Car Dealer Magazine: Issue 73 by Blackball Media

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Issue 73 | April 2014

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INSIDE: the latest gossip from geneva’s motor show halls

2014

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EDITORIAL EDITOR James Batchelor

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SUITS MANAGING DIRECTOR James Baggott

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Contributors Tim Naylor, Tim Peake, Paul Daly, Jonathan Such, Leon Poultney, Daljinder Nagra, Gareth Bethell, Jon Reay, Mal Hay, John Bowman and Diana Hargreaves.

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what you see in the Welcome. Despite pictures, on television and on YouTube, motor shows are not glamorous places for us journos. First there is the mandatory accreditation which, for me at least, took a record six weeks to be processed (it seems the Swiss find Car Dealer Magazine a little difficult to understand), and then there’s the actual press day itself. I never thought the Swiss were sticklers for time, but as Baggott and I queued patiently at the barrier to be let in, we realised the bouncers the Palexpo Geneva decided to employ were thoroughly German in their time-keeping. At precisely 07.30, the rope was lifted and it seemed France’s entire motoring media lunged from the back of the queue through to the front. My pristine blue tweed jacket took a battering, I can tell you. Through the barrier and then it was straight into the first hall – and it’s then when the heat caused by today’s painfully powerful lights manufacturers use on their stands hit me. Two days before, Jaguar Land Rover sent an invitation to virtually every motoring journo in Blighty to ‘come have a coffee and some light breakfast on our stand’. Naturally, it was heaving. But it was merely a carrot – JLR wanted to launch its stand (yes, stand) designed by Ian Callum. We were treated to a 20-minute presentation about the construction and ecological benefits of JLR’s journalist/customer relaxation zones. It was awfully interesting yet quite bizarre at the same time. But then the hard work started – pounding the halls to speak to key executives. That’s the main attraction of motor shows for Car Dealer. Having so many bigwigs in one place is pure gold for a journalist’s notebook, and thanks to Geneva’s small halls it meant that this year the Car Dealer team spoke to 12 top bods. Many of the people we spoke to had similar views to

the ones expressed in last month’s Automotive Influencers issue – and that is the UK should brace itself for another year of growth. That growth is bound to come from the small car market too as there were a large number of dinky car reveals at Geneva. You can see the fruits of our labours starting from p54 – perhaps a creased tweed jacket was worth it after all. You decide. USED CAR AWARDS 2014 THE only awards do for the used car industry has returned. Accompanying last month’s Car Dealer there should have been a booklet explaining the awards in detail. If you didn’t receive one then drop me an email and we’ll post one to you, but in this month’s issue we have a digested version outlining why you need to be involved and all the categories you can enter. I really do urge you to get involved – the Car Dealer Used Car Awards are rapidly becoming one of the industry’s top events. ARNOLD’S TRAINSET THIS month we have a fascinating interview with the managing director of Arnold Clark, Eddie Hawthorne. In a candid chat with Car Dealer he tells us how he is very much aware of his role within the business – and that’s being the train driver of Sir Arnold’s trainset. It makes for an interesting read and starts on p12 – if you’d like to feature in The Car Dealer Interview then please get in touch with me. My contact details are on the left of this page. Enjoy the issue.

James Batchelor, editor

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INSIDE. ISSUE 73 I April 2014

Dashboard

Feedback

Car Dealer Club

Interview: Eddie Hawthorne Car Dealer Used Car Awards

Geneva Motor Show

Car Dealer Conference 2014

We pound the halls of the first motor show on the European calendar and speak to 12 top bigwigs to bring you the latest news

Car Dealer Power Big Mike Baggott

Driven: Jaguar’s mad new estate

07 10 12 16 22 26 41 43

Forecourt

46 BMW 4 Series Convertible & 2 Series 48 Seat Leon Cupra 52 Toyota Verso

The only awards for the used car industry return

‘‘

Features

Valeo was actually a French slang term for ‘electrical failure’

Tested: BMW’s new 4 Series Convertible and 2 Series Coupe

Big Mike

Geneva Motor Show 2014 Focus on: Motors.co.uk Focus on: CAP Focus on: Manheim

41 Data File The Statistics Taking Stock & Buyers’ Guide Auctions Trader Talk Money Matters Market Insight Suppliers’ Guide

Workshops

Arnold Clark’s MD, Eddie Hawthorne, chats to Car Dealer

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What you’re saying on Car Dealer Forum

How much value does a full service history add to a car?

What happened to motor shows? There isn’t a slot for it any more I remember as a kid the motor show, one year in London then in Birmingham. It was great seeing the likes of Ferrari etc, why did the shows stop? Williamblackshaw

After agreeing price for Mercedes we couldn’t find service book Customer came in last week to look at an Audi A3. Liked it, didn’t have time to test drive and hadn’t come in the car they wished to part-exchange but wanted the Audi, so they put down a deposit subject to test drive and me inspecting their car today. I said between £5,000 and £5,500 as the price for their car. They’ve just been in, want my car. . . their car is worth the £5,000 which they would accept, however the Mercedes B Class has no service book. They have not removed it from the car since buying it 18 months ago. All other books present – how much adjustment would you make on the value? Any? And would you hold the car while they go to see if the dealer they bought the car from will supply the full service history? Umesh I would not rely on the history turning up. Even if it does exist, what’s in it for the dealer to pull out stops to get it to you asap? Sorry. Used car seller The history isn’t likely to turn up after 18 months. I’d try to knock them a few hundred quid for the service history. If they don’t accept, get the car back on sale rather than wait for the history to turn up. Chris How old is the B Class and how many owners? Reduce the part-exchange price by £250–£500 and take the

chance that you can find some history for it. Check the service indicator as a sign that it has been serviced (some customers reset them themselves but lots don’t know how to) and check MOT history and ring around. Sometimes a few hours’ work can provide a FSH. Don’t expect anything from the dealer, if they had the book they would have sent it by now. Gavin@Rousdon Thanks for all the feedback, it’s appreciated. I explained the value difference was £1,000 – the couple agreed, however could not justify to themselves losing all that money. I said I would give the higher price if the service history turned up but I had had a couple of calls on the car. I asked did they want to buy the car even if the history didn’t turn up, they said they simply could not accept the lower figure. I said I would refund the deposit and if they could accept the lower price or the history turned up then give me a call and I’d honour the deal. (I even went down to £800 to try to close the deal!) The two callers would not leave name/contact numbers – they just kept saying they’d call back. Took a call from one of the ‘mystery callers’ – was the car sold or not? Said it was for sale and explained why, they came down and announced themselves as the ‘ mystery caller’. Long story short – sold. Umesh

Manufacturers concentrated on other markets when the tough times arrived. With big names pulling out it was impossible to keep it going. During that time, the Festival of Speed became more important and manufacturers spent their British Motor Show money elsewhere. It’d be near impossible to resurrect it as there simply isn’t a slot in the motor show calendar for it to fit now. Huge shame, especially with the resurgence in British manufacturing of cars. James Baggott

Roadside pitches on way out Car-wash places are taking over Roadside pitches are dropping like flies round here, one minute it’s all flags and this week’s special, next week it’s a car wash for £4! Not even a chance for another trader to enquire on the rent before the lads are in with their chamois. Can’t work out how they’re making it pay with so many of them and the low prices and lack of custom. Is passing trade dead? Internet and sat nav a great boon for the buyer on the lookout from home. It’s certainly happening in West Yorkshire, very sad I think. used car seller The place I worked previously was a main-road 70-car used site selling 100–120 per month 6/7 years ago. When I left last year it was struggling to sell 25-30 a month. Internet and sat nav are now the AutoTrader magazine of the past. Now working for a smaller site on the corner of a business park in the sticks, stocking 40 and doing 30 a month. Times have changed. Chris

Twitter threads of the month WHO says the motor trade can’t handle Twitter? When Mike Hind of CAP tweeted about Tesco salads being responsible for him losing weight, he didn’t expect the supermarket giant to send him a gift on the proviso that he wore it and posted a picture to Twitter. For the full story, turn to p32 – but in the meantime, this is what Twitter thought of the PR stunt. @Tesco social media team’s Twitter joke shows

motor trade how it should be done @mikeh_cap Who’s next? Philip Nothard @PhilipN_CAP @MikeH_CAP Haha! Loving it Mike! You really do pull them off :-p #DietKingMike Tesco @Tesco @MikeH_CAP @Tesco That’s amazing! #EveryLittleHelps Umesh Samani @specialistcars1 CarDealerMag.co.uk | 07

BMW Dealer of the Year 2013

The Ultimate Driving Machine

CONGRATULATIONS TO THE WINNERS. BMW DEALER AWARDS 2013. OVERALL DEALER OF THE YEAR: HALLIWELL JONES, WARRINGTON. Marketing Champion of the Year WOLLASTON NORTHAMPTON

Aftersales Dealer of the Year RYBROOK WARWICK

Corporate Sales Dealer of the Year ELMS GROUP BEDFORD, CAMBRIDGE, STANSTED

Customer Champion of the Year LLOYD CARLISLE

Used Car Dealer of the Year BAVARIAN GARAGES BELFAST

Dealer Principal of the Year RUSS TROTMAN, DICK LOVETT BRISTOL

The PLC Dealer of the Year CHANDLERS HAILSHAM

The Owner Driver Dealer of the Year SOPER OF LINCOLN

www.bmw.co.uk 08 | CarDealerMag.co.uk

DASHBOARD.

Driving costs must be kept down for teens, warns SMMT Failing to get ‘Generation Z’ interested in cars spells problems by JAMES BAGGOTT @CarDealerEd

eeping the costs of taking to the road for the first time as low as possible is in the interests of everyone in the car industry. That’s according to the SMMT chief executive, Mike Hawes, who has told Car Dealer in an exclusive interview that he’s as worried as the rest of the industry about teenagers’ waning interest in cars. Recently, key automotive leaders have raised concerns about youngsters – dubbed ‘Generation Z’ – and their lack of interest in cars. Those born after 1995 are deemed to be ‘Gen Z’ and forecasters have predicted their lack of interest in cars could cause serious problems for the car industry. ‘Everyone would be concerned if the younger generation isn’t as interested in cars as perhaps we were,’ Hawes told Car Dealer. ‘Certainly, I had a poster of cars on the wall as I was growing up, but I’m not sure to what extent younger people of today do that. There’s still a lot of interest around in cars – just look at the popularity of programmes like Top Gear – but clearly if you are a younger person the cost of driving is severe.’ Insurance for drivers just starting out can be prohibitive, sometimes costing more than four times the price of the car. Recently, ‘black box’ insurance schemes that track young drivers’ behaviour have brought

Dealer turns to Twitter for help A CAR dealer who succumbed to flood water has thanked Twitter users for coming to his rescue. Dan James, owner of Dan James Cars, and his business based near Shepperton, was hit by flooding on Christmas Day. During the crisis, Dan’s father Robert took to Twitter to shout about his son’s plight – and tens of Twitterers offered help. The response was amazing,’ said Dan. ‘Luckily we had found some storage ourselves, but many dealers offered help.’

RIDGEWAY

Maserati goes with Ridgeway

premiums down – but not by much. Hawes, pictured, added: ‘In terms of insurance we’re working with the ABI on various ways of bringing costs down, as are car manufacturers. ‘Anything we can do to try to encourage interest in the sector will also help because we want to attract young people into this business in the UK – it’s an exciting place to work, Missed the full interview with Mike Hawes? Download Issue 72 free onto your iPad. Type bit.ly/ CDMipad into a web browser

there’s a variety of careers and we need to make sure we’ve got a steady influx of young people.’ Manufacturers such as Nissan are thinking about cars that will appeal to ‘Gen Z’. Its IDx Freeflow and IDx Nismo concepts – designed to create interest among young teens – were unveiled at last year’s Tokyo Motor Show. Andy Palmer, Nissan’s global product mastermind, said: ‘This is a way to look at Gen Z 14- and 15-yearolds and learn how they behave. Why aren’t they interested in cars, and what can we do to change that?’

Buyers’ trend of downsizing to upgrade ‘will continue’ The trend for car-buyers downsizing into smaller, more efficient cars is set to continue for some time to come, believes the SMMT. Talking exclusively to Car Dealer Magazine, chief executive Mike Hawes said consumers would continue to look for cheaper ways to get on the road – and it’s in this super-

flooding

mini sector where traders can make big gains. ‘I think the trend will continue,’ said Hawes. ‘A newer car today can be significantly more efficient than one that dates back four or five years, so the actual cost of ownership for running that car is a lot less and that can be an incentive to purchase.’

With improvements in economy and cheap finance deals, it often makes financial sense for motorists to upgrade their cars. Hawes added: ‘The overall trend – and we’re not just talking about the UK – is a move towards smaller, more fuel-efficient vehicles and we see that continuing.’

MASERATI has appointed Ridgeway to operate its newest dealership in Oxford. The appointment brings Maserati’s dealer network to 19 – and six of those have been in the last nine months. Ridgeway Maserati will initially operate from a temporary showroom on Cumnor Hill, Cumnor, Oxford from March 2014 before moving into a dedicated stand-alone Maserati car showroom. Ridgeway chief John O’Hanlon said: ‘Maserati is the perfect fit for Ridgeway.

vertu

Infiniti to open in Newcastle DEALER Group Vertu is to open an Infiniti Centre in Newcastle later this year. The new centre, located at Silverlink Retail Park in Newcastle, will cover the areas of Tyne and Wear, County Durham and Teesside, and will create 25 new jobs. Redevelopment work on the site is set to begin imminently. CarDealerMag.co.uk | 09

DASHBOARD. FEATURE.

Ask Lawgistics

Apprentice warning

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

Our garage sells fuel as well as cars. A customer put £20 worth of fuel in their car (not sold by us) and now says it broke down because of fuel contamination. Neither we nor our supplier had other complaints so we do not believe it to be a problem with our product. The first we knew of the allegations was three weeks later when the customer’s credit card company wrote to us. The customer made a claim to them for £1,200 for repairs that they say was caused by contaminated fuel. His card company are quoting Section 75 of the Consumer Credit Act as the customer paid for the fuel and the repairs via his credit card. Where do we stand? Section 75 of the Consumer Credit Act can make the card provider as liable as the supplier of defective goods or services. However, their value has to be over £100. Even if the fuel was contaminated, the value was not over the £100 threshold. Insofar as our client was concerned, the value of damage was irrelevant, only the value of the goods that may have caused that damage is important.

Firstly, the customer has no Section 75 claim to make against his credit card provider and so they ought now to have no involvement in the matter. There could still have been a breach of contract claim for £1,220 against our client, though, but where was the evidence? Unfortunately, following the well reported problem that certain supermarkets experienced with fuel contamination several years ago, some people try to make the same allegation when anything goes wrong with their car shortly after fuelling. If there really is contamination, it won’t be isolated to one vehicle – it will be evident because of many problems shortly after fuelling. In this case there was no analysis of any sample of the fuel disclosed, let alone any analysis that showed the fuel having come from the garage in question. The repairs had already been done so the old parts were not available for inspection. We thought the customer was ‘trying it on’ and advised refusal of any liability and no goodwill offer to settle. Seemingly there was no goodwill on the part of the customer who had made by what we believe to be a speculative claim.

.com

I am taking on my first apprentice but have been warned by other dealers that apprentices hold more rights than other employees when it comes to dismissal. Is this right? Under the Apprenticeship, Skills, Children and Learning Act 2009, apprentices should be signed up to a tripartite ‘apprenticeship agreement’. The idea of these new agreements are to protect employers from the previous burden they faced when looking to terminate an apprenticeship early. Apprenticeship agreements focus the relationship on providing training to the individual. This agreement must incorporate the apprentice’s key terms of employment, as you would in a standard Section 1 statement, but also incorporate the terms of the training to be undertaken during the period the apprentice is with you. As apprenticeships are a fixed term agreement, they usually cannot be terminated early. However under this act, if an apprentice is employed under an apprentice agreement, and not a contract of apprenticeship then termination can take place as with any other employee. This, however, has not yet been tested in the tribunal system and so we would still advise caution around apprentices.

TUPE changes are untested by tribunal

I have heard that the law has changed in relation to the transfer of service contracts under the TUPE regulations. What are these and what does that mean for my business? There are a number of changes that are being introduced to the Transfer of Undertakings (Protection

of Employment) regulations, including changes to ‘service provision’ transfers, when you decide to move work away from a third-party contractor (for example a cleaning company) to another third-party contractor or to bring it in house. Whilst the rules have not been abolished as originally

ADVICE

anticipated, the new rules state that a service provision change will only be covered by the regulations if the activities carried out by the new company are ‘fundamentally the same’ as the previous provider. If they are not, then the regulations will not apply. Case law has yet to dictate how this will be interpreted through tribunals.

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Andrew Cawdrey uses his £39.99 membership to ensure he stays one step ahead of the customer AS WELL as keeping your business protected when having a bumpy ride with a customer, it is important that you keep your customer happy and put them first. This is why it is important to know your own legal rights, as well as doing everything you can to ensure your customer feels safe and can trust your business. For small independent traders and multi-franchise dealers alike, knowledge of the latest legal requirements is vital, as Andrew Cawdrey of Unicorn Motors Ltd in Manchester discovered. ‘I was delighted with Lawgistics’ quick response and initial advice. My issue was resolved and I felt assured that I had dealt with it in the most appropriate way, even though it resulted in me handing a customer some money,’ Cawdrey said. Thanks to the service and the help from Lawgistics that Cawdrey gets free with his £39.99 membership, he has managed to keep both him and his customer safe and happy. As Unicorn Motors Ltd is a small trader, only employing one other member of staff, there was no need for it to upgrade to the ‘small business pack’. However, Cawdrey was certain that he was going to call Lawgistics on

his next issue. After having problems with an incident a couple of months ago, Cawdrey was reading his Car Dealer Magazine where he found helpful advice which saw him signing up to the service and resolving the problem for both him and his customer. Cawdrey said: ‘I need help when it comes to some of the laws. ‘It is getting harder and harder to understand and anyone can go on to Google to find out what they need. Lawgistics offers me the exact help and advice I need.’ Sometimes, Cawdrey and other members of Car Dealer Club can find all the information they need to resolve their problem on the magazines ‘Ask Lawgistics’ page. Cawdrey said how helpful that had been to him. He said: ‘I always read the two-page spread explaining what people have been through and how they have resolved their issues and I find that very helpful.’ Selling over 150 cars a year for the last two years, it is important Unicorn Cars stays on the right side of the law – thanks to Lawgistics they can do just that. ‘Definitely, yes!’ said Cawdrey, when asked if he would advise people like himself to join Car Dealer Club.

LAWGISTICS’ basic membership – which you receive as a member of Car Dealer Club – is a cracking deal but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that Club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the small business package (normally £595) – perfect for sole traders, a partnership or a small dealer group – and £250 off the professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all areas of legal law and documentation. There’s a package for everyone with Lawgistics.

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INTERVIEW.

I realise it’s Sir Arnold’s trainset and I am just the train driver Arnold Clark chief executive Eddie Hawthorne gives JAMES BATCHELOR his views on making a business pay as he leads the company’s rapid expansion towards selling 300,000 cars a year

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ddie Hawthorne is not a car guy. He’s adamant on this. The way a car works just doesn’t interest him. He’s not alone in the motor trade, though – but he does draw the line at cars being just lumps of metal ripe for selling. ‘I’m not a petrolhead,’ he says. ‘Cars are a stockin trade for me. Don’t get me wrong though, I like a nice car as much as the next person – but just don’t ask me how many miles to the gallon a car does!’ It’s probably a good way to be when you’re the managing director of one of the UK’s leading car dealer groups – Arnold Clark. The business was founded in 1954 by Arnold Clark (knighted in 2004) after he got a flavour for car selling by purchasing a Morris Ten Four for £70 and selling it for a profit. He opened the company’s first premises on Park Road in Glasgow and, 60 years later, the business turns over in excess of £1.5bn and has more than 200 dealerships, 130 service centres, 40 accident and repair centres and 13 parts centres. Hawthorne’s attitude towards cars isn’t surprising though when you dig further into his history. In 1986 he joined the audit department of Arthur Young, Glasgow, before qualifying as a chartered accountant three years later. And it was then that he made his biggest career move. ‘What enticed me to Arnold Clark was that I

was a frustrated chartered accountant who was the auditor of the Arnold Clark organisation,’ Hawthorne explains. ‘I was doing the audits in 1989 and Sir Arnold said to me: “I’ll see you next year” and I replied: “No you won’t, I’m off to do something else in the industry”. ‘About 25 minutes later he gave me a job and I was starting with him. It’s a day I’ll never forget – I always think he got me a wee bit cheap but he is a good car salesman!’ Hawthorne strongly believes the world of car retailing back in the late-1980s differs little from that of nowadays. ‘There’s no real difference to car retailing – it’s very much the same today as it was 25 years ago,’ he says. ‘There weren’t such strong PCPs around but simpler HPs and personal loans were the thing to sell. There was a slightly higher margin with new cars and fewer quality standards – it was the days before the year 2000 and block exemption changing when everybody was worried about Tesco,

Asda and all the big supermarkets coming into cars. ‘But, in terms of treating customers properly and giving them great value for money, nothing has really changed.’ Hawthorne had a leading role in helping the business grow massively during the 1990s and in 1998 he took the top job – the position of managing director. ‘In the early years of me becoming MD, Sir Arnold was very much hands-on,’ Hawthorne explains. ‘I probably was the junior, but as time has moved on and he has become more comfortable with the way I run the business, I have had more leeway. ‘I speak to him two or three times a quarter now and tell him what I would like to do and he is quite happy with it. ‘I have free rein to run the business in the way he taught me to do it. ‘I have always realised and accepted that it’s his trainset and I am merely the train driver. ‘You can do nothing but respect Sir Arnold – he started the business with virtually nothing and it is now one of the leading car retailers in Europe. ‘Sir Arnold has taught me how to keep things simple. If you understand what you’re trying to achieve, your staff will understand – and also your customers. ‘That’s not to decry anyone’s intelligence, but

the more complex the system, product or offer, nobody understands it.’ That approach seems to be working – last year was a record year for Arnold Clark. ‘2013 was a really good year for us – in fact, it was our best year in our history in terms of car retailing,’ says Hawthorne. ‘We achieved this through a combination of factors – continuing low interest rates and healthy residual values kept used car values and finance rates strong. There was also a large amount of customer confidence.’ But, like many dealers across the UK, Hawthorne was surprised by how successfully the budget Dacia brand gripped customers. ‘We went from a standing start to selling 2,500 Dacias last year. ‘It proves that a price segment and a particular offering can appeal to customers. ‘The only real reservation we had before selling them was the margin we were having to work with – but we have managed to overcome this. ‘We are finding we are selling higher-range models rather than the entry-level cars and we are consequently making more money from them.’ Looking ahead, what’s Hawthorne’s plan to continues Arnold Clark’s current success? ‘Well, we’re trying to increase used car sales,’ he says. ‘We’ve fallen behind our plan for opening

I think we went a wee bit Banzai with acquisitions in 2012, I think we had a bit too much money in the bank CarDealerMag.co.uk | 13

INTERVIEW.

I don’t do memos, I speak to people up a used car outlet – we currently have 15 of them – and we’re looking for another five this year.’ And that acquisition trend has also been an element in Arnold Clark’s success. The company bought a large number of businesses in 2012 – almost too many, says Hawthorne. ‘To be perfectly honest I think we went a wee bit Banzai! ‘I think we had a bit too much money in the bank – but we had to do something with it. ‘If a business doesn’t expand it stagnates and dies. We hadn’t bought an awful lot in 2008 and we bought 21 garages in 2012. ‘Now, the problem was that while they were very good garages, it takes us about a year to bed them in. ‘Most of them started to perform really well in 2013 and we see that only improving this year. ‘My goal is to run a sustainable business that grows, sells 300,000 cars a year and employs 10,000 people – I’m 1,000 people short and about 80,000 vehicles off my target.

‘That’s my intermediate goal.’ Hawthorne has a simple rule on his acquisition trail – and it’s one that he stands by. ‘When I’m buying something, I have a five-year payback. Some people ask me what that is and it’s quite simple –whatever I pay for a business or an operation, I have to be able to pay back that investment within five years. ‘The easiest thing to do is to buy something just because you’ve got the money to. ‘The difficult part is running it and incorporating it into your business. ‘It’s a wee bit like eating an elephant one bit at a time – don’t give yourself indigestion by overstretching yourself. ‘That’s the simplest business advice I could give to anybody, because it stops ego and overinflation. If I can’t make that amount of money back within five years, I am paying too much for it. It’s a very simple business rule that we’ve taken.’ But that’s the business part. What is Hawthorne’s own personal ways of business? ‘I don’t do too many memos,’ he says.

Sir Arnold Clark set up shop in 1954

‘I tend to speak to people. ‘I’m on the phone from 7.30 in the morning to eight at night and I speak to all my senior people once or twice a week, and I travel around our sites. ‘I don’t like our head office. I don’t like being behind a desk and would rather be out and about.’ [CD]

Arnold Clark Northwich was Kia’s first Red Cube showroom

��| CarDealerMag.co.uk

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DASHBOARD.

You’re invited to THE awards do of 2014 The only ceremony for the used car industry returns. Car Dealer Used Car Awards is back – and you need to be there

re you a dealer who really knows your onions when it comes to used cars? Do you want industry recognition for your hard work? Well, the Car Dealer Used Car Awards sponsored by Black Horse are perfect for you, so read on. For the past two years, the event has become THE awards do for the used car industry, with winning dealers and sponsors proud to shout about their successes – and keen to have a party too! And winning a Used Car Award is a big thing. The awards celebrate and recognise all the different areas of this vital backbone of the motor industry. From the smaller independents to the larger groups, every dealer who has an involvement with the used car business can take part. On the big night, we will be handing out gongs in a variety of categories – from Used Car Sales Manager of the Year to Used Car of the Year, so there will definitely be something for which you can enter. And if you reach the final shortlist, you will be invited to our sparkling awards night, hosted by TV’s Mike Brewer and held at The Brewery in London on December 1, 2014. You’ll be able to enjoy a three-course meal, free table wine and beers, a disco and live band.

If you missed out on last year’s event, don’t delay in entering 2014’s Used Car Awards. Judging by last year, tickets and sponsorship packages sell out quickly. How do I ENTER? Entry is FREE and easy. Simply type bit.ly/ UsedNoms14 into a web browser or fill out the form on the opposite page and send it back to us. Enter as many categories as you wish. All we ask is that you provide as much detail as you can to support your nominations, as it really helps when it comes to creating the shortlists. If you’re struggling to think of nominations for a specific category, don’t worry – you can leave it blank. Do get your thinking caps on, though, as we are counting on you to nominate yourself or others! Anyone can book a table. Sponsors get tables as part of their packages, but there’s nothing to stop other suppliers to the industry taking a table for £1,995 to entertain clients. All tables get unlimited beers and wine from the party opening at 6.30pm with a welcome drink. We politely ask you to find your carriage at 12.30am. Don’t delay in nominating yourself or others – get cracking now. Good luck!

