Auto Influencers 2014

PRE-REG: SMMT CHIEF ENTERS DEBATE

Issue 72 | March 2014

plus: A DAY AT CAROLINE’S CARS

CarDealerMag.co.uk | £3.50

clear picture industry’s leading figures on what 2014 has in store

featuring car bosses FROM: Renault, Toyota, Peugeot, Nissan, Jaguar Land Rover, Kia, BMW, Pendragon, Ford, Mitsubishi and Hyundai plus Major suppliers give their views on the year ahead

FEATURE.

the

influencers The industry’s biggest names predict another bumper year for the motor trade in 2014 MEET the influencers. Or, in other words, the people who shape the car market.

For 2014, we’ve brought together the largest group of industry bigwigs since we started Automotive Influencers in 2012. From the manufacturers we have presidents, CEOs, managing directors and sales directors from Ford, Jaguar Land Rover, BMW, Nissan, Peugeot, Hyundai, Renault, Kia, Toyota and Mitsubishi. We also ��| CarDealerMag.co.uk

have the CEO of the UK’s largest dealer group, Pendragon, as well as representatives from the supplier world – Manheim, Supagard, Autotorq, HPI, Contact Advantage, The Auto Network, GForces and Auto Protect – plus search engine giant Google.

We asked them seven questions designed to reveal their thoughts for the year ahead. Here’s what they had to say.

PICTURES: MAX EAREY & PETER SPINNEY

Scan the QR code to find out what the influencers think about the next 12 months

With thanks to The RAC Club, Pall Mall royalautomobileclub.co.uk

CarDealerMag.co.uk | 45

FEATURE.

Jon

Wellsman FORD: Motor industry as a whole faces a number of challenges What opportunities do you think 2014 will present?

Ford will continue to build on last year’s successful transformation of our customer service and aftersales experience. We’re doing everything we can to make buying and owning a Ford vehicle as enjoyable, affordable and trouble-free as possible, and this is driven through our excellent dealer network – the largest in the UK. What do you regard as the biggest threat to the motor industry in 2014?

The economic climate in Europe continues to be very difficult, with over-capacity in the automotive industry creating severe profitability issues. Ford has reorganised its manufacturing operations in the UK to concentrate on the design, development and manufacture of world-class engines, in addition to designing and developing award-winning commercial vehicles. Ford has also pressed ahead with significant investment in its sales and aftersales operation.

Are there any reasons to be cheerful in 2014?

Absolutely. The new car market is at its strongest since 2007, with overall registrations in 2013 up 10.8 per cent on 2012. The UK was also the only European market to grow consistently through 2013, and as market leader we have plenty to be cheerful about going into 2014. The focus now is to match our best-ever model range with tremendous customer service support from the UK’s strongest dealer network.

What are you most excited about in 2014?

Last year we announced that Ford is launching 15 new models in five years; that figure has increased to 25 new models within the same period. The EcoSport will expand Ford’s presence in a growing market sector and this will grow further when the Ford Edge is introduced. We will double the size of the Ford Transit range with the introduction of the Transit Courier and Transit models, supported by our Transit24 aftersales service.

Can you see the current period of strong new car sales continuing? If so, for how long?

A buoyant UK market has attracted the excess production capacity that couldn’t be absorbed by depressed European markets. It was a credit to Ford’s outstanding product line-up and its dealer ��| CarDealerMag.co.uk

My area of focus is continuing to deliver the best customer support possible.

Mini CV Job title: Director, Ford Customer Service Division (FCSD).

Age: 51.

Lives: Essex.

Drives: Ford Mondeo.

Family: Married.

Education: Graduated from Bradford University in 1984 with a BSc in engineering and management.

Career: Joined Ford in 1986 as a sales zone manager in Daventry district office.

Previous postings include managing director Ford of Hungary, marketing and sales director Ford of South Africa and product marketing director Ford of Europe.

Wellsman returned to Ford of Britain as sales director in 2009.

Number of dealers: 510.

partners that Ford’s market lead has strengthened.

Our expectations are that the UK market will continue at similar levels.

Do you think the motor industry needs to change and where should it come from?

The motor industry as a whole faces a number of challenges. My area of focus is continuing to deliver the best customer support possible.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Looking after customers. Last year we launched Ford Motorcraft 4+, a comprehensive aftersales package to owners of Ford vehicles aged four years and over. This completed the transformation of Ford’s aftersales experience, which includes Ford BlueService for new vehicles, Ford BlueService for Fleet, and Transit24. We are also in the process of refitting Ford dealerships across the UK with our new-look showrooms.

Matt

Harrison toyotA: Every business needs to change or it will diminish – and die What opportunities do you think 2014 will present?

For the market overall, consolidation, perhaps gentle growth. Assuming the European economy has stabilised as predicted, we should see a return to a more normal supply-and-demand situation in the UK. For Toyota and Lexus specifically, I predict growth on the back of new models, both those introduced part of the way through 2013 such as Auris Touring Sports and IS 300h, or new in 2014 such as new Aygo and the small Lexus SUV. What do you regard as the biggest threat to the motor industry in 2014?

Complacency. As a sector we have a regrettable habit of waiting too long to take corrective action.

I see it repeatedly when dealers get into trouble.

The signs are usually there long before corrective action is taken.

My aim is to try to do business the way our customers want it.

Are there any reasons to be cheerful in 2014?

Lots, and I’m sure I can’t think of them all.

The economy is recovering, the products are better than ever, finance packages are making cars more accessible and affordable to a wider market, and the customer is more and more empowered.

What are you most excited about in 2014?

New launches are always a focal point for the business so perhaps not surprisingly I’m excited by new Aygo. The first-generation model was a great success for us, remarkable given it was a new segment for the brand. Aygo is a car with a slightly different spirit and attraction than the rest of the range, more cheeky. It lets everyone have a bit of fun working with it.

Can you see the current period of strong new car sales continuing? If so, for how long?

We believe the market will be slightly up on last year. What should change is the competitiveness, especially as mainland Europe recovers and relieves the UK from being the only battleground.

Do you think the motor industry needs to change and where should it come from?

Every business in every industry needs to change or else it will diminish and ultimately it will die.

The impetus for change should come from within the business, both dealer and manufacturer, but ultimately we all should be serving the needs of

Mini CV Job title: President and managing director, Toyota (GB) plc.

Age: 45.

Lives: Kent.

Drives: Lexus RX 450h.

Family: Married, two children.

Education: BSc (Hons) degree in financial accounting from the University of Kingston upon Hull.

Career: Joined Toyota GB as general manager vehicle marketing in 2000, becoming marketing director in 2003. Subsequently moved to Toyota Motor Europe in 2005. In 2008, appointed director of Lexus Europe, returning to Toyota GB in 2011 to take up the role of commercial director. Progressed to current role in September 2013.

Number of dealers: 198 Toyota, 52 Lexus.

the customer. My aim is to try to do business the way our customers want it.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Keeping costs under control as volumes recover and focusing on delivering the best customer service they possibly can. I don’t mean in comparison to their own past or the car trade in general. Consumers might only buy a car every two or three years but they have retail experiences every week of the year and their expectations change accordingly.

COMING UP Our automotive influencers caught on camera – Picture Special, p58-59 CarDealerMag.co.uk | 47

FEATURE.

James

Wright NISSAN: Launch of new Qashqai will get us off to a flying start What opportunities do you think 2014 will present?

