Driven: Porsche 911 Carrera 4S & Vauxhall Adam
Business Publication of the Year
GENEVA MOTOR SHOW SPECIAL
Issue 61 | April 2013 | CarDealerMag.co.uk | £3.50 ssangyong SIV-1
mitsubishi GR-HEV
rolls-royce wraIth
lamborghini veneno
bentley flying spur
FERRARI LAFERRARI
S R E P P O T S W SHO
THE
Alfa Romeo 4C
INSIDE: sweaty halls, swiss people, stupidly named cars? Well, yes, but we battled through it to bring you a 15-page special
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IGNITION.
EDITORIAL EDITOR James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor STAFF WRITER Jon Reay jon@blackballmedia.co.uk Twitter: @JonReay head of design Graeme Windell graeme@blackballmedia.co.uk Twitter: @CarDealerGraeme
ADVERTISING ADVERTISING Manager Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerDunc Advertising EXECUTIVE Amy Hobbs amy@blackballmedia.co.uk Twitter: @CarDealerAmy CAR DEALER CLUB ADMINISTRATOR Natasha Smith natasha@blackballmedia.co.uk Twitter: @CarDealerTash
SUITS MANAGING DIRECTOR James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd OPERATIONS DIRECTOR Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy
Contributors
Mike Jones, James Litton, Tim Naylor, Tim Smith, Tim Heavisides, Jonathan Such, Dave Brown, Mal Hay, Leon Poultney and Sam Burnett.
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grown up watching Welcome. I’VE the Geneva Motor Show
on Top Gear. I looked forward to it each year – the amazing debuts, the girls and the constant on-screen banter between Clarkson and Willson. This year was the first I had actually attended the event – and I couldn’t wait to follow in the footsteps of my heros. But going to a motor show is not as glam as you think. Don’t ask me about the new Ferrari or whether that madlooking Lamborghini Veneo really does look a cheese-grater in the metal. Don’t question me about the new Rolls-Royce Wraith either; or the Volkswagen Golf Estate. Why? Because I spent my whole time running from one stand to another talking to top car bosses. Despite it being press day – ie. as the name suggests, only open to members of the press – motor shows now deem it necessary to allow rich and influential punters in. They naturally amble around with their diamondencrusted Nikons, while slightly sweaty journos such as I are running around doing the proper work. And they bring their children – often all 17 of them who have a tendency to lie around on the floor, screaming about being at the most important motor show in Europe’s calender. That’s not to mention being almost prevented by one car maker to leave their stand and to go to another to interview another car boss. But, nevertheless, it was a good motor show. Despite Europe having a financial meltdown, pricy supercars were the order of the day. You can read the fruits of mine and James Baggott’s labours in our 15-page special, starting on p38. NEW STUFF THIS month we’ve introduced some new content to the magazine. Firstly I’m pleased to say we’ve a new section called Taking Stock. It’s designed to give the low-down on what’s currently going on in the used car market. It gives
the the current trends; what’s hot and what’s not; and give you an idea of what you should be paying attention to – turn to p73 to see what I’m on about. Meanwhile Shares – brilliantly edited by ASE’s Mike Jones – has now been replaced by Market Insight. Written by Mike’s colleague Steve Freeman, the new column analyses the current market. It’s a cracking read – you can find it on p81. Not App-y days FOR the thousands of readers who get their monthly Car Dealer Magazine fix via the iPad, I must apologise. When we swapped the servers that store copies of the magazine (I’ve been told what to type here as this means absolutely nothing to me), our popular App lost access to them. Users have reported a warning that says ‘No Network Connection’ when they are connected to the web. Confusingly annoying. Anyway, our App developers have submitted a new version to Apple and we’re hoping by the time you read this it’ll be working again. So apologies to those of you who didn’t get to download last month’s issue, but look on the bright side – you’ve now got two issues of this award winning magazine to read! A PR spin that Alastair Campbell would be proud of... GOODBYE JADE At Car Dealer Towers, we’ve waved a very sad goodbye to advertising executive Jade Simmonds. She’s been with the team for the last three years, and has helped grow Car Dealer into the much-respected publication it is now. For those who met her, I’m sure you’ll join me in saying good luck to her – she’s off to Cornwall... Lucky girl. Enjoy the issue.
James Batchelor, editor
Winner: Best Business ‘This magazine brings its readers an insightful, engaging overview of their industry which Publication of the Year entertains as well as informs’ - award judges CarDealerMag.co.uk | 03
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38
15-page Geneva special The Car Dealer team fought through the sweaty and packed motor show halls to bring you exclusive interviews
INSIDE. ISSUE 61 I APRIL 2013
Dashboard
07 Car Dealer Conference 09 Car Dealer Power 10 That Was The Month 21 Finance 22 Big Mike 25 Baggott 27 World’s most amazing dealerships 28 Car Dealer Club 31 Letters
28
Most amazing dealerships in the world
Forecourt
Bentley Continental GT Speed
‘‘
I hope we keep Clarkson happy with the new Ford Mustang
42
Roelant de Waard, Geneva Motor Show
33
Porsche 911 Carrera 4S Porsche Panamera GTS
Tested: Bentley GT Speed
Porsche Cayenne GTS Vauxhall Adam SsangYong Korando Sports Mitsubishi Outlander
Features
Driven: Vauxhall Adam
36
Geneva Motor Show Special Focus on: GForces Tools of the Trade
Data File The Statistics Taking Stock Commercials Auctions
34
Trader Talk On Track Motor Mouth Verdict: Porsche’s new 911 Carrera 4S
a month in A picture...
Yes, this is the gruesome twosome – namely James Baggott and James Batchelor – on a chairlift in the ski resort of Chamonix. They spent the week skiing and generally laughing about with the small matter of the Geneva Motor Show spoiling the frivolities half way through the week. Well, some people have to have the fun jobs, you know...
Market Insight Suppliers Guide & Trader Directory with Litton Long Termers Workshops Time is Money
33 34 34 35 36 37 37 38 54 57 70 73 74 77 78 79 80 81 82 84 86 90
CarDealerMag.co.uk | 05
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feedback. Your comments via email at james.batchelor@blackballmedia.co.uk | Our website at CarDealerMag.co.uk | And from Twitter: Follow @CarDealerMag
Where did Mondeo man go? Flicking through the ‘Business Class’ feature in your latest issue, I couldn’t help but wonder when reps stopped buying VWs and Toyotas and the like, and started on BMWs and Mercs. I don’t think I’ve seen a single one of those Honda Accords on the roads since 2008 or whenever it launched, and barely any Passats. It’s a shame really, as I always liked the traditional saloon shape – I can’t get on with this crossover business personally. Soon there’s going to be no choice left, I fear, and we’ll all have to buy a 3 Series... Darren Hargreaves via email Your feature gave the impression that business men choosing the BMW 3 Series and MercedesBenz C-Class over more humble cars like the Honda Accord is a new thing. I can tell you it isn’t. Ever since the mid-90s, the 3 Series has been the chosen wheels for the suited brigade. There was no doubt the Mondeo was popular but not because people wanted them – they all wanted the German car. It’s hardly surprising the new 3 Series won the test though. As a former BMW salesman, I couldn’t sell enough of them. They really are the perfect saloon car for business people. Why they have to be so expensive, though, I do not know why. Sandip Kahn via email
Bill’s a bundle of joy
Your Bill Board story last month filled me with joy: it’s great to see that there are still some characters left in the industry. I don’t doubt his records for a minute, either, as more often than not it’s chaps who have been in the game the longest that get the best results. Mary Williams via email
Baggo’s back – hurrah!
Pleased to see Baggo making a return to the mag
twitter comments
Suspicious 13 is a problem Back in Issue 59, our automotive influencers were adamant the ‘superstitious’ 13-reg would NOT cause problems for dealers. However, dealers tweeting us – @CarDealerMag, @CarDealerEd and @JRRBatchelor – this month said they were feeling the effects while others said they were not. Turn to p70 to find out what two dealers think of the issue – but in the meantime, here’s what Twitter had to say...
It is putting off buyers! I’ve had it first hand! Carrie Harding @therealclh I’m not convinced – I’ve had it mentioned by a few people who ended up buying late 62s or Mini Cherished. Halliwell Jones MINI @HJMINI Surely people aren’t worried about the number #13 as unlucky. Might find that reg becomes a collectors item. Paul Stewart @pas7272 Simple sell them a private plate ! Even with a with some lively opinions – even if not everyone is quite so pleased about it! Disagreed with a few bits of the column, mind: in my experience the owners that tack the Nurburgring or M stickers on the backs of their cars are never quite as ‘gentleman sausage’-like as you might expect. Though I will agree that Insignias are hateful – as are their drivers, on the whole... Jeff Smith via email
Octavia? How much??
As much respect as I have for Skoda, and as lovely as I’m sure that new Octavia is... £21,000 for a 1.6 diesel?! At what point is it worth just prying
’62 - Don’t have to wait till september ! #13 Umesh Samani @specialistcars1
If someone’s afraid of buying a ’13 plate they shouldn’t be allowed to buy any car, nor drive. Ever. Never ever. Jack Phillips @JPippin off that strange badge and gluing a VW one on? I remember when Skoda was the ‘value’ option, but evidently those days are over... Mark Edwards via email
Bean there, done that
Coffee machine feature this month was a good read – had me chuckling in places. It’s worrying how true most of it is, too – or rather that’s how it felt. The number of times I have to hold my tongue because a customer reminds me of someone from Little Britain or wherever... Paul Spiller via email
The first day initiation game that lead to funny results WE all know the usual initiation games, sending the new kid to get a sky-hook, a tin of tartan paint or even a glass hammer. All very funny, but where do you draw the line? I think I found out. We had a new salesman, a young and keen kid, but not very bright. On his first day, we did the usual and sent him out to the local Renault dealer to get a long weight for a Megane, good start. Then explained that the new Astra had voice recognition and you had to say ‘open door’ when opening the doors. Now we all know that it had keyless entry but
watching him walk up to the car and say ‘open door’ before opening the door was priceless! It wasn’t long before the excited kid started speaking to punters and he was more than keen to show off the ‘voice recognition’ feature on the Astra. Our faces dropped as the punters actually believed the kid and after an hour, bought it! As he walked past my desk, he said: ‘I think it was the voice recognition that did it, why don’t all cars have it?’ Sitting with my mouth wide open, I just nodded. I couldn’t believe that the kid thought it was
My
CONFESSION
real, but more to the point, the stupid punters! Watching them on the forecourt unlocking and locking the car with just the power of their voice was the most fun I have ever had at work. I can just imagine the couple saying ‘Open door’ to their car in Sainsbury’s car park of. Sorry if you are that couple….. The kid lasted two months before he was sacked for crashing a Vectra VXR on a wet, twisty road. Apparently he had his girlfriend in the car so pressed the ‘Easily Scared People’ or ESP as it is more commonly known ‘because she gets car sick’. Where he got that idea from I will never know... CarDealerMag.co.uk | 07
Know exactly what your customers want before they ask
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Start your holidays with new ideas...
Heavisides warranty wonders
Cherished plates could be lucky for us this year
W
...by coming along to the Car Dealer Conference
T
he merry month of May is very nearly upon us, so why not get your bank holiday into full swing – and learn a little something to liven up your business in the process? On May 3, we’ll be holding our 2013 Car Dealer Conference at the Heritage Motor Centre in Gaydon, Warwickshire. Held in association with Pro-Align, it should be a fantastic event – and an ideal start to the bank holiday. The day will be jam-packed with the very best ideas on how to make more money – and we’re sure it’s an event you won’t want to miss. You’ll be hearing from 10 key speakers on the day who’ll be discussing the best ways for dealers to make more profit from their businesses, with a focus on lead generation, maximising sales and F&I. Headlining the conference will be the wheel alignment specialists Pro-Align who’ll also be holding a live demonstration of their wheel alignment products. Meanwhile the Heritage Motor Centre’s
exhibition hall will be full to bursting point with the Car Dealer Conference Expo. Here around 20 exhibitors from all areas of the trade and motor industry will be on hand to chat to about the products and services they can offer to dealers. But the really big news about the 2013 Car Dealer Conference is the live Q&A session. Chaired by Car Dealer’s editor, the session will feature leading figures from the automotive industry – and if you’ve got a burning issue you want to discuss, it’s the perfect opportunity to – BBC Question Time style! You could also be in with a chance of winning an iPad! A draw will follow the Q&A session – so make sure you pick up your raffle ticket on the door! And if you’re a car fan – and why wouldn’t you be? – you’re in luck. After the conference has finished (at around 3pm), you’ll be more than welcome to explore the automotive delights downstairs in the Heritage Motor Centre. Registration for the event is OPEN NOW. To book your FREE ticket, email the editor at james.batchelor@blackballmedia.co.uk and a member of the Car Dealer team will confirm your space. Joining instructions will be sent out nearer the time.
RAC enters the world of used cars with Netcars THE RAC is entering the world of used car advertising with its purchase of Netcars.com. Relaunching the site in April under new name RAC Cars, it’ll advertise used cars offered through outlets in the firm’s Approved Dealers network. The RAC estimates that this combined with those offered through RAC BuySure partners and eventually private sellers, will total around 100,000 listed vehicles.
Netcars, which was launched around 10 years ago, currently advertises more than 74,000 cars. ‘This represents a major new direction for the RAC which will result in a significant improvement to the secondhand vehicle market for our members and other customers,’ said the RAC’s chief executive officer, Chris Woodhouse. The site continues as Netcars until then.
ill customers really shy away from buying a new car over the next six months because they’re superstitious about a 13-plate? I don’t think they will, but the AA’s Car Purchase Index suggests that financial practicalities might have more of an effect than fear of what’s on the registration number. I hope the market is able to continue the turnaround we started to see in 2012. The UK was the only market in Europe which was on an upward trend last year and the measures that dealers put in place during the previous lean years should stand them in excellent stead when volumes pick up again. Whether it’s superstition or the economic climate — we’ve been through this before — we seem nervous about forecasting the beginning of better times. There was a time when green cars were unlucky or registration plates with 666 were frowned upon and it’s not that long since the credit crunch was predicted to be the end of the car market as we know it. But our industry has an uncanny ability to pull through tough times and make the most of the conditions. And while the AA’s report suggests a drop in the number of people who are considering buying a car, over threequarters of those who are heading for the showrooms will be looking for a used vehicle. Buyers of used cars offer a whole host of opportunities for dealers to make up any shortfall in trading profit. Of course, selling a customer a nearly-new vehicle instead of a 13-plate car is the obvious answer for those who can manage it. For customers who need to buy an older model, making sure a service plan or an extended warranty is bought as part of the deal is a great way to add profit into the transaction and make the most of the footfall in the dealership. These arrangements also have the added bonus of bringing customers back for work later on within ownership. Something we have all learned in recent years is that for a healthy bottom line we all need a mix of business. Selling a variety of products is better than having all your eggs in one basket. For some customers, though, only new will do and that is where most of the emphasis is placed for dealers. So what do you do with those purchasers who want a new car but who are just too nervous about a 13-plate? Simple — suggest a cherished plate and everyone will be happy.
‘Our industry has an uncanny ability to pull through tough times’
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
SURVEY.
Car Dealer Power in association with..
Get filling in – there’s still plenty of time... Dozens of you have filled in this year’s Car Dealer Power survey. Why not join in our quest to find the best manufacturers and suppliers in the industry. We’ve even got bribes!
T
his year’s Car Dealer Power survey has got off to a great start. Dozens of you have filled in the printed version (from last month’s issue) and gone to CarDealerPower.com to complete the online version – it only takes a few minutes! Now in its fourth year, Car Dealer Power firmly puts you, the dealers, in the driving seat and gives you the chance to tell manufacturers and suppliers exactly what it’s like working with them. It’s your opportunity to recognise the very best companies that help you do business. Car Dealer Power – this year supported by GEN-3 Glasscoat – is the survey which aims to find the best car manufacturer in the UK to represent by quizzing its dealers about how it performs on a variety of levels. Last year, Hyundai just pipped Suzuki and Volkswagen for the top gong. Suppliers feature just as prominently as the manufacturers, and for 2013 you’ll see there’s ample opportunity to name the suppliers you like to do business with. Like last year, we’re giving even more prominence to the suppliers that support dealers on a daily basis. We’ve split a number of the categories up to give the smaller firms more chance of recognition in these important awards. We want you to rate the firms you use in all areas of your business so we can celebrate the
very best – and invite them to our special Car Dealer Power Awards night on June 12. We’ve also managed to secure a number of prizes which will be handed out to random respondents to the survey (see right).
WHY SHOULD I FILL IT IN? WELL, not only do you get the chance to share your views, but there are prizes too! Car Dealer Power is 100 per cent confidential – we don’t even ask for your name, only your mobile phone number so we can let you know if you’ve won a prize. We want to know the good and bad things about what it’s like to represent your car manufacturer, so please feel free to give the most honest opinions possible. Car makers take our survey very seriously and a number have implemented changes to their processes directly off the back of comments made in previous years’ surveys. Filling in the survey at CarDealerPower. com shouldn’t take longer than a few minutes.
Awards Night Just like last year, we will be holding an awards night for the winners of Car Dealer Power Winners will receive access to Car Dealer Power awards artwork, will bag a stunning trophy to take away with them, and will receive fantastic publicity in Car Dealer Magazine and on our website. One small tip though – we advise all suppliers and car manufacturers to ask their clients and dealers to fill in the survey. A friendly nudge towards the online survey can work wonders...
THE BRIBES
Fill in the survey... and you could win!
Every respondent who gives their mobile number will be entered into our prize draw to win one of these fantastic prizes. BMW SPORT CHRONO WATCH How about checking the time with this German masterpiece? Worth £208, it’s a stunner! LAND ROVER EXPERIENCE Fancy a half-day full of mudplugging? You’ll learn how to tackle rivers and ditches! SIGNED PORSCHE MODEL Here’s a 1:43 scale model of a Porsche 911 GT3 R signed by racer Peter Dumbreck. BEAULIEU TICKETS Entry for two adults & three kids/one adult & four kids. Top attractions include Bond in Motion. CITROEN GOODY BAG Are you a Citroen fan? We’ve got a Seb Loeb cap, 90 years of Citroen book & model cars. LE MANS BOOK 2013 is the 90th anniversary of the 24-hour race. Celebrate it with this ‘Panoramic’ book worth £35. HONDA BTCC TICKETS A pair of entry tickets to a BTCC round of your choice courtesy of Honda Yuasa Racing. Thanks to: BMW, bmw.co.uk; Land Rover, landrover.co.uk; Propel Technology, propel-technology.com; Beaulieu, beaulieu.co.uk; Citroen, citroen.co.uk; Veloce, veloce.co.uk; Honda, honda.co.uk.
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Online searches rocket thanks to Top Gear bit.ly/TopGearEffect
Crazy prices for used cars overseas Exported motorcycle and van values are going through the roof, as well
E
xport demand for used cars is driving up many vehicles’ prices to unnatural levels, according to CAP. Researchers for CAP Black Book are reporting ‘crazy’ price tags that vehicles destined for export are beginning to achieve — with many selling for prices far beyond their normal market values. CAP cites the example of a six-year-old Citroen C8 that recently sold for £5,500 — some £3,000 more than its UK retail value. Similarly, a fiveyear-old Audi A4 destined for other shores sold for £15,400 — ‘more than double’ its CAP trade value of £7,175. It’s not simply exported cars that are receiving inflated prices, though — with both motorcycle and van values often going beyond normal levels. CAP suggests that both Ford Transit and Mercedes-Benz Sprinter vans are ‘frequently’ bought for export, while the hardy Toyota Hilux also proves popular. The main cause of the inflation can be as
simple as the cost of fuel, CAP suggests, with ‘thirsty’ models equipped with large petrol engines far more in demand abroad than in the UK. Even damaged cars — and in particular 4x4s — are proving popular, often exported to
Eastern European countries and used for spare parts or simply cheap transport. ‘This is one of the biggest untold stories of recent years across the UK used vehicle markets,’ said CAP’s Mike Hind. ‘Our experts are often astonished at the prices they see paid for vehicles destined for export and there is no sign that demand will dry up any time soon. ‘Sometimes it is causing real issues for dealers and traders in our own markets, with real pain being felt by bike dealers in particular, at present. But elsewhere it is helping to remove a considerable number of vehicles that would otherwise struggle to attract any interest here.’
CarDealerMag.co.uk | 11
your sales...
With the #1 website dedicated to vans Monthly market share in ‘Automotive - Classifieds’ 0.5
0.4
www.thevanwebsite.co.uk
0.3
www.whatvan.co.uk 0.2
www.vanlocator.co.uk 0.1
0
June Measured by visits.
July
August
September
October
November
Source: Experian Hitwise UK
Based on UK usage. Created: 11/12/2012.
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Profits rise 26 per cent in People’s Ford bit.ly/PeoplesProfits
Answering EV myths is the challenge for Ampera dealers ...says Opel spokesman. Leon Poultney reports
Lookers profits up at £35.3m
T
he biggest hurdle to overcome when selling the Vauxhall Ampera is not the £30,000 asking price but ‘the many myths that surround electric vehicles’. Speaking exclusively to Car Dealer, coordinator for Opel brand communication in Europe, Christopher Rux, said: ‘Before customers even ask about price, they have a long list of questions about hybrid cars that need to be addressed. ‘Before we launched Ampera, we did lots of research on common myths and they range from “an electric vehicle will not work in the rain” to the misconception that charging an EV at home will use so much electricity, the wife can’t use her hair dryer. ‘And that is before we even begin to talk about range anxiety and the worries that come with batteries.’ Education is a key strategy for Opel/ Vauxhall and that learning begins at the dealership where salespeople are required to ‘go back to school’, as Rux put it, in order to sell the car properly. ‘First of all it is essential we pitch this car at the right person. We don’t want the Ampera to be a third car, we want it to be used every day. ‘So we train dealers to ask questions about where they live, do they have a garage? Is there a charging point at work? Then we get out a map and point to all the charging stations on the routes the customer most regularly uses,’ said Rux. ‘If it all makes sense, that’s when we move away from just offering the
RESULTS
LOOKERS PLC has announced pre-tax profits of £35.3 million in 2012 — up 12.4 per cent on 2011. The group, which runs Lookers-branded dealerships in England and Wales, along with Charles Hurst in Northern Ireland and Taggarts in Scotland, posted revenues up 8.4 per cent to £2.06bn. The total was boosted by the acquisition of Lomond Group Audi, who has franchises across Scotland.
CLASSIC Insignia or Astra, we get the calculator out and make it very clear just how much the customer could save over two or three years. ‘As soon as the customer sees the savings, the asking price doesn’t matter any more.’ Re-education doesn’t stop at the shop floor as Rux reveals that even mechanics must be correctly trained to handle the Ampera’s Lithium ion battery packs. It’s a huge investment by Vauxhall and neither Rux or any other spokespeople available would come up with an exact monetary figure for all the additional training. Considering Vauxhall only sold 5,293 Amperas in Europe last year, that investment seems even more risky. ‘The investment is irrelevant,’ Dr Christian Kunstmann, senior
manager for GME electrification, told us. ‘Mechanics, engineers and salespeople will need this training because we are entering a hybridised future. ‘More and more cars will feature battery power and soon enough, electric vehicles will become a common sight at many garages.’ Despite the low uptake in sales, the Vauxhall Ampera boasts an impressive 21.2 per cent market share in Europe. ‘The jump to the Ampera is not as drastic as it is with all-electric cars’, added Rux. ‘If we continue to educate customers about the ease of owning something like an Ampera, we will see the uptake continue. This is just the start of hybrid technology for Opel, there will be plenty more in the future.’
Old-style lines on show STRATSTONE’s Jaguar dealership in London is selling classic models thanks to a tie-in with a restoration firm in Shropshire. E-Types and Mark IIs will be among models supplied by Classic Motor Cars of Bridgnorth. They will sit alongside their modern-day equivalents in the Mayfair dealership.
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DASHBOARD.
