SMTA Auto Insight – Issue 12

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The Magazine for Scottish Motor Professionals brought to you by Supported by Incorporating ISSUE 12
:
: CELEBRATING 120 YEARS OF SMTA
STAR WINNER –CD COPLAND
STAR WINNER –YOUR FORD CENTRE
MEMBER PROFILE
MEMBER PROFILE
CAR
CAR

OUR MOT QUALITY MANAGEMENT SERVICES ARE INDUSTRY PROVEN

A COMPREHENSIVE SUPPORT PACKAGE FOR OWNERS & MANAGERS OF MOT TESTING STATIONS

MAINTAIN AE STANDARDS CERTIFICATE PROVIDED COMPETITIVE PRICING

OVER 800 QMS’ PER ANNUM EXCEEDS DVSA STANDARDS

Why use SMTA QMS?

Currently we carry out over 800 QMS surveys per annum! Participation in the QMS programme and adhering to its standards should also substantially reduce the likelihood for DVSA to consider taking disciplinary action against a Vehicle Testing Station. However, if an incident necessitating this was to occur, then evidence of measures taken by Authorised Examiners to apply standards that exceed DVSA’s minimum standards would be taken into consideration and could lead to a reduction in the severity of any sanction imposed. SMTA members also benefit from free representation and appeals assistance, others will charge you additional costs for this service.

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Ask about our QMS service today! E: david.innes@smta.co.uk T: 0778 9264 228
1. In-depth examination of all aspects of the MOT scheme 2. Structured to suit individual business needs 3. Assist Authorised Examiners to maintain DVSA standards 4. QMS site assessments exceeds minimum requirements as set by DVSA for quality control 5. Protect your income for less than the price of one MOT per month

SMTA is proud to support:

COX AUTOMOTIVE

Positive outlook for 2023, but challenges remain

SMTA & DVSA MOT SEMINARS

6 Seminars in March 2023 - don’t miss out!

MEMBER PROFILE

CAR Star Winner CD Copland

THOMSON COOPER

Pay rises amidst the cost of living crisis

LOW EMISSION ZONES SCOTLAND

Glasgow start date is 1st June 2023

FEMALES IN FOCUS 2023

Full details on how to book a ticket

MEMBER PROFILE

If you would like to take advantage of advertising in Auto Insight which reaches all SMTA members and beyond to approximately 5,000 sites across Scotland, or have an article you would like to discuss for publication contact:

Wendy Hennessy Email: wendy.hennessy@smta.co.uk

For details of all up and coming SMTA events please contact:

Karen Thompson, Events & Media Manager Tel: 0131 331 5510 or Email: karen.thompson@smta.co.uk

At the time of writing this piece Ford Motor Company have just announced their intentions to reduce their UK workforce by 1,300 people within three years. The impacts of such a move will be felt across the motor industry as I doubt, these will be the last, we are all having to adjust and change from what has been a relatively stable business process in automotive for many years.

In Glasgow we are about to experience the first of Scotland’s Low Emission Zones as “Glasgow goes green” in June. We will continue to challenge the Scottish Government and local councils on some of their green policies which, whilst commendable in intent, can have long lasting detrimental impacts that are corrosive to our sector. The potential of the pace of these changes and clear lack of understanding or consideration to businesses impacted by these policies have been highlighted on numerous occasions, regrettably the audiences often engage selective hearing, such challenges exist in politics.

The drive to electrification in 2030 brings opportunities of that there is no doubt, as we see more and more electric vehicles appearing on our roads, new vehicle supply is starting to show some signs of recovery and the repair market will grow accordingly. We will launch our delayed AUTOESURE programme in April to assist the development of the aftersales for our members. The used EV market has now entered a period of price realignment with several brands experiencing major drops, could be a long and difficult year for the immature market in used EVs.

The front cover has our celebration logo in recognition of the SMTA’s 120th anniversary! We are very proud of this achievement and have a full calendar of events planned culminating in our Annual Dinner in October. In future editions of this magazine we will travel through time from 1903 up to date using motoring advertisements from each decade. Some are interesting, some are funny and some, created in less politically correct times, will make your toes curl, hopefully all will entertain!

Please remember this is your magazine, contributions are always welcome subject to our right to edit content.

Finally, this year’s CAR Star Awards are going to be really special given the 120-year celebrations, get you entry in early, it’s so easy, if you want advice or guidance get in touch with Karen Thompson or any of our Management team.

Kind regards

www.smta.co.uk

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WELCOME... Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS SMTA Ltd Tel: 0131 331 5510 | Scotsure MBI Ltd Tel: 0131 331 5512
CONTENTS
CAR Star Winner Your Ford Centre TECH INSIGHT Opus IVS & TMD Friction provide technical advice 4 8 12 18 22 26 30 36

POSITIVE OUTLOOK FOR 2023, BUT SIGNIFICANT CHALLENGES REMAIN

Philip Nothard, Insight & Strategy Director for Cox Automotive, provides insight into what the year ahead could hold for UK automotive and reveals the company’s latest new and used forecasts.

As with any new year, our minds are drawn to the days and months ahead, and we find ourselves asking the same questions: What will 2023 have in store for the automotive industry? Will economic conditions improve? When will more new supply enter the market?

While those questions are more of an indication of the particular challenges we face today, as we all know, every new year brings a renewed sense of optimism.

Fortunately, this time round, there is cause for optimism. As set out in our latest issue of AutoFocus, the end of 2022 saw an improvement in new vehicle supply and the early signs are that this will only improve throughout the coming year, outstripping many forecasts. And while economic conditions are far from good, inflation levels are forecast to improve throughout the year, albeit still ahead of Bank of England targets. Could this mean an improvement in consumer and business confidence? Only time will tell.

The electrification of our vehicle parc also continues at pace. Last year saw the largest percentage of battery electric and plug-in hybrid vehicles sold to date in the UK and the biggest year-on-year growth in registrations. Consumer behaviours are shifting, and manufacturer and fleet operator strategies are following suit. There have been casualties along the way, particularly in the small hatchback segment where once popular models are being discontinued, most notably the Ford Fiesta. Where established manufacturers leave, we’re seeing new Chinese brands begin to fill their space and find a footing in the European market.

OPTIMISM AS NEW CAR PRODUCTION IMPROVES

More new cars rolling off manufacturer production lines can only be a good thing and is needed to reduce volatility in the market, but that it’s finally happening just as the cost-of-living crisis takes hold is less than ideal. While inflation levels are predicted to improve this year, they will likely remain above the Bank of

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MARKET

England 2% target until 2025, meaning a prolonged period of reduced consumer appetite.

We still have some way to go until production volumes are what could be considered normal. The latest Global Light Vehicle Production Summary from S&P Global indicates that it will be 2025 before global production volumes surpass 90 million again. For Europe, it’ll be at least 2028 before we will exceed 18 million again. We mustn’t forget that approximately 46 million fewer new cars have been produced globally in the last three years, resulting in a loss of more than 10 million registrations across the big five European markets. The UK alone has lost 2.6 million registrations. These are vehicles the used market will never see, whatever progress manufacturers make in increasing volumes.

Amidst this backdrop, the standout performer in terms of registrations in 2022 was clearly the electric vehicle sector, with more than one-fifth of all registrations in the UK being plug-in vehicles. This performance demonstrates

manufacturers’ continual investment and determination to prioritise low and zero-emission vehicles following government legislation, as well as the public’s shifting attitudes towards cleaner motoring.

A side effect of the transition to hybrid and EV is that manufacturers are increasingly culling the number of models and derivatives, reducing customer choice further still.

We are also now clearly seeing an appetite from Chinese brands to enter both the UK and European markets. In the past, consumers have been open-minded about adopting new operators as they’ve entered the market, so there’s no reason to believe the same won’t be true of Chinese car brands. The timing couldn’t be better for them as established OEMs step away from affordable but ultimately unprofitable legacy models. Ford’s decision to cease production of its long-term best-selling Fiesta model may be the highest profile casualty but it’s just one example. This will leave a void to fill as people still need small, cheaper cars.

NEW CAR REGISTRATION FORECASTS

Cox Automotive has once again adjusted its new car registration forecasts in line with the market factors described in this article. Our forecasts are broken up into three scenarios – upside, baseline, and downside.

The forecast predicts an improvement in registrations throughout the year, but it relies on a continual increase in new vehicle production throughout 2023 as well as inflation levels falling further.