2014 will be one of the most important years in the history of Nissan in the UK and we are very excited by the opportunities it presents. The launch of the all-new Qashqai will get us off to a flying start but a raft of incredible new products, including X-Trail and a new C-segment hatchback, will refresh and rejuvenate our model line-up as the year progresses.

Our aim is to capitalise on the undoubted impact of this new product by increasing our new car share in the coming years to six per cent for the first time. But sales volume is not the be-alland-end-all. We must also seize the opportunity to consolidate and ensure our customer service is consistent across the network and of a standard that matches the quality of our new product.

Manufacturers need to take a long view and resist the temptation to chase short-term market share.

What do you regard as the biggest threat to the motor industry in 2014?

There is a risk that the current instability in the Eurozone persists in 2014 and there is a danger this will have a spill-over effect on the UK marketplace. If this happens, you could see manufacturers taking actions that distort the market and ultimately have a negative impact on both manufacturer and retailer balance sheets.

Are there any reasons to be cheerful in 2014?

Yes – the growing popularity of electric vehicles.

The Leaf is a very important model for us, and already in 2014 we have celebrated the 3,000th Leaf sale in the UK and the 100,000th sale globally.

Without a doubt, consumer acceptance of this new technology is on the up and we envisage a continued growth in sales as a result.

What are you most excited about in 2014?

The launch of the all-new Qashqai. The original Qashqai was a massive success for us, with worldwide sales in excess of two million since its launch in 2007, and we have equally high hopes for its successor. The new model features significant improvements across the board and represents a real step up in quality and value, as recognised by What Car? when it named it Car of the Year 2014.

There has already been phenomenal interest in the all-new Qashqai.

Can you see the current period of strong new car ��| CarDealerMag.co.uk

Mini CV Job title: Managing director, Nissan Motor (GB).

Lives: West London.

Drives: New Qashqai.

Family: Married.

Education: The University of Strathclyde (economics).

Career: Various UK and European roles in Nissan, including head of Infiniti Europe.

Number of dealers: 204. sales continuing? If so, for how long?

We anticipate more of the same in 2014 – a year very much in line with 2013. However, while much of the growth in 2013 was driven by retail performance, we expect the reverse this year as the corporate sector continues to recover.

Do you think the motor industry needs to change and where should it come from?

Manufacturers need to take a long view and resist the temptation to chase short-term market share.

Inevitably, the result of this activity comes at the expense of their own and retailer profits.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Of most importance today is the shift in consumer buying behaviour. Our retailers need to understand that customers will visit them far less than in the past, with a significant part of their purchase journey happening on the web before they enter the showroom.

This means that we, and our dealers, need to focus even more on delivering an engaging web presence and ensure that we maximise the opportunity when customers visit a dealer. To this end we will be rolling out a new retail dealer concept later this year.

Jeremy

Hicks JLR: An early rise in interest rates is the biggest potential threat looming in 2014 What opportunities do you think 2014 will present?

The improving economic outlook and reduction in unemployment look set to create a more positive sales environment for the whole of the industry.

For Jaguar Land Rover and our direct competitors, the uptake in premium car sales across the sector presents many opportunities.

What do you regard as the biggest threat to the motor industry in 2014?

An early rise in interest rates, which could have the potential to destabilise the recovery.

Are there any reasons to be cheerful in 2014?

Lots! But there are no reasons to be complacent.

Jaguar Land Rover UK had a really great year in 2013 with double-digit growth for both brands but we won’t get carried away – we know that the sectors in which we operate are some of the most fiercely competitive and becoming increasingly so.

What are you most excited about in 2014?

Our products. We will continue to introduce new products and build on the appeal of our current offering. For Jaguar, XF is leading its segment in terms of retail sales and we have also grown XJ’s share of the market. In terms of future product, the media’s reception to the F-Type Coupe has been outstanding and I’m excited to see the reaction of the first customers when they get behind the wheel in March. Land Rover, too, has some surprises ahead and I’m very excited about those, although I can’t go into detail on those just yet! Two product refinements we have announced, though, are Jaguar Land Rover’s first hybrid powertrain (for Range Rover and Range Rover Sport) and a new long wheelbase and superluxurious Autobiography Black version of the Range Rover.

Can you see the current period of strong new car sales continuing? If so, for how long?

The industry has seen good positive recovery but we may not see sales continue to increase at the same rate.

Do you think the motor industry needs to change and where should it come from?

The number one thing that we all need to keep pace with is the continued and exponential

The uptake in premium car sales across the sector presents many opportunities.

Mini CV Job title: Managing Director, Jaguar Land Rover UK. Age: 51.

Lives: North Buckinghamshire.

Drives: Range Rover Sport Supercharged.

Family: Married, three children.

Education: St Peter’s School, York and then the University of Central Lancashire.

Career: Joined Vauxhall in the UK, performing a range of roles. Then spent a short period in automotive consultancy before joining VW Group UK, holding a number of senior roles.

In 2005, became managing director of Audi UK and stayed in that position for six years.

UK managing director at Jaguar Land Rover since November 2011.

Number of dealers: 210 (both Jaguar and Land Rover).

development of digital and the world in which our customers operate. People want a very different type of buying and owning experience, combining the convenience of the web with the benefits of the physical presence that dealerships offer. We are one of a very few categories where customers still like to touch, feel and experience the products before they buy them. That said, there is still plenty more for us to develop in the digital space.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Nothing new from me here; just get the business basics right and focus on putting the customer at the centre of everything you do. I always talk about dealerships as rather like a stool sitting on three legs – new cars, used cars and aftersales. Each is of equal importance – the danger of having any leg a different size than the other is the potential for the stool to become imbalanced and in danger of toppling over.

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FEATURE.

Tim

Zimmerman peugeoT: Optimism that sales will remain strong in retail and fleet What opportunities do you think 2014 will present?

The UK remains one of the bright spots in Europe, and with interest rates set to remain low in 2014 I am optimistic that sales will remain strong in retail and fleet. At Peugeot, we have the first full year for the new Peugeot 2008. Meanwhile, the new 308, launched in January, is winning high praise and in June we launch the 308SW, so huge opportunities lie ahead.

What do you regard as the biggest threat to the motor industry in 2014?

The only threat I see is to those who do not evolve with it. For example, some dealer groups remain obsessed with used vehicles, and while clearly used car sales are a key part of their businesses, the real growth opportunity is in new vehicles. Equally, customer expectations continue to rise and so-so service just won’t cut it any more.

Are there any reasons to be cheerful in 2014?

There is every reason! The market continues to grow along with consumer confidence, and recent strong increases in LCV sales also show that confidence is returning to the business world.

Interest rates should remain low, and at Peugeot we have the best range of cars and vans we have ever had. Our dealer network is profitable and our customer satisfaction levels continue to improve.

Why wouldn’t I be cheerful?

What are you most excited about in 2014?

Having one of the youngest model line-ups on the UK market provides us with a fantastic opportunity to grow our business.

Can you see the current period of strong new car sales continuing? If so, for how long?

The UK market has an established three-year replacement cycle, and low interest rates plus an improving economy should see the market continue its sustainable growth pattern. The market will remain highly competitive in 2014 in both fleet and retail, but with our great new product, clear and consistent marketing, and a healthy and motivated dealer network, I certainly expect Peugeot UK volume to grow.

Do you think the motor industry needs to change and where should it come from? ��| CarDealerMag.co.uk

At Peugeot we have the best range of cars and vans we have ever had.

Mini CV Job title: Managing director, Peugeot UK. Age: 49.