Nissan to build spicy Nismo GT-R bit.ly/NismoGTR
Vehicle stolen: My worst nightmare Tale of woe is a stark reminder of van theft. Leon Poultney reports
T
here is nothing quite like the sinking feeling that rises from the pit of ones’ stomach after a vehicle is stolen. A moment of confusion - as the brain rules out any possibility that the vehicle was parked somewhere else - soon makes way for a stab of terror as realisation sets in that the vehicle is in act, gone. I was unlucky enough to experience this cruel sensation this month and it was made even more harrowing because the vehicle in question wasn’t mine. It was the property of Ford Motor Company UK. The motor was a brand new, extremely shiny Ford Transit. The title alone is enough to attract the light fingers of your local car thief but I didn’t think for a minute that something as large as a Transit van would simply disappear without a trace. But disappear it did, from a leafy side road in Essex some time between lunchtime of Wednesday, February 6 and the morning of Friday, February 8. EJ12 AHL was only left unattended for two nights but that was enough time for a sophisticated bunch
to do away with something that weighs nearly twotonnes without anyone raising an eyebrow. The police were fairly nonchalant about the whole affair, with the officer assigned to my case explaining: ‘It doesn’t matter where you park it, they’ll have it off your driveway if they really want it.’ He went on to describe how thieves are now cloning keys, getting inside the Transit and overriding the ECU with new technology and simply driving away. Or, alternatively, they turn up with a flatbed, don a high-viz jacket do their best parking attendant impression and make off with your property. After re-telling our sob story, the owner of the
rental firm revealed that 32 Transit vans had gone missing from the area in the last month, including one of his own that was pinched from a customer’s driveway as he slept. Above all else, everyone affected by the theft was left with high-blood pressure, thinner wallets and a huge workload to catch up on. So, if anyone sees a jet-black Ford Transit driving around please report it to the police. Ford and I would be very grateful.
THE LESSON IS – FIT A TRACKER UNFORTUNATELY this is not unique. These days, thieves have any number of methods to steal vehicles. Luckily, Ford was sympathetic and there were no valuables in the van – but many aren’t so lucky. Vans are a high value target and the equipment inside makes them even more attractive. The lesson is – fit a TRACKER.’ David Wilson, sales and service director for TRACKER
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dashboard.
Aston martin creates 20 jobs bit.ly/Astonjobs
Marshall expands into the south west
MOVING UP
European progression sees new managing director at Honda UK
Acquisitions are all funded from company cash flow
M
arshall, the privately owned dealer group, has acquired the Audi, Volkswagen and Skoda businesses in Devon and Somerset from Silver Street Automotive. The deal covers 10 businesses: three Audi businesses (Exeter, Plymouth and Taunton); three Volkswagen cars businesses (Barnstaple, Bridgwater, Taunton); two Volkswagen commercial vehicles businesses (Barnstaple, Bridgwater); Skoda in Barnstaple and the trade parts specialist business in Exeter. The acquisition takes the number of franchised dealerships to 70. All 324 employees have transferred to Marshall, taking the headcount to 2,300. The combined group’s turnover for 2012 is £927m, with Silver Street accounting for £115m. ‘It is a big acquisition for us as it is a top-100 dealer group,’ Marshall’s chief executive Daksh Gupta told us. ‘We are deepening our relationship with the Volkswagen Group — we are working with
Audi and we’re going to be partnering with Skoda for the first time. We only entered the Volkswagen Group network a year ago – to go from zero to five passenger car and three commercial vehicle in less than a year shows the strength of the relationship. ‘Four years ago we didn’t have a single Kia dealership – we now have three. We didn’t have any Audi dealerships – we now have three – and we didn’t have any Volkswagen, Mercedes or Honda dealerships.’ Gupta added in a press release: ‘Since 2009, our underlying turnover has
HONDA UK has appointed a new managing director – Phil Crossman. Crossman moves from his post of general manager, cars — a position which he held for the past two years — and takes over the top role from Dave Hodgetts, who has become European regional auditor for Honda Motor Europe. Commenting on his new role, Hodgetts said: ‘Since joining Honda (UK), I have particularly enjoyed working with our diverse dealer network in the UK and am proud of the strong working relationships that have been achieved with our dealer partners. ‘The new role will encompass the whole of Honda’s extended European region and will give me a great opportunity to better understand the diversity of these different operations and assess the issues that Honda must tackle in order to be successful in both mature and emerging markets.’ For news of Honda’s latest plans as revealed at the Geneva Motor Show turn to p50
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DASHBOARD.
JCT600 grows in south Yorkshire Gilder Group retains Honda franchises after selling rest of business
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heffield- based Gilder Group has been acquired by JCT600. Gilder Group has a number of car and commercial vehicle dealerships along with two parts depots and a body shop – all of which, bar its Honda franchises, will transfer to JCT600 in a deal worth an ‘undisclosed eight-figure sum’. The group, a ‘pioneer in car retailing’, was formed by William Gilder in 1938 and in 1953 became the first Volkswagen dealership in the UK. The purchase gives JCT600, based in Bradford, a further presence in south Yorkshire – bringing the number of dealerships to 50. JCT600’s workforce increased to 1,800 up from 1,350. ‘This acquisition is another leap forward for us as a group, strengthening our coverage geographically and adding some more strong dealerships,’ said JCT600 chief executive John Tordoff (pictured). ‘We are growing our workforce by a third, adding over 30 per cent to our revenues and taking on
nine new dealerships, making this the biggest deal JCT600 has ever done. In 2009 we acquired York and Hull Audi from Gilder Group and so we know from that experience that we are buying a business with fantastic staff, loyal customers and high standards of care. ‘Garry [Scotting] has built a solid, profitable business since he took control of the Gilder Group in 2002, and one that will dovetail perfectly with our
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existing operations and give us further economies of scale and increased buying power.’ Garry Scotting, CEO of the Gilder Group said: ‘The group will continue to have a presence in Sheffield as we have chosen to retain our three Gilder Honda sites. And, even though I am retiring from the business, I will retain shares in the group and support the Gilder Honda team to grow. ‘The acquisition marks an end of an era for me, one of which I am extremely proud. My first interaction with Volkswagen and Audi came in 1980 at Gordon Lamb. After joining Gilder’s in 1985, I pursued my career with the brands. When I was given control of the group 11 years ago, it was a business opportunity not to be missed.’
JLR announces 1,400 new jobs at British engine plant bit.ly/JLR1500
Around the world
Dealer news from somewhere other than here
GERMANY
Ford dealers across have joined in partnership with the manufacturer and a car sharing company, launching the ‘Ford2Go’ car hire programme. The car sharing scheme is the first of its type in the country – the firm hoping to cash in on the expanding car sharing business.
USA
Suzuki dealers across the US are beginning to wind down their new car operations, as the American arm of the company enters chapter 11 bankruptcy. Dealers across the country will continue to sell used models from the firm, as well as honouring the firm’s seven year, 100,000 mile warranties, but no new Suzukis will be sold in the country.
UAE
A Dubai car dealer can probably lay claim to having the most expensive Bentley in the world for sale – offering a Continental GTC with a diamond-encrusted bonnet. On sale for two million dirham (around £360,000), the Bentley’s particularly unique bodypanel features 101 carats of tiny diamonds covered in 31 layers of paint – an invention by an unnamed Swiss company.
CHINA
Chinese car dealers sold less models in 2012 than the year before, according to Chinese Car Dealer Association figures. The numbers suggest that dealers in China sold on average 901 cars in 2012 – a decrease of nine per cent on 2011’s figure. Car sales across the country are up, however, with 21 million cars expected to be sold this year. It’s thought that expansion in the number of dealers could be causing the slight drop.
INDIA
Indian dealers saw car sales drop by 26 per cent in February 2013 when compared with the year before – the biggest fall in over 12 years – thanks to weakness in the economy and high fuel costs. ‘There is no incentive to buy new cars or replace the older ones,’ said Sugato Sen, deputy director of the Society of Indian Automobile Manufacturers. ‘We expect the slowdown in sales to continue for the larger part of 2013.’
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DASHBOARD.
Manufacturers ‘manipulating’ MPG tests bit.ly/Wjqo8m
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 FEBRUARY 18-22 Nissan revealed its new Note mini-MPV, which is said to offer ‘innovative first-in-segment features’ and will be built at the firm’s Sunderland plant. Volvo revealed a raft of new platform-sharing models at a press event in Sweden – with the new XC90 the first to appear, followed by the new S80 and V70. The Government launched a £37m scheme for electric vehicles – announcing that it will subsidise new charging points across the country. Pendragon group posted a profit rise of 18 per cent – meaning that the 250-plus dealer PLC’s full year profit figure hit £36.4m. Leeds-based dealer group DM Keith acquired a new Skoda franchise – Royce Roberts, based in Hull. ‘More than a quarter’ of potential sales calls are frequently missed by dealers, according to Motors. co.uk’s phone tracking software. Average auction sales values dropped in January, according to the National Association of Motor Auctions – hitting £4,856 against £5,402. Dealers were told to embrace social media or face losing potential sales, as a Motors.co.uk report revealed that just a quarter of dealers on Twitter were replying to sales enquiries.
From top left clockwise, Nissan Note, JLR creates 1,400 jobs, XC60, Veyron
February 25 – March 1 Auto Trader revealed the number of mobile users using the used car trading platform hit 3.5m in January – a year-on-year increase of 60 per cent. Evans Halshaw Hull won the title of ‘Business Centre of the Year’ – rewarded during Citroen’s annual ‘Make Your Mark’ awards. Nissan announced that Nismo, its dedicated global performance road car and motorsport arm, is developing a new, higher-powered road version of the iconic Nissan GT-R. Online used car trading network Autotrade-mail reported a 25 per cent increase in the number of ex-fleet and leasing vehicles offered to its subscribers – up from 2,750 in 2011 to 3,450 last year. American dealer Group 1 Automotive bought Inchcape’s Ford dealerships – based in Bracknell, Guildford, Wokingham and Farnborough. Dacia reported it was to add a new model to its lineup – the Logan MCV – which will slot into the range below the Duster SUV. Aston Martin announced that it will soon be creating 20 new jobs in the UK – based at its Coventry and Gaydon sites – as it sets up to produce the Rapide S. HR Owen is topping the list for the most number of Bugatti Veyrons sold thanks to a saleswoman who has notched up more than £13m of sales.
AMPERA CHALLENGE
Story of the month The biggest hurdle to overcome when selling the Vauxhall Ampera is not the £30,000 asking price but ‘the many myths that surround electric vehicles’, Opel’s Christopher Rux told Car Dealer. Full report, p13
March 4 - 8 Kia dealers could soon have a slick-looking Minirival on their forecourts, it was revealed, as photos of their ‘Provo’ concept were released. JCT600 acquired Gilder Group – a Sheffield-based firm with a number of dealerships under its wing – further expanding the firm’s presence in the north of England. Land Rover began showing off a range of electric Defenders just hours before the Geneva Motor Show – with the firm suggesting that EVs are on the horizon for its range. Scottish dealer group Peoples reported a 26 per cent rise in pre-tax profits – up to £2.03m for the year to July 31, 2013. Jaguar Land Rover announced the creation
of 1,400 new highly skilled engineering and manufacturing jobs, thanks to a new engine manufacturing centre in the Midlands. Used car values were up 13 per cent year on year, according to BCA’s Pulse Report for February, with average used car values staying above £7,000 for the third month in a row.
March 11 - 15 Dealer finance for new cars was used by even more consumers at the beginning of this year, according to the Finance and Leasing Association. Caterham cars gave its well-known dealership in Surrey a good send-off, producing a video of the team doing donuts in the soon to be empty premises. Stratstone’s dealership in ultra-posh Mayfair, London, started selling classic Jaguars, thanks to a tie-in with a restoration firm Classic Motor Cars of Bridgnorth. Searches for Subaru Imprezas skyrocketed during the airing of a Top Gear episode which heavily featured the car, figures from advertising portal Motors.co.uk reported. Inchcape reported pre-tax profits of £252m in 2012 – up from £203m the year before – with turnover worldwide reaching £6.1bn in 2012. [CD] CarDealerMag.co.uk | 21
FINANCE. BLACK BOX
Citroen tempts 19-year olds with free insurance deal CITROEN is handing out free insurance to buyers who pick a special edition C1 model on a personal lease –with a minimum age of just 19. The C1 Connexion – the design and equipment of which was chosen by Facebook users in a bold social media campaign run by Citroen – comes with air conditioning, 14 inch alloy wheels and either black or grey paintwork set off by red door mirrors. Buyers opting for the Connexion on an Elect 4 personal lease can have the C1 for £109 per month with one year’s free insurance – provided that they’re 19 or over. To offer free insurance for such a comparatively low age, Citroen have integrated a telematics box into the Connexion that must be activated prior to the car’s handover. Data is sent from the ‘black box’ to Citroen’s insurance company, who may cancel the policy if the driver is deemed to be acting dangerously. Sister company Peugeot’s ‘Just Add Fuel’ option for the 107 requires drivers to be 21 years of age, for example, while Vauxhall impose identical restrictions for the Corsa.
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FLA: Dealer finance is the top choice for consumers to fund their new cars Number of buyers opting for finance deals is on the rise, says new report
D
ealer finance for new cars was used by even more consumers at the beginning of this year, according to the Finance and Leasing Association (FLA). 43,175 new cars were bought by consumers on dealer finance in January 2013, the FLA’s figures report, up 28 per cent on the year before. The value of advances also rose – up 32 per cent, now £613m – suggesting that the average value of cars financed also increased slightly. Used car finance also saw a rise, with six per cent more purchased through dealer facilities than in January 2012 – reaching the figure of 70,905 cars. Value of advances also increased to £658m in total, some 12 per cent higher than the year before. The growth continues the trend set last year, as we reported last month – with figures for 2012 reporting growth across the market. 27 per cent more new cars were bought on finance by consumers last year, with value of
advances up 36 per cent. Cars bought on finance for business saw a boost in January too – both for new and used models. The number of new cars was up 12 per cent, now 33,215, while used sales increased by 20 per cent – now 4,712. The rise, says the FLA, is another reminder that the consumer credit market requires regulation that supports both the supply and diversity of lenders.
‘As a whole, the consumer credit market contributes £260bn to the UK economy annually,’ said general of the FLA, Stephen Sklaroff. ‘Millions of people rely on it for everything from the car on their driveway to the sofa they sit on each evening. Thousands of motor dealers and the lenders which provide the credit need a realistic timeframe in which to prepare for the new regulatory regime.’
Vauxhall targets new customers with Mokka and Adam deals VAUXHALL has announced new finance packages to complement its newly launched Adam and Mokka models. The new PCP packages offer ‘nil-andup’ deposits over short terms, with Vauxhall suggesting that the scheme may suit buyers who ‘want to change their model more regularly’, and allow customers to take advantage of new
‘models, technology and safety features.’ The Adam is available from £159 per month over 36 months on the scheme, with a deposit of £1514. The Mokka, meanwhile, comes in at £209 per month over the same period with a £4,530 deposit. In addition, Vauxhall are shaving money off optional extras when
bought on PCP. A technical pack on the Adam for example, normally £600, is available for £10 per month over 36 months with a £47 deposit – bringing the total cost to £407. Vauxhall says customers can choose anything between 24 and 36 months for the term of their lease, with an interest rate of 2.9 per cent APR representative.
..in association with
DEALFINDER. Latest finance deals on SUPERMINIS FORD FIESTA THE Fiesta has long been a staple model in Britain, and one of Ford’s longest-standing nameplates. It’s fair to say that for much of its life it has remained at the top of the supermini class, too, and that’s something Ford is keen to keep up with the newly refreshed model. Thankfully for buyers, the new model is just as cheap to buy and own as the old one – and comes with additional equipment too. Buyers can have a 1.25-litre, 80bhp Zetec model for £139 per month on a three year personal contract hire plan – provided they don’t stray over the 9,000 per year mileage
limit – after paying an advance rental of £3,969. Those opting for the deal will be rewarded, though, as Ford are offering a free upgrade to their SYNC system.
PEUGEOT 208 THE 208 is the car Peugeot hopes will rekindle some of the love small car buyers once held for the firm. But judging by February 2013’s SMMT statistics, the 208 is already doing wonders for
Peugeot – coming seventh in the top ten best selling cars chart. The 208 might have grown up since its predecessors, but Peugeot are still keen to get people into the supermini – offering competitive deals to entice buyers. Available on the firm’s ‘Just add fuel’ package – where three years of insurance, roadside assistance, servicing and tax are included with the car – buyers can have a 208 three-door 1.0-litre model in ‘Access’ trim for £159 per month. £2,026 is payable as an initial rental, while there’s an optional final payment of £4,510.
VOLKSWAGEN POLO BUYERS looking for that extra prestige edge would do well to take a look at the Polo. With its well-loved German badge and excellent built quality, it’s hard to fault the Golf’s little brother for either refinement or snob value. Volkswagen aren’t resting on their laurels when it comes to enticing buyers into showrooms, though – offering some competitive deals on the Polo. One deal puts the Polo Match 1.2 in three-door specification at
£145 per month for 36 months, preceded by a customer deposit of £2,309 and a ‘deposit contribution’ of £1,000. After three years, the customer can hand over
Meldrum
time is money
Open up your market
O
ver the past few months we’ve tested some of the misconceptions that surround the Non-Prime market and which may have prevented some dealers from servicing the many car buyers who exist beyond the reach of their current business model. These misconceptions have been answered and all were found to be flawed, which means the Non-Prime market could now be opening up to every car dealer in the UK… franchised, non-franchised, independents, car supermarkets, family run businesses and larger groups. I have campaigned long and hard for car dealers to look into increasing their F&I profits by diversifying into Non-Prime finance because I believe that there are a great many that would benefit financially. We’ve also taken the time to assess why some car dealers who previously tried to service this market failed — we argued that it’s because they partnered with the wrong lender and were inevitably let down because these lenders were less supportive or didn’t have the same shrewd insight into the unique needs of car buyers in the Non-Prime market as we do. We’ll help you redefine how you feel about servicing the Non-Prime market in a way that none of the Prime lenders is able to do. The only real downside is that there are some changes needed for the operation to be successful, but rest assured all the changes will be carefully measured and full control stays with the dealers themselves. First Response staff will be on hand to offer assistance and advice at every step so that you will have ready access to the experience and expertise that we’ve gained in over 10 years in this industry. There was, and still is, an open invitation for you to partner with First Response and we’ll happily welcome the opportunity to help you grow your business.
‘Rest assured full control stays with the dealers.’
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
CarDealerMag.co.uk | 23
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big mike.
All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike
I drove my first car everywhere — in the kitchen, up the stairs
Y
ou never forget your first car. Mine was a Jaguar Mk 2, resplendent in British Racing Green. The paintwork was a bit tired, but I loved that car and drove it everywhere – around the kitchen floor, up the stair banister, through my sandpit. It was probably the catalyst that got me started on the ‘car thing’ in the first place… No doubt you remember yours, too. Mine was by Dinky – it lacked the finesse of the more advanced Corgi models, which came with suspension and windows, but it was my first of many Jaguars (and by far the most reliable of them all), and somewhere in the loft I still have it. The reason I mention this is because I was talking to a bloke the other day who came onto my lot to look at a Volvo V70 estate, that rare breed of used car that well and truly sells itself (and yes, he bought it). Meeting people from all walks of life is one of the more interesting parts of this job, and being a jovial sort of fellow I like to make small talk where I can with the nicer (and sadly, in my experience, rarer type of) human beings, of which this chap was one. His job, believe it or not, was as a toy car designer. His entire life involved going round to car shows, dealerships and enthusiasts’ houses with a large drawing board, some draughtsman’s pencils, a top quality camera and a tape measure (hence the need for the Volvo) to take measurements and photographs, which he’d then scale down into something which could be cast and assembled as a toy, or more often than not these days, a collectable item - after all, the appeal of a toy car to today’s generation of Facebook and twitter-savvy kids is somewhat geeky, or so my eleven year old nephew told me when I bought him a Hot Wheels box set for his last birthday, the ungrateful little scrote. But Volvo man does what he does for the same reason that I do what I do – he loves cars, and it’s a great way of getting close to the ones you’d never own yourself, but would love to get to know better, even if it does involve braving the garages of a few beardy weirdies to achieve his aim. What I didn’t realise is this – it’s big business. There are huge sums of money involved, and the car manufacturers that have a decent heritage often make more money out of licenced merchandise then
Big Mike Our man on the inside spills the beans on the car business...
they do out of the cars themselves. After all, a toy car costs pennies to produce, and doesn’t have to meet the same stringent safety, design and emissions regulations as a real one. According to my punter, General Motors has made more money over the years out of toy Chevrolet Corvettes than it has out of real ones, but that’ll come as no surprise when you learn that GM takes a licence fee (a few pennies or cents) for each scaled-down Corvette sold across the world. And there are millions sold worldwide every year. Then, of course, there are all the Camaros, Impalas and El Caminos to take into account… If toys were a part of the real world sales figures, the Corvette would probably be the best-selling car in the world, and in many ways it’s a shame that they aren’t, as a ‘Vette is a whole lot sexier than a Toyota Corolla (which, incidentally,
‘I’d smoke around in a battered green Jaguar Mk 2 which would make me very cool indeed. ’ appears to be missing from the display shelves in my local Toys R Us). Imagine what else would be in that best-sellers list if you allow fantasy to transcend reality for a few moments? The humble Mini, as in the proper one, complete with rusty sills and excessive oil consumption, would doubtless be in there (a fair few of them in Mr Bean green with padlocks on the doors, or liveried in full Union Jack splendour), there’d be a Ferrari Testarossa with chrome alloys on every street corner and car dealers across the land would be competing against each other in the small ads to shift gold Aston Martin DB5s with built-in ejector seats, most of which would have a worn out ejector spring and a brown plastic dude in the passenger seat. Life would be fun. And to round it off, I’d be able to smoke around in a battered green Jaguar Mk 2 with half of its paint missing, which - in true Withnail and I style - would make me very cool indeed.
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 | 25
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www.tradeouts.com $BMM UPEBZ GPS ZPVS GSFF USJBM 5SBEFPVUT JT VTFE CZ PWFS 6, DBS EFBMFST
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bAGGOTT.
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How one picture paints a thousand angry Italian expletives
T
here are a number of things I like about the picture below. Firstly, I like the fact the security guard looks like he’s straight out of the mafia. Very fitting. Secondly, I like the fact he’s not walking, he’s actually broken into a fast trot to get to the cameraman. I also like the fact he’s clench-fisted and looks like he’s about to windmill in with a Rocky-style hammer blow to the snapper’s left temple. And then there’s the people in the background — two of whom look like they’re from Interpol — all appearing to be equally annoyed that someone is pointing an iPhone at their still-to-be dressed motor show stand. If a picture paints a thousand words, it’s clear most of these would be sweary Italian expletives. But the best bit about the whole snap isn’t what’s in front of it — that’s just the worst-named Ferrari in history under a snuggly cashmere blanket. No, what’s really brilliant about the snap is who’s behind the camera. Step forward and take a bow Mr Charles Morgan Esq. Yes, THAT Charles Morgan, boss of the British sports car manufacturer based in sleepy Malvern. The picture of a still-being-made-to-look posh Ferrari stand appeared on the medium that is Twitter not on press day of the Geneva Motor Show, but the day before it when the world’s car manufacturers were busy polishing and buffing their creations for the world’s media. Mr M was obviously bored watching his minions and instead decided to become an accidental secret spy shot snapper — and became an instant legend in the eyes of car fans the world over. For the course of around an hour, Morgan revealed the Aston Martin Shooting Brake concept, a bright yellow Mercedes SLS E-Cell (as two Germans tried quickly to whip the cover back on), the muchanticipated Alfa Romeo 4C (albeit from a little far away) — and then his coup de grace, his shot of the Ferrari stand. Which, in actual fact didn’t show very much, apart from confirming the new hyper Fezza would be making an appearance. I can’t believe Morgan was the most popular chap at the show, but then who could stop him? He’d paid to have his cars there and if he wanted to break a few embargoes then that was up to him. It wasn’t like he was going to be stripped of the right to drive Ferraris was it? Morgan’s brilliant work did get me thinking, though, as I wondered around the packed,
James Baggott *EDITOR’S NOTE: LAST MONTH WASN’T A ONE OFF... SADLY*
sweaty and smelly halls of the Geneva show: Is it really worth being so secretive? Ferrari’s desire to control absolutely every part of the media smacks of a company that’s worried about its products. Why the paranoia? I’d understand if your cars were dogs to drive and caught fire (okay, ignore that bit), but quite honestly Ferrari has never appeared to be more on top of its game than it is now. The 458 is sublime — in fact it’s one of the best things to come out of Maranello ever — okay, the FF looks like a Stretched AMC Pacer out of Wayne’s World (minus the awesome liquorice dispenser), but by all accounts it’s pretty good. We wouldn’t know as we’re not allowed near it… Oh, and the California is perfect for its target audience — bald, middle-aged men with small genitalia. Which means Ferrari can’t make enough of them. So why, when you’re on such a roll — the manufacturer was on course for a record
‘Ferrari’s desire to control every part of the media smacks of paranoia.’ year of profits in 2012 — would they worry so much? I’d argue that keeping everything secret until press day of a motor show is actually the worst way to do it. Yes, you cause a bit of a stir when you whip the covers off, but because it’s a new Ferrari, no one can get near it. The pictures that emerge are mostly of Italian journalists’ arms and other people’s cameras as the bun fight is worse than Greggs giving out free pasties in Portsmouth. Far better to take the approach of a few other manufacturers and roll out pictures of your show star a few days before the event. That way you can have the lion’s share of the media, you can choose when the details are released and, most importantly, can ensure the quality of the pictures is absolutely top-notch. Nissan did it with the new Fiesta-rivalling Note, and Toyota did it with the stunning FT86 convertible. Both had huge amounts of coverage the week before the show — and most of that can be attributed to the fact they went early. Why then does Ferrari want its piece de resistance mostly photographed with other people’s heads obscuring its curves? Doesn’t make sense does it? Perhaps it’s an Italian thing… like bunga bunga parties.