Award categories Used Car Dealership of the Year (Under 50 vehicles) We’re looking for the best dealership that stocks up to 50 used cars. Used Car Dealership of the Year (50-100 vehicles) This award will mark the best dealer that stocks between 50 and 100 cars. Used Car Dealership of the Year (Over 100 vehicles) This one is for the larger dealers and car supermarkets stocking more than 100 cars. Used Car Dealership of the Year Group Aimed at those with more than one site, this award marks the best used car groups. Dealers’ Dealer of the Year There’s nothing like recognition from your peers in any industry, which is why this award is so special. We’ll be taking nominations from dealers ��| CarDealerMag.co.uk

as to which of their peers they feel is truly deserving of this special gong before Mike and the judging panel help to decide the winner. Used Car Sales Team of the Year Always a fiercely fought category, this award is likely to be a tough battle again in 2014. Behind every great dealership there is a great team – and it’s that team that this award is for. Used Car Sales Manager of the Year Good salespeople don’t necessarily create the best managers – but some do manage to make the transition. This award marks those brilliant managers who juggle the pressures from on high with ensuring that their teams are doing their jobs superbly. Used Car Dealer Principal of the Year Running a successful used car dealership isn’t easy. This award will recognise those that not only manage it but absolutely excel in this competitive arena. We’ll take nominations from

their teams and peers to ensure we find the best of the best. Upsales & F&I Performance of the Year Selling a used car is only one part of a great salesperson’s mission. With every sale there is the opportunity for selling other products and services – and it’s often these add-ons that make the real difference to a dealer’s bottom line. Our winner will be a salesperson who truly excels in this area. Best Used Car Customer Care Canny dealers know that cultivating a used car customer can create a punter for life – a loyal supporter who’ll return time after time for a new car. But it’s only the dealers who look after their customers who succeed here. This award recognises those dealers who manage this with every sale. Used Car Product of the Year This award is for the used car suppliers out there.

Nomination form Please fill out the following details, or alternatively visit bit.ly/UsedNoms14 to enter online

Sponsor’s message

My name:.........................................................................................................................................................

We are delighted to be the headline sponsor for the second year running. The Car Dealer Used Car Awards are quickly becoming THE awards for the used car sector. All too often, this vital part of the industry is overlooked but the Car Dealer Used Car Awards rightly give it the recognition it deserves. We didn’t want to sponsor the awards just because it is a great night but also because it fits well with our business. Car Dealer Magazine is a respected trade journal and reaches out to more than 18,000 car dealers and manufacturers. This sponsorship comes at a great time for our business as we have a clear growth strategy and aim to continue offering an award-winning proposition for our dealer customers, backed up by great products and market-leading technology. This year’s Car Dealer Used Car Awards evening promises to be another fantastic event. Dealers can look forward to a great night at The Brewery in London. Like last year, 2014’s Used Car Awards will be a superb networking opportunity and a cause for celebration. You can nominate yourself for one or more of the award categories and, if you make the shortlist, you will be invited to the awards ceremony where you could take home a coveted trophy. There’s nothing better than being able to show your customers that you excel in the industry. I am looking forward to toasting your success this December. Chris Sutton Managing director Black Horse

Whether that’s a brilliant online sales portal or a clever warranty scheme that helps dealers sell more cars, this award will celebrate the very best. We’ll look closely at nominations from dealers to help find our winner. Outstanding Achievement of the Year This special award looks to recognise the dealer or dealership personality who has achieved something truly remarkable. Whether it’s amazing sales figures, brilliant upsales or outstanding customer service, this award will be handed to a truly talented individual. Lifetime Achievement Award Previous winners include John Tordoff of JCT600 and Ray Sommerville of Perrys. For 2014, the judging panel will once again be looking for a motor trade big-hitter to reward for their lifetime of service to the used car industry. Manufacturer Used Car Website of the Year This award will recognise the car manufacturer

Preferred contact telephone number:.................................................................................................... My email address:......................................................................................................................................... The category/categories I’d like to enter: ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... My reasons for winning are: ..................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... Want to enter in more categories? That’s fine – just photocopy this form. Please send your form to Blackball Media, Haslar Marine Technology Park, Haslar Road, Gosport, PO12 2AG. If you’d like to send supporting information, that’s fine too.

with the most innovative used car section on its website. It has to do the job for its dealers but, more importantly, serve customers brilliantly too.

We’ll be looking for the garage that specialises in repairing and maintaining used cars and truly excels.

Dealer Used Car Website of the Year This award is focused on the car dealers who present their used cars perfectly online. Our judges will look for the ease of use, design and functionality of the website before handing over this coveted award.

Manufacturer Used Car Scheme of the Year This award honours the best official manufacturer-backed Used Car Scheme of the Year. Nissan and Kia are previous winners of this special gong.

Social Media User of the Year Social media websites, such as Twitter and Facebook, are getting more and more important in the car-buying process – but not every dealer uses them well. This award looks to mark the achievements of a dealer who has mastered their digital direction. Service and Repair Outlet of the Year It’s not just the sales side of the used car business that we will be celebrating at these awards – our light shines on the service department too.

Used Car of the Year Using data from the industry trade bibles as well as advertising portals, we’ll reward the most popular used car. Residual values, popularity, profit opportunity and more will be considered by Mike and his judging panel when choosing the winner. Best Performing Used Car of the Year Again, using data from the trade price guides as well as other sources around the remarketing industry, this award will mark the best performing used car. CarDealerMag.co.uk | 17

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DASHBOARD. Fiesta tops list of cars destined for the crusher THE Ford Fiesta has faced the crusher more than any other car in the UK over the past 18 months, according to exclusive figures released by nationwide vehicle removal specialist Remove My Car. The highly popular model tops the list after being scrapped 1,691 times over the past year and a half, ahead of the Vauxhall Astra on 1,544 and the Ford Mondeo on 1,439. The two other cars to make the top five were the Renault Megane and Vauxhall Corsa, scrapped 1,238 and 1,234 times respectively. At the other end of the scale, just a single Volkswagen Touareg, a car introduced only 12 years ago, was sent to be scrapped, as well as one Range Rover.

Controversial dealers have surfaced again

STOWAWAY

Cat survives trip to workshop in engine bay

Newspaper investigation tells of new online firm

he Daily Echo newspaper in Southampton has published another instalment in its longrunning investigation into the activities of a pair of controversial south coast car dealers. In its latest report, the paper says that Stan Rudgley and Richard Burbage ‘have resurfaced after closing Hampshire dealerships following fury over cars they were selling’. Mr Burbage has been connected to Woolston Car Supermarket in Southampton, which shut abruptly in January after receiving increasing numbers

of complaints. And both Mr Rudgley and Mr Burbage were reportedly connected to another firm at the same site in Hazel Road, Woolston, called Hampshire Vehicle Sales. The Echo also reports that Mr Burbage and his wife Lorraine, who live in Botley, ‘both owe more than 11 million Australian dollars to hundreds of people after the demise of a firm they owned . . . in Australia’. Senior reporter Patrick Knox says Mr Rudgley and Mr Burbage are now involved in a new online car dealership, Valley Cars, based in Botley. A trading standards official was quoted as saying: ‘This is a complex case that has impacted upon many people.’ The cases of more than 60 customers are currently being investigated, the Echo reports.

BERKELEY Vale Motors is used to working on purring engines but it isn’t used to visitors of the feline variety. Staff at the Hyundai dealership in Thornbury, near Bristol, got a shock when they gave an i10 city car a health check – a cat jumped out of the engine bay and into the workshop. It isn’t known how the feline passenger got aboard but it had been there since the car’s owner drove to the dealership – 28 miles away! The cat was unhurt, with Its microchip making it easy to find its owner.

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Sell cars the Smart New way Launched in January, our new TV advert will be viewed more than 300 million times in the ﬁrst 6 weeks alone and played on over 100 TV channels nationwide – helping our dealers to sell more cars without the Carfuffle. To watch our advert and to ﬁnd out about our multi-million pound Carfuffle campaign, visit www.motors.co.uk/tv, email us at sales@motors.co.uk or call 0845 265 6000.

��| CarDealerMag.co.uk

DASHBOARD.

Firm shrugs off flood woes to shift 243 cars in a month MD praises skill and dedication of staff plus resilience of company

espite seeing its flagship Hessle showroom having to temporarily close because of extensive flood damage, Motor Depot has managed to sell 243 new cars in 30 days. And it did so from a hastily-opened single showroom! As reported by Car Dealer, Motor Depotâ&#x20AC;&#x2122;s 80-strong stock inventory was effectively wiped out by a freak tidal surge in December 2013, forcing the East Yorkshire dealership to quickly switch operations to its original site in Clarence Street, Hull. Managing director Steve Butterley has hailed the recent sales figures as â&#x20AC;&#x2DC;confirmation we are bouncing

back from the devastating floods of Decemberâ&#x20AC;&#x2122;. He said: â&#x20AC;&#x2DC;What Motor Depot has achieved over the last month really is unbelievable, especially considering what the company has been through in the past 12 weeks. â&#x20AC;&#x2DC;Weâ&#x20AC;&#x2122;ve effectively been operating with both hands tied behind our backs, yet the whole team has pulled together and managed to sell almost 250 brandnew cars in a single month from a single site. â&#x20AC;&#x2DC;It is just testament to the

Have your say on this story. Get commenting by logging on to CarDealerMagazine.co.uk/forum

skill and dedication of the staff, as well as the resilience of the company as a whole.â&#x20AC;&#x2122; The new cars sold were all Chevrolets and each one was bought by an end customer. Some carsâ&#x20AC;&#x2122; prices were slashed by almost 50 per cent, and the company expected to dispose of its entire batch of more than 300 Chevrolets by the end of the month.

star occasion

Film star opens new-look site FILM star Warwick Davis has officially opened the newly refurbished Motorpoint site in Peterborough. He switched on the lights in front of a crowd of more than 100 people â&#x20AC;&#x201C; including the mayor â&#x20AC;&#x201C; at the new-look site in Edgerley Drain Road. General manager Lee Arnold said: â&#x20AC;&#x2DC;The day was a great succcess all round.â&#x20AC;&#x2122;

campaign SUCCESS

Fordâ&#x20AC;&#x2122;s Facebook push pays off FORD has used Facebook to sell 500 limited-edition EcoSports in 11 countries. The Blue Oval placed striking photo ads on news feeds, both desktop and mobile, and by the end of the campaign all 500 had been snapped up.

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DASHBOARD.

CarDealer

CONFERENCE 2014

Make sure YOU are part of High-calibre inspirational and motivational speakers are being signed up for our FREE must-attend event that will look at how motor trade will evolve over the next six years

un Motors has just signed up to the Car Dealer Conference 2014. The brand-new classified website has taken one of the morning’s not-to-bemissed speaker slots. At the time of going to press, Sun Motors joins a line-up including search engine Google, YouTube and the president and CEO of Kia Motors UK, Paul Philpott – with more being signed up for this important event. We have chosen these speakers as they have

Easy steps to get your tickets ��| CarDealerMag.co.uk

FANCY ATTENDING THE 20/20 CONFERENCE?

a unique insight and view on the future of automotive retailing. Branded 2020 Vision, this year’s FREE-to-attend conference will be held at the Heritage Motor Centre, Gaydon, on Friday, June 20. The conference will be taking a look at how the motor trade will evolve over the next six years – and how dealers can prepare for it. The general feeling within the industry is positive, but the conference will explore the reasoning behind the optimistic mood and why it

is important for dealers to act accordingly. With inspirational and motivational speakers from the trade, our delegates will leave the day having benefited from learning something new and useful that they can take back to their businesses and implement the next day. This year we will have a number of not-to-bemissed speakers from the automotive industry and beyond. Along with the day’s speeches from the likes of Sun Motors, Google, YouTube and Kia Motors

3 BIT.LY/ CONFERENCE14

Scan the QR code

industry’s future Speakers confirmed so far: Google YouTube Kia Motors UK Sun Motors UK, attendees will also have the chance to explore the Car Dealer Expo. The Heritage Motor Centre’s exhibition hall will be taken over by a large number of exhibitors who will be on hand to chat about the products and services dealers need now and in the future so they are not left behind. During the day, there will be plenty of time for

FILL IN THE REGISTRATION FORM

attendees to visit each of the suppliers’ stands and talk business. Refreshments will be served at arrival and during the day, with a buffet at lunchtime. This is a must-attend event for any business that wants to talk to forward-thinking dealers. The day will be focused on the future of the industry – so if you want to make sure you are part of it then make sure you are there. Register for this free event now by logging on to bit. ly/conference14. To take part in Car Dealer Expo, call 023 9252 2434.

WAIT FOR YOUR TICKETS TO ARRIVE

Reasons

Why you should be attending the 2020 Vision Conference

Leading speakers

Speeches from a wide variety of sectors, from Google to Kia.

It’s free

Taking place at the Heritage Motor Centre, Gaydon, on June 20, 2014, the whole day is free to attend.

Top ideas

You’ll be able to take away some great ideas for your business and colleagues on how to plan for the future.

Free lunch

Enjoy a delicious buffet lunch and refreshments during the day.

Expo ealer CarD E ENC FER CON 2014

You’ll have the chance to wander around the largest exhibition of trade stands we’ve ever organised. CarDealerMag.co.uk | 23

DASHBOARD.

Ex-Radio 1 DJ says he was naive about tax scheme ‘Used car trader’ claim was ploy to avoid paying up to £400,000

e may be one of the UK’s best-known radio DJs, but Chris Moyles once wanted the taxman to think he was a used car dealer. The popular presenter claimed that he was a second-hand trader as a ploy to avoid paying up to £400,000 in tax, a tribunal judged. According to Sky News, Moyles, along with two other men, joined a scheme called Working Wheels. It allowed the trio to say they had been liable for huge charges while working within the motor trade – fees they were then able to offset against their HM Revenue & Customs tax demands. The scheme’s members numbered 450 fund managers, celebrities and other high earners between 2006 and 2008. According to a judgment by the Tax Chamber of the First-Tier Tribunal, Moyles’s self-assessment tax return for 2007-08 said he ‘had engaged in self-employment as a used car trader’ when he was actually the presenter of the Radio 1 Breakfast Show. The 40-year-old, who left the station in 2012, gave no evidence, just a witness statement that Judge Colin Bishopp called ‘very brief and rather uninformative’. And the judgment said it was ‘quite clear’ from Moyles’s statement that he went into the scheme ‘to achieve a tax saving, and that he took no interest in the trade.’ Afterwards, Exchequer Secretary David Gauke said that it should act as a warning to everyone. ‘This case is another example of why taxpayers should not fall for

by JAMES BATCHELOR @JRRBatchelor

the promises of promoters selling schemes that are all too often too good to be true. ‘Not only will the taxpayer waste money on the fees for these failed schemes, they will still have to pay all the tax, interest and penalties that are due. ‘This government has provided HMRC with the resources to tackle these avoidance schemes and HMRC will now pursue the other users of the scheme to make sure all the taxes that are due are paid,’ he said. On Twitter, Moyles denied knowingly doing anything illegal – but admitted he had been naive. He wrote: ‘I want to comment about a recent tribunal tax ruling. ‘Upon advice, I signed up to a scheme which I was assured was legal. Despite this, my knowledge of the dealings of the scheme was naive. ‘I’m not a tax expert and acted on advice I was given. This was a mistake and I accept the ruling without reservation. I take full responsibility and have learnt a valuable lesson.’ He now faces having to make a significant payment to HMRC because of his involvement in the scheme.

��| CarDealerMag.co.uk

styling of the 500L Trekking with an eye-catching, two-tone, grey/black colour scheme’. Asked about the success of the 500L so far, McLaren told us: ‘I think 500L was misunderstood at launch. Our research shows that it is viewed overwhelmingly as a family vehicle. ‘That’s not to say it’s exclusively for

Remarketing firm is bought VEHICLE auction giant Manheim has bought the North Lanarkshire-based remarketing specialist Shotts Motor Auctions for an undisclosed sum. In a statement, US-owned Manheim said the deal signalled its commitment to the used vehicle market in Scotland. The family-run business, which was established in 1989, operates from a 10-acre site in Stane Road, just off the A71 in Shotts, with two auction lanes and undercover storage for up to 250 vehicles. Manheim praised the firm, saying it had built up an excellent reputation for service levels.

APPOINTMENT

Peter Johnson joins Marshall

Presenter Chris Moyles claimed he was a used car trader to avoid paying up to £400,000 in tax PICTURE: REX FEATURES

Have your say on this story. Get commenting by logging on to CarDealerMagazine.co.uk/forum

People misunderstood 500L at launch, says Fiat’s UK head of brand FIAT’S 500L was misunderstood at launch, the manufacturer’s head of brand in the UK has told Car Dealer. Kate McLaren was speaking as the Italian company announced a new special edition, new engine variants and new optional equipment for the mini MPV, launched in the UK last year. Fiat says the new FIAT 500L Beats Edition blends cutting-edge technology with a cool, urban look, ‘combining the chunky go-anywhere

MANHEIM

families, but what we tend to say is that we aim for a target demographic. ‘500L is more lifestyle than lifestage in the same way that 500 is more about free thinkers of any age; they could be young or old. It’s a very different alternative to some of the more traditional family cars.’

PETER JOHNSON has been appointed as a nonexecutive director of the parent company of Marshall Motor Group. Daksh Gupta, chief executive of the company, said: ‘I am delighted that we will have such a significant motor industry figure joining the board of our parent company.’ Johnson added: ‘I am delighted to be joining Marshall at such an exciting time. The company continues to go from strength to strength and I look forward to working with Daksh and his team.’

MOTOR CODES

Suzuki does well in latest report SUZUKI is celebrating after achieving a top score in Motor Codes’ 2014 Report. The Japanese car maker scored 97.55 per cent for aftersales customer service satisfaction. Customers awarded the rating based on their own experiences of servicing and repairs carried out by brand’s network of dealers and authorised service centres.

Mazda’s war cry: Bring on a rival to the MX-5! UK boss says he’ll ‘embrace the opportunity to have competition’

azda’s UK boss is hoping fellow car manufacturers can finally come up with a serious rival to its MX-5 like the… wait for it… MGF was! Jeremy Thomson, Mazda UK’s managing director, wasn’t joking when he told us the best years for the firm’s sports car were when it did battle in the magazine road tests and showrooms with the British sports car. We asked him if the delay in getting a new MX-5 into dealersworried him as it could see other manufacturers fill the lightweight sports car void while Mazda readied a new model. Several manufacturers are said to be plotting a coup in the sector – not least Kia with its GT4 Stinger, showcased at the Detroit and Geneva motor shows. But Thomson isn’t concerned. He said: ‘It doesn’t worry me in the slightest and I’ll embrace the

by JAMES BAGGOTT @CarDealerEd

opportunity to have competitors in that segment again. ‘Since the MGF disappeared, Mazda has been on its own, and if I look back at those days it was actually the combination of us and MG that created the critical mass that gave roadsters a presence on British roads that has never been the same again. ‘With competition you double the amount of media spend, double the awareness and double the amount of cars on the roads and they have a certain resonance then. ‘So my message to those planning a competitor model is simple: Bring it on!’ There is no official word yet on Mazda’s replacement for the MX-5, but Thomson confirmed

plans are well advanced. ‘The official Mazda line is that there is space in the new portfolio for MX-5,’ he said. ‘We recognise from a purist’s point of view that it has to remain lightweight and affordable. ‘That’s what customers want to see and the designers realise that.’ Thomson pointed to the current range of Mazdas, which has seen the manufacturer reduce weight and focus on making the engines more efficient and powerful at the same time, as a positive thing for the next MX-5. ‘There’s no better way to showcase what we’re trying to do with combustion engines and lightweight than with the MX-5,’ he said. All we hope is they hurry up and get the new one out there… we’re not so worried about another MGF. Geneva Motor Show, p54

MPS variants are possible ‘but resources must go to mainstream first’ interview with Car Dealer Magazine. ‘But these kinds of projects are not simple and engineering resources have to go to the mainstream cars first. I would hope there is space in our product planning to also deliver some interesting and exciting derivatives above and beyond those which you are seeing now.’ Thomson explained that the Mazda 3 and 6 were ‘more than capable’ of taking high-performance engines. He

Marshall adds to its awards tally FAMILY-owned dealer group Marshall has been named dealer group of the year by Jaguar – the latest in a long line of accolades it has received recently. In addition, the group was ranked number one in the Jaguar aftersales league on a balanced scorecard basis and the Lincoln Jaguar dealership was ranked fourth nationally for aftersales. It has been a good few weeks for Marshall, having been recognised with no fewer than 17 separate awards across nine different brands. The group has also been shortlisted in two categories in the Cambridge News Business Awards.

used cars

Average value falls over month THE headline average used car value fell in February, compared with January, as volumes continued to rise. Despite this, values remain ahead year-on-year and demand was strong across the board for good-quality used stock, according to BCA’s latest Pulse report. It shows that average values fell in February by £51 (0.7 per cent) to £7,330, compared with the previous month. Year-on-year, February 2014 was ahead by £274, or 3.8 per cent, compared with the 3.4 per cent year-on-year increase reported in January.

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Have your say on this story. Get commenting by logging on to CarDealerMagazine.co.uk/forum

There’s room in Mazda’s product plans for sporty MPS variants – but the manufacturer needs to get the basics right first. That’s the opinion of the Japanese manufacturer’s UK MD, Jeremy Thomson, who says it’s not just the media and fans that want to see a sporty offering in the range again. ‘All of the enthusiasts at Mazda would love to see a new MPS range,’ explained Thomson, in an exclusive

GROUP SUCCESSES

wouldn’t be drawn on when we could see a new MPS range but he certainly seemed hopeful it would happen. The Hazumi concept, which previews the forthcoming Mazda 2, was shown at the Geneva Motor Show and certainly looks pretty sporty with its twin centre-exit exhausts. And there are few hot-hatch enthusiasts who wouldn’t like to see an MPS version that could take the fight to the Ford Fiesta ST.

Beckham signs for Jaguar DAVID BECKHAM has joined Jaguar as a brand ambassador and will support major forthcoming product launches in China. The sporting icon will feature in exclusive print adverts and TV commercials in one of the brand’s most significant international markets. He said: ‘It’s an honour to support a brand with such an amazing heritage.’ CarDealerMag.co.uk | 25

SURVEY.

Tell us who’s best in the business We want to crown the best suppliers and manufacturers you work with. But we need your help to do so.

ast year, Land Rover triumphed in the Car Dealer Power awards by winning the Car of the Year award. Dealers voted overwhelmingly in favour of the Range Rover taking home the spoils – and the British marque received some great publicity off the back of the gong. And this year we will be searching for the Car of the Year once again. But it’s not the only category in our unique survey – there are loads we want your help with.

What is Car Dealer Power? NOW in its fifth 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 is the survey that aims to find the best car manufacturer in the UK to award by quizzing its dealers about how it performs on a variety of levels. Last year, Toyota just pipped Kia and Hyundai to the top gong. Suppliers feature just as prominently as the manufacturers, and for 2014 you’ll see there’s ample opportunity to name the suppliers you like to do business with. We’ve split a number of the categories to give the smaller firms more chance of recognition in these important awards, and this year we’ve added Tyre Provider of the Year, Motor Factor of the Year and Trade Insurance Provider of the Year to the line-up. We want you to rate the firms you use in all areas of your business so we can celebrate the

Who’ll win Car of the Year in 2014?

very best – and invite them to our special Car Dealer Power awards night to be held in August.

WHY SHOULD I FILL IT IN? WE know for a fact that manufacturers and suppliers take your views very seriously and have made changes on the back of your comments. Don’t be worried about any repercussions, as 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 your most honest opinions. Filling in the Car Dealer Power survey shouldn’t take longer than a few minutes. You can do it by logging on to CarDealerPower.com – it’s very straightforward. And if you want to be in with a chance of winning one of the prizes, don’t forget to add your mobile number. The deadline for submitting your survey is June 30. But remember – surveys need to be at least 50 per cent complete to count. One small tip, though – we advise all suppliers and car manufacturers to ask their clients and dealers to fill in the survey.

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TV’s Mike Brewer book

The perfect gift for a fan of the Wheeler Dealers TV show. Mike talks you through buying and selling modern classics.

Awards Night AS in other years, we will be holding an awards night for the winners of Car Dealer Power. Once voting is closed we’ll notify the lucky companies that need to book a place at our event. But until then, get voting!

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DASHBOARD. Vertu Motors upbeat about performance VERTU Motors looks set to post financial results that are ahead of market expectations. An upbeat statement said the trading picture in the five months to the end of January had been favourable for the whole of the UK motor retail sector. And during that time the company reported that likefor-like new retail volumes grew by 21.5 per cent, new fleet and commercial vehicle volumes grew by 23.2 per cent, used vehicle volumes grew by 11.1 per cent and aftersales revenues increased by five per cent. The statement added: ‘The board believes that, given the current strong performance of the group, the results for the year ended February 28, 2014 will be ahead of market expectations.’

100,000 reasons why Ken is loved so much by Nissan Super-salesman retires after top career

North Shields man who has helped Nissan become a powerhouse of the UK automotive industry is calling time on his incredible career after being involved in 100,000 car sales over more than half a century. Super-salesman Ken Searle, 67, clocked up the amazing tally of new and used car deals during his 52 years as sales manager, general manager and business manager for the northeast’s largest motor group, Benfield. Based at Benfield’s Portland Road site, the grandfather-of-five started out selling British Leyland models at the group’s first car dealership, then Addison Motors in Byker, before joining the original team selling Datsun – Nissan’s forerunner – when it first launched in the UK in 1973.

Since then, he has remained firmly at the helm of the group’s Nissan franchise, making a major contribution to Nissan’s market share. In recognition of his achievement, Benfield’s chief executive, Mark Squires, presented him with a Japanese Kokeshi Ken Searle has helped Nissan grow and grow doll on behalf of Nissan UK, and a specially ‘Nissan’s been a great brand to work commissioned caricature courtesy of with and it’s been brilliant to watch the dealer group and his colleagues. it grow, particularly here in the northHe said: ‘We are all very proud east where many of the cars are made. of Ken and his amazing career and Nissan GB sales director Jon record of car sales.’ Pollock said: ‘Ken has made a massive A proud Ken said: ‘I’ve loved every contribution to our success. All of us minute of my career and I wouldn’t at Nissan wish him all the very best have changed a thing. for a long and happy retirement.’

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UK NETWORK

‘SCAM’ SENTENCING

Car dealer given prison term for cash-laundering A USED car dealer from Dumfries has been sent to prison for three and a half years after using his business to launder £150,000 gained through criminal activity. Michael Handley, 39, employed ‘a sophisticated scam’ to process the money at Lochthorn Car Sales in Locharbriggs between May 2003 and December 2006, the High Court in Glasgow was told. At a previous hearing, where Handley admitted the offence, it was revealed he ran his business in three ways – one legitimately, one with false records, and one cash-only without records. The sentence will run from the end of a sixyear term he is serving for assault and danger of life.