Lives: Stratford-upon-Avon, Warwickshire.

Drives: Peugeot RCZ R. Family: Married, two children.

Education: BA (Hons) business studies, DipM, DipMS. Career: Joined Peugeot Talbot Motor Co as a graduate trainee in 1986 – rose to regional director for Scotland & Northern Ireland in 1995. Between 1998 and 2007, Zimmerman was based in France in various roles. In 2007, he was appointed managing director of Peugeot Netherlands. In 2009, appointed general manager of Dong Feng Peugeot based in Beijing. In October 2011, appointed MD for Peugeot UK. Number of dealers: 229.

Change must be driven by customer demand. In terms of the point of delivery and maintenance of the vehicle, the customer still wants a ‘one-stop shop’ with dedicated and trained brand personnel as long as he or she is getting top-quality products and service at competitive prices. The biggest change is in information gathering and vehicle shortlisting, where the internet and social media are bringing huge changes. We must work hard to give customers easy access to what they need on their tablets and smartphones.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Peugeot dealers have a lot to look forward to in 2014. There is a great opportunity to capitalise on the strong retail demand and to grow local business sales. We have dramatically improved new vehicle profitability for our dealers, and increasing new vehicle volume is the main route to profitable growth.

Tony

Whitehorn hyundaI: Two major model launches are worth getting excited about What opportunities do you think 2014 will present?

New market segments are growing, which gives manufacturers the opportunity to market new and fresh products. The rise of PCP and contract hire is making it easier and more affordable to own a car. (New-gen i10 is a prime example.) There will be new ways of buying cars as consumers continue to utilise smartphones, tablets and other mobile devices more. Growth will be static this year, but for Hyundai specifically we foresee a 4.2 per cent increase in sales to 80,500 for the year over 2013’s figure of 77,500.

What do you regard as the biggest threat to the motor industry in 2014?

Complacency and resistance to the changing consumer environment has the potential to threaten the industry. Many of Hyundai’s dealerships currently utilise digital media to communicate with their customers.

There are good signs that the economy is recovering, which will help build consumer confidence further.

Are there any reasons to be cheerful in 2014?

There are good signs that the economy is recovering, which will help build consumer confidence further. Coupled with low interest rates, owning a car will be more attractive and attainable, especially with PCPs and contract hire making all-inclusive monthly payments more manageable.

What are you most excited about in 2014?

Brand-new products like the New Generation i10 followed by the New Generation i20 towards the latter part of the year. Hyundai’s eagerly-anticipated return to the World Rally Championship promises to be hugely exciting for the brand and fans alike. In addition, being a main sponsor of the FIFA World Cup in Brazil will be a brilliant opportunity for Hyundai to expand its global presence, as will our recently-announced 11-year partnership with Tate Modern.

Can you see the current period of strong new car sales continuing? If so, for how long?

There is still an ongoing demand for new and more efficient vehicles and it is forecast that there will be organic growth in the new car market in 2014. Provided there are no stark changes to interest rates and/or car tax legislation, current levels of growth will continue through to 2015.

Mini CV Job title: President & CEO, Hyundai Motor UK Ltd. Age: 54.

Lives: Reading.

Drives: Hyundai i40 Saloon.

Family: Married, three children.

Education: Cardiff University graduate with BSc (Hons) degree in economics.

Career: Sponsored graduate with Rover Group. Moved to Renault as field sales manager. Joined Toyota in 1989 as training manager then moved to roles in fleet, marketing, sales and finally UK operations director. Appointed managing director, Hyundai Motor UK in 2005 and promoted to current role as president and CEO in 2011.

Number of dealers: 154.

Do you think the motor industry needs to change and where should it come from?

There is always room for improvement in our industry and the focus must be more on customer retention and forming sustainable customer relationships. Furthermore, the motor industry needs to be more receptive to digital opportunities and embrace new platforms to communicate with current and potential buyers.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Building consumer trust should be at the forefront of any dealership operation. Outstanding customer service will be the distinguishing factor because purchasing a car must not be a one-off transaction.

Embracing digital platforms will raise awareness of a particular local dealership, while also ensuring the process of purchasing a car is an experience and will in turn deliver sustained growth for the franchise.

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FEATURE.

Le Etta

Pearce manheim: The industry has to adapt to keep up the pace with online demand What opportunities do you think 2014 will present?

Dealers will remain hungry for used car stock and need solutions which help them identify and buy the right stock for their market. After several years of focus on cost savings, we expect dealers to invest wisely in solutions that are designed specifically to add tangible value through all customer touchpoints within a dealership.

With consumer confidence returning, now is also the time to proactively reconnect with previous customers (before someone else does).

What do you regard as the biggest threat to the motor industry in 2014?

The shortage of good-quality older used vehicles is set to be a problem for a few more years and this will put pressure on dealer margins. Cash and forecourt space needs to be used wisely.

The quality and choice of new vehicles available to consumers now means that competition will be fierce, so there is no room for complacency. Dealers need OEMs to maintain their high levels of support on vehicles to maintain momentum from 2013, especially with the emergence of Chinese and Asian manufacturers with their aggressive pricing and warranty solutions.

Are there any reasons to be cheerful in 2014?

With consecutive quarterly growth rates of 0.8 per cent, it does appear that the UK is on the up and that the motor industry experience in 2013 is not just an anomaly.

What are you most excited about in 2014?

At Manheim we have had an incredible 2013 with record sales of cars through our physical auctions and online channels, and 2014 is carrying on in the same manner. Also in the wholesale environment we will start to see the ‘Dealmaker’ addition to our award-winning Seller Advance product help dealer groups retain the right partexchanges within their franchises, as well as the recent launch of our ‘Manheim Online’ suite of buying channels for dealers.

Can you see the current period of strong new car sales continuing? If so, for how long?

As industry confidence grows then fleet registrations should continue their recovery, but we have to recognise that the traditional company car ��| CarDealerMag.co.uk

Having the right team of people with the right tools is absolutely critical to success.

Mini CV Job title: Sales and operations director, Manheim Retail Services.

Age: 41.

Lives: Manchester.

Drives: BMW. Family: Married, one child.

Education: Advertising, marketing and media BA (Hons) degree.

Career: BT; Austin Reed; Ford Motor Company; Real Time Communications; Manheim. market has changed and many of the customers for the PCP deals are former company car drivers.

Do you think the motor industry needs to change and where should it come from?

As consumer demands move forward more

progressively online, the industry must adapt to keep up the pace. We still have much to learn from service models of other industries, and whether this is about making sure the dealership is more accessible day or night we have to recognise that customers need to feel more valued, so having the right team of people with the right tools is absolutely critical to success.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

As more and more consumers are researching online, understanding their online behaviours and offering more transparency is required in the form of vehicle and dealer reviews, along with comprehensive social media presence. Dealer websites will need to create a ‘one-stop shop’ environment. By really owning every facet of the consumer lifecycle with the right processes and people, dealers can put themselves firmly in the driving seat.

FEATURE.

Ken

Ramirez Renault: The key for 2014 is a continuation of momentum What opportunities do you think 2014 will present?

Plenty for our network as we continue our growth momentum for the Renault and Dacia franchises.

For Renault, in addition to the recently-introduced revisions to the Megane family, we will launch the replacement for Twingo and the all-new Trafic.