Who is James Baggott?
He’s the founder of Car Dealer Magazine and managing director of parent company @BlackballMedia, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us. CarDealerMag.co.uk | 27
DASHBOARD.
Probably the best dealerships in the world!
Dealerships come in many shapes and sizes. Here James Batchelor explores the most amazing showrooms around the world
McLaren London
June 21, 2011 saw the official opening of the very first McLaren dealership in the world. Based at the Hyde Park One development, Knightsbridge, and run by the Jardine Group, the showroom reflects the MP412C it sells – clean, simple, expensive but not overly showy. To a certain extent, it works – but the inclusion of a Formula One car as a visual symbol of McLaren’s racing heritage smacks a little of cheap marketing to us. It’s one of 35 worldwide.
Abu Dhabi Motors, BMW Group Abu Dhabi
This is the world’s largest BMW Group dealership. It stocks BMW, Mini, RollsRoyce and BMW motorbikes, and cost 62m euros to build. And it took three years to construct and there are 450 staff members. More than 70 cars are on permanent display; there’s a cinema; an F1 simulator; children’s play and a cafe. ��| CarDealerMag.co.uk
Autostadt, Volkswagen Germany
This is a dealership like no other. Part visitor attracton, part showroom, the Autostadt is adjacent to the VW factory in Wolfsburg. Visitors can go to the museum and have lunch, while customers can pick up their new car straight off the production line. Two towers are
Dacia to add fourth model to UK line-up bit.ly/newDacia
Audi
Sydney With a footprint of 172,000 square feet, Audi Lighthouse Terminal Sydney is vast. There are three showroom floors, 20 service bays and the facade is 26m high. When opened in 2009, it was the largest Audi centre of its type, boasting such facilities as a restaurant, children’s play area, a lifestyle shop, an aftersales centre and a business centre. It trades as Audi Centre Sydney but due to its size, it’s also home to Audi Australia.
DS Store Shanghai
China is a massive growth market for Citroen, and even more so for their premium DS line. As such, the French firm decided to create the ‘DS Store’ in Shanghai last year. It’s totally independent from any other Citroen dealer and just sells DS cars. The lifestyle store measures 18,000 square meters was the first of 25 stores in China to be setup in 2012.
C_42, Citroen
Champs-Elysees C_42 is Citroen’s international showcase, and fittingly is located on one of the world’s most prestigious avenues, the ChampsElysees in Paris. It was opened in its current form in 2007 as a place for the public to ‘meet and share with the brand’. Visitors get up to date with the brand thanks to theme-based displays highlighting the current ‘thing’ with Citroen cars, their World Rally Championship successes or the latest tech. each home to 400 customer-ready cars and are connected to the factory by a 700-metre underground tunnel. Clever machines store the cars in the towers so they are ready for collection, and once collected customers drive away in cars with ‘0’ on the odometres.
Alain Class Motors
Dubai
Dubai is one of many places around the world where there’s a sizeable number of people who can be called ‘super rich’. Owned by Abdullah Al Ketbi, Alain Class caters for these types – his showroom has 150 cars in it. In total it’s worth £80m. The showroom has everything – from Veyrons to one-off Rolls-Royce Phantoms by Pininfarina.
Land Rover Manhattan
This is the world’s most successful Land Rover dealership thanks to New York being the world’s biggest metropolitan area for the swanky Range Rover. The dealership is the go-to place for celebs wanting a posh British 4x4 and to cater to their every whim, there’s even an off-road course on the roof. Naturally, this is as off-road as their cars will ever go, but it’s still impressive. CarDealerMag.co.uk | 29
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Car Dealer Club lawyers Lawgistics answer dealers’ legal questions. Join for £39.99 a year to get advice like this when you need it
Q
I had a call from a potential customer who had seen a VW Golf on my website which he said he was interested in. We had a long discussion and he said he wanted it — he had been looking for that model for a while. He said he couldn’t get down to me until the following morning but wanted to put a deposit down. I suggested he wait until he saw it because I know there can be drawbacks with distance selling law. He said he wanted to clinch the deal because it was a bargain. I took his card details over the phone. The next morning he rang me early and apologised that he couldn’t get over because his wife had been taken ill. He insisted on making the final payment and asked if I would drop the car at the local railway station where his cousin would pick it up. I agreed and thought nothing further of it. A few weeks’ later the credit card company wrote saying they were going to apply for a charge back from my account because the card holder had noticed the money for the car going
out of his account but he was not the buyer. Someone had cloned or stolen his card. The police don’t give me high chances of seeing the car again. How can I avoid this problem? MN, Essex
A
The type of fraud you describe is one of the easiest to get away with. It is called a CNP (Cardholder Not Present) transaction. The transaction is high risk because you don’t meet the card holder or see the card both of which are crucial to the validation of the transaction. One way to avoid it is not to let it happen. If the risk is too high, make sure the customer visits you and puts it through your terminal as a Chip and Pin transaction. There is nothing wrong with requiring additional identity checks also to confirm addresses etc. There are also warning signs which might make you suspicious. n Urgent delivery. As in this case the rogue wanted to get the car quickly. Their concern is that the cardholder might check his/her account and see the bad transaction. They want to be gone as soon as possible. n Anonymous delivery address. If you are asked to deliver the vehicle ensure it goes to the
Q
My vehicles are in the open but prices are on the outside for better visibility. Yesterday a chap wanted to buy a car ‘for the price shown on the windscreen’ and put down £999. The intended price of £9999 was no longer indicated as the card with the last ‘9’ had blown away. The customer says I have to sell the car at the price advertised, especially as I had agreed to sell it ‘for the price on the windscreen’ even though I was unaware the last digit was not there. Do I have to sell it to him for £999 and take a £9k hit? MM, Leeds
A
No. Whilst the elements of ‘offer’, ‘acceptance’ and legal ‘consideration’ appear to be in place these do not alone constitute a valid contract. The absence of legal ‘intention’ and the presence of ‘mistake’ (this has a particular meaning in contract law) mean this trader does not have to sell the car at the, albeit advertised, lower price. cardholder’s address. Although not fool proof, if you have CCTV at your site it can deter people like ‘the cousin’ visiting you there. n Hesitation by the customer. Be wary if the person you are dealing with is hesitant about name address, postcode etc. n Lack of interest in the vehicle. Most genuine car buyers are meticulous about the specification of the vehicle they are buying. Get a bit chatty about what is drawing them to the particular vehicle. Getting an authorisation does not mean you are guaranteed payment. All it means is that the card hasn’t been reported lost or stolen and there are sufficient funds to honour the transaction. Make your staff aware of these dangers.
Paying for their tools can be tough for apprentices Q Can we set up a system, whereby new starters, or apprentices, can purchase tools and equipment needed for their training through us so they can get them at trade price? If so, can we recover this money from the employee every month by deducting an agreed amount from their wages? GM, York It is usual for an apprentice starting work to need help to purchase the tools of their trade.
A
Let Lawgistics help you...
You can purchase these tools on the employee’s behalf. With regards to recovering the sums from the employee, you must put an agreement in place that the employee understands and agrees to the amount being deducted. This will be an authorised deduction from wages as per Section 13 and 14 of the Employment Rights Act 1996. Such provision will also apply to any clothing or uniform that an employee
Q& A
may require when starting work with you. However, you must be mindful of the National Minimum Wage Rate. Any deductions made for the benefit of the employee’s employment will have the effect of decreasing the employee’s hourly rate. You must make sure that, after these deductions, you are still paying the correct minimum wage rate for the employee’s age or employment category. If you only pay minimum wage, you will not be able to deduct sums of this nature.
Lawgistics is 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 CarDealerMag.co.uk | 31
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forecourt.
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Bentley GT Speed
the knowledge
Bentley’s new model becomes its fastest production car ever. James Batchelor tested it on a snowy Thruxton racing circuit What is it?
What’s the spec like?
Bentley’s new range-topping model has been created due to customer demand. It would seem a number of people with lots of ready cash to flash have asked the Crewe-based firm for something with more shove and drama. And this is it – the fastest production Bentley ever.
Speed owners get the Mulliner Driving Specification as standard, which includes such treats as diamond-quilted leather, a knurled gearknob and drilled aluminium pedals. The Speed costs £151k – that’s around £15k more than the standard W12 Continental GT, and that’s before the customer has even looked at the options list. Our test car retailed at a steep £173k!
What’s under the bonnet? It’s the same engine that’s found in the standard Continental GT W12, but this has been vigorously reworked to throw out 616bhp. The hand-built, twin-turbocharged lump is mated to a four-wheel-drive system and can top 205mph. There’s a new eight-speed ZF gearbox to make the posh rocket as enjoyable and economical to drive. Combined mpg is a surprising 19.5 (the Continental GT V8 returns 26.7mpg; the Continental GT W12 – the same 19.5mpg) and CO2 emissions are 338g/km.
What’s it like to drive? It’s glorious. GT Speeds also have a new free-breathing exhaust which, when Sport mode is selected, turns the normally serene Bentley into a hot rod. The noise emitted from the exhaust is biblical and on overrun, pops and crackles. The steering is heavy and direct, while the brake pedal has a pleasing amount of feel through it. The power is unrelenting and spectacularly linear, but it does feel nose-heavy during fast cornering.
Also, the ride is stiff even in the most comfortable setting, and on some roads the car sometimes feels fidgety. Happily though, the interior is as cosseting as you’d expect a modern Bentley to be, blending technology and heritage in an impressive way.
What do the press think of it?
target buyers: GT owners after the ultimate Bentley. And the rich.
the rivals:
Autocar said: ‘While you can’t blame the company for trying to give its customers what they want, we’d be much more interested in seeing a Speed or Supersports version of the V8’.
What do we think of it? The GT Speed only exists because a number of wealthy owners want the very best Bentley regardless of cost. To us mere mortals, the £26k cheaper Continental GT V8 ticks all the right boxes, but we all know that the Speed will be hugely popular just because it is the fastest.
INSIDE
Model: Bentley Continental GT Speed Price: £173,325 (as tested) Engine: 6.0-litre, W12 Power: 616bhp, 800Nm Max speed: 205mph 0-60mph: 4.0s MPG (comb’d): 19.5 Emissions: 338g/km Residual values (three years): 41 per cent
Ferrari FF, Aston Martin Rapide, Mercedes CL 63 AMG
Key Selling Points: 1. Prodigious power and torque from 6.0-litre W12. 2. Speed additions make the car even more special. 3. GT Speed strikes a good balance between luxury and hairy-chested sportiness.
Deal Clincher:
It’s the fastest Bentley to have ever come out of Crewe. Searches supplied by Monthly AutoTrader.co.uk searches: 94,767
STYLING
Bentley Continental GTs are always special on the inside. Speed adds glamour though with special equipment.
Speed is subtly different on the outside to lesser GTs. It’s still imposing, though thanks to tinted grille and rifled exhausts.
ENGINE
Reworked W12 tops 205mph. At that speed, 4,000-litres of air per second pass through the radiator! CarDealerMag.co.uk | 33
forecourt.
Porsche special PanameraGTS
Carrera 4S 911s with 4WD are popular with sports car fans. But is the new one any good? James Baggott reports
Is the racy new GTS the best Panamera around? James Baggott find out What is it? It’s Porsche’s executive-transport with added fizzbang-wallop. The GTS sits below the Turbo, and is slightly harder, sportier and more involving.
What’s under the bonnet? An utterly brilliant 4.8-litre lump from the Panamera S – with an extra 30bhp to 424bhp.
What’s the spec like? Suitably impressive but the options are expensive. It costs £91,239 and has leather, climate and added racy bits.
What’s it like to drive? The GTS is quite possibly the best Panamera available. It’s rapid, incredibly entertaining and engaging to drive and sounds fiery.
What DO THE PRESS THINK? Top Gear said: ‘More drama, more fun, more of the time. If you have to have a Panamera, this is the one.’
What DO WE THINK? For someone who likes involvement in their daily drive, but comfort to boot, the GTS ticks a lot of boxes. The looks won’t float everyone’s boat, but they certainly grow on you. The options on our test car cost more than three Dacia Sanderos!
the knowledge Model: Porsche Panamera GTS Price: £106,398 (as tested) Engine: 4.8-litre, V8 Power: 430bhp, 520Nm Max speed: 179mph 0-60mph: 4.3s MPG (comb’d): 25.9 Emissions: 256g/km Residual values (three years): 41 pc Searches supplied by Monthly AutoTrader.co.uk searches: 65,336 ��| CarDealerMag.co.uk
What is it?
What’s the spec like?
These are exciting times for Porsche. Sales were up 25 per cent in the UK last year to 7,998 units and the maker’s constant launch programme is paying dividends. Last year, it launched a new Boxster, GTS versions of the Cayenne and Panamera, a Cayenne S Diesel and, at the latter part of the year, this: The four-wheel drive 911. All-wheel drive versions of the 911 started with the awesome 959, back in 1986, and since then they’ve become a staple of the 911 buyers’ diet.
It’s pretty decent, but buyers will pay through the nose for a large chunk of it. Standard equipment on the S includes 20-inch alloys, bi-xenon headlights, leather, seven-inch touch screen with sat nav and a Porsche vehicle tracking system. Our test car had optional front and rear parking sensors (£637), Bluetooth (£558) and a BOSE stereo upgrade (£963). Carrera 4S prices start at £87,959.
What’s under the bonnet? You can pick from the same units found in the C2. There’s a 3.4-litre, 347bhp, 390Nm, unit in the standard model. But our test car was in S guise, which means 3.8-litres, 397bhp, 440Nm of torque and a 0-60mph time of just 4.5 seconds. There’s also a PDK automatic gearbox option.
ENGINE
C4S has the same engines as the C2S – so there’s the glorious 3.4 and mighty 3.8. Manual and auto’, too.
What’s it like to drive? Really, for most drivers, the Carrera 2 will be more than enough. However, for car park bragging rights, the Carrera 4 certainly has added cache. In both standard and S guise it makes a brilliant noise, especially with the sports exhaust button depressed. It handles
in association with
the knowledge
superbly, and that much-maligned steering is hard to fault.
What do the press think of it? The Independent said: ‘It’s your best friend on a wet, windy night. It’s brilliant. But does it take away from the 911’s essence? For us, it does; it feels too “normal”.’
What do we think of it? With options, the C4S we drove was £94,221. Roll back the years and in 996 guise the 911 was seen to be the affordable supercar with cars starting at under £60,000. Yes, this is a much better model, but it’s also a lot more expensive. Porsche told us that C4 models represent nearly 40 per cent of 911 sales, but to be honest, it’s hard to justify the additional £4,856 for the all-wheel drive version.
CABIN
It’s a smart place to be sitting in, but there some things should be standard. Shouldn’t put off potential buyers, though.
Model: Porsche 911 Carrera 4S Price: £94,221 (as tested) Engine: 3.8-litre, petrol Power: 397bhp, 440Nm Max speed: 189mph 0-60mph: 4.3s MPG (comb’d): 29.7 Emissions: 224g/km Residual values (three years): 52 per cent
target buyers:
Current C4S drivers and first time 911 owners wanting the security of four-wheel-drive.
the rivals: Audi R8, Nissan GT-R, Range Rover Sport
Key Selling Points: 1. C4S adds subtle styling features – which look great. 2. Both PDK auto’ and manual are impressive. 3. High levels of build quality.
Deal Clincher: Takes all of the new 911’s strong points but adds the reassurance of four-wheel-drive Searches supplied by Monthly AutoTrader.co.uk searches: 448,981
CayenneGTS
Porsche’s off-roader now comes in GTS guise, too. James Baggott tries it What is it? It’s a Cayenne but one that’s had a dose of steroids and some glitter. Slotting into the range between the S and the Turbo, the GTS is harder.
What’s under the bonnet? A rather raucous 4.8-litre V8 that’s been uprated from 394bhp to 414bhp and boasts 515Nm of torque. It’ll hit 60mph in 5.7s and top 162mph.
What’s the spec like? It’s good. GTS buyers get leather and alcantara, climate controland parking sensors. GTS costs £67,147, but that’s before options...
What’s it like to drive? Although it’s incredibly quick and sounds tremendous, it can feel on edge, twitchy even – perhaps the added sharpness has given it a little too much bite.
What DO THE PRESS THINK? Auto Express said: ‘Without doubt the Cayenne GTS is one of the best-driving SUVs in the world. It handles brilliantly and sounds fantastic’.
What DO THE PRESS THINK? We like the GTS treatment given to most Porsches – the Panamera GTS we tried worked fantastically well. However, the off-roader doesn’t feel quite right. It’s quick but feels like it’s pretending to be something that it’s not.
the knowledge
STYLING
To the uninitiated, the C4S looks the same as the C2S. But the experts will recognise the rear red light bar and the wider dimensions.
Model: Porsche Cayenne GTS Price: £67,147 Engine: 4.8-litre, petrol Power: 414bhp, 515Nm Max speed: 162mph 0-60mph: 5.7s MPG (comb’d): 26.4 Emissions: 251g/km Residual values (three years): 46 per cent Searches supplied by Monthly AutoTrader.co.uk searches: 257,673 CarDealerMag.co.uk | 35
forecourt. CABIN
UNDER THE BONNET
Adam’s interior can be personalised to amazing levels. Adam is the only car this side of a Roll-Royce to have a starry roof.
There’s only two engines – and none of them are particularly revolutionary. Basic 1.2 is the best.
LOOKS
The Adam’s styling as styling poached from a number of cars. There’s Fiat 500 there... Citroen DS3 there... Mini over there...
Vauxhall Adam
The griffin-badged firm has finally entered the small premium sector with the Adam. Leon Poultney reports What is it?
What’s the spec like?
This is Vauxhall’s uncharacteristically fashionable foray into trendy transport. The small city car can be personalised with a brain-boggling four billion trim combinations and the firm hopes to cash in on the lucrative market currently bossed by the likes of the Fiat 500, Mini and upmarket Audi A1. Oh, it’s also the first Vauxhall to defy the everything-ends-with-theletter-’a’ naming convention.
Pretty good, really. Even the most basic models come with air conditioning, single slot CD sound system with Aux in and USB plus bags of standard safety equipment. Customers will be spending hours navigating the options list as everything from front bonnet bars, mirror caps and interior foils can be swapped and changed but surprisingly, most of these options are fairly inexpensive. For example, a set of coloured “blades” for the alloy wheels are just £50 from your local dealer. Adam prices range from £11,255 to £14,295.
What’s under the bonnet? Only two petrol engines will be available when the Adam hits showrooms in March and they both sup petrol. The entry level 1.2 unit produces 68bhp and a 1.4 will be offered in two states of tune: An 84bhp unit and one that produces 96bhp. All engines are mated to a slick five-speed gearbox and even the most powerful coughs up 119g/km of nasty CO2 when the stop/start option box is ticked. It’s 129g CO2/km if customers don’t. ��| CarDealerMag.co.uk
What’s it like to drive? A bit of a mixed bag, to be honest. The 84bhp, 1.4 Adam in ‘Slam’ trim is definitely the sportiest looking model but the 17 and 18-inch alloys that come part of the package mean it rides on the ‘Sports’ chassis and suspension set-up. The ride is just too crashy to justify ticking this option box. The larger engine is also a little
pointless, as the 1.2 pretty much matches it for performance at city speeds. Customers would be better off sticking with this one.
What do the press think of it? Auto Express were impressed, saying: ‘The Adam’s handling isn’t quite up to the Mini’s and Fiat’s TwinAir engine is much better, but in almost every other respect Vauxhall has got it spot-on’.
What do we think of it? Vauxhall predict they will only sell around 10,000 Adams in the first year but we think it will be more. For all of its annoying quirkiness and migraineinducing number of specifications, it’s actually a good looking, well made city car. It definitely doesn’t offer the sort of engaging driving experience a Fiat 500 or Mini would and it’s absolutely tiny in the back but the style-savvy customer probably doesn’t care about that. The Adam is a welcome addition to this sector.
the knowledge Model: Vauxhall Adam 1.2 Jam Price: £11,550 (as tested) Engine: 1.2 litre petrol Power: 68bhp, 115Nm Max speed: 103mph 0-60mph: 14.7s MPG (comb’d): 56.5mpg Emissions: 118g/km Residual values (three years): 47 per cent
target buyers: Style conscious youngsters with money burning a hole in their pocket.
the rivals: Mini Cooper, Citroen DS3, Fiat 500, Audi A1
Key Selling Points: 1. Style – Adam joins Mini and Citroen DS3 to top of the class in the style stakes. 2. Adam is environmentallyfriendly. 3. It’s a step up in the quality stakes – it’s well made.
Deal Clincher:
Personalistion – there are four billion-plus combinations Searches supplied by Monthly AutoTrader.co.uk searches: 3,878
in association with the knowledge Model: SsangYong Korando Sports EXT Auto Price: £18,999 (ex. VAT) Engine: 2.0-litre, turbo diesel Power: 1 53bhp, 360Nm Max speed: 106mph 0-60mph: n /a MPG (comb’d): 3 5.3 Emissions: 212g/km Residual values (three years): 33 per cent
target buyers:
Builders and farmers – or anyone who should need a rugged pick-up
the rivals: Mitsubishi L200, Nissan Navara, Toyota Hilux
Key Selling Points: 1. Car-like interior. 2. Good levels of standard equipment across all models. 3. Coil-sprung rear suspension means a comfortable ride.
Deal Clincher:
Five-year limitless warranty makes this car tempting Searches supplied by Monthly AutoTrader.co.uk searches: 7,680
SsangYong Korando Sports Hot on the heels of the Korando SUV, SsangYong is now targeting the pick-up sector. James Batchelor has driven it What is it? It may be called Korando but it has little to do with the Giugiaro-designed SUV. It’s a tough pick-up designed to win sales from the established Mitsubishi L200, Nissan Navara and Toyota Hilux.
What’S UNDER THE BONNET? It’s SsangYong’s own 2.0-litre diesel, reworked to give more low-down torque. It packs 153bhp and can haul a 2,300kg trailer if needed.
What’S THE SPEC LIKE?
What’S IT LIKE TO DRIVE?
What DO THE PRESS THINK?
The Sports is the only pick-up in its class to have coil suspension at the rear – and it shows. On road manners are good as is ride comfort. The experience is only really spoilt by lifeless steering – but it’s not a huge gripe. Overall, the driving experience is more than satisfactory, and easily a match for the class’s best. The same can be said about the interior – it feels more car like than its rivals, but is slightly let down by hard plastics.
Autocar concluded: ‘The Korando Sports represents excellent value for what is ultimately a well equipped and practical pickup,’ while Auto Express said: ‘The Korando Sports is rugged and capable, and offers a level of sophistication unheard of at this price.’