MORE AND MORE CONSUMERS ARE SWITCHING TO USED VEHICLES

For a variety of reasons, more consumers than ever are choosing to switch to a used vehicle from new. Some will be motivated by cost, and others will be put off by long lead times or restricted choice. However, which used vehicle that will be in terms of affordability, driver requirements and zoning access needs are yet to be understood. It stands to reason that the dominant influence today is the cost-of-living and energy crisis, and this will likely impact the EV market the most. Despite EVs now becoming a common sight on our roads it remains the case that EVs are more expensive than their petrol or diesel counterparts. For many potential buyers, there are genuine concerns about the true cost of running an EV now energy prices have risen.

Meanwhile, increased demand from both consumers and fleets, together with the need to progress towards long-term production targets, means most manufacturers have shifted their focus to EVs, so we’re seeing fewer new ICE vehicles available to buy and therefore registered. As a result, there will be an inevitable impact on the used market in time.

There is, of course, now a greater proportion of EVs entering the used

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Actual Forecast 5 year average Forecast range 100,000 200,000 300,000 400,000 500,000 Jan-2022 Mar-2022 May-2022 Jul-2022 Sep-2022 Nov-2022 Jan-2023 Mar-2023 May-2023 Jul-2023 Sep-2023 Nov-2023 Jan-2024 New car registrations NEW CAR FORECASTS

market, and we’re starting to build a picture on appetite from dealers and consumers and residual values. What is already clear, however, is there’s significant work needed from all operators within the sector, including governments, not just on infrastructure but to increase the levels of confidence, education, and appetite for ownership of pre-owned electric vehicles.

USED CAR VALUES DROPPING

There is increasing caution around residual values of EVs, resulting in above-market depreciation movements on those models and derivatives either in significant oversupply compared to market demand or not on a buyer shopping list. As a result, dealers are wary of the risk of stocking vehicles that may take a while to sell.

As some leasing companies review strategies for their EV fleets, others may choose to delay that transition

due to uncertainty. But, as we have observed over the decades with combustion engines, given time, the supply, demand, and residual value uncertainties will settle and find their place in the market.

What is clear is that the price acceleration and heights experienced throughout 2021 and early 2022 have begun to ease and in some cases, show significant signs of depreciation.

2022 closed with a -9.4% movement in values at 3yr/60k, and 2023 begins with a further -1.5% downward movement at 3yr/60k, marginally ahead of the seasonal average of -0.9% and the 5-year average of -1.2%. Although December could be described as a typical seasonal finish, the general feedback from across the sector is mixed, and it felt more challenging than November.

However, the focus is clearly on Q1 and what’s in store regarding optimism and the subdued economic outlook. With consumer confidence

and demand under pressure, there are signs of weakness in margins appearing as overage product starts to appear. But overall, retail prices are holding as supply volumes remain constrained. In addition, there are signs that new vehicle supplies are increasing, albeit coming at a time when order banks and demand are easing, which is resulting in tactical registration activities and discounts appearing.

USED CAR TRANSACTION FORECAST

Building on recent used car figures, the market factors described in this article, and in line with previous forecasts, Cox Automotive has also adjusted its used car registration forecasts.

MORE INSIGHT FROM COX AUTOMOTIVE

At Cox Automotive, we are firm believers that businesses must be well informed of the market dynamics in order to make the best decisions for the future. That’s why we’re committed to bringing you the insight you need to make better business decisions through the likes of our annual Insight Report and our quarterly AutoFocus

To keep up to date with the latest Cox Automotive insight, visit coxautoinc.eu/content

6 WWW.SMTA.CO.UK MARKET INSIGHT Actual Forecast 5 year average Forecast range 0 200,000 400,000 600,000 800,000 Jan-2022 Mar-2022 May-2022 Jul-2022 Sep-2022 Nov-2022 Jan-2023 Mar-2023 May-2023 Jul-2023 Sep-2023 Nov-2023 Jan-2024 Used car transactions USED CAR FORECASTS

WE DID IT AGAIN IN 2022

THANKS TO YOU!

t one, but th all very proud of.

Our customers voted First Response Finance as the ‘Best Car Finance Provider’ in the Consumer Credit Awards 2022 - for the second consecutive year. In addition to that, we also won the prestigious ‘Firm of the Year’ award!

The second recognition came from our dealer partners, who voted us ‘Finance Provider of the Year (Sub-Prime)’ in the Car Dealer Power Awards. We are honoured to have won this award 8 times!

Vans, cars, motorbikes - it doesn't matter what type of vehicle we’re financing, our award-winning service remains the same.

First Response Finance Ltd, 5 Regan Way, Chetwynd Business Park, Chilwell, Nottingham, NG9 6RZ. Authorised & Regulated by the Financial Conduct Authority. Registered in England No. 03560611.

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MOT JOINT SEMINARS 2023

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Tuesday 21st March, Best Western Invercarse Hotel, Dundee, DD2 1PG

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EDINBURGH

Wednesday 29th March

GTG, Lochend Ind. Estate, Newbridge EH28 8PL

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Seminars start at 6pm with refreshments and light buffet included in the ticket price

PLACES ARE LIMITED - BOOK YOUR TICKETS NOW! BOOK ONLINE AT BIT.LY/MOT-SEMINARS OR SCAN THE QR CODE WITH A

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Call now on 0845 205 55 16 or visit www.viking.co.uk Glasgow • Edinburgh • Preston • Liverpool • Manchester • Desborough • Tonbridge Find us on:
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GES COMPETITION WINNERS

The five winners of issue 11’s GES competition were:

Hamish Clark (pictured left) –Clarks Maintenance Engineering Ltd., West End Garage, Nairn

Andrew Hepburn

Castleton Motors, Auchterarder

Carol Alexander

Argyll Garage, Huntly

Ryan Dougan

RW Dougan, Isle of Skye

Helen McPhee

Elgin Truck & Van Centre, Elgin

The winners each won a Rechargeable Compact Floodlight by correctly answering that “The MOT was introduced in 1960”.

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CD COPLAND, MONIFIETH

SMTA Tell us about your work in your local community?

CC Last year we handed over a cheque for £680 to Monifieth Befrienders (see photo), took part in a Royal Enfield One Ride event that we held at the garage. We raise money for Poppy Scotland on a daily basis through the collection box, we also have a second collection box that we give to the local Royal British Legion to help towards the local foodbanks etc.

SMTA What’s one of the highlights of your community activity over the years?

Callum The main highlight is the smile it puts of people’s faces when we did the Royal Enfield event and did a ride out thought the local towns and villages to raise awareness, the smiles and waves from everybody knowing we were doing what we enjoy but also giving back at same time was a great feeling.

SMTA What does it mean to your business to win one of our Community Activity Recognition Awards?

Callum It has given us a major boost knowing that what we do is helping and that we are here to help,  whether it is to hold these types of events and that we have installed a Defibrillator at front of garage that we are all trained to use.

SMTA What do you think it means to your local community to see local businesses fundraising, donating etc?

Callum The response from the local community is that they are delighted and overwhelmed with what we do to help as it’s not always about taking but very much giving back and that it is being kept within the Dundee and Angus area, helping exactly where it is needed.

SMTA SMTA is keen to show that our members are not just garage businesses but many of our members also play a huge part in the community. What inspires you to be so active in your community?

Callum What inspires me is that, I personally have been in a situation where I have needed help years ago and it was through the local Legion and that the members were able to help me. I’ve always said I would pay it forward as we all never know when or if we would ever need help ourselves, and local businesses helping does make such a difference to achieve these happy outcomes.

SMTA Can you tell our readers a bit about your garage?

Callum Owning my own garage has always been a dream of mine and never

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SMTA talks to owner Callum Copland
MEMBER PROFILE
CARET-UP Above, passing  over the cheque to Monifeith Befriendrs from our event

Main Image shows the refresh we did to front of building to clean it up as no one realised that behind carwash was the garage

thought it would be possible. I was given the opportunity and after lots of head scratching and talking, my wife and I decided to take the opportunity to go for it and I resigned from my job. The scariest part was knowing that now I’m responsible for making my own wage!

I took the decision to employ an apprentice from day one and as I’m getting things sorted out and getting ready to finally open was when Covid lock down was announced! - talk about an extra blow and worry, but thankfully the local residents were fantastic with us and while refurbing the workshop and working away (many late nights involved )  with the help of good friends when it was safe to do so, we have been building on the business with drive and determination. We have become successful in a short space of time that we now have another two members of staff and my wife does the office and administration side after giving up her job in care.

SMTA How does your SMTA / Scotsure membership help?