Plus, we’ll enjoy a full year’s supply of Clio and Captur crossover. Last year, we were very proud of the most successful launch ever with the Dacia marque. It was the fastest-growing new car brand, reaching a retail market share of 1.4 per cent, and in 2014 we look forward to a full year of the four Dacia models being on sale. As the fastest-growing franchise of 2013, Renault Group (Renault and Dacia) is now back in the top 10 retail franchises in the UK, so we’re looking forward to greater interest from investors and the opportunities this can bring to help us sustain our growth.

A rise in interest rates and tighter lending controls could stifle growth.

What do you regard as the biggest threat to the motor industry in 2014?

Low interest rates and affordable lending have been key factors in maintaining new car demand.

A rise in interest rates and tighter lending controls could stifle growth.

Are there any reasons to be cheerful in 2014?

The UK market bucked the wider European trend of decline in 2013, being the only market, with the exception of Spain, to have grown over the previous year. With three consecutive quarters of GDP growth now achieved, we can be optimistic that the economy is on a steady path to recovery.

We anticipate growth to continue for at least the next five years, as pent-up demand from the crisis period is fulfilled as economic conditions improve.

What are you most excited about in 2014?

The launch of the all-new Trafic is a momentous occasion for us – it replaces an 11-year-old model.

The replacement for Twingo, meanwhile, is our foray into the growing A segment and its penchant for personalisation. But I’m also excited about showing investors just what the Renault Group can achieve with a full year’s sales of new products and, of course, the unique Dacia brand. With new Clio, Captur and 100 per cent electric Zoe, Renault has the freshest B-segment range in the market, and sold almost double our 2012 B-segment volume in the final quad of 2013. ��| CarDealerMag.co.uk

Mini CV Job title: Managing director, Renault and Dacia, UK, Ireland, Malta and Cyprus.

Age: 45.

Lives: London.

Drives: Renault Megane and Twizy.

Family: Married, one child.

Education: Bachelor’s degree in electrical engineering, Georgia Institute of Technology.

Career: Joined Renault in February 2013 from Alliance partner Nissan where he was managing director of Nissan Latin America and the Caribbean, responsible for all of the Nissan and Infiniti brands’ operations in the region, covering 37 countries. Joined Nissan in 2002 following more than 10 years at Motorola’s automotive electronics and telematics communications groups.

Number of dealers: 134.

Can you see the current period of strong new car sales continuing? If so, for how long?

The UK is a highly competitive market place that benefits the consumer. I don’t see that changing this year.

Do you think the motor industry needs to change and where should it come from?

Yes, what’s required is a focus on quality customer service and providing a 21st-century showroom experience. This has to be a combined effort between manufacturers and their dealer partners.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Excellence in customer service. The number of interactions a prospect has with a dealership prior to a sale is minimal. Our first contact has to be perfect every time. We expect a continual focus on business improvement to create sustainable improvements in profitability.

Richard

Hudson BMW: Key investor in the UK is on a solid foundation for growth What opportunities do you think 2014 will present?

We are launching more than 12 new models in the next 12 months. These are new cars that will suit our growing number of retail customers and also our loyal corporate customers – from our largest range of BMW M cars through to our innovative, electric BMW i brand. These new cars will attract new customers to our BMW and Mini brands and new customers into our showrooms.

What do you regard as the biggest threat to the motor industry in 2014?

Three things: customer satisfaction, customer satisfaction, customer satisfaction!

It’s not so much a threat as an opportunity, but the threat comes if you only compare yourself to others in the motor industry, which is why we benchmark ourselves against the best serviceorientated companies outside of the car industry.

Are there any reasons to be cheerful in 2014?

Of course! We have the widest range of models we have ever had, offering more choice plus the latest technology, designs and efficiencies. We have a strong group of dealer partners. We remain a key investor in the UK through our Mini, Rolls-Royce and engine plants, and this positions the group as a large employer in the UK and contributor to the UK economy. And with a steadily improving economy, this puts BMW and Mini on a solid foundation for profitable growth.

What are you most excited about in 2014?

Launching the BMW i3 at the end of last year was a momentous occasion. It is not every day BMW launches a new brand. We’ve just started to deliver the first cars to customers now and it’s great to see more and more customers coming to BMW. In fact, we have the highest proportion of conquest customers approaching us as a result of the new BMW i. The i3 will be joined by the i8 supercar later this year and that is something neither we, nor our competitors, have ever offered before.

Can you see the current period of strong new car sales continuing? If so, for how long?

If you listen to the motor industry analysts, they advise that the peak new car volume for the UK population is around 2.2-2.3 million. However, with many manufacturers pushing volume in

We benchmark ourselves against the best serviceorientated companies outside of the car industry.

Mini CV Job title: Sales director.

Age: 46.

Lives: Northamptonshire.

Drives: BMW 5 Series Gran Turismo.

Family: Wife and three children.

Education: Leeds University.

Career: Previously BMW UK marketing director, ad agency and marketing consultancy.

Number of dealers: 147. the UK with strong offers and support, this could increase further. This is further impacted by conditions in mainland Europe, where demand is weaker and the recovery slower so the UK remains an attractive market. What’s important, though, is profitable and sustainable growth in the UK, so our

focus is on benefiting from the new models we are bringing to the UK and working with our dealers to make sure we have a balanced sales plan.

Do you think the motor industry needs to change and where should it come from?

An intensive focus on customer orientation through products, services and retail experiences is where changes and innovations need to come from.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

It boils down to doing the right things by customers and you will keep them and attract more through an improved reputation. Secondly, grow your profits by giving the best advice and selling the benefits of the latest models with the leading technology. Finally, build and lead the best teams, because it’s dealer staff who look after customers and sell cars.

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FEATURE.

Alastair

MacLeod HPI: Exciting new products are starting to gain traction What opportunities do you think 2014 will present?

Given the success of the new and used car market in 2013, we anticipate economic conditions to remain fairly stable. Consumers will have access to funds through low interest rates, which will see at worst a flat year or at best a small growth. Dealers will continue to consolidate, with larger dealers becoming stronger. Fuel prices and telematics are two key drivers for the market and we anticipate that ‘driving styles’ will continue to moderate as these two elements impact on the market.

What do you regard as the biggest threat to the motor industry in 2014?

Firstly, economic factors driving up interest rates.

Secondly, UK insurance premiums increasing because of recent flooding.

We now have access to an even greater wealth of information about customers and their behaviours.

Are there any reasons to be cheerful in 2014?

Many!

1) Continued market stability/slight growth.

2) Increased demand for better-quality products, creating greater choice for consumers.

3) Continued investment in UK car plants by manufacturers creating jobs and helping to drive our economy.

4) A growing car parc, which requires support and drives revenues in the aftermarket sector.

What are you most excited about in 2014?

Our UK businesses are performing well. The core proposition of both HPI and Audatex continue to set the standard within the market. In addition, within both businesses we have exciting new products, which are starting to gain traction.

For HPI, the Spec Check product is becoming a must-have for dealers when buying and valuing stock, whilst in Audatex, we have launched new products to help bodyshops streamline the estimating process.

Can you see the current period of strong new car sales continuing? If so, for how long?

The performance of last year was exceptional, buoyed by low interest rates and a level of preregistrations. We anticipate that there will be stability in terms of new car registrations, with slight growth at best. Looking to the longer term, there is less certainty. Our estimate is cautious for 2015 and 2016. ��| CarDealerMag.co.uk

Mini CV Job title: Regional MD, Solera UKSA (parent company of HPI and Audatex).

Age: 47 Lives: Crowthorne.

