he said. ‘The package is very good. This is really a leadership statement in the C segment and I’m very excited about this car.’ Williams said there are currently no plans to expand the brand’s dealer network, or the 47 Lexus sites across the UK, but instead he is concentrating on increasing the number of cars each site sells. He said his dealers are profitable, but added they are not making the returns he would like. ‘We’re working on improving that,’ he added. So what is Williams looking forward to? Well, believe it or not, the Toyota chief can’t wait for the firm’s new van to arrive. ‘I am excited about getting back into the commercial vehicle segment with our tie up with PSA,’ he explained. ‘Next year we’ll be back selling here and that’s something we’ve been missing. The replacement for the Hiace will be Transit sized and then in 2016 we’ll develop an all-new model. It’s a key segment and key to dealers.’

Toyota Supra

Toyota Auris hybrid CarDealerMag.co.uk | 49

City slicker

Country cruiser

Feature.

Mitsubishi’s on a charge

PARISSpeciaL

Image is changing and focus is being put on fuel economy and emissions, says UK boss

itsubishi will launch a plug-in hybrid or electric model of every car in its range over the next five years, the firm’s UK boss revealed to Car Dealer. Lance Bradley, the manufacturer’s UK chief, said the days of Mitsubishi being known for its big SUVs and rally-derived sports saloons are over as it sets off down a green technology path. At the Paris Motor Show the firm unveiled the plug-in hybrid version of the Outlander which is capable of 140mpg and emits just 50g/km. The 4x4 will have an electric range of 30 miles – the most of any hybrid currently on sale. ‘A few years ago we were famous for motorsport, for rallying, for Paris Dakar racing, for big 4x4s and high-performance saloons like the Evo, but in a market that is shifting towards economy and emissions, that is not an image that is sustainable,’ said Bradley. ‘Our future products will determine how people perceive the brand and they are going to be much more efficient with lower emissions than those we were selling five years ago. We are transitioning to becoming a more environmentally-friendly company.’ Bradley said each new model will be more economical, lighter and have better emissions than its predecessor – and that an electric or hybrid version of every new car will be available. ‘We will introduce electric or plug-in variants of every car, including the new Mirage. That will position us as an environmentally focussed and responsible company, with excellent credentials. ‘We have always been known for having reliable cars, and that won’t change, but where it’s changing is going from big SUVs and highperformance cars to having a range of vehicles

which includes highly-efficient petrol engines, ever more efficient diesels and electric and plug-in hybirds.’ Bradley admitted 2012 has been an incredibly challenging one for the brand in the UK. Sales are currently down 41 per cent on last year. Bradley said the exchange rate with the Yen was causing serious issues for the maker, effectively making cars twice as expensive as they were three years ago. This, compounded with a difficult economic picture in the UK, had meant the maker was finding things tough. ‘It’s a difficult time,’ he said. ‘We have products at the end of their cycle. We haven’t launched a new car for two years. The Yen remains extremely strong and that makes it very hard to make money bringing cars in. ‘Instead we are looking at next year and the new models, and focussing on that. Dealer profitability is our number-one priority. That is down on last year, but the top 25 dealers are doing better return on sales this year than last, so

the performance is polarised. The bottom dealers are doing worse so this is something we are trying to address.’ Bradley said rumours that Mitsubishi was considering stopping making cars completely were ‘absolutely false’ and added that the company as a whole was profitable – it’s just ‘Europe that’s the problem’. He added that Mirage – the new B segment car which arrives next year – is very important to the brand. The entire range will be launched with emissions under 100g/km, so they will all benefit from free road tax, and he sees the car playing a key role in dealers’ success. He added: ‘When we launched Colt we did 8,000 for the first few years and we expect to do between 5-10k units a year of Mirage. It’s a very good car. It will be a profitable car for dealers too, but they need to do volume with it. That’s the critical thing – no one expects to make £2k on a B-segment car, but if you can make a decent return and sell lots of them, then that’s great.’

MITSUBISHI BOSS

Will we ever see the passion return to Mitsubishi? Mitsubishi UK boss Lance Bradley insists that green cars can still evoke passion in petrolheads like the Evo did in the past. Despite the company’s focus on green credentials, Bradley believes that the maker can still produce exciting models. ‘You can be passionate about electric 52 | CarDealerMag.co.uk

and hybrid cars,’ he said. ‘On the front of the stand is the iMiEV Evolution that was in the Pikes Peak challenge – that’s an electric racing car. Just because it’s green doesn’t mean it can’t be exciting.’ Bradley, who famously insists on having an Evo as a company car (his current one is matt orange), would also

like to see the Lancer Evo return to the company’s portfolio. ‘It would be good to get that back,’ he told Car Dealer. ‘It is coming back but in a couple of years time. ‘There is talk that the next Evo will be hybrid and I think that would be an excellent idea. It should happen.’

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Feature.

RS badge is not dead Ford RS badge is simply on sabbatical, reports James Baggott

Grille poached from Focus ST. No mention of moutstaches, please

ord’s RS badge isn’t dead – it’s just resting. Those are the encouraging words of the company’s European vice president of sales and marketing and will come as music to the ears of fast Ford fans. Focus ST-driving Roelant de Ward is a passionate petrolhead and told Car Dealer that he is listening to the demands for another RS and said nothing had been ruled out of the product plan. At the launch of the brilliant Focus ST earlier this year, Ford chiefs categorically ruled out any faster models entering the Focus range. But it would appear European chiefs are now softening to the idea. ‘We will listen to the public and if the noise is loud enough we will respond,’ replied de Ward, when we asked if a Focus RS could make it into the line-up again. ‘We love cars at Ford. Lots of people here are in this business because they love cars so we will always have something really exciting for the petrolhead or track day lover on our radar.’ It’s hard to believe that Ford won’t release a successor to the RS, especially when the last generation of the performance car was such a hit. ‘The Focus RS 500 has become a collector’s 54 | CarDealerMag.co.uk

Baby ST has flared bumpers and these natty fog lamps

item,’ added de Ward. ‘Like the Ford GT it has held steady prices and the values are already creeping up. It is amazing. I was very pleased to read recently a piece that referred to the Focus RS as “The Daddy”. It is certainly very tempting to do one again.’ Positive words indeed from the European sales and marketing chief. But what about the current line-up? Well, de Ward thinks B-Max represents the biggest opportunity for dealers at the moment. ‘That vehicle epitomises everything that Ford stands for,’ he added. ‘It has unique features that really add something to the sector – all are significant innovations. ‘We have a very healthy order bank for that car. Many customers have not even seen it in

the flesh but have still put their money down. It is pulling in customers from all directions too – from Fiesta and from classes above. It’s an exciting car for Ford.’ De Ward highlighted the importance of the UK to the European Ford operation too. Ford is reported to be losing $1bn a year in its European operation as many markets have been hit by the crisis sweeping the Euro Zone. All of which makes the UK even more of a priority for the American car giant. ‘It is very important,’ confirmed de Ward. ‘It’s

PARISSpeciaL

Top five

ST is no slouch. 1.6-litre turbo gives 178bhp. Nice

Ford motors

Don’t worry – it can still carry shopping. It is a Fiesta, after all

Mondeo

Long ago, the Mondeo wasn’t premium. This one is and there’s shades of Jaguar XF in the looks deparment.

Kuga

It looks identical to the old one, but also strangely more expensive-looking. Designed to kick Kia Sportage’s bottom.

Ecosport

Weird name aside, this is a Fiesta SUV, believe it or not.

FORD FIESTA

New and improved BRITAIN’S best-selling car has received a make-over. The new Fiesta range kicks off with the three-door Studio model with a 1.25-litre 58bhp petrol engine. The newlyintroduced Titanium X model with either a 1.6-litre 103bhp engine or a 93bhp 1.6-litre diesel at £17,545 completes the line-up. New technology on the Fiesta includes Ford SYNC hands-free – and ‘MyKey’ which allows parents who lend the car to their children to limit the vehicle’s speed and stereo volume.

got the size and the history and the leadership. It is very significant. Ford of Britain enjoys a unique market as well. We have such a long history of market leadership there so all the ingredients make Britain really special. ‘The whole economy is struggling in Europe. Real estate, fashion, travel, whatever industry my friends work in they tell me the recession is causing problems. Automotive is not unique. ‘Europe is moving at very different speeds. Germany has held up very well at around 3.4m

Ford’s rally team has lowered the Fiesta ST by 15mm

Transit

It’s been Britain’s best-selling van for 47 years. New one gains odd looks, but is now a global product and will be on sale in six continents.

cars, France is pretty stable at 2.4m, the Nordic markets are stable too. Then you have the UK that came down a little bit then bottomed out and stabilised. Then there is the south which is up to 70 per cent down. Things are tough.’ But just how tough? Is the market bad enough to worry de Ward? ‘The car market is cyclical,’ he said. ‘A recession requires everybody to rethink what they do. I am very confident about the future, but that doesn’t mean these are not very challenging times.’

B-Max

Ford is expecting great things from this car. It has no B-pillars and is based on the Fiesta platform. Best in class, we think. Words: James Batchelor CarDealerMag.co.uk | 55

Feature.

Audi SQ5

udi UK MD Martin Sander has backtracked on his negative stance on RS versions of Q models, telling Car Dealer at the Paris Motor Show that they’re now ‘a possibility’. When we spoke to Sander at the Geneva Motor Show in March, Sander told us Audi was ‘unlikely’ to build high-performance versions of its SUVs. However, since then the maker has announced the SQ5. So is this a precursor to RS variants too? ‘I would not want to see an RS that is not an extreme sporty model, so combining RS with Q would be challenging,’ Sander told us. ‘I don’t want to say it is impossible though and if there’s one company that can really make it happen it is Audi. It needs to have the right characteristics.’ Sander said an RSQ model would work better on the 3 or 5, rather than the larger Q7, but added that the performance from the brand’s new bi-turbo diesel engines could make for an exciting proposition.

PARISSpeciaL

Audi torque It might be getting complicated, but for dealers there are some fantastic opportunities, firm’s UK boss tells James Baggott The UK chief added that he can see room for more general expansion of the brand’s Q range – most likely below the Q3 – and said he’d like to see the RS models expanded in the manufacturer’s range too. He also wants to see plug-in hybrid options added to the powertrain line-up across the board. ‘We have some fascinating possibilities to bring new combinations to the market and create new products that are not in the market already,’ added Sander. But the UK chief admitted that it does create a complicated proposition for its dealer network – but one with ‘fantastic opportunities’. He said: ‘No one else has such a broad product range so whatever customers are looking for, whatever type of engine or body style they want,

they can find it in an Audi dealer. This means it is more demanding to run an Audi dealership than it was 10 years ago, but this is part of our strategy and development of our brand.’ One way Sander wants his dealers to get around the need to showcase the entire Audi range is by implementing aspects of Audi City, the marque’s digital dealership. The UK boss says elements of that outlet will be implemented in other sites, such as the digital display and interactive configuration ‘table’. ‘This is our way of dealing with the complexity of our model range,’ explained Sander. ‘We have more than 30 models in our product portfolio and we can’t expect our dealers to build 30-car showrooms – it is just not viable. So we have to look at other possibilities using new technology in a very smart way to present our range.’