Callum SMTA membership keeps us up to date with progress within the motor industry. Also, a fantastic source of deals for members. The MOT QMS is a fantastic addition to help me keep to the required standards and maintain that standard. The staff are very approachable and always on hand to answer any queries. We are going to be taking on a young female apprentice soon and will be contacting the SMTA regarding this.

SMTA What are you plans for the future?

Callum Our plans are to keep building on what we have achieved so far and to expand the business  as a place where we currently cover servicing / mots etc . We have two members of staff going to college to do EV training  and mental health awareness training . We are looking to expand the motorbike and trike servicing side with two ramps especially for the motorbike side of things and further into the future we have plans to opening a shop with

consumables etc for cars / bikes

SMTA What’s the key to your garage’s success?

Callum We pride ourselves on being honest and up front with every customer. If there’s a job we are unsure of or don’t have equipment for we will always look for a way we can help or put them in touch with other local business that can do that for them.

We always welcome everyone with a warm welcome with friendly happy faces and friendly banter, we like to listen and discuss with our customers what they require done and discuss the best option that are within their budget.

SMTA What is the biggest challenge as a business?

Callum The biggest challenge is keeping customers happy and keeping them coming back for continued service and recommendations from them and their friends, and keeping costs down as much as possible, what with today’s costs of living we want to help give customers good value for money.

SMTA What drives you?

Callum My wife says stubbornness lol! My determination to provide a service to our customers that I would expect to receive myself and to continue with, not just my job, but my passion and to pass that on to our staff and customers past, present and future.

SMTA What’s the most important thing you’ve learned in your career, and how have you made use of it?

Callum The most important thing I have learned is that you have to have a passion and love for the job as it shows in your quality of work and enthusiasm

We are constantly looking forward and working with Dundee and Angus College to with what courses we can put the staff on to help build their confidence and support the business too.

CARET-UP Above is a young lady that came in to us for work experience  and loved her week with us that much so that she will be coming into the trade this year as our new apprentice.

CARET-UP Above is the refresh we did to front of building to clean it up as no one realised that behind carwash was the garage

I

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CARET-LEFT
TRADING co Association www.easityre.com easityre Dundee Smeaton Road West Gourdie Industrial Estate Dundee DD2 4UT Freephone: 0800 2800 114 Delivering tyres to the Scottish Motor Trade If you are in the motor trade why not use the easityre option. Freephone 0800 085 5515 Glenrothes or 0800 2800 114 Dundee Easityre is an independent tyre company, selling and distributing tyres to the Motor Trade We operate a fleet of vans making regular deliveries throughout Scotland. Operating from two depots, one in Glenrothes e and the other in Dundee W ange of ompetiti ed ca and 4x4 ty anging f y b ough a whole sui emium and manu easityre Glenrothes 2-3 Blackwood Road Eastfield Industrial Estate Glenrothes Fife KY7 4NP Freephone: 0800 085 5515 If you are in the Motor Trade Why not use the easity optio ARTNERS cottish Motor Trade Fif Tayside We stock a full r competitively priced car, van tyres, r rom economy brands through suite of mid to premium brand facturers. t easityre tion?

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WHAT IS COMPLIANCE OVERSIGHT?

• Are YOU achieving expected results?

• Do YOUR finance or insurance products represent good value for money and

• Is YOUR firm in compliance with applicable policies, laws, regulations, and ethical standards?

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ADESA UK INTEGRATES INTO ADESA EUROPE’S CONSOLIDATED PLATFORM

2023 brings a brand-new beginning for ADESA! The online auction company for the motor trade has incorporated its UK platform ADESA UPSTREAM and German platform ADESA GWListe into one European platform at adesa.eu.

ONE PLACE: ADESA.EU

‘All the action is now happening in one place’, Johan Meyssen, CEO at ADESA Europe, announces. ‘Our customers can now find the entire range of vehicles from ADESA UPSTREAM and ADESA GWListe on one single, integrated European platform at adesa.eu. With more than 4,000 vehicles auctioned every day and over 100,000 registered dealers ready to trade at adesa.eu, we offer unparalleled exposure and attract the best possible prices. Plus, our UK and German customers are still able to enjoy a country-specific experience thanks to customisable filters’.

Jonathan Holland, Managing Director at ADESA UK: ‘With the integration, UK customers now have immediate access to proven technology and applications already largely enjoyed by ADESA Europe customers.’

Why this integration?

ADESA Europe wants to offer a better user experience for all customers in Europe who use the ADESA platform to buy or sell cars, whether they’re from the UK or continental Europe.

Are you buying or selling used stock? Contact us to find out more about how ADESA UK can help.

ADESA Scotland - 07801 383804 / 07826 527510

ADESA UK - 0344 2255 477

Email - sales@adesa.co.uk

ABOUT ADESA UK

ADESA UK, a subsidiary of KAR

Global, is a specialist online vehicle remarketing provider for OEMs, fleet and leasing companies and dealers, using a combination of industry expertise and cutting-edge digital technology to transform the way used vehicles are bought, sold and processed.

ABOUT ADESA EUROPE

ADESA Europe NV, based in Belgium, is a business unit of global vehicle remarketing and technology solutions provider KAR Global (NYSE: KAR). With sales operations in Belgium, France, Germany, Italy, the Netherlands and Spain, ADESA Europe seamlessly connects OEMs, fleet owners, wholesalers and dealers with buyers in more than 50 countries across Europe through its robust online wholesale vehicle auction marketplace, www.adesa.eu.

ADVERTORIAL 17 WWW.SMTA.CO.UK

Are you a Company Director? If the answer is yes, and someone were to ask you to explain your legal responsibilities as a director of a limited company, would you be able to answer? We often encounter situations where people accept the position of Director without appreciating that being appointed as a director comes with legal responsibilities.

A company works on the basis of two groups of people working together, its shareholders and its directors. While shareholders own the company, the directors are responsible for making the strategic and operational decisions of the company. Limited companies in the UK must have at least one director aged 16 or above. Directors have specific legal duties, and if a director fails to perform these, penalties and fines can be enforced.

Under the Companies Act 2006, there are seven core statutory duties that a director must perform.

THE COMPANY’S CONSTITUTION

You must follow the company’s constitution and its articles of association. These are written rules about running the company, agreed upon by the shareholders and directors. The constitution sets out what powers you have as a director and the purpose of those powers.

DIRECTORS’ RESPONSIBILITIES

PROMOTE THE SUCCESS OF THE COMPANY

You must act in the company’s best interests to promote its success. You must consider the:

y consequences of decisions, including the long term

y interests of employees

y need to support business relationships with suppliers, customers, and others

y impact of the company’s operations on the community and environment

y company’s reputation for high standards of business conduct

y need to act fairly to all members of the company

If the company were to become insolvent, your responsibilities as director will apply to the creditors, instead of the company.

MARKET INSIGHT
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USE INDEPENDENT JUDGMENT

You must not allow other people to control your powers as a director. You can accept advice, but you must use your own judgment to make final decisions.

EXERCISE REASONABLE CARE, SKILL AND DILIGENCE

You must perform to the best of your ability. The more qualified or experienced you are, the greater the standard expected of you. You must use any relevant qualifications, knowledge, skill or experience you have.

AVOID CONFLICTS OF INTEREST

You must avoid situations where your loyalties might be divided. You should consider the positions and interests of your family, to avoid possible conflicts. You should tell other directors and members about any possible conflict of interest, and follow any process set out in the company’s articles of

RESPONSIBILITIES

association. This duty continues to apply if you are no longer a director. You must not take advantage of any property, information or opportunity you became aware of as a director.

THIRD-PARTY BENEFITS

You must not accept benefits from a third party that are offered to you because you are a director. This could cause a conflict of interest. The company may allow you to accept benefits like reasonable corporate hospitality if it is clear there is no conflict of interest.

INTERESTS IN A TRANSACTION

You must tell the other directors and members if you might personally benefit

from a transaction the company makes. For example, if the company plans to enter a contract with a business owned by a member of your family.

These duties will still apply even if:

y you are not active in your role as director

y someone else tells you what to do

y you act as a director but have not been formally appointed

y you control a board of directors without being on it

OTHER RESPONSIBILITIES

As well as the above statutory responsibilities, there are other responsibilities that directors have to undertake to ensure the smooth running and growth of the business. These include:

Keeping company records – which must include up-to-date records about the company and its financial transactions.

These will also include:

y Statutory registers of shareholders, directors and company secretaries

y Accounting and finance records, and preparation and filing of the annual statutory accounts at Companies House

y Preparation and filing of company tax returns

y Resolution and minutes of meetings

y Stock transfer forms and share certificates

Minutes of board meetings must be kept for ten years as these provide a record of the board’s decision-making process. This can be particularly important if the evidence is required later to confirm that the directors’ responsibilities were fulfilled in relation to any crucial decisions which were made.