It’s pretty good. As standard, Korando Sports SX versions get manual air con, a leather-wrapped steering wheel and remote central locking. Top-drawer EXT models gain 18-inch alloys, leather and parking sensors. Korando Sports start at £15,291 (excluding VAT) and rise to £18,999 (again, excluding VAT).
Mitsubishi Outlander
WHAT DO WE THINK? In a sector where rugged build quality at an affordable price is everything, the Korean pick-up is a worthy contender. If customers have driven an old SsangYong but not this new car, they would be advised to drive it. The Sports is a big step-up from previous SsangYongs, and while there are a few negative points, the car’s affordable prices – it’s roughly 20 per cent cheaper than its major competitors – and five-year warranty means the Korando Sports is a very decent offering. It deserves to do well.
The Outlander has hit UK dealers and aims to be a strong-seller for the Japanese firm. James Batchelor tries it for size What is it?
radio and a powered tailgate
Along with its Mirage city car, the Outlander forms part of Mitsubishi’s push to win new customers in 2013. The Outlander is their SUV offering.
What’S IT LIKE TO DRIVE?
What’S UNDER THE BONNET? There’s only one – a 2.2-litre diesel engine with four-wheel-drive. It packs 147bhp and emits between 138 and 153 g/km of CO2. It’ll also crack 60mph in 7.7 seconds. With mpg figures of between 48.7 and 53.3 making it one of the most fuel-efficient SUVs on the market
What’S THE SPEC LIKE? It’s very good value. The entry-level GX2 six-speed manual at £23,699 comes with automatic lights, air conditioning, City Crash Provision and Hill Start Assist. Meanwhile the range-topping GX5 auto at £33,999 has adaptive cruise control, Forward Collision Mitigation System, Lane Departure Warning, DAB
The new Outlander is very impressive and represents a big leap forward from the old version. At motorway speeds the 2.2-litre diesel is incredibly quiet, and gives a strong punch throughout the rev range. Our test car was the automatic version and the gear changes were smooth. Meanwhile comfort levels are high, build quality
is class-leading and the sat-nav system – though still a little clunky to use – is much improved. Even the looks are growing on us
What DO THE PRESS THINK? Auto Express was impressed: ‘The Outlander is more stylish and takes a big leap forward in fuel efficiency and interior space. ‘
What DO WE THINK? It’s hard to believe the leap in quality and refinement the new Outlander has made over the old car, but Mitsubishi has done just that. At long last, good times are predicted for Mitsubishi dealers.
the knowledge Model: Mitsubishi Outlander GX5 Auto Price: £33,999 Engine: 2.2-litre, turbo diesel Power: 1 47bhp, 380Nm Max speed: 1 18mph 0-60mph: 1 1.5 MPG (comb’d): 4 8.7 Emissions: 153 Residual values (three years): 39 per cent
target buyers:
Families; traditional SUV customers; and conquest
the rivals: Land Rover Freelander, Kia Sportage, Toyota Rav4
Key Selling Points: 1. Huge step up in refinement levels. 2. Two versions – five-seater and seven-seater 3. Good build quality
Deal Clincher:
One of the most fuel efficient cars its class. Searches supplied by Monthly AutoTrader.co.uk searches: 102,194 CarDealerMag.co.uk | 37
Feature.
GENEVA MOTOR SHOW 15-page special
Best in show
Geneva’s 83rd Motor Show was dominated by the Italians. But there was other important machinery launched too. The Car Dealer team reports
I
f there was one message that rang loud and clear at Geneva this year it was: Recession? What recession? The backdrop to the 83rd Geneva Motor Show was one of Europe suffering its worst new car market for 23 years. Europe is depressed – but the mood at the glitzy Geneva Palexpo couldn’t have been more optimistic. While the Brits stole the limelight at the Paris Motor Show back in October 2012, this time it was the Italians who made us gasp. Not one but three swoopy Italian cars fought for the right of showstopper. Ferrari fielded the stunning – but absurdly named LaFerrari – while not wanting to be outdone by the men in Modena, Lamborghini pulled the covers off what could possibly be the most spoiler-endowed supercar ever – the £3m Veneno. Meanwhile the charismatic chaps at Alfa Romeo finally revealed their 4C. Ever since the first pictures were revealed, the 4C has been making every car fanatic’s mouth water. While there’s no doubt it’s a looker, opinions were mixed on whether the wait was really worth it. Especially as the 4C is mooted to cost around £50,000 – it may not be the bargain Italian we all thought it was going to be. Britain wasn’t to be outshone though. Goodwood fielded the new Rolls-Royce Wraith, the most powerful car to wear the Spirit of Ecstasy, while Bentley showed of their new posh four-door – the Flying Spur. While there were world debuts of the new Volkswagen Golf GTI and the Renault Captur, Geneva was sadly lacking the next big thing in the world of mainstream motoring. The Frankfurt Motor Show later this year should serve up such treats. But for now, soak up the delights of this year’s Geneva Motor Show in our 15-page special starting here. JAMES BATCHELOR
�� �� | |CarDealerMag.co.uk CarDealerMag.co.uk
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INSIDE...
SHOWSTOPPERS
We round up our top 10 favourite cars to be unveiled at Geneva PAGE 40
FORD
The Blue Oval will return to profitability... But it won’t be until 2015 PAGE 42
HYUNDAI
UK president hints Hyundai’s WRC involvement could lead to sporty models PAGE 44
KIA
Firm’s new Cee’d GT range will have the same effect as GTI has on Volkswagen PAGE 45
AUDI
Success of Audi City means more dealers will be going digital PAGE 46
SKODA
Clever Czechs are eyeing-up the SUV sector as the next market to grow its presence in PAGE 47
NISSAN
Japanese firm aims to double sales of the new British-built Leaf PAGE 48
HONDA
Outgoing UK MD admits Honda has a habit of inventing sectors then abandoning them PAGE 50
MITSUBISHI
New Outlander could have the same effect on dealers as L200 had 10 years ago PAGE 51
VAUXHALL
Firm may have to put up prices in the wake of euro crisis, says UK chairman PAGE 52
INFINITI Ford
New Xxx Q50 saloon is the car Infiniti can finally compete in the premium sector with xx 52 PAGE 42
CarDealerMag.co.uk CarDealerMag.co.uk| 39 | 39
Feature.
GENEVA MOTOR SHOW
Top 10 showstoppers Geneva had its fair share of stunning world debuts. Here we round-up our favourites Edited by James Batchelor & Leon Poultney
Alfa Romeo 4C
Rolls-Royce Wraith
Mitsubishi GR-HEV
It has taken two years for Alfa Romeo to get their seductive two-seater sports car from concept form to reality, and whether the wait has been worth it is entirely up to personal taste. What we do know is the sub-1000kg model will cost around £50,000 when it hits showrooms, pitching it directly against the Porsche Cayman.
Believe it or not, this elegant cruiser packs 624bhp making it the most powerful Roller ever made. Posh types can enjoy their caviar in the rear while this monster smashes the 0-60mph sprint in just 4.4 seconds. The car also employs a satellite-aided transmission that uses GPS to determine the best gear to be in. Costs £215,000.
Mitsubishi’s answer to fuel-efficient pick-up trucks looks like this. It’s called the GR-HEV and it fuses a ‘clean-diesel’ engine with an electric motor to create an eco-friendly terrain-tackler. With such a large battery, and an AC supply available on demand, Mitsubishi says that the GR-HEV could act as a generator. Block party, here we come!
Ferrari LaFerrari A car has to be something very special if it wants to be dubbed ‘the Enzo replacement’ but the LaFerrari is… and for an extremely good reason. The howling V12 pumps out in excess of 900bhp thanks to a little help from an F1-inspired electric motor and KERS system. Forget the ridiculous name, this car looks like the ultimate Ferrari and will almost certainly perform like one. Price? £1m.
Porsche 911 GT3 Porsche celebrates the 50th anniversary of the humble 911 this year with a brand new GT3. This car produces 475bhp without the need for a turbocharger and an innovative activerear-steering system makes cornering less daunting. Porsche nerds may be put off by the fact this is the first 911 GT3 not to be offered with a manual gearbox – but it’s sure to be epic. It’ll cost £100,540. ��| CarDealerMag.co.uk
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Mercedes A 45 AMG
SsangYong SIV-1
We don’t know exactly how Mercedes has managed to squeeze 355bhp out of a tiny 2.0-litre engine but they have. That means this monster will dispatch 60mph in just 4.4 seconds from a standstill… that’s faster than a Porsche 911. It’ll cost from around £36,000 – but with power figures like that, this could be a top seller for Mercedes AMG dealers.
A SsangYong? A show stopper? Yes – you better believe it. The Korean firm also launched the new Rodius at the show, but it was the SIV-1 which caused the stir. It’s pretty much the next Korando – just with a few of the mad bits toned down. We also know there’s a choice of engines in the form of a 202bhp 1.6-litre turbo or a 1.6-litre diesel. If only all SsangYongs looked like this...
ItalDesign Giugiaro Parcour Geneva rarely fails to deliver some stunning concepts and this one by VW-owned design house ItalDesign Giugiaro is no exception. It’s based on a Lamborghini so the 5.2-litre V10 can hit 199mph. There’s no word on production models but don’t be surprised if some of the styling shows up in future Volkswagen products.
Bentley Flying Spur Crewe didn’t want to be outdone by Goodwood, so the Bentley Boys rolled out the new Flying Spur. This time round, instead of looking just a four-door version of the two-door GT, the new Spur has a look a bit more of its own. Under the bonnet lies a 6.0-litre twintubocharged W12 pumping out 616bhp. Has onboard wi-fi, too.
Lamborghini Veneno You could argue that Lamborghini has been slightly lazy this year as the Veneno is essentially an Aventador with some fancy trim bolted on. But that fancy trim hides a plethora of tweaks – including an extra 50bhp under the bonnet – that make this one of the fastest Lambos to roll out of Sant’Agata. Only three have been made and all have been sold for nearly £3m. Did someone say recession?
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Feature.
GENEVA MOTOR SHOW Ford boss: ‘Clarkson won’t be unhappy with new Mustang’ Story: James Baggott
One of Ford’s top European bosses has promised the Mustang won’t be a car that’ll disappoint Top Gear host Jeremy Clarkson when it arrives next year. Clarkson panned the Mustang in a recent episode of Top Gear, slating the company’s rumoured decision to fit a smaller EcoBoost engine in the muscle car for Europe rather than a hallowed V8. However, in an exclusive interview with Car Dealer, Ford’s European sales and marketing chief Roelant de Waard said the last thing he wanted to do was ‘make Clarkson unhappy’. ‘I don’t think anyone can pretend they know how to keep Jeremy happy, but I sure hope we do with the new Mustang,’ said de Waard. ‘Maybe he was sending us a message that we do what is – according to him – the right thing with Mustang. We’ll take his comments as useful information.’ However, de Waard was reluctant Jeremy to commit to a V8 Clarkson Mustang being available when it arrives in the UK. Rumours suggest Ford is considering fitting a more fuel-efficient 2.5-litre fourcylinder EcoBoost turbo with around 300bhp instead. However, many fans would see that as sacrilege – they’d say muscle cars should only come with V8 power. So will the new Mustang have a V8? ‘Anything I say will be misinterpreted,’ said de Waard. ‘On one hand I think there are certain aspects of the Mustang brand that are sacred and on the other there are some that can change, like the F150 (big, juicy American pick-up) being really successful with an EcoBoost engine. ‘However, we have said we are not going to European-ise the Mustang with a hybrid or anything like that – this will be a muscle car. Part of the deal with the US letting us have one of their icons was that we kept our hands off it and that it had to be a ‘proper’ Mustang.’ Car Dealer believes what’s most likely to happen is the Mustang will be offered with a top-of-the-range V8 as part of a lineup that includes EcoBoost units. ��| CarDealerMag.co.uk
‘We’ll overcome But although a strategy is in place, Ford doesn’t expect to return to profitability in Europe until 2015. James Baggott reports
F
ord’s sales and marketing chief has revealed it will be 2015 before the company will return to profitability in Europe. In the last financial year the manufacturer haemorrhaged nearly $1bn in Europe, far worse than the $600m it had forecast. However, a tough strategic plan, which has seen plants close in the UK and mainland Europe, was on track to repair the damage, explained Roeland de Waard. In an exclusive interview at the Geneva Motor Show, the sales and marketing vice president for Ford in Europe, told us that there was a clear plan to put Ford back in the black. ‘One of the things Alan Mulally brought to the company was that we had to adjust capacity to meet with demand and that has meant we’ve had to make some painful decisions,’ he said. ‘Ford in Europe will be back to profitability by 2015. We’ve announced our plans of plant restructuring and we hope to get agreement with the various workforces and unions soon so that will be effective by the end of 2014. At the same time the market should be coming back a little by then too – so that combination makes us confident.’ TOUGH JOB There’s little doubt de Waard has one of the toughest gigs in the motor industry at the moment. Despite being the biggest selling manufacturer in the
CLOSURE
Difficult call THE closure of Ford’s Transit plant in Southampton, Hampshire, has not affected the Blue Oval’s reputation, believes Ford of Britain MD Mark Ovenden. ‘Clearly it was a difficult situation,’ he exclusively told Car Dealer. ‘Unfortunately it is the harsh economics of a plant that does 28,000 units is not likely to survive. 75 per cent of Transits we sold are built in Kocaeli, Turkey anyway. ‘We have to make sure the work we do with the people who are displaced by this is absolutely right and what you would expect from Ford.’
UK last year and the Fiesta reigning supreme in best seller charts across the continent, economic factors have conspired against the car manufacturer. ‘It’s a tough market out there and it’s not just Ford that’s having a tough time it’s the whole automotive industry,’ he explained. ‘What I was most interested in was that we had a compelling vision of how we are going to get through this – and that we have. ‘We can’t salami our way to a solution or beat about the bush – we’ve had to lay the facts out clearly and carried out the difficult decisions that had to be made.’ However, although de Waard doesn’t see Europe returning to the heady sales figures of the boom in 2007, he does believe the good times can return. ‘This is a cyclical business and it will come back – just like it has done many times before,’ he said. ‘No one believes that when you are in the doldrums – but Europe is a highly attractive market, so we need to
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this Euro crisis’
Fast Ford fans rejoice! The RS badge WILL be back Story: James Baggott
continue to invest and launch good new products.’ The One Ford vision is certainly paying dividends, he believes. That plan saw all markets across the globe get access to all products – be that Mustang for Europe or Focus for America – and it appears to be working. ‘Our order take is now extremely encouraging – it is up 20 per cent versus the same time last year,’ said de Waard. ‘We’ve managed to get the advertising budget secured so that we can communicate the new products and we are blessed with one of the best relationships with our dealers in the group. Things are tough, but we can see our plan working and that will translate
into registrations. The problem has simply been the economy. There was an inflation of demand that no one realised was happening when it was, but that was the same in housing and travel as it was in the motor industry. Everyone has been affected. ‘We are now getting back to less inflated demand. The fact was the European public lived beyond its means. Our expectation is that the market will not, this decade, get back to the highest peak we had in 2007, as that was based on spending no one could afford. What we are seeing is a correction in the market and it is a natural thing that was always going to be painful. But it won’t last forever.’
Ford has committed to the RS brand in the strongest indication yet we’ll see the legendary badge return to a hot hatch. At the launch of the Focus ST, Ford top brass categorically ruled out an RS version – but now it appears the mood in the company is changing. In an exclusive interview with Car Dealer, Ford’s European sales chief Roelant de Waard said the Blue Oval hadn’t ruled anything out, including making a Focus RS and Fiesta RS in the future. ‘We deploy RS selectively,’ he said. ‘There has to be the right technology for it and when we see an opportunity we’ll build another RS. We are committed to the RS brand.’ De Waard is currently focussed on the forthcoming launch of the Fiesta ST – a car he believes is the “perfect hot hatch” – and then he’ll be concentrating on rolling out the European spec Mustang in 2014. ‘I am a performance car enthusiast and I’m excited about Fiesta ST and Mustang,’ said de Waard. ‘But we never say never to an RS model. Let’s talk about it after the first Mustang has arrived…’ And with that closing comment, and the glint in de Waard’s eye, came perhaps the biggest hint that a Fiesta RS could be on the cards in the not too distant future. And if the new ST is anything to go by we could be in for some great fast Fords soon. De Waard added: ‘I think we’ll lure a whole generation of buyers into a car that they didn’t think was relevant to them – but they’ll love it.’ Looks like fast Ford fans have a lot to get excited about…
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Feature.
GENEVA MOTOR SHOW
Hyundai to add sex appeal World Rally Championship involvement could lead to future sporty models. James Batchelor reports
2014 Hyundai i20 WRC
H
yundai has given strong hints that there could be sporty products on the way thanks to its involvement in the 2014 World Rally Championship. Although the official line given is ‘there are no plans for a sporty, road-going version’ of the Hyundai i20 WRC car, the Korean firm could well introduce sporty versions to its product range to tempt performance car fans to the brand. ‘We have the technology to do it – and you cannot have a car competing in the WRC and have nothing to back it up with,’ Hyundai UK’s president and CEO, Tony Whitehorn, exclusively told Car Dealer. ‘But we want to see how WRC goes so this year so there are no plans for a sporty i20.’
However, the Korean firm’s involvement in the WRC is not just a whim, rather it’s the start of a new focus for the brand on adding passion and sportiness to its products. Whitehorn agreed the Veloster’s success in promoting the sporty image of Hyundai is debatable, and that the WRC could point to new sporty models in the future. ‘We have got to be add emotion to the brand, so by just going into WRC – that’s pointless. We have got to feel this in our other products,’ said Whitehorn. Hyundai was last in the world of top-flight, international rallying in 2003 with the Accent WRC – again for brand promotion. Next year Hyundai will field the i20 WRC to take on the multiple champions Citroen and its DS3 WRC,
and new arrivals Volkswagen with its Polo WRC. Both firms have sporty versions in their product ranges to link their cars with the world of rallying. ‘We have returned to the WRC because our product has moved upwards in terms of quality and style, but the brand hasn’t moved so quickly,’ Whitehorn told us. ‘30 per cent of our owners buy a Hyundai on its style. We are very rational as a brand – we are known for quality and value for money – but what we need to do is to inject some emotion into the brand, some sex appeal. Last year we sold 74,500 cars in the UK; we’ll sell 75,000 cars this year – 2013 is all about consolidation and building brand awareness and emotion. And you get this by going into WRC.’
PREMIUM IS NOT OFF THE RADAR
Hyundai has had a vanilla image – that will change HYUNDAI boss Tony Whitehorn made it clear the Korean firm will enter the premium sector in the UK – but only when it is right to do so. ‘I wouldn’t say Genesis has been pushed to one side,’ he told us. ‘Genesis is working very well in the States because the Americans embrace good cars without any brand snobbery, unlike in Europe. Would I want Genesis to come into the UK today? No. I think Genesis ��| CarDealerMag.co.uk
is an interesting proposition for the future. It’s interesting because it stretches the brand.’ Whitehorn ruled out introducing a premium sub-brand to sit within the Hyundai range in the UK. ‘We need to say we can add emotion to our range – that’s a much better way to do it. So you might have an i20 GT type of vehicle for instance – that’s the way to do it, you don’t say
let’s have a Citroen DS range. ‘We need to improve the Hyundai range. Historically, the Hyundai range hasn’t got a negative perception, but it has not got any emotion to it at all. It’s not negative, but a vanilla one. ‘We are trying to improve this so it is not our strategy to have a new type of premium subbrand offering.’
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Korea’s GTI is go go go GT will do for Cee’d what GTI does for Golf, Kia UK’s chief tells James Batchelor
K
ia’s UK chief says its new hot hatch will make the Cee’d range even more desirable to customers thanks to the Golf GTI effect. Paul Phillpot, Kia Motor UK’s president and CEO, exclusively told Car Dealer the racy new Pro Cee’d GT and Cee’d GT will take on a GTI positioning in the Kia range – one that brings new customers to the brand thanks to the GT’s aspirational qualities. ‘By having GT in the Cee’d range, we’ll sell more Cee’ds,’ Phillpot told us. ‘I look at some of the brands in the industry and one that really stands out is Volkswagen. What do they do well? They bring out top-of-the-range cars and they make them aspirational which has a spinoff on their mainstream range. ‘GTI is around 15-20 per cent of their mix – and they focus on advertising that car. If you look at GTI over the years, it has driven more people to buy standard Golfs because there is that aspiration within the range. Our GT will very much be a part of the Cee’d range, but it starts to add a fun, dynamic and aspirational element to Kia which is the next stage for us.’ Phillpot revealed the GT range will ‘the first in a line of sporty Kias’ and taps into a segment the Korean maker is rapidly finding its feet in. ‘One of the markets that does appear to be opening up to Kia is the second-car market,’ said Phillpot. ‘It’s the type of people who have a BMW 3 Series as their first car and their second car is a Sportage, Cee’d or Rio. Something like a
Cee’d GT for a family’s second car is quite a good proposition.’ Kia took the Geneva Motor Show as an opportunity to give show-goers the first glimpse of the new Pro Cee’d and Cee’d GT cars. With a turbocharged 1.6-litre petrol engine throwing out 202bhp, the racy Korean will be competing with some of the biggest names in the hot hatch business. The UK will be getting the three-door Pro Cee’d GT and maybe the fivedoor Cee’d GT, and it’ll represent a five per cent mix of total Cee’d sales. But Phillpot admits the GT could have been racier. ‘GT is at the top-end of the Cee’d range – and we know 202bhp is not for everyone,’ he said. ‘There are no plans for a faster version of GT but we know that some competitors have cars with 250 and 270bhp. When you get up to this area, you’re entering a niche and pushing the car’s price bracket into some premium cars. But it’s very small volumes, so by pitching our car with lower power means we have broader appeal. Cee’d GT is just our first sporty Kia. ‘How far do we push the sporty image? It depends on how successful Cee’d GT is. But success is not just measured on sales but also on what it does for the image for Cee’d and the Kia range.’
KIa Provo Concept BEST OF BOTH WORLDS
We can be premium and sporty WHILE some brands struggle to balance both a sporty and premium image, Kia’s Uk chief Paul Phillpot firmly believes the Kia brand can be both sporty and premium without damaging its reputation for value for money. ‘We can balance both being sporty and premium, but we have to take it step-by-step,’ he said. ‘The Provo is only a concept right now, but it is a clear demonstration of where we are going to take design over the coming years. I think also the B-plus area is actually an area that is developing rapidly and is interesting. There’s B-premium sports, B-premium SUV, B-MPV – it’s a category which is seeing people downsizing into it but it’s a sector that still meets their needs. ‘It is very interesting territory and we will listen to feedback about the concept and then we will be in discussions about what we do. ‘If we went into this segment, it would be very good for Kia.’
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Feature.
GENEVA MOTOR SHOW
More dealers to get digital delights A
udi looks set to roll out key features of its digital dealership concept after its Audi City showroom has been ‘a huge success’, doubling sales at the site. Speaking exclusively to Car Dealer, Audi UK’s managing director, Martin Sander, said that due to the Capital’s digital dealership concept working successfully, the firm’s 115-strong network can look forward to their dealerships becoming digital. ‘Audi City has been a huge success,’ Sander told us. ‘Sales have doubled since we put the new digital concept into that showroom and 80 per cent of customers buying at that dealership have never driven an Audi before. It is really great for customers to get in touch with the brand for the first time.’ Sander explained Audi City has also allowed the firm to consider testing the concept in other
Success of Audi City digital dealership means more dealers will have digital integration, Audi UK MD tells James Batchelor dealerships across the UK. ‘We are learning a lot and I think over the next couple of years we will be able to transfer a lot of this technology into the rest of our retailers, and really transform the customers experience.’ The UK chief puts the dealership doubling its number of sales down to customers loving the concept. ‘Audi City is one of the most exciting car retail experiences in the whole of the UK,’ he said. ‘People in London want to try it out and experience their future car in front of them.’ Sander told us he want to introduce certain elements of Audi City into the remaining dealerships across the UK. Features such as lounges where sales people can have
Sander’s favourite – the A3 e-tron
a private conversation with the customer, and giving the buyer the opportunity to build their Audi in front of them with the help of large digital screens. ‘This could very easily work in each and every dealer and be introduced into every sales process,’ Sander said. The only problem at the moment is the technology’s high installation cost for dealers. But Sander revealed the German firm is working on a business case so elements of the digital dealership could be replicated across the network. ‘Most of our dealers have been to Audi City and they are extremely positive about the concept because, as a dealer, they know that they don’t sell what they cannot present to their customers. ‘We all know that if we have a 17 or 18-car showroom, with a product range of 42 cars we are getting to our limits in being able to display our cars. This technology will allow our retailers to capitlise on every sales opportunity.’ Sander couldn’t confirm whether there will be any other solus digital dealerships around the UK, but did say Beijing is getting one and Berlin will be receiving its own Audi City soon. ‘It is not impossible there will be more Audi City sites in the UK. It makes sense we look at more locations.’