Skoda aims to double sales and become a UK top 10 player Skoda is aiming to double sales from 50,000 units a year to more than 100,000 – and new products will play a key role, believes the firm’s UK director Alasdair Stewart. Speaking to Car Dealer at the Paris show, Stewart said cars like the Rapid and Citigo will be vital in the brand’s push to become one of the top-10 selling manufacturers in the UK. ‘We are at three per cent market share and we want that to move to five,’ said Stewart. ‘That would put us at double what we’ll do this year up to 100,000 cars. Skoda has big plans globally – it wants to sell 1.5m cars a year by 2018 with a global 56 | CarDealerMag.co.uk

market share of five per cent. There’s no reason why we shouldn’t aim for the same in the UK. ‘The French brands are losing share and we are picking up a little. The Koreans are also growing though – Kia are our biggest rivals.’ Launching new products and replacements for existing models in the range will help the ambitious manufacturer achieve its target, explained the UK chief. Citigo has already helped. It has sold 3,500 models this year – that’s Skoda UK’s entire allocation. Next year Stewart expects it to outsell the Seat Mii by registering around 5,000 units. ‘We will be spending more money to get

our brand recognition higher,’ he said. ‘We plan to spend ahead of our market share on social media, on TV and through PR.’ Stewart said Skoda is also working on revamping its dealer network. This has meant around eight per cent of the network will be changing as they refuse, or can’t meet, the demands of the manufacturer’s expansion plans. ‘Our traditional dealers are owner drivers and not always in major cities,’ explained Stewart. ‘We are moving in now with bigger regional and mid-sized groups. These are in larger conurbations giving us a more blended network.’

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Feature.

Xxx xxx Clever cabin includes a seven-inch tablet in the dash

Xxx xx xx

Clio gets 0.9-litre and 1.2-litre petrols. And a 1.5-litre diesel

We’re back!

Nicole will like sexy rear-end. Papa may struggle to find the rear door handle

It’s time for Renault to feel confident again, Jerome Stoll tells James Baggott

e confident, we’re back – that’s the bold message being delivered to dealers from Renault’s vice president of sales and marketing. Speaking to Car Dealer at the Paris Motor Show, Jerome Stoll said the good times will soon return to the dealer network as the firm pushes from its current two per cent market share back to nearer five. He admitted the huge network cuts at the end of last year were tough, but he is adamant it was the right thing to do – and now the maker is ready to rebuild the brand. ‘A year ago we decided to change strategy in the UK,’ explained Stoll. ‘Many people were wondering if we were right or wrong, but we had been losing a lot of money in the UK and to 58 | CarDealerMag.co.uk

stay with a line up that was not relevant to the market didn’t make sense. ‘The dealers were losing money, we were losing money – we were all losing money. So no one was very happy. When dealers are losing money they are not offering the best service to customers either so we decided to restructure.’ Stoll says where a dealer used to sell 400 cars a year, he now expects the trimmed down network to shift 600 cars per site instead. All dealerships in the UK will also sell the Dacia brand, which will boost profitability. ‘By adding a second brand which will allow them to share back office expenses then they will become even more profitable,’ explained Stoll. ‘We need to be bold. We will be back, but

our partners have to trust us. They have to trust the strength of the products and together we’ll be back.’ Stoll said the new Clio 4 will play a vital role in the recovery. Debuting a fresh new style and engines, the city car catapults Renault back into a sector it’s long been successful in. ‘This is an absolutely key moment for Renault because the Clio 4 represents the new brand identity for us,’ added Stoll. ‘Clio is in one of the biggest market segments. For years we have been experts in this segment and it is important to come back here with cars that are no longer boring and are more exciting in terms of design. We can take a large slice of the cake with new Clio. ‘It will be one of the pillars of our recovery. There will be Clio, there will be EV and there will be Dacia.’

PARISSpeciaL Rear spoiler hints at sporty credentials...

Citroen DS3 goes topless I

...and so does this rear apron. Ooooh la la!

ntroducing the DS range to the Citroen line-up has been more successful than the firm could have ever imagined. The French firm’s chairman, Frederic Banzet, told Car Dealer that the premium range of cars had notched up 250,000 sales since it was introduced, far above the maker’s expectations. ‘It was a bold move for a generalist manufacturer to move into the premium territory, but in just two years we’ve sold a quarter of a million DS models,’ said Banzet. ‘It is going very well. We’ve just launched the brand in China and it has been very well received by the press there.’ But has the DS range’s success come at the expense of the standard C models? Some dealers Car Dealer has spoken to have admitted they struggle to sell the other models in the Citroen line-up. ‘I’d say those dealers you have spoken to are absolutely wrong,’ said Banzet. ‘In the UK, DS is approximately 20 per cent of our sales. So that means 80 per cent of sales are the C range. ‘The problem with our network is there is a large difference between the best performing dealers and the worst. There are ones who are able to extend sales with the DS and maintain C sales too, and there are dealers that struggle to do that – it’s a question of maturity.’

The new DS3 cabrio So what’s next for the DS range? Well, Banzet is looking forward to the DS3 Cabriolet arriving next. Then there will be a three-box, C segment model for China, followed by an SUV, then a larger saloon. When asked if there will be a smaller model under the DS3, Banzet said it was ‘too early to tell’. And the French firm’s chairman also revealed that there would be no network cuts for his firm in the UK. In fact the maker has 20 open points which need filling. ‘We need to keep transforming the network,’ he said. ‘We need to keep making strides in customer satisfaction and uplifting the brand. That doesn’t mean increasing prices, but it’s about having a feel-good network where customers can feel good too.’

NEW RENAULTSPORT CLIO

Hot hatch rushes in RENAULTSPORT specialist dealers will be pleased to hear of a new Clio RS coming their way. The new car packs 200bhp from a turbocharged 1.6-litre engine that serves up more power than the old 2.0-litre. For the first time too it’ll be automatic-only, sporting Renault’s new dual-clutch gearbox with paddles on the steering wheel. It’s also the first sporty Clio to be supplied in five-door body style – as Renault has axed the threedoor across the range. Prices are yet to be revealed for either the standard Clio or the new Renaultsport variant but they will be on sale next year. CarDealerMag.co.uk | 59

Feature.

Even hotter 208 GTi?

PARISSpeciaL

Peugeot’s quickest-ever model is on its way to the UK

Peugeot’s 208 GTi

eugeot is already considering an even hotter version of the soon-to-arrive 208 GTi – and it could wear an ‘R’ badge. Peugeot UK managing director Tim Zimmerman told Car Dealer at the Paris Motor Show the RCZ R model shows that 260bhp can be achieved from the maker’s THP engine – but that performance has to be usable if it’s to be used in the 208. The firm’s 208 GTi will arrive in the spring with 200bhp and will instantly become the firm’s quickest-ever model. It will hit 60mph in under seven seconds, stealing the legendary 205 GTi 1.9’s crown as the fastest accelerating Peugeot ever. However, not a firm to rest on its laurels, the French maker hasn’t ruled out producing an even faster variant. And the UK chief said the R badge would be a ‘logical’ move. ‘There’s always scope for hotter versions,’ said Zimmerman. ‘You’ll have seen on our stand the RCZ R which has 260bhp. The 208 GTi is already the fastest Peugeot yet so I think we’ll just try and get to grips with that first. ‘But the RCZ R has shown that with the THP engine it is possible to get 260bhp. So there is scope for a hotter version of the 208 GTi. But it needs usable performance. Bhp is one thing, but you have to be able to use it and get the most from it. However, knowing our engineers, they 60 | CarDealerMag.co.uk

won’t be resting on what they’re already made.’ The 208 needs to perform in terms of sales too. The maker’s 230 UK dealers have needed a volume-seller which brings profit back to their businesses for some time – and Zimmerman says the new small car is doing just that. ‘The 208 has been very well received by the press and the public,’ he said. ‘We are very pleased with it. It’s not so much a saviour for Peugeot – I don’t think we need that as such – but it is clearly a key model for us. The B segment is very important and it is where we have a lot of credibility as a brand. We needed to get 208 right and luckily we have.’ Peugeot currently has 14,000 orders for the 208 and it is helping to push the brand into the premium arena. Zimmerman expects to sell around 2,000 GTi variants a year which would place it immediately as one of the biggest selling performance models in the segment, competing with the Mini Cooper. And if those sales figures turn out to be too conservative, more GTi models will be brought into the UK. ‘It could go either way,’ said Zimmerman. ‘It could take off like the 205 GTi did and if that’s

the case we can get more stock.’ The French firm has been trying to haul its models up in terms of quality and price, and the 208 is helping to achieve that, added Zimmerman. ‘Premium is happening,’ he said. ‘The 208 is already more premium at entry level. It has high levels of equipment for the price. Statistically our premium push is working.’ And fears that Peugeot could be the next manufacturer to cut its network size, following Renault slashing its outlets last year, are unfounded too, explained the UK boss. He said the brand needed to keep ‘proximity’ with its customers and its current dealer network size was key to that. He explained: ‘Our view is that we need to have proximity with the customer and it’s the network that provides that. We are working with the network on profitability and 208 plays an important role here. It’s already more profitable than 207 and is trading on product not price. ‘The network size lives and breathes though we will fill some open points and lose some dealers, but there are no plans to actively reduce its size from 230.’

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Feature.

PARISSpeciaL

Kia aims for top five Company chief: We will never topple Ford or Vauxhall in sales charts

ia UK’s president has admitted the manufacturer won’t ever be able to dethrone Ford and Vauxhall from the top of the sales charts – but the firm WILL crack the top five. Paul Philpott, recently appointed president and chief executive officer of Kia Motors UK, told Car Dealer that the maker wants to be selling 100,000 new cars a year. In 2008 the manufacturer sold just 31,000 cars – this year it’s on track to top 65,000, and the Korean brand wants to keep growing. ‘Our mid-term plan is a nice round number – 100,000,’ said Philpott. ‘We haven’t set a defined date for this, but that’s our target. We had a nice accelerant poured all over our brand with scrappage which put our new range of Kias on the road. And it helped many overcome perceptions that Kia were a lower quality brand. ‘We then launched the seven-year warranty in 2010 across the range and we’ve launched new Sportage, Venga, Picanto, Rio, Optima, C’eed and now Carens. The range has been transformed in a three-year period and that has helped hugely in getting us to where we are today.’ On last year’s SMMT new car sales registrations, 100k units would put Kia ahead of Nissan and Peugeot. But Philpott said the ambitious target can’t come at the expense of profitability. ‘There has to be market recovery mid-term,’ he said. ‘And with a market of 2.1m and our goal of 100,000 units, that would put us in the top six UK car manufacturers. We were ninth last year and are on course to be eighth this year. ‘We can become a top-five brand but we have to focus on retail sales. To make the 100k we need to do 50,000 retail, and 50,000 fleet. But if it can’t be done without damaging our retail market then we won’t do it. We need appropriate growth that

new plant

Could Kia ever build in the UK? With Kia’s success comes a demand on its factories to produce. Currently the brand’s Slovakian plant is working three shifts producing three cars, but with the maker’s ambitious targets it’s likely another plant will soon be needed. So is the UK an option as a location? ‘We never say never,’ said Philpott. ‘Nissan,

drives profit for us and our dealer network.’ But with the whole range just refreshed and only facelifts to look forward to over the next few years, how does Philpott see the brand growing? ‘The next three years will see us get facelifted products. We’ve just replaced our six volume cars in the last few years and that means we won’t see replacements until Venga and Sportage get replaced. ‘So whereas before we were conquesting a lot of customers, now we need to ensure those customers that bought Kia remain loyal while at the same time we are attracting new customers to the brand. Philpott told us many dealers in his network of

Toyota and Honda have been successful in the UK, but I won’t be drawn on a decision as to what’s likely and what’s not. Our production capacity globally is up for discussion. A new plant is a massive investment, but localising production is our strategy. I wouldn’t rule anything out or anything in.’

173 are investing heavily in their sites to cope with the increased numbers of cars they’re selling. ‘There are a number of dual franchises that are now going solus with us,’ explained Philpott. ‘A whole range of smaller brands are going like Daihatsu, Subaru, Mitsubishi and Chrysler, as dealers see this as the easiest way to generate more capacity for their Kia partnership.’ He added that around 10 sites had gone solus this year alone and next year a further 10 partners are expected to do the same. Philpott explained that a number of Renault dealers took on the Kia franchise as the French marque hit troubled waters and are also now reaping the rewards. ‘We now have dealer confidence to invest in the future of Kia and that’s something I’m very excited about indeed.’