Toyota allays any fears over future of European plants Assurance is given after announcing closure of Australian operation

apanese car-maker Toyota says there is no risk of closures at its European manufacturing facilities, after announcing it is to pull out of Australia because of high labour costs. The automotive giant has said it is to cease manufacturing Down Under by 2017, ending a 50-year presence in the country. The move also effectively ends all car manufacturing in Australia, with rival Japanese firm Mitsubishi, as well as Aussie favourites Ford and Holden, already having concluded operations there. But Toyota GB president and managing director Matt Harrison says TMUK – Toyota’s British facility based in Burnaston, Derbyshire

– has a bright future ahead. ‘Toyota has a long-standing commitment to the UK,’ he exclusively told Car Dealer. ‘This year has been a very impressive success with the Auris hatchback, for which TMUK is the sole manufacturing plant.’ The company’s commitment to hybrid technology is another factor in its optimism for its British operation. ‘Localising our hybrid tech facilities

in Britain allows us to be very flexible in terms of following customer demand. Forty per cent of the build for 2013 featured hybrid technology,’ added Harrison. Toyota is confident that its three European facilities – the others being in Turkey and northern France – will enable the company to produce cars efficiently in the future by maximising their capacity. ‘Toyota doesn’t take the decision to close down production facilities lightly,’ said Harrison. The news is likely to be welcome for TMUK’s approximately 4,000-strong workforce. The same cannot be said for their Australian counterparts, though – some 2,500 of whom are facing redundancy. Toyota Verso, p46

CarDealerMag.co.uk | 29

DASHBOARD. APPOINTMENT

New CEO for Mercedes-Benz MERCEDES-BENZ UK has appointed Gary Savage as its CEO and managing director of its cars division with immediate effect. The move is part of a large reshuffle and organisational changes that see the firm’s current UK president and CEO, Marcus Breitschwerdt, appointed head of Mercedes-Benz Cars Europe Region. Savage reports to Breitschwerdt. Since the beginning of the year, Mercedes-Benz UK has moved into three distinct divisions – cars, trucks and vans – each with its dedicated senior management structure.

NEW DEALERSHIP

MG appoints yet another dealer MG has appointed its first dealership in the capital. MG West London, in Barnes, south-west London, opens in March and follows the recent appointment of Harrogate, Doncaster and three sales outlets in Newcastle. The British marque says 2014 will see the largest expansion of its network in more than a decade.

RESULTS

Family favourite gets premium makeover Ford refuses to rest on its laurels and gives top-selling Focus range mid-life makeover to keep it at number one in Europe’s sales charts

ord’s top-selling Focus has been given an extensive makeover to position it as premium as ever before. The Blue Oval has restyled the looks, updated the interior and added new technology to maintain the car’s position as Britain’s best-selling family hatchback. The 2014 New Focus receives Ford’s new corporate face with a slatted grille, slimmer headlamps and a new bonnet to give a lower and wider appearance. To the rear, the previously oversized lights have shrunk, and there’s a slightly altered boot lid. The inside has received a big makeover, too. Gone is the old Focus’s fiddly centre stack and in its place is a much clearer and easier-to-use arrangement. The stack is dominated by a new eight-inch touchscreen that handles all the usual features such as sat-nav, Bluetooth, air conditioning and Ford’s clever MyKey. New Focus also debuts Ford’s new Sync2 system, which has 3D mapping and Michelin guides. The whole interface is really smartly designed too, with nicer graphics and colours. Speaking of graphics, New Focus also gets easier-to-read dials thanks to clearer typography, better quality switches and dashboard plastics (some models even come with a leather-covered dash and heated leather steering wheel) and a very VW Golf-like sliding compartment on the centre console. Under the bonnet, New Focus gets a range of tweaked engines, boasting 19 per cent lower fuel economy figures than the previous car. New Focus also debuts Ford’s new 1.5-litre EcoBoost petrol engine (available in 148 and 178bhp guises) and a new 1.5-litre TDCi diesel engine (94 and 119bhp). There will also be a 99g/km CO2 version of the clever 1.0-litre EcoBoost, and Ford also promises it has worked

by JAMES batchelor @JRRBatchelor

hard on making the already excellent Focus handle even better with the 2014 New Focus. There’s a raft of safety features available but the most nifty is Ford’s new hands-free Perpendicular Parking technology. It helps drivers reverse into spaces side by side with other cars, so embarrassing supermarket car park manoeuvres can be banished forever. New Focus arrives in showrooms in quarter four of this year.

Pendragon plc ‘strong’ in 2013 PENDRAGON has reported profits before tax up £4.9m to £38.9m during 2013. New UK retail sales at the group grew on a like-for-like basis by a healthy 18 per cent, while the number of online visitors grew by 22 per cent. Aftersales grew three per cent and used performance continued to outperform the market with volume up seven per cent on a like-forlike basis. ��| CarDealerMag.co.uk

Customers can take the CUSTOMER feedback was at the heart of Ford’s decision to make its new Focus more premium, a company director has said. Speaking exclusively to Car Dealer at the Focus’s official reveal in Frankfurt in February, Sherif Marakby, Ford Motor Company’s global vehicle line director of C cars, said the views of Focus and non-Focus customers were at the heart of making the new car posher than it has ever been before. ‘We asked customers across the board what they wanted to see in the New Focus, and the point most were agreed

RE-BRAND

Ford Retail is now TrustFord FORD Retail has changed its name to TrustFord. The change, which will take effect sometime after April, has been in development for a while and, says Ford, is aimed at offering customers a ‘joined-up experience across the group’. Stuart Kerr, chairman and CEO of Ford Retail, said: ‘The branding of the Ford Retail group has been in development for some time and was put in motion following qualitative internal and external customer research. This will reflect our commitment to being clear and transparent across our entire network.’

NEW BOSS

Le Guevel is Peugeot’s MD PEUGEOT has appointed a new managing director in the UK. Stephane Le Guevel, 46, takes up his new role on April 1 from Beijing, where he is currently the deputy managing director of Dongfeng Peugeot. Peugeot UK’s current boss, Tim Zimmerman, is leaving to become president of General Motors’ south-east Asia operations

AWARDS Have your say on this story. Get commenting by logging on to CarDealerMagazine.co.uk/forum

credit for improved Focus, says Ford director about was the need to improve interior quality,’ Marakby explained. ‘Focus is already the best-selling C-segment hatchback, but we didn’t want to be complacent – that’s why we have improved every element of the car.’ Inside, 2014 New Focus gets better quality dials and buttons with clearer typography, and the option to spec a car with a leather dashboard and heated steering wheel. ‘We wanted to make the Focus a car built with craftsmanship,’ said Marakby. ‘We didn’t want to stand still – it’s in our DNA to constantly improve.’ Perhaps the greatest advance of the new Focus is its new

eight-inch touchscreen and the debut of Ford’s new Sync2 system. The centre stack of the previous car, often criticised for being confusing, has been replaced with a simpler layout and that large touchscreen. ‘Adding technology is easy – but adding the interface for the customer is the hard bit. We’ve worked tremendously hard to make this car as easy [as possible] to use and live with,’ said Marakby. He went on to say that he would be ‘surprised’ if sales of the Focus didn’t increase thanks to the improvements to the new version.

Land Rover praises Vertu VERTU has won three prestigious awards from Land Rover including – for the first time – Dealer Group of the Year. In addition to the group scooping the top award, Farnell Land Rover in Leeds was named Dealer of the Year for the second year running. The dealership was also named Service Centre of the Year. CarDealerMag.co.uk | 31

DASHBOARD. Hyundai says Britain needs to stay in EU HYUNDAI has joined the list of car-makers calling for Britain to stay in the European Union. Speaking to The Huffington Post UK, a senior executive said if Britain left the EU it would throw up barriers to doing business in the country. â&#x20AC;&#x2DC;Everything is much easier because of the single market, and if that scenario was changed it would make it more challenging,â&#x20AC;&#x2122; said Tony Whitehorn, Hyundai UK president. Last November, Nissan chief executive Carlos Ghosn warned David Cameron it would reconsider its investment in the UK if Britain were to leave the EU.

Weight-loss tweet leads to tights dare PR manager rises to Tescoâ&#x20AC;&#x2122;s sartorial challenge

t started with an innocent tweet about weight loss and salads â&#x20AC;&#x201C; and ended with a dare for a member of the motor trade. Mike Hind, PR manager for trade prices expert CAP, probably thought little of his tweet to supermarket giant Tesco a few months back â&#x20AC;&#x201C; until he ended up walking into his office in a pair of James May shirtpatterned tights. The brave Hind strode into the companyâ&#x20AC;&#x2122;s Leeds HQ with an interesting Hugo Boss jacket, Oliver Sweeney shoes and Tesco tights combo â&#x20AC;&#x201C; much to the delight of his colleagues. And he took to Twitter to broadcast his get-up to the world. Via Twitter, he said: â&#x20AC;&#x2DC;One day, I tagged Have your say on this story. Get commenting by logging on to CarDealerMagazine.co.uk/forum

@Tesco in a tweet about their ÂŁ2.50 salads being key to my having lost 1.5st in weight. Credit where itâ&#x20AC;&#x2122;s due, I thought.â&#x20AC;&#x2122; He then tweeted: â&#x20AC;&#x2DC;I followed this with the observation that @Tesco were therefore partly responsible for me having to spend a fortune on new clothesâ&#x20AC;&#x2122;. The Tesco social media team replied asking for his new clothing sizes â&#x20AC;&#x201C; then stuffed a pair of the most garish tights they could find on their shelves into an envelope and sent them to him, daring him to wear them and tweet a picture of himself in them, which he duly did â&#x20AC;&#x201C; as can be seen here.

aa STUDY

More looking to change car as confidence is up MORE people plan to change car this year than at any point in the past five years, says new research. Findings from the AAâ&#x20AC;&#x2122;s annual Car Purchase Index shows that confidence is high among consumers and 14-reg cars could be in heavy demand. More than a quarter (27 per cent) of respondents to the AA/Populus panel study of more than 21,000 AA members say they will change their car during 2014 â&#x20AC;&#x201C; up 11 per cent compared with last year. Similarly, the number planning to change their car within the next five years has also jumped to the highest for five years: 76 per cent saying they will do so compared with 65 per cent in 2010.

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Around the world

CHINA

Major high-end car manufacturers have been struggling in China. Bentley, Ferrari and Lamborghini all posted shrinking sales last year. Bentley sold 2,191 cars to the Chinese; dropping three per cent year on year, against its global trend of 19 per cent sales growth. Ferrari sold 554 cars in China, a 30 per cent decline, while Lamborghiniâ&#x20AC;&#x2122;s sales fell 16.7 per cent.

Dealer news from somewhere other than here

JAPAN

The Japan Mini Vehicles Association reports sales of mini vehicles with an engine of up to 660cc at a record high, rising 23.8 per cent to 228,994 units. Excluding mini cars, sales rose 15 per cent in February, year-onyear, to 336,176 units, up for the sixth consecutive month. Japan Automobile Dealers Association reports that passenger car sales rose 14.7 per cent from the previous year, while sales of trucks rose to 35,093 units, up 17.3 per cent.

USA

With a 5.7 per cent decrease in vehicle ownership in the US, analysts in Chicago are predicting car sales will soon top out and maybe even decrease. According to PricewaterhouseCoopers, there will be a 25-50 per SPAIN cent increase in urban The Association of Car Manufacturers in Spain says new car dwelling and, with rising sales increased by 17.8 per cent compared to last February. It fuel prices and increasing congestion, people will not reports the beginning of 2014 was the best sales period since 2010 after a government plan offered buyers $2,000 (ÂŁ1,646), want to spend around 25 half from the state and half from the car dealer, to buy a new, per cent of their earnings Marsh_142x190mmAdvert_AW.pdf 1 18/12/2013 12:32 more ecological car in exchange for one at least 10 years old. on transport.

DUBAI

Rolls-Royce increased sales in the Middle East by 17 per cent in 2013 and the BMW-owned franchise opened an exclusive dealership in Dubai. Investing $5 million, Rolls-Royce developed a 5,000 sq ft after-sale facility within a luxury marque in Dubai. Up until now Rolls-Royces have only featured in BMW group dealerships.

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DASHBOARD.

Behind the scenes at Rolls-Royce is a British success story that just keeps on leaping from strength to strength. Just 350 staff were employed in 2003 and now the Goodwood plant just outside Chichester boasts 1,400 busy people filling the Sir Nicholas Grimshawdesigned building. The products are pretty impressive too, with an average price tag of more than £400,000; they are the epitome of luxury. Leon Poultney went behind the scenes on an exclusive tour of the eye-opening facility to get an idea of why it takes almost five months for a brand-new RollsRoyce to roll off the production line.

The building Set in the undulating countryside of West Sussex, the Rolls-Royce plant at Westhampnett covers around 22,500 square metres in the grounds of the Earl of March’s vast estate. The brainchild of Eden Project architect Sir Nicholas Grimshaw, the building itself is both industrial and beautiful at once. It’s also environmentally sustainable and home to rare species of birds and fish thanks to its ‘living’ grass roof and surrounding ponds. ‘We only have the lease to this land for 125 years,’ says our tour guide. ‘But try bulldozing the building when rare and endangered species have made a home here, it’s almost impossible. Mr Grimshaw designed the place with longevity in mind.’

The customer consultation process Despite many luxury marques now offering a bespoke service, Rolls-Royce prides itself on being one of the first to truly meet a customer’s every demand. The first port of call for any potential customer will be a design consultation session where RollsRoyce will allow the customer to discuss plans and ideas with an expert. Walking through the factory, we notice plaques and display cases that have been erected to celebrate some of the most audacious customer specifications. One wealthy chap wanted a particular gold paintjob that required £22,300-worth of real gold dust to be added to the paint mix in order to achieve the particular hue. ��| CarDealerMag.co.uk

The engines and drivetrain

The leather room

Rolls-Royce powerplants are completely bespoke to each individual model and aren’t used anywhere else in the world. The Phantom boasts a naturallyaspirated 6.75-litre V12 engine, while the Ghost and the Wraith feature turbocharged units. Eightspeed ZF gearboxes ensure rapid yet smooth cog-swaps and allow the Wraith to complete the 0-60mph sprint in a truly amazing 4.4 seconds.

It takes roughly 12 bulls to deck out a Phantom, 24 hides in total. The 18-monthto-two-year-old bulls are bred in highaltitude farms around Europe to ensure they avoid the mosquito bites bulls in lower-lying pastures suffer. A firm that makes handbags for Italian fashion house Fendi then soaks the leather in vast vats to give it a beautiful, rich colour. The hides are then hand-stretched and scoured for imperfections by specialists who will trim away any unwanted sections. A computer will then beam shapes on to the hide by laser and skilled craftspeople will cut around 350 different shapes to fit a Phantom.

New head of operations named at Skoda UK bit.ly/skodapost

Rolls-Royce The painting procedure

The production line

The woodwork area

The bare shells of each model come from Germany but the paint process begins here. Each model is first sterilised to ensure dust or other pesky particles don’t cling to the bare metal. It is then taken through an airlock into a separate room where it has primer applied to it by hand. Top-coat-painting is the only robotised process in the entire plant and that’s because the clever machines apply precisely the correct amount of paint. ‘We used to offer 38 colours to customers and now we have 46,000. A customer can bring in any object and we will match it,’ reveals our guide. In total, a Rolls-Royce will go through seven separate painting stages before it is polished to within an inch of its life for four hours under ultra-violet lamps. Only then will it head to the assembly line. ‘We have two women called the Iron Ladies working here,’ reveals our guide. ‘They’ll check every car for imperfections and won’t let them on the line until they’re happy. They scare me to death.’

Rolls-Royce went from producing just over a thousand cars a year in 2003 to 3,600 in 2013. But now with a brand-new model in the shape of the Wraith, naturally the production line has expanded in recent years. ‘We have two lines running now: one that caters for series two Phantoms and one that services Wraith and Ghost,’ explains our tour guide. Nearly every process, excluding testing and paint, is carried out by hand and three or four workers can be seen busily adding bodyparts to the bare shells as they pass along the line. ‘Every car is bespoke to the customer,’ explains our guide. ‘No two vehicles in this room will be the same.’ There is no set time limit for each production phase – it takes as long as it takes – but the workers fit complex sunroof systems in the time it would take somebody to tie up their shoelaces.

The second material to be found in abundance in any Rolls-Royce model is wood, and it requires hours of painstaking work to bring it up to the ridiculously high standards customers expect. Craftspeople will spend up to a month shaping, lacquering and French-polishing around 42 individual wooden parts that furnish the interior. The burr veneers in Phantom are bookmatched by eye in order to create a perfect mirror image. These parts are then hand-painted to ensure even the most minor imperfections are covered.

The testing process ‘You’ll find it hard to come across another manufacturer that tests a brand-new car like Rolls-Royce does,’ reveals our guide. ‘As soon as a vehicle rolls off the production line it is sent to a sealed room where it is subjected to a monsoon simulation to ensure it is completely watertight,’ he adds. In addition to this, every model will sit on four powerful pistons that shake the chassis to help specially-trained engineers check for rattles and squeaks. Finally, the car will be washed and polished for a final time before it is placed in a special presentation room, ready for the customer to pick up. CarDealerMag.co.uk | 37

FINANCE. SURVEY

Big impact on profits if no FCA permission FINANCE firm Close has surveyed its dealer partners to find out what the regulatory changes really mean to them. The company spoke to circa 2,500 dealers, with 65 per cent of them saying that more than 30 per cent of their sales included part-exchanges. Some 87 per cent said that their business would be impacted if they couldn’t facilitate a part-exchange, while 85 per cent said that it would impact on profit if they couldn’t offer point-ofsale finance. Close Motor Finance also looked at dealers that retailed less than 25 vehicles per month and the impact to them would be £190,357 over five years if they didn’t apply for FCA interim permission before April 1. Paul Kaye, sales and marketing director (pictured), said: ‘We wanted to really illustrate to our dealers that they could lose out on a lot of money over the next five years. £190,000 is not to be sniffed at! ‘Our account managers have been out on the road to support their dealer partners over the past few months, so we thought it was a good opportunity to get their feedback.’

��| CarDealerMag.co.uk

Dealers large and small clamouring to get hands on new finance service BCA: We know dealers so we can take a more complete view when offering credit facilities

CA’s new Partner Finance service is now live – and the firm has already reported ‘substantial’ interest from its car dealer customers, following a pilot scheme run late last year. The company reports hundreds of customers have expressed an interest in the service, which is aimed at independent car and van dealers who struggle to secure financial support from the banks and other traditional lenders to fund their stock purchasing. Andrew Shaw, head of BCA Partner Finance Limited, said: ‘Initial interest from the marketplace has been exceptionally high and we have expanded the team to meet the demand. ‘We have made a number of key appointments, including risk assessment, operations and sales, and have recruited from a number of fields, including used car retail, fleet operations and asset management.’ BCA is keen to point out that the service is designed to help dealers

who struggle to acquire funds to expand their businesses. ‘We are working closely with our customers to offer a personal service that is tailored to their individual needs,’ added Shaw. ‘We aim to help customers grow their business and to benefit from opportunities within the marketplace, offering an incremental facility to any existing arrangements they may have in place. As we know these dealers exceptionally well, we can take a more complete view when offering this credit facility. It all comes back to a personal service that is linked into the vehicles that are effectively the lifeblood of the industry. Small dealers

can take advantage of the buying opportunities at BCA to meet the needs of their retail customers, while our sellers will benefit from enhanced buying power at the point of sale.’ Shaw said that when BCA researched its buyer base it found that stock finance was an issue for smaller dealers, with those buying between 120 and 300 cars a year having the greatest concerns. A BCA Partner Finance credit facility will be set for each dealer that joins the scheme, with funding for 100 per cent of all auction purchases plus all fees on cars and LCVs up to a unit price of £25,000. There are no age, mileage or condition limits.

Paragon re-enters car finance market with bespoke products PARAGON Car Finance, part of Paragon Bank, has re-entered the market with a bespoke range of competitively priced, flexible hire purchase and lease purchase finance products to support new and used car purchases. Available across the market via car

dealers and finance brokers, the new core product range from Paragon Car Finance offers maximum flexibility on key product terms, including asset age at the beginning and end of the finance contract, deposit amount, loan duration and final payment. Julian Rance, head of car finance

at Paragon Bank, said: ‘I am confident that Paragon will bring new competition and additional liquidity to the market and rapidly establish its credentials for value, service and innovation with dealers, brokers and consumers.’ Money Matters, p82

..in association with

DEALFINDER.

Latest finance deals on CROSSOVERS

One such offer is available on the predicted best-seller, the Acenta 1.5 diesel manual, which comes with Bluetooth, auto lights and wipers, cruise control and a leather-covered gearknob. Customers can slip into the new Qashqai by putting down a deposit of £5,099 and then paying £244 a month for 37 months. APR representative is 6.9 per cent, meaning the final amount payable is £9,584.98. They also get three years’ lowcost servicing for an additional £299 and three years’ Pan-European Nissan Roadside Assistance thrown in too.

KIA SPORTAGE TO stop the Qashqai getting all the column inches in magazines and newspapers, Kia has updated its Sportage – a car that has done wonders to change consumer perceptions towards the Korean brand. Kia has given the Sportage a mid-life brightener with a new grille and lights – and it’s still a smart choice. It’ll be an ever smarter choice, too, thanks to a range of new finance offers. Available on the Sportage ‘1’ 1.6 petrol, customers can drive off in the new SUV with a down payment of £3,908, followed

by 36 monthly payments of £229 at 4.9 per cent APR representative. The final amount payable is £7,437 and there’s a 12,000-mile annual mileage limit. Naturally, the car come with Kia’s seven-year warranty.

HYUNDAI IX35 MEANWHILE, the Sportage’s sister car, the Hyundai ix35, has also been given a tempting finance deal to keep the car on buyers’ hit lists.

time is money

Be on the winning side

NISSAN QASHQAI IT may only have arrived in dealers’ showrooms in February but Nissan has already bundled a handful of finance offers on its British-built crossover.

Meldrum

Last year the car received a smart makeover, and now the firm has added a trio of deals. Available on the mid-range SE 1.6-litre petrol 2WD version, customers need to put down a deposit of £3,181.40 after a Hyundai contribution of £1,500, and 35 monthly payments of £249 at 6.9 per cent APR representative. An optional final payment of £7,140 brings the total amount payable to £20,785.40. The ix35s also come with Hyundai’s five-year warranty.

o you remember the ‘good old days’ when you could make as much (if not more) profit from finance commission as you could by selling a customer a car? And more importantly, will you remember the day that this all changed and finance earnings began to fall through the floor? I feel this will happen when the Financial Conduct Authority becomes the UK’s main regulator for consumer credit on April 1 – taking over the role from the Office of Fair Trading – but I might be wrong. The finance market post-April 1 will be changed forever and so will the ability for dealers to double their profits by simply arranging a credit facility so that a customer can buy a car. What were OFT ‘guidelines’ on commission disclosure to consumers will become an FCA ‘rule’, and this has implications for every car dealer in the country, especially those who enjoy a usually high level of income from finance and insurance. I foresee a future where these car dealers will change their business model and move towards putting profit back into the actual car sale rather than rely on F&I income curbed by a procedure that promotes voluntary disclosure of all finance-related earnings (including commission, volume bonuses and arrangement fees). Ask yourself, how much of an impact will a voluntary disclosure system such as this have on your organisation? How will it affect the way you transact with your finance partners? And what implications will it have on the pay plans of your sales staff (especially those in traditional business manager roles)? As with any type of change, there will be winners and losers – which one do you think you will be? I’ll be happy to talk to any car dealer who’s worried about these changes – you can call any time.

‘I foresee car dealers putting profit back into actual car sales’

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 | 39

��| CarDealerMag.co.uk

big mike.

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

A French car with duff electrics. I should have known better

odern technology can be both rewarding and frustrating in equal measure, and over the past week I’ve managed to encounter both extremes . . . It started when a customer arrived on my lot and expressed an interest in a rather smart Renault Espace that I was selling for a smidgeon under two grand. That’s a lot of car for the money, especially as it was a pretty swish special edition model with alcantara trim and xenon headlights. With a large family and a small budget, the punter was clearly quite smitten, so we did a deal that saw me taking his flaky old Peugeot 406 estate in partexchange on the basis that it would be an ideal dog-walking wagon for me and the missus, if I couldn’t sell it on quickly as a PX bargain. Fairly logically, we agreed that the transaction would take place on the first of the month, thus saving my customer the expense of a tax disc that would only be valid for the last 10 days of January, and off he went, leaving me with a holding deposit. So far, so good. But three days before my punter had arranged to collect the car I decided to give it a good clean and check the levels. After all, I pride myself on my customer service . . . And that’s where the trouble started. For it was at this point that the erstwhile obedient Espace decided to throw its toys out of the pram. Initially, I thought the problem was simple – the doors wouldn’t unlock when I pressed the button on the key, so naturally I assumed it was the battery in the key at fault. But when it didn’t work with the spare key, I knew it probably wasn’t that simple. The car would still unlock with the key, no problem at all, but being a Renault and therefore biased towards French people, the keyhole is on the passenger door. And to compound matters, the only way to stop the alarm wailing is to unlock the rest of the doors, which can be done only by pressing the internal central locking button, which is around on the driver’s side. After some amusing acrobatics, which involved me unlocking the door with the key and swallow-diving across the front of the cabin in a desperate bid to hit the central locking button before the siren kicked in (which, believe me, is neither easy nor pretty when you weigh the better part of 18 stone), I had the thing unlocked, and it was with some relief that I discovered the engine would still start. The Espace had, at least, not shat itself completely. However, I couldn’t reasonably expect my customer to

Big Mike Our man on the inside spills the beans on the car business . . .

perform such a ridiculous ritual every morning, and so it was that I called a couple of friendly (and inexpensive) auto electricians for their advice. The first told me that the main problem was that the car was French, and that ‘Valeo’ was actually a French slang term for ‘electrical failure’. When I asked if he’d come out and take a look, all I heard was a belly laugh followed by a dead line. The second informed me that French cars of this era were notoriously unrepairable in the electrical department, and that the best thing to do was leave the car unlocked at all times, as with the electrical system already in free descent it was only a matter of time before the thing was worthless anyway. Both valid points, perhaps, but neither of them helpful. So in the end I turned in desperation to the internet for help. With the power of Google, it took me all of 10

‘Valeo was actually a French slang term for ‘electrical failure’’ minutes to find the solution, in the form of a discussion that took place in 2007 between a frustrated owner and a Renault geek on an enthusiasts’ forum. Apparently, the confounded thing had decided to re-sync itself, much in the same way that my bloody mobile phone decides it’s going to reset all of its internal software just at the point where I’m about to place a crucial final bid on eBay. The solution was simple (in a French kind of way) and involved putting the key in the ignition, turning it on, turning it off again, pressing the central locking button, counting to 10, releasing it and then pressing the button on each of the two keys three times in quick succession, but one at a time. It took me about seven attempts as well. But do you know what? On my final attempt the alarm beeped three times, the hazard lights flashed and all of a sudden, normal service was resumed. And yes, I had, for the first time in my adult life, repaired an electrical fault in a car without judicious use of solder and electrical tape. Not only that, but it was a French one and the flipping thing was working perfectly. Computers, then, make it so much easier to solve niggling little problems with modern cars. Unfortunately, more often than not they’re the cause of them too . . .