AUDI CHIEF’S FAVOURITE
Audi A3 e-tron Sander: ‘A1 is as small as we’ll go’ SANDER has ruled a smaller A1 to take advantage of a growing market interested in small, premium superminis. Instead the German firm will be growing its Q-range, the Audi chief told us. ‘The A1 plays a very important role for us, as it brings new customers to the brand,’ said Sander. ��| CarDealerMag.co.uk
‘But there are no plans to introduce a smaller version of the A1.’ Sander also said we should expect more Q-models from Audi in the future as ‘there are a few gaps’, and ‘there’s also a great opportunity for our RS models’ and more plug-in hybrid cars.
AUDI UK chief Martin Sander told us his favourite car on the Audi stand was the A3 e-tron. ‘It’s my favourite because it’s totally new technology which we haven’t had before, totally new technology for our customers and is a totally new dimension to fuel economy. ‘The e-tron is a new challenge for the whole organisation,’ said Sander. ‘It is a quantum leap. In terms of performance it is amazing – more than 200bhp, 180mpg-plus and it emits 35g of CO2.’
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Posh Octavia Estate is a sign of Skoda’s new confidence
Confident Czechs eye-up SUV market S
koda aims to take its smart Yeti SUV to the next level by doubling production and adding more SUVs to its range. Speaking exclusively to Car Dealer, Skoda’s member of the board of management for sales and marketing, Werner Eichhorn, said the Czech marque will be building on the success of the Yeti by producing more, and introducing new models to the SUV segment to win more customers. ‘Our first priority is to double Yeti production,’ Eichhorn told us. ‘We have sold 90,000 Yetis worldwide and it has been an incredibly important car for us and the brand. ‘We will also be introducing a facelifted Yeti,’ said Eichhorn. ‘This sharper new Yeti will be launched later this year and will probably arrive in the UK at the end of this year or at the beginning of 2014.’ But Eichhorn revealed Skoda has plans to increase its presence in the SUV market by creating larger and smaller SUVs. ‘From what we have seen from markets such as Russia, we think there is a need for a larger SUV,’ Eichhorn explained. ‘In my view, the SUV market really fits with the Skoda brand because it is all about reliability, robustness and functionality. But it is important we do not enter niche segments with these but the big segments.
Skoda’s sales and marketing chief tells James Batchelor, there’s a bigger Yeti on the way – and more special editons ‘Within the VW Group we have the technology to even add a smaller Yeti. The Yeti is approximately four metres long so we have space to go smaller and bigger. But our main priority at the moment is concentrating on the Yeti and introducing a larger SUV.’ Eichhorn also suggested the next Superb will be ‘bigger and be more dynamic to look at’ but ‘not at the cost of the features it has become known for’, and the sales and marketing chief said Skoda will be launching more special edition models in the future. It means we will be seeing more models be offered in off-road-like Scout, sporty Monte Carlo
Skoda Yeti
and posh Laurin & Klement versions. ‘We will be bringing to market more Scout variants of our cars because feedback tells us customers like these cars,’ said Eichhorn. ‘But the version we would really like to develop is the Monte Carlo idea. We got some tremendous feedback on the Fabia Monte Carlo, so we would like to introduce some more colour and designled ideas for our forthcoming models.’ The top-drawer Laurin & Klement specification will also make its way to more models. Only ever available on the previous Octavia, Yeti and Superb, L&K models add extra kit such as leather and special paint colours for a small premium. The name takes its name from the founders of Skoda: Vaclav Laurin and Vaclav Klement. Eichhorn hinted the luxury L&K spec would work well on the Citigo, Fabia and new Octavia. ‘Our customers like the differentiation between the models. There’s the off-road like Scout, sporty Monte Carlo and luxury Laurin & Klement. The Europeans really like to differentiate their cars, we really believe offering more versions to more customers is the right thing to do.’ CarDealerMag.co.uk | 47
Feature.
GENEVA MOTOR SHOW Could the next GT-R supercar be a hybrid? Story: James Baggott
THE next Nissan GT-R will more than likely come with a hybrid power train, believes the firm’s UK chief. Nissan Motor (GB) managing director Jim Wright told Car Dealer that a hybrid set-up ‘makes sense’ for the performance car because of the benefits of instant torque an electric-assisted set-up offers. ‘If you look at the benefits of EVs then what are they? Well, apart from using no gas, it’s the instant torque. When you hit the pedal it really shoots off,’ said Wright. ‘If you’ve driven an Infiniti M you’ll know this car can operate in full EV mode and when you accelerate it takes off very, very quickly and quietly. ‘The 0-60mph time is around just five seconds as the torque delivery is instant so from a sportscar perspective EVs and hybrids make a lot of sense. Just look at the McLaren P1 and LaFerrari, they are hybrids and you have to be mindful of CO2 and performance at the top end of the market as well.’ It’s unlikely the next Z sports car will get similar technology though. For the 370Z replacement Wright desperately wants to see a four cylinder petrol engine as the market for six cylinders has disappeared. However, that doesn’t mean Wright doesn’t want to see a pure EV sports car one day enter the Nissan line up. He said: ‘If I were a product planner – and I’m not – I would be looking for an EV sports car as that would be a worthwhile investment. It would attract attention in the technology and that’s what’s really needed. ‘If you deliver what the customer wants with an alternative technology then you’ve hit the bull’s eye.’
Next GT-R could be a hybrid
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‘We’re aiming to Nissan aims to crack 3,000 sales in a year – tripling annual sales, the firm’s UK boss tells James Baggott
N
issan GB boss Jim Wright will be ‘disappointed’ if sales of the refreshed all-electric Leaf don’t TRIPLE in the next financial year. Speaking exclusively to Car Dealer, Wright said the car’s new lower price meant it is now available for just £200 a month – a price he believes will tip sales into the low thousands. Nissan will finish this financial year with 900 Leaf sales on the board, but the target for 201314 will be to crack the 3,000 mark. In a candid interview, Wright said Nissan overestimated the advantage of being first to market with an electric car while underestimating the disadvantages. ‘When we reduced the price there were a
handful of dealers who picked up the phone and called everyone they had in their database and we’ve had one dealer group sell 11 in a week,’ said Wright. ‘Before the price reduction they were doing one a week. I certainly feel more optimistic. ‘Since we reduced the price of the car our order take has increased. The car is now trading at less than £20,000 which means dealers can offer it at £239 a month, but many are giving up their margin to get this closer to £200 a month – at that price it really starts to stack up as a second car.’ Wright added that with competitor launches of EVs increasing, the awareness with the public will rise too. Renault will soon launch its electric
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triple Leaf sales’ EXCLUSIVE
Zoe while BMW is on the cusp of rolling out the i3 and i8 supercar EVs. ‘As rival marketing budgets increase for EVs so too will the awareness with the general public,’ explained Wright. ‘We will market the Leaf more heavily this year when the Sunderland production models hit the market.’ Wright admitted the launch of EVs had been ‘painful’ but he believes the lower price, UK production and aggressive advertising strategy will pay off. ‘In comparison to the pain we have struggled with so far with EVs, this year should see the dealers all on board, marketing the car aggressively – as will we – then I think, touch wood, we’ll get into the thousands.’
The new British-built Nissan Leaf
Pixo to be axed NISSAN is set to axe the Pixo city car from its range in time for the launch of the face-lifted Micra and new Note. The manufacturer’s UK boss Jim Wright exclusively revealed to Car Dealer that the last Pixos are now in the country – and once they’re sold there will be no more. Wright explained that the heavily refreshed Micra will be the manufacturer’s entry-level model when it arrives in the summer. ‘The Pixo will disappear from the range – it’s on run out now and we have the last ones in the country,’ said Wright. He said the changes to the Micra are ‘dramatic’ and that it was the biggest investment in a car mid-way through its life Nissan had ever signed off. Sales of the current Micra haven’t got anywhere near the levels that previous generations notched up, which may be one of the reasons for the dramatic updates. ‘Our dealers are used to seeing Micra as a 45,000 sales a year model, so the fact we are doing around 13,000 means the perception is it’s not performing,’ added Wright.
More spicy Nismo RS versions on the way? Story: James Batchelor
NISSAN Europe’s senior vice president for sales and market has said the Nismo badge will only appear on cars which warrant it. Speaking exclusively to Car Dealer, Paul Willcox said that while there are more Nismo models on the way, the name won’t appear on every Nissan product. ‘The global market for Nismo is very different. Markets have different ideas on how to develop the Nismo brand,’ said Willcox. ‘The Japanese market is very much driven by tuning but, more importantly, by design. In Europe we need to have that dynamic element – we will only introduce a Nismo model if it dynamically serves a purpose. ‘In Europe, we would not put a Nismo badge on everything – there needs to be a credibility in terms of performance. It also needs to be accessible so we will not got for high outright power and high cost – this would not work.’ At the 2011 Tokyo Motor Show, a Leaf with Nismo styling parts was on display. Willcox did not rule out the car coming to Europe. ‘In Europe, we need to keep a hold on what we launch as a Nismo – so if we launched a Nismo Leaf, there needs to be a credible performance advantage to that product,’ he said. When the Juke Nismo was recently launched, Nissan spared no time in announcing a hotter RS version. Will there be more of these in the future? ‘I guess so. Introducing a hotter version of every Nismo model won’t be appropriate, but as we introduce new cars there could be. We’ll always be looking to grow the story as far as we can, and that means volume. We’ll always have this two-tier strategy especially on mainstream products. If we had a mainstream C-segment hatchback, we’d be looking at doing this from day one.’
Juke Nismo
CarDealerMag.co.uk | 49
Feature.
GENEVA MOTOR SHOW
Urban Sport Utility Concept is the next Honda HR-V
H
onda UK’s outgoing MD says the Japanese maker missed the boat in dominating the C-segment crossover segment by quitting too early. Speaking exclusively to Car Dealer, Dave Hodgetts, outgoing Honda UK managing director, believes Honda could have had ‘a Nissan Qashqai’ if it hadn’t have pulled out of the crossover market ten years ago, just at the time the segment catapulted in popularity. ‘The problem is we tend to invent sectors and then ditch them,’ Hodgetts told us. ‘The main reason for that is the sector may work in certain countries – like the UK with the HR-V, the Stream and the FR-V – but they didn’t necessarily sell so well in Europe. So total volume wasn’t that high and Honda pulled out of those sectors.’ But Honda could be back in the immensely popular C-segment crossover market as early as next year if all things go to plan. The ‘new HR-V’– which currently uses the name ‘Urban Sport Utility Concept’ – will be the first fashionable lifestyle off-roader from the Japanese giant since the HR-V disappeared from UK dealers in 2004. It’ll sit below the new ��| CarDealerMag.co.uk
‘We could have had a Qashqai’ Outgoing Honda UK MD tells James Batchelor the good times will return thanks to new product coming to showrooms soon British-built CR-V – a car which its appeal will grow this year with the addition of Honda’s new 1.6-litre diesel engine. ‘We are just re-inventing that sector with the new HR-V,’ explained Hodgetts. ‘We will have a new one in a year or so’s time – we would like to have it sooner. We could have had the Nissan Qashqai – but that’s the way things go. It’s good that we have recognised the gap in the sector and this car will go really nicely underneath CR-V.’ However, the HR-V will be just one new car which Honda UK is pinning its hopes on. New products such as the Civic Tourer; Civic Type R; the fuel cell electric FCX Clarity; and NSX supercar will usher in good times for Honda – times which will see the brand
being desirable again. The first car to arrive will be the Britishbuilt Civic Tourer. The new car will account for around 20 per cent of total Civic sales, but more importantly though, it’s hoped the swoopy loadlugger will lift the Honda brand in an upward direction towards a more premium image. ‘Civic Tourer will lift the premium image of Honda due to the styling and the equipment in it,’ Hodgetts told us. ‘We naturally want it to be perceived as a member of the Civic family but also as a separate model because our range has been relatively depleted over the last few years – and this is the start of building back confidence.’ The introduction of the Civic Tourer will pit Honda back into the popular C-segment estate market for the first time since the 1990s. ‘Good times are coming,’ added Hodgetts.
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‘Outlander could be our next L200’ The new Outlander could have the same impact on Mitsubishi UK as the L200 had a decade ago. James Baggott reports
M
itsubishi’s UK boss Lance Bradley believes the firm’s plug-in hybrid Outlander could be a ‘game changer’ for the company. Last year was one of the toughest ever for the Japanese firm, but with the arrival of two new models and some exciting technology in 2013, Bradley believes Mitsubishi can improve sales by 50 per cent. Already in dealers is the new Outlander 4x4, a hugely refined and improved product over the outgoing off-roader. The firm’s new Mirage arrived in time for the March plate change while later this year the PHEV (plug in hybrid) version of the Outlander arrives which offers 148mpg and emissions under 50g/km. It’s the latter that has Bradley really excited. ‘It could be our next L200,’ he told Car Dealer at the Geneva Motor Show, referring to the difference the success of the pick-up made to the car’s fortunes in the early 2000s. ‘Back then, when we had the tax position clarified on one tonne pick-ups we had by far and away the best pick up in the market. That really fuelled the growth of the brand.
‘We were growing 20 per cent a year and did so for four years. It was a great time for us, our dealers and customers. But things move on and times change. It may very well be our next big thing – it’s our game changer.’ Buyers of many premium hybrids – most notably Lexus – are likely to be attracted to the Outlander, so is the dealer network ready to cope with these buyers’ expectations? ‘Of course they are,’ said Bradley. ‘I think of it as the difference between shopping at Tesco and the local butchers – both have their benefits, but the personal service counts for a lot. ‘At many Mitsubishi dealers the name above the door is the person who sells you the car – and that counts for a lot. ‘We don’t have the gin palaces that some of the premium brands have but we do have the personal experience and the small business experience that makes a difference. ‘I’m not looking to change things dramatically in the network. I’m happy with it and the dealers are doing a very good job as it is. They will be more than capable of dealing with Audi or Lexus customers or whoever else walks through their door.’
MITSUBISHI BOSS
Our dealers are fired up Sales at Mitsubishi are up 70 per cent so far this year and Bradley is keen to see them stay that way. ‘Dealers are very fired up,’ he explained. ‘So far our sales are up 70 per cent this year which is a huge increase. New product always cheers everyone up, even at head office, everyone feels more positive and excited as the new product is good. ‘Last year was difficult because of exchange rates, but now they have improved we’ve got more margin in the vehicles and we’re investing that in marketing. That’s having an impact. ‘We’ve got a 50 per cent increase in marketing this year – but on the back of that we’re planning for a 50 per cent increase in sales which will be the biggest we’ve ever had. ‘There was a degree of nervousness about that but so far it seems to have worked.
GR-HEV points the way to the next L200
CarDealerMag.co.uk | 51
Feature.
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‘Our prices may have to go up’ V
auxhall’s chairman and MD, Duncan Aldred, admits the brand is facing difficult decisions amid tough economic times in Europe. Aldred – who recently added the acting position of Opel/Vauxhall vice president, sales, marketing and aftersales – did not rule out Vauxhall raising its prices because of tough European trading conditions. ‘The recent weakness of the pound in February has a profound impact on profitability for a eurobased car manufacturer,’ he told Car Dealer. ‘That
Slow European car sales and a fluctuating pound are putting pressure on Vauxhall, the firm’s chief tells James Batchelor hurts and whether that will quell demand in the UK because prices may have to go up over the course of the year, we will have to wait and see. This is just another challenge we have to wrestle with, like we did a few years ago. ‘We are preparing for the worst in as much we’re reviewing our options. We haven’t made any changes to our pricing actions, clearly it has an impact on our finances for the year. I guess we are in a position of watch and review.’
Even with the economic difficulties and the arrival of new, more premium products – such as the new Cascada – which aim to raise the image of Vauxhall, Aldred is clear if prices do rise, it won’t be ‘out of step with the industry’ and at the detriment of losing one of Vauxhall’s ‘brand pillars’ – namely, value for money. ‘We won’t want to hurt the Vauxhall brand pillars of value for money. We’ve done this through reasonable prices and our flexible finance programme – it is my intention to retain Vauxhall’s value for money offering. We won’t do anything out of step with the industry which will damage the brand. I’m not going to drive customers away with any knee-jerk reaction.’ Aldred admits the current economic times are bewildering. ‘You wake up and think ‘what else is going to affect the European car industry?’.’
Vauxhall’s push upmarket – the new Cascada
‘This is the best Infiniti... EVER’ Company’s president tells James Batchelor the Q50 finally makes Infiniti a credible German rival
T
he president of Infiniti has declared the company’s new Q50 to be ‘the best Infiniti ever built’. Speaking exclusively to Car Dealer, Infiniti’s president, Johan De Nysschen, believes the new Q50 represents the upmarket Nissan brand finally understanding the European premium sector, and will signal the end of Infiniti being on the fringes. ‘We have done a lot of work on elevating the product quality. This is best Infiniti which has ever been built,’ De Nysschen told us. ‘We have really upgraded the materials in the interior, and on the outside you can sense the body rigidity by looking at the tightness of the shut-lines. We have ��| CarDealerMag.co.uk
the best shut-lines in the business. There is no-one who is putting panels closer together – you can go and tell that to the Porsche guys!’ The Q50 is the first in a range of Europeancentric Infinitis, soon to be followed by a new British-built new premium hatchback. ‘The Q50 finally puts Infiniti into the sweet spot of the European premium sector. We’ve got a great driver’s car, the quality is there and the styling is stunning – but most importantly we finally have the right engines for Europe. This car opens up a world of new possibilities for us – it’s the tip of the iceberg.’ Infiniti will also have ‘rapid access’ to Daimler
Q50 has the best shut-lines in the business powertrains thanks to a new agreement with the German giant. ‘It’ll fill holes in our powertrain line-up – and this will open up volume opportunities for us.’ Infiniti launched in the UK in 2009 and De Nysschen puts the brand’s lack of awareness up to now due to not having ‘credible products’. ‘FX and EX have been interesting, but they’ve not been mainstream. They’ve been on the fringes. If you want to create a brand legend, you’ve got to be able to link to something people can access. If you’re on the fringes, you cannot reach customers.’ [CD]
As consumers access more information online, they now only visit 1 or 2 forecourts compared with 7 in 2001. So their buying cycle is shorter than ever. Live Chat allows you to speak to buyers at the earliest opportunity, to make sure that it’s your forecourt they visit. A recent trial resulted in over 50% of chats converted into leads!
To use Live Chat to turn your web traffic into hot prospects, speak to your rep. CarDealerMag.co.uk | 53
focus on.
GFORCES
Clean up your overheads GForces
A
W: gforces.co.uk T: 0844 247 4523
ftersales can end up as rather a forgotten child in the world of dealerships. Tucked away at the back of the premises, it might not have the same glossy appeal as sales – with its shiny models and that lovely new car smell – but aftersales makes up a vital part of the day-to-day business and, more often than not, can keep the dealership above water. Some dealerships derive as much as 80 per cent of their profit from aftersales, for example, so ensuring that service bays are always busy should be a key concern. Things aren’t what they used to be, though. As the recession hit, car owners became keener still to find the ‘best prices’ – and fast-fit centres jumped on the opportunity. In fact, fast-fits now occupy more of the aftersales business than ever before– with some estimates putting their reach at as much as 45 per cent of the marketplace. Dealers, then, need to get back in the game – and that’s something automotive digital agency GForces is well positioned to help with. Established in 1999, GForces has a wealth of knowledge and experience behind it, creating and managing web solutions for a wide range of prestigious automotive clients. ‘GForces are now the largest agency within Europe for automotive,’ commercial director Tim Smith tells us. ‘We have over 170 staff members and we only work in automotive. I think we had about 13 staff six or seven years ago, so the growth to where we are now has been rapid.’ Now in a position looking over the length and breadth of the industry, GForces is in a prime position to spot any upcoming trends across the automotive market. One that’s worth taking note of in particular, the firm suggests, is a lack in
overhead absorption. ‘We’ve seen a continual drop in aftersales absorption within the franchised marketplace,’ says Smith. ‘It’s not unusual to see 40-60 per cent overhead absorption in aftersales, when really they should be more like 80 per cent.’ The thing that’s driving the trend, suggests Smith, is a simple case of rising overheads – topped off by losing customers to illusive fast-fit centres. ‘I think the tendency is for people to head to fast-fit centres almost by default, and it’s just a few percentage point hits on franchised dealers that are already working within a very, very profit stretched environment.’ The best course of action, then, is not to simply take the situation lying down – but fight back. ‘Dealer groups have typically been a bit slow to react to the situation,’ says Smith, ‘Now is definitely time to do something about it, though, almost before it’s too late.’ Fast-fit centres might be winning over customers with claims of being the cheapest around, but that’s not to say dealers have no way of fighting back. ‘What’s easy to forget is that, regardless of where people are spending their money now, a great percentage would still prefer to take their cars to dealerships they trust,’ Smith tells us. ‘The reason for going elsewhere doesn’t necessarily come down to finding the best price – but being able to find a price in the first place.’ Dealers need a better level of transparency, GForces suggests – make pricing clear, and potential customers will be able to better compare your dealership with other options. ‘Consumers would trust main dealers to a far greater extent if they were price competitive,’ says Smith. ‘Fixed price services are a good start – make everything
‘‘
I think the tendency is for people to head to fast-fit centres almost by default
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comparable. Not only does that help consumers better understand where their money is going, but it helps dealership staff get their heads around what to charge – it’s win-win, arguably!’ Once more transparent pricing is established, GForces suggests that the next logical step is to get back to basics – get customers into the dealership in the first place. A recent report by Castrol suggests that, by 2017, aftersales transactions will drop four per cent – putting even further strain on the industry. The only way to react, says GForces, is to better communicate the advantage of regular maintenance. ‘Dealers can generally expect around 70 per cent of new car buyers to come back after the first year for their aftersales needs – not bad, but not ideal. Used customers, on the other hand, are even more flaky – the proportion that come back can be well under 50 per cent.’ It’s this group that there’s really room for improvement in, says Smith – and that means getting inventive. ‘There are plenty of tools to keep customers returning, or attract them to your service bays in the first place,’ suggests Smith. ‘Service plans on used cars can be very lucrative indeed – and they’re becoming easier than ever to manage too, thanks to the introduction of service plan systems.’ Service plans can be surprisingly easy to set up within these systems, GForces suggests, with vehicle makes and models already pre-loaded and ready to go. Perhaps more importantly though, the plans are designed to make life easier for customers too – allowing a quick and smooth booking process with clear costs throughout. ‘It’s important to remember that dealers can take some pretty effective measures to close the gap between themselves and fast-fits,’ says Smith. ‘They can offer manufacturer knowledge that a fast-fit simply won’t have. They can do a better job of communicating how their service pricing is usually far more comparable to a fast-fits than
AWARD WINNERS GForces’ work may speak for itself, but that’s not to say it isn’t worth mentioning the firm’s multiple accolades. Winner of countless awards since their launch 14 years ago, the firm is well recognised and highly acclaimed in the industry. In fact, we’ve awarded GForces multiple trophies for their work – winning five separate awards over the years for their work on Lifestyle Europe, Essex Auto Group, The Car Shop, Hills Ford and Thame Service Station websites at our Ewards events. It’s not just us, though – dealers have repeatedly raved about the firm, leading to three successive wins in the web design category at our Car Dealer Power awards.
consumers might think, too – they really are in a better position than they perhaps realise. ‘Combine these things with a system for booking in services or buying tyres and you’ll be on par with the fast-fits in terms of convenience too – and that’s a real driver for bringing in sales. Do all of the above, says Smith, and not only will you be onto a winner, but those pesky overheads won’t be getting in the way of profits for much longer. [CD] CarDealerMag.co.uk | 55
“Is this a record? I swear after placing an ad for a Cayenne it was sold within 30 seconds.” David Green, themotorhouse@prestbury
INSTANT TOOLBAR NOTIFICATION
Within seconds our subscribers know about prime stock being offered around the UK. It’s faster than email.