In practice we often find that in owner managed businesses minutes of meetings are not well maintained.

COMPANY CHANGES

Over time changes may occur in the company. The directors are responsible for notifying any changes to Companies House. These can include:

A change of registered office address, change of company name, change of the location of statutory records, issue of shares, change of articles of association, etc.

COMPLIANCE WITH LEGISLATION

There are also regulations and legislation that must be considered when running a company including employment law, consumer rights, health and safety laws, trade descriptions, etc. Directors’ responsibilities include ensuring these are complied with.

Directors must also ensure that equal consideration is given to all shareholders. The articles of association will usually outline and include protections to ensure minority shareholders are included in the decision-making process and their interests are considered.

THINK BEFORE BECOMING A DIRECTOR

The role of a director involves many responsibilities and ultimately a breach by a director of their legal duties exposes them to possible legal action. When setting up a company or being invited to become a director, it is always advisable to seek reliable legal and financial advice. That way you can be sure to comply with all the legislation to run the company and act in the capacity of a director, legally, and as effectively and efficiently as possible.

Andrew Croxford is the Senior Partner in Thomson Cooper with offices in Dunfermline and Edinburgh. He heads up their audit and corporate finance departments and acts as auditor and business adviser to many companies operating in the automotive sector. www.thomsoncooper.com

19 WWW.SMTA.CO.UK

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DON’T FORGET TO BOOK YOUR MOT TRAINING & ASSESSMENT FOR 2022/23

The SMTA in conjunction with the IMI continues to provide availability of online learning and examination for MOT Testers for DVSA's 2022/23 training year.

YOUR TRAINING AND

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To book please email accounts@smta.co.uk

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(Once payment received you will receive a code and instructions to complete this online)

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LOW EMISSION ZONES (LEZS) SCOTLAND

Low Emission Zones (LEZs) are designed to improve air quality and were introduced across Aberdeen, Dundee, Edinburgh and Glasgow on 31 May 2022. Planning continues at a national and local authority level.

Local grace periods now apply until enforcement begins. In Glasgow, the LEZ already applies to buses. FOR OTHER VEHICLE TYPES, ENFORCEMENT WILL START ON 1 JUNE 2023 (1 June 2024 for residents within the zone)

y Dundee will start enforcement on 30 May 2024

y Aberdeen will start enforcement on 1 June 2024

y Edinburgh will start enforcement on 1 June 2024

The Scottish Government will continue to develop support and funding to help people and businesses meet LEZ requirements.

WHAT ARE LOW EMISSION ZONES?

Low Emission Zones set an environmental limit on certain city roads, restricting access for the most polluting vehicles to improve air quality. This helps protect public health within our cities, making them more attractive places in which to live, work and to visit.

Vehicles that do not meet the emission standards set for a Low Emission Zone will not be able to drive within the zone. A penalty charge will be payable by the vehicle’s registered keeper when a non-compliant vehicle enters the LEZ.

Mopeds and motorcycles are not included in the current LEZ requirements for Aberdeen, Dundee, Edinburgh and Glasgow, so will not have to meet the emission standards. Electric vehicles will not be subject to any restrictions.

HOW DO THEY WORK?

Scotland’s Low Emission Zones will only allow access to vehicles which meet minimum emission standards or meet the exemption criteria.

The confirmed minimum criteria for vehicles to access a Low Emission Zone is:

Euro 4 for petrol cars and vans (generally vehicles registered from 2006*)

Euro 6 for diesel cars and vans (generally vehicles registered from September 2015*)

Euro VI for buses, coaches and HGVs (generally vehicles registered from January 2013*)

*These dates are only indicative - please check with your vehicle manual or the manufacturer to confirm.

Vehicles exempt from LEZ entry requirements

Vehicles that are exempt from the LEZ requirements (and therefore will not receive a penalty charge if they drive in the zone and are not compliant) include:

y Vehicles for disabled persons (including Blue Badge holders)

y Police, Fire, Ambulance and other emergency service vehicles

y Military vehicles

y Historic vehicles

y Showman’s vehicles

22 WWW.SMTA.CO.UK

GLASGOW LOW EMISSION ZONE

LEZ Phase 1- Introduced to local bus services: 2018

LEZ Phase 2 - Introduced to all vehicles: May 2022

A one-year grace period (during which enforcement of the LEZ will not occur) will be in place for all vehicle types. This will allow people to check their vehicle is LEZ compliant and have time to consider any changes they need to make.

For residents in the zone, there is a further grace period and enforcement will start on 1 June 2024.

ENFORCEMENT: 1 JUNE 2023 (1 June 2024 for residents within the LEZ)

Contact: LEZ@glasgow.gov.uk

LEZ SUPPORT FUND FOR BUSINESSES

Energy Saving Trust is offering micro businesses and sole traders, with an operating site within 20km of Scotland’s low emission zones, a grant towards the safe disposal of non-compliant vehicles.

Grants of £2,000 are available to micro businesses with nine or fewer full-time employees and sole traders. Successful applicants will be required to dispose of their vehicle at a Scottish authorised treatment facility. A grant offer must be in place prior to vehicle disposal.

If you wish to apply for this funding, you MUST NOT scrap your vehicle until you have received a grant offer letter from Energy Saving Trust confirming funding.

If you would like additional information on the scheme, please email: LEZfund@est.org.uk or visit www. energysavingtrust.org.uk

23 WWW.SMTA.CO.UK

WHAT TO EXPECT FROM EMPLOYMENT LAW IN 2023

As 2023 starts to gather momentum, we take this opportunity to look forward to some of the anticipated developments in UK employment law in the coming year.

Strikes (Minimum Service Levels) Bill – The Government last month introduced a Bill before Parliament allowing employers to require some trade union members to continue working during strike action. The Bill is designed to ensure essential public services continue during strikes and is expected to cover transport services, the NHS, education, fire and rescue, border security and nuclear decommissioning.

Statutory Code of Practice on Dismissal and Re-Engagement

The Government is expected to issue a draft statutory code on dismissal and re-engagement in early 2023, requiring employers to consult with employees when proposing changes to terms and conditions of employment.

Retained EU Law – As things presently stand, all retained EU law will be revoked on 31 December 2023 unless a positive decision is made to retain particular laws. This could potentially affect many basic employment rights which are derived from EU law, including minimum annual holiday entitlement, maximum hours of work per week, employee protections under TUPE and protections for agency workers,

part-time workers and fixed term workers.

Rights Originally Proposed in the Employment Bill – The Queen’s Speech in December 2019 had announced that the Government was planning to introduce a new Employment Bill before Parliament. This now seems unlikely, however a number of the measures that were intended to be included in the Bill are now proceeding as Government-backed Private Members’ Bills. The Private Members’ Bills are:

y Carer’s Leave Bill – this will introduce a new flexible entitlement to one week’s unpaid leave for employees providing or arranging care for a dependent with a long term care need.

y Employment (Allocation of Tips) Bill – this will require employers to allocate tips, gratuities and service charges to workers without deductions.

y Employment Relations (Flexible Working) Bill – this will amend the process for requesting flexible working, including making it a day one right, allowing employees to make two requests in any

12-month period (increased from one) and requiring employers to make a decision within two months (reduced from three).

y Neonatal Care (Leave and Pay) Bill – this will introduce a right to up to 12 weeks of neonatal leave for parents of children who are receiving, or have received, neonatal care. The leave will be paid if parents meet certain qualifying criteria.

y Protection from Redundancy (Pregnancy and Family Leave) Bill – this will extend the protected period during which employees on maternity leave must be offered suitable alternative employment where a redundancy situation arises to 18 months after the birth.

Just Employment law are employment law specialists with expertise in assisting employers with a wide range of employment matters, If you are interested in learning more about our services, please contact us on 0141 331 5150 or at enquiries@ justemploymentlaw.co.uk. You can also visit our website at justemploymentlaw.co.uk.

MARKET INSIGHT
WWW.SMTA.CO.UK 24

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WWW.SMTA.CO.UK 25

FEMALES IN FOCUS 2023

SMTA is delighted to host our third Females in Focus lunch this year at Grand Central Hotel in Glasgow on Friday 22nd September 2023. This lunch aims to bring together women (and men!) from all across Scotland to listen to our panel of inspiring women and, we are pleased to confirm that Heather Dewar, sports journalist, TV and radio presenter will once again host our event.