Kia’s UK president believes sports car is missing from range A sports car is missing from the Kia range but it can only happen when the timing is right, believes the firm’s UK president. There’s also scope for a Nissan Juke rival and a premium B-segment car. ‘Our brand is becoming more youthful and dynamic,’ said Paul Philpott. ‘I think the other territories that are interesting are the B SUV –

Juke has clearly created another sub-segment there. And a premium B-segment car, like the DS range and Mini, makes for an interesting proposition. But we have to get them right on a global level.’ Philpott admitted that historically it would have been tough for Kia to produce a ‘premium’ small car, but he said as the perceptions of the

brand change, so do the opportunities. ‘So can we do anything? Well, if the timing is right, then yes. At some stage we need a dedicated sports car too.’ Philpott ruled out a rebadged version of the Veloster in the Kia range, but said the platform is one that could be used. ‘Really it needs to be more sports coupe,’ he said. [CD] CarDealerMag.co.uk | 63

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GUIDE TO SAVING MONEY ADP DEALER SERVICES

Take an intelligent approach to your marketing W: adpdsi.com/uk/ T: 01635 214242

raditional marketing techniques – particularly print-based methods – may well be capable, but they’ve never been particularly efficient. A dealer may send out letters and information packs, take out print, radio or even TV advertising – but there’s no way of gauging their true impact or accurately telling just how many leads have been generated from each – and that means money could be being wasted. After all, if it’s not possible to track where new customers have come from, how can dealers work out which marketing method has been the most cost-effective? ADP Dealer Services thinks it has the answer – providing a range of integrated software solutions that help dealers be more effective with their shrinking marketing budgets; help ensure that every single customer phone call is answered or called back; and establish how that customer came to first get in touch. The first approach, according to the firm, is using ‘intelligent’ marketing methods – courtesy of its Campaign Manager software, part of the recently launched Autoline Drive DMS. ‘It’s about moving away from traditional media and towards quantifiable, trackable marketing

‘‘

If you don’t respond promptly, that customer could go elsewhere . . .

methods,’ says Phil Stubbs, UK sales director. That, says Stubbs, can take the form of anything from emails and text messages to print-based advertising containing a QR code – a special barcode that, when scanned with a mobile phone, instantly takes the customer to a unique web page. ‘Every customer is slightly different and it’s about using the best medium to open them up, and then measuring it the whole way through,’ he added. These emails, text messages or QR codes are all trackable – ensuring that dealers know exactly which marketing tool was used for each customer inquiry, and in turn working out which methods have been most cost-effective at generating sales. Methods like this – unlike traditional ‘hit and hope’ marketing techniques – also allow dealers to modify their approach half-way through a campaign. With digital marketing methods, you can fail more quickly, but equally correct more quickly. These new systems don’t mean abandoning traditional marketing entirely though, says Stubbs – but they can help dealers better utilise it. ‘For prestige marques in particular, sending out glossy brochures through the post may still be the preferred method, simply because that’s the way customers like to be approached,’ he suggested. ‘For other customers though, we can enable dealers to automatically send out an electronic brochure and place a reminder in the salesperson’s diary to ensure they are followed up.’ Having brought in potential customers – or ‘leads’ – through marketing, the next move is to successfully track them and ensure no opportunities are missed. ‘You’ll spend so much

money generating leads, but if they get into your dealership and nobody follows them up then you’ve wasted your money,’ says Stubbs. ‘After a lot of hard work and money, the lead could drift away because of a flawed process.’ The problem, as ADP calls it, is ‘lead leakage’ – which occurs when a lead comes into the business and then for whatever reason is not followed up. This could start anywhere from simply someone forgetting to chase up a customer’s brochure request to missing a phone call about a test drive or service. ‘If you don’t respond promptly, that customer could go elsewhere,’ says Stubbs, ‘Our software aims to ensure that these human points of failure are minimised.’ ADP’s Integrated Telephony solution aims to eliminate the issue of missed calls – providing a list of all unanswered calls that require call-backs. What’s more, if a customer calls in, their DMS record pops up automatically even before the call is answered – meaning that dealers can provide a more personalised service, greeting the customer by name and having their vehicle details available. ‘If the person the customer wants to speak to isn’t immediately available, an instant message can be sent to them so they can choose to take the call or if not, it acts as a reminder message to make sure the call is returned,’ says Stubbs ‘Not following somebody up is as bad, if not worse, than not contacting them in the first place. A vehicle is a high-value purchase and if a customer is not handled correctly, you can permanently damage your relationship with them. Our job is to help you make sure that never happens.’ CarDealerMag.co.uk | 67

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Guide to SavinG MONEY CARQUID

The classified website where you can place an advert for just £1 W: carquid.com T: 01296 614835

nline advertising isn’t simply an option these days – it’s a given. With benefits like trackable sales and ads that can be placed instantly, the web has a lot going for it when it comes to selling a car. What’s more, when traditional, print-based classifieds have long stopped being the most popular way to buy and sell a car, avoiding an online presence of some description is becoming less and less plausible. Unfortunately, listing prices from classified ad websites have been creeping ever higher – sapping dealer profits and causing financial headaches. A new classified ads site, just launched, thinks it has the answer. Eliminating contracts, monthly fees and other additional costs, CarQuid does as the name suggests – simply charging £1 per listing, per week. To gain some insight about just what drives the site, we spoke to CarQuid’s founder, Keith Weston. ‘I’ve had 20 years of experience in the car industry’, he revealed. ‘I started off by importing cars, and had my own showroom for many years.’ It was there that Weston noticed the price of classified ads beginning to increase. ‘Prices for car advertising have been going up and up every year. It’s just getting ridiculous,’ he said. With his industry knowledge – and a degree in computer programming – Keith set about creating his own solution. Thus, CarQuid was born. The website itself – CarQuid.com – is an attractive new classified ad site, housing new and used car adverts, along with editorial content such as news, reviews and more. This might seem similar to many of its rivals, but that’s exactly the point, says CarQuid – it offers a tried-and-tested format with a new twist. In fact they make no bones about the similarities – citing just one key difference: cost. ‘What we’re aiming to do at CarQuid is offer the 70 | CarDealerMag.co.uk

same as everybody else, but at a price that’s fair,’ explains Weston. ‘There’s no reason why, every year, advertising prices increase. What we’re going to do – very simply – is put a car on the site for £1 per week.’ Within that £1 rate, each ad has space for a lengthy description and 10 photos – without the additional fees many of CarQuid’s rivals request for such features. Also in contrast to other classified ad sites, dealers large and small are treated equally. ‘There are no premium listings,’ Weston tells us proudly. ‘Everyone is on an equal level.’ All ads cost £1 per week, too – regardless of the number placed. ‘If you want to advertise one car, it’s £1,’ explains Weston. ‘If you want to advertise 500 cars, it’s £500. It’s very simple.’ It’s this straight-forward thinking that CarQuid has built its entire business upon. After all, argues Weston, if pricing is kept simple, it’s easier to understand the value of the service. ‘If you’ve got a 30-car site, that’ll be costing you in the region of £3,000 per month plus VAT with other competitors. With CarQuid it’ll be £120 all-in. It doesn’t take a mathematical genius to work out that you will be saving absolutely thousands.’ Unlike some websites, CarQuid doesn’t charge different rates for different values of car either – £1 is the weekly price for each car advertised, regardless of value. Sellers need not be tied into ‘value’ long-term packages either – CarQuid charges £1 for the first week, and £1 for each week after that. ‘That’s one of the reasons CarQuid was set up,’ Weston explains. ‘To say no to expensive advertising, but not say no to a quality site.’ Being a new site, one potential concern is a lack of traffic to start with – something CarQuid says it’s proactively tackling. ‘Obviously we’ve got a chicken and egg situation

right now,’ explained Weston, ‘where we can’t hit the media really hard until we’ve got cars on the site.’ With a number of campaigns already underway though, this shouldn’t last long. ‘We’ve got a media side of our company that’s already set up, and we have radio, TV and viral advertising on the way,’ he added. Once that’s taken place, CarQuid is predicting a considerable audience share – around 100,000 listed cars by the end of its first year of operation. ‘Before we’d invested our money in this, I used to stand in auction houses, asking people what they would want from a site if they were to advertise their cars on it,’ said Weston. ‘I probably asked about 1,000

‘‘

We’re in talks at the minute with one of the largest warranty companies in the country, so we will soon be offering warranties and other bits and pieces that we feel are in the interest car buyers too.

‘‘

car dealers for their opinions.’ More features are on the way, too, says Weston. ‘We’re in talks at the minute with one of the largest warranty companies in the country, so we will soon be offering warranties and other bits and pieces that we feel are in the interest of car buyers too.’ And what’s CarQuid’s advice for dealers still on the fence? ‘Just give it a go.’ ‘If someone walked through the door of my dealership and said ‘‘we can advertise your 20 cars for £20 per week’’, even if I knew that at first there wasn’t going to be a lot of traffic... £20 is a round in the pub. It’s nothing,’ says Weston. ‘Even if [of that 20] you sold one car per year from CarQuid, you’d get your money back just by selling that one car.’ CarDealerMag.co.uk | 71

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GUIDE TO SAVING MONEY TRUSTED DEALERS

The motor industry name that really can be trusted

Neil Addley of Trusted Dealers

W: trusteddealers.co.uk T: 01423 506272

or wary customers, used car sales can be a source of worry. Investing a relatively large amount of money in anything is bound to put consumers a little on edge – let alone something as complicated as a modern car. The tendency, from a consumer point of view, is to distrust anyone who makes a living out of selling cars. Regardless of how stereotypical and (usually) incorrect it may be, the ‘Del Boy’ image often sticks in customers’ minds – with finding a seller that isn’t a ‘dodgy dealer’ becoming almost a primary focus for car buyers. For buyers then, picking out dealers they can really trust is key: and it can often be an important factor which will help them decide where they’ll be spending their money. TrustedDealers.co.uk – as the name suggests – may well have the answer.

‘‘

We want to spend all the money we get in to generate leads out to our members. Generating leads as cheaply as we can is in our DNA.

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72 | CarDealerMag.co.uk

It’s similar in format to many other classified ad sites, but it’s run in an entirely different way. Owned by – rather than shareholders – a collection of dealer groups from around the UK, Trusted Dealers has a different approach to used car sales, and one backed up with a whole heap of industry experience. ‘I was marketing director of Perrys, CD Brammell and then Reg Vardy, before becoming part of the team that founded Motors.co.uk,’ Trusted Dealers’ managing director Neil Addley told us. ‘Then I was approached to run Trusted Dealers by Ken Savage from Perrys, Peter Jones from Lookers, and Robert Forrester from Vertu, who I had worked with before, and asked if I could help establish Trusted Dealers.’ Addley agreed, and in 2011 the site was born – now housing ads for thousands of cars across the UK dealer network, ranging from anything from £1,500 Toyota Yarises to £200,000 Bentley Mulsannes. Regardless of its price and age, each car comes complete with the site’s ’10-point difference’ – a checklist all cars must adhere to in order to be listed on the site. Among the list are requirements ranging from safety checks – such as outstanding finance and write-off checks – to simple pleasantries, like full professional valeting of the car before it’s handed over. It’s this stringent list of requirements – and the extensive number of familiar dealer groups already on board – that make Trusted Dealers a winning formula for consumers, says the company.