Drives: BMW 5 Series.

Family: Two children.

Education: Electronics Engineering at University of York (1988), MBA at London Business School (1998).

Career: Joined BT as graduate intake manager in 1988, built career in sales and sales management, left in 2000 to start a mobile internet business. Joined Orange in 2001. COO then CEO of EurotaxGlass’s between 2007-2011, joined Solera in March 2012 as regional MD responsible for UK and South Africa.

Do you think the motor industry needs to change and where should it come from?

There are a number of things that the industry should embrace and some of these have been around for some years. The use of information across the sector is poor. We now have access to an even greater wealth of information about customers and their behaviours, held directly by us or available to us through third parties. By using this information smartly we can be more effective in targeting customers at the right time.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

We can’t emphasise enough the power of management information and the use of this data to improve business processes and sales opportunities. Take, for example, lead conversion.

Customers still get away and they shouldn’t. In addition, dealers need to remain focused on improving customer satisfaction.

FEATURE.

��| CarDealerMag.co.uk

PICTURES: MAX EAREY

comment

by JAMES BAGGOTT Our Automotive Influencers feature is unique and one of the only times that the leaders of some of the biggest car manufacturers in the UK get together.

Yes, we know they meet occasionally at the SMMT, but our informal gathering for photographs gives these key leaders the chance to talk shop with no other pressures.

As the MDs, CEOs and presidents of the car companies and key automotive suppliers started arriving at The RAC Club in London

I had to stop and take stock for a moment of the feat we’d pulled off.

Co-ordinating the diaries of these influencers was a nightmare. In fact, we had to can the first date because it simply didn’t work for too many people. But, as they started to file into the grand surroundings of the club on Pall Mall, I was honoured that they’d taken the time out of their busy schedules to come together for Car Dealer Magazine.

CarDealerMag.co.uk | 59

FEATURE.

Paul

Philpott KIA: We operate in one of the world’s most exciting and competitive markets What opportunities do you think 2014 will present?

I am confident that a continuing improvement in consumer confidence and stable economic metrics will lead to at least another 2.2 million UK car market in 2014. Compared to recent history, that’s a pretty substantial opportunity! Those brands with desirable products and great quality and dealers that can really deliver consistently excellent customer service will face many opportunities.

What do you regard as the biggest threat to the motor industry in 2014?

I think you have to look globally to see any really big threats to our industry next year. If China or the US suddenly slowed or the Eurozone caught another cold, then clearly the UK and its car market would suffer. Other than this, I think we will be okay.

At Kia we have real momentum, having grown sales by 150 per cent in just the past six years.

Are there any reasons to be cheerful in 2014?

Of course there are! I am proud and privileged to work in one of the most exciting and competitive markets in the world. At Kia we have real momentum, having grown sales by 150 per cent in just the past six years. And with a rapidly-growing car parc, our dealers should also feel very cheerful.

What are you most excited about in 2014?

Our National Dealer Conference in January to celebrate Kia’s 150 per cent sales growth since 2007 and to present our plans for 2014; the launch of our all-new Soul in April; planning the launch of a fantastic new Sorento; Andy Murray winning the Australian Open sponsored by Kia; Surrey winning this year’s T20 tournament at the Kia Oval; and England winning the Kia-sponsored FIFA World Cup in Brazil (laughs). Should be an exciting year!

Can you see the current period of strong new car sales continuing? If so, for how long?

Yes. Whilst I do not believe we can expect growth on the same scale we witnessed in 2013, I don’t see too many reasons for the market to decline next year. What we need right now is stability and consolidation, and a gradual recovery back to a 2.3m to 2.4m car market within a few years.

Do you think the motor industry needs to change and where should it come from? ��| CarDealerMag.co.uk

Mini CV Job title: President & CEO, Kia Motors (UK) Ltd. Age: 47.

Lives: Dorking, Surrey.

Drives: Kia Sorento.

Family: Married, two children.

Education: Graduated in 1988 with a BSc (Hons) in finance from Loughborough University.

Career: Joined Ford’s graduate development programme in 1988, moved to Toyota in 1997, and then became Kia’s UK MD in 2007. Since then, Paul has been Kia’s European COO based in Frankfurt for three years, and returned to be Kia’s first non-Korean president and CEO in 2012.

Number of dealers: 177.

If customers now really do only visit an average of 1.3 dealers during their car purchase process, as most researchers tell me, then together with our dealers we need to change. The alignment between manufacturers’ online presence, dealers’ online presence and dealers’ physical presence needs to be seamless. Customers should see and feel one brand presence, one level of consistent service, and one fully-integrated process between manufacturer and franchised dealer.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Customer service, retention programmes and building word-of-mouth recommendation. We, the manufacturer, will continue to invest in outstanding new products and increasing brand awareness that will attract new customers to our dealers. Once there, the service that dealers offer to customers will determine future loyalty and therefore sustained growth.

Trevor

Finn

pendragoN: Dealers should focus on retail sales to customers

What opportunities do you think 2014 will present?

The main opportunity in 2014 for us will be to maximise the new car opportunity. The new market will continue to be strong, driven by offers, and this will drive retail demand.

When this demand is satisfied, cars will be pushed into the short cycle and this will then reduce retail demand.

What do you regard as the biggest threat to the motor industry in 2014?

A pick-up in demand in Europe could make this market less attractive to manufacturers.

Are there any reasons to be cheerful in 2014?

Lots. However, I would take the certainty of a repeat of 2013 rather than the prospect of a better 2014.

The new market will continue to be strong, driven by offers.

What are you most excited about in 2014?

Our plans for growth. Pendragon is in a great position to grow and we are looking hard at these opportunities.

Can you see the current period of strong new car sales continuing? If so, for how long?

New cars in 2014 should grow and this may continue into 2015 if the market continues to move to payments financed by the car manufacturers.

Do you think the motor industry needs to change and where should it come from?

The industry is constantly changing, mainly in response to external forces. There does not seem to be a force from within that will change the base business model for car deals or manufacturers.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Dealers should focus on retail sales to customers. Whilst doing this they should try to reduce costs. This seems potentially impossible as greater value to customers usually lifts costs to dealers. To be sustainable in business we have to achieve both.

Mini CV Job title: Chief executive officer, Pendragon.

Lives: Derbyshire Drives: Jaguar E-Type Family: Married, three children Education: Left school at 15. Gained diploma in business management at night school.

Career: Joined East Riding Co-op as an apprentice technician after leaving school.

Went to Alisons BMW in Hull in 1977, eventually becoming general manager.

Appointed MD of Williams Holdings plc Vehicle Division in 1982. Division listed on Stock Exchange in 1989 to become Pendragon. Made CEO. Number of dealerships 250

Customer care is more important than ever AFTER reading the thoughts of our Automotive Influencers, the feeling among the majority would seem to be one of cautious optimism – while taking absolutely nothing for granted.

It doesn’t need pointing out that the last five or six years have been pretty tough for everyone, so to read that so many influencers think there are reasons to be cheerful at the start of 2014 is very welcome.

Another key point that emerges is that it has never been more important to put the customer first. With such a bewildering array of choice in the market, the biggest rewards await the manufacturers and suppliers who stand out from the crowd.

DAVE BROWN CarDealerMag.co.uk | 61

FEATURE.

Nick

Horton supagard: New products and services coming to the market in 2014 What opportunities do you think 2014 will present?