Our Headline Speaker is Ann-Maree Morrison MBE who founded and ran Labels4Kids, an ecommerce labelling business, for 19 years. The business was sold in September 2022 and with now with Ann-Maree’s ecommerce, Chartered Accounting and Management Consulting background she consults and mentors in Ecommerce for SMEs.

We will also be presenting our ‘Nan Lindsay Award’ at this event, Nan was SMTA’s first and so far only female President who sadly passed away in 2019. SMTA thought it fitting to

create an award in her honour and we created the ‘Nan Lindsay Award’ which is given to an outstanding female in the trade who has established themselves as a strong woman in business who has shown ambition and leadership. In 2022 this award was presented to Catherine Kelly of Marsh Commercial insurance and in 2021 it was presented to MaryAnne McNaughton of Central Car Auctions, two very worthy recipients of this award! A nomination form can be found on our website or contact karen.thompson@smta.co.uk for more information.

GRAND CENTRAL HOTEL, GLASGOW

FRIDAY 22ND SEPTEMBER 2023

TICKETS

Table of 8 – £500 plus VAT

Individual tickets – £70 plus vat

To book please email: karen.thompson@smta.co.uk

SPONSORSHIP OPPORTUNITIES

If you would like to support this event or would like the details of all SMTA sponsorship opportunities contact: wendy.hennessy@smta.co.uk

26 WWW.SMTA.CO.UK
Headline Sponsor (Left) Headline Speaker – Ann-Maree Morrison MBE

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The small print; no purchase necessary, free to enter draw, no alternative price will be offered, closing date for submission 31st March 2023 – please ensure contact details are on the email – the winner will be notified by email. Prize provided courtesy of Niall Farmer of GES Scotland. Competition entry only open to those businesses in current membership of the SMTA and SMTA staff are excluded. Need help? Please call Niall Farmer of GES Scotland on 07483 827734 SIMPLY EMAIL YOUR ANSWER TO norman.stirling@smta.co.uk COMPETITION TIME!! WIN this Low Profile Trolley Jack ANSWER THIS QUESTION: WHAT IS THE CAPACITY OF THIS JACK? Dama HT840025D 2.5T Low Profile Trolley Jack • Double pump • Rubber pad included Capacity 2500 Kg Min Height 85mm Max Height 455mm Packing Dimensions 640 x 342 x 174 mm Net Weight 34.8 Kg Gross Weight 36.6 Kg

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YOUR FORD CENTRE

SMTA Tell us about your work in your local community?

GS We have participated in various sponsorships and donations to community projects, sports clubs, events and youth associations that include the My Name’5 Doddie Foundation, Kirkcaldy Half Marathon, Kirkcaldy Youth Gymnastics, Caledonian Junior Polo Teams, Fife Council Safer Communities Partnership, Peebles Beltane Festival, Raith Rovers FC , Raith Rovers Community Club, Fife Flyers along with many Bowling Clubs across Fife the Lothians and the Borders. We have also recently agreed to support Enjoyleisure, the Charitable Health, Wellbeing & Leisure Trust for East Lothian.

SMTA What’s one of the highlights of your community activity over the years?

GS Rather than highlight one particular activity, I think the fact that as we have grown as a business over the last few years, we have also grown our overall commitment to local community projects, while not losing our relationship with many of the local people and clubs that we have supported over those years and that

gives us a huge sense of pride knowing that we are giving back to our local communities.

SMTA What does it mean to your business to win one of our Community Activity Recognition Awards?

GS We feel a huge sense of pride and we are delighted that our business and staff’s willingness to give back to the community at every opportunity has been recognised by the much respected Scottish Motor Trade Association, as well as our colleagues in the industry.

SMTA What do you think it means to your local community to see local businesses fundraising, donating etc?

GS I know through conversations that we have with members of the organisations that we work with and support that many of them rely on the goodwill of local business like ourselves especially in the current climate. Many large businesses are sometimes viewed as insular institutions driven by the need to make a return for stakeholders.

While we are a profitable business, we understand that our local communities are very much an integral part of our success to date.

30 WWW.SMTA.CO.UK
SMTA talks to Graeme Salmond, Group Aftersales Director
MEMBER PROFILE

SMTA SMTA is keen to show that our members are not just garage businesses but many of our members also play a huge part in the community. What inspires you to be so active in your community?

GS Our staff are also part of our local communities, and we feel our involvement allows a feeling of pride in being able to give back to the local communities that have grown with us over the years.

SMTA Can you tell our readers a bit about your garage?

GS As one of Scotland’s largest familyowned Ford Dealer Groups, with one of our dealerships being in business since 1925, we will use all our experience and expertise, whether that is in Sales, Aftersales or Car Rental, to ensure your ownership experience is enjoyable and stress free. Our unique customer care that can only be provided by a family business is one reason why so many of our customers keep coming back and are happy to recommend us to their family and friends. Ford have also recognised this with the award

of their prestigious Chairman’s Award for Outstanding Customer Satisfaction.

Our family business friendliness, flexibility and attention to detail combined with the professionalism usually associated with larger companies is a combination that works.

SMTA How does your SMTA / Scotsure membership help?

GS Our membership and great relationship with the SMTA gives our staff and customers the confidence that we are a member of a highly respected motoring organisation. Adhering to a code of conduct.

SMTA What are you plans for the future?

GS We are currently expanding into the Dundee and Tayside area and look forward to building similar relationships with those local communities.

SMTA What’s the key to your garage’s success?

GS Staff moral and treating customers like family.

SMTA What is the biggest challenge as a business?

GS Economic climate and the significant changes within the motor trade in the years ahead.

SMTA What drives you?

GS My wife and kids! As every parent does I want to set a good example to my kids and show if you work hard and believe, anything is possible. They are my inspiration!

SMTA What’s the most important thing you’ve learned in your career, and how have you made use of it?

GS Embrace the challenge and never fear failure. Life and business can tend to throw some curve balls at times however by not failing you cannot learn from mistakes. Some of my highest achievements have come on the back of failure and disappointments.

Also, to never underestimate the power of a great team. A business can achieve great things by empowering individuals who are passionate and working towards the same goal.

31 WWW.SMTA.CO.UK

NEW COLLEGE LANARKSHIRE – CUMBERNAULD CAMPUS

NOW OFFERING MA PROGRAMMES

SMTA is pleased to advise that New College Lanarkshire has recently renovated their Cumbernauld Campus and offers state of the art facilities to students and is now offering Modern Apprenticeships (MA) programmes.

Cumbernauld Campus has been offering automotive courses since 1978 for City & Guilds, IMI and SQA. With over 600 students and more than 30 staff employed across their automotive programmes which also include Level 4, 5 and 7 Diplomas in Maintenance & Repair.

The automotive department has two workshops with are comparable to most automotive franchised outlets, with modern diagnostic equipment and vehicle repair facilities. The automotive staff are industry experts who have

worked and train with dealerships such as Mercedes and VW Group.

New College Lanarkshire is the largest further education provider of automotive training in Scotland. Whether it is cars, motorcycles, vans, buses, trucks or lorries that potential apprentices are interested in, they offer a wide range of courses to teach the nuts and bolts of vehicle maintenance and repair.

If you are interested in taking on an apprentice in the Cumbernauld area then please do not hesitate to get in touch with us. We can assist with the entire process and liaise with the college on your behalf – you employ the apprentice and we will do the rest!

Contact Fraser Miller, Apprentice Training Manager Tel: 07789 264229 or email fraser.miller@smta.co.uk 32 WWW.SMTA.CO.UK

CONSUMER DUTY: ARE YOU PREPARED?

The Financial Conduct Authority’s (FCA) new Consumer Duty, due to be implemented in July 2023, is being described by some financial industry experts as “the most important regulatory intervention in a decade.”

The reason for this statement is that the FCA is creating a new Principle for Business (PRIN). These principles form part of the FCA’s HighLevel Standards and they are described in the FCA Handbook as follows:

“The Principles are a general statement of the fundamental obligations of firms and the other persons to whom they apply under the regulatory system. They derive their authority from the FCA’s rule-making powers as set out in the Act1, including as applied by the Payment Services Regulations and the Electronic Money Regulations, and reflect the statutory objectives.”

A breach of a PRIN could potentially result in a fine from the FCA. For example, TSB Bank plc recently breached PRIN 2 for failing to exercise due skill, care, and diligence, and PRIN 3 for not taking reasonable care in organising and controlling its affairs responsibly and effectively, with adequate risk management systems, in the retail banking sector. The FCA imposed a financial penalty of £29.75 million.

