SMTA Auto Insight – Issue 13

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.

SMTA is proud to support:

WELCOME TO ISSUE 13

COX AUTOMOTIVE

Volatility in the used car market

SMTA IS 120 YEARS OLD!

Celebrating the first 40 years in photos

MEMBER PROFILE

CAR Star Winner Anderson Clark, Inverness

THOMSON COOPER

How exposed is your business to fraud?

MEET TWO OF OUR NEW CHARITY PARTNERS

SCAA & Erskine

SMTA EVENTS

Details of our Annual Dinner & FF23 events

The front cover of this magazine has the stunning Audi Q4 e-tron which I was lucky enough to test over a weekend recently. I have to admit to not being a huge fan of electric cars, I guess it is a generational thing relevant to my era and also the fact that I am a die hard “petrol head” like many if indeed not most in our industry. However, having experienced the huge improvements made with the drive experience and range abilities of this technology I do see that there is a fair argument for the driver experience. The same regrettably cannot be said about the charging network across the country and I will expand on this in a future edition. For now I am starting to think like Arnold Schwarzenegger in that we have to now think technology, embrace technology accept that technology has a place in resolving some of the issue from our past into the future.

When we talk about future it starts to get a bit difficult in Scotland to accept all that we are being advised and directed to embrace for the future of our sector when the Scottish Government appears to have given up on those young people who have decided to undertake an apprenticeship within the Modern Apprentice framework! Skills Development Scotland have cut the funding to the MA Programme by a massive 13%. The impact of this is being felt across the country with young people being turned away from colleges and private training providers who are unable to secure the funding required for the training and development of the individual concerned, thereby “no places, no additional apprentices”. For a sector that is driving to embrace changing technologies and the subsequent banning of ICE powered vehicles, we as a country have an urgent need to be training the technicians of the future now. The skill gap in our sector will simply grow and grow and everyone who has tried to recruit technicians will fully understand the ultimate outcome of this growing critical situation.

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

www.smta.co.uk

With this in mind we will be seeking support across the spectrum of the sector as we have to “go political” on this to ensure that funds are released to provide the training and support the next generation of staff looking to come into our industry, if you have been impacted by staff shortages or indeed the current situation with regards trainees, I would appreciate a quick email to notify me so that I can seek up some supporting responses for future use. For now all I need is an email to sandy.burgess@smta.co.uk headed up employment issues and I will get back to you over the next few weeks. We really need to address this to support all our futures!

We have some fantastic events coming towards us in the calendar, check out the Females in Focus event in September and the Annual Dinner in October, both these events are outstanding networking occasions and really good fun, this year our guest speaker at the dinner in none other than Mike Brewer who I am sure many of you know.

In closing I am also delighted to advise you of our new SMTA President, Eddie Thomson who is a very well known character and I look forward to working with Eddie during his tenure.

Have a great summer.

Sandy Burgess FIMI Chief Executive, SMTA sandy.burgess@smta.co.uk

by Philip Nothard Insight & Strategy Director, Cox Automotive

VOLATILITY IN THE USED ELECTRIC MARKET –HOW CAN THIS CHANGE?

The used vehicle market landscape continues to experience significant and enduring transformation. Recent market reports indicate that Europe’s pandemicrelated supply chain disruptions and the ongoing conflict in Ukraine have lost nearly 42 million vehicles over the last three years.

Moreover, consumers’ changing attitudes towards vehicle ownership have substantially impacted financing and leasing, affecting both new and used vehicle markets. We must also consider the potential impact of some OEMs shifting towards the premium segment to boost profitability during the supply shortage. This shift could have significant implications on used vehicle market dynamics for the next five to ten years, with fewer cheaper yet still popular models entering the market.

It is clear that the used vehicle market is in a state of flux, with numerous factors shaping its future trajectory. But above all the factors just mentioned, the single biggest change to the used car market is the rise of battery electric vehicles (BEVs).

Undoubtedly, the supply of BEVs in the used vehicle wholesale market is increasing, and this growth has led to unprecedented levels of volatility and uncertainty, catching many off-guard. While it is true that changes in the used vehicle market historically take time to stabilise, the emergence of the BEV sector adds an extra layer of complexity, especially around managing residual values.

Unlike the development of an Internal Combustion Engine (ICE) vehicle or the

facelift of an existing model, the evolution of the BEV sector presents unique challenges for market participants. As a result, effectively navigating this rapidly changing landscape requires a comprehensive understanding of the factors driving demand and supply and the broader trends shaping the used vehicle market.

Incentives are needed to support the used BEV market

The regulations mandating net-zero emissions are the main driving force behind the shift towards BEVs in the new vehicle market. This shift is accompanied by the potential of significant financial costs for OEMs and the need for infrastructure improvements, which are being supported by local governments. However, in the UK, there is a great deal of caution around preowned BEVs, and it’s clear more needs to be done to support consumer and business appetite towards the purchase one.