In fact, the sheer number of groups with vested interests in the site is impressive in itself – from far-reaching country-wide groups like Perrys, Motorparks and Jardine, to smaller franchises like DM Keith, Ringways of Leeds and Caffyns. Owning a chunk of the business isn’t the only way to be a part of Trusted Dealers either – with the site looking to expand its range of ‘advertiser’ members. ‘We have about 45 advertisers on board, and 10 of them aren’t investors – they’re members that have joined more recently as advertisers,’ says Addley. ‘We’re looking to expand our membership to as much of the franchised dealer market as we can.’ For ‘advertisers’, Trusted Dealers offers competitive ad pricing – far lower than many of its competitors – along with a range of extra services, including lead generation. ‘Our rate card is £1.05 per car per week, so it’s quite cost-effective – or quite cheap, I suppose!’ Addley said. ‘We then generate inquiries for our members, and the average cost of those is between £15 and £20, depending on location and franchise – so good-quality, good-priced leads.’ It’s these services that Trusted Dealers is continually investing in – and it’s what your hardearned money will be ploughed back into, says the company. ‘Because we’re owned by the dealers, we have no incentive to make a profit,’ Addley explains. ‘We want to spend all the money we get in to generate leads out to our members. ‘Generating leads as cheaply as we can is in our DNA – that’s what we’re here to do.’

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GUIDE TO SAVING MONEY AUTOTRADE-MAIl

The screening process that keeps standards high W: autotrade-mail.com T: 01243 523000

nwanted trade-ins are an age old problem. Whether it’s a car from a rival manufacturer that doesn’t look quite right sitting on the forecourt, or simply a model that a dealer isn’t familiar with – dealing with partexchanges can be a real headache. It’s a difficult situation: if a dealer refuses the trade-in or offers an amount below the car’s market value, he/she may lose a sale and a customer. On the other hand, if the trade-in is accepted, there’s no telling how long it will take to sell on. As a result, sometimes dealers just have to accept a trade-in they don’t really want – simply for the sake of making a sale. When that happens, stock needs to be moved on as quickly and efficiently as possible: something often easier said than done. What’s more, doing so hastily can come at the expense of profits – simply accepting a lower market value for the car rather than spending additional time to find the best offer. Autotrade-Mail may just hold the answer. Established in 2001, it takes a different approach to advertising cars – sending details directly to the trade outlets that want them most. ‘Saving and making dealers money has been Autotrade-Mail’s main objective over the last 10

years or so,’ says the company. ‘Having been dealers themselves they understand (unlike most) how difficult and marginal the motor industry can be and are totally committed in doing all they can to assist.’ Buyers sign up to the website, fill in a few details about the makes and models their forecourts are in need of – for example Alfa Romeos aged up to 10 years old – and then simply sit back and wait. When a seller ‘offers’ a car, details are instantly sent out to buyers that the system thinks will be interested – and only in the selected areas of the country that the seller specifies. The offers are sent out instantly either by email, or through Autotrade-Mail’s innovative ‘toolbar’ application – meaning sellers need not ring round begging other dealers to take a car off their hands. If a buyer is interested, he/she can place a bid through the system immediately – speeding up the whole process, and allowing sellers to handpick the best offer. In fact, so quick is the system that part exchanges can be put on the system and receive offers before they’ve even arrived – meaning dealers can quickly gauge just how

much a part-exchange will be worth. With no buying or selling fees – just a monthly subscription to use the service – Autotrade-Mail could be saving dealers with even just a handful of cars a substantial sum over traditional advertising. At £67 per month plus VAT, this works out at a considerable amount less than traditional advertising methods – around £17 a week for an unlimited number of cars. Not just anyone can join, though: Autotrade-Mail has a rigorous screening process, ensuring that only dealers that the company feels are ‘right’ for the site are allowed to subscribe. ‘We could write more business and possibly charge less than £67 +VAT per month,’ says operations director Kevin Watson, ‘but we continue to turn away over 30 per cent of people that want even just the first 14-day free trial of our system – simply because our vetting process decides that they are not right for our members.’ This, says Autotrade-Mail, keeps standards high – only the best buyers and sellers are included, meaning that no time is wasted offering cars to individuals who aren’t in a position to purchase. ‘It seems quite crazy to most businessmen that we are turning away opportunities to take money from someone who wants to give it to us,’ says Watson, ‘but we will not compromise our level of service over price.’

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DATA FILE.

Thestatistics n

SMMT Sales Data

Monthly figures look good . . . but are they a bit TOO good? A note of caution is sounded as the thorny issue of pre-registrations raises its head again

ew car registrations in September were significantly up on the same month last year, according to the latest figures from the SMMT. With an increase of 8.2 per cent across the industry, sales figures for September 2012 were 359,612 – around 20,000 more compared to September 2011. In fact, the SMMT’s figures report a 7.5 per cent gain in quarter three of 2012 – the highest level of growth since 2001, excluding periods where the scrappage scheme was in place. Paul Everitt, SMMT chief executive, said: ‘The important September plate-change market outperformed expectations with new car registrations increasing more than eight per cent on last year to 359,612 units. ‘Although the economic outlook remains challenging, we are starting to see a tentative return of consumer confidence as motorists explore new products and the latest fuel-efficient technologies.’ However, while this announcement of a rise sounds encouraging for the industry, these numbers may not be all they seem. Car Dealer understands that pre-registration schemes may be artificially inflating sales figures – with some industry figures suggesting that they

SEAT SUCCESS SEAT registered more cars in September 2012 than it has in any other month in its history, says the firm. A total of 7,739 cars were registered in the month – bringing its market share to 2.15 per cent, up from 1.99 per cent in September 2011. SEAT has even overtaken its budget VW-group sibling Skoda – previously slipping in behind the Czech brand’s market share. The figures beat Seat’s previous high monthly record – March 2011 – where 7,251 models were sold. ‘We’re absolutely delighted,’ said Seat UK director Peter Wyhinny. 78 | CarDealerMag.co.uk

David Raistrick could be pushing up sales by as much as five per cent. Additionally, a source told Car Dealer three volume manufacturers sold a large number of cars on the last day of September, and represented more than 11,000 additional registrations. David Raistrick, UK manufacturing leader at Deloitte, has suggested caution. ‘The question is one of whether the UK is defying gravity by

comparison to Europe due a stronger economy,’ he said. John Leech, head of automotive at auditing firm KPMG, has similar concerns. ‘Why are sales of cars much stronger than other big-ticket, luxury purchases? The answer is that the carmakers are encouraging dealers to register the vehicle before they have arranged a sale to consumers. ‘Dealers then tend to offer these cars to consumers as nearly-new but they are included in the official new car sales figures.’ KPMG estimates these ‘hidden’ preregistrations account for around five per cent of UK car sales – suggesting that the market as a whole has ‘actually been flat, year-to-date’. ‘The Supply of New Cars Order 2000 requires carmakers to disclose the number of preregistered cars included within their sales but so far the industry has only disclosed a tiny number of such cars,’ added Leech. ‘It would seem therefore that the industry is exploiting a loophole in the legislation – and our research suggests that it is not by asking the dealers to hold onto the cars for at least three months as the legislation permits. The Retail Motor Industry Federation is undertaking a review of the matter and is expected to report its findings shortly.’

Way to go! Yaris and Aygo help Toyota progress TOYOTA’S Yaris has stormed ahead in registration figures, says the brand – leading a sales surge at the company and edging the Japanese firm’s market share ever-higher. Launched late last year, the revised Yaris is likely to have accounted for registration increases for the model – increasing in numbers by 73 per cent over September 2011. The new Yaris Hybrid – the smallest and cheapest car in the range to be fitted with Toyota’s HSD system – helped figures along too, having arrived just a few months before the all-important ’62’ registration plate. Toyota’s registrations increased overall, too – up by an impressive 21.9 per cent compared to September 2011. The firm’s market share now stands at 4.41 per cent – still ahead of Honda, but still behind Nissan. The Aygo has also performed well – rising 21 per

cent over last year, despite the introduction of newer rivals like VW’s Up and Seat’s Mii. Meanwhile, fleet sales for Toyota and its premium brand Lexus have increased too – 15 per cent year-onyear, in the face of what the SMMT are calling a ‘flat’ fleet market. Lexus’s CT200h has been the most successful – growing 71.3 per cent in the first nine months of the year for fleet registrations. Toyota say fleet sales are set to increase with the introduction of the new British-built Auris, too – bringing with it reduced costs and, when in hybrid form, a company car tax bill of only £34 per month. In fact, hybrids now make up 30 per cent of fleet sales across the Toyota and Lexus ranges – shared between the eight hybrid models the brands offer.

SMMT sales data Sept/year to date September Marque

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Daihatsu Fiat Ford Honda 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

2012

248 1,227 163 22,283 168 22,427 1,682 795 12,851 0 9,028 47,370 11,602 13,480 32 2,962 313 11,608 8,745 1,541 17 41 4,952 16,618 72 9,419 971 19,399 60 18,100 1,123 12 7,161 8 7,739 7,480 885 164 349 5,850 15,867 38,889 31,424 4,325 95 67 359,612

% market share

0.07 0.34 0.05 6.20 0.05 6.24 0.47 0.22 3.57 0.00 2.51 13.17 3.23 3.75 0.01 0.82 0.09 3.23 2.43 0.43 0.00 0.01 1.38 4.62 0.02 2.62 0.27 5.39 0.02 5.03 0.31 0.00 1.99 0.00 2.15 2.08 0.25 0.05 0.10 1.63 4.41 10.81 8.74 1.20 0.03 0.02

SUBARU -19.73%

TOYOTA +21.88%

2011

Year to date (YTD) % market share

2012 % Change

267 1,964 142 18,588 135 18,184 1,644 354 11,538 0 7,025 43,350 9,690 11,562 22 3,295 442 9,729 6,230 1,601 5 41 7,108 15,282 43 9,690 1,594 18,573 71 16,902 943 42 11,245 272 6,612 6,950 766 21 573 4,550 13,019 37,472 29,250 5,443 163 84 332,476

0.08 0.59 0.04 5.59 0.04 5.47 0.49 0.11 3.47 0.00 2.11 13.04 2.91 3.48 0.01 0.99 0.13 2.93 1.87 0.48 0.00 0.01 2.14 4.60 0.01 2.91 0.48 5.59 0.02 5.08 0.28 0.01 3.38 0.08 1.99 2.09 0.23 0.01 0.17 1.37 3.92 11.27 8.80 1.64 0.05 0.03

-7.12 -37.53 14.79 19.88 24.44 23.33 2.31 124.58 11.38 0.00 28.51 9.27 19.73 16.59 45.45 -10.11 -29.19 19.31 40.37 -3.75 240.00 0.00 -30.33 8.74 67.44 -2.80 -39.08 4.45 -15.49 7.09 19.09 -71.43 -36.32 -97.06 17.04 7.63 15.54 680.95 -39.09 28.57 21.88 3.78 7.43 -20.54 -41.72 -20.24 8.16

939 6,115 738 101,390 977 97,692 11,692 2,932 58,398 0 39,780 224,369 44,144 56,119 374 11,139 1,672 52,899 38,847 7,067 120 240 22,713 73,401 631 38,136 4,957 84,519 343 81,145 5,958 197 30,369 215 30,443 41,522 4,039 688 1,745 20,964 68,889 179,698 146,720 24,250 757 667 1,620,609

%market share

0.06 0.38 0.05 6.26 0.06 6.03 0.72 0.18 3.60 0.00 2.45 13.84 2.72 3.46 0.02 0.69 0.10 3.26 2.40 0.44 0.01 0.01 1.40 4.53 0.04 2.35 0.31 5.22 0.02 5.01 0.37 0.01 1.87 0.01 1.88 2.56 0.25 0.04 0.11 1.29 4.25 11.09 9.05 1.50 0.05 0.04

2011

Figures supplied by SMMT

%market share % Change

1,085 9,480 852 92,324 851 90,727 10,073 798 54,967 3 34,192 214,628 39,564 49,091 224 11,337 1,669 43,253 28,684 6,162 277 311 27,070 65,071 227 38,147 8,383 77,184 449 77,900 4,596 375 53,341 4,046 28,862 36,297 4,029 32 2,174 16,951 58,118 188,113 143,459 26,115 929 674 1,553,094

0.07 0.61 0.05 5.94 0.05 5.84 0.65 0.05 3.54 0.00 2.20 13.82 2.55 3.16 0.01 0.73 0.11 2.78 1.85 0.40 0.02 0.02 1.74 4.19 0.01 2.46 0.54 4.97 0.03 5.02 0.30 0.02 3.43 0.26 1.86 2.34 0.26 0.00 0.14 1.09 3.74 12.11 9.24 1.68 0.06 0.04

-13.46 -35.50 -13.38 9.82 14.81 7.68 16.07 267.42 6.24 -100.00 16.34 4.54 11.58 14.32 66.96 -1.75 0.18 22.30 35.43 14.69 -56.68 -22.83 -16.10 12.80 177.97 -0.03 -40.87 9.50 -23.61 4.17 29.63 -47.47 -43.07 -94.69 5.48 14.40 0.25 2,050.00 -19.73 23.67 18.53 -4.47 2.27 -7.14 -18.51 -1.04 4.35

Smmt Has Removed The Following Brands As They Registered No Vehicles In The Uk In 2011: Cadillac, Corvette, Daimler, Dodge, HuMMER CarDealerMag.co.uk | 79

auctions.