2014 provides the opportunity for organisations to win by being bold. The future will belong to those that have the confidence and credibility to operate in a bold manner. The business world is now so congested that only those who have a significant and dramatically different story will gain market share at an increased pace.

What do you regard as the biggest threat to the motor industry in 2014?

Complacency. The possibility of complacency is increased when an improved performance is delivered. Many organisations will have focused on operating in a specific way to deliver a strong performance in 2013. The key is to not only maintain the consistent delivery of such processes but to also be open to the possibility of enhancing processes with a view to further developing key performance indicators.

My personal view is that there is a vast array of reasons to be cheerful in 2014.

Are there any reasons to be cheerful in 2014?

We all have a choice regarding reasons to be cheerful. We possess the ability to make a conscious decision regarding our level of optimism in 2014. My personal view is that there is a vast array of reasons to be cheerful in 2014.

What are you most excited about in 2014?

We are most excited about the new products and services we will be bringing to market in 2014.

Important investment has been made in product research and sales technology in order to offer current and prospective clients an innovative approach to vehicle-protection systems.

Can you see the current period of strong new car sales continuing? If so, for how long?

December 2013 represented the 22nd consecutive month of growth in new car registrations in the UK. Whilst I see the strong new car sales performance continuing for the foreseeable future, I expect the actual level of growth to stabilise during 2014, most likely to a level of between one per cent and three per cent over the year.

Do you think the motor industry needs to change and where should it come from?

We really don’t have a choice in the matter. Change is a constant and is happening within our industry

Mini CV Job title: Sales director.

Age: 45.

Lives: Nottinghamshire.

Drives: Volvo XC60.

Family: Married, two children.

Education: Studied O-levels at a Nottinghamshire school before undertaking A-levels during the sixth form. Thereafter, completed a National Business Diploma at Clarendon Academy.

Career: Spent the first five years of career with the civil service before joining the motor industry in 1992 as a sales executive.

Promotions to business manager and sales manager followed before moving into the training and development sector. Has represented Supagard as sales director for the past five years.

right now, possibly at a quicker pace than ever before. The source of change should be a combined effort from vehicle manufacturers, franchised retailers and industry suppliers. Those that innovate and embrace change will be the pioneers of our industry.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Making themselves easy to do business with. In the cauldron of online and offline sales activity, being incredibly easy to do business with provides a critical advantage and reduces the level of prospect attrition at the initial inquiry point. For example, what percentage of telephone sales inquiries are able to connect with the correct business representative at the first attempt?

Introducing such metrics and improving associated performance will facilitate growth in 2014 and greater prosperity thereafter.

CarDealerMag.co.uk | 63

FEATURE.

Lance

Bradley MITSUBISHI: The factors that resulted in strong growth in 2013 are still present What opportunities do you think 2014 will present?

For Mitsubishi, 2014 will be another year of dramatic growth. New products and improving exchange rates mean we expect to be the UK’s fastest-growing mainstream brand in 2014, as we were in 2013. Our most significant new product will be Outlander PHEV – our first plug-in hybrid.

This is going to be the first hybrid from any manufacturer that is not only an excellent vehicle in terms of ability, performance, efficiency, etc, but will make financial sense for customers too.

What do you regard as the biggest threat to the motor industry in 2014?

It’s possible that the run-up to the general election could cause some uncertainty over future policy on issues like tax and grant support for ultra-lowemission vehicles. That would be unwelcome.

But overall, I’m expecting 2014 to be another very good year.

model is still marginal in areas where property and

labour costs are high. This is particularly important

‘Our Outlander PHEV is going to change the way people think about hybrid vehicles.’

Are there any reasons to be cheerful in 2014?

Plenty. The UK economy is on the up, consumer confidence is coming back, interest rates remain low and people are starting to spend money again.

What are you most excited about in 2014?

For Mitsubishi the most exciting thing about 2014 is the launch of our Outlander PHEV. This is a vehicle which will challenge the current perception of what a hybrid vehicle should do and how much it should cost. It will change the way people think about ‘alternatively’ fuelled vehicles.

Can you see the current period of strong new car sales continuing? If so, for how long?

I can. January has started well, and the factors which resulted in growth in 2013 are still there.

The one thing that might change is other European economies recovering and some manufacturers taking some focus off the UK and on to places like Germany. But I still think the UK market will grow strongly again this year.

Do you think the motor industry needs to change and where should it come from?

One key issue which needs addressing is the cost of representing a franchise, especially in big cities. At Mitsubishi, we’ve tried to reduce what we consider to be unnecessary costs, but even in a profitable franchise like ours, the traditional dealer ��| CarDealerMag.co.uk

Mini CV Job title: Managing director, Mitsubishi Motors in the UK. Age: 48.

Lives: West Berkshire.

Drives: Mitsubishi Evo FQ-400 & Jaguar E-type.

Family: Wife and step-daughter.

Education: BSc in mechanical engineering from Salford University.

Career: Ford Motor Company from 19882000, Mitsubishi Motors 2000-present (MD since 2009).

Number of dealers: 108.

for selling a vehicle like the Outlander PHEV, where the customers most likely to benefit are those who live in exactly those areas. We will have a solution to this before the end of the year.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Mitsubishi marketing spend will increase 300 per cent in 2014, so our dealers will need to focus on coping with that extra showroom traffic. As part of that, the Outlander PHEV will bring in customers who have never thought of Mitsubishi before, many of them from German brands.

We’ve been working on customer satisfaction for many years. It’s now over 85 per cent, so we’re confident of giving those customers a great experience. The focus needs to be on coping with the extra volume without compromising quality of service.

Scott

Sinclair googlE: Not knowing your return on investment is not an option What opportunities do you think 2014 will present?

The greatest opportunity for dealers lies in mobile to ensure that their presence is fully optimised across new, used and aftersales businesses. Consumers are increasingly exposed to sophisticated mobile experiences in other retail sectors, with those who moved quickest starting to see the benefits. Why ­should their experience with dealers be any different?

What do you regard as the biggest threat to the motor industry in 2014?

The pace of change continues to accelerate and dealers are already some way behind other industries when it comes to digital. There are many who continue to invest in traditional marketing channels that are unable to deliver attributable profit back into the business because that’s what they have always done! In today’s world, flying blind and not knowing your return on investment is just not an option.

Are there any reasons to be cheerful in 2014?

Absolutely. The economy is recovering, there is a continual stream of exciting technology innovation, and car buying is back to pre-­recession levels. I also think it is very exciting that dealers are finally starting to embrace digital as a vital component in their business plan and continue to invest. However, it is critical that digital is not executed in ‘silo’ and is fully integrated into every aspect of the business.

What are you most excited about in 2014?

The continued importance and investment in digital is critical and I’m excited about helping dealers align their marketing and business objectives with today’s digitally-connected consumer. Despite the continued evidence of changing consumer behaviour (growth in mobile, importance of social, importance of video), can we really say that the experience of car buying has changed all that much?

Can you see the current period of strong new car sales continuing? If so, for how long?

As an onlooker to the industry, my sense is that we will see sustained growth in the industry until 2017, ­but I’m reluctant to get too excited so soon after such a difficult couple of years. For me, it’s

Dealers are already some way behind other industries when it comes to digital.

Mini CV Job title: Industry manager, automotive dealers and parts.

Age: 29.

Lives: London.

Drives: ZipCar. Family: Engaged.

Education: BSc Hons (computer science) and post­-graduate in entrepreneurship. important not to become reliant on the flow of cheap credit, and instead ensure that dealerships adapt fast in this digital world and win the moments that matter with customers.