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focus on.
Tools of the Trade
Used car trading platform that’s faster than email AUTOTRADE-MAIL
W: autotrade-mail.com T: 01243 523000
T
he whole world has sped up since the universal adoption of the internet, 24-hour emails and all that goes along with being constantly connected. There’s pressure on most people just to keep up, but some want to be able to go one step further. But when everyone can benefit, where can you find a competitive edge? Autotrade-mail says that it has the answer – a trade tool that’s even faster than email. The firm has developed a simple-to-download programme that notifies buyers of vehicles that are available through the trader within seconds of them being advertised by the seller. People like Swancraft director Jamie Robertson are amazed at the speed with which they can shift stock: ‘I advertised three cars and within sixty seconds had sold the first and all three within 15 minutes – nothing comes close.’ The software makes it easy not just to sell a car, but to find one too. An unobtrusive toolbar is installed on the user’s desktop and notifies you with a discreet pop-up alert whenever another Autotrade-mail user has a car for sale that matches your predefined criteria. You set the make, model, age and mileage ranges you’re looking for and Autotrade-mail does the rest. When the computer finds a match, the alert appears on your screen for 10 seconds with basic details of the car. The toolbar is just one of the enhancements made to the Autotrade-mail website in recent years to make the experience invaluable to the company’s 5,000 subscribers. Operations director Kevin Watson says that a lot of effort has gone into upgrading the experience: ‘We spent 18 months developing this unique sales aid and our members just love it.’ The toolbar makes accessing the Autotrade-mail website much easier too – users just need to click on it to be taken through to the site without the need to log in with their username and password. Searching the extensive database of stock is just a click away. Watson continues: ‘It is a great opportunity for dealers to get prime stock more quickly as well as alerting buyers to vehicles being offered.’ Autotrade-mail has been helping the motor trade buy and sell stock quickly and efficiently since 1999.
Kevin Watson
The whole package is certainly innovative and compelling – it’s no wonder that more people are signing up every month, because they can place an advert in less than 90 seconds. The advert is then emailed to thousands of targeted trade buyers across the UK. Within minutes, interested buyers can contact the selling dealer directly by telephone or email. It’s a deceptively simple idea, one that led to more than 250,000 used cars being advertised for sale by dealers on the website in 2012. The team behind the Autotrade-mail package knows dealers are busy people too – you won’t be inundated with adverts, but rather you’ll get tailored alerts based on the information that you put in. Subscribers only get alerts that match the chosen make, model, age and mileage of the cars they’re looking for and are relevant to their business. There’s no need to sift through useless information,
‘‘
Autotrade-mail has been helping the motor trade buy and sell stock since 1999.
because Autotrade-mail has done that for you already. This targeted approach is a popular option for car sellers and made last year a successful period for the firm, explains Kevin Watson. So what’s the next step? ‘We recommend in the first instance that you have a 14-day free trial of the whole system to see if it’s the right tool for your kit. Feedback from our members indicates that internet trading between dealers is growing at a faster rate than ever.’
CarDealerMag.co.uk | 57
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focus on.
Tools of the Trade
Insurance which keeps customers smiling DayInsure
W: dayinsureconnect.com T: 0844 499 8323
C
ourtesy cars are a luxury that almost every customer now expects to receive. Whether handing their car in for a service, bodyshop repair or some warranty work, requests for replacement transport are becoming more and more frequent. The problem with handing out such a freebie may not come down to the availability of cars – giving valued customers a demonstrator for 24 hours often isn’t out of the question, for example. Instead, it’s the cost of insurance that makes courtesy vehicles such a headache. The temptation is to use the dealership’s motor trade policy as a means of insuring the vehicles – but as many dealers will know, that’s not an ideal course of action. For a start, there are often hefty excesses in the event of a customer damaging the vehicle – not ideal on a car that will be lent out to hundreds of different customers per year. Secondly, any claims are likely to bump up the cost of the policy its self considerably: an increase profit-strapped dealers could do without. With customers own insurance often not covering other vehicles, too, working out the most cost effective option can be surprisingly difficult. One company, DayInsure, may just have the answer. A short-term insurance specialist, DayInsure has long been providing temporary cover for car, van and motorhome drivers via its website. The cover is quick and easy to set up, and underwritten by insurance companies you can trust. So many have taken advantage of DayInsure’s offerings, in fact that over four million policies have been underwritten so far – and counting! Now, the firm has launched a new, timesaving
‘‘
‘Our daily insurance offering surpasses any solution in the marketplace.
feature to its range of products – DayInsure Connect. Integrating the DayInsure product line with ADP’s popular Autoline dealer management system, DayInsure connect helps dealers instantaneously arrange cover for any of the vehicles in the dealership stock – saving time and effort, and ensuring that any courtesy cars are covered outside of the standard motor trade licence. Connect is the brainchild of Dayinsure founder Dennis Ryan – a former dealer principal with 25 years of experience in the trade. ‘We have first-hand
knowledge of the challenges that face dealerships today,’ says Ryan. ‘That’s why, working together with ADP, we have created an innovative yet competitively priced software solution designed to truly improve efficiency for motor dealers, as well as boost their bottom line.’ Ryan suggests that the solution doesn’t just benefit dealers, but customers too – who may be wary of insuring a courtesy car on their own policies. ‘Our daily insurance offering surpasses any solution in the marketplace, protecting both the dealership’s own motor trade policy and the customer’s personal policy.’ Don’t use ADP’s system? Don’t worry – Dayinsure’s services will soon be available to all dealers, regardless of which dealer management system they use. What’s more, policies taken out through the system are underwritten by one of the biggest names in the business: Allianz. ‘Allianz is delighted to be working in partnership with Dayinsure.com to offer an immediate solution to suit the short-term insurance needs of ADP’s customers,’ comments Neil Clutterbuck, director for underwriting and technical at Allianz Commercial. ‘We have over 100 years of knowledge and expertise in the UK insurance market, with over 30 years of insuring motor trade businesses of all sizes. As the Commercial Insurer of the Year – twice running – motor retailers can be assured that Dayinsure Connect provides peace of mind that they will be covered for however long their customers require.’ When affordable cover from a trustworthy company is available with such ease, the prospect of handing out courtesy cars suddenly makes far more sense. Not only is it far less of a headache for dealers to arrange, but they should reap the results when it comes to keeping customers happy. CarDealerMag.co.uk | 59
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Improving profit margins and retention since 2003 ��| CarDealerMag.co.uk
focus on.
Tools of the Trade
WMS proves safe and sound is the way to go WMS GROUP
W: wmsgroupuk.com T: 01844 293817
W
arranties can often be overlooked as an expense rather than a profit making tool and it is this misconception which has seen many dealer principals struggle to transform their businesses from breaking even into being highly profitable. Although one of the youngest warranty companies operating in the UK today, the WMS Group has built their business on providing exceptional products and dealer support, and currently work with almost 4,000 vehicle retailers including many of the country’s largest franchises helping to maximise product penetration, customer retention and ultimately profitability. Whereas once upselling on a warranty was considered a bonus, these add-on products with a high perceived value are fast becoming integral to sales processes as the way of generating that allimportant profit. With the right cover, such products will continue to generate countless revenue boosting opportunities including at the point of sale, repair work carried out under the terms of the product, servicing to keep the plan valid and again at the point of renewal. The company tell us those dealerships which have embraced the art of upselling are continuing to achieve an average upsell conversion rate of between 60 and 70 per cent, which for many is resulting in around a 400 per cent ROI. One example of this is independent dealer First4Car.com of Pudsey, Leeds who made a staggering gross profit of more than £6,000 from the sale of their warranty products in January alone! The Group is continuing to see unprecedented growth as last year their turnover increased by 24.9 per cent which can be partly attributed to the increase in the sale of older vehicles, due to dealers rethinking their stock profiles out of necessity. Franchises for instance, are currently seeing that those ‘too good to trade’ vehicles which would have traditionally ended up at auction, represent a vital profit opportunity to fulfil the demand created during the recession, where customers needed to change their vehicle as they struggled with personal finances.
From left to right: Sports pundit Jake Humphrey; the face of WMS’s ‘Safe and Sound’ scheme, Stirling Moss; and WMS director Eric Stone. The three are pictured at the launch of Bristol Cars partnering with WMS’s Safe and Sound scheme FIVE MINUTES WITH...
Eric Stone, director at WMS Do you have a number one top tip for selling your warranty products? No but we have several! They’re on page 9 of our newspaper Fast Lane (enclosed) and if dealers follow them then they will see some very profitable results. Why should dealers choose you for warranty cover? There are many reasons, but the main one is that we will work with them to achieve the results they need. We’ve helped thousands of dealers to improve their profit by as much as 30 per cent and customer retention significantly.
WMS has grown rapidly over the past few years. What can you pinpoint this to? Taking on new key account managers to expand our coverage which helped us sign up several large franchises; repositioning ourselves in the market; offering a complete range of protection products; receiving hundreds of referrals and not being afraid to stand out. What does the future hold for the WMS Group? One day every other vehicle will come with a warranty from the WMS Group, but until then we’re going to keep concentrating on offering the best products, services and training that we can to help dealerships improve their products sales, customer care and margin.
CarDealerMag.co.uk | 61
Remember the 80’s? Cars have changed a lot since then and so has our technology, but our trusted name for quality products is still the same. Supagard was formed in 1988 by Brian Quinn and John Orrick who are still involved in the company today. $QG ZH¶UH VWLOO DV NHHQ WR IRUJH QHZ SDUWQHUVKLSV DV ZKHQ %ULDQ DQG -RKQ ¿ UVW VWDUWHG RXW VR JLYH XV D FDOO WRGD\ DQG ¿ QG RXW KRZ \RX FDQ EHQH¿ W IURP ZRUNLQJ ZLWK WKH 8. PDUNHW OHDGHU LQ SDLQW DQG IDEULF SURWHFWLRQ
Supagard Limited 19-27 Gavinton Street, Muirend, Glasgow G44 3EF. Tel: 0141 633 5933. Fax: 0141 637 7219
www.supagard.co.uk
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Tools of the Trade
The product which customers keep turning to Supagard
P
W: supagard.co.uk T: 0141 633 5933
aint protection products have long been a staple of aftersales revenue – and that’s thanks in part to how much customers love the products. With their new pride and joy shining proudly in the showroom next to them, it’s easy to understand and appreciate the benefits that paint protection products can offer. After all, who wouldn’t want to keep their car looking like it has come fresh out of the factory? There’s a great deal of choice in the market, though – so much so that customers are starting to become brand perceptive to the various different choices advertised in each dealership they visit. Selecting a supplier for your business, then, is a task that shouldn’t be taken lightly. Supagard, who describe themselves as the market leader in the paint and fabric protection industry, are certainly a company worth considering. ‘We’ve been in business for 25 years now,’ General Manager James Smyth tell us, ‘and so I think it’s fair to say we’ve got the benefit of wisdom and experience behind us!’ 1988 was the year the firm launched, bringing to market an exciting new product – the likes of which the motor industry had never seen before. ‘It was effectively a polymer sealant, formulated by an American man called Eric Knorpe,’ says Smyth. ‘What was innovative then is still what keeps us the market leaders today – the fact that all that’s required is a single-stage application.’ With that said, Smyth tells us proudly that the product has changed considerably since its debut in 1988 – owing both to the constant refinements the firm makes, and the changes made to help the product better suit modern, water-based paintwork. ‘It does still come down to three main ingredients, regardless of the
refinements we’ve made,’ says Smyth. ‘Essentially, the the product carries out three main duties – cleaning, preserving and protecting the paintwork in one single application. Speaking more technically, it comes down to a calcium carbonate that cleans, a polymer that preserves, and finally an elastic that does the protection. They’re all combined in a secret recipe that keeps us at number one in the market.’ It might sound technical, but the benefits of Supagard are much easier to get to grips with. For starters, speed. ‘Prepping cars with Supagard takes just 30 minutes,’ Smyth tells us. ‘Other products tend to need a lot of preparation time, but that’s where Supagard comes into its own. It’s just a case of washing and drying the car, then applying the product in one application. Simple.’ It’s not just easy for dealership staff to get to grips with, though – the lack of ongoing maintenance means that customers can be quickly won over too. ‘All we say to customers is, “Just wash it” – that’s all they need to do in order to keep the car looking its best. Once Supagard is applied, that’s it – nothing else needs to be done to keep up the protection. ‘Every customer gets given a handover kit with a few nice additions in, including a PH-neutral shampoo that adds an extra barrier on top of the initial protection, but in essence all they need to do is give the car a quick going over with a bucket and a sponge to keep the car looking great.’ Supagard are so confident of the product’s staying power that it’s secured with a three year warranty –
great peace of mind for customers. ‘To be honest we believe it exceeds that,’ says Smyth, ‘it’s more a case that after three years people generally think about getting rid of their cars – it’s more of a guarantee limited by logic than any technical reasons!’ The biggest tick in Supagard’s box, it could be argued, is manufacturer endorsement. Over 20 OEMs endorse both Supagard’s paint and interior protection products, and many even re-sell them under their own branding. ‘It’s a real testament to the versatility of the product actually,’ says Smyth. ‘Each manufacturer has their own testing process for this sort of product, and so the fact that we’ve managed to cater to 20 different ones is impressive in its self!.’ The company isn’t resting on its laurels either – with Smyth promising me that they’re soon to introduce a revolutionary new product that’s six times stronger than its nearest rivals. ‘The chemical make-up of the product has changed, but the people haven’t,’ adds Smyth. ‘The company is still operated by the same owners that started it all those years ago, and we’re still based in Glasgow where things began. ‘We’ve kept that customer focus, too – our customers are still very much top of the list, and that’s something that will still be true another 25 years from now!’
CarDealerMag.co.uk | 63
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Tools of the Trade
The car portal which offers everything you could want CarSite
W: carsite.co.uk T: 01213 553576
W
hat’s in a name? Rather a lot, evidently, as successful car portal CarSite has very quickly discovered. Already well-established under the name of BuyYourCar.co.uk, the firm has recently undergone a rebrand – and the results have been spectacular. ‘We always knew that our previous name was an issue,’ managing director David Long tells us. ‘When we started the site all those years ago as BuyYourCar, the name made a great deal more sense for us as a company.’ As time went by though, and websites with similar names doing very different tasks began to spring up, Long and the team knew it was time for a change – and change they did, snappily rebranding the business to CarSite. ‘It’s actually made a tremendous difference to our traffic already,’ says Long. ‘The transition went really well, and the results we’re seeing couldn’t be much better. We were hovering around 20,000 to 25,000 visits per day to the site – now that’s effectively tripled, simply from the name change.’ The knock-on effect of that is a great deal more views for adverts – whether they be for new, used or leased vehicles, or things like fixed services and MOTs. Thankfully, what hasn’t changed is the site’s pricing. Still as affordable as before, CarSite is in effect now three times better value than it was previously – with no increase in prices. ‘In essence, the things that made BuyYourCar so successful have carried straight over into CarSite – and they’ve improved,’ says Long. ‘Our listings in Google are higher up the page, which is a big boost – in fact for most searches we’re now second in the rankings only to one portal that’s considerably more expensive to advertise on.’ New and used vehicles isn’t all that CarSite advertises, of course – with the website offering a diverse range of comparable services to boot. One of note in particular is the recently launched MOT and Servicing section, helping service departments get their standard pricing and offers across to customers. ‘There’s still no other comparison site within the UK where somebody can go and enter their make, model and location, and instantly be told the
services, offers and prices of garages local to them,’ says Long. ‘Trouble is, the general public won’t pick up the phone to speak to dealers anymore, and dealers don’t tend to advertise their service pricing – it’s just not something that’s been traditionally done, and they’ve been missing out on a great deal of business. ‘With car insurance it’s a given fact that you’ll go to a comparison site and get a quote before you buy anything – it’s almost strange not to buy insurance that way these days. It’s all a bit psychological, I suppose – by giving customers the options there and then, they feel like they’ve shopped around and got the best deal, and as a result are satisfied with the price. ‘So, dealers get enquiries, customers feel like they’re about to pay a reasonable price – win win. ‘The feedback we’ve had over the past month for the service has been excellent, too. Everything’s
‘‘
With car insurance it’s a given fact that you’ll go to a comparison site and get a quote before you buy anything. bedded in a bit now and, although obviously we spent a lot of time on relaunching the site, we’ve kept an eye on how things are going and it all looks very positive. It can only grow from here, too!’ So, if you weren’t already using BuyYourCar for at least one of your services, CarSite is most definitely worth a look. The site’s search engine position speaks for itself, and with such impressive levels of exposure for relatively little advertising outlay, CarSite seems to make more sense than ever before. CarDealerMag.co.uk | 65
focus on.
Tools of the Trade
Meet the training experts BABCOCK
W: babcockinternational.com/automotivetraining T: 0870 013 0325
W
hen it comes to operating a dealership, often it’s not the premises or the stock that marks the most expensive – and arguably the most valuable – part of the business. Staffing is absolutely key: they’re the people that keep the business operating, interact with customers and provide the great service that ever dealer strives to offer. Training those key people, then, is a highly important operation – and one that shouldn’t be taken lightly. Babcock International Group is one such company that knows all about the importance of training. The UK’s leading training provider, they already
deliver apprenticeship programmes to many of the big names in automotive – such as Volkswagen Group, Ferrari, BMW, Hyundai, Fiat, Mazda, Mini and more. Babcock’s automotive apprenticeships are workbased, which means that candidates train on the job, under the guidance of a Babcock Vocational Learning Adviser (VLA), who pays each learner regular visits to assess what they’ve learned and give extra guidance and support. Training programmes are designed to give maximum benefits and minimum disruption to businesses – meaning that day-to-day dealership operations can continue while new staff are trained. Babcock uses extensive experience with leading names to deliver the kind of training that 21st
century organisations really need in order to remain competitive. What’s more, the group’s 15 new regional assessment centres provide more hands-on approach to matching apprentices to their new employment roles – ensuring that every business gets the right person to suit their needs. So impressive are the results that Babcock qualified over 3,000 learners in the last five years – all of which are now in employment – and the firm offers an average return on investment of £12,000. Babcock offers a wide range of apprenticeships – Level 2 and Level 3 (Advanced) in Service Technician, Body & Paint, Parts Technician or Customer Service roles – so why not get in touch to see how they can help with your training needs.
Drive your business forward with Automotive Apprenticeships Babcock is the UK’s leading training provider to the automotive industry. We offer a range of apprenticeships, tailor-made to suit business needs. Courses include Service Technician, Vehicle Body Repair, Paint Technician, Parts Advisor and Customer Service. With over 120 years of experience in engineering, Babcock supports training programmes for clients including: ř ř ř ř ř
Volkswagen Group Ferrari BMW Hyundai Fiat
Ĺ™ Ĺ™ Ĺ™ Ĺ™ Ĺ™
Mazda Subaru Chrysler Isuzu MINI
Ĺ™ John Deere Ĺ™ Plus many independent garages UK wide
7R Ć‚QG RXW PRUH DERXW RXU SURJUDPPHV DQG RXU IUHH UHFUXLWPHQW VHUYLFH contact Babcock on: Telephone: 0870 013 0325, Email: automotive@babcock.co.uk Web: www.babcock.co.uk/automotivetraining www.facebook.com/babcocktraining www.twitter.com/babcocktraining
Airports
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Training
05/03/2013 14:55:14
Don’t let filth put off buyers KARCHER
C
W: karcher.co.uk T: 01295 752 142
leaning might not be the core of any dealer’s business, but that’s not to say it should be overlooked – and certainly not ignored. Whether it’s cars or premises, dealers cannot afford to let customers be put off by filth, but it’s hard to get a good balance of product costs, man hours and results. Karcher, the world’s largest manufacturer of cleaning equipment, suggests that it has the right cleaning solution for virtually any task – whether that involves scrubbing the showroom floor or giving a customer’s car some well earned TLC. For inside, the firm’s range of scrubber driers are perfect for cleaning hard floor surfaces quickly
and efficiently– ensuring that your showroom and service areas are always seen in the best light. Need a vacuum cleaner? No problem: Karcher has an all-purpose range designed for any and every eventuality, whether that involves cleaning up dry or wet material – meaning that you can concentrate on the job at hand and not worry about clogging filters. It’s not just the insides of a dealership that are important, though: the forecourt outside is the gateway to your front door, so keeping things clean and tidy externally are just as vital to encouraging footfall. Karcher’s sweepers are ideal for ensuring that forecourts are kept clean and tidy, while a wide
range of pressure washers – arguably the firm’s most recognisable product – ensure that there’s a model for every price point and business size. Hot water pressure washers are something Karcher is particularly proud of: laying claim to having invented the concept ‘many decades ago’. Washing cars and premises using hot water, the firm suggests, not only cuts through the dirt more effectively, but cuts drying time – with the warm water evaporating more rapidly and saving time. Many even have a steam function for added dirtshifting abilities. Whatever the cleaning need, it’s likely that Karcher will have a solution – contact them for details on how they can help.
Time is money. Save both with a Kärcher Hot Water High-Pressure Cleaner. By increasing the supplied water temperature to up to 80°C for general cleaning or up to 150°C for steam cleaning, Kärcher hot water high-pressure cleaners offer a number of significant benefits to cleaning with cold water: � � � � � �
Faster cleaning – up to 40% quicker than cleaning with cold water Improved results – shorter drying time means fewer streaks More versatility – can be used in cold, hot or steam mode Gentler – less impact pressure needed for sensitive surfaces More effective – hot water emulsifies to oil and grease Better for the environment – reduced need for detergents
For more information on how Kärcher can make a difference to your business, call 01295 752142, email hds@karcher.co.uk or visit www.karcher.co.uk
www.karcher.co.uk
CarDealerMag.co.uk | 67
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Tools of the Trade
Keep your cars spick n’ span NCC
W: nationalcarclean.co.uk T: 01268 56 50 50
K
eeping vehicles spick and span is something every dealer needs to think about – whether they like it or not. Inevitably dirty cars mean disinterested customers, and go absolutely nowhere when it comes to helping the car sell its self. There is a flip-side to the issue, however: the problem of washing vehicles that don’t necessarily need to be cleaned. Managing which vehicles need cleaning and when can be a nightmare – particularly in dealerships with expansive levels of stock. One company, National Car Cleaning, suggests it may just have the answer. Introducing a state-of-the-art web management system to accompany its valeting services, the firm promises to make the process of cleaning cars not
only more efficient, but more cost effective. ‘There’s a danger in any dealership of losing track of which cars have been prepped and which haven’t,’ NCC’s Justin Macal tells us. ‘The majority of the time, we find that it’s isn’t necessarily a case of vehicles not being cleaned often enough, but completely the opposite!’ While arguably it’s safer to have a car cleaned unnecessarily rather than not at all, the costs of prepping vehicles can quickly add up – so it’s doubly important that the time and effort of cleaning vehicles isn’t wasted. NCC’s valet data system has been designed with that in mind. Storing the details of each vehicle on the dealership’s books, it provides data on when and to what level the each car was lasted cleaned.
From that data, dealers can make a decision about how to progress – whether the car needs a full or partial valet, a quick freshen up, or even any attention in the first place. ‘We look after the management side of the system,’ says Macal, ‘simply because no dealer has the time to be worrying about what was cleaned when!’ The system, currently a bolt-on to NCC’s vehicle preparation services, can even provide daily, weekly or monthly reports on the dealership’s cleaning operations – removing some of the awkward financial legwork further down the line. So, the system can not only improve the efficiency of a dealer’s vehicle preparation concerns, but can also save a money – two factors that could make NCC’s system an absolute must-have.
we clean more, you pay less! Our underlying aim is to offer the most cost effective service we can. As a family company defined by traditional values, NCC have established a reputation for exceptional service. Rule out the competition and contact us today to take advantage of a modern business dedicated to adding value.