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 | 41

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bAGGOTT.

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Mourning the croaked cars we fell in love with back in the day I

t was one of those I-think-we’ve-hadenough-now chats in the pub that steered my Doom Bar-soaked brain in the direction of this month’s column – and for that I can only apologise. We’d spent the evening talking about our favourite cars and the inane chit-chat moved in the familiar direction of the team’s first motors. We came to the conclusion that first (car) love doesn’t follow normal rules. The smell of the old man’s dog who owned it before you, a tape deck that chews your Now That’s What I Call Music tapes, and a constant need to top up the battery with ionized water (what was that?) is often overlooked as rose-tinted memories slip to the forefront of your mind. All I seem to remember was mine ran for a week on a fiver’s worth of fuel and the parcel shelf was made from lead such was its load-bearing capacity when it came to installing yet more speakers. I loved my first car – like only a mother could. And when I tell you my first car was a 1.3-litre Alfa Romeo Arna, you’ll understand it was a special kind of devotion that only comes from the blindness of first love. Let’s face it, the Arna was all kinds of crap. Mine visibly rusted as I washed it with Fairy Liquid – once I even managed to pull a piece of the bonnet off with a chamois leather – and it stunk of petrol every time I floored it. And being a teenager, that was everywhere. In fact, with the amount of leaded juice leaking out of the sieve-like fuel tank on a daily basis, it’s nothing short of a Norris McWhirter-bothering record that it went so far on a fiver. But, as usual, I digress. Back to the pub and the conversation has moved away from what our first cars were – to whether they’re still actually around. Batch’s first ‘car’ was a Citroen C2 VTS Code, so chances are someone got so sick of the sight of it they pushed it into a canal. Or more likely spun it into a lamppost. Dave Brown’s first motor was a lot cooler – a white original Mini – but as DB’s of more ‘senior’ years chances are it’s probably rusted away to dust. While designer Graeme was drunk enough to admit to not only owning a Fiat Tipo, but driving it too. My rot box, though trumped them all in its crapness and is almost certainly dead – and thanks to the brilliant website HowManyLeft.co.uk, I could prove it had been purged from our shores. If you haven’t heard of the website I can only apologise for the lost hours you’ll now suffer. Using DVLA data, the website – created by the talented Oliver Smith – can tell you

James Baggott *EDITOR’S NOTE: I was proud of my citroen (inherited from mum)*

exactly how many cars are left on the road (SORN or taxed) in seconds. After a few prods at my mobile I’d found that the last Alfa Romeo Arna 1.3SL died in the last quarter of 2007. A sad day. For Alfa Romeo. I couldn’t quite believe she’d gone. I mourned her passing for at least five to 10 seconds. Then we moved on to see what other cars had disappeared forever. Our lists were quickly spent and we soon discovered it’s a lot harder to think of cars that have disappeared from our roads than we first thought. Peugeot 309 GTI? Loads left. Suzuki X90? A comparatively common machine. I think the fact I had once owned an Alfa Romeo Arna was simply a lucky stroke… of sorts. The next day I got in touch with the aforementioned website-conceiver Oliver and convinced him to crunch me some numbers on the cars that have gone the way of the dodo (saved me from some haphazard guessing). A few days later he was back with a spreadsheet chock full of cars

‘Once I even managed to pull a piece off the bonnet with a chamois leather’ that we need to sound the funeral march for. In no particular order, the following have now departed: The Austin Metro LE, deceased as of 2012; the Datsun Cherry DX 4SPD, died in 2010; Austin Montego GTI, croaked it in 2013; the Proton Prism (remember that? Thought not), died in 2010; and the Vauxhall Astra Jubilee disappeared from our roads last year (shame it was only the Jubilee). And there were many more. Some made our eyes watery (Renault 21 RS, whose boxy form faded away in 2013) while some made us a little bit happy inside (Vauxhall Cavalier SR Auto, defunct as of 2006). The list was long – 250 cars long in fact. To weed out the anomalies, our number cruncher at HowManyLeft.co.uk limited the list to cars that had at least 100 registrations at any point since 1994, but even with these restrictions, 250 is still a lot of dead metal. It makes you wonder what first cars teenagers are driving around in today, that won’t be here by the time they get misty eyed and want to find out… but then that’s another column altogether. I’ll leave you to go and play on HowManyLeft.co.uk – let me know if you find any croaked corkers on it by tweeting me at @CarDealerEd.

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 | 43

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REAL DEALS.

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Jaguar XJS still looks good despite its age We snap up a fine example of a 1994 Jaguar XJS for £2,200 as part of our charity Trading Up feature. Harry Boucher reports

omething a little different on the Real Deals page this month – a car we have bought ourselves! We acquired this 1994 Jaguar XJS through autotrade-mail.com – and we’re intending to sell it on for a profit as part of the Trading Up feature being run by Andy Entwistle, Car Dealer’s operations director. The car you see below was the final design of the XJS and included the then original ‘big bumpers’ that matched the colour of the vehicle. Production of the XJS stopped in 1996, making this model one of the last 15,000 to roll off the production line, and it has been enjoyed ever since, covering 110,000 miles. We negotiated with Johnny Sparshatt of Sycamore Cars in Emsworth, Hampshire, who gave the XJS a lot of credit despite its age. He said: ‘It was a nice one, needed little bits doing to it, hence why it went out cheaper. The customer had even filled it up with petrol and taxed it before part-exchanging it back in.’ Just £2,200 is a steal for a car of this pedigree and quality, even if there are a few signs of age on the bodywork. Sycamore Cars is not your average

‘‘

village garage – it is, in fact, quite extraordinary. Sitting pretty on the forecourt at the start of March was Eric Clapton’s old Ferrari, which was sold for £70,000 and shipped to a very happy Australian. Not only does it have some of the most soughtafter classic cars in the United Kingdom gracing its Tarmac, it also builds specialised dragsters, hotrods and motorbikes. A modified Willys coupe, a stupendous Ford Cortina dragster and the Chevrolet 55 that was used in the 1971 road movie Two-Lane Blacktop are just three of the impressive fleet of classic and revamped cars. Operating since 1974, the garage was around at the start of the Jaguar XJS’s reign and at that time it would have been beyond its dreams to have one to show off to customers. The British XJS, known as the XJ-S when it came into production in 1975, was seen as a replacement for the iconic E-Type Jaguar. No pressure then! However, it was in fact intended to be very different – more comfortable and luxurious and less of a sports car.

He was sad to let the XJS go but felt it was time for a change

Its popularity saw the car having a 21-year production life and a grand total of 115,413 were made before it was replaced by the XK8 model. Under the bonnet lies a 4.0-litre, six-cylinder engine that produces 229bhp, getting the car from 0-60 in 6.9 seconds and on to a top speed of 147mph. Many Jag enthusiasts believe the engine to be the best ever made for their cars. In 1994, Jaguar produced 6,643 of the XJS model, which is more than any other year throughout the ’90s other than in 1990 itself, when it produced 9,255. Our Jaguar was part-exchanged by its previous owner who had bought the car from the same garage only two years before. However, Johnny insisted it wasn’t because of the car’s quality. ‘He just wanted a Mercedes and we had a nice one in stock. He was sad to let the XJS go but felt it was time for a change.’ Thanks to this move we now have the XJS in our hands and hope that a bit of tender love and care will boost the price of the car and give us a nice little earner. But before we turn our attentions to the Jag, we’ve got another car for our Trading Up feature. Turn to page 81 for the latest update. [CD]

This 1994 XJS awaits some tender love and care before we try to sell it on

Visit autotrade-mail.com to start your free 14-day trial.

CarDealerMag.co.uk | 45

forecourt.

Toyota Verso Just how important is this new 1.6 diesel engine for Toyota and its UK dealer network? It’s very important. In the UK, if you look at the compact MPV sector, diesel is the majority powertrain and the displacement mix has shifted downwards significantly from 2.0-litreplus to really 1.5/1.6 litres. So if we’re going to be at the heart of the segment we have to have a competitive diesel powertrain in that range, otherwise we’re not appealing to a significant proportion of the customers. Really, this is our most effective way of securing that and that’s why it is so important to us. What proportion of UK Verso sales do you expect the new engine to take?

Matt Harrison, Toyota GB president, speaks to Car Dealer about the Verso and why he wants a small SUV Today we’re out of kilter with the segment a little bit. The segment is majority diesel; we are still more petrol in terms of sales mix. We’d expect with the introduction of the 1.6 diesel, which is now the only diesel offering with Verso, we’ll see ourselves come back to the segment average. I’d be fairly comfortable with 50/50 as a sales mix. But in reality the segment is around 65 per cent diesel, 35 per cent petrol, so we see ourselves moving more towards that level of sales mix.

What was the reason behind discontinuing the Verso S? The Verso S was a Japan-built product, and certainly at the times of higher or more detrimental yen/euro exchange rates it didn’t make a lot of sense. It wasn’t a very high-volume proposition in Europe frankly, and ditto Urban Cruiser, which is another low-volume product imported from Japan that we’ve discontinued. We felt the business case to continue to sell just wasn’t there. What we will continue alongside

CABIN

There are some questionable plastics but generally it’s solid. Shame there isn’t much design flair

the knowledge

ENGINES

Model: Toyota VersoTrend 1.6 D-4D Price: £21,795 (as tested) Engine: 1.6-litre, turbo diesel Power: 110bhp, 270Nm Max speed: 115mph 0-60mph: 12.5s MPG (comb’d): 51.4 Emissions: 119g/km Residual values (three years): tbc

The new 1.6-litre diesel is the big news. It improves fuel economy and is impressively refined for a derv

LOOKS

It’s no ugly duckling, what with the sharplooking front end, but it certainly won’t get pulses racing

target buyers:

Young families after a practical, economical carry-all, and more mature buyers

the rivals: Kia Carens, Renault Grand Scenic, Volkswagen Touran

Key Selling Points: 1. Refined driving experience 2. Five-year warranty 3. Even greater model choice

Deal Clincher: New engine makes the Toyota Verso more relevant to UK buyers than ever before Searches supplied by

Monthly AutoTrader.co.uk searches: 83,668 ��| CarDealerMag.co.uk

on test To make its Verso a more compelling choice for buyers Toyota What is it?

What’s under the bonnet?

Since its launch in 2009, Toyota’s Verso MPV has been a slow burner, appealing to families with its no-nonsense practicality and impeccable reliability. However, with buyers now favouring small-capacity diesel engines, the Verso has been losing out to its rivals in this crowded marketplace. The Japanese company has responded to this by replacing the 2.0litre oil-burner of old with a brand-new 1.6-litre unit.

The new 1.6-litre diesel motor is provided courtesy of Toyota’s new partnership agreement with BMW, and offers 110bhp and 270Nm of torque. Improving on the fuel consumption and CO2 emissions figures of the outgoing 2.0-litre unit, now at a combined 51.4mpg and 119g/km respectively, the new unit will increase the Verso’s appeal to economy-minded European buyers. The existing 130bhp 1.6and 145bhp 1.8-litre Valvematic petrol

in association with

Verso is the Prius Plus, which is our seven-seat hybrid MPV, so we still have a full spectrum of offerings within the compact MPV segment. Are we going to see a smaller, non-fourwheel-drive crossover from Toyota in the near future? I think this is probably one of our biggest opportunities.

The segment has grown a lot, particularly in the non-four-wheel-drive crossover category. The Nissan Qashqai has been a very innovative product that’s really reinvented that segment, and we see a lot of manufacturers following that. Certainly, that is a big discussion internally as to

whether we can also optimise that. RAV4 does play as a very traditional 4x4 product, a very large product that plays at the very top of that compact SUV segment, and therefore there is certainly space for us to consider something beneath, but as yet there is nothing confirmed at this point.

has slipped a new engine under the bonnet. Daljinder Nagra reports options will continue to be offered alongside it.

What’s the spec like? The introduction of the 1.6-litre diesel sees a new ‘Trend’ trim level added to the range (£21,795£21,995). It adds choice toys such as front parking sensors, 17-inch alloy wheels and sat-nav with Google Street View, but even one-from-the-bottom ‘Icon’ models get dual-zone climate control, USB connectivity, cruise control, digital radio and a rear-view camera. Entry-level ‘Active’ models get air con and electric front windows to play with, while top-drawer ‘Excel’ gets part-leather, auto wipers and lights.

What’s it like to drive?

What do the press think?

Toyota has worked hard to ensure the Verso is a thoroughly peaceful place behind the wheel, and it’s astonishing just how quiet it is on the move, with only the roar of the tyres on harsher surfaces and whip of the wind around the door mirrors at higher speeds disturbing the tranquillity. That quietness is matched by a compliant ride and light steering. The comfort-biased set-up means the Verso soon feels out of its depth on country roads, but thanks to responsive brakes and an unobtrusive gear change it is a relaxed drive where it is likely to spend most of its time – on the school run and motorway.

What Car? said: ‘Relaxing driving manners, competitive running costs and solid build quality all add to the Verso’s appeal.’

What do WE think? While it isn’t the sort of car that will make customers turn around and take a second glance at when they’ve parked up at night, the Verso will provide years of faithful, trouble-free service. However, with rivals such as the Kia Carens offering lengthy warranties and a more upmarket feel, the Verso’s utilitarian demeanour will appeal to only a select few. CarDealerMag.co.uk | 47

forecourt. the knowledge Model: BMW 435i M Sport Convertible Price: £45,470 (as tested) Engine: 3-litre straight-six petrol Power: 306bhp, 400Nm Max speed: 155mph 0-60mph: 5.4s MPG (comb’d): 34.9 Emissions: 190g/km Residual values (three years): tbc

target buyers:

Discerning types and business execs who like the feel of the wind in their thinning hair.

the rivals: Audi A5 Cabriolet and Mercedes E Class Convertible.

Key Selling Points: 1. Eye-catching styling cues 2. Enhanced spec 3. Excellent driving dynamics

Deal Clincher: Has to be the warm air that’s blown on to your neck in cold weather from the seats. Searches supplied by

s e i r e S 4 BMW

Monthly AutoTrader.co.uk searches: N/A (new model)

e l b i t r e v Con

Make no mistake, this is a cracking coupe. Dave Brown puts it to the test What is it?

What’s the spec like?

In a nutshell, the BMW 2 Series is the new name for the 1 Series Coupe – and it certainly takes the game on a stage. The first-ever 2 Series car, it’s a rear-wheeldrive, two-door model – quite a bit bigger than its predecessor and designed to be sportier too. BMW says the car gives those who drive it a sense of freedom and power and it’s not wrong. It is, quite simply, sensational: comfortable and quick, agile and responsive. The top-ofthe-range M235i is particularly impressive.

The range starts with the SE level, offering 17-inch light-alloy wheels with run-flat tyres, BMW’s Mobility system, a six-and-ahalf-inch colour display screen and Drive Performance Control with ECO PRO, Comfort and Sport modes. Sport trim adds ambient lighting, high-gloss black interior trim with coral red finish and a Sport multi-function leather steering wheel. Then come Modern and M Sport before the top-of-the range M235i provides goodies such as variable sport steering, 18inch alloys and iconic M branding.

What’s under the bonnet? The engines available range from the 220d Coupe to the latest 326bhp M Performance model, the M235i Coupe. Coming soon is the 228i, joining the 220i, 218d and 225d derivatives to complete the line-up.

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What’s it like to drive? Given the keys to a top-of-the-range M235i, we had a huge amount of fun and were mightily impressed with the car. In fact, there wasn’t much at all that we didn’t like. The sports seats are superbly comfortable and supportive in the twisty

stuff, the fascia is well laid-out and easy to understand, the engine more than up to the job and sounded great – almost as if it was having as much fun as we were.

What do the press think of it? Auto Express said: ‘Whether you go for the manual or auto, the M235i feels at home when attacking a series of bends and fast sweepers.’ Autocar said: ‘It’s quietly handsome, and its subtlety of look might be a good thing, given the boundless scope of its go.’

What do we think of it? We loved it. The cockpit-style cabin is well designed and ergonomically pleasing, and the design is true to BMWs of the past yet has a fresh feel at the same time. It’s a car that’s quick, capable and sure to win BMW some new fans.

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BMW shows its mettle with the hard roof on the 4 Series Convertible. Dave Brown reports What is it? There was once a time when life was quite straightforward at BMW. When it came to convertibles, the 3 Series was just a drop-top version of the perennial 3 Series saloon. But now times have changed, and in a bid to attract more customers BMW has created a whole new model range, among which is the 4 Series Convertible, very much an offering in its own right. Lower, wider and longer than the 3 Series drop-top it replaces, it has a folding metal roof that can be raised or lowered in just 20 seconds.

What’s under the bonnet? The range consists of two petrol engines and one diesel choice. The 435i we tested leads the line-up with its straight-six 3.0-litre petrol lump, which develops 306bhp. The car can sprint from zero to 60mph in just 5.4 seconds, on the way to an electronically-limited 155mph. It’s

quick all right – and hardly breaks a sweat even when pushed hard in the most demanding of environments. The 428i variant, equipped with a two-litre, four-cylinder turbocharged engine, produces as much as 245bhp with peak torque of 350Nm. But it’s the diesel choice, the 420d, which is likely to be the best-seller.

What’s the spec like? The level of standard equipment is very high. This is a car that is very comprehensively specced, with Xenon headlights, heated leather seats, front and rear parking sensors as standard plus plenty of other goodies. The standard SE trim level can be built upon with the Sport, Modern, Luxury and M Sport trims.

What’s it like to drive? Assured and accomplished, it’s a car that’s a pleasure to pilot – comfortable, capable and classy. It doesn’t matter whether the top is up or

s e i r e S 2 W BM

down, BMW claims to have created a vehicle that provides an exhilarating sense of air and light – and it’s hard to disagree. The car feels most at home as a cruiser, but perhaps we arrived at that conclusion because we were driving the other car featured on these pages, the sensational 2 Series Coupe, on similar roads in the mountains of southern Spain.

What do the press think? Car Magazine said: ‘There’s excellent refinement with the roof up, with just a tad of buffeting around the A-pillars, and a sonorous, sweet note from the straight six when you nail it.’

What do we think? In its first full year on sale, BMW expects to sell around 5,300 4 Series Convertibles and that’s a target that is very achievable. We were very impressed with the car. It’s sporty, sumptuous and supremely well put together.

Coupe

the knowledge

Model:

BMW 2 Series M235i Coupe Price: £42,020 (as tested) Engine: Three-litre straight-six Power: 320bhp, 450Nm Max speed: 155mph 0-60mph: 4.8s MPG (comb’d): 37.2 Emissions: 176g/km Residual values (three years): tbc

target buyers:

Young single people, couples without children, buyers new to the BMW brand.

the rivals: Audi A3, Mercedes Benz CLA, VW Scirocco

Key Selling Points: 1. Great driving dynamics 2. Lots of clever tech 3. Sporty and fun to drive

Deal Clincher: The sporty credentials and eye-catching design that add up to a great package. Searches supplied by

Monthly AutoTrader.co.uk searches: N/A (new model) CarDealerMag.co.uk | 49

Our Formula One inspired ENERGY engines deliver you more miles for your money. We’ve designed a range of Formula One inspired ENERGY engines for the Renault Clio. Why? Because they deliver up to 21% better fuel consumption with reduced CO2 emissions and a combined mpg of 88.3.. Oh, and because it’s nice to say, ‘I’ve got a Formula One inspired ENERGY engine under the bonnet.’

Visit renault.co.uk or call 08000 28 28 14 to book a test drive

Model shown Clio Dynamique S MediaNav with optional Flame Red Clio core range are: Urban 40.4 (7.0) – 78.5 (3.6); Extra Urban 60.1 range are 127-83g/km. EU Directive and Regulation 692/2008 test road conditions and other factors. Terms and exclusions apply. New 4+ package applicable to new retail cars. Warranty 4 years/100,000 miles and routine servicing 4 years/48,000 miles (whichever comes first); servicing package available RCI Financial Services Limited, PO Box 149, Watford WD17 1FJ. For finance, conditions apply. Guarantees and indemnities may be required. You must be at least 18 and a UK resident (excluding the Isle of Man and

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renault.co.uk

RENAULT CLIO

metallic paint. The official consumption figures in mpg (I/100km) for the Renault (4.7) – 94.2 (3.0); Combined 51.4 (5.5) – 88.3 (3.2). The official CO2 emissions for the environment figures. Fuel consumption and CO2 may vary according to driving styles,

to Renault Selections finance customers only, can alternatively be purchased for just £299 (price shown valid when purchased by 31 July 2014). Visit renault.co.uk/4plus for full details. Finance provided by Channel Islands) to apply for finance. Renault Call Centre opening hours: 9am - 5.30pm weekdays, except Wednesdays 10am - 5.30pm. The Call Centre is closed Saturday, Sunday and Bank Holidays.

CarDealerMag.co.uk | 51

forecourt.

in association with

cabin

It’s soundly screwed together, but a Golf GTI somehow manages to feel just a little bit more special and premium

LOOKS

ENGINES

Look closely and you’ll spot the differences between this and lesser models. But where’s the loud paint like the old car had?

Just one for now – a 2.0-litre turbocharged petrol developing 263bhp or 276bhp. No word on high-performance diesels yet

Seat Leon Cupra

The previous Leon Cupra was around for five years and was due for retirement. Here’s its replacement. Leon Poultney reports What is it? The hottest version of the current generation Leon. Packing a menacing 276bhp in its most powerful guise, the new-generation Cupra is quite simply one of the fieriest hot hatches on the market right now. In fact, only the Vauxhall Astra VXR competes on pure potency in this price bracket, but conversely the angry Leon has lost some of the hairy-chested styling of previous generations.

What’s under the bonnet? Just one engine is available for now and it’s a new 2.0-litre TSI that comes ready to rock in two states of tune: 263bhp or 276bhp. But the latter is likely to be the more popular in the UK as it’s only £1k more expensive than the base model. Fuel efficiency in the most powerful Leon Cupra 280 model is on a par with the 218bhp Golf GTI (44.1 mpg) and it produces 40g/km CO2 less than Vauxhall’s Astra VXR. In fact, Seat’s engineers have worked some kind of small ��| CarDealerMag.co.uk

dragging the car through tight bends miracle by creating a car that is not only more powerful than its sister GTI with ease. But as with much modern technology, it sanitises the experience but also cleaner and more efficient. somewhat. Don’t get us wrong, this is What’s the spec like? by no means a bad car, it’s just not as raw or visceral a driving experience as All Cupras come with striking we had hoped for. automatic LED headlights, sports seats and rain-sensing wipers. The Cupra 265 rides on 18-inch wheels, What do the press while customers opting for the 280 think of it? model get titanium-finish 19-inch Auto Express said: ‘If we had a numbers, a navigation system and criticism it’s that it hides its potential a smart roof spoiler. Unfortunately, too well. Take it easier and it feels too mad yellow paint jobs are out of similar to an FR model with any old the question, as the Cupra comes TSI engine.’ in black, red, or four shades of grey. Prices range from £25,690 to £28,225. What DO WE THINK

What’s it like to drive? It’s certainly fast. The new Cupra weighs just 1,300kg and boasts just shy of 280bhp, 0-60mph takes just 5.7 seconds and it’s limited to 155mph. A clever limited slip differential and torque vectoring system also ensure speed isn’t scrubbed through corners, with the electronic systems

OF IT?

Stack the new Leon Cupra up against the current competition and it makes a lot of sense: more powerful and cheaper than a Golf GTI and better equipped than an Astra VXR. But part of us pines after the madness of a proper hot hatch. This will likely prove a winner for the marque in terms of sales but it may rile some of the hardcore following.

the knowledge Model: Seat Leon SC Cupra 280 DSG Price: £28,225 (as tested) Engine: 2.0-litre, turbocharged petrol Power: 276bhp, 350Nm Max speed: 155mph 0-60mph: 5.7s MPG (comb’d): 44.1 Emissions: 149g/km Residual values (three years): tbc

target buyers:

Hot-hatch fans who have had children and grown out of the crazier offerings

the rivals: Ford Focus ST, Renaultsport Megane 265, Vauxhall Astra VXR

Key Selling Points: 1. Generous levels of equipment 2. Keenly priced 3. More powerful than its chief competition

Deal Clincher: Its useability – this is a feisty machine that can happily be driven every day Searches supplied by

Monthly AutoTrader.co.uk searches: 913,181

THE AVERAGE UK MOTORIST SPENDS

THREE DAYS A YEAR STUCK IN TRAFFIC

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*INRIX report, April 2013

CarDealerMag.co.uk | 53

FEATURE. GENEVA motor show 2014

Small cars grab the limelight big time in Geneva by JAMES batchelor @JRRBatchelor

16-page special

Showstoppers

There were reveals aplenty at this year’s Geneva Motor Show. Here are the cars that caught our attention...

he message was clear this year at the 84th Geneva Motor Show: Small cars are big news. We were treated not to one but four new city cars from the factories of Europe. Toyota, Citroen and Peugeot finally got their act together and showed off replacements for their elderly city car trio – the Aygo, C1 and 108 will go head to head with the Volkswagen Group triumvirate of Citigo, Mii and Up. But it’s not just the Germans that the Aygo, C1 and 108 will have to fight for city car honours, though. Arguably the most glam small car launch Geneva has ever witnessed, Renault showed off its new Twingo. Gone is the stodgy styling and in its place is a modern, chic outline that has design cues from the classic Renault 5. It also brings something new to the sector – a rear-engined, rear-wheel-drive layout. If it’s as good as we think it’ll be, it’ll be a top seller for Renault dealers and a favourite among the motoring press. While the dinky cars grabbed the headlines, there were other showstoppers, too. Lamborghini gave its Gallardo replacement its European airing, McLaren debuted its new 650S supercar and Audi revealed its new TT – a car that has done so much to make the four-rings badge desirable in the UK over the past 15 years. Concepts were aplenty too – the most notable of which was the Volvo Concept Estate. Pointing the way to a future estate car, we say: Build it Volvo. The Car Dealer team pounded the Geneva halls to get the latest news stories – sit back, relax and enjoy our 16-page special.

Honda Civic Type R Concept

Maserati Alfieri

A welcome return by the Japanese brand into the hot-hatch market. Certainly, the huge wing and quad exhaust pipes fitted to this concept version make the likes of the Volkswagen Golf GTI and Seat Leon Cupra look positively apologetic. Rumoured to sport 300bhp, a customer version will be ready next year.

Maserati is celebrating 100 years this year, and it’s marking it by building this – a slinky two-door named after its founder. Powered by the GranTurismo’s 4.7-litre V8, the Alfieri mixes classic Maser looks and more radical lines and creases. No word on whether it’ll be made but we think it will be – it would be a welcome replacement for the GranTurismo.

Renault Twingo For a long time the Twingo was a likeable but otherwise plain supermini, boasting chic French looks and not much else. Now, however, Renault has reinvented its smallest car, making it rear-engined and with rear-wheel-drive, just like a Porsche 911. This new layout is likely to affect practicality somewhat, but it promises to be an accomplished – and affordable – driver’s machine when it reaches UK showrooms in September. We can’t wait to have a go.