Whilst this is a particularly extreme example, it highlights the fact that you must NOT breach these Principles of Business, and watch out if you do!

As of 31 July 2023, there will be a new Principle 12 which sets out that “A firm must act to

deliver good outcomes for retail customers.”

Principle 12 is considered to impose a higher and more exacting standard of conduct than current PRIN 6 – “A firm must pay due regard to the interests of its customers and treat them fairly.” and PRIN 7 – “A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.” Failure to comply with Principle 12 may lead to FCA enforcement action resulting in fines and associated damage to reputation.

The Consumer Duty is structured to consist of three core elements:

y Principle 12

y The Cross-Cutting Rules

y The Four Outcomes

Principle 12 reflects the overarching, high standard of behaviour required of firms by the FCA. The Cross-Cutting Rules then further develop the FCA’s expectations for firms in delivering good consumer outcomes, by applying the following requirements:

y Firms must act in good faith toward retail customers

y Firms must avoid foreseeable harm to retail customers

y Firms must enable and support retail customers to pursue their financial objectives

Principle 12 and the Cross-Cutting Rules are then supported by the Four Outcomes which consist of rules and guidance setting out more detailed expectations for firm conduct in four particular areas:

y The products and services outcome

y The price and value outcome

y The consumer understanding outcome

y The consumer support outcome

The next date to be aware of is the end of April 2023, when the FCA has advised: “Manufacturers should aim to complete all the reviews necessary to meet the four outcome rules for their existing open products and services and have shared with distributors to enable distributors to meet their obligations under the Consumer Duty.” Therefore, if you have not heard from the product/service manufacturer by then, and if you are unsure of what your obligations are, we suggest you contact your financial product/service manufacturer to understand how you are going to meet your obligations under the Consumer Duty.

MARKET INSIGHT USEFUL DOCUMENTS Policy Statement PS22/9 A new Consumer Duty Feedback to CP 21/36 and final rules https://www.fca.org.uk/publication/policy/ps22-9.pdf Final non-Handbook Guidance for firms on the Consumer Duty https://www.fca.org.uk/publication/finalised-guidance/fg22-5.pdf 1The Financial Services and Markets Act 2000 33 WWW.SMTA.CO.UK

CYBERATTACKS ON MOTOR TRADE BUSINESSES: WHAT YOU NEED TO KNOW.

When a nationwide chain of motor dealerships was the victim of a cyberattack in December 2022, the company swiftly responded to protect customers’ data, systems and third-party partners. The recovery has been described as a ‘mammoth task’, working with their security partners to undertake an extensive review of their entire IT network and infrastructure. It also affected customers, leaving the company with difficulties in completing handovers for vehicles sold over the festive period.

A recent study by security experts The CyberEdge found that in the UK, 81.4% of organisations had experienced at least one cyber attack in 2021, compared to 71.1% in the previous annual findings.

Digital technologies speed up operations, enabling the completion of sales, vehicle services, repairs, and the like to be carried out efficiently. However, this also makes the automotive industry vulnerable to cybercrime. Because of the close relationships motor trade businesses have with clients and suppliers, they’re particularly at risk of hacking and ransomware. Accessing data from one company can open up opportunities for cybercriminals to extort others.

This data loss could have high-cost implications, including fines and compensation claims.

It’s not just large companies that attract cyberattacks; smaller ones are just as exposed because they’re easier targets.

Suppose you’re unfortunate enough to find your business on the receiving end of a ransomware attack or data breach. In this situation, it can be easy to panic and delay taking action. However, by ensuring you are prepared, it will be much easier to respond.

WHAT SHOULD I DO IF MY BUSINESS HAS BEEN HACKED?

Step

1: Respond quickly

If you think your business has been the victim of a cyberattack, it’s essential to

respond fast, even if you don’t know precisely what’s happened. Notify your inhouse IT team or external provider. If you have a cyberattack action plan, now is the time to put it to use—this may involve a total lockdown turning all systems off until you’ve established the situation. The faster you act, the better your chance to protect your business and customers’ data.

A data hack can limit operations or put you entirely out of business for weeks or months until your systems are secure.

It’s essential to manage communications internally and externally. Ensure staff remain informed throughout, especially those who deal directly with customers and suppliers. Even if the data breach doesn’t affect all of your systems, the reputational damage could be more harmful. Keeping on top of communications internally and externally is critical.

Step 2: Reporting the data breach

The General Data Protection Regulations (GDPR) state all organisations must report certain personal data breaches to the Information Commissioner’s Office (ICO). This needs to be done within 72 hours of becoming aware of the breach, where feasible.

A breach only needs to be reported if it is likely to risk people’s rights and freedoms. You’ll be asked to provide thorough information, clearly stating a data breach, when it occurred, and the nature of the information that was compromised. You’ll also need to inform them what steps you are taking to remedy the breach and provide updates when you learn more as the incident progresses.

Step 3: Start your insurance claim

If you have a cyber insurance policy, contact your broker immediately to start the claims process. If you don’t have insurance in place, you should seriously consider it, particularly if you have an online presence. If you’re a victim of a cybercrime cyber insurance can potentially help your business recover losses,

as well as provide support for business interruption, system damage and data breaches – while helping to cover the costs of fines and penalties.

Step 4: Investigate your hack

Following a cyberattack, you will need to work with a cybersecurity expert to establish the nature of the attack and which part of your network it’s affected.

You may want to arrange for a cybersecurity firm to check for general weaknesses regularly to minimise the likelihood of future attacks.

Step 5: Protect against future cyberattacks

Education and awareness are the best ways to prevent cyberattacks. All employees should be aware of the danger of the various types of cyberattacks. In the case of phishing scams, they need to be vigilant when responding to suspicious emails, especially when they contain attachments and links.

Here are some tips to ensure your business is cyber secure:

y Ensure your employees use strong and unique passwords, preferably multi-factor authentication.

y Arrange training sessions for staff to help them identify phishing emails.

y Implement and enforce regular data backup and restoration processes.

y Respond to requests to access digital resources by a staff member by requesting their identity has been appropriately verified.

Speak to your broker about arranging cyber liability insurance and for advice on how you can manage the risks associated with cybercrime.

34 WWW.SMTA.CO.UK MARKET INSIGHT
This is a marketing communication. Marsh Commercial is a trading name of Marsh Ltd. Marsh Ltd is authorised and regulated by the Financial Conduct Authority for General Insurance Distribution and Credit Broking (Firm Reference No. 307511). Copyright © 2021 Marsh Ltd. Registered in England and Wales Number: 1507274, Registered office: 1 Tower Place West, Tower Place, London EC3R 5BU. All rights reserved.
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DIESEL INGENIUM ENGINE WITH LOW PRESSURE AND AN EXHAUST VALVE COOLER BLOCKAGE

Vehicle Types: Land Rover / Jaguars (and any vehicle fitted with the 2.0 diesel ingenium engine.

Model types: Including but not limited to: Range Rover Evoque, Discovery Sport, Land Rover Defender, Range Rover, Range Rover Sport

Vehicle Fault: Vehicle in restricted performance and DTC P049B-00

Fault codes: P049B-00 EGR “B” Flow Insufficient Detected - No sub type information. Other low pressure EGR related DTCs

LOW PRESSURE EGR

The LP EGR system is used on EU5 and EU6 market vehicles only.

The LP system takes exhaust gases from the exit of the Diesel Particulate Filter (DPF) system, and mixes it with the fresh air intake into the turbocharger.

The gases are transported from the DPF outlet to the LP EGR cooler via a pipe. The LP cooler has no bypass mode, so only cools.

There is a simple mesh filter fitted before the gasses reach the outlet of the cooler that prevents larger particles of soot etc. from entering the turbo charger system. The mesh filter is a non-serviceable component.

The cooled gases are then directed through the LP EGR valve, via a butterfly flap.

The valve consists of a tube between the fresh air duct and the turbocharger, with the butterfly valve covering the EGR inlet, in the center bottom of the EGR valve.

The butterfly valve opens into the fresh air stream, promoting both thorough mixing before the gas enters the turbocharger, and also provides ‘suction’ to drive the LP EGR gas through the system.

POSSIBLE CAUSES

• Excessive undetected soot in the DPF

• Charged air induction system leak

• Low pressure EGR cooler blocked / filter blocked

• Low pressure EGR valve mechanical integrity

• Low pressure EGR differential pressure sensor mechanical integrity

• Connector is disconnected, connector pin is backed out, connector pin corrosion

• Vehicle is fitted with TWO EGR valves a LP and HP unit. One is DPF side to turbo the other is exhaust manifold to intake manifold.