Hendy Ford gets rejuvenated bit.ly/HendyRefurbs

Henstock

auction stations

Selling is still about real cars and real customers!

here are very few new or used car retailers who have not embraced the internet and its many applications as a valuable marketing opportunity, shop window, information source, customer communication channel or stock management tool. It was not always this way…. the motor industry of the early 1990s included the online advocates, the technophobes and those who knew the internet was important but couldn’t quite see how to make it work. By 2000, the Labour Government set a goal ‘to get the UK online’ and four years later this was upgraded to get ‘broadband in every home’. By the end of next year, 90 per cent of UK households will have access to superfast (over 10 mbps) broadband and mobile technology will step up a gear with the 4G launch in mid-2013. In the pre-digital era, car buyers used to make five or more dealer visits during the buying process, their experience restricted largely to the showroom. Today, consumers make only 1.3 visits on average, which means dealers must interact effectively with customers via online channels – and make the most of that one ‘golden’ chance when they get face-to-face with the customer. Just remember that, while you fine-tune your web presence, optimise your search engine ratings, monitor your social network standings and generate the best responses from your e-marketing campaigns, you’ve still got to sell some real cars to some real customers at the end of the day!

Part exchange values strong amid ‘drought’ Chronic shortage in quality used cars shows no sign of easing up

‘stock drought’ of quality used cars is keeping part- exchange values strong despite a 0.3 per cent drop in auction sale prices, according to Manheim’s latest Market Analysis. The drop in average selling price to £2,469, a fall of just £7 on July’s figure, masks a steady upward climb over the last 12 months. Despite the age and mileage of part-exchange vehicles remaining largely unchanged, at 99 months and 75,869 miles, values in August were up 11.6 per cent up on the same period last year. Executive models continue to attain strong values, but the mini MPV segment showed a sharp fall of 4.7 per cent, or £95 when going under the hammer. Overall, half of the 10 vehicle segments analysed saw the average selling price rise. Daren Wiseman, valuation services manager at Manheim Auctions, said: ‘Clearly, these strong part-exchange values at auction indicate a chronic shortage of quality cars under the magic 100k mileage

Who is Simon Henstock?

Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or Car dealer cowboy ads 1/10/12 10:54 call 0845 600 6644.

Page 4

No cowboys. Just Just trade trade professionals. professionals.

level. How long these market conditions will continue is a bit of a conundrum. ‘For a while, the SMMT has been keen to point out that the market for new registrations has risen by 3.3 per cent since the beginning of the year, it is likely to be some time yet before we see significant numbers of new vehicles feeding the starved market. ‘In the short to medium term, we will continue to see more dealers honing their remarketing skills to gain best prices for older models with higher mileages. ‘This year we’ve already seen franchised dealers buy used models and older cars for their dealer forecourts that would previously not be in the mix. ‘This chronic shortage in quality used cars is forcing dealers to extend their attention to parts of the market they previously considered ‘‘out of bounds’’.’

Auction house goes under after three months A NEW motor auction business in Stoke-on-Trent has gone in to liquidation three months after opening, leaving customers out of pocket. Danford Motor Auctions has sent letters to those with cars still on site, enclosing the keys to their vehicles, but many trade and public sellers say they are still owed money for vehicles sold by the defunct firm. The letter sent out to sellers said:

‘We are deeply saddened to say that Danfords Ltd has gone into liquidation. Please accept our sincere apologies for any distress caused.’ Richard Tizley, a buyer for local used dealer Lymedale Motors, told The Sentinel newspaper: ‘Our main priority is getting the cars back but it is not a good situation for anybody.’ Danford’s stock list at the time of collapse showed 47 cars awaiting sale.

Strictly Trade only (VAT No. and verified bank details reqd). Purpose built 12 acre auction complex . Enclosed and heated auction halls. Fleet Car Sales every Monday & Thursday. Excellent variety of weekly stock from premium sources. Collection of vehicles 24 hours a day. Fixed cost buyer’s premium. Excellent on-site restaurant. Call now for account applications. Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 email: info@fleetauctiongroup.com www.fleetauctiongroup.com

80 | CarDealerMag.co.uk

RIGHT CLICK.

..in association with GForces

Put your servicing in digital realm New car sales struggling, so take advantage of growing sales and aftersales sector

ontinued lacklustre demand for new cars is doing nothing for the general mood amongst franchised dealers. The simple yet painful fact is that more consumers are putting off new car purchases. The average age of cars on UK roads is now 7.44 years old, an increase of two months on 2011 figures. The falls in retail income have inevitably contributed to a drop in overhead absorption. The current average absorption rate is below 60 per cent, and some industry experts predict that this could fall to 50 per cent in the near future. The opportunity is there to improve revenues through aftersales, however. A recent study showed that the value of the service, maintenance and repair sector rose by 6.3 per cent in 2011. Aftersales remains the most profitable area of a dealer’s business, yet around 90 per cent of leading franchised dealers are failing to promote relevant aftersales offerings online. A digital ‘service centre’, which brings aftersales offerings together online, is the optimal solution. This allows a car dealer to effectively run a 24/7 aftersales operation where upselling is at the core, rather than being an afterthought for busy staff. Perhaps the most obvious online aftersales tools cover routine servicing. Online service booking

systems offer convenience and easy operation, with the benefit of driving up-sells. Currently, just 9.5 per cent of the UK’s top 200 dealer groups have incorporated the function into their website. Those operating online service booking systems have seen rises in service business of as much as 500 per cent. After warranty periods are up, customers often look elsewhere for parts and servicing – an especially relevant issue with growing numbers opting to keep a car for longer. In 2011, the franchised sector captured just 22.6 per cent of aftersales work. Service plans are a vital tool. Linked into the digital service centre, they provide convenience for customers to spread service payments and guarantee dealer income over an extended period. However, just six per cent of the top 200 UK dealer groups promote service plans online. The online sale of simple service parts, easy-tofit components or vehicle accessories can be a great additional revenue stream, and the e-commerce software to support this is widely available. However, only 31 per cent of the top 200 dealers are currently using it. Google data shows that tyre searches are up 17

per cent year-on-year over 2011, peaking in October and November. Fast-fits, tyre specialists and independent garages have long dominated in this sector, even though the digital solutions are there to enable franchised dealers to compete on equal terms. Again, however, the franchised sector lags behind, with just six per cent of the top 200 dealers attempting to sell tyres online. These four basic elements – online service booking, online service plans, and the sale of parts / accessories and tyres via the web – together present a formidable digital offering, and one that is fast becoming a must-have for dealers wanting to survive and grow in an increasingly competitive aftersales market. Importantly, when the majority of people in the UK regularly use the web to make a very wide range of purchases, franchised dealers need to take their service offerings into the digital realm if they are to stem falls in aftersales income.

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.

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CarDealerMag.co.uk | 81

NET GAINS.

..in association with Codeweavers

Problems and the hunt for a panacea Businesses exist to help but there isn’t always a single easy answer . . .

veryone has problems, if you think about it. If they didn’t, then most businesses would not exist. So it’s pretty logical that people are constantly on the lookout for the fix-all solution or magic wand that will solve all their problems once and for all. In other words, they are looking for a panacea. Experience, however, has taught me that there is no such thing. Life’s problems are very rarely solved by any single action. Think about it for a minute. A person who is heavily in debt may believe that winning the lottery would be their panacea but in real life many lottery winners find that the money changes their life so much that they wish their numbers had never come up. About 18 months ago, Codeweavers launched a fully interactive payment search service that enables customers visiting a dealer’s website to search the dealer’s stock based on their specific budgetary requirements. So the customer could now see all the cars in that dealer’s stock that they could afford, rather than selecting a make, model and derivative to find a vehicle that they had already decided on. The idea was that dealers could mix up the stock and show the customer vehicles they would never have dreamt they could afford. We

82 | CarDealerMag.co.uk

‘We added functionality to make the service even more attractive.’ were convinced we were on to a winner (and we still are). Over a year on and the service is now being used by a range of dealers and manufacturers and is helping their customers to really search in a new and innovative way, but it wasn’t like this at first. We had very much seen payment search as our panacea, but it quickly became apparent it wasn’t going to be that easy. The initial take-up was slower that we hoped, partly because we didn’t shout as loud as we should have about the new functionality, but also because we had not anticipated the fact that there would be a delay while our media partners integrated the functionality into their sites. However just because take up of our killer feature was taking longer than we had expected, we did not give up.

We added functionality to make the service even more attractive, we made new and much easier ways to get the functionality integrated and we made the search even faster. Today, payment search from Codeweavers can search a stock of 750 vehicles using real-time calculations on several finance products per vehicles in under 0.2 of a second. That’s pretty fast when you think each vehicle could have a different finance company / dealer rates or even its own specific sell-out parameters. Payment search is now being adopted on more and more sites and making a real impact on how potential customers search for their next vehicle. This success was not due to Codeweavers finding its panacea but because we worked hard and above all persevered to deliver the product our customers really want.

Who is Roland Schaack?

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

TRADER TALK

..in association with AutoTrader

Avoiding the part exchange lottery... How to ensure your used car operation goes from strength to strength

s the excitement of another plate change turns to the reality of the traditional pre-Christmas slow-down in consumer demand, some of those recently arrived part-exchange vehicles may already be beginning to lose some of their appeal. A part-exchange vehicle can seem very attractive while the prospect of the sale of a new car is very much alive, but unless that part-exchange process is properly managed, by the head rather than by the heart, then whatever profit potential there may have been in the deal can be quickly eroded. The process then becomes something of a lottery and there are very few winners in a lottery. Selecting the right part-exchange vehicles to retail or to trade has long been a matter of local knowledge and judgment, but that is increasingly being supported by market data that shows what is hot and what is not. Demand for a vehicle, its desirability, should be the factor that determines the fate of that vehicle and whether or not it should even be taken in as a part exchange in the first place. For franchised dealers, September provides a boost to new car sales and results in an influx of part-exchanges that, in theory, will

‘There are still many dealers who don’t really know what they want.’ fly off the forecourt – or will they? September, just like March, is a profit opportunity for dealers who know what they want. They use their head and market data at their disposal so they know which partexchange vehicles are in demand. They also know how much to pay for those vehicles and know how much to sell them for. The result will be an increase in stock turn which will lead to improved profitability. However, there are still many dealers who don’t really know what they want. They are under pressure and are focused on selling the new car to achieve sales targets. It is these dealers who will very often end up with over-inflated part-exchange vehicles that are neither desirable nor in demand – it doesn’t get much worse than that. The vehicle will then likely sit on the forecourt for a couple of months until

December, when the used car market is at its quietest, before being sent to auction or traded before year end at bargainbasement prices. The success of judging the market correctly and taking in part exchange vehicles that are in demand and aligned to a dealer’s pricing position in the market is the key to success. Once you know how desirable the stock is, you can optimise your pricing strategy based on both margin and response. Get this equation wrong, by even five per cent, and the response and hence stock turn will be low, with gross profit potential severely eroded. Get it right by avoiding the part-exchange lottery and your used car operation will go from strength to strength and, for franchised dealers, will complement your new car sales.