Lamborghini Huracan In the time it has taken Lamborghini to launch this successor to its best-selling Gallardo, arch-nemesis Ferrari has released three distinct models, all of which have moved the game of mid-engined V8 supercars further into the stratosphere. It looks as though Lambo’s riposte has been worth the wait, though. Not only does it look utterly gorgeous but its performance potential is guaranteed by a shattering 5.2-litre V10 that develops 602bhp, and a new lightweight hybrid carbon-fibre and aluminium construction.

inside geneva ��| CarDealerMag.co.uk

MITSUBISHI More plug-in hybrid models on the way p58

NISSAN Hot hatch Nissan on the cards p63

in association with

Mitsubishi XR-PHEV

Toyota Aygo

Volvo Estate Concept

Looking awfully like a Range Rover Evoque, Mitsubishi’s new concept previews a lot of what we can expect in the next ASX, due in two years. It uses a brand-new 1.0-litre turbocharged petrol engine (which will soon be used in a number of new Mitsubishis) mated to a single motor with a high-boost converter at the front and a highcapacity battery under the floor. What’s more exciting though is that Mitsubishi has a habit of making its concept cars look like production cars.

In the face of the vastly more upmarket Volkswagen Up, the rather tinny firstgeneration Toyota Aygo was never going to win the hearts of UK car buyers. Along with Peugeot’s 108 and Citroen’s C1, the new Aygo is aimed at a younger, more demanding customer. As such, it sports a radical redesign, a higher-quality interior and a range of customisation options, all powered by a peppy three-cylinder petrol engine.

Volvo’s transformation from fuddy duddy to desirable has been rapid and intriguing. This latest Estate Concept is set to continue this change. With crisp exterior lines and a futuristic interior, it is worlds away from the dog-hairencrusted car you used to go to school in. While officially just a design study for now, we have it on good word that the front-end styling will make it unchanged on to the forthcoming XC90 SUV.

Jaguar XFR-S Sportbrake Fast estate cars are all well and good, but if you’re bored of the styling direction taken by Mercedes and Audi then there was little else to choose from – until now. Unveiled at the Geneva Motor Show, the Sportbrake effortlessly combines stunning estate styling with the brand’s fire-breathing XFR-S saloon to create a car that will get the neck hairs of even the most jaded family man standing to attention. First drive: p56

Audi TT The hugely popular Audi TT has reached its third generation and, in keeping with its maker’s ‘Vorsprung Durch Technik’ philosophy, boasts some trick new kit. Key among the highlights is a new TFT instrument display, which can display the normal clocks or a huge sat-nav display at the flick of a switch. On top of that, the styling has been made crisper, with hints of the brand’s flagship R8 supercar showing in the front-end design. Watch it accelerate out of showrooms.

McLaren 650S From offering only the hallowed F1 supercar in the early ’90s, Woking F1 team McLaren’s road car offerings have swollen in recent years. The 650S is the latest offering, which has been shown in Geneva in both coupe and ‘Spider’ convertible guises. The 641bhp supercar will sit between the 12C and P1 in the model range and will cost from around £195,000. First deliveries are due later in the spring and it clearly mixes styling cues from both the outrageous P1 supercar and 12C.

HYUNDAI Posh Genesis saloon coming to the UK p67

SKODA There’s a market for Skoda coupe p68 CarDealerMag.co.uk | 55

FEATURE. GENEVA motor show 2014

16-page special

First drive

Jaguar XFR-S Sportbrake A brief disclaimer before we start: The test drive we embarked on was rather on the short side, as the British marque is keen to keep us on tenterhooks. Leon Poultney reports on his sneak preview of the new hot Jaguar What is it? It’s the performance estate that customers tired of the German offerings have been waiting for. A thoroughbred 5.0-litre V8 Jag with enough room in the back for the kitchen and possibly even the bathroom sink. It’s based on the feisty XFR-S saloon but a longer wheelbase, wider stance and extended roof line offer more leg and headroom for occupants and 1,675 litres of loadspace when the rear seats are folded flat.

What’s under the bonnet? Jaguar’s barking supercharged 5.0-litre V8 resides underneath the scooped and elongated bonnet – a unit that produces 542bhp and an almighty 680Nm of torque; easily enough to pull the wheels off a caravan let alone tow it. That power is driven to the rear wheels via an eight-speed ‘Quickshift’ automatic gearbox that can be manually overridden thanks to a pair of flappy paddle shifters mounted on the steering wheel. We’d like to shout about the potent yet fuel-

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efficient engine but we can’t. This thirsty beast returns just 22.2mpg and produces a polar bear-choking 297g/km CO2. However, the XFR-S Sportbrake does feature near-straight-through quad exhaust pipes that emit a truly ear-popping note from the rear. Every cloud and all that...

What’s the spec like? Jaguar is yet to reveal a full specifications list but this is a range-topping vehicle, so expect it to be lavished with every JLR gadget and nicety currently available. We do know that it features a 380W, 12-speaker Meridian sound system as standard, a reversing camera, Bluetooth, full leather interior and a series of special edition paint finishes. Oh, we nearly forgot the 20-inch ‘Varuna’ forged alloy wheels. They look superb.

What’s it like to drive? As previously mentioned, the Swiss road route wasn’t the perfect arena to really stretch the big Jag’s legs but even the most tentative prod from the right foot revealed that an almighty amount of power is available. The engine crackles and spits even in the default driving mode but really bellows into life when you prod the chequered flag button

looks

It certainly has presence. The R-S treatment works particularly well on the Sportbrake with its large grilles, spoilers and wheels

located on the centre console, which improves throttle response, piles on the revs and firms up the suspension. The XFR-S isn’t fitted with Jaguar’s excellent air suspension system, as the power driven through the rear wheels would render it pointless. Instead, the ride has been stiffened by 30 per cent over the standard XFR model and it has further components borrowed from the XKR-S and brand-new F-Type sports car. The result is a firm ride but not one that crashes and bangs over rutted surfaces. Turn in is sharp, steering feel is impressive and power to the rear

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the knowledge Model: Jaguar XFR-S Sportbrake Price: £82,000 (est) Engine: 5.0-litre supercharged V8, petrol Power: 542bhp, 680Nm Max speed: 186mph (limited) 0-60mph: 4.6s MPG (comb’d): 22.2 Emissions: 297g/km Residual values (three years): TBC

target buyers:

Wealthy sports car owners in need of a practical car

the rivals: Mercedes-Benz CLS 63 Shooting Brake, Audi RS6

Key Selling Points:

ENGINES

Jaguar’s snarling and much-loved supercharged 5.0-litre V8, which packs 542bhp and 680Nm of torque

wheels is enough to brake traction even at low speeds. Given the right route, this thing could be one hell of a laugh.

WHAT DO THE PRESS THINK OF IT? Autocar said: ‘The XFR-S Sportbrake is an interesting proposition. It has that precise and “engineered” feeling that AMG manages in cars such as the CLS wagon, but lacks the refinement, outright traction and stability of Audi’s RS models – which makes it feel closer to a pure sports car.

cabin

We don’t know the full specification yet as Jaguar is remaining tight-lipped. But it’s sure to be as lavish as every other Jag is

1. Near-straight-through exhausts 2. Potent power and noise 3. Sure to have big specification

Deal Clincher: Jaguar’s fastest-ever estate car. What’s not to like?

WHAT DO WE THINK OF IT? The jury is still very much out but even a short blast uncovered a car that manages to disguise its bulk thanks to some precise steering and a well-judged chassis. There’s no doubt the XFR-S is quick, either, and there’s an impressive amount of room for rear occupants. Those in the market for a supercar-slaying estate should be pleased, as the Jag offers the perfect excuse for a weekend trip to the local dealer and a rather raucous test drive. The Jag is a welcome addition to a growing market: The fast estate car. CarDealerMag.co.uk | 57

FEATURE. GENEVA motor show 2014 Manufacturer won’t rule out hot Mirage model Mitsubishi hasn’t ruled out making a hot Mirage model to take the fight to the Ford Fiesta ST. Potentially badged as an Evolution model, a Mirage Evo could keep performance fans happy until a new Lancer version arrives in three to four years’ time. Mitsubishi Motors in the UK boss Lance Bradley said his team had been discussing a breathed-on Mirage. He added that small cars such as the Fiesta ST and higher-powered sports cars had polarised the opportunity for the Lancer Evo and he could see why a hot Mirage would be an exciting proposition. ‘We’re set to make a small profit this fiscal year and then next year are anticipating a better one again – when you’re making money it makes niche projects a lot easier,’ he explained. ‘When you’re not making money it is hard to sign off bespoke projects that may or may not work, but when the balance sheet is healthier you can be more adventurous.’ Bradley later tweeted a picture of a Mirage with flared wheel arches, large spoiler and gaping front grille, asking his followers if the firm should do a high-performance model. If it looks anything like the picture he tweeted, there would be few hot-hatch fans who would say no. Bradley has promised Evo fans will be given a final fix this year when the last batch of 40 Evo Xs arrives in September. All white, the cars are being brought in to celebrate Mitsubishi’s 40th year in the UK and are promised to be the ‘most powerful Evos ever’. Bradley said: ‘They’ll carry the FQ badging and will be the most powerful Evo ever.’ Currently there are more orders for the special edition Evos than Mitsubishi has cars for and the manufacturer hasn’t yet decided how the cars will be allocated. One thing is certain – the new Evos will be fast. ‘The Evo can take loads of power – we had one in last week running 600bhp and it can take as much as 700bhp,’ said Bradley, adding: ‘There is a possibility that there will be a future Evo based on a plug-in hybrid powertrain and that will be amazing – but this is the last of the internal combustion engine versions and we want to go out with a bang.’

16-page special

Mitsubishi on big drive to expand to 130 UK outlets MITSUBISHI: Company flooded by interest as it moves forward from its current 110 dealers

itsubishi is on a major drive to appoint new dealers in the UK – but the company is receiving more interest than it can cope with. The company has a network of around 110 dealers in the UK, and with new appointments the number could stretch to 130 by the end of the year. ‘We’re getting so much interest from prospective dealers, we are starting to get to the point where we can’t handle it,’ Mitsubishi Motors in the UK managing director Lance Bradley exclusively told Car Dealer Magazine. ‘We’re finding dealers are being attracted to us because of our promises of great dealer profitability and our focus on customer experience.’ Bradley said smaller independent dealers Lance Bradley were the type of dealer currently being attracted to the Mitsubishi franchise – and that was fine by him. ‘Smaller independents work much better with us because they operate in a similar way to us where the personal relationship is more important,’ he explained. ‘Smaller independents also don’t have hundreds of brands – so we’re important to them and they’re important to us and that’s a good relationship to have. ‘Chevrolet decided to withdraw from Europe, which has meant that there’s a lot of dealers who

by JAMES batchelor @JRRBatchelor

are looking for something else to do, and some of those are really good, so that works well for us.’ Bradley is clear that he doesn’t want ‘gin palaces’ in his network – but dealerships that put the customer experience first. ‘Somebody said to me the other day they went into a premium manufacturer’s showroom, and they had beautiful black leather sofas and espresso coffee machines, and he thought: “I’m paying for that,”’ said Bradley. ‘I understand this particular premium car manufacturer is very successful and it’s what they want to do, but there is room for somebody like us to provide a different kind of experience. ‘If you want to go out for a nice meal, sometimes you’ll go to a famous restaurant in London and you know exactly what you get and it’ll be amazing and it’ll be £100. Other times you go to your local pub and the beer will be great and the service will be friendly and the bill will be £50. Which experience is better? They’re different. ‘We’re like the local pub that people go to because it’s a nice experience.’

Advertising campaign spend hits £20m MITSUBISHI Motors in the UK has committed to an advertising spend of £20m this year to get the brand back on buyers’ shopping lists. The Japanese company was one of the major sufferers of the 2008 global recession because of poor exchange rates. But now, thanks to improved rates, ��| CarDealerMag.co.uk

new products and renewed energy within the brand, Mitsubishi is aiming for the big time. ‘Back in 2008, our margins were hit massively,’ Mitsubishi Motors in the UK managing director Lance Bradley exclusively told Car Dealer Magazine. ‘It meant we couldn’t spend so much on the brand building activities like marketing

in association with

All-white special edition Evos sold out

Plug-in hybrid technology for all Mitsubishi models Mitsubishi’s UK boss has revealed the brand will offer a plug-in hybrid (PHEV) version of every model in its range within five years. The clever technology – that debuts in the Outlander PHEV in April – lets drivers travel for 30 miles at up to legal motorway speeds without using petrol. When the battery runs out, the engine seamlessly kicks into life and drivers continue with their journey. ‘The average car journey is around 25 miles, so owners could potentially never use the fuel in the tank if they charge the car every night,’ explained Mitsubishi Motors in the UK boss Lance Bradley. The PHEV can be charged with a normal three-pin plug, costing around £1.40. PHEV models are road tax and congestion charge-exempt and Mitsubishi promises the cost won’t put the technology out of reach of buyers. Once the Outlander PHEV has bedded into the UK market, the new ASX crossover will be next to feature the technology. The manufacturer showcased a concept ASX at the

Geneva Motor Show. Bradley explained: ‘Mitsubishi has a history of showing concepts that are very similar to production cars and the next ASX will be very close to that.’ He said it would likely feature a 1.1-litre high-output, turbocharged petrol engine coupled with an electric unit and it is this PHEV powertrain that will be rolled out across the range. ‘We’re trying to normalise plug-in hybrid technology,’ Bradley said. ‘We made mistakes with the iMiEV by selling that in select dealers – that unfortunately signalled to consumers it was different and unusual. With PHEVs we will promote it as a normal choice – it’s a car that can do 30 miles without using any petrol and a car that can do a longer drive if needed.’ Mitsubishi believes the new range of PHEVs is the start of a renaissance for the brand in the UK and that sales could increase by 10,000 units a year thanks to the new technology.

Mitsubishi’s striking XRPHEV concept

and customer incentives. This year, however, we are ploughing a lot of money into marketing to support our products and dealers. Our marketing spend is 330 per cent more than last year.’ Bradley said Mitsubishi Motor Company (MMC) is pushing a lot of money towards the UK market as it sees it to be one of the most

important in the world. ‘The factory is supporting us and is completely behind our big five-year plans,’ he said. The £20m marketing spend will go on press, poster and online campaigns to boost brand awareness. Mitsubishi will be back on TV, too – an area the brand hasn’t been in for some years.

It’ll be ‘all white’ on the night for fans of the Mitsubishi Evo as the manufacturer has promised 40 special edition versions of the rally fans’ favourite will be hitting dealers this September. Designed to celebrate Mitsubishi’s 40th year in the UK, the hot models will be all white and are set to be the ‘most powerful Evos ever’, according to the firm’s UK boss Lance Bradley. Power output hasn’t been finalised, but Bradley admitted the firm had tried one recently with 600bhp and that the 2.0-litre turbocharged engine was good for as much as 700bhp. The last Evo models sold in the UK were FQ400 models with 400bhp – enough to hit 60mph in 3.5 seconds – and when we suggested an FQ440 badge would fit nicely with the brand’s anniversary Bradley smiled and remained tight-lipped. ‘They’ll carry the FQ badging and will be the most powerful Evo ever,’ said Bradley. ‘They will be a great way to sign off the last internal combustion-engined Evos before they’re replaced in the future by hybrid versions.’ Mitsubishi dealers already have more orders for the special edition Evo Xs than Mitsubishi has cars for. There is currently an internal discussion going on as to how the cars will be allocated to buyers – it could even come down to a ballot. Bradley added: ‘These will be the last of this chapter of Evos. There is a possibility that there will be one in the future based on a plug-in hybrid powertrain and that will be amazing – but this is the last of the internal combustion engine versions and we want to go out with a bang.’ With the rumoured power outputs and our knowledge of Bradley’s love affair with the Evo, we don’t doubt this will be anything other than true. CarDealerMag.co.uk | 59

FEATURE. GENEVA motor show 2014

16-page special

Deposits already taken for Mustang

Not every dealer will sell Mustang

FORD: Dealers report customers walking in and handing over deposits, despite not knowing price or specifications

istorically, American muscle Ovenden said. ‘I’m very confident cars have never fared with this one. Mustang is completely particularly well in the UK. different to pretty much every single Just try to remember the last car in the market. I don’t know how time you saw a Chevrolet Corvette or many thousands of songs the Mustang Dodge Viper parked up at your has featured in or how many films local Tesco. Mustang has starred in, but it has been This fact hasn’t stopped Mark a phenomenon for 50 years.’ Ovenden, chairman and managing Despite the buzz surrounding the Mark Ovenden director of Ford of Britain, from launch of Mustang from a dealer brimming with confidence over the Blue level, not all showrooms will receive the iconic Oval’s latest American import. American muscle car. Ford recently revealed a ‘We’ve had a great buzz about Mustang,’ new dealership categorisation system during a revealed Ovenden during an exclusive chat at this European event in Barcelona. year’s Geneva Motor Show. ‘We announced at the One Ford event in ‘We’ve had lots of dealers requesting Mustang Barcelona earlier this year that there will for their showrooms and we’ve even had reports now be three levels of dealers in the UK – retail of customers walking in to their local Ford dealer dealer, main dealer and Ford Store,’ and saying ‘Here’s my deposit’. This is before said Ovenden. we’ve even revealed specs, let alone prices.’ ‘Because of the relatively limited Ovenden makes it clear that Mustang was volume of Mustang, it doesn’t make never launched for market-share purposes and sense to put it through every Ford he believes that sales will be slow compared with dealer, so it will go through the other products in the Ford line-up, but he said it Ford Stores primarily. is ‘the ultimate statement of One Ford’. ‘But if you’ve got a good ‘The word “iconic” gets used loosely on far too relationship with your local many vehicles. Some are termed iconic about six dealer they will be able to access a months after launch, which is completely wrong,’ Mustang for you,’ he added. ��| CarDealerMag.co.uk

‘If we keep doing it right, we’ll continue to grow’ The Blue Oval continued to top UK sales charts last year with its humble Fiesta notching up an impressive 63,040 sales in the first half of 2013. Its bigger brother, the Focus, made it a gold and silver podium finish by pipping the Vauxhall Corsa to second position with 47,675 sales. ‘We are very proud that we have been market leaders in terms of cars for 37 years and 48 years with regards to commercial vehicles,’ revealed Mark Ovenden, chairman and managing director, Ford of Britain. ‘But we don’t regard leadership as a strategy, we regard it as an output. We have the right product, we have the right dealers and we have the right programmes. If we keep making all the right inputs, sales will continue to grow,’ he added. Vauxhall has consistently challenged Ford in the sales chart – with the Corsa hot on the heels of the Focus at the end of 2013 – but Ovenden doesn’t seem too worried by the threat from Luton. ‘If somebody wants to get market leadership by taking 43 per cent of the rental market in February and then still not get it, then that’s their call,’ said Ovenden. ‘It must be frustrating for them but it’s not something that worries me,’ he added. Ford plans to increase its numbers by focusing on the commercial vehicle sector, but Ovenden also believes that SUVs and 4x4s are still the key to strong retail sales in the UK. ‘Look at the 4x4 segment in the UK. We only get a 3.5 per cent share in that – Ford doesn’t do 3.5 per cent,’ revealed Ovenden. ‘We’re currently trying to cover a segment that spans Duster to Range Rover with just a Kuga, which is in short supply. We have improving supply of Kuga and EcoSport and Edge coming through. ‘The moment you think you can’t grow you start shrinking.’

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Jaguar Land Rover eyes up hybrid technologies JLR: Director reveals firm will not neglect electric technology but is focusing on hybrids... for now

by LEON POULTNEY @Blokesincars

lthough ‘alternative fuel’ and ‘hybrid powertrains’ appear to be the buzzwords for many manufacturers at the moment, very few are keen to talk about exact plans and timelines. This is not the case with Jaguar Land Rover. ‘Hybrid drive will become the dominant drive train in the upper vehicle classes in the coming years,’ revealed Dr Wolfgang Ziebart, director group engineering for Jaguar Land Rover during a candid interview with Car Dealer Magazine. ‘Fuel-saving and alternative-drive vehicles are especially important for manufacturers that produce premium cars because they can afford more sophisticated solutions. We are seeing an increase in wealthy families purchasing an electric car to complement their everyday combustion-engined vehicle Dr Wolfgang Ziebart and this is an area JLR will be observing further.’ Keen to point out the success of the Range Rover Hybrid (JLR can’t produce enough to keep up with orders at the moment), Dr Ziebart explained that his team of engineers were closely watching the likes of Tesla to monitor the progress of battery technology. ‘The fact is, the electric car will not replace the combustion engine in the next few years – battery technology just isn’t improving fast enough,’ said Ziebart. ‘We will not completely neglect the all-electric

Zero road fatalities are predicted for the future Jaguar Land Rover predicts a time in the not-so-distant future where fatalities on the road will be non-existent. A brace of new safety technology – much of which will feature on a host of new models set to be unveiled in six-month intervals – will massively reduce the number of accidents on UK roads. ‘Advanced driver-assistance systems have been about reducing the number of fatalities on the road, but we want to see an era where new technology allows us to have no fatalities at all anymore,’ said Dr Wolfgang Ziebart, director group engineering for Jaguar Land Rover. ‘The buzzword at the moment is driverless cars and we have seen that 99 per cent of accidents are caused by user errors but we would never want to actually remove the driver,’ he added. segment and we are watching Tesla closely to see if his segment gets stronger, but hybrid vehicles will be a focus for us,’ he added. Jaguar has further committed to improving emissions and reducing fuel consumption by revealing a brand-new 2.0-litre, four-cylinder engine, dubbed Ingenium, which will be built in Wolverhampton and first seen on the upcoming BMW 3 Series, rivalling the Jaguar XE model.

Instead, Jaguar will reveal advanced sensor systems and car-to-car technology that supports the driver rather than taking over completely. The Jaguar brand has always been about driver involvement and it has vowed to continue making driver-focused cars. ‘As long as there are no hazardous situations and you still manage the car, future systems will not interfere with driving fun,’ revealed Dr Ziebart. Customers and JLR fans should brace themselves for an avalanche of new Jaguar Land Rover products as the British marque plans to unveil a completely new model every six months for the foreseeable future. ‘The pace of product introduction will significantly increase in the current years and the basic technologies are developing at a very high pace,’ added Dr Ziebart. Jaguar XE

CarDealerMag.co.uk | 61

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FEATURE.

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GENEVA motor show 2014

16-page special

Nissan hot-hatch Nismo already on the cards NISSAN: Japanese giant plans a spicy version of its new C segment car... even before it has named it

issan is plotting a hot hatch coup to rival the established masses with a Nismo version of its forthcoming Ford Focus beater – and that’s before it has even named the new car! Due later this year, the C-segment model will allow the blossoming Japanese manufacturer to compete in the second largest segment in the UK. Nissan MD Jim Wright explained that there were still many ‘traditional’ Nissan car buyers and a large C segment-focused corporate market where a hatch of this size would perform well. And Wright is already pinning his hopes on the new car range being bolstered by a halo VW Golf GTI rival wearing the firm’s recently rolled-out Nismo badging. ‘Customers get Nismo with little explanation and the media get it too,’ said Wright. ‘It has history that’s a little off-beat. A Jim Wright sporty C hatch would be nice and I’ve already seen some things that if they happen will be really very good.’ Wright admitted that the market for sporty hatchbacks died off a little during the recession. ‘It was an area of the market that went quiet for a while,’ said Wright. ‘But it’s coming back.’ He added that the Nismo brand had gone down well with customers. The first car in Nissan’s range to wear the badge was the Juke Nismo and that car has already exceeded the brand’s sales goals. Wright himself drives one as his company car and believes the Nismo badge has ‘something special’. At the Geneva Motor Show, Nissan unveiled an even hotter Juke Nismo, dubbed the RS. It gets a power hike of 15bhp to 215bhp, which is more than a Fiesta ST, Peugeot 208 GTI and Renaultsport Clio. It also gets a meatier sixspeed manual gearbox, bigger brakes and stiffer springs. Alongside the Nismo RS, Nissan

by JAMES BAGGOTT @CarDealerEd also unveiled a refreshed Juke at the show with light mid-life changes to freshen the car’s looks. ‘This mid-life change had to be relevant and when you see it you can tell the car looks a little bit more mature and complete,’ explained Wright. The Nissan GB boss believes there’s still a good opportunity for dealers with Juke. When you combine the sales volumes of Micra, Juke and Note, Nissan commands a healthy 10 per cent share of the B segment – and it’s a share Wright wants to grow. ‘We hoped the Juke would be a success after Qashqai and it far exceeded our expectations,’ he said. ‘Now the car has a fresh look, new engines and more personalisation options.’ Wright revealed the new Qashqai – which went on sale in the first quarter of 2014 – had gone down extremely well with buyers, so much so that Nissan has an order bank stretching to June. ‘We had high expectations for Qashqai,’ said Wright. ‘We knew it would be good, but not this good. When dealers were shown the car for the first time their reaction was fantastic and we’re now seeing fantastic showroom traffic.’

New X-Trail nearly got a name change The new Nissan X-Trail is so different to the car it replaces that there was an internal discussion on whether to give it a completely new name or not. Nissan GB boss Jim Wright revealed that there was a lot of pontificating about a potential name change – but eventually the original, well-known moniker stuck. The new seven-seater arrives in the summer and debuts a fresh new look and technology. Wright believes it’s the perfect model to replace the now-defunct Qashqai +2 and will help attract new buyers to the marque. ‘We’ve sold a relatively consistent number of X-Trails for 10 years, which gives us a positive customer base to talk to,’ added Wright.