REPAIR

1. Using a HP smoke detector visually inspect the air intake system for leaks. And repair any that are found.

2. If there are no signs of soot particles this is not the cause of the customers concern.

3. Remove low pressure EGR cooler housing lid and visually inspect for soot particles.

4. Is the cooler blocked, See #NOTE# blocked LP EGR cooler filter image below. We have seen the filters internally block as per the image below, this would require a new filter set LR126126 cleaning of the EGR/Throttle body and the Low pressure EGR cooler.

5. Low pressure EGR pipe on the nearside is it blocked.

6. Look for signs of sooting around the clamp.

7. Black soot around the tail pipe.

8. Loosen the SCR assembly, look up into the cooler and check for excessive levels of soot.

9. DPF/SCR canister cracked internally.

10. JLR process change LP EGR and cooler.

11. Change cooler pressure sensor and SCR/DPF unit.

12. Pressure sensor is bolted to the intake side of the engine looks like a DPF pressure sensor one goes to the cooler pack and the longer pipe goes to cooling unit this measures the pressure either side of the unit.

13. If the cooler also shows signs of being excessively blocked, then the cooler may need replacing as well.

14. The DPF may also need inspecting for cracks that can draw in air from the outside causing excessive sooting.

15. After the repair, reconfigure existing PCM with latest software with a dealer tool.

16. Once completed check below:

17. Check soot mass in the oil and if too high carry out an oil service, or;

18. Oil dilution factor 0 Zero good, 10 bad if too high carry out an oil service.

The picture left shows a blocked LP EGR cooler filter LR126126 covered in soot particles!
Welcome to Tech Insight created with the support of the IVS 360 OEM-Trained Master Technicians at OPUS IVS and TMD Friction to whom we are very grateful.
Here we highlight some of the more common recent faults that our partners have come across in their workshops and of course provide you with the appropriate fixes.
We are always reviewing our content and please feel free to get in touch if you feel that there is something you would like to see in future editions of SMTA
36 WWW.SMTA.CO.UK
AutoINSIGHT.

PEUGEOT CITROEN VEHICLESWIPER BLADES INOPERABLE

Make/Model: Peugeot Citroen vehicles

Fault: Wiper blades inoperable

Prolonged periods of inoperability, or flat batteries can cause the wiper blades on Peugeot Citroen vehicles to become inoperable. Our IVS 360 Master Technicians expect that beyond the pandemic, you will see many issues such as these in your workshop. For Peugeot Citroen vehicles, to restore wipers to a functioning status, our experts advise that you:

1. Remove steering column trims allowing access to steering wheel module connections.

2. Switch ignition off and wait 2 minutes.

3. Turn ignition on.

4. Disconnect grey 6 pin plug from the steering wheel module (comm. 2000).

5. Wait 3 to 5 seconds and the lights and wipers should come on and, in some cases an audible noise may be heard.

6. Switch ignition off and wait for 3 - 5 minutes.

7. Reconnect the 6 pin grey plug.

8. Switch ignition on.

9. Switch ignition off.

10. Put wiper stalk in auto or intermittent position.

11. Put wiper stalk back to the off position, switch ignition on and test the wipers.

WHAT TOP FIVE INCORRECT BRAKE-RELATED FITTING TIPS (OR FACTS) WOULD YOU LIKE TO DEBUNK?

1. DIRECTIONAL PADS

These have been available for a number of years now and unfortunately, we still see a few being fitted incorrectly.  We supply information on how these parts should be fitted correctly either through the installation instructions in the box or through the training we offer and any technical videos we produce.

2. BRAKE PAD SHIMS

IT INFORMATION FOR GARAGES –ROBERT BECKMAN, BLUELINK

Our internet connectivity is becoming more and more important every day. Everyone has seen the spinning hourglass or the Netflix circle when a piece of software is trying to phone home. This is what we see, but there is more going on behind the scenes. Without going into extreme technical details think about the internet being like a water pipe going in AND out of your workshop. If you split this incoming pipe to many places waterflow slows. Same goes for the out, pipes back up or stuff can spill. The internet, and especially how your internet is setup in your workshop matters.

Modern vehicles like Tesla can connect directly to your workshops WiFi, or in some cases via a hard-wired connection. It uses this connection to “phone home” and allows for diagnosis and software updates. Tesla is somewhat ahead of the game, but it gives us a good idea of what is coming. Many manufacturers are moving in this direction.

Today’s diagnostic tools leverage internet connectivity in different ways. Some use the connection to keep the tool up to date or allow you to print or browse the internet. Other tools such as those offered by Opus IVS use this internet connection to facilitate remote

connectivity to vehicles. Remote connectivity works extremely well if certain internet conditions are met. Think about water pipes. If you are connected to a car and attempting to “program” something and someone else on your network is using much of the water it can either slow down your whole process, or worse cause a programming failure. If another employee is uploading large amounts of data like photos or videos, the pipes back up. So, the size of the pipes matter to each location in your workshop.

Like directional brake pads, shims have been fitted or supplied with the brake pads as a way to reduce noise in the brake system.

We still see a high volume of brake pads not being installed with shims that are supplied in the box.

3. WRONG GREASE USED FOR FITTING THE BRAKE COMPONENT

Over the years I have been in the industry – which is somewhat nearly 30 years – copper grease was the primary grease used.

Over time the brake systems have advanced to meet the need of the modern vehicles we have on today’s roads. So, using copper grease is old hat now and a more modern grease should be used for such purposes.

4. DIRTY HUB

We know that technicians are under a lot of pressure to get the vehicle in and out as quickly as possible. But this comes with consequences when fitting the brake parts correctly.

Time should be spent wisely on ensuring that all the components in the brake system are cleaned and checked correctly. This is important especially when fitting brake discs to the vehicle.  If the hub is not properly cleaned or checked for lateral run-out issues will occur after a period of time.

The driver will now have juddering brakes under heavy or light braking applications. This will require the brakes to be fully stripped down and replaced, which will not only cost the garage downtime but also have a detrimental effect on the confidence of the customer.

5. WRONG TOOLS

It’s paramount that the correct tools be used during the replacement of the brake products.

Let’s just focus on one for the time being. Some manufacturers have used ceramic pistons on the brake callipers. Most garages are still using water pump pliers to push the brake callipers piston back. Due to the fact that some of these pistons are made of ceramic, damage can be caused using the wrong tools.

37 WWW.SMTA.CO.UK

AGENCY RETAILING – ASSESSING THE POTENTIAL USED CAR IMPACT

In 2024, BMW’s agency retailing model will launch in the UK with Mini and will offer used cars up to a maximum of 18 months old .

While it may not happen immediately, it is hard not to foresee that in the threeyear period of a typical Personal Contract Purchase (PCP) or Personal Contract Hire (PCH), car manufacturers (OEMs) adopting an agency model might test retailing used cars as the primary financing period ends.

With Volkswagen Group, Stellantis, Ford, Jaguar-Land Rover and Volvo launching agency models or investigating the potential for all or some of their brands/models a significant change lies ahead and in the case of Mercedes-Benz, it is already live.

The rationale for the agency model is that OEMs and their associated finance business can take control of the information, pricing, and contracting parts of the value chain. At the same time, they can also take time/cost from the distribution process and get closer to the end buyer.

It would be wrong to see this move in isolation. OEMs have been increasing their footprint in other upstream fleet and mobility services distribution areas.

Volkswagen is part of a consortium that bought Europcar. Through Volkswagen Financial Services, it also owns a 60 per cent

stake in Europe’s largest fleet management company FleetLogistics. This is in addition to its in-house fleet business. BMW own the Alphabet fleet business, which has grown organically and by acquisition in recent years. There are plenty of other examples. Outside of in-house fleet businesses, it has been common for major fleets to have a direct, central relationship with OEM brands.

The opportunities for OEMs to retain that first market change used car is clear;

y To support residual values

y To support aftersales work and the value of OEM parts

y The secondary finance opportunity

y Access to a new customer

y Brand building

y Overall profitability

As with new cars, there is likely to be a role for an agency retailer in any used retailing. Test drives, handovers, the part-exchange/ de-fleet process. An interesting addition to this position is the potential for OEM related online retailing platforms such as Heycar where Volkswagen AG, Daimler and Renault Group are all stakeholders.

While some might point to the wellpublicised challenges some new start online retailers have experienced and the issues of stocking, storing and refurbishing such stock, I suggest consumers will see higher brand equity in a long-established OEM from a sales perspective. The agency retailer looks like a natural solution in terms of inspections, preparation and handovers.