Who is Tim Peake?

Tim is group strategy director at Trader Media Group,‚ publishers of Auto Trader, the UK s largest car marketplace. Visit autotrader.co.uk

YOU. ARE. NOT. A. RO. BOT

Manage your pricing quickly and easily It’s not always easy to know what to pay or charge for stock. And with so many sources to consult, it can be difficult to stay on top of prices. Our Intelligence Packages are run by clever robots that quickly provide you all the answers you need to know. Including Profit Indicator and Market Tracker, you can check what’s profitable before you buy and stay competitively priced before you sell. So, why not give the Ro. Bots. A. Try. To find out more about our Intelligence Packages, just call us on 08433 088 875 or visit www.dealerportal.co.uk CarDealerMag.co.uk | 83

DRIVING VALUES

..in association with Trusted Dealers

Always be there for your customers It’s vital to look ahead and secure that repeat business for the future

t’s all about digital in today’s current market, and to get anywhere in business, it pays to recognise the challenges we face in order to be successful. According to the Office for National Statistics, in 2011 around 19 million UK households had internet connection. Mobile phone connections played a large part with around 17.6 million people accessing a smart phone to go online. In fact, access to the worldwide web is changing all the time, and by 2013, Google predicts that more people will be accessing the web via smart phones than by laptops. The significant growth in mobile phone and tablet users has meant that people are no longer restricting their search time to working hours. In fact, more often than not, the average worker will arrive home after a long day, put their feet up and switch on a laptop, mobile phone or tablet for some much-needed down time. That’s why, to be ahead of the game, we need to recognise that some of our best opportunities to attain new customers can be achieved by making the most of ‘out of hours’ periods. Let’s start by referring back to the basics – maintaining a good-looking website with clear photos and pricing will go a long way, but to go the extra mile it is imperative to focus on customer response, call handling and timing. Learning how to recognise the best times to

‘You need take extra steps to show customers that they are really valued.’ cash in on business opportunities is half the battle, but ultimately your main focus should be on how those opportunities are realised. Letting customers know that you’re there when they need you to be can be the key to the future success of your business. Offering potential customers an opportunity to make enquiries by informing them of your opening hours is a great start, and if you work later hours on specific days, always tell your customers so that they feel confident they can pick up the phone. And when you do get that all-important first call, make sure that your call handling is first class. At TrustedDealers.co.uk, we listen to calls to make sure that we are constantly delivering the right level of quality and dedication to our customers. It’s not enough to inform someone that a car they are enquiring about has sold, you

together we are stronger

www.trusteddealers.co.uk/advertise 84 | CarDealerMag.co.uk

Who is Neil Addley?

Neil is MD of Trusted Dealers, the used car website owned by dealers. To find out about becoming a member call 01423 225166.

Call now: 01423 225 166

Our job is to generate used car leads Owned by and run for franchised dealers Fully accountable reporting Low cost per enquiry

need to take extra steps to show customers that they are really valued. For example, let them know you have similar models in stock which might be suitable, or that you are willing to look further into their enquiry to find a solution. After all, telephone skills will pay the bills so it is important to ensure all details are captured. In an increasingly competitive world, the principles outlined above not only apply to car sales but also to aftersales and servicing. We often focus too highly on the initial sale of a vehicle, when we should always be looking ahead to how best we can generate repeat business. Offering customers a good reason to return to your dealership is essential if you wish to maintain a good – and profitable – relationship with them for years to come.

CSI FILES.

..in association with JudgeService

Winning back the ones that got away A smart showroom and a nice cup of coffee will help you make sales

ompetition is fierce and customers have more options than ever when it comes to purchasing a car, a tough combination for dealerships trying to protect margins and volume. In essence, business is like travel; the smoother the customer’s ride, the greater the chance that they will advocate the business, telling others about their positive experiences. They are also more likely to come back for servicing and repairs. The trend towards digital browsing in order to find a car, whether on a PC, tablet or smartphone means the average customer only visits 1.3 dealerships before making their purchase so it is more critical than ever to qualify and ‘nurture’ prospects that leave the showroom empty handed. When it comes to turning prospective customers into sales, having an effective prospect management programme in place is crucial. So why didn’t they buy? Asking those allimportant questions at the right time is the first step to turning the ones that got away into customers and converting potential ‘lost sales’ as well as developing a much greater understanding of your customer’s experience. It may be a simple case of personality clash – they weren’t keen on the salesperson who greeted them. Easily rectified, invite them in on Jo’s day off for a test drive. Others might be less obvious – customer’s expectations vary as much as their

‘Converting a prospect into a customer is all about the personal touch.’ confidence in dealing with the motor trade. Never underestimate the power of listening – take on board what they say and remember personal details for next time. A smart-looking showroom and great coffee also help. Don’t forget the obvious; there are two basic reasons why people purchase anything: to make life easier and more pleasurable (so the freedom that comes with a car) or combat a problem (such as the need for independence). Therefore you need to focus on your product’s most attractive and relevant benefits as you communicate with your prospects and make sure you deliver on your promises. A major area of concern with car buyers is their confidence in the salesperson they are dealing with. Do everything in your power to ensure that your prospects, customers, and colleagues understand and protect the business’s name, particularly online as 66 per cent of consumers read reviews before purchasing.

Credibility and truthfulness will also win you far more customers than impossible-to-keep promises; remember the old maxim – always under-promise and over-deliver! As a sales manager or dealer principal, it’s important that you’re able to check and have confidence that your team are delivering the service you’d expect – not just with customers but also with those who don’t buy today. A contact centre or service like JudgeService will pay for itself many times over as it helps you understand your customers, prospects and what your team are, and aren’t delivering. Converting a prospect into a customer is all about the personal touch, but it’s too important to leave that experience to chance. Best practice with prospects should be measurable and will help you persuade them to part with their hard earned cash rather than run to your competitors. Simple!

Who is Rachel Sargent?

Rachel is account manager for JudgeService Research Ltd. Learn how she can help you at judgeservice. com or call 01423 225166.

It pays to know what your customers are saying about you, here’s how... Take a positive step towards promoting positive CSI and call 01423 506272

CarDealerMag.co.uk | 85

data file.

Jon Reay

ON THE ROAD

Car makers too slow as technology moves on

f you haven’t been online, read a newspaper, watched the television or spoken to anyone over the last month, you may not have heard that Apple have launched yet another new product: the iPhone 5. Well they have, and it’s been causing a bit of a stir – mostly for the wrong reasons. Despite arriving with maps software that thinks Portsmouth isn’t near any water, and is convinced that Doncaster contains the letter U, it’s the newly designed dock connector that’s proved the most controversial feature of the new device. For owners of speaker systems with now-incompatible docks (such as myself), it’s a bit of an annoyance. For car owners though, it’s more like a nightmare. Finding your £150 Panasonic hi-fi has become obsolete is undoubtedly annoying, but what about your entire car? I’d be furious – particularly after forking out a cheeky sum extra for ‘iPod preparation’ (I’m looking at you, Audi). Irritatingly, because car stereos are so well integrated these days, it’s often not possible to pop down to Halfords and swap it for an aftermarket one either. Trouble is, products like the iPhone move on so quickly that there’s simply no way for anyone to keep up, let alone car makers – it’s very difficult to prepare for something that doesn’t exist yet. A typical iPod speaker dock might have an expected shelf life of 18 months or so, but a car is expected to hang around for six years minimum. By the time Ford’s next Focus appears, five more generations of the iPhone will have been introduced to the world – and it’s just not possible to plan that far ahead. So what can be done? In my humble opinion, manufacturers need to get clever. It’s impossible to see what the future holds, so why not plan for the unforseeable and design stereos with upgrades in mind? Wouldn’t it be great if – five years from now – your dealer could pop in a brand new, fully-updated stereo for a few hundred quid? As it stands right now, you’re stuck with whatever the car came with – and that just seems backwards to me. Ok, so it might put off buyers from upgrading to the latest Fiesta if their old model can be made to do the same things, but I reckon it’s more off-putting to think that your new car will be ‘old’ in 18 months’ time. Nobody will listen to my ideas, of course, but at least I can say I’ve tried.

‘It’s very difficult to prepare for something that doesn’t exist.’

Who is Jon Reay?

Jon is an up-and-coming young motoring journalist keen to share his thoughtprovoking views on the automotive industry.

86 | CarDealerMag.co.uk

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W: webzation.com T: 0845 2260503 E: info@webzation.com Info: Web enable your showroom sales process. Lead generation, online finance and product videos. See why dealers are choosing us.

FEATURED LISTING: Car dealer club FREE LEGAL ADVICE with every car dealer subscription CAR DEALER CLUB gives dealers of all sizes access to free legal advice from our motor trade lawyers worth £195. Members get a copy of Car Dealer Magazine every month as well as access to a host of discounts from motor trade suppliers – all for a paltry £39.99 annual subscription! This offer is only available to new subscribers, so if you haven’t renewed your subscription then you need to do so to gain access to this very special offer. Signing up is simple. Type CarDealerClub.com into a web browser

CarDealer.Club to be taken straight to the section on our website where you can find out more and join up! Alternatively you can send us a cheque for £39.99 made payable to Blackball Media Ltd to Car Dealer Club, Blackball Media, Endeavour Quay, Mumby Road, Gosport, Hants, PO12 1AH and we’ll send you details of your Car Dealer Club membership by return post.

To have your details included here call (023) 9252 2434 and ask for Suppliers Guide listings

guide

If you’re looking for a motor trade supplier you can find the details of selected companies here

mini test: PORSCHE 911

Auctions

Cleaning Products

Car dealer says HHHHH

Central Car Auctions

Drymotive

Additional Income

Sales training

AutoProtect (MBI) Limited

Martec

Meet the seventh generation 911, that’s really only the fourth. By that confusing sentence we mean this is the fourth all-new, under the body, sparkly new sports car from Porsche since time began. Probably. The classic look remains as does the rear boxer engine. But now it’s longer, lower and has a wider front track. Wheels have grown, the door mirrors moved to the door rather than the A pillar and it’s got a bigger sunroof. Oh, and a fussy badge on the boot. Improvements are often hard to find,

W: centralcarauctions.com T: 0141 773 6000 E: info@centralcarauctions.co.uk Info: Scotland’s largest indoor auction. More range, more choice with 1,400 vehicles weekly, Mon, Wed & Fri or online via LiveBid.

but Porsche has managed it – again. The looks have grown on us already and the options list will keep buyers, and dealers, smiling Price: £81,242, tested in Issue 50.

W: drymotive.com T: 0845 8540057 E: sales@drymotive.co.uk Info: Suppliers of waterless car cleaning products that are quick and easy to use and produce an amazing quality finish.

W: autoprotect.net T: 0871 384 1167 E: sales@autoprotect.net Info: Providers of warranty, GAP and other sources of additional dealer income. Backed by dedicated support teams and IT systems.

W: martec.co.uk T: 0844 854 9669 E: training@martec.co.uk Info: Helping you deliver improved and more rewarding customer experiences, through the provision of Business Improvement Solutions.

Insurance

Auctions

Keytracker Ltd

Vehicle Remarketing

Automotive CRM

Think Insurance

HBC

Keytracker Ltd

mfldirect.co.uk

Contact Advantage Limited

W: think-ins.co.uk T: 0844 573 2850 E: enquiries@think-ins.co.uk Info: Trade insurance experts. Road risks and/or combined. Instalments. 10% new client discount. Liabilities. Up to 75% bonus discount.