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FEATURE. GENEVA motor show 2014

16-page special

More Cupras? Never say never SEAT: UK boss says he would have ‘no problem’ in seeing more Cupra-badged models in the range

panish marque Seat hasn’t ruled out by JAMES batchelor extending its racy Cupra brand across @JRRBatchelor more of its models. At present, the Cupra name appears on the 178bhp for us, but the initial signs are good,’ he Ibiza supermini and the new Leon Cupra SC, said. ‘Cupra has traditionally had a great cult which can be ordered in two flavours – 263bhp following, especially with enthusiasts and or 276bhp. the Cupra forums online. The new car very But Seat UK managing director Neil much continues this and becomes a halo for Williamson hasn’t ruled out more models in the the brand. As it uses the very best Volkswagen Seat range benefiting from a Cupra makeover. technology, it should do well for us. ‘Never say never,’ he told Car Dealer ‘We are planning it will be four per cent of Magazine. ‘There’s no reason why we wouldn’t our mix – that’s the same as GTI see more Cupra-badged models in for Volkswagen or ST for Ford. I’m the range. In terms of our current keen for Leon Cupra not to be just product plan, we could use it in many a halo car, as these types of cars can of our products.’ be just a halo in a showroom or in a Williamson said he would have dealership but don’t actually sell. ‘no problem’ in the name appearing We want it to sell, so we’ve on more models ‘as long as the cars positioned it aggressively.’ deserved it in terms of technology’ Williamson refuted the idea that and ‘whether it’s good enough’. the new Leon Cupra waters down ‘If we add a Cupra badge to a Neil Williamson the traditionally mad image of the model, it needs to be a genuinely Cupra name, instead saying: ‘I still want to keep strong contender,’ he said. the cult thing going, but I also want this car to The new Leon Cupra is shaping up to be appeal to a new, more mainstream customer a top seller for dealers, too, with a strong who is interested in technology such as GTI and customer order bank so far, Williamson said. ST customers.’ ‘Leon Cupra will always be small numbers

Leon Cupra 280 is currently the most powerful car Seat builds

��| CarDealerMag.co.uk

Mii will never be a hot hatch – it’s a fashion icon

Xx xx

WHILE Seat hasn’t ruled out plans to create more Cupra-badged models, the company’s UK managing director has dismissed the idea of producing a Mii Cupra. At the Geneva Motor Show, Seat revealed the Mii by Mango – a special edition version of the city car created in collaboration with the Spanish fashion house. And it’s this direction Seat aims to follow with its Mii and not the hot hatch road with Cupra. ‘We are trying to do something different with Mii,’ Williamson explained. ‘We are looking to position it differently from the Skoda Citigo and Volkswagen Up. Mii is accessible, stylish and Spanish. This is where this car needs to go – more lifestyle, more female. It is not a hot hatchback.’ Williamson admitted the Mii hadn’t been the roaring success it should have been in the UK since it arrived in 2011, but Seat aims to change this. ‘We probably haven’t got the most out of Mii up until now,’ he said. ‘This year Mii is on song – and is very much becoming the third tool for dealers in the retail sector. It will join Ibiza and Leon in becoming great, core retail cars for our dealers. We’ll hopefully be adding to this over the years and you will start to see a much stronger business.’ Mii by Mango

Electric Seats on the way? They will be… in time AS parent firm Volkswagen is bringing more electric cars to market, Seat has said it will get the clever electric technology, but only when the time is right and the brand is profitable. ‘We will get Volkswagen’s electric technology but I don’t know when,’ said Neil Williamson, Seat UK MD. ‘We do have a test fleet of electric and hybrid Seats in Barcelona, but at the moment it is more of a matter of when the business case allows it. The main aim for the brand at the moment is to become profitable and after this all of these technologies will become available. This is an example of how great it is being involved with the Volkswagen Group – we have access to new technology when we need it.’

in association with

‘Our dealers have to work like John Lewis’

Hybrid Golf hot hatch charges in

VW: Golf GTE could spawn more spicy plug-in hybrid VWs in the future – but only if customers want them

olkswagen has hinted that depending by JAMES batchelor on customer interest in its new @JRRBatchelor Golf GTE, more models may appear carrying the badge and the technology. 7.5 seconds, top 138mph, return 188mpg and At the Geneva Motor Show, the German emit 35g/km of CO2. manufacturer revealed a plethora of new models However, despite this impressive new plug-in – from a refreshed Polo supermini right up to a hybrid technology, the German giant is also Golf-based SUV concept called T-Roc. still ploughing a lot of money and research into But arguably the biggest news was the Golf GTE electric car development. – a car that, in its loosest sense, is a plug-in hybrid The company has already launched an version of the GTI. electric Up city car and an all-electric Golf will And now Volkswagen UK managing director appear later this year. Robert Hazelwood has said there could be more Hazelwood says he will ramp up dealer plug-in hybrid GTE models in the future – but infrastructure if customers take to the new cars. only if customers demand them. ‘The challenge with early electric cars is that ‘I think we will see more but, obviously, it they all looked a little odd,’ he said. ‘E-Golf and depends on popularity,’ he said. ‘GTE gives E-Up look like standard cars so our customers everything for a customer who’s looking for a can drive an electric car and nobody will think, performance car but is also environmentally “Oh, there’s that weirdo driving a funny electric inclined – it might hit that crucial spot.’ car”. The success of the electric car is whether it’s Hazelwood agreed it will fill a gap Volkswagen normal. We are making sure the cars has not previously occupied: a place for aren’t just normal to look at but, more an environmentally-friendly and petrolimportantly, normal and enjoyable to powered warm hatchback – something drive. We started off with 24 dealers the diesel Golf GTD can obviously selling the E-Up and we’ve got around never fill. 30 groups represented in that. The GTE looks set to arrive in the UK ‘Longer term, every VW dealer will towards the end of this year. It uses a have a charging point. This year we will 148bhp1.4-litre direct-injection petrol do around 700 electric cars, and 20-odd engine and a 100bhp electric motor. dealers is enough for the time being.’ Robert Hazelwood VW says it’ll hit 60mph in just under

VOLKSWAGEN is using major UK retailer John Lewis as a benchmark for making its dealer network adapt to the needs of modern-day consumers. ‘We’re talking to our retailers about how to adapt to the modern customer,’ VW UK MD Robert Hazelwood said. ‘The modern customer does all of their research online in terms of price and car configuration and then goes to destination sites and is wanting the brand experience. ‘We’ve got 2,000 iPads in the network and every salesperson has one, and we are referencing consumers’ experience with companies like John Lewis and its Click and Collect service – the idea of picking up a product bought online at the customer’s convenience. We’ve talked about “bricks and clicks” in the industry for two decades, but I think now the time has really come when customers are looking for this. ‘The future customer to a Volkswagen showroom will pretty much have decided exactly what car they want and how they want it, and then want the demo and the whole brand experience. This depends on having good staff and we’ve spoken to the network on making sure they have sales and aftersales staff who understand the needs of the customer. Ironically, it’s the same needs our dealers want from any other online retail experience.’ Meanwhile, in February Sinclair Volkswagen Swansea opened the largest VW showroom in the UK, with space for 17 cars. However, Hazelwood said there would be larger dealerships on the way. ‘At the moment, 42 per cent of our retailers have a 10-car minimum showroom and our new showroom look and environment. By the end of this year, 90 per cent will have new showrooms, and we now have lots of dealerships that have space for 17 cars, and we have three or four that can accommodate 32 cars,’ he said.

CarDealerMag.co.uk | 65

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FEATURE.

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GENEVA motor show 2014

16-page special

Hyundai Genesis heading this way

Entering the bronze age with new dealership look

HYUNDAI: But only 20 right-hand-drive units of premium saloon will be ‘showcased’ here, says UK president

fter years of speculation, Hyundai is bringing its premium Genesis saloon to the UK – but you’ll be lucky to see one on a road near you. The reason? Hyundai plans to sell 20 units at most of its new BMW 5 Series-rivalling saloon in the UK – and Hyundai is not letting its dealer network offer it. ‘We are showcasing Genesis in the UK – and showcasing is a really important phrase,’ Hyundai Motor UK president Tony Whitehorn exclusively told Car Dealer Magazine. ‘What I mean by that is, “Is it coming to the UK? Yes.” “Is it coming in right-hand drive? Yes.” But it’s not fundamentally oriented for the European market,’ he explained. It may be going up against a BMW 5 Series but the Genesis is more akin to an Audi A8 in size. It’ll likely come in just one specification and there’ll be no diesel engine on offer, either – just a 308bhp 3.8-litre V6 petrol engine. ‘The Genesis is designed fundamentally for a more Asian and Korean market. There’ll be very limited appeal in the UK and across Europe, so that’s why we’re saying we’re showcasing this. ‘It’s got the type of technology you wouldn’t expect a Hyundai to have. Genesis aims to show off some of the technology you’ll start to see in some of our other vehicles lower down the range. We are talking 10s of this type.’ Because of the low sales expectation, Hyundai will not be pushing the car through its dealer

by JAMES batchelor @JRRBatchelor

network. Whitehorn said: ‘The car essentially will be available from August time, so we’ve said to the network: “This year we’re handling it.”’ In some markets, Genesis is a brand in its own right, much like Lexus and Infiniti. But Whitehorn hinted that in the UK the luxury saloon will be known as a Hyundai Genesis in order to add prestige to the whole range. ‘It would have more credibility if it’s Hyundai Genesis, but that’s still in discussion at the moment. We need to cascade the Genesis effect down the range.’ Despite its small numbers, Genesis is part of plans to take Hyundai UK to the next level. ‘We’re trying to expand the brand,’ Whitehorn explained. ‘To go from 30,000 units to 80,000, actually you can do that with product. To go from 80,000 to 100,000 you have to have more than product. You have to have excitement, hence WRC, you have to be able to expand the brand, hence going into Genesis, you have to have popularity, things like the World Cup. We’re trying to say it’s not just product, it’s actually brand as well.’

HYUNDAI wants to stop customers in their tracks when they’re driving down ‘Motor Trade Alley’. It is ditching its familiar blue dealership identity to plump for bronze. For years, the Korean brand has worked hard to appear on the shopping lists of customers who are used to buying Fords, Vauxhalls and Volkswagen Group products. Now Hyundai wants to ‘step aside’ in its perception and for its dealers to become destinations for customers. ‘I think the new corporate identity is modern premium,’ Hyundai Motor UK’s president, Tony Whitehorn, told Car Dealer. ‘It’s unexpected in terms of what the brand has to offer, and it Tony Whitehorn almost surprises the customer. They will not be expecting to see this sort of corporate identity, not expecting to see a Genesis from us.’ Between now and 2018, all dealerships will change to the new bronze corporate look. Whitehorn expects new-build dealerships to make customers go ‘wow’ but Hyundai will try to ‘preserve some grandfather rights for some of the people who have put investments in’. ‘Once you’ve had an identity that’s been in for five years you should be looking to renew it.’ He added: ‘We’re trying to say we’re not a mainstream player, we’re in the mainstream but we want to set ourselves apart and we want to interrupt people and say, actually we’re a different proposition. ‘That’s why we’re doing it – it’s actually stepping aside. Not stepping up but stepping aside – stepping aside in the right way.’ CarDealerMag.co.uk | 67

FEATURE. GENEVA motor show 2014

16-page special

‘There’s a market for Skoda coupe’ SKODA: Slinky four-door Vision C would sit nicely between sensible Octavia and posh Superb, says UK director

koda didn’t so much have jaws by LEON POULTNEY dropping with its Vision C concept @Blokesincars vehicle at the Geneva Motor Show this year, more it had interests piqued ‘But even before then, we will see styling cues by the surprisingly production-ready nature of from this concept filter down to future editions the luminous green five-door liftback model. of the Superb. There’s definitely a language that ‘It is based on the MQB platform, which is the design team at Skoda has designed and already working and functioning, so naturally developed,’ he added. the Vision C concept is going to look like a But what about VRS versions? After all, 30 road-going version,’ said Alasdair Stewart, brand per cent of new Octavia sales in this director at Skoda UK. country have been VRS badged and it ‘But if you look closely, you will continues to be an extremely popular see elements that really aren’t nameplate with UK customers. production-ready, like much of the Rumour has it the Skoda Vision interior and the door handles, but I C will provide the basis for a new think there is real intent there, intent turbocharged 2.0-litre engine that to get feedback and to see if it’s will appear in performance something we could make.’ flagship models. Skoda has long been linked with ‘We’ve just put the Octavia VRS a model that could sit between the Alasdair Stewart out there and the order bank is very Octavia and Superb in the Czech strong, but I don’t know whether that will run marque’s current line-up, and the Vision C into any other products yet. It is likely we will provides the strongest indication yet of what keep the badge for our saloons and hatches,’ this might look like. said Stewart. ‘I think there would be a market for this in the UK,’ revealed Stewart.

Skoda’s swoopy four-door Vision C concept

��| CarDealerMag.co.uk

Koreans Kia and Hyundai are seen as ‘the enemy’ Skoda has revealed that it considers Hyundai and Kia its most direct rivals at the moment, with UK brand director Alasdair Stewart saying, ‘They are the enemy in many ways.’ When quizzed on the Korean manufacturers’ current position in the market, Stewart revealed that he’d like to see Skoda ‘push past’ them in the coming years and he hoped to do this with an enticing array of SUV products. ‘Hyundai and Kia have extended their product ranges well, they have good selections of SUVs and that’s the market we should push into,’ he explained. Stewart also believes that simply sticking to petrol and diesel drivetrains won’t help future sales and that more investment needs to be made in alternative fuel sources, including hybrid drivetrains. ‘So far, we haven’t had a lot of demand for pure electric vehicles from customers – the technology is very expensive and the UK doesn’t have the infrastructure – but plug-in hybrids will be the best bet. In time, that will come to Skoda, but I do not know which models just yet,’ he added. Skoda has also announced further investment in current models to ensure it remains abreast with or ahead of the competition. There will be new Superb and Fabia models around the corner, while Yeti could possibly be offered in a seven-seater version before it is completely refreshed in the coming years. Another weapon in the automotive fight is marketing and PR and Stewart believes this will help push Skoda onwards and upwards. ‘We have to continue to do work on the brand – you have to spend a little bit ahead of market share in order to keep in the front of people’s minds. That means good adverts and hardhitting PR – two things you will be seeing a lot of from Skoda.’

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Peugeot pioneers the elegant affordable city car PEUGEOT: We need to sell the range today before we can produce 108 GTI

by LEON POULTNEY @Blokesincars

n the wake of the successes of the Skoda Citigo, Volkswagen Up! and Seat Mii, Toyota, Peugeot and Citroen have all teamed up to launch an assault on the city car market with their new Aygo, 108 and C1 models. But French manufacturer Peugeot has 108 comes in a revealed that its model will be one of the variety of two-tone first in its segment to offer a more premium, combinations upmarket product. ‘Stand the 108 next to the Citroen C1 and the Toyota Aygo and you can clearly see it is a a model that features elements of cars from the very different car,’ said Xavier Nicolas, product upper segments. I think the new 108 is more manager for the new 108. elegant, perhaps timeless in its design, compared ‘We had the opportunity to design the car we to the Aygo, which is more fashionable and for a wanted to design, so you can see the Peugeot younger audience,’ Nicolas revealed. language throughout. Of course, it is the same The new 108 will be offered in three- and fiveplatform as the Citroen and Toyota, door variants, with both but we had a lot of freedom to manual and automatic design this car, which is a big change transmissions. Customers from the 107, where we were a little will also be able to restricted,’ he added. select a canvas-roofed There’s no denying the new 108 convertible model. is a smart offering that enables When quizzed customers to add plenty of premium on the likelihood personalisation touches. of ‘soft roader’ or ‘We wanted to offer the customer Xavier Nicolas performance GTI

versions, Nicolas felt it was too early to tell. ‘There is a large range and it is already difficult to manage at a dealer level, so first we need to be able to sell all the range today and then we can look to expand it with future variants.’

‘Dealers will love the 108’s personalisation possibilities’ Part of the fun of purchasing a modern city car is putting a personal stamp on the potential pride and joy. The Vauxhall Adam and Mini have already proved that customers are prepared to spend good money on eye-catching colour schemes and interior gadgets. ‘There will definitely be a big push for the 108 at most dealers, in fact, there will be at least one personalised model in each dealer to show customers what they can achieve,’ Xavier Nicolas,

product manager for the new 108, explained. ‘We will also introduce large, touch-screen computer configurators that allow the customer to choose optional extras and see how they look virtually on a large screen. ‘This will allow dealers to engage with customers, but thanks to clearly-labelled trim packages it will also be very easy for the dealer to order and manage customer expectations,’ he added.

The UK will be the first market to receive the new 108 – a point that Nicolas believes proves the demand for a stylish, affordable city car in this country. ‘We had huge demand from 107 customers wanting something new that offered the same sort of interior roominess but with an improved aesthetic standard,’ Nicolas said. ‘I think we have achieved this. I have no doubt this car will be popular with buyers.’ CarDealerMag.co.uk | 69

FEATURE. GENEVA motor show 2014

16-page special

We’ve been too busy to create EVs up until now KIA: European director believes that the company has not been left behind in the EV race – rather, it is leading it

hile its rival manufacturers have been in the electric car market for years, Kia is stressing that now is the right time to launch its own electric car. Kia’s all-electric Soul EV will debut this year, and even though rival car-makers have been gaining an advantage over the past five years, the Korean company believes its EV is better than the rest. ‘We haven’t launched our EV up until now because we’ve been doing so many other things over the years,’ Michael Cole, Kia Motors Europe chief operating officer, exclusively told Car Dealer. He said that the electric car was the next stage in Kia’s powertrain development, but it doesn’t just follow the crowd, rather it takes the game on further. ‘Creating the Soul EV is not a case of “Yes, we’ve got an electric car like everyone else”, but rather “We’ve

Infiniti’s future is hybrid The recently-released Infiniti Q50 Hybrid is one of the fastest and most powerful hybrid saloons on the market right now. And Infiniti will continue to develop new alternative-fuel technology to keep ahead of the competition. ‘Hybrid technology is one of our core competencies, so we will continue to exploit this technology and export it around the world. ‘Our sister company Nissan knows a thing or two about EVs, so I’m sure we can borrow something from that, too,’ revealed Infiniti worldwide president Johan de Nysschen. ‘The future for Infiniti’s alternative powertrains will include the next generation of hybrids, new plug-in technology and ultimately fuel-cell technology.’

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got an electric car that’s better than everybody else’s”. Our car has new improvements in electric car solutions – we can confidently say it has a range of 200 kilometres.’ Cole was also candid on how popular the Soul EV would be. ‘In terms of the opportunity, it’s small,’ he said. ‘Perhaps in the US there will be interest but in Europe it’s probably 1,000 units. This is a demonstration of us being able to offer products with petrol, diesel and electric.’

Kia’s in the right place to consider a sports car KIA dealers hoping to add a sports car to their showrooms can take some comfort in learning that the chances of the Korean firm building one are very high. ‘I wish I could say when that time will be – but I can’t!’ Kia Motors Europe chief operating officer Michael Cole told Car Dealer. ‘I am pretty sure something will come along though,’ he said. ‘Quite rightly, our focus as always has been getting the core products right. So, if you go back to 2007 and 2008, there may have been people saying “Wouldn’t it be great to have a Pro-Cee’d convertible?”. Yes it would, but wouldn’t it be better to get Rio right first? We’ve focused on the volume and commercial cars.’ There is some good news, however. ‘We are now at the point where we have replaced all of the cars in our line-up. We’ve got a couple of things to consider: Is now the right moment to have a halo car? And secondly, how do we accommodate that in our present global production capacity? These are the discussions that are happening now.’

It’ll take four more years for us to break even in Europe INFINITI: President believes UK and western Europe new car markets aren’t profitable for Nissan’s luxury division

nfiniti worldwide president Johan de Nysschen has revealed that the luxury arm of Nissan continues to struggle in western Europe. ‘Not every Infiniti market is profitable right now, but it is my job to see light at the end of the tunnel,’ revealed de Nysschen. ‘The UK market isn’t profitable right now for us. Western Europe is not profitable,’ he added. But he stressed that he wasn’t ready to give up on these ‘relatively new’ markets just yet, and predicted that Infiniti would break even in western European markets by 2018. ‘It is very liberating when we don’t have global domination as one of our objectives,’ de Nysschen added. ‘Infiniti has been a North Americancentric brand – it was conceived for that purpose. We have done very well in that market, we enjoy roughly 10 per cent of

the premium market in North America, but it is also the thing that is holding us back from going global. Consider this: the entry-level engine is a 330bhp V6 – come and tell that to the Europeans. ‘Our aim for western Europe right now is to secure a presence for the brand and build up Infiniti as a respected car-maker that isn’t trying to be all things to all people,’ revealed de Nysschen. ‘We want a boutique character but we want to gradually expand our footprint.’ The recent Q50 model was dubbed ‘the perfect car for Europe’ by de Nysschen at last year’s Geneva Motor Show. That was thanks to its wallet-friendly engines as well as its sleek designs, but some of the British motoring press had less than positive things to say about it. ‘If you’re a challenger brand, you have to accept that you have to disturb the equilibrium from time to time.’

in association with

Signs are looking good for â&#x20AC;&#x2DC;differentâ&#x20AC;&#x2122; Mazda 2 MAZDA: MD is confident of sales following runaway success of new-look 6 and 3

he forthcoming Mazda 2 â&#x20AC;&#x201C; showcased in concept form at the Geneva Motor Show â&#x20AC;&#x201C; will bring with it a critical mass of sales, says the firmâ&#x20AC;&#x2122;s UK boss. Jeremy Thomson, Mazda UK managing director, says if the production car looks anywhere near as good as the Hazumi concept he believes itâ&#x20AC;&#x2122;ll be a sales success. The current Mazda 2 still accounts for a quarter of the brandâ&#x20AC;&#x2122;s annual sales, notching up between 6,000 and 8,000 units a year, but a new model is long overdue. Thomson said: â&#x20AC;&#x2DC;When the Kodo design language was shown on the Mazda 6 there were concerns whether it would transfer well to a smaller B segment car, but I believe our concept car shows it can. â&#x20AC;&#x2DC;If we can deliver a production car that looks

by JAMES BAGGOTT @CarDealerEd like that then the Mazda 2 will be a great success.â&#x20AC;&#x2122; The 2 is due late 2014/early 2015 and follows the success of the new-look Mazda 6 and Mazda 3. The latter hit dealers in January and has been a runaway success for the manufacturer. â&#x20AC;&#x2DC;The 3 was launched at the beginning of January and since then has been a huge success, sometimes achieving 150 per cent of our own internal objectives,â&#x20AC;&#x2122; explained Thomson. â&#x20AC;&#x2DC;Dealerships have been overwhelmed by interest in that car and weâ&#x20AC;&#x2122;re getting a very high level of conquest from premium brands, probably double that seen on the previous model.â&#x20AC;&#x2122;

Hazumi concept The Mazda chief is confident the 2 can continue that resurgence when it arrives in showrooms, too. He said: â&#x20AC;&#x2DC;Itâ&#x20AC;&#x2122;s a very significant car for us. As we move forward and look towards the strength of the concept car weâ&#x20AC;&#x2122;re displaying here I have great confidence that we can do significant numbers in the coming years, especially if we see what we see on the stand made a production reality. â&#x20AC;&#x2DC;Some people have told me they think this is the best-looking B segment car at the show and I think that bodes well for the future.â&#x20AC;&#x2122; But can it take the fight to the sectorâ&#x20AC;&#x2122;s marketleading Fiesta? â&#x20AC;&#x2DC;Well, Mazda 2 has always been a choice for those looking to be a little different to the masses. It offers something different â&#x20AC;&#x201C; I have every confidence that will attract buyers.â&#x20AC;&#x2122; [CD]

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CarDealerMag.co.uk | 71

focus on.

Motors.co.uk

Coming home to roost motors.co.uk

W: motors.co.uk T: 0845 265 6000

t Car Dealer, we often report on companies in the motor trade that start the year with a bang. But in the case of Motors.co.uk, it’s more akin to a nuclear explosion. Why? Well, Motors.co.uk has invested millions of pounds in making itself a household name – and it’s doing it with a comprehensive television, online and multi-media advertising campaign, a clever and responsive website and brand-new products for dealers. Motors.co.uk’s fresh new logo and corporate look burst on to the scene towards the end of 2013, and since January this year the company has occupied prime television spots showcasing its new website and nifty search functionality. ‘The response has been absolutely incredible,’ says Motors.co.uk’s managing director, Andy Coulthurst. ‘The results have been very encouraging – in fact they have exceeded our expectations. ‘February saw visits to Motors.co.uk up 121 per cent compared with the same month last year, and detailed page views up 187 per cent. Time on site is improving, the number of leads per visit is growing and the bounce rate is also reducing considerably. All of this is good news for our dealers – more leads and interest. We now engage with consumers earlier in the buying cycle and are seeing them move from the early stages of research to starting to engage with dealers.’ The new responsive website’s homepage carries no distracting advertising in order to channel through to dealers’ stock as efficiently and effectively as possible. And there’s Motors.co.uk’s clever Smart Search facility too, which is designed to help customers who don’t know exactly what car they want to buy – whether that’s bodystyle, lifestyle choices, or make and model. But the activity continues. March will see more dealers joining Motors.co.uk’s books, a new television advert will debut, and new products will launch. ‘On the sales front, February has seen us sign 200 new dealers, so we are continuing to grow the dealer base who are advertising their stock on Motors.co.uk,’ explains Coulthurst. ‘March is a really big month for us – it’s going to see our biggest marketing spend. We did this purposefully as it’s a month where dealers need to turn their part ��| CarDealerMag.co.uk

Campaign

Motors.co.uk wants to help customers buy a car, not run around like a headless chicken FOLLOWING the success of its initial ‘Carousel’ commercial, which saw shopper ‘Amy’ saved from a spooky car merry-goround by the brand’s unique ‘Smart Search’ lifestyle search product, Motors.co.uk has revealed that a giant, two-metre-tall headless chicken will now be the star of the screen, as bemused family man ‘Mark’ tries to overcome the ‘Carfuffle’ of choosing his next car. The ‘Chicken’ creative will run throughout March across popular channels including ITV1, C4, Sky One, Dave, ITV2, Sky Atlantic, E4, Sky News and live Premier League football on BT Sports. In April, ‘Carousel’ will return to screens, with both ‘Chicken’ and ‘Carousel’ running across the whole marketplace. The high-profile TV activity continues to be supported by a radio, outdoor, online media and PR campaign. The two-metre-tall animatronic headless chicken, which stars in the new ads, was custom-built for Motors.co.uk on set in South Africa using a mix of real and rubber feathers plus hydraulics to create life-like chicken movements.

exchange stock. With TV alone, Motors.co.uk will be viewed 156 million times in the month – this is backed up by a radio campaign with 1,500 local radio spots across the UK. ‘We have some big Premiership spots too. We’re in the advertisement breaks of Chelsea and several Manchester United and Arsenal games. ‘Aside from the TV campaign and the marketing spend in March, it’s also a big product month for Motors.co.uk.’ Three new services will debut – and the first will be ‘What’s Mine Worth?’ It’s a new and innovative consumer trade-in product that is designed to better connect consumers to their local dealer. The new search function provides car buyers with an

‘‘

The results have been very encouraging – in fact they have exceeded our expectations

independent valuation and promotes local dealers as a viable option to dispose of their old cars when buying a replacement. ‘What’s Mine Worth?’ provides a comprehensive service for consumers, aggregating all the selling options a consumer who is looking to change their car would need. Users simply fill out a short form with their postcode, registration number and mileage and they’re instantly presented with a number of different options, including a ‘Sell Now’ price from Motors. co.uk’s partner WeWantAnyCar.com, part-ex offers from local dealers or the chance to sell privately on Motors.co.uk. Ultimately, though, it’s been designed to deliver quality leads to used car dealers. Meanwhile, March will also see ‘What’s Hot?’

launching a tool that will allow car shoppers to quickly navigate by bodystyle to the best-selling models by Motors.co.uk dealers, informing their search and providing quick links to similar cars for sale by the dealers, explained Coulthurst. ‘We’ll also be making live our Night Owl service,’ he added. ‘It’s an animated out-of-hours prompt – so if a customer is interested in a car outside of a dealer’s opening hours, the dealer won’t lose that lead.’ Motors.co.uk’s new television campaign burst on to television screens across the UK in January with a simple but very effective advert. Along with the strapline ‘Carfuffle’, the advert highlighted the traditional problems of car searching and explained

how Motors.co.uk’s new Smart Search can help. From March, the campaign will be joined by a new advert using the theme of ‘Carfuffle’ being represented by a man riding a headless chicken. ‘Our activity certainly isn’t over,’ concluded Coulthurst. ‘We are only five weeks in and we are really enjoying seeing a spot go live on TV and immediately seeing the response on the website. Importantly, we are learning what’s right for our brand. This is about making dealers’ phones ring and increasing the visibility we’re giving to our dealers’ stock. It’s a great start and we’re really encouraged by it.’ [CD] By James Batchelor (@JRRBatchelor) CarDealerMag.co.uk | 73

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CarDealerMag.co.uk | 75

focus on.