Do you think the motor industry needs to change and where should it come from?

The challenge of ‘who’ is the right person to own the relationship with the customer (manufacturers

or dealer groups) is becoming a digital battleground. Manufacturers want to build brand loyalty, and multi-­franchise dealerships want to be the ‘go to’ destination for every automotive decision throughout a customer’s life. Dealers and manufacturers need to get together and work out a way to be more collaborative and deliver one seamless great experience for customers.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

2014 is set to see the tipping point where use of mobiles and tablets overtakes desktop in vehicle research. For dealers who are not visible across all devices at every stage of the customer research journey (2.7 months for new car buyers and 1.7 months for used car buyers), they will simply fall out of consideration as buyers narrow their choice of make, model and dealership.

This means dealers need to be ‘always on, across all devices, and always engaging’.

CarDealerMag.co.uk | 65

FEATURE.

Jamie

Dixon gforceS: Understanding new finance legislation will cause frustration for some What opportunities do you think 2014 will present?

2014 is set to be a fantastic year for the industry.

For starters, the economy is less fragile – the IMF recently raised predicted growth to 2.4 per cent for 2014. The employment situation is also improving slowly, and where automotive is concerned there is a fantastic choice throughout the industry productset, aligned to optimistic dealer activity. New car sales will continue to be strong, if not quite 2013 levels, helping to keep the industry buoyant.

What do you regard as the biggest threat to the motor industry in 2014?

Complacency – refusal to adapt – is a threat. The industry has an abundance of entrepreneurial spirit, but the tools needed to scale this mind-set through organisations are often missing. Customer expectations are at an all-time high, and marginal improvements in speed of response can result in large gains in conversion and profitability.

UK car production may have hit 1.5 million, but with four out of five being exported there is a global reliance, meaning issues abroad could hit home too.

Are there any reasons to be cheerful in 2014?

Always be positive. Looking at problems, challenges or even questioning the unknown with an enthusiastic mind-set is a key attribute of success. We are living in the information era, so those pioneering and developing the bridge between information, transaction and customer experience will have a fantastic year. On a sporting level, the World Cup will bring the nation its ‘caffeine buzz’ during June – and let’s simply hope the weather behaves itself.

Where automotive is concerned there is a fantastic choice throughout the industry.

Mini CV Job title: Sales director.

Age: 37.

Lives: Kent.

Drives: Porsche.

Family: Partner.

Education: Public.

Career: Director with background in automotive retail.

What are you most excited about in 2014?

I’m excited by the arrival of many new fantastic models from numerous manufacturers. The BIG challenges thrown down by vehicle regulation have made manufacturers develop some incredible products.

for some and ultimately impact on sales figures for those retailers that don’t keep up with it.

Can you see the current period of strong new car sales continuing? If so, for how long?

As long as interest rates and the ability to borrow remain affordable then yes, it should be a relatively good year. However, understanding the new finance legislation will no doubt cause frustration

Do you think the motor industry needs to change and where should it come from?

The industry is resilient, but through the unique view of the industry we have as businesses one customer message is clear: they want more control.

The retail experience doesn’t match the high value

��| CarDealerMag.co.uk

of the product people are buying, online to offline blending is poor, and customer-retailer interaction is inconsistent. Retailers need to make more of the leads they have rather than focusing on increasing volume.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Collaboration between retailers and OEMs with regards to the provision of tools and practices that support retailer businesses will drive success. Truly embracing digital is key to this, but doing so requires an attitude change, driven by training and product implementation, from viewing the web as a marketing tool to using it as a platform through which one-fifth of consumers (and rising) prefer to transact. In summary, those that recognise the days of the ‘counter-based, control sale’ are gone and become the ‘friend and adviser’ of the customer will be set for a strong future.

FEATURE.

Paul

Gordon autotorQ: It’s important to enhance the exciting car-buying process What opportunities do you think 2014 will present?

Technology: Dealers will have the tools and commitment to use digital channels more effectively – especially CRM. Product: The last few years have seen major investment by OEMs and we will see a host of spectacular new cars with awe-inspiring features especially in the electric space.

Economic: A more certain economic climate will create the biggest sales opportunity since the start of the recession.

What do you regard as the biggest threat to the motor industry in 2014?

The changing consumer. Consumers are more knowledgeable and more empowered than ever.

Retailers are either thriving or dying and the car-buying process is not divorced from luxury, high-consideration retailing. There is a real danger in terms of complacency with regard to understanding consumers’ changing needs. If dealers do not offer added value, they will cease to have a reason to exist. This threat is now real, not five years away.

Are there any reasons to be cheerful in 2014?

Survival of the fittest. Those car brands and dealers that have survived the challenges of the last five years are in a good place to thrive. If you are still in business after the famine it is because you have addressed the key business challenges and are well-placed to grow and thrive in the feast.

What are you most excited about in 2014?

Connected Car. Connected Car is a key driver for the Internet of Things. The consumer need to be connected at all times in all places. The internet is a not computer-based browser any more but the means by which we manage our business, our personal life and everything else. The car, as the place we spend on average two hours a day in, is key to this. I’m also excited about electric cars – now an option for people who love cars Can you see the current period of strong new car sales continuing? If so, for how long?

The market will be good for the next three years or at least until the next general election. Confidence is back to 2007 levels, interest rates are going to be low for the medium-term and dealers are

If dealers do not offer added value, they will cease to have a reason to exist.

Mini CV Job title: Managing director, Autotorq.

Age: 46.

Lives: Hertfordshire.

Drives: Audi.

Family: Wife, three children.

Education: Degree from London Business School.

Career: Advertising, followed by digital marketing.

interested in doing deals. The pent-up consumer demand for a new or used car will last for a while at least. However, the government will be anxious about consumer debt so this may impact on spending at some point.

Do you think the motor industry needs to change?

Yes, it needs to be consumer-led not sales-led and take its lead from successful businesses operating in other sectors. In retail we live in the Amazon age, which is the gold standard for retailing.

Dealers need to study and take what works for their business just as John Lewis has. Equally, there is no reason why Apple or Samsung can’t go into the OEM space. If they did, the cars would be beautiful to look at, have great functionality and be loved by consumers.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Dealers must focus on the customer experience in the showroom and online. Buying a car is an exciting process – enhance it – don’t suffocate it.

This impacts on the people who sell, who service and the methodology that sits behind the people.

If your people are doing exactly now what they were doing 10 years ago they are doing something wrong.

CarDealerMag.co.uk | 69

FEATURE.

Bob

Feltham contacT advantage: The temptation to buy new is irresistible What opportunities do you think 2014 will present?

For new car sales the opportunities are strong.

Technology is driving better running costs through MPG and lower tax discs combined with low-cost finance. This makes changing the car into an understandable monthly overhead with a lower risk more attractive than running an older car with poor MPG and perhaps an unknown reliability factor. This can be the perfect reason to opt for new. Manufacturers are delivering the best-ever product to showrooms and the temptation is irresistible for consumers.

Failure to adapt and adopt is the threat for the traditional industry.

What do you regard as the biggest threat to the motor industry in 2014?

Failure to adapt and adopt is the threat for the traditional industry. The industry recognises the failure of many showroom teams to adapt to mobile customer information and shopping habits.

The threat is failing to respond to customers who are developing their car-shopping process faster than the outlets and management.

Are there any reasons to be cheerful in 2014?