W: hbc.co.uk T: 01268 696444 E: info@hbc.co.uk Info: The safest hands in salvage, HBC are prompt & efficient and operate in accordance with current industry guidelines.

W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: No more lost keys. Best prices complete systems from just 10p per key! Seals, pegs & hangers from stock.

W: mfldirect.co.uk T: 0870 6000 288 E: sales@mfldirect.co.uk Info: For the largest selection of low mileage, single owner, dealer maintained vehicles available to the UK trade see mfldirect.co.uk

W: contact-advantage.com T: 08452 26 26 50 E: info@contact-advantage.com Info: Use Contact Advantage to drive efficiencies, enhance service, increase profitability and improve customer retention.

Finance

Valeting services

Warranties

mini test: seat ibiza

First Response

National Car Cleaning Company

WMS

Car dealer says HHHHH

W: frfl.co.uk T: 0115 946 6370 E: Visit bit.ly/firstresponse Info: We always encourage our returning customers to visit the same dealer for their next car leading to Many Happy Returns!

W: nationalcarclean.co.uk T: 01268 565050 E: sales@nationalcarclean.co.uk Info: With 30 years of excellence in vehicle valeting, we have an unparalleled reputation for quality on-site vehicle preparation.

W: wmsgroupuk.com T: 0844 477 4909 E: sales@wmsgroupuk.com Info: Experience, expertise, leadership and innovation. The nation’s favourite. The dealer’s preferred partner.

W: netcars.com T: 0800 138 9135 E: info@netcars.com Info: Only pay for enquiries with the UK’s fastest growing car sales website.

Seat’s best-selling car worldwide and most popular car in the UK has undergone a mid-life facelift. With the new Mii on its way, Seat wants to keep Ibiza’s 2011 sales of 19,179 units strong. So in comes a restyled nose, a freshened-up rear, new interior details, new alloys, eight new wheels, distinctive LED front and rear lights on FR models, and the FR range extended to the Ibiza estate – the ST.

Car care

Wholesales

Online Advertising

Supagard

Carfleet Wholesale Ltd

Netcars.com

W: supagard.co.uk T: 0141 633 5933 E: info@supagard.co.uk Info: Still the UK’s number one after 24 years and the preferred choice of the AM Top 100 and major vehicle manufacturers.

W: carfleetwholesale.co.uk T: 0151 356 1200 E: sales@carfleetwholesale.co.uk Info: We are the number one supplier to the trade, providing the cheapest nearly new vehicles in the country.

Price: £12,495, tested in Issue 50.

Finance

Warranties

Finance

Auctions

Black Horse

Car Care Plan

Moneybarn

FullAuction

W: blackhorse.co.uk/Motor T: 02921 386338 E: michael.mcpartlin@blackhorse.co.uk Info: We’re the specialists in finance, offering vehicle finance at point of sale though our network of over 7,000 dealers.

W: carcareplan.co.uk T: 0844 573 7591 E: salesinfo@carcareplan.co.uk Info: Choose the market leading supplier of vehicle warranty and GAP insurance – 1m customers every year can’t be wrong!

Getting your company featured here is more affordable than you imagine. Here’s why

W: moneybarn.com T: 0845 50 50 192 E: mail@moneybarn.com Info: The leading non-prime car finance provider, offering finance for consumers with impaired credit via a nationwide broker network.

W: www.fullauction.co.uk T: 08455 611224 E: fullauction@coopersolutions.co.uk Info: Trade-only, online auction site. Free to list, buy and register. Visit our website or call the telephone number above.

Digital marketing W: motorcommerce.co.uk T: 01724 859600 E: enquiries@motorcommerce.co.uk Info: Digital marketing confusion? Come to us for effective websites, integrated marketing, business intelligence.

Prices for 12-month listings: £29 per month. Single months are £49 per month

Prices exclude VAT. Adverts are invoiced after it has been included in the magazine. 12-month bookings are payable up front.

CarDealerMag.co.uk | 87

data file.

James Litton

TRADER TALES

Why broker business is such bad news for us all

aving written recently about the emotive subject of pre-registration, I am compelled to follow up the article with another scourge of the industry. Broker business is arguably worse for the industry than pre-registration. Pre-registration at least allows a dealer to market a car locally and hopefully retain the longer term servicing business. There is also the greater chance of finance and insurance product penetration to soften the inevitable profit blow. Broker business affords none of these luxuries. My old friend Ling Valentine is perhaps the exception to the rule. Whilst Ling ensures her supplying dealers keep their prices keen and credible, she offers a retail experience unlike any other. BMW have threatened her with court action yet most other manufacturers turn a blind eye to the use of their trademarks, pictures and most importantly, distressing pricing messages. The truly parasitic brokers are those who operate out of their parents’ back bedroom, offer big discounts from UK dealers, yet offer all the security of a Greek bond investment, all for a paltry commission of £100. These guys come and go but their pricing message remains indelibly scorched in the mind of a prospective customer making profit retention all the more difficult. Regardless of how well you treat a customer, if you decide not to compete, then they have little incentive to deal with you as customers know they have access to a full range of dealer facilities. I recently had a customer who occupied one of my salesman for a total of eight hours. We had quoted a fair deal yet he came in for a warranty issue from an out-ofarea dealer, notorious for broker business. That dealer group could criticise me for not being competitive or the salesman for failing to close the deal. I would counter that argument in two parts. Firstly the long-term profitability of your business is in peril if you think this is a good way to do business. Absorption rates fall, new car margin is through the floor, but most importantly your long-term customer retention is low. From the perspective of a salesman, a customer already knows what deals are available through brokers before they arrive yet are reluctant to admit this. The British trait of being reserved means the customer feels uncomfortable asking for bigger discounts. The one thing that permeates both the theme of brokers and self-registration is the manufacturer. Less distress volume means more profit for the dealers but I cannot see that happening any time soon…

‘Their pricing message stays in the minds of customers.’

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

Bryan McMorran bryan@hwm.co.uk 01932 240611 07767 660285

www.hwm.co.uk

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

Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk

Who is James Litton?

James is sales director at Tony Purslow Mercedes Benz, Guildford. He always has something to say about the industry he loves. 88 | 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

Lookers Park Royal

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

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

Jon O’Donoghue 0208 420 5100 07976 177 959

Lee Gilmour 01923 263700 07768 367085

Richard Walker 07748 177889

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

Andy / Neil 01925 570800 07891 531129 07825 311 297

Brayley Honda Kevin Adams 07900 986095 kevin@brayleys.co.uk

Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Jerome Chandiram 0208 845 3551

parkroyaljaguar@lookers.co.uk 0208 938 1300 07534 927 821

Mike Mongiello mikemongiello@sturgess cars.co.uk 0116 282 6969

Land Rover

mini test: VW PASSAT BLUEMOTION

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

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

If customers are looking for a comfortable car and are watching the pennies, this is ideal.

Brandon Ware 0131 200 8888 0750 326 0186

Warren Butt 02380 283404 07860 530703

Price: £20,300, Issue 50.

Maserati

Mazda

Mini

Mazda

Nissan

HR Owen

Lifestyle Mazda

Vines Group

Brayley Mazda

Nissan

Toyota

Volvo

General

Hyundai

Kia

Currie Motors Toyota

Sturgess Volvo

Barry Freedman

Sturgess Hyundai

Brayley Kia

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

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Mark Spowage 01293 845045 07974 770020

Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk

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

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

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

Kevin Adams 07900 986095 kevin@brayleys.co.uk

Perry Beaver perrybeaver@sturgess cars.co.uk 0116 2541717

Sturgess Nissan Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk

Kevin Adams 07900 986095 kevin@brayleys.co.uk

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 | 89

the fleet.

longtermers

Outlander: First report J

ust as we say goodbye to one Mitsubishi, another arrives to take its place. I never got the chance to pilot the iMiEV that Car Dealer had custody of before, but I was at least first in line for a go in the Outlander. And what a task I had for it – transporting all of my worldly possessions from one side of the country to the other as I relocate nearer to Car Dealer HQ. And how did it fare? Rather admirably, actually – getting me from Hampshire to Kent and back in speed and comfort; slightly unsupportive seats notwithstanding. With both sets of rear seats folded away, nearly everything I’ve ever owned slotted happily into the boot – and I don’t travel light. Even the traditional new-flat IKEA trip wasn’t a problem. I didn’t fancy negotiating an unwieldy double mattress into the load bay, but it did swallow 1.8 metres of sofa without too much difficulty. ‘I wasn’t sure if that would fit!’ I said to the employee who helped me lift it in. ‘Well, it’s a big old motor!’ he replied. High praise indeed from a man that works in a store the size of Texas. It doesn’t handle too badly either, I reckon. A seven-seat, 2.5 tonne SUV was never going to out-corner a Mazda MX-5, but the Outlander isn’t half bad. The automatic gearbox and 2.2-litre diesel engine make for more of a relaxed drive than a spirited one, but it’s not a bad pairing. First gear though – as Mr Baggott warned me – is a little on the inflexible side, but certainly nothing to write

home about. As a closet boy racer, I even liked the ridiculously bass-heavy Rockford Fosgate stereo – if not the traffic jam stares I received as its rear subwoofer shook nearby windows. There’s one thing I couldn’t get on with, though: the sat nav. It directed me to and from places reasonably enough, but it’s no TomTom competition in the interface department. Everything looks a bit Windows 95, and it’s voiced by a terrifying female prison guard-like character – barking orders out of the speakers a little too firmly for my liking. I couldn’t work out how to input postcodes either. It had a bit of a fit when I tried to plug in my iPod, too – co-operating with it once, but sadly never again. Happily Bluetooth streaming worked just fine, but it’s a shame that these niggles are still present. But you can’t really complain about things like that when Mitsubishi dealers are now offering a whopping £4k off the Outlander. That means our car retails at £25,599 – and I think that’s stonking good value for money. I’m rather pleased to see something with fourwheel drive appear on the fleet. In fact I’m so pleased that I’m even hoping for cold weather. Bring on the snow, I say. JON REAY

the knowledge Model: Mitsubishi Outlander 2.2 DI-D GX4 4WD Automated Manual Price: £31,029 Engine: 2.2-litre, four-cylinder Power: 154bhp, 380Nm Max speed: 123mph MPG: (comb’d): 39.4 0-60mph: 11.1s Emissions: 189g/km Total mileage: 3,270 Costs this month: £0

This month’s highlight: My move to Hampshire went very smoothly thanks to this ‘big old motor’.