CAP

Hold on tight – March is going to be good CAP

W: business.cap.co.uk T:0113 222 2007

arch is expected to be another strong newcar month with franchise dealers reporting healthy orders for cars bearing the new 14-plate. With manufacturers increasing retail targets almost across the board, this customer demand is seen as a necessity rather than a bonus. ‘Big Data’ Analysis We’ve seen that there have been more part-exchanges and fleet returns as cars have been kept for longer through previous recessionary years. Whilst there had been a reluctance to change, however, the guarded economic upturn and some excellent new car offerings by manufacturers means people are now keener to replace their vehicles. Black Book Live data shows that whilst volumes of cars have increased over the year, this has been largely met with increased demand from buyers. Interestingly, in January 2013, 62 per cent of cars were over 4.5 years old – this January it’s now 64 per cent, and when you take into account the overall increase in data too, this is significant. There has been a rise in the volume of sold data under 4.5 years old but not to such a degree. We can also see that, proportionately, mileages have also increased on older cars, backing up the view that owners have been holding on to their cars for longer. On the flip side, mileages decreased for younger cars, possibly pointing to more pre-registered

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vehicles appearing in the market. What our research shows is that despite the increase in volumes, prices remain strong, particularly on the older cars, and this illustrates a healthy demand for these ages of cars. Is this sustainable? We are not forecasting any untoward downturn in the short term. In summary, we are seeing more used car sales than a year ago, the number of older cars has increased as a proportion of the whole, but prices seem relatively unaffected by this – an interesting position that Black Book Live will continue to report on as we move through the year. Auction Activity The auctions continue to perform well. Conversion rates are well above 70 per cent, higher than they have been for the past few months and at this time last year. Stock levels are manageable and there are plenty of buyers purchasing for stock and sold orders in order to keep up with retail demand. Whilst condition has been an issue, a good proportion of the slight backlog of cars unsold first time around have now been moved on. Feedback from the auctions has backed up the analysis of the data, in that older cars are proving popular among buyers. Cars that are in good condition with a reasonable mileage continue to attract a number of potential suitors that inevitably

drive up the price. There continues to be some pressure on the used price of certain brands in auction, particularly in the premium sector, fed by increased volumes, and we don’t expect this to dissipate anytime soon. Used Cars – Trade Prices The month of February has, in general, proved to be a strong one for used prices. While January was best described as steady, February saw average prices increase slightly. Looking into this in more detail, however, SUV sales have never really got going, with sales volumes at levels comparable to non-winter months. Values have more or less held up rather than increasing and this is due to the balance of a lack of cold winter weather but also a relative shortage of desirable stock. More and more of these 4x4s are becoming a lifestyle choice rather than a seasonal purchase, which in the larger scheme of things has helped their cause. As expected, convertible prices continue to gently rise as some examples continue to represent good value for money. Proactive retailers can see the potential opportunities with expected improvements in the weather during the lead up to spring, and then Easter. Overall, younger used cars have struggled more than their older counterparts. This is driven by strong new car offers impacting on price and also

increases in volumes in the marketplace. When a new car from a perceived budget manufacturer is being advertised at a similar price to a used five- or six-yearold one from a more mainstream brand, it certainly encourages the consumer to switch their loyalty. When looking at used to new car sales ratio, used cars do continue to fall slightly. This is not driving down used prices, however, as both sales areas are on the increase – it is just the proportion that is down. The wholesale used car market is strong and it would appear to be a seller’s market, with several potential customers for the same good-quality vehicle, led ultimately by strong consumer demand. Used Cars – Retail February proved to be a continuation of an upbeat start to 2014. Recorded inquiry levels into franchise dealers are reportedly up by close to 20 per cent year-on-year at the time of writing, in no small part helped by internet-based inquiries. This has been particularly so with the recent floods, particularly in the south of the country, and proves that more than ever consumers do their research before leaving the comfort of their home or workplace. When they do contact the dealerships they have done their homework and are more likely to buy. What Next? Part-exchanges will have already hit the market in

early March as retail customers trade in for a 14plate. Likewise, fleets buying on their own risk and manufacturers that are active in the rental buyback arena would have registered cars in large numbers from the 1st of the month. How quickly will the replaced cars wash through into the used market and then how quickly will they put downward pressure on price? One can reasonably expect prices to stay strong through the first half of March, but after that values are likely to be under pressure. With the Black Book Live real-time valuation tool these probable movements will be reported throughout the month. There is certain feedback surrounding PCP cars now returning into the used market and evidence of franchise dealers contacting customers to get them into a new car before the end of their contracted period. This may affect longer-term values as volumes continue to increase over the summer months. Overall, however, it is important to remember that despite our volume of sold data increasing year-onyear, there are fewer cars in the car parc than there have been in the past. New car registrations over the past five years (2009-13) were 1.6 million fewer than in the five years prior (2004-08) and this, along with the upward trend in the economy, should maintain a healthy used car market as we move onward through the first half of the year. [CD] By Derren Martin

In detail Black Book Live OUT of all the makes, models and different derivatives currently available on the used car market, in a stable month an astonishing 60 per cent of them will see their values amended up or down. Essentially, that means if you’re not using an up-to-date valuation tool like Black Book Live you won’t have your finger on the pulse. Unlike traditional monthly data releases, Black Book Live keeps track of valuation movements throughout the month. It means dealers won’t be paying too much for cars or have stock on their forecourts that’s incorrectly priced. Black Book Live gives access to 19,000 mid-month value changes and expert independent commentary to explain why values have changed. Add to this CAP’s VRM look-ups that offer weekly updates and uniquely distinguish between manufacturer packs on models through Valuation Anywhere and the business ensures dealers are always valuing the right model and derivative. That’s not forgetting access to historical car values through CAP’s Windows product, the benefit of more than 150 years of (dealership) industry experience from our editors, clear values at three condition points and access to around 52,000 makes, models and derivatives at any one time. And for extra peace of mind, Black Book Live won Product Innovation of the Year at the Car Dealer Power Awards in 2013 – as voted for by dealers.

Who is Derren Martin?

Derren is the senior editor of Black Book. Any dealer interested in learning more or speaking with Derren please contact derren.martin@cap.co.uk or the CAP Customer Support team on 0113 222 2007. CarDealerMag.co.uk | 77

focus on.

Manheim

The journey towards genuine customer engagement Manheim

W: manheimretailservices.co.uk T: 01625 856 000

hile the automotive industry has been talking about ‘virtual dealerships’ and online selling for many years, Manheim Retail Services has been working away in the background developing the tools and products to help motor retailers better engage with their customers in the ‘connected’ era. ‘The important thing to remember,’ says sales and operations director Le Etta Pearce, ‘is that all the technology in the world can’t replace the human touch. ‘We hear a lot about connected vehicles that have more software than the computer that took the first astronauts to the moon, apps that can park our cars for us, online comparison tools to select our finance deals and virtual showroom tours which can demonstrate the vehicles on the forecourt to someone hundreds of miles away. However, without the training and support so sales people can maximise these opportunities to engage, there is every chance that the customer will move on to the next dealership.’ Manheim Retail Services has taken an integrated approach to its relationships with dealers. As part of the world’s largest vehicle remarketing organisation, Manheim is able to take lessons learned from around the world in order to apply best practice solutions for its customers in the UK. By working in partnership with dealers, rather than just selling to them, Manheim Retail Services is able to offer support, advice and guidance built on a foundation of international expertise and a long heritage in the motor trade. ‘The automotive industry is all about personal relationships,’ continues Pearce. ‘While there are people who are willing to buy a vehicle from a stranger online, the majority of UK car buyers want to engage with their dealer. After property, vehicles are often one of the single biggest purchases that a consumer will make in their lifetime and that means that trust plays a big part on the decision-making process i.e. do I trust the salesman to give me all the information? Do I trust that this is the right finance deal for me? Do I trust that I’ve been sold the right vehicle for my needs? ‘Of course, one of the biggest ways to build that trust is to genuinely engage with the customer. ��| CarDealerMag.co.uk

Operations director Le Etta Pearce And this is where DMS, EMS, social media, direct marketing, website optimisation and live chat come into the mix. There are many suppliers out there who can provide one or two elements of the customer journey; however, there are very few like Manheim Retail Services that are able to offer a joined-up, holistic approach to managing customer relationships throughout the entire lifecycle.’ In the modern era of car sales, consumers can begin the search for their next vehicle anywhere in the world and at any time of day or night. Sitting in the airport, they might see a Tweet from a dealer about a vehicle they have been thinking about buying. They follow the link on the Tweet to a review site where they can read independent reviews from people who own that model. From here, they go to the responsive, mobileoptimised dealer website where they view the vehicle details and high quality imagery. They may also take a virtual tour of the dealership through Google Business Photos. A question occurs to them and they contact the dealership through the online chat functionality, which pops up in a specially-designed app on the dealer’s mobile device so he can respond while walking around the showroom. An out of hours

service is also available, allowing the customer to engage in live chat even when the dealership is closed. Following the conversation, the consumer boards their flight, having booked in a test drive at the dealership for their return. Pearce continues: ‘While the scenario outlined above might seem a little contrived, we are certainly seeing more and more consumers wanting to engage with dealerships outside of the traditional 9-5 hours and away from the forecourt. Indeed, products like Manheim’s Live Advisor live chat facility, our responsive website platforms and our social media management consultancy services have all seen a phenomenal increase in usage by dealers and their customers in recent months. ‘The challenge with all of this technology is to ensure that the buying journey remains seamless and that the customer is kept at the heart of the process. Indeed, the journey a consumer makes towards the decision stage is now far more dynamic. Often, when they walk into a dealership, they have already made up their mind about what they want to buy and how much they are prepared to pay for it. The ‘empowered consumer’ who has done their research may actually know more than the car sales person about the

‘‘

The challenge with all of this technology is to ensure that the buying journey remains seamless and that the customer is kept at the heart of the process.

market as a whole and how one brand is perceived against another. ‘Ultimately, this means that the car sales industry needs to continue to ‘up its game’ and adapt to the evolving consumer landscape. Working with a partner, such as Manheim Retail Services, provides access to a complete suite of tools designed to

deliver an integrated approach to the buying lifecycle which is built on a strong combination of technology and personal relationships. After all, at the heart of every customer journey is a customer who is looking for information, support and exceptional service in their pursuit of a new vehicle.’ [CD] CarDealerMag.co.uk | 79

Advertisement feature

Franchised dealers who have the ‘APPetite’ for more trade car profit use www.dealer-auction.com Gavin Smith and Clive Colyer, directors of Dealer-Auction, answer questions asked by franchised dealers who want a simple method to maximise the profit from their trade cars.

have no problem disposing of my trade vehicles, why would I use www.dealer-auction.com? We have no interest in disposing of trade vehicles for franchised dealers. There are plenty of existing avenues to assist dealers in doing that. We want to maximise the opportunity and increase the profit made on every trade car sale. The only way to do that is by offering it to the largest audience of online trade buyers in the UK. We currently have several thousand professional trade buyers wanting to be the best buyer for your vehicle. So how successful are you? Since launching in 2009, we have seen phenomenal growth as franchised dealers recognise the benefits of utilising the web for not only retail vehicles but also trade cars. In 2013, we auctioned and sold more than 42,000 vehicles and we are confident that 2014 will be even stronger as more dealers join us weekly. In January alone, we auctioned more than 5,000 vehicles. We cannot believe dealers are still trading locally in 2014 when there is so much profit to be made by trading nationally online. How will it make me more profit? As well as the massive exposure we provide, our system doesn’t rely on the right buyer being in the right place at the right time. Our simple upload system allows you to really

“sell” your vehicle in a way other methods do not. An industry-standard electronic appraisal form and full condition report can be added in just minutes. In addition, we have a sales team of motor trade professionals working hard behind the scenes to ensure every potential buyer views every vehicle listed. What convinces dealers to sell trade cars through www.dealer-auction.com? Just by giving us a try. We can demonstrate immediately the fantastic results that can be achieved. As there is absolutely no risk in trying us out, dealers don’t need much convincing. One managing director of a large dealer group who joined us said “I’ve never seen anything like this, it allows me to keep complete control of my trade whilst still auctioning them. It makes sending cars to auction seem old-fashioned.” Online systems are often complicated and can be time-consuming. Is yours? Quite the opposite, our user-friendly system has been designed with the modern franchised dealership in mind. Creating a detailed, attractive listing with a fully comprehensive condition report and photographs takes just a few minutes and is incredibly simple to do. We have also just launched our new “Appraise & Trade App”, which allows dealers to appraise and upload direct from any iPhone or iPad straight to the auction

Gavin Smith

platform, increasing the number of cars a dealer can list in a fraction of the time. What are your backgrounds? We have more than 50 years’ combined experience in the motor trade, in managerial and buying capacities for franchised dealer groups. We have also recruited our entire team from within the motor industry. We have a full understanding of the needs of franchised dealers and the trade buyers. What support do I receive? Our office-based team are experts in remarketing and negotiating to achieve the best possible prices for your cars. We are on hand to assist with all enquiries from potential buyers and provide a service which is first-class. Our field-based team is perfectly placed to assist dealers in making the most of our service and get the most from our system. We operate a full on-boarding service to any dealer that joins us and provide ongoing training and coaching to ensure the vehicles are offered with the best possible descriptions.

Franchised dealers wishing to sell on the site or trade buyers wishing to register to purchase can visit www.dealer-auction.com, or contact Dealer Auction on 0116 2301444 or info@dealer-auction.com ��| CarDealerMag.co.uk

FEATURE.

TRADING UP

Bringing back a bonnie car Gentleman Jim makes the going easy with Rav4 on long journey down from Aberdeen A GOLDEN OPPORTUNITY TO VISIT AWARD WINNER After last month’s small profit we put a shout-out for some help on our Car Dealer Forum and almost immediately Jim Reid came to our aid. Jim won our Used Car Dealer of the Year award (51–100 cars) at last year’s awards, and given the service that he delivered to us it’s clear to see why. He was just about to take in a 2003 Toyota Rav4 in part exchange, knew we had £2k to spend and was only too happy to let us have the car for that amount. Given the cracking offer, I didn’t hesitate in taking him up on it immediately. We know that those little Toyotas are well built and pretty easy to shift, and at £2k there looked to be a healthy profit in it for Great Ormond Street Hospital. It only dawned on me after the deal had been done that Jim is based in Aberdeen and we’re on the south coast… Never mind, it was still a great deal and I’d wanted to visit Jim and see his site since he won the award. We could have got the car collected and delivered to us, but given it’s a 650-mile trip the costs were extortionate and would have seriously dented our profit. (Any logistics companies reading who want to get involved, do please email me!) So, with a couple of jobs arranged for the return trip helping to keep costs down, tickets were booked from Southampton to Aberdeen. Jim, the gentleman that he is, had not only agreed to meet me at the airport, he’d also

roped his son into following in the Rav4, saving me an hour’s extra driving. Although it was dark, it was clear that the Rav4 was everything he’d said it was, and Jim went well above and beyond what we’d expected. He’d not only valeted the car and checked the levels, he’d also filled the tank for us. With a tank of fuel, four new Jim Reidbranded floor mats (great idea, Jim) and a Jim Reid beanie hat I set off for Edinburgh. The car didn’t miss a beat, although a new set of wipers helped me see better the next day. It was a three-hour journey across a dark, wet Scotland to Edinburgh, arriving just in time to grab a bite then hit the sack. The next day it was off to Galashiels for a day’s work with Mitsubishi before heading to Harrogate to meet the video team for a curry ahead of a shoot at Lawton Brook the next day. Following the shoot, I headed home, and by the time I got to the office I’d covered just shy of 1,000 miles in the Rav4, but it left me feeling far fresher than I’d honestly expected. I think the clutch is coming towards the end of its life at 74,000 miles, but aside from the wipers I couldn’t find any other fault – confirmed by a clean MOT. We’ll see if we can get someone to fit

Well built and easy to shift – the Toyota Rav4 a clutch, not because it needs it now but because it’ll make it lighter on the left foot, and given that most of these cars are driven by young women this’ll help sell her. And the good news is that without even advertising her I’ve got a couple of people showing interest. Thanks again to Jim for his help. And if anyone has any stock they are happy to pass our way for a steal – or, even better, for free – for this feature, do get in touch. As for seeing Jim’s site, I never did get there, but I promise I’ll be up again soon, Jim. andy@blackballmedia.co.uk

Sitting pretty and aiming to make a tidy sum in aid of Great Ormond Street Hospital

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DATA FILE.

Thestatistics n

SMMT Sales Data

Taking Stock

Registrations hit two-year growth milestone SMMT: February is evidence Britain is finally emerging from recession

ew car registrations in February 2014 grew by three per cent to reach 68,736 units, according to the latest SMMT figures. The UK car market has now recorded two full years of growth, increasing 17.4 per cent over the period, and providing evidence that Britain is finally emerging from the long and difficult recession of the past few years. Mike Hawes, SMMT chief executive, said: ‘The three per cent rise in February’s new car registrations marks two full years of continuous monthon-month growth; a real endorsement of consumer confidence and the attractiveness of the new car market. ‘While February is typically a quieter month ahead of the March registration plate change, we expect the arrival of the new 14-plate and

increasing economic confidence to maintain a steady rate of growth.’ Richard Lowe, head of retail & wholesale at Barclays, said: ‘Falling inflation, the strong housing market and possible wage increases are fuelling consumer confidence and helping to drive new car sales. ‘We’ve seen growth every month for two years, and March’s all-important plate change is sure to keep demand accelerating, before the market starts to level out.’ While the supermini segment recorded solid expansion over the past two years, volumes in the mini segment almost doubled, helped by the introduction of a variety of new models. More and more motorists are turning to the small car market in a bid to reduce running costs. Dual-purpose vehicles (which are now the third-largest segment) and

MPVs have recorded above-average growth over the past two years, with space, style and versatility all attracting customers. ‘It is extremely positive to see the new car market has now achieved 24 consecutive months of growth,’ said Sue Robinson, director of the National Franchised Dealers Association (NFDA). ‘Consumers appear to be less reluctant to commit to new vehicles as employment prospects improve and inflation begins to come down to a more manageable 1.9 per cent. ‘Increased sales are supported by strong manufacturer deals and low-cost finance offers that are encouraging consumers to buy. ‘We anticipate the market to continue to grow, and have strong expectations ahead for the 14-plate change.’

Ford’s Fiesta continues to be top of the heap SMMT figures show the top seller in February was the Ford Fiesta with 4,415 registrations to its name. The supermini from the Blue Oval was followed by the Vauxhall Corsa (3,138) and Astra (2,707) in second and third place. Making up the top ten (starting with the fourth-placed car) were the Ford Focus, Volkswagen Golf, Volkswagen Polo, Mercedes-Benz C-Class, Vauxhall Insignia, Audi A3 and BMW 3 Series. ��| CarDealerMag.co.uk

The Fiesta is also top of the heap in the year-to-date figures, with 13,487 registrations – more than 5,000 ahead of the second-placed model, its bigger brother, Focus (7,899 registrations). The other cars in the year-to-date top ten (starting with third place) were the Corsa, Astra, Golf, Polo, A3, Qashqai, Juke and Fiat 500. The figures back up the SMMT’s view that more and more motorists are turning to the small car market in order to reduce expenditure.

SMMT sales data Feb/year to date

Top

Most-improved manufacturers in February Dacia

+1,339%

+422%

Chevrolet

+115%

Maserati

+110%

Bentley

+97%

Bottom

Worst-performing manufacturers in February Proton Perodua

-100% -90%

Aston Martin -56% Mitsubishi

-48%

Land Rover

-34%

Dacia +1,339.39%

aston Martin -55.56% Figures supplied by SMMT

February 2014 February 2013 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 Mia Mini Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Saab Seat Skoda Smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other imports Total

2014

32 145 8 4,178 67 3,037 535 66 3,106 475 1,810 9,935 2,023 3,109 16 231 74 2,126 727 228 1 21 1,109 3,638 47 0 979 199 3,480 2 3,258 155 0 1,021 0 930 2,341 179 40 37 1,199 2,411 9,332 5,559 831 30 9

68,736

% market share

32 145 8 6.08 0.10 4.42 0.78 0.10 4.52 0.69 2.63 14.45 2.94 4.52 0.02 0.34 0.11 3.09 1.06 0.33 0.00 0.03 1.61 5.29 0.07 0.00 1.42 0.29 5.06 0.00 4.74 0.23 0.00 1.49 0.00 1.35 3.41 0.26 0.06 0.05

1.74 3.51 13.58 8.09 1.21 0.04

0.01

2013

Year to date (YTD)

% market share

2014 % change

32 145 8 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 0 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

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 0.00 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

10.34 -23.68 -55.56 41.05 97.06 -7.30 114.86 -4.35 10.06 1,339.39 20.19 -0.70 3.85 4.82 0.00 -13.16 2.78 0.14 -34.27 31.03 0.00 110.00 32.18 7.57 422.22 0.00 -12.90 -47.63 -8.32 -90.00 -11.68 30.25 -100.00 8.27 0.00 -0.21 33.24 2.87 -11.11 -17.78 2.30 18.89 4.19 -15.89 2.59 -31.82 -35.71

115 442 58 14,925 222 10,960 1,232 181 8,577 1,848 6,033 31,727 5,229 8,173 82 1,324 275 6,821 5,111 898 17 84 3,911 11,430 185 5 2,998 897 12,279 10 10,869 674 1 3,851 0 4,594 7,400 467 134 165 3,048 8,584 24,224 19,995 3,082 98 63

2.98

223,298

%market share

0.05 0.20 0.03 6.68 0.10 4.91 0.55 0.08 3.84 0.83 2.70 14.21 2.34 3.66 0.04 0.59 0.12 3.05 2.29 0.40 0.01 0.04 1.75 5.12 0.08 0.00 1.34 0.40 5.50 0.00 4.87 0.30 0.00 1.72 0.00 2.06 3.31 0.21 0.06 0.07

1.36 3.84 10.85 8.95 1.38 0.04

0.03

2013

%market share % change

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 0 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

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 0.00 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

2.68 -15.33 -50.85 16.51 94.74 14.70 30.10 -14.62 13.14 465.14 24.21 7.02 -7.83 4.39 412.50 -10.12 41.75 3.41 -11.44 26.30 240.00 140.00 31.11 12.81 362.50 0.00 7.69 4.55 -7.49 -76.74 -4.68 19.72 -75.00 16.24 -100.00 26.59 27.74 -2.10 83.56 10.00 6.31 5.45 -10.97 10.05 -3.39 -16.24 -18.18 6.13

CarDealerMag.co.uk | 83

TAKING STOCK. Remarketing specialist BCA gives its thoughts on matters that are important to dealers for the year ahead. Here’s what it has to say . . .

New year bonus as volumes sold on the wholesale market break records all over the country says Simon Henstock, BCA’s UK network operations director

n another record-breaking month at BCA, January was exceptionally busy in the wholesale markets. BCA achieved record results in the first weeks of 2014, offering and selling more vehicles than at any time in our history. Blackbushe alone sold a record-breaking 1,144 cars on one day in January, and achieved a weekly record sold volume in excess of 3,100 vehicles during the month. Belle Vue in Manchester also achieved record weekly sale figures, as did our sites in Glasgow and Edinburgh. Around the network, BCA centres in Brighouse, Walsall, Bedford, Birmingham and Measham all achieved record sale day performances. Although the headline average value fell in January from December’s high point, the good news is that volumes rose sharply during the month, according to our latest Pulse report. This fall was largely because of a changing mix of vehicles. Fleet and lease values climbed during January, with dealer values remaining static and nearly-

��| CarDealerMag.co.uk

‘The longer-term trends show that used car values continue to rise’ new values declining from the record level we saw in December. BCA’s data show that average values in January fell by £192 (2.5 per cent) to £7,381 compared with the previous month. Year-on-year, January 2014 was ahead by £244, or 3.4 per cent. Average age rose slightly over the month, while average performance against CAP Clean improved by a point to 97.98 per cent. Looking at the age bands, I can see there was some price pressure in the sub-one-year age sector, largely as a result of changing model mix in a low-volume sector, but ‘bread & butter’ stock up to five years old – saloons, hatches, MPVs – generally performed strongly during January. At BCA we have seen a similar pattern over the past three years as volumes rise in January and

the model mix changes compared with the very short trading period in December. The longer-term trends show that used car values continue to rise. Fleet and lease cars averaged £9,218 in January, a rise of £56 (0.6 per cent) compared with December and the second-highest value on record. Values were up by £692 (8.1 per cent) year-on-year. CAP performance improved by two points over the month to 97.73 per cent and was static year-on-year. Retained value against original MRP (Manufacturer’s Retail Price) was up a point at 42.46 per cent compared with December and year-on-year. Average dealer part-exchange values have been broadly static since October last year and fell by just £12 (0.3 per cent) in January. Year-on-year, values were ahead by £250 (6.9 per cent) compared with January 2013, with average age rising and mileage falling marginally over the year. The CAP performance improved to 96.68 per cent in January, up one and a half points compared with December. [CD]

Buyers’ guide

VW Golf

(Mk6) ’09-12

We help you choose the best stock for your forecourt. This month, the VW Golf is the model in the spotlight

UNDER THE BONNET

A number of engine options were available from small and large petrols to fuel-sipping Bluemotion diesels

PERFECT SHADE

A tricky one to answer, but always stock metallics. Golf buyers like premium touches such as metallic paint

What is it? Probably the most famous C-segment hatchback ever made thanks to some clever adverts, the Golf has been around since 1974. It has earned itself a strong following in the UK courtesy of its almost classless image and strong residuals. All of this means the Golf is a cracking car to stock on your forecourt because there will always be a buyer for one – whether that’s a student, a family or more mature buyers. All iterations of the Golf have been good and solid cars, but perhaps the Mk6 is one of the bestloved by buyers. It addressed many of the issues the previous Mk5 had, while adding some extra premium details. But most importantly of all, it continued the car’s tasteful design and style. The Mk6 appeared in 2009 as a three- or five-door hatch. Simplicity has always been a VW trademark and the Golf was no different. At launch, there were just three models available – S, SE and GT – plus four petrol and two

KNOWN PROBLEMS

Relatively few, in fact. Check DPFs, stalling DSG gearboxes and 2.0-litre petrols with failing ignition coil packs

diesel engines. A GTI model has always appeared in every Golf model range over the past 40 years, and the GTI version of the sixth-generation Golf arrived in May 2009. Just a month later, the GTD appeared, which usefully combined stunning performance with good fuel economy. Occupying such an iconic position in the Volkswagen range, the Golf has always been a first for new technology, and the Golf Bluemotion was launched in late-2009, offering buyers more than 74mpg and free road tax thanks to CO2 emissions of just 99g/km. There have been various versions of the Golf Mk6 launched over its three-year life – racy R, sensible estate and drop-top cabrio - and other trim levels such as the value-for-money Match hatchback.