Many reasons to be cheerful exist, and not just because of the technological advancements that companies like Contact Advantage provide. Footfall into showrooms has started well in 2014 and our manufacturer hubs monitor this daily. The economy is stable and growing, used car residuals are strong, so customers still exist in good numbers.

What are you most excited about in 2014?

Other than England doing well in Brazil? The most exciting prospect for 2014 is the continued move from conventional trade to the mobile ‘wi-fi’ experience. The fact that sales teams can rotate to ‘open’ the store until 9pm using online tools gives customers who graze and flag interest on dealer group or manufacturer websites quality responses.

All good online businesses have these processes wrapped up. Automotive retail is much the same as any other online offering such as Amazon, John Lewis or Marks & Spencer.

Can you see the current period of strong new car sales continuing? If so, for how long?

The forecast is steady single-digit growth after January for new and used. When will it all end? ��| CarDealerMag.co.uk

Mini CV Job title: Business development director.

Age: 59.

Lives: Milton Keynes.

Drives: BMW 730.

Family: Married.

Education: Educated in Malaya until aged 12. Left school at 16 with 10 O-levels. Later went to Reading University.

Career: Retail with Sears then moved to Daewoo in 1994 as the retail expert and stayed there until the company’s sale to GM. Network performance manager for eight years, selling 34,000 new and 34,000 used cars, grabbing a 1.5 per cent market share. Renault Nissan Consulting, ops director at WLMG and senior consultant at Contact Advantage.

When interest rates rise, the growth will stop as uncertainty creeps into household budgets.

Do you think the motor industry needs to change and where should it come from?

The motor industry needs to develop more than change. Sales and service are still requirements for all customers so change is probably too strong a word. Making sure customers understand the value of quality, long-term relationships and a highly visible existence is key.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Giving teams the tools to perform, coupled with focus on cost control using the latest thinking.

Using smart marketing from and back into mobile devices is part of the first step to keeping up with customers. It also reduces costs and improves speed of action – something customers expect in today’s world.

FEATURE.

David

Shapiro autoprotect: The industry must change due to new regulations What opportunities do you think 2014 will present?

The UK car market has been growing ahead of the general economy, and should that continue during 2014 consumer confidence will follow a similar pattern. However, the customer will remain ‘valueconscious’, which does not mean price exclusively.

The dealer offer needs to be a wider one built around service, stepping beyond the car sale alone.

What do you regard as the biggest threat to the motor industry in 2014?

With the European economy still going through difficult times and the UK car market being second only to Germany, manufacturers will tend to think the UK is doing much better than it actually is.

This could lead to an increase in already highly active pre-registration volumes. As yet, we cannot predict what the forthcoming FCA regulatory review will bring. However, as always, we recommend dealers support Treating Customers Fairly principles to avoid falling foul of regulations however they may change.

If England do well in the World Cup, it should have a positive effect on car sales.

Are there any reasons to be cheerful in 2014?

Yes, plenty! To be candid, there always are; it is a matter of seeking the opportunities. In 2014, those opportunities will, as always, mean embracing change.

What are you most excited about in 2014?

Besides the World Cup? What are the chances of a good performance from England? If they do well it should have a positive effect on car sales.

Workwise, I think the most dynamic area will be in F&I. As mentioned previously, I do believe the FCA regulatory review will cause a significant change in the way products are sold, and at AutoProtect we feel well prepared for this.

Can you see the current period of strong new car sales continuing? If so, for how long?

I think we will see continued growth but a likely reduction in manufacturer support. If the wider EU picks up its sales activity, we will see growth slow. I suspect the bonus structure will also shift in some brands away from volume. If, as suggested, a proportion of increased UK sales last year was due to PPI claim payouts and cheap financing, as these factors cease to have an impact, the rate of growth could slow down.

Mini CV Job title: Chief executive officer.

Age: 66.

Lives: Epping, Essex.

Drives: Mercedes-Benz S500.

Education and career: After leaving school, David went to work for an insurance firm and was placed on a fast-track training programme. He then moved to Lloyd’s of London. In 1982, he set up his own company, which he sold in 1994 to Oriel Group plc, and was appointed as a director of the holding board plus the operating companies. He’s one of the founder shareholders of AutoProtect, formed in 2004.

Do you think the motor industry needs to change and where should it come from?

Yes, it must change. New FCA regulations and an increase in digital usage by consumers make this a certainty. The battle to win consumers’ hearts and minds online will be vital, and this should lead to a different sort of marketing that is focused upon value creation rather than price and include a whole-ownership experience with options such as service plans.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

Re-engineering their businesses around the consumer in a far deeper fashion than ever before.

The focus should be upon making it easier for the customers to buy, rather than selling to them. For many in the industry this will be a sea change.

Supporting this, dealers must work to offer more than just car sales. Customer-relationship management is a central requirement.

CarDealerMag.co.uk | 73

FEATURE.

Anton

Hanley auto networK: More consumers will turn to the internet in 2014 What opportunities do you think 2014 will present?

2014 will bring increased opportunities to run a profitable business. New car sales are being tipped to be anywhere from one per cent up to 10 per cent up on 2013, which means new car registrations are basically getting back to the dizzy heights of the pre-recession boom days. I expect the forecast increase in registration numbers to come from the fleet market, which has not yet truly rebounded since the dip.

What do you regard as the biggest threat to the motor industry in 2014?

My top three threats are: 1) The FSA placing a 2014 deadline on PPI payouts, which would have an impact on retail sales.

2) Europe rebounding quicker and stronger than expected, which would have a supply impact on the UK new car marketplace.

3) Dealers not embracing new technology across the spectrum from sales to back office.

Baby boomers are showing an ever-increasing propensity to use and shop on the web.

Are there any reasons to be cheerful in 2014?

My top three reasons to be cheerful: 1) Strong sales environment.

2) Great new vehicles coming to the market to satisfy consumer demand from a technology and fuel-efficiency perspective.

3) Rebound in the fleet market.

What are you most excited about in 2014?

The fact that more consumers than ever before will use the internet to research and buy their next new car. Baby boomers are showing an ever-increasing propensity to use and shop on the web, while a recent report showed that a third of those under 35 years old said that they would happily buy online, with at least 80 per cent of those stating that they researched online prior to ever setting foot in the dealership. So, increased connectivity and speed of connectivity, paired with an increase in consumer appetite to shop and buy online, equates to a greater opportunity for OEMs and dealers to help inform and sell to car buyers online.

Can you see the current period of strong new car sales continuing? If so, for how long?

Yes, certainly throughout 2014.

Do you think the motor industry needs to change ��| CarDealerMag.co.uk

Mini CV Job title: Managing director.

Age: 31.

Lives: Liverpool and London.

Drives: Press cars.

Family: Partner.

Education: University of Life.

Career: Spent 12 years building The Auto Network. The company works with more than 4,000 dealers.

and where should that change come from?

Certain aspects of the motor industry are starting to change at a considerable rate, such as car retailing. Consumers today want to consume new car information via myriad sources via myriad devices, so it’s vital for car dealers to change in conjunction with consumer research and buying habits so that they do not lose their market position. Change needs to come on the back of market changes, although it needs to come from a position of understanding and belief rather than just a box-ticking exercise.

What should dealers be focusing on to ensure growth and a sustained future in 2014?

The focus should stay the same: revenue, customer service, retain and recruit the best staff, etc. However, the way of achieving these things is changing and the key is to recognise that and adapt and evolve the business to meet those needs. [CD]