Call us NOW on 01268 56 50 50 Visit: www.nationalcarclean.co.uk Email: sales@nationalcarclean.co.uk
2012 AWARD WINNER
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A new way to buy and sell BUYMYCAR
S
W: buymycar.com T: 0800 888 60 80
ourcing used stock can be a complete headache for dealers. Not only is the industry going through a period where there’s a distinct shortage of good quality, quickly resaleable vehicles, but demand for used cars is at rather a high. Finding vehicles to sell, it seems, is becoming a real issue. While, for some, nothing beats a good day out at the local (or not-so-local) auction houses, it does become hard to justify an entire day away from the premises to acquire stock – particularly when there’s an ever-present fear of returning empty handed. One recently launched website, BuyMyCar.com, thinks it may just have a solution. Designed with both dealers and consumers in mind, BuyMyCar is something of a new idea in the
industry – but one that could very quickly add up. The site takes its inspiration from the handful of other websites offering car owners an instant cash sum for their vehicles – a format which has proved particularly popular in the UK. Unlike many other ‘We Buy Cars’ websites though – which offer strict valuations and buy vehicles directly from owners – BuyMyCar puts sellers back in touch with dealers themselves, allowing them to make offers directly to the seller. Once an owner posts an advert on the site for their car, dealers signed up to the site will immediately receive an alert via email to inform them a new vehicle is available. Make an offer on a vehicle and the seller will then be alerted too – quid. If they accept, it’s a just case of arranging a
collection with them and handing over the agreed amount – simple and easy. Everything is done online instantly, and so sales can happen within a matter of minutes – a fantastic timesaver for dealers. Compare that to turning up at an auction for a full day to only come away with one vehicle, and BuyMyCar may start to make a lot of sense. What’s more, the site is designed to appeal to sellers who want to shift a car quickly – and expect to get no more than trade prices in return. There are no buyers fees at the time of writing, either – and any future costs are likely to be negligible. In other words, it’s inexpensive, could save a lot of time and hassle, and could well be worth a look next time you’re looking for used stock. [CD]
CarDealerMag.co.uk | 69
DATA FILE.
Thestatistics n
SMMT Sales Data
n
Taking Stock
March represents business as usual say dealers We speak to two dealers about the important plate-change month
Mark Lavery
James Litton
The new car market in 2013 is showing good improvement year on year and we don’t expect to see March any differently. The manufacturers are putting particularly good accessibility programmes i.e. low deposit, low monthly payments and sometimes including maintenance packages on lots of new cars. There is an argument to suggest there has never been a better time to purchase a new vehicle. We aren’t seeing any signs of superstitious purchasers not wanting the 13 reg plate. Whilst it is still early, we think March will produce a good result.
We are lucky in the Mercedes network, we have a resurgent product and extremely aggressive finance campaigns. March is therefore easier for us than it might have been for some. However, I am not sat here puffing Castro’s finest with my feet on the desk. There is still a long way to go, Mercedes are targeting specific cars within our objective making strategic deal control challenging. We are also feeling the heat from our German competitors who have reacted to our quest for market share. Still, give me these problems over no showroom traffic any day…
Chief executive of Cambria Automobiles
Sales manager of Tony Purslow, Mercedes-Benz, Guildford
Sales continue to rise, despite traditional February behaviour NEW car registrations rose 7.9 per cent in February 2013, according to the SMMT – now the 12th successive month of growth. 66,749 units were registered in February 2013, while registrations year-to-date were up 10.3 per cent to 210,392. In fact, so strong was the growth that February secured the highest private-market growth since the end of the Scrappage Scheme in 2010. The growth comes in spite of the fact that February is typically the quietest month for registrations across the year – as buyers and fleets wait for the registration plate change in March. It’s thought that the sudden boost may come ��| CarDealerMag.co.uk
from a flood of buyers attempting to avoid this year’s March ’13′ plate – not necessarily for superstitious reasons, but perhaps even out of a fear of resale values, according to research by Carbuzz.co.uk. ‘UK new car registrations have risen every month for the last year with February continuing the trend, growing 7.9 per cent year-on-year boosted by the highest increase in private consumer demand since spring 2010,’ said Mike Baunton, interim chief executive of the SMMT. ‘However, February is traditionally a low volume month as motorists look forward to the plate-change in March, but attractive new car
deals are sustaining the market. New models are delivering ever greater fuel efficiency, practicality, refinement, technology and predictable ownership costs, so motorists are seeing the benefit of new car purchases.’ Despite the plate change, the SMMT isn’t predicting a slump for March 2013 however – but a slight rise over last year instead. Richard Lowe, head of retail and wholesale at Barclays, also suggests that registration figures will remain positive. ‘We expect sales to continue to hold firm. The 13-plate is already proving popular with many of our clients,’ he commented.
SMMT sales data Feb/year to date
SUZUKI +100.34%
February Marque
Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Dacia 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
2013
29 190 18 2,962 34 3,276 249 69 2,822 33 1,506 10,005 1,948 2,966 0 266 72 2,123 1,106 174 1 10 839 3,382 9 1,124 380 3,796 20 3,689 119 2 943 0 932 1,757 174 45 45 1,172 2,028 8,957 6,609 810 44 14 66,749
% market share
0.04 0.28 0.03 4.44 0.05 4.91 0.37 0.10 4.23 0.05 2.26 14.99 2.92 4.44 0.00 0.40 0.11 3.18 1.66 0.26 0.00 0.01 1.26 5.07 0.01 1.68 0.57 5.69 0.03 5.53 0.18 0.00 1.41 0.00 1.40 2.63 0.26 0.07 0.07 1.76
3.04 13.42 9.90 1.21 0.07 0.02
2012
Figures supplied by SMMT
Year to date (YTD) % market share
2013 % Change
31 231 33 3,983 24 3,248 475 50 2,549 0 1,443 8,957 1,350 1,980 9 198 80 1,751 828 207 2 15 1,055 2,969 103 1,260 130 3,210 17 3,160 159 13 1,415 5 837 1,653 131 19 154 585 1,972 7,102 7,528 865 51 31 61,868
INFINITI -100%
0.05 0.37 0.05 6.44 0.04 5.25 0.77 0.08 4.12 0.00 2.33 14.48 2.18 3.20 0.01 0.32 0.13 2.83 1.34 0.33 0.00 0.02 1.71 4.80 0.17 2.04 0.21 5.19 0.03 5.11 0.26 0.02 2.29 0.01 1.35 2.67 0.21 0.03 0.25 0.95
3.19 11.48 12.17 1.40 0.08 0.05
-6.45 -17.75 -45.45 -25.63 41.67 0.86 -47.58 38.00 10.71 0.00 4.37 11.70 44.30 49.80 -100.00 34.34 -10.00 21.25 33.57 -15.94 -50.00 -33.33 -20.47 13.91 -91.26 -10.79 192.31 18.26 17.65 16.74 -25.16 -84.62 -33.36 -100.00 11.35 6.29 32.82 136.84 -70.78 100.34 2.84 26.12 -12.21 -6.36 -13.73 -54.84 7.89
112 522 118 12,810 114 9,555 947 212 7,581 327 4,857 29,645 5,673 7,829 16 1,473 194 6,596 5,771 711 5 35 2,983 10,132 40 2,784 858 13,273 43 11,403 563 4 3,313 1 3,629 5,793 477 73 150 2,867 8,140 27,210 18,169 3,190 117 77 210,392
%market share
0.05 0.25 0.06 6.09 0.05 4.54 0.45 0.10 3.60 0.16 2.31 14.09 2.70 3.72 0.01 0.70 0.09 3.14 2.74 0.34 0.00 0.02 1.42 4.82 0.02 1.32 0.41 6.31 0.02 5.42 0.27 0.00 1.57 0.00 1.72 2.75 0.23 0.03 0.07 1.36
3.87 12.93 8.64 1.52 0.06 0.04
2012
%market share % Change
80 769 96 12,546 131 9,497 2,539 148 6,590 0 4,329 29,018 4,613 6,046 42 1,113 238 6,033 4,320 948 25 51 2,839 9,242 210 2,855 685 9,495 52 10,442 568 36 4,217 9 3,267 5,371 516 62 378 1,770 7,728 19,212 19,117 3,238 115 125 190,721
0.04 0.40 0.05 6.58 0.07 4.98 1.33 0.08 3.46 0.00 2.27 15.21 2.42 3.17 0.02 0.58 0.12 3.16 2.27 0.50 0.01 0.03 1.49 4.85 0.11 1.50 0.36 4.98 0.03 5.48 0.30 0.02 2.21 0.00 1.71 2.82 0.27 0.03 0.20 0.93
4.05 10.07 10.02 1.70 0.06 0.07
40.00 -32.12 22.92 2.10 -12.98 0.61 -62.70 43.24 15.04 0.00 12.20 2.16 22.98 29.49 -61.90 32.35 -18.49 9.33 33.59 -25.00 -80.00 -31.37 5.07 9.63 -80.95 -2.49 25.26 39.79 -17.31 9.20 -0.88 -88.89 -21.44 -88.89 11.08 7.86 -7.56 17.74 -60.32 61.98 5.33 41.63 -4.96 -1.48 1.74 -38.40 10.31
SMMT HAS REMOVED DAIHATSU AS THEY registered no new vehicles in 2012. A new entry for 2013 is dacia CarDealerMag.co.uk | 71
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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.
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TAKING STOCK. In the first of a new series, we ask two industry experts what dealers should be paying attention to in the months ahead
‘Springtime ‘Demand for sees buyers budget cars after droptops’ remains high ’ says Simon Henstock, BCA’s UK network operations director
says Dermot Kelleher, Motors.co.uk’s head of business intelligence
S
pringtime is just around the corner and the clocks go forward at the end of March. In anticipation, car buyers are moving away from a demand for four wheel drive vehicles, instead thinking ahead to the longer days and warmer nights, as searches for used convertibles tip the balance. In January, searches for Range Rovers increased by 283 per cent in just a week, as snowed-in motorists struggled to cope with arctic conditions. But as we feel the final effects of winter’s icy grip, car buyers are already altering their search habits in favour of convertible cars. With sunny weather predicted, the latest Motors.co.uk statistics show that searches for convertibles have increased by 11 per cent in February, compared with January. Conversely, the winter
workhorses, like 4x4s and pickups, have both seen a decline in searches, down nine per cent and 13 per cent respectively month-on-month. In addition, following the annual national excitement at the first signs of spring weather, cars of bright and earthy spring-like colours, such as yellow, green and white, are proving the most sought after. In fact, they’ve each shown an increase of between 21 and 30 per cent between January and February. And buyers have dropped their winter blues, with searches for darker colours such as black and blue falling by 12 per cent as a result. Now is the time to ensure that the roof is down on any convertibles and that green, white or yellow cars are advertised with images to attract buyers and capitalise on this seasonallymotivated consumer behaviour.
A
verage used car values remained above £7,000 for the third consecutive month as the market continued to be short of retail quality stock. Year-on-year values were up by a significant 13 per cent. Prices are high largely as a result of the constricted supply, and – seasonal variations aside – we should expect a similar picture across much of 2013. With the March plate change now in full swing and more confidence in the retail new car market, we expect to see significantly higher volumes and much greater choice for buyers at auction over the next few weeks. Condition is far more important than mileage. Currently a car’s condition is proving to be the factor which results in a car selling or sticking around. Well maintained
cars are passing through the market quickly and are driving off dealers’ forecourts. However, it is notable that average mileage has fallen over the past year with this being apparent in both fleet/lease cars and dealer part-exchange stock. One area of the market which is proving to continually rise is the budget, ‘value for money’ end. No doubt, the current economic conditions are doing their best to make this market really appealing. We are seeing this sector fast becoming the ‘hot one’ with the most prevalent buyers being the ones who have small budgets and need a car quickly. In fact, for the time being at least, we do not see an end to this market’s popularity. [CD]
Bright colours
30%
Dark colours
12%
Soft tops
11%
4x4s
9%
Pickups
13%
CarDealerMag.co.uk | 73
data file.
FEBRUARYSEARCHES
Percentage of total number of searches on TheVanWebsite.co.uk for the month Mercedes-Benz Sprinter
4.83%
New Transit Connect moves the game on Ford replaces much-loved Transit Connect with impressive new version
Ford Transit
5.12% Fiat Scudo
2.05% Mercedes-Benz Vito
4.44% Volkswagen Transporter
3.71%
Citroen Berlingo
2.37% Vauxhall Vivaro
2.89% Ford Transit Connect
3.60% Mitsubishi L200
4.19% Fiat Ducato
2.83%
F
ORD has revealed the new Transit Connect – replacing the current model, and bringing the firm’s van range fully up to date. The new Transit Connect, replacing a model introduced in 2002, is said to have ‘best in class’ load carrying abilities and ‘outstanding’ fuel economy – meaning that cost of ownership is greatly improved over the current model. The new Connect comes laden with safety equipment – including Active City Stop and Load Adaptive Controlled ESP – with Ford undoubtedly hoping it will follow its Transit Custom bigger brother into a five star Euro NCAP crash rating. Engines will include the ‘highly efficient’ 1.6-litre TDCi diesel with up to 112BHP, the acclaimed 1.0-litre EcoBoost petrol found in
our long-term B-Max, or a 1.6-litre EcoBoost engine equipped with a PowerShift automatic gearbox. Start-Stop should be available on all models at launch, helping to bring down emissions even further. Also included is Ford’s SYNC in-car connectivity system, which communicates over Bluetooth to the driver’s mobile phone to relay text messages and provide voice dialling. The system can even telephone the emergency services in the event of a crash, and relay information about the van’s location and its level of damage. As before, the Transit Connect will be available in Van, DoubleCab-in-Van and ‘Kombi’; the latter of which can seat anything from five to seven people in comfort. And both short and long wheelbase options are available. Deliveries of the new Connect will begin towards the end of 2013.
Sparkling vans make drivers better VAN drivers are better drivers when their van is clean – and their favourite radio station is Radio 2, according to the 2013 Nissan Van Report. Of 250 drivers, 63 per cent of drivers said they couldn’t live without their radio in their vehicle and when they tune in, 23 per cent choose Radio 2. Surprisingly, more van drivers listen to Classic
FM than Radio 5 Live and seven per cent list Talk Sport as their favourite station. The research also showed that van cleanliness is not a laughing matter with 92 per cent of drivers suggesting they feel better when driving a clean vehicle, and three out of four (72 per cent) believe it actually makes them a better driver.
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DEALFINDER. Latest finance deals on COMMERCIALS
van in its segment to be handed a fivestar crash rating by Euro NCAP, while technology like Ford’s SYNC system will make day-to-day life that bit easier. One leasing deal puts the Custom Low Roof 100PS at £185.71 per month over 59 months for business users, with a deposit of £1,114.26 and final payment of £4,972.50. Type bit.ly/TransitDealApril into your browser for more details.
MERCEDES-BENZ CITAN MERCEDES-BENZ has long offered competitive and well-designed vans – both the medium-sized Vito and larger Sprinter receiving great acclaim over their near 20-year lifespans. The only van missing from the range, arguably, is something a little smaller – a void that the new Citan should fill very well indeed. Based on the alreadycapable Renault Kangoo and modified heavily by Mercedes-Benz, the Citan
could well be the perfect fit for smaller businesses – or those that need a van ideal for city environments. The Citan comes in three different lengths with varying payloads, so there’s sure to be a model that suits every need. One leasing deal puts the ultra-economical 108 CDI BlueEFFICIENCY at £226 per month for 48 months – with a deposit of £1,356. Type bit.ly/CitanDealApril into your browser for more details.
FORD RANGER FORD’s Ranger has long been a favourite for commercial vehicle drivers – with an impressive cost-to-ownership ratio and practical flatbed adding up to a package that was difficult to beat. Ford seemed to disagree, though – recently launching a brand new version that’s said to be even better. There’s even an impressive new fourwheel-drive system to help the new Ranger tackle any conditions, while new
COOL CONVERSIONS
CV Show set to be great
FORD TRANSIT CUSTOM THE Ford Transit is a bit of an icon in Britain. When the time came for Ford to develop a replacement for the current model, they certainly had their work cut out for them – but it certainly looks like they’ve delivered. The Transit Custom, as it’s now called, is arguably the smartestlooking version yet, and has plenty of innovation to match. It’s the first and only
Lawton
trim levels mean that even mid-spec models now come with niceties such as Bluetooth, heated windscreens and rainsensing wipers. One leasing deal puts the double cab Ranger XLT with four-wheeldrive up at £264.41 per month over 48 months for business users – with a deposit of £1,586.46 and final payment of £7,177.50. Type bit.ly/RangerDealApril into your browser for more details.
T
he Commercial Vehicle Show is just around the corner – undoubtedly the most important date in the diary for anyone involved in the commercial vehicle industry. This year’s show takes place on April 9-11 at Birmingham’s NEC, and is spread out over three of the venue’s biggest halls – 3A, 4 and 5. Most, if not all, of the great and good of the commercial vehicle world will be exhibiting – including most light commercial vehicle manufacturers. Last year saw the Ford Transit Custom wow the crowds, and the Blue Oval will again have a strong offering with the all-new Transit set for an appearance. Away from Ford, Mercedes-Benz will be hoping to cause a stir with its new Citan van, while Mini makes an appearance for the very first time with their new Clubvan. To reflect the CV Show’s growing importance outside of the UK, this year’s show will be the first to achieve ‘international’ status. The automotive industry’s global body, OICA has recognised the CV Show as one of only eight worldwide specialist shows, joining the likes of the similar events held in Hanover and Amsterdam. Providing the backdrop to the show is a healthy start to van registrations in 2013. The first two months of the year saw van registrations top 25,000 units, up 11.9 per cent on the same period in 2012, according to figures released by the SMMT. While it’s undoubtedly still a tough market, the combination of the biggest CV Show yet and improving van registrations should set the industry up for a positive summer. Here’s hoping so anyway. If you’re one of the 16,000-plus people planning to attend the show, make sure you visit Stand 3H89, Hall 3A where you’ll find TheVanWebsite.co.uk.
‘The CV Show will see the great and the good exhibiting.’
Who is Richard Lawton?
Richard is marketing manager for Really Good Domains and on the team at TheVanWebsite. co.uk and ContractHireAndLeasing.com. Contact: richardl@reallygooddomains.com
Call 0161 482 7650
for your 3-month trial or visit thevanwebsite.co.uk/trial CarDealerMag.co.uk | 75
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auctions.
CAP warns used stock is ‘dangerously low’ bit.ly/CAPstocklow
February 2013 shows strong 13 per cent rise BCA’s latest report shows another strong month for the market
expensive car. ‘Despite values being at record levels, however, there remains an underlying fragility in the marketplace reflecting the difficult on-going economic conditions.’ Henstock suggested however that, while strong average values are the current norm, the market may not be able to sustain such growth as time goes on. ‘We know from experience that values cannot keep rising and there will inevitably be an adjustment,’ he said. ‘How this will manifest itself is impossible to judge at this stage, but with the Easter break often representing a watershed in demand we might see some pressure on values in April.’
Values drop across UK auction houses AVERAGE values for sales across auction houses dropped in January, according to the National Association of Motor Auctions (NAMA). NAMA’s monthly report for January shows that average values across auction house sales actually dropped in January – decreasing from £5,402 to £4,856, equivalent to an 10.7 per cent fall in values. The drop, says NAMA, can mainly be attributed to an influx of older cars – particularly exchanged Car dealerpart cowboy ads vehicles, 8/3/13
auction stations
Sticking AND twisting
W
U
sed car values are up 13 per cent year on year, according to BCA’s Pulse Report for February. Average used car values stayed above £7,000 for the third month in a row with cars averaging £7,056 across the board – significantly ahead of February 2012, if slightly behind January 2013. February 2013 actually recorded the third highest monthly average since BCA’s reports began in 2005, with fleet and lease values in particularly reaching new heights. Average part exchange values also stayed strong – above £3,500 for the third consecutive month. ‘The rise in average prices at the ‘valuefor-money’ end of the market must be a reflection of the current economic conditions,’ said BCA’s operations director, Simon Henstock. ‘There is likely to be continued demand for ‘budget motoring’ from drivers who simply cannot afford to buy a more
Henstock
whose average values dropped eight per cent. Manufacturer or rental sourced vehicle values dropped by five per cent, too, though ex-fleet sales remained fairly stable with just a 0.6 per cent drop . ‘There continues to be strong competition amongst buyers for the most desirable vehicles and this shows no sign of waning,’ said NAMA executive committee member Tony Gannon. 09:32 Page 1
No cowboys. Just Just trade trade professionals. professionals.
ith many dealers searching for good retail quality stock it is likely many cars taken in part-exchange will be put straight back on the forecourt during March. For any cars that do not fit the retail profile or create an overstock situation, auction must be the first port of call. Anecdotal feedback suggests cars can sit on the forecourt for six months without having a tyre kicked, yet can make fortunes in the wholesale arena. BCA’s latest Pulse data show that values for part-ex vehicles at auction have improved sharply over recent months, reaching a new average high of £3,580 in January. Year-on-year, values were ahead by £660 — a 22.6 per cent uplift compared to January 2012. There is likely to be continued demand for budget motoring from drivers who cannot afford to buy a more expensive car. But for the used car seller there are always those ‘borderline’ cars, that don’t fit the typical retail profile but might attract a good retail buyer. Do you stick or twist? Put it on the forecourt and hope, or cash it in via the wholesale market? Many dealers are using BCA’s Appraise, Value and Sell tool, which lets you do both by keeping the vehicle in the retail space while offering it online on a BCA Bid Now or Buy Now site. The vehicle appears within BCA’s Auction View search engine, exposing it to thousands of trade buyers with images, description and condition report. You can expose the vehicle to retail buyers and dedicated trade buyers (desperately short of stock currently) at the same time. You can have your cake and eat it too!
Who is Simon Henstock?
Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.
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
CarDealerMag.co.uk | 77
TRADER TALK
..in association with AutoTrader
Metrics take the guess work out Dealers need to keep up with the dynamics of an ever-changing market
T
hese days the business of retailing used cars is complex. Successful operations are those with a retail focus who understand the changes in consumer behaviour, have a strong online and mobile presence, use market data, consider the relevant metrics for success, take care when dealing with part exchange vehicles and regularly review sourcing and pricing strategies. The used car market is not static. It is dynamic and constantly evolving to meet the challenges of this ever-changing market. Dealers need to think of themselves as retailers. They need to study local retail demand to understand which cars to buy and need to understand retail pricing to determine how much to pay for these cars. Those who use the right market data in the right way will be able to identify what stock’s hot and what’s not, at any given point. The key performance indicators include metrics that track consumer demand, measure stock turn and identify the potential gross profit margin. The biggest challenge facing used car dealers in today’s market is changing behaviour of consumers. The internet has empowered consumers by providing a wealth of market information and insight so they can undertake all the research they need to, before visiting a
‘Car buyers are turning up with greater knowledge than ever before.’ dealer. Consumers use online tools to search for cars and research shows that consumers are researching online much more than ever before. They are searching for cars using not just PCs but increasingly also mobile devices, including tablets. Trust in the internet has improved and dealers say car buyers turn up at the dealerships with greater knowledge than ever before. However few, if any, dealers have a data intelligence unit and the average stock turn of about seven times a year is not a great return on capital employed. By analysing demand trends and pricing, dealers have increased stock to 11 times a year. Much faster stock turn results in an ability and agility to respond to changes in consumer demand and retail price movements. 2012 was a challenging year for many dealers with the economic uncertainty and an ever
changing used car market and the prospects for this year seem little better. So dealers need to do all they can to maximise their used car operations. Success is usually measured by the traditional margin, stock turn and gross profit metrics but changes in consumer behaviour mean that new metrics also need to be introduced into the equation and the emerging metrics of desirability rating, cost to retail and price position are critical. They will establish if a car is in demand in the local market, recommend the price at which the car should be bought to give a realistic margin and determine the optimum selling price. These additional metrics will strengthen a used car operation by ensuring a dealer has the correct stock profile at the right price with a healthy margin which will increase stock turn,
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
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ON TRACK.