While some of this position is hypothetical, BMW has laid down a marker, and if OEMs can gain greater control of the de-fleet remarketing process, and for some at least the steps are emerging, then access to used stock up to three years old could become more competitive in the coming years.

That the agency retailing provides challenges is clear, but we should not ignore the opportunities such as lower stocking and operational costs and retailers inherent agility. These and other thoughts will form part of my next article on this important issue.

MARKET INSIGHT
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TOP 10 MARQUES

Diesel 964 2,257 Petrol/Electric
YEAR TO DATE
YEAR TO DATE Strathclyde 1369 Lothian 5478 963 Grampian 1078 Central 777 Tayside 516 Fife 482 Highlands 240 Dumfries & Galloway 120 Borders REGISTRATIONS BY REGION FUEL
YEAR TO DATE Petrol 6,740 Electric 1,008 Diesel/Electric 1 Petrol/LPG 53 SCOTLAND TOTAL: UK TOTAL: 131,994 11,023 CAR FIGURES JANUARY 2023 MG HS 403 Volkswagen 1047 (9.86%) MG ZS 320 MG 852 (8.02%) Volkswagen T-Roc 303 Audi 794 (7.48%) Nissan Qashqai 208 Toyota 704 (6.63%) Mazda 2 184 Kia 697 (6.56%) Peugeot 184 BMW 541 (5.10%) Toyota Corrolla 181 Mazda 528 (4.97%) Kia Picanto 178 Peugeot 496 (4.67%) Mini Mini 174 Hyundai 477 (4.49%) VW Tiguan 172 Renault 455 (4.29%) 39 WWW.SMTA.CO.UK
TOP 10 CARS
TYPE

TAKING A BLENDED LEARNING APPROACH TO TRAINING

and hybrid vehicles on the road, but more on that later. Consequently, on-line training can provide a quick and cost-effective solution. There are a number of in-depth, high quality technical courses on key vehicle components readily available online to help technicians build a fix first time mentality.

Take the annual MOT assessment, if left too late this could affect a VTS and a technician’s RAG rating. In a matter of hours, a technician can be trained to the current, DVSA syllabus and complete the assessment. All of this can be undertaken online, and at their own time and pace.

Combining online and in-person teaching methods, blended learning is an educational approach which enables delegates to learn at their own pace. This is through a typical mix of face-to-face instruction, online learning activities, and technology-based resources.

The information age has narrowed the attention span of the general population. Therefore, it is vital that a training provider creates a more flexible and personalised learning experience to ensure that the message is received. From chunks of traditional classroom style training to completing online assignments and participating in hands-on learning, variety enhances the training experience and ensures maximum delegate engagement.

Blended learning can take many different forms. It just depends on the needs and goals of the delegates and the resources available to the trainer. It can be used in a variety of settings, including schools, colleges, higher education institutions, and professional development programmes.

One advantage of blended learning is that it allows students to learn at their own pace

and customise their learning experience to their individual needs and preferences. It also allows educators to use a wider range of methods and resources, integrating both technology with traditional teaching.

In a this environment, delegates may have some class time in a traditional classroom setting, while also completing coursework and assignments online. This can include watching lectures or completing quizzes and tests through a learning management system (LMS) or participating in online discussions and collaborative projects.

HOW THE AUTOMOTIVE INDUSTRY CAN ADOPT BLENDED LEARNING

In an industry which is evolving at rapid speed, upskilling the current crop of vehicle technicians and MOT testers is vital, along with creating learning pathways for future generations.

Today cars are complex. Vehicle technicians need a fantastic level of technical skill and knowledge to repair and maintain them. Not to mention the increasing numbers of electric

Whether it’s an online course or a faceto-face training session, the fact remains that the only way the current automotive workforce can sustain their roles is to keep upskilling. Everyone within an automotive business should hold a level of responsibility, regardless of their position, to ensure that they have the relevant skill set to service vehicles safely and competently.

MAKING EV TRAINING A PRIORITY

Employers should be putting electric and hybrid vehicle courses to the top of their training agendas. While not yet regulated by the Government, it’s vital that employers realise they will be liable if untrained employees are injured while working on highvoltage vehicles. Ultimately, if technicians remain inadequately trained, it will only be a question of time before somebody, without the right knowledge, puts a spanner in a high voltage area.

Autotech Training is a leading technical, MOT and electric/hybrid vehicle training provider. The company can offer a blended learning approach which meets the needs of customers exactly, including the ability to run training courses on the premises of any site.

www.autotechtraining.co.uk

40 WWW.SMTA.CO.UK MARKET INSIGHT
Training isn’t a one-size fits all solution. Everyone absorbs information differently and if the setting and offering isn’t right, what is learned one day may be obsolete the next. It’s why taking a blended approach to training is so important.
Tel: 0141 Email: Web: We provide training and individuals aftermarket, be delivered • Electric/Hybrid (Levels Vehicle MOT • MOT • MOT Assessment • VTS • ADAS • Air Conditioning and • REACT • IRTEC ARE EV READY? WE SOLUTION YOUR MOT TRAINING ASK US ABOUT NEW WEB-BASED TOOL DESIGNED TO IMPROVE YOUR MOT TESTING STANDARDS AND HELP ENSURE COMPLIANCE.

Guest Speaker: Mike Brewer is a well-known presenter of television motoring programs, not to mention a journalist, producer, campaigner, motoring enthusiast and family man.

SMTA ANNUAL DINNER AND AWARDS 2023

THURSDAY 26TH OCTOBER 2023

HILTON GLASGOW

William Street, Glasgow

TICKETS

Table of 10 – £1450 + VAT

Individual Tickets – £150 + VAT

For further details please contact Karen Thompson on 07922 079889 or email karen.thompson@smta.co.uk

SPONSORSHIP

For all sponsorship opportunities contact Wendy Hennessy on 07974 380140 or email wendy.hennessy@smta.co.uk

Supporting Sponsors

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LAMLASH GARAGE Park Terrace, Lamlash, Isle of Arran, KA27 8NB Opportunity to acquire a successful established business on the Isle of Arran Fully equipped Motor Garage, MOT Station & Office space Strong and stable customer base Established systems, processes & suppliers Consistent and strong financial performance Opportunity for further growth BUSINESS FOR SALE Enquiries to: ben@thomsonconstruction.co.uk | 01770 600 242 For Sale Advert - 26 x 16cm - Lamlash Garage.indd 1 2022/07/19 13:44:13

MILLION REASONS WHY

AS A GLOBAL MANUFACTURER OF BRAKE PADS AND LININGS, WE PRODUCE 1.2M FRICTION PRODUCTS PER DAY.

By designing, developing and testing our products in-house, we have complete control over the manufacturing process to guarantee consistent high quality, all created and approved to 100% TMD Friction standards.

This is one of the many reasons why Textar is trusted by vehicle manufacturers, distributors and workshops worldwide.

WWW.SMTA.CO.UK 43
LEADING FRICTION ENGINEERING MANUFACTURING TESTING
NOW OPEN IN WORKINGTON! Contact your local DINGBRO branch www.dingbro.com MONTROSE ARBROATH DUNDEE PERTH KIRKCALDY STIRLING DUMBARTON GREENOCK PAISLEY GLASGOW DUNFERMLINE LEITH GYLE BATHGATE BELLSHILL EAST KILBRIDE GALASHIELS DUMFRIES AYR CARLISLE WORKINGTON INVERNESS ELGIN FRASERBURGH PETERHEAD ABERDEEN FALKIRK STRANRAER KILMARNOCK NOW OPEN IN WORKINGTON! Contact your local DINGBRO branch www.dingbro.com MONTROSE ARBROATH DUNDEE PERTH KIRKCALDY STIRLING DUMBARTON GREENOCK PAISLEY GLASGOW DUNFERMLINE LEITH GYLE BATHGATE BELLSHILL EAST KILBRIDE GALASHIELS DUMFRIES AYR CARLISLE WORKINGTON INVERNESS ELGIN FRASERBURGH PETERHEAD ABERDEEN FALKIRK STRANRAER KILMARNOCK Since 1973 Dingbro have become synonymous with excellence in the field of automotive component distribution. With over 1500 employees in 33 sites throughout Scotland and North West England, Dingbro is one of the largest independent motor factor groups in the UK. Servicing an area from Shetland and the Faroe Islands down to the Scottish borders and North West England. Dingbro are also a member of the Parts Alliance which further enhances our service. Combined with strong supplier partnerships, OE quality products, stock availability and a fast and reliable service, this makes Dingbro the leading company in its field in Scotland. Local Service With National Strength

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