Kia Rio: Seventh report M

y time with the Kia Rio was brief, but just about enough to get a measure of the car. I’d previously had a 1.1 CRDi on loan and found the car to be a worthy alternative to the mainstream likes of the Fiesta and Corsa, but the near-teetotal engine lacked power. The 1.4 engine in the Car Dealer Rio addressed that issue nicely, with the car now able to lead the getaway from traffic lights and keep up with the flow on the motorway. Impressively the extra power doesn’t seem to affect the economy too significantly, with the 1.4 using barely any extra diesel than the 1.1 I’d previously tested. Kit levels on this ‘3’ spec car were good, with the heated seats being appreciated on a cold morning. Being able to link my phone to the stereo via Bluetooth was also a big benefit. Sound quality was also good for phone or CD, but I’m not sure that the CD Jon Reay left in there was really to my taste. Trundling through the glacial traffic of Portsmouth the light clutch was a boon, especially as I’m more used to automatics, but visibility to the rear was dreadful thanks to huge C pillars and a tiny rear window. Other minor irritations were the 90 | CarDealerMag.co.uk

seatbelt extender that only just managed to avoid taking my eye out and, segueing nicely from one seatbelt issue to another, the seatbelt warning bong was rather enthusiastic, repeatedly advising me that the bottle of Coke on the passenger seat really needed to be strapped in. As they’re priced within £300 of each other, it’s seems fair to put the Rio head-to-head with the facelifted Seat Ibiza I’ve currently got on test in a very mini road test! Surprisingly, the Ibiza feels a more compact car despite being slightly larger, with a bigger boot. The Seat’s definitely a more entertaining car to drive too. Despite its tiny 1.2-litre petrol engine, the Ibiza’s also considerably quicker, but can’t match the dieselengined Rio for economy. However, the Ibiza is trumped on equipment levels. Cosmetically it’s a dead heat, swoopy lines, big wheels and red paintwork on the Korean car appealing every bit as much as the sharper edges of the ‘speed blue’ Ibiza. Almost a dead heat then. Despite my time with the Kia being brief, the Rio impressed. The 1.1 may use a little less fuel, but the PHIL HUFF 1.4 is much a more usable tool.

the knowledge Model: Kia Rio 1.4 CRDI ‘3’ Eco Price: £14,295 Engine: 1.4-litre, 3cyl Power: 89bhp, 90Nm Max speed: 107mph 0-60mph: 13.7s MPG (comb’d): 70.6 Emissions: 105g/km Total mileage: 12,272 Costs this month: £0

This month’s HIGHlight: Finding the car is equally at home in B-road jams or on the motorway.

Calls via Motor Codes

Profit

Subscription to Motor Codes = more business. Fact. Take the challenge. Log into your account and track the calls you receive through our website, using our new call monitoring service. www.motorcodes.co.uk

“Motor Codes helps consumers make a conﬁdent choice and, in turn, drives business to its committed subscribers.” Robert Forrester, CEO, Vertu Motors whose Bristol Street network attributed £117,000 of business to Motor Codes referrals in a pilot of the call monitoring scheme.

workshops.

Andrew Page opening major new facility

BOSCH

New training videos on YouTube

It’s a very exciting time for us, says firm’s managing director

ith a desire to become one of the UK’s leading parts distributors, Andrew Page Ltd will be opening their new 100,000 sq ft national distribution facility in the next few weeks. Supplying the company’s 65-branch national network, the distribution centre will also service the 30 newly-acquired Camberley Auto Factors branches in the south of the UK. A further investment of £3 million will also see the Camberley Auto Factors branches go through a refurbishment programme together with introducing

new systems and processes. The upgrading of branches will see an expanded stock range and increased capacity. Central to the company’s strategy and commitment to provide customers with a greater variety of quality parts and services to trade and retail customers, the Markham Vale-based facility will be staffed by a dedicated logistics team that will grow in line with the company’s expansion programme. A fleet of 26-tonne Mercedes-Benz trucks will operate out of the site delivering, on a

daily basis, to the company’s branch network. Andrew Page’s managing director, Mark Roberts, said: ‘This is a very exciting time for us. ‘Establishing a major national distribution facility is an integral part of our growth strategy. As we grow our branch network, it is vital to ensure that the flow of replacement parts and components is enhanced, providing a service to customers that enables them to improve their profitability.’

BOSCH is helping vehicle technicians be better informed and work smarter with the launch of a new YouTube channel containing instructional videos. The videos communicate the latest automotive technology and best practice in car servicing and repair, and are viewable on mobile devices. Workshops are increasingly using smartphones and tablets to search for ‘how to’ guides, and Bosch are reacting to that trend. Videos will cover everything from spark plugs and wiper blades to catalytic converter analysis and oscilloscope readings.

CarDealer.Club

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Free legal advice worth £199 Discounts from key suppliers And a subscription to Car Dealer

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Issue 55 | October 2012 | CarDealerMag.co.uk | £3.50

ROAD TEST YEAR OF THE

OUR FAVOURITE CARS ON SALE IN THE LAST 12 MONTHS

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Want to be included in our new section? Call (023) 9252 2434

System reduces waste and costs No need to mix filler manually with Dynamic Mixing System from 3M

he dent repair business could see a reduction in wastage of both product and time thanks to the launch of the first portable system to mix and apply filler on demand. The Dynamic Mixing System from 3M eliminates issues such as pinholes, waste, staining and overmixing by removing the need to mix filler manually. The system removes the guesswork involved in mixing filler by providing an air-free and controlled ratio of hardener and filler. Richard Burn of 3M’s Automotive Aftermarket Division explained: ‘The traditional repair process is based on estimating – from how much filler and hardener is required, to the mixing time – and this can lead to problems. Product wastage is a big issue as is the extra time spent having to correct potential

imperfections like pinholes and staining, if the mixing process has meant air being introduced or too much hardener being used. ‘The Dynamic Mixing System is a breakthrough in body filler technology as it removes all the guesswork and allows the mixing system to be controlled and therefore be much more efficient. ‘The optimum ratio of filler and hardener is delivered every time and can be applied as and when it is needed, saving time and money.’ Using a vacuum-packed cartridge containing both the filler and hardener, the system provides a fixed

ratio at all times, eliminating the possibility of over catalysation. The two components are mixed in the disposable nozzle that comes with the system, so nothing is left over in the cartridges. Traditionally, large amounts of filler are left over in tins and cartridges before being thrown away. Being airtight, allowing reuse of the product up to 12 months after the initial use, the 3M system reduces both waste and costs.

20% fuel savings

Time is money. Save both with our new compact hot water pressure washer The new, compact HDS 6/12 C is packed with innovations to make cleaning faster and cheaper, without compromising results. With its eco!efﬁciency mode, the 6/12 reduces diesel consumption by 20%, making the cleaning power of hot water even more affordable, whilst its highly ergonomic chassis design puts the simple, intuitive controls at your ﬁngertips. And with tough, proven components throughout, and the peace of mind of a three-year burner coil warranty, the 6/12 sets a new benchmark for compact hot water pressure washers. For further information on how the new HDS Compact range can make a difference to your business visit www.hdscompact.co.uk, call 01295 752 142, email hdscompact@karcher.co.uk or scan the QR code.

www.karcher.co.uk

CarDealerMag.co.uk | 93

SHARES.

..in association with ASE-global.com

Transaction activity is key ...and investors are STILL waiting for light at the end of the tunnel

fter a good couple of months of share price growth for the majority, September proved a much quieter and more stable month amongst the listed motor retail stocks. Whilst the market held its breath and waited for a preliminary steer on whether the key registration month of September had proved successful, there was a limited amount of movement within the share prices and few announcements to digest. One of the more significant medium-term moves took place at Lookers. In the middle of September Jack Petchey, the second largest individual investor in the business, sold his 17.3 per cent holding of Lookers. Petchey had driven a lot of the excitement around the stock in June last year launching a takeover bid for the business, which was ultimately rejected. The transaction price for the share sale was around eight per cent below market level and, whilst there was an immediate drop in the share

94 | CarDealerMag.co.uk

price, it bounced back in the few days after the transaction to recover all of the loss and more. This may be because, in addition to the shares having been picked up by existing institutional investors, George Soros, the man who famously broke the bank of England with his bet against the Exchange Rate Mechanism in 1992, acquired a 4.5 per cent stake in Lookers. In spite of this purchase, the shares in Lookers should now be more liquid which may drive increased volatility in the share albeit within a smaller range. Alongside this excitement the share price has consolidated the gains made during the third quarter. Also consolidating gains made over the last few months was Vertu. During September the group continued its recent trend of increasing scale without making a goodwill payment by picking up six sites from the Co-operative Motor Group. There has been a steady increase in transaction activity from Vertu over recent months suggesting that there is an appetite to expand. HR Owen has also had a steady month from a share price point of view, building on the gains made at the end of August. The Cambria share price appears to have reached a base level after more falls at the start of

September as the Promenthean share divestiture continues to work its way out. It is now a very similar price-per-share to Pendragon and it will be interesting to note which of these businesses recovers its share price the fastest. The Inchcape price moved within a relatively limited range during September, with recent transaction activity showing a downward trend. There was also limited movement in the Caffyns share price with very low transaction levels. As we move through the final quarter we should get a reaction to the rash of earnings announcements and trading updates which will be issued. Overall financial performance this year has been relatively bullish with share price trends driven either by estimates of medium-term performance or ownership activity. Whilst this may continue as we move through 2012, it is unlikely that we will get any sustained growth in the share prices until investors start to see the light at the end of the recessionary tunnel.

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

We continue to set the standards that others strive to reach.

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Only need apply! Marshall Motor Group is part of a unique family owned group of companies with a turnover approaching £1bn (35% growth), with interests also in the aerospace and ground systems sectors. We celebrated our Centenary in 2009 and we are still growing in size. At Marshall, wherever we work, we all play a big part in ensuring that our sales and profit targets are met, not least by providing our customers with a fantastic level of service which means identifying their needs, and responding to them quickly.

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With our strong customer centric and people focus it is not surprising that we have received some enviable accolades including "Dealer Group of the Year" and being shortlisted for "Employer of the Year" and we are committed to building on our achievements to date. We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us. Please go to

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to find out more about the Group and see our current vacancies.

WE’RE RECRUITING... PETER VARDY IS NOW RECRUITING IN MANY AREAS FOR ALL OF OUR DEALERSHIPS. We’re looking for people with drive, passion and retail sales or customer experience. You don’t need a motor industry background, just the desire to succeed. We’ll give you all the world class training you need... plus a great financial package, and every Sunday off. If you want the chance to build a career with Scotland fastest growing motor retail group then apply today.

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data fiLe.

This approach to a sale really impressed me, and here’s why... N

ormally when visiting dealers looking for cars, it’s Mrs Such who has her sights set on something, with my role being to give any assistance that she may need (and I mean may!). So imagine my joy and excitement on a recent Sunday morning visit to a local franchise dealer – it was me we were shopping for! Knowing there were two vehicles I was interested in, both from different manufacturers, I thought it prudent to only visit one of the car dealerships on this particular day, as the wrath I would experience facing two eager salespeople in the same day, whilst accompanied by the wife, was something I wished to avoid! I was very honest with the salesperson in advising him of my desire to view and test-drive both vehicles before reaching a decision on which to proceed with, and his approach was accommodating whilst having a touch of subtlety about it. What a refreshing change it was to find a salesperson who has enough confidence in their own product and the service they are offering to be able to advise ‘try the competition and see for yourself how they compare before coming to your decision’. The approach that this salesperson used (and I will be writing to his sales manager in due course to show my appreciation) was a refreshing change from some of the sales tactics that I have witnessed over the last month, and because of this he has created an immense amount of credibility in my own mind about this dealership’s sales tactics and ethics. And that’s the most crucial point to take note of here: the amount of trustworthiness that was created in

Jonathan

Such

TIME IS MONEY

this first face-to-face contact (and this can also apply to telephony) has significantly increased the chances of this sale proceeding and taking place. More importantly it has increased the chances of any relationship longevity, not to mention what referrals I may give to other people as a result of their good business conduct. Competitors (in any industry) come and go at regular intervals. Some are here for the long term and enjoy a successful and prosperous future while some, unfortunately, are just a ‘flash in the pan’. My personal view on competition is very simple: Providing each and every one of us possesses a good

‘Difficulties start when you lack confidence in the product or service you are offering.’ level of thinking which constitutes good and correct business behaviours and practices, our chances of survival and prosperity will increase. The difficulties start when you don’t have confidence in your own product or the service you are offering and, as opposed to concentrating on your own issues, you concentrate on belittling your competitors in your own sales messages with potential customers. And while this approach may seem to have the desired short-term impact with higher sales, longer term it is decreasing your success rate as customers see through the short-sighted tactics. Choose to do the right things today – it will impact your ability to be here tomorrow.

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

98 | CarDealerMag.co.uk

BEN RALLY

Full report on our charity trip

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DRIVEN

VW’s new Golf is put to the test

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