..in association with Tracker
Outwit those pesky car thieves Offer devices that are resilient to jamming technology at point of sale
C
ar theft has moved on since the days of jimmying a door open with a coat hanger — car makers and thieves are today locked in a battle of wits. As the manufacturers evolve tougher security systems to protect vehicles, the thieves ratchet up their attempts to bypass them. In this game of cat and mouse there seems to only be one loser — the car owner. Take GPS jammers for instance. Easily available over the internet, they can be used to block the GPS and GSM signals that most Stolen Vehicle Recovery (SVR) systems rely upon. While the use of jammers is illegal, because of a legal loophole it is not illegal to buy them. A recent study had engineers monitoring traffic on a dual carriageway outside London. They uncovered the systematic use of jammers, with 10 incidents per day on some roads. In most cases these were drivers trying to evade on-board monitoring systems; however their widespread use goes to show how easily criminals can block an SVR system which relies solely on GPS and GSM. So it’s not surprising that many car buyers are worried that the car they have just bought might be stolen. And it’s this fear that presents a unique opportunity to provide your customer with peace of mind that their vehicle is protected, as well as boost your profit margins. Tracker’s SVR offering is unique in that it combines GSM, GPS and VHF technology in
‘Adding tracking systems to an aftersales proposition can generate substantial profit.’ one unit, to create a robust tracking device with a real USP for your customers — it is resilient to jamming technology. Utilised by all 52 police forces in the UK, Tracker’s innovative SVR systems act like a homing device and enable the police to pinpoint a stolen vehicle, even if it is hidden in a container or garage where a system based solely on GSM/ GPS could not operate. So who is best placed to let car buyers know of the options available to them to protect their new purchases? You. Most dealers wouldn’t think twice about offering a product which will protect paintwork or fabric at the point of sale; however SVR systems are often something of an afterthought which is left to the customer. Adding tracking systems to an aftersales proposition can generate substantial profit; there is certainly money to be made for dealers selling Tracker. We offer not only a traditional margin but
also a percentage of the subscription that dealers collect for us, making Tracker just as profitable — if not more so — to sell as other aftersales products. And if your customer purchases a Tracker unit which then recovers their stolen vehicle, this will build customer loyalty to your dealership and keep customers coming back. The statistics speak for themselves. To date Tracker has recovered more than 21,582 stolen vehicles — worth a staggering £466 million — since 1993. Each month Tracker helps to recover an average £2 million worth of stolen vehicles. It has also led the police to arrest 2,249 car thieves.
Who is David Wilson? David is sales and service director for Tracker. Read his column here every month.
C A L L O U R D E D I C AT E D T R A C K E R D E A L E R S U P P O RT T E A M TO DAY
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CarDealerMag.co.uk | 79 18/3/13 12:55:27
MOTOR MOUTH.
..in association with Motors.co.uk
Dealers need to be Open all Hours Consumers want to enquire at all hours – so dealers need to be open
T
he modern consumer is empowered. They know their rights and how to search around when customer service is not up to scratch and response times are not quick enough. With people increasingly sending enquiries out of hours and from mobile devices, it is important to build the channels with which to respond effectively. But, it isn’t enough to invest in modern communications technology; you have to know how to use it as well. This might mean operating out of hours, introducing new channels through which to communicate and investing in the latest technology. But, most importantly, it involves understanding that the customer enquiry is the most valuable asset a dealership can have; nurture it and you generate a sale, ignore it and you lose out. The big message for motor dealers is clear; consumers expect dealers to be open for business whenever they want to buy or enquire about their products and services. In January 2013, research by Motors.co.uk showed that 27 per cent of possible sales leads were missed by dealers due to phone calls going unanswered. Perhaps sales staff do not consider the phone ringing to be the number one priority; perhaps they expect the customer will call back. Our January 2013 data suggests strongly otherwise, with 48 per cent of callers not receiving an answer first time of asking never calling that dealer back. Likewise, details captured over the Christmas
‘Visits to the Motors.co.uk website via iPads rose by 62 per cent between December 25.’ period showed that 62 car buyers rang Motors. co.uk dealers on Christmas Day. In addition, visits to the Motors.co.uk website via mobile devices such as iPads rose by 62 per cent between December 25 and 27 December, access to the site via Android smartphones increased by a significant 485 per cent compared to the same period in 2011. In separate research, of 40 dealerships approached by the Motors.co.uk team on Twitter, just 12 responded to requests for information on their latest deals and only half of those managed to do so within an hour. Four dealers directed the interested consumer back to their website with no additional information, two asked the consumer to phone them and one asked for a follow in order to have a conversation over DM – Twitter’s private instant messaging function. In addition, just two of those dealers suggested specific cars which might be of interest to our
Twitter consumers and only three tried to engage in a conversation. Customer service is vital. In an age where a reputation can be wiped out by a negative review online in seconds, it is important to provide customers with as near to immediate response as possible. As a society, we are increasingly impatient and when we don’t get the desired response straight away, we look elsewhere. It is no different in the motor industry. If customers don’t get a quick response from a dealer about the availability of an advertised vehicle, they will move on to their next choice without a second thought. Ultimately, it doesn’t matter what channel you are using, the old adage of putting the customer first still rings true.
TheisE The Eye Motors. Motors.co.uk complete complete respo tracking tracking syste The Eye is
Motors.co.uk’s The Eye is complete response Motors.co.uk’s tracking system complete response Who is Andy Coulthurst? The Eye is tracking system The Eye The is EyeMotors.co.uk’s is complete response Motors.co.uk’s The Eye is Motors.co.uk’s tracking system complete response Motors.co.uk’s complete response tracking system system complete response tracking tracking system It monitors vehicle views and gives you
ears too. With detailed call informatio Andy is managing director of download, monitor and trackreports’. your callA It monitors vehicle views and gives you live ‘response too. With detailed information and full call recording Motors.co.uk. Read hisears thoughts herecall Best all, you this world-class trac download, monitor and trackof your callsget instantly and accura part of your advertising package with M every month.
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MARKET INSIGHT.
..in association with ASE-global.com
Dealerships are set to become less reliant on product cycles
cent of total registrations and narrowly beating France to second place behind Germany. The trend continues into January 2013 with the overall market off a further nine per cent from the already low levels of 2012 and Germany causing further concern with an 8.6 per cent fall which contrasts sharply with the UK’s strong 11.5 per cent increase. Even in these austere, credit crunch times, the UK new car market remains strong when compared to those around Europe. LOOKING BEHIND THE HEADLINES So those are the headlines, but what about actual dealer performance? Again the UK appears in a strong position with a national average return on sales of 1.2 per cent in 2012 which compares very favourably with the long term 10-year average of just 0.8 per cent (source: ASE). This is in marked contrast to parts of Europe where over 50 per cent of dealers are in loss. Indeed, in some countries, with some
% Increase in registrations 2012 v 2011
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manufacturers, this is running at over 80 per cent. European dealers mainly ‘live or die’ according to the strength of their associated brand’s position in the market. A dip in new car sales quickly hits the bottom line of the dealer, as most costs of running a dealership are fixed and there is not a strong performance from used cars and aftersales to support the results. This lack of focus on the used car sector is further exacerbated by a lack of willing used vehicle finance providers to fund stock. The trend in the UK actively to seek out the right stock at the right price has helped drive steady income throughout the year and support the performance due to gains in new car volumes. Of greater concern is the gradual decline in the contribution to results made by the aftersales departments and this continues to be an area of focus for the average UK dealer. WHAT DOES THIS MEAN TO THE UK? The UK market is currently soaking up a significant proportion of excess European new vehicle capacity and this is showing no signs of abating. The expectation is that this will continue
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‘We are faring much better than most of our European neighbours.’
+10.0
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T
he barrage of media headlines would suggest that a triple-dip recession is either already with us or on its way. The expectation is that we must surely catch the cold of our European neighbours and yet in the motor retail world this is so far proving not to be the case. The charts illustrate the size of the problem in Europe, with 2012 registrations across the EU region down 8.2 per cent compared to 2011 led by deepening issues in France, Italy and Spain, who all recorded in excess of double-digit percentage falls. Very few countries exhibit any real growth, with the UK proving a notable exception showing growth of around five per cent. Even the mighty Germany shows increasing signs of a slowdown with a three per cent fall over the year and the picture getting worse rather than better as the year progresses. The second graph illustrates the importance of the UK market to the EU overall taking 17 per
EU NEW CAR MARKET
Ge
More focus is needed on contributions from aftersales departments
provided the right offer is made to the consumer — indeed volumes could increase further if the fleet market also starts to deliver in line with its historical share. As ever of course there are risks that need to be considered including the recent weakening of sterling against the euro. Whilst the rest of Europe continues to under perform so significantly it appears the manufacturers will need to absorb any cost increases arising from this. The vehicles must be sold somewhere after all and demand is depressed in most other parts of the EU. Of course the ever-present risk of a forced market in the UK (i.e. pre-registration activity) is also a consideration although to date the problem does not appear to be significant — the lessons of 2008 are still fresh in dealers’ and manufacturers’ minds. The UK is far from perfect, there is a lot of hard work to do to turn around the fortunes of many dealers, but we are faring much better than most of our European neighbours. We do foresee dealerships continuing to focus on gaining control over their own fortunes and becoming less reliant on the franchiser’s product cycles.
Who is Steve Freeman? He’s managing partner of ASE Professional Services. If you want to talk to him about his column call 01908 847 025 CarDealerMag.co.uk | 81
data file.
James Litton TRADER TALES
Beware a scandal over finance agreements
I
‘We have to get back to retailing with the proper emphasis on the customer.’
James is sales manager at Tony Purslow Mercedes Benz, Guildford. He always has something to say about the industry he loves. ��| CarDealerMag.co.uk
Apprenticeship training Babcock
have written about brokers many times. I have made it clear that I find them the parasites of the motor industry. However, there would be no brokers if there was no need for them. So how does this need arise? My concern revolves around the retail sales process. Twenty years ago, customers ordered what they wanted and paid in a way which suited them. Today, we generally tell them what they can have and build deals including financial products which are not necessarily appropriate. Qualitative elements of the sales process like static demonstrations and test drives are often hurried, with the close hastened without any proper qualification. In light of the PPI scandal, I wonder how long it will be before a customer with a finance agreement, realises they have tyre and MoT insurance, two years into the term. I struggle to believe that our consumer friendly laws will allow signed demands and needs statements to provide safe haven from no win-no fee litigators. Building assumptive figures to change is exactly the same as including PPI on a loan repayment. If I had a tenner for every time I asked a salesman whether a car was a build or physical, I could retire the Glasses Guide and relax on a beach somewhere. We are constantly pushing people into new cars with alternative specifications, encouraging them with discounts for immediate delivery. Therefore, even if a customer is service and not price led, they end up with a sales experience which is distressful and pressurising. Brokers give customers the experience of yesteryear, albeit on line instead of face to face. They can decide whether to push the button and order or not, all from the comfort of their living room! I see customers on a Saturday afternoon who come in and take a keen look at a model, but refuse all offers of assistance. I am convinced these are the broker customers who do not even give us a chance. We have to get back to retailing with the proper emphasis on the customer.
Who is James Litton?
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the fleet.
WELCOME TO THE FLEET... Second report:
Second report
James Baggott becomes a Ford salesman thanks to the brilliant B-Max
Mal Hay checks in to a luxurious, Japanese-themed hotel room...
FordB-MAX I
was convinced it was a prang. The way the old chap and his wife were inspecting the back end of my B-Max in the Ikea car park surely meant only one thing – reversing fail after too many (horse)meat balls. But as I got closer, I realised Dave and Maureen (yes, I even found out their names), weren’t looking for a bent bumper at all, they were simply checking our baby Ford out for size. “This is the one you can dive through, isn’t it?’ asked Dave, as I approached. Yes, if you feel so inclined, you can put the B-Max on its side, dangle it above a swimming pool, and dive through it in your budgie smugglers Dave if that’s what you really fancy. It’s far better to drive though… Dave didn’t see the funny side. He was far more interested in what the B-Max is like to live with. Well, Dave, it’s bleeding brilliant. I’m very conscious that I already sound like an extremely grateful journalist who’s been loaned a car for six months – I would say good things, wouldn’t I? Well, the problem is even when I try not to be gushing
about the B-Max I end up doing it anyway. Dave and Maureen were looking to replace their aging Ford Mondeo for something smaller. I told them the B-Max would be ideal. They were shocked when I explained that all it had under the bonnet was a 1.0-litre engine too. The Ecoboost is one of the best things to come out of Ford since the Fiesta XR2 (that’s a good thing, I’ve got one). It’s extremely economical, surprisingly nippy and entertaining to drive and makes a brilliant noise. Dave and Maureen were impressed and promised to go and try one. I really should be on commission… So, with another few thousand miles on the clock, is there anything that’s starting to grate? Well, I still find the fact there’s no way to remotely lock the doors or open them without getting the key out of your pocket a pain. And while I’m moaning, I’m not a huge fan of the heated windscreen as, although it’s very useful, it makes oncoming headlights starburst. But apart from that, it’s all good in Camp B-Max.
the knowledge Model: Ford B-Max Titanium Price: £18,720 (as tested) Engine: 1.0-litre, petrol Power: 117bhp, 200Nm Max speed: 117mph 0-60mph: 11.2s MPG (comb’d): 57.7 ��| CarDealerMag.co.uk
NissanX-TRAIL I
f there are two things the Car Dealer crew get to see a lot of, it’s car interiors and hotel rooms. So, as I pulled into some motorway services for a quick kip after several hours spent in stationary traffic, my mind went wandering. £59.99 seemed like a lot of cash for a few hours in a homogenous roadside motel of the sort preferred by lonely sales reps and bosses having it off with their secretaries. But the luxurious interior of our X-Trail 2.0dCi Tekna long-termer has always been warm, welcoming and comfortable so I got to thinking how the two compared. Well, check-in was easy. No receptionist with a poor grasp of English to deal with, just a quick click of the remote central locking fob and I was in my ‘room’ for the night. Then with a quick turn of the Nissan’s intelligent key my room was powered up and I had instant access to my creature comforts and in-room entertainment. My plush electrically-powered
leather driver’s seat made for a very comfortable bed, gliding back effortlessly until it was near flat like and the built-in bum warmers took the chill off and helped keep the Chalfonts at bay. Then, with my drink conveniently stowed in my chilled cup-holder, I turned on my phone’s Bluetooth, paired it with the genius Nissan Connect system and was soon listening to my Spotify playlist through nine glorious Bose speakers. Later, after gliding back upwards in my electric bed seat, I found the cavernous and hugely convenient storage compartment atop the X-Trail’s dash made the perfect stand for my iPad and soon I was watching live Champion’s League football on Sky Sports. All-in-all then, the Nissan compared very favourably with the hotel – for the occasional night, at least. OK, so there’s no toilet or shower, but what else was I missing? A trouser press or a mini-kettle with a lead that’s too short perhaps? I should probably add that, mechanically there’s nothing to report. It hasn’t put a foot wrong.
the knowledge Emissions: 139g/km Mileage this month: 786 Costs this month: £0 This month’s highlight The B-Max introduces you to new friends with names like ‘Dave’ and ‘Maureen’.
Model: Nissan X-Trail 2.0dCi 173 Tekna Price: £29,590 (as tested) Engine: 2.0-litre, diesel Power: 171bhp, 360Nm Max speed: 124mph MPG (comb’d): 44.1
0-60mph: 9.8s Emissions: 168g/km Mileage this month: 2,583 Costs this month: £0 This month’s highlight The dashboard can actually prop-up an iPad.
longtermers
Second report
First report
French car fan James Batchelor finds the 208 to be typically gallic
Dave Brown says a very big hello to the latest member of the fleet
Peugeot 208 B
efore I became a ponce and bought a bright blue Mini Cooper S, I spent my fair share of my student life in Citroens. First all of all there was the Citroen C2 1.4 Furio handed down from mother. It was a horny little thing. With its two-tone interior, racy body-kit and unblemished wheel trims, it was the envy of hardly no-one. Sadly, it had the flappy-paddle gearbox called Sensodrive. It did its best to ruin the whole ownership experience by either refusing to select gear or cutting power on motorways. It wasn’t what you’d call the most dependable of cars. Still, I part-exchanged it for a Citroen C2 Code. For those that remember, the Code was basically the hot VTS model complete with a 125bhp 1.6-litre engine. But the Code has some sumptuous off-cuts of Dale Winton for seats, and wheel centre caps from a Citroen C6. It was a lad’s hot hatch with a whiff of Hyacinth Bucket about it. That was a marvellous thing, but it had the awful characteristic of a
floppy gearchange and a horribly high biting point. If I wasn’t paying attention, I could be found kangeroo-jumping down high streets, desperately trying to select second gear. And this, quite neatly I think, brings me onto KR62 VPO, for it has a floppy gearchange and a clutch with a biting point that’s so high it does ruinous things to your calf muscles. It’s quite hateful in this respect. And even more so when accelerating from second in the expectation of changing to third, there’s a blip from the engine as if it’s stuttering. It’s no real problem but it is quite disconcerting. However, I adore the dinky steering wheel. It reminds me of those go-karts at the learning to drive attraction at Legoland. Sneaking around town clutching the small steering wheel creates silly amounts of fun. Many complaints have been made by others in the media about it – the wheel either blocks out the speedo or it’s in your lap. There’s no half-way house. I don’t care – all I’m interested in is why don’t all cars have small wheels?
the knowledge Model: Peugeot 208 Active Vti 1.2 Price: £14,550 (as tested) Engine: 1.2-litre, petrol Power: 82bhp, 118Nm Max speed: 109mph MPG (comb’d): 65.7 0-60mph: 13.8s
OUTLANDER I
T was a trip I wasn’t exactly looking forward to. A work assignment meant I had to drive from Car Dealer Towers on the south coast to Barmouth in north west Wales – and then onto Nottingham! Hundreds of miles, several hours on the road, and two nights away with Car Dealer’s staff writer Jonny Reay. Bit like the mini-break from hell. The car we had been allocated for this journey was a new Mitsubishi Outlander, so at least we had something of a decent size and spec at our disposal. What we didn’t quite appreciate at the outset (and I say we because Jon and I shared the driving) was that the car would make our journey not only bearable but actually a breeze. We put it to the test in all kinds of driving conditions – and it certainly didn’t disappoint. Whether it was tackling the steep inclines and hairpin bends of Snowdonia, or trekking up the A34 on that well-worn route between Hampshire and the Midlands, the car was an absolute joy.
It’s also pretty responsive when it comes to dodging Welsh wildlife, roomy enough to act as a mobile office and the perfect environment in which to dine on fish and chips. New Outlander is positively bristling with technology... and we made the most of it. As Car Dealer’s resident IT guru, Jon loves all that. The Auto Stop and Go system came into its own as we negotiated Snowdonia, where there seemed to be a set of roadworks every 500 yards or so. And the Adaptive Cruise Control made motorway driving much less tiring than it usually is, although by saying that I’m probably showing my age. (You are – Ed.) Mitsubishi’s new design language means the car boasts softer lines, uncluttered surfaces and a general air of quiet confidence. So Jon and I accepted our mission, made the trip and enjoyed the stunning scenery of Snowdonia and the east Midlands in comfort and safety. And despite this, not a single Welsh sheep was harmed in the process. [CD]
the knowledge Emissions: 104g/km Mileage this month: 600 Costs this month: £0 This month’s highlight The steering wheel. It’s so small. It really is a joy to use. Yes, really, believe us.
Model: Mitsubishi Outlander GX4 Price: £29,999 (as tested) Engine: 2.2-litre, turbo diesel Power: 147bhp, 380Nm Max speed: 118mph MPG (comb’d): 48.7 0-60mph: 11.5
Emissions: 153g/km Mileage this month: 680 Costs this month: £0 This month’s highlight Mitsibishi’s latest SUV is actually rather good at negotiating tight Welsh hairpin bends. CarDealerMag.co.uk | 85
workshops.
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MOT failure rates soar due to hopeful attitude Consumers hope for the best at MOT test time, says Halfords Autocentres
M
OT failure rates have soared in the last two years, according to Halfords Autocentres. Two in five vehicles failed their MOTs at the firm’s centres from April 2011 to March 2012 – more than100,000 more than in the same period 12 months earlier. Halfords puts this down to a lack of basic maintenance, as customers fail to even give their vehicles a quick once-over before test day. The firm’s research suggests that a third of British motorists follow a ‘hope for the best’ attitude when taking a car in for an MOT – something that costs
them time and money. One in five admit they lack knowledge surrounding MOTs, too, therefore failing to see any issues prior to testing. Halfords Autocentres’ Rory Carlin puts this down to the complex nature of modern cars. ‘Today’s technologically advanced cars are daunting for many motorists who state a lack of knowledge as the key reason for not attempting to identify potential issues with their cars in advance of the MOT,’ he said. ‘This is then compounded by poor communication from the people with the expertise. More than a quarter of car owners have previously been left
feeling that work that has been recommended in order to pass the MOT was unnecessary.’ Halfords also suggest that many motorists are confusing the test for a health check –neglecting to service their cars. ‘We have found some evidence of motorists using the annual MOT as a replacement for regular servicing but this is a false economy because it increases both the risk of potential damage to a vehicle and the likely repairs costs to rectify it.’
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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.
Ethics Passion Innovation Efficiency Proactivity Care Knowledge
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.
08450 212123 perfectplacement.co.uk
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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.
Better Better Better Better Better Better Better
CarDealerMag.co.uk | 87
Fast track to your future success
John Gibson Associates, the award-winning Automotive Recruitment Specialist. Our Candidates and Clients trust us. We consistently deliver the standards others strive to achieve. Contact JGA today, speak to our industry professionals and see how we can help drive your future success.
Tel: 0845 644 3003 Email: info@jgauk.com Web: www.jgauk.com THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS ��| CarDealerMag.co.uk
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data fiLe.
W
Clocks springing forward will bring feel-good-factor
hen the last Sunday of March passes it can only mean one thing: British summertime is coming, the clocks are changing and the UK will now see more daylight than that endured over the past 22 weeks. While the practice of changing the clocks has divided opinion among many citizens, one thing is for sure; we all look forward to losing an hour in bed on this occasion in exchange for some brighter times! For some industries; including our own, a change in season and weather conditions are just what we need to entice customers away from their televisions and winter hot-pots to more proactive activities such as browsing the internet or a trip out of their house to go and purchase a new vehicle. The UK retail sector is one area that fell victim to the snowfall in the early parts of this year with a decrease in sales of 0.6 per cent from December 2012. And not surprisingly the biggest contributor to this figure was the lower amounts spent at petrol stations as people either couldn’t or wouldn’t venture out so frequently. The pleasing news is that the feel-good-factor is about to arrive, and with some of the tougher early months of the year now well behind us, our concentration and focus can now turn to both making and taking advantage of the opportunities that lay ahead in the coming brighter months of the year. On the numerous dealer visits I have completed this year, it is very evident that an increasing number of businesses have a real appetite for growth. Refreshingly, not only do they have a clear vision, they are also busy
Jonathan
Such TIME IS MONEY
making plans or beginning to execute actions to help them towards their desired destination. The threat, of course to everybody else, is the impact which some of these cash rich organisations will have on the ‘rest’ as they look to hit some key geographical locations across the country with multiple advertising methods in an attempt to obtain the customers first, thus impacting others’ food sources. With a more aggressive marketplace comes an inherent need as a business to ‘stay on your toes’ with what’s going on, which can include keeping up to date with technological advances in advertising, competition activity, downward trends within your business, regularly
‘Make sure the light is shining on your business this summer’ reviewing what is working and also not being afraid to try something new. Economic conditions on the whole remain challenging, and because of this some businesses are a little prudent when it comes to expenditure, which I fully understand and endorse. However, I also believe there are plenty of advertising options available to those who aren’t so cash rich or who are a little resistant to change. They are cost effective enabling you to take a long term view and also make you a more competitive proposition for future customers. We are going to have a good summer this year, make sure the light is shining on your business.
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
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FEATURE
SPECIAL
DRIVEN
Find out how to maximise the value in your Supercar shoot-out: part-ex Renaultsport’s racy new Clio 200 R8 v GT-R v C4S stock
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