What CAN GO WRONG? Golfs are known for being strong, so there’s not too much to look out for. A lot of Volkswagens,

THE RIGHT BUY

There’s a wide range of Golfs on offer, but if you choose to stock a five-door hatchback in SE you won’t go far wrong

including the Golf, have received bad press for DPF problems. It’s a problem for many manufacturers, not just Volkswagens. Other problems include cars fitted with the 2.0-litre TFSI petrol engine suffering from ignition coil pack failures. It means the car could misfire. Also, the automatic DSG gearbox is known for being slightly temperamental and stalling the engine. There was just the one recall and it was to do with the DSG ’box cutting the car’s power.

What’s the perfect GOLF? It’s fair to say there’s no perfect Golf for you to stock, as there are various versions. GTIs and GTDs will always be popular, as will the estates – they’re loved by the country set, who run them into the ground. But if you’re contemplating stocking a Golf on your forecourt, you wouldn’t go far wrong opting for a five-door Golf SE or GT in metallic colours. These are always desirable and will interest a wide range of buyers. [CD] CarDealerMag.co.uk | 85

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Search for ‘Car Dealer Magazine’ in the iTunes store ��| CarDealerMag.co.uk

auctions.

Facebook’s take on the car sales business bit.ly/funnyornot

Henstock auction stations

Physical’s days aren’t over

rom time to time, a market commentator will suggest that traditional vehicle auctions have had their heyday and the onward march of digital marketplaces heralds the death knell for the physical arena for used vehicles. Far be it from me to point out that these commentators invariably have a vested interest in such an eventuality, but it makes for an interesting discussion point. Too often, the different remarketing channels are perceived as being mutually exclusive and in competition with one another. In truth, the future inevitably holds a need for both a physical wholesale infrastructure and a digital marketplace, because customers want both. Some sellers want to offer their vehicles in a range of physical and online channels because it suits the needs of their business. Some buyers prefer the convenience of buying stock online, others will prefer to buy vehicles they have seen ‘in the metal’. The reality is that these routes to market are complementary and all have a role in delivering an efficient and effective marketplace that meets the needs of sellers and buyers alike. You also need all the building blocks to deliver the best service – efficient logistics and administration, a comprehensive physical network, great digital platforms and search systems, effective reporting and data analysis, targeted sales and marketing, and a stock-funding capability for those buyers who would benefit from such a facility. Professional used car buyers need to be able to find the right stock quickly and efficiently, particularly as the volumes reaching the wholesale marketplace will inevitably rise in the future. Understanding those requirements and making sure dealers have access to all the available stock so that they can make informed buying choices is vital. In short, it is all about being easy to do business with, however our customers choose to use us – in the physical or virtual world.

A strong January could herald good year ahead Manheim reports high attendance at both physical and online sales

his year has started on a high for dealers, says Manheim. The company’s latest monthly Market Analysis report reveals the average selling price of vehicles at auction grew by £80 during January 2014, reaching £3,209. Average selling prices have continued to improve since August 2013, with the £3,209 achieved in January 2014 being the highest recorded figure since Manheim began tracking values in 2007. The company points out that the average age of vehicles at auction hasn’t changed, remaining at 100 months, with a fall in average mileage of 97 miles to 76,947. Prices rose across the board, too. The medium family sector jumped the most sharply, with values increasing by £198 (or 6.8 per cent). Meanwhile, Manheim says milder weather conditions so far this winter have contributed to average selling prices in the 4×4 segment falling from £7,066 to £6,898. Daren Wiseman, valuation services

Who is Simon Henstock?

Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 cowboy 6644. Car dealer ads 28/8/13 15:49

Page 1

No cowboys. Just Just trade trade professionals. professionals.

manager at Manheim Auctions, said: ‘These figures signal a clear upward trend in the relative value of part-exchange vehicles at auction and continue to reflect the strength of the used car market at the moment. ‘As I predicted last month, the first six weeks of the year tend to be the busiest, and this has certainly been the case so far, with very high attendances at the auctions during January, both physically and online. ‘While the challenge facing dealers in 2014 remains the need to ensure that the best value for all their part-ex vehicles is achieved, if January is a barometer of what we can expect for the rest of the year, 2014 will be a successful one for the partexchange market.’

Van values reach record levels in January AVERAGE values for commercial vehicles continue to rise, as January 2014 posted the highest figure on record, according to BCA’s latest figures. Demand for LCVs was strong throughout the month, with a number of record sales around the BCA network. Average values for all light commercial vehicles increased marginally in January 2014 to £5,322 – a

rise of £11 compared with December 2013 – as buyers competed strongly for stock. January’s average value was the highest since Pulse began reporting in 2005 and was the sixth month in a row that average values across all light commercial vehicles exceeded £5,000. Year-on-year values remain well ahead, up by £653 (13.9 per cent) over the 12-month period.

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 | 87

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TRADER TALK.

..in association with AutoTrader

Act today and get yourself responsive Customers are more likely to spend their cash if the car dealer responds quickly

ncouraging an audience to embrace the digital revolution can bring a collective sigh of despair in some quarters. But for those who accept that change is as inevitable in automotive as it is in all other retail sectors, the digital marketplace offers a bright future, one characterised by more leads, higher sales and greater profitability. Many retailers are already reaping the rewards. Data-driven intelligence underpins the products and services they are using to win the competitive edge. This includes software that collates huge volumes of online search information, helping inform decisions to purchase desirable stock, price it competitively and manage it intelligently by reacting swiftly to changing market conditions. But the past few years have also seen a huge shift in the way that information is presented, consumed and used by consumers to inform their buying decisions. And exploiting this behavioural change should be seen as just as important as careful forecourt management. In the decade to 2012, the number of websites grew from three million to 555 million and continues to grow exponentially. But what has really changed in recent years is the way sites are accessed by potential buyers. Mobile and tablet

use has soared to the extent that it is expected to exceed desktop use by the end of this year. New products such as smart watches and Google Glass will only further increase access points used to reach you online. Reacting to changing consumer behaviour is key to seizing opportunities, and retailers should align their business model to reflect the new consumer journey. Life is getting quicker and consumers are increasingly impatient, so being responsive in an increasingly crowded marketplace has never been more important – particularly out of normal office hours. Start by considering your website: a 21stcentury shop window that must be open to all the devices people are using. Optimised sites are best; responsive sites are expected. And don’t ignore the basics of online promotion, such as the need for clear images that focus on stand-out features of the car, as well as attractive exterior shots. Latest Auto Trader research suggests that the majority of searches take place between 7pm and 10pm, primarily on mobile devices. For many consumers, the opportunity to interact through email or Live Chat in what might otherwise seem an intimidating environment online is very attractive.

‘In 10 years, the number of websites grew from three million to 555 million.’ Yet half of dealers fail to respond within four hours to even the most basic requests for information – the time that most consider acceptable. Conversely, 67 per cent of potential buyers said they were more likely to spend more money with dealers they considered responsive. Think for a moment about what that could mean for your business. The world is moving quickly and retailers must be prepared to seize the initiative or lose out to competitors. Potential customers are searching outside normal working hours, they have little tolerance for unresponsive sites and even less patience with retailers who either fail to respond quickly or satisfactorily to that vital first contact.

Who is Nick King?

Nick is market research director of Auto Trader, the UK’s number one digital marketplace for new and used cars. Visit autotrader.co.uk

CarDealerMag.co.uk | 89

MONEY MATTERS.

..in association with Paragon

Loan arranger is back and raring to add oomph to financing field Internet savings bank has been launched after success with lending in core market, says Julian Rance

‘To optimise cash flow we pay commission at the same time as the advance.’

aragon Car Finance re-enters the dealer market this month with a new range of flexible finance products backed with a fast and efficient service package. It’s well-timed, too, coming as the economy gathers pace and car sales enjoy strong growth. Importantly, Paragon Car Finance brings additional liquidity to meet this increased demand and adds new competition by expanding the relatively small pool of independent lenders serving dealers today. For many dealers, Paragon will be a familiar name with strong credentials. Active in the car finance market between 1998 and 2008, we wrote more than £900 million of business, working in partnership with more than 2,000 dealers to fund in excess of 100,000 vehicles. After taking the hard decision to withdraw from new business at the onset of the credit crunch, Paragon weathered the financial crisis well. Having successfully re-established lending in its core buy-to-let market, the group has now launched Paragon Bank – a new online savings bank – to take the franchise into other consumer

and small business finance markets. Paragon Car Finance is the first loan product range from Paragon Bank and dealers can be assured that our rates will be competitive and products available consistently in the market. Our core range of hire purchase and lease purchase products, designed with the new regulatory environment in mind, gives dealers maximum flexibility to tailor the finance contract to meet each customer’s individual requirements. For example, Paragon dealers can adjust key contract terms – including deposit amount, duration and final payment on lease contracts – to strike the optimum deal in terms of affordability for each customer. In line with dealer feedback, we will also fund vehicles across a wide age range – lease purchase, for instance, is available on cars up to two years old at the start of the finance contract and can be taken over a 60-month term. As well as offering enhanced product

Ladies and gentlemen... start your engines

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flexibility, Paragon has set up its new systems to maximise dealer productivity. At the heart of the operation is a bespoke, online application system – easy to use and able to return a lending decision in seconds. Dealers can expect same-day payouts on successful applications, and to optimise cash flow we pay commission at the same time as the loan advance. Well known for its logical, common-sense approach to underwriting, Paragon Car Finance works by setting out clear and consistent lending criteria at the outset. This helps dealers pre-qualify business and avoids wasted applications. Of course, not all applications are straightforward – and we have no qualms about giving dealers direct access to our experienced underwriters to discuss complex cases. In fact, in all service matters, Paragon Car Finance aspires to be best-in-class – giving dealers access to its knowledgeable staff who can resolve their inquiries directly without passing them from pillar to post. An experienced player back with a fresh approach, Paragon Car Finance is raring to go and ready to inject additional horsepower to the dealer finance market.

Get into gear! Visit our website today to register as a dealer

car finance 1

28/02/2014 17:00

MARKET INSIGHT.

..in association with ASE-global.com

Motor dealers make a strong start to 2014 Share price performance 115% Key 110%

Pendragon

105%

Vertu

100%

Lookers

he listed motor retail stocks were certainly a wonderful investment during 2013, with the positive registration and vehicle production news being reflected in strong increases in the share prices of the motor dealers. Compared with an overall growth in the FTSE 100 of 14 per cent over 2013, a balanced portfolio of motor retail shares would have produced an average growth of 92 per cent, with Cambria leading the charge with a trebling of the share price. This trend has continued as we have progressed through the first quarter of 2014. The January registration statistics were buoyant, showing a growth of 7.6 per cent, and ASE’s financial data indicates motor dealers made a very strong finish to 2013, both of which should bode well for the next round of earnings releases. Given the volume aspirations of the manufacturers, we are expecting a strong quarter of registrations and as, on the whole, the registrations appear to be matched by customer sales, the immediate future looks rosy for the listed motor retailers. This is certainly the case for the majority looking at the share price performance since the turn of the year. Both Vertu and HR Owen have started the year

strongly, sitting practically 10 per cent up as we move through February. The only shares which are fractionally below their start position for the year are Inchcape and Caffyns, with these shares matching the performance of the FTSE 100, which opened the year slightly down. Financial performance A couple of the listed motor retailers released trading updates during January, continuing the upbeat theme we have been following for the past year. Cambria reported that the results for the first four months of the company’s financial year are ‘substantially ahead’ of the corresponding period in the prior year and the performance is complemented with a bullish outlook for the remainder of the year. HR Owen said that it expects to report strong trading when it announces its 2013 preliminary results in March. In a brief trading update, the company reported an encouraging finish to the year, with the expectation that results will be ahead of management’s expectations. Transactional activity Vertu has continued where it left off at the end of 2013, with further growth through the acquisition of the Nissan and Volvo site in Sheffield from Harratts. This takes Vertu to nine Nissan sites,

07/02/14

05/02/14

03/02/14

01/02/14

30/01/14

28/01/14

26/01/14

24/01/14

22/01/14

20/01/14

18/01/14

16/01/14

14/01/14

Caffyns 12/01/14

80% 10/01/14

HR Owen

08/01/14

85%

06/01/14

Cambria

04/01/14

90%

02/01/14

Inchcape

31/12/13

95%

FTSE

a franchise that has been performing very well, and with the acquisition timed just in advance of the launch of the new Qashqai it should bring significant levels of new orders. The acquisition also marks a growth with Volvo adding to the company’s representation in Derby. With no goodwill paid on the acquisition it is expected that it will take some time for the purchase to become earnings-enhancing. However, it further strengthens the company’s regional and brand presence. Given the reserves, access to funds and expectations set by a number of the listed motor retailers, we would expect a number of acquisitions as we move through the first half of the year. Broker forecasts The brokers remain very positive in general on the motor retail sector. Whilst there are potential darker clouds on the horizon with regards to the potential impact of stronger Eurozone economies and the more medium-term impact of all of the PCP vehicles coming back into the market, 2014 looks set to continue the recent trend of strong profitability announcements supported by regular positive new car registration statistics. Both of these should continue the recent trend of share price growth.

Who is Mike Jones? He‘s a partner at ASE Global. You can read ASE Global‘s column here every month. CarDealerMag.co.uk | 91

data file.

James Litton TRADER TALES

Reasons to be cheerful and confident in 2014

otor dealers are perennial harbingers of doom. When the used car market is busy, we moan that used cars are too expensive. When the SMMT figures are up, everyone cries pre-reg. You could argue this is the British prerogative. There is no doubt, however, that the economy does seem to be picking up, particularly in the retail sector. Poundland, Pets At Home and McColls have all announced that they intend to float on the London Stock Exchange in 2014, and 2013 saw the highest number of entrants to the stock exchange since 2007. Glass’s predicts a five per cent year-on-year growth for the new car market, and used car values remain firm. With interest rates steady, inflation at a manageable level and the pound still relatively weak, I think there is reason to be confident in 2014. Mercedes has another exciting year ahead, with another tranche of new models. The GLA fills a gaping void in the small SUV market, the new C-class promises to delight both retail and fleet customer alike, and the S-class coupe is a thing of beauty. JLR cannot build cars quickly enough to satisfy demand. On a recent flight to Munich, I sat next to a project manager for JLR who spoke of the epic plans for the new site in Wolverhampton. Every new JLR model looks fantastic, and the fact that British jobs are secure in the long term is a credit to Tata. The innovative i-range from BMW looks set to create an interesting proposition for customers, and the Korean brands go from strength to strength. Mainstream brands such as VW, Ford and Vauxhall know exactly who they are and continue to work hard with a good product line-up and creative marketing campaigns. Manufacturers now need to support their retailers if profitable times return. Hyundai’s recent corporate identity change announcement was no doubt met with indifference by its network. Dealers need a sustained period of profitability to secure their long-term future, to invest in premises, people and process, to safeguard against a repeat of 2007.

‘Glass’s predicts a five per cent year-on-year growth for the new car market’

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Who is James Litton?

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

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the fleet.

LATEST FROM THE FLEET . . . Second report:

Third report:

Fourth report:

MitsubishiASX

VWCalifornia

RenaultZoe

New model is making me lazy with automatic gears as well as lights and wipers

I’ll choose comfort every time

Taking it to the edge is proper scary

The new kid on the block arrived with 18-inch Brabus alloy wheels, leather seats and a stonking 3.0litre V6 diesel engine, making the little 2.0-litre BlueMotion diesel in our trusty campervan look weedy. But the Mercedes Sport Van can’t transform into a luxury hotel at the press of a button. Not in the UK anyway. The Mercedes Vito Sport Van isn’t a direct rival but the German marque is targeting a similar customer to one who may be thinking of a VW California or Transporter. The big Merc is great at lugging sports equipment. The V6 provides serious torque and an impressive top speed, while returning 32mpg on the combined cycle. It’s also massive – it can swallow a 9’2” surfboard and eight intact bicycles. The posh Marco Polo version isn’t available in the UK so it can’t rival the California. After a long weekend with both, I would stick with the California. Although the Mercedes offers a superior ride, I prefer changing out of mountain-biking gear in the back of a heated, carpeted Volkswagen with tea on tap, as opposed to a chilly panel van. Leon Poultney

Given the awful weather, the Zoe has been relegated to second car for much of the month. The cold wet weather doesn’t help its range, particularly when you need to use the heater to demist the screen. We tested the car’s range of 80 miles to the extreme. On a cold, wet Monday the traffic was at its worst, and with 20 miles to go, the warning light came on showing nine miles left. It was ‘squeaky bum time’… I ploughed on regardless, turning off all electrics except the headlamps. The last eight miles home is on narrow, dark, winding country roads. As I drove on, I wondered what would happen when the power ran out. Would a backup allow me to keep the hazards on? Or would I be stuck in the dark on a blind bend – an accident waiting to happen? Thankfully, the car made it home but it showed zero miles remaining for the last four. At 2,000 miles, the service light has come on. We assume this is its first service, as they are due every 18,000 miles. With the longer days here, we plan to get more out of the Zoe with some longer journeys. Andy Entwistle

HAVING been behind the wheel of the revamped 2014 model Mitsubishi ASX for a couple of months now it’s fair to say it’s making me lazy. Our previous ASX had keyless entry, automatic lights and window wipers as well as cruise control, but the fact that this latest model comes as an automatic means that I’m getting a bit too used to having things done for me. The idea of having to use a key to get into my house is something I now look at with disdain. And having to actually turn lights on when I walk into a room? Do me a favour. This month I’ve seen the delights of some of Britain’s finest towns, as well as Grimsby, Hull and Northampton. Thankfully, the ASX makes driving long distances a doddle. The improved spec means the ride is quieter than the previous model, while the performance of the 2-litre ��| CarDealerMag.co.uk

turbodiesel 4WD automatic makes light work of the motorways. In fact, the more time I spend behind the wheel of the ASX, the more I notice some of the subtle improvements on the last model. The interior certainly has a better quality feel and the sat-nav, which had a tendency to give up in the past, seems much improved and hasn’t let me down yet. Gareth Bethell (@garethbethel

the knowledge Model: Mitsubishi ASX 4 4WD Automatic Price: £23,899 (as tested) Engine: 2.2-litre diesel Power: 147bhp, 360Nm Max speed: 118mph 0-60mph: 10.8s Emissions: 153g/km Mileage this month: 4,005 This month’s highlight Covering hundreds of miles without having to do very much at all

(@blokesincars)

the knowledge Model: Volkswagen California SE Price: £56,440 (as tested) Engine: 2.0-litre, turbocharged diesel Power: 138bhp, 340Nm Max speed: 104mph 0-60mph: 16.6s Emissions: 206g/km Mileage this month: 1,674 This month’s highlight Discovering the Cali is the king of van-based motorhomes

(@CarDealerAndy)

the knowledge Model: Renault Zoe Dynamique Intens Price: £19,393 (as tested) Engine: Electric motor Power: 88bhp, 219Nm Max speed: 84mph 0-60mph: 13.3s Emissions: 0g/km Mileage this month: 104 This month’s highlight Not being stuck in the dark in the middle of the New Forest

longtermers

Fourth report:

Fifth report:

VolvoXC70

FordMondeo

NissanQashqai KiaCarens

It’s awfully nice but nothing like a ’99 V70

Ageing but it is still a satisfactory drive

Used car dealers can’t get enough of them

Effortless and quiet motorway driving

I AM probably going to sound like I’m 74 years old now – or like Dave Brown, in other words – but it really is quite alarming how modern-day cars have grown in size in the past decade or so. Take my dad. His car I mean. He’s been pootling around in a 1999 Volvo V70 2.5 for the past 10 years. He adores it. Classic estate car looks, nice to drive, lovely five-cylinder howl, and after 140,000 miles the leather is now nicely ruckled. I recently brought our long-term XC70 home to show the old man and he was really shocked at how much larger AJ13 BPX is compared to his venerable V70. And it is in every aspect – from wheels to indicator stalks, it’s quite surprising how car size increase has become the norm. He was also baffled at the whole concept of being able to change things like interior lighting, whether or not the headlamps should swivel and how heavy the steering should be. To me, the XC70 is a marvellous statement in modern motoring, but to my dad it’s a Swedish box that’s a bit too poncy. He’s wrong but I can see his point. James Batchelor

The Ford Mondeo estate may show its age – this generation celebrates its seventh birthday this year– but it is a popular choice for families and business types. The boot is one of the best in class and it handles surprisingly well. Its biggest competitor is the Vauxhall Insignia Tourer: similar price, similar size and touting for the same business. Start crunching the numbers, though, and the Mondeo, despite its age, comes out on top. The Ford may be more expensive than an Insignia and less well equipped but the Mondeo is more spacious, better to drive and its styling still looks more upmarket than the Vauxhall’s. When I first drove the Mondeo I struggled with the multimedia and sat-nav system. It wasn’t as intuitive to use as some of its rivals and looked dated. But I’ve got used to it and, short of a few small niggles, I have come to appreciate it. A couple of colleagues have mentioned that the white body and roof bars give it a police car look. I guess that’s why I get funny looks from motorists who slow down ahead of me on the motorway. Nigel Swan

PARKING at a dealership I was greeted by a salesman shouting from the other end of the forecourt. ‘Wanna flog it mate?’ Turns out the dealership, a decent-sized independent, can’t get hold of enough quality used Qashqais to satisfy demand. If they park one in prime position on the roadside site in the morning it’ll be gone by evening. A prime example of Qashqai loveliness like Car Dealer’s white 360 would, I’m told, have droves of would-be buyers making a beeline for the dealership. I decided not to sell – our editor and the Nissan press office may have had something to say about that – but I’m not surprised. Nor was I surprised when the original Qashqai won another industry award – for used car of the year – last month. Our 1.6 dCi model is approaching its first service and it’s performed without a hiccup. It’s comfortable, well equipped, spacious, practical, efficient and good looking. Throw some cast-iron residuals into the mix and it’s easy to see why the Qashqai is a favourite with used car dealers. Mal Hay

It’s a long time since I spent time in a Kia. So when I discovered the only car available for a 500-mile round trip to Manchester was our Carens, I was a little grumpy. I had seen it in the car park. It looked great from the outside (sorry Daljinder, it looks good in white), but I could picture the cheap Korean plastic of the interior and it was already crossing my mind if I could claim on my expenses the cost of the inevitable chiropractor sessions I would surely need after the trip. How wrong I was. Motorway driving was effortless, road noise minimal and I suspect that would have been further reduced if I had removed the roof rack. As for the cheap plastic, what was I thinking? The interior is of genuine quality and puts to shame some of its competitors. Heated seats and steering wheel were appreciated by this confirmed southerner (who forget to take a coat up north). The Carens should be taken seriously by anyone looking to invest in a new family car. The future Mrs Culver and I are seriously considering it when we upgrade later this year. Cliff Culver

(@JRRBatchelor)

(@motoringnut)

(@MalcolmHay)

(@CarDealerCliff)

the knowledge Model: Volvo XC70 D5 AWD SE Lux Geartronic Price: £43,545 (as tested) Engine: 2.4-litre, five-cylinder diesel Power: 213bhp, 439Nm Max speed: 127mph 0-60mph: 7.8s Emissions: 169g/km Mileage this month: 1,987 This month’s highlight Seeing my dad’s face at the button to change the steering weight

the knowledge Model: Ford Mondeo Estate Titanium X Price: £29,490 (as tested) Engine: 2.0-litre, turbocharged diesel Power: 161bhp, 340Nm Max speed: 137mph 0-60mph: 8.7s Emissions: 119g/km Mileage this month: 2,154 This month’s highlight Other motorists slowing to let me through on the motorway

Sixth report:

the knowledge Model: Nissan Qashqai 360 Price: £22,090 (as tested) Engine: 1.6-litre, turbocharged diesel Power: 128bhp, 320Nm Max speed: 118mph 0-60mph: 10.7s Emissions: 135g/km Mileage this month: 3,134 This month’s highlight Driving such a desirable car in a stunning livery

the knowledge Model: Kia Carens ‘3’ 1.7 CRDi Price: £23,895 (as tested) Engine: 1.7-litre, four-cylinder turbocharged diesel Power: 134bhp, 330Nm Max speed: 119mph 0-60mph: 10s Emissions: 132g/km Mileage this month: 2,431 This month’s highlight A great trip north to Manchester and back CarDealerMag.co.uk | 97

data fiLe.

Valuable lesson to be learnt from fears over the ‘Millennium Bug’

n the months leading up to the year 2000, much was made about the ‘Millennium Bug’, where it was feared that computer systems using two digits to denote the end of the year, as opposed to all four digits, would leave some people vulnerable to the possibility that some systems may interpret the year as 1900. When the year 2000 finally arrived and the dates changed, there was so little in terms of issues reported about this widely-publicised phenomenon that people worldwide believed all of the hype to be a message of dishonesty – a hoax causing mass disruption for nothing. What a lot of people missed was the fact that most issues were corrected in anticipation of the new year arriving, saving an enormous amount of chaos. However, as people didn’t witness this they questioned the hype leading up to the event. Throughout our own industry, much talk has taken place over the past year regarding the biggest change to the regulation of consumer credit since the eponymous 1974 Act: the introduction of the Financial Conduct Authority as the sole new regulator from April 1, 2014, taking over from the Office of Fair Trading. Change has been inevitable, and to proceed into the new era you have been required to commence a journey of preparation including looking at your consumer credit licence ensuring that everything is in place, followed by applying to the FCA directly for what is deemed as ‘interim permissions’. Arriving at work on April 1 may seem little different to the day before, as your interim permission certificate will now allow you to continue offering exactly the same

Jonathan

Such TIME IS MONEY

service as you always have done. However, during the interim period you may question the reasoning behind the change and the difference it has made other than the fact that further funds have disappeared from your bank account for the pleasure. The new consumer credit sourcebook (CONC) has been available in draft format since last October and should now be finalised, the FCA having sought feedback across the industry, making it suitable for everybody to refer to. At first glance, this book may not appear to be the best bedtime reading (it’s about 200 pages long!). However, please note it contains the rules of the new period, and I

‘Put in the hard work now.’ would specifically draw your attention at the very least to the rules and guidelines regarding ‘conduct of business credit brokering’. Important areas include: n Providing adequate explanations to customers n Allowing sufficient decision time for the customer n Using non-aggressive sales techniques n Choosing lenders for the right reasons for the customer, not for your own financial gains n Awareness of the rules! It’s not too late to act to ensure compliance with the new rules. Take a similar stance to that of the IT personnel with the Millennium Bug; put in the hard work now, then the severity of the issue won’t be as bad for you as for those who chose to do nothing.

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

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FIRST DRIVE

2014 Mini Mk3

Under the skin of third-generation British icon

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