While some European countries provide generous incentives to encourage the adoption of pre-owned BEVs – such as subsidies of up to €2,000 in the Netherlands, a one-time grant of €1,000 for private individuals in France, and incentives of up to €6,000 in Germany for both BEVs and

PHEVs – the UK currently offers limited support for pre-owned BEVs. Even in the US, the Biden administration has introduced a $4,000 tax credit for the purchase of used BEVs under $25,000, which has led to a significant increase in their adoption.

It is essential that similar initiatives are implemented here to encourage the adoption of used BEVs and support the growth of this market. Until then, there will only be more instability and volatility.

Currently, there is a disparity within the UK, as Scotland supports the transition and preowned BEV market by offering 0% finance. Still, it’s clear that England and Wales need

more incentives to encourage used buyers to consider BEVs.

USED BEV PRICING

As the BEV sector continues to evolve with new entrants and innovations, the increasing volume of used electric vehicles entering the market creates uncertainty and volatility around pricing. Although pricing dynamics depend largely on the specific make, model, and derivative, cautionary buying bahaviours by retailers and consumers is common. In addition, the lack of government incentives to support the transition to electric vehicles in the used car market adds further pricing pressure.

As we look ahead, the number of used BEVs entering the market is growing at a faster pace than the development of supporting infrastructure and the 2030 Net Zero deadline. Furthermore, the pricing strategies of Chinese brands entering the UK and Europe still need to be determined, as they prioritise volume market share and disrupt existing brands. Therefore, it’s essential to closely monitor these developments to understand their impact on preowned battery electric valuations and prepare for any future pricing disruptions. In contrast, ICE vehicles will remain in demand for years due to infrastructure challenges, range anxiety, or simply user preference and a reluctance towards the shift to electrification. This will create a valuation imbalance between BEVs and ICE vehicles.

The current state of the electric vehicle market poses a potential risk for the used car sector. Despite the increasing prevalence of BEVs in the UK parc, only 64% of franchise dealers stocked BEVs as part of their used vehicle inventory in 2022, whilst 89% of independent dealers refrained from doing so. This creates uncertainty around the pricing and availability of pre-owned electric vehicles, which could lead to cautionary buying behaviours from both retailers and consumers.

By the end of 2023, more than a fifth of 0-1-year-old vehicles in the UK parc is expected to be a BEV, and this figure is projected to increase to 41% for 1-3-year-old cars by 2027. To keep pace with this rapid market shift, the sector must prioritise education, knowledge-sharing, and legislative measures to support the ownership and stocking of pre-owned electric vehicles.

Without collaborative efforts to improve awareness and infrastructure, the used car sector risks falling into a ‘valley of death’ where the new market moves faster than the appetite for pre-owned BEVs.

USED VEHICLE SOLD PRICE AS A PERCENTAGE OF ORIGINAL NEW PRICE – ALL FUEL TYPES

USED VEHICLE SOLD PRICE AS A PERCENTAGE OF ORIGINAL NEW PRICE – BEVS ONLY

COX AUTOMOTIVE USED CAR FORECASTS

Building on recent used car figures, the market factors described in this article, and in line with previous Cox Automotive forecasts, we have adjusted our used car registration forecasts for 2023. Our forecasts are broken up into three scenarios –upside, baseline, and downside – each with its justification below. The baseline is, we believe, the most likely scenario to materialise.

UPSIDE SCENARIO

y The increased new vehicle productivity immediately impacts used vehicle supply and the consumer and business confidence recovery.

y Agency model shift creates a positive ecosystem for the relevant OEMs’ used vehicle retailers.

y As with new, the recent government and Bank of England measures have an immediate influence on stabilising and reducing inflation and the cost of living.

BASELINE SCENARIO

y The market experiences a stable but slow consumer and business confidence recovery, with little significant shift.

y Economic headwinds remain consistent throughout the remainder of 2023, and any notable recovery is not seen until early or mid-2024.

y Consolidation and acquisition positively impact the transactional used vehicle market, while retail pricing remains unaffected by the rise in interest rates and household expenditure.

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

DOWNSIDE SCENARIO

y The headwinds of the broader economy, cost of living pressures, and the energy crisis continue to intensify, creating a challenging business environment for the automotive industry.

y The shift away from used vehicles and back to new ones becomes even more pronounced as the oversupply of new vehicles leads to heavy discounting, further eroding the value of used cars.

y Despite an increase in vehicle production and registration activity, the used vehicle wholesale sector remains stagnant due to the oversupply of older models and a lack of demand, exacerbating the supply and demand imbalance and making it difficult for dealerships to move stock.

Batteries and beyond.

Experts in batteries, chargers, inverters and accessories. We stock leading brands, including: Varta, Lucas, Exide, CTEK, Odyssey and Optima

CELEBRATING 120 YEARS OF SMTA

THE EARLY YEARS

Left and above: Two ads for Stirling Cars dating from 1901 & 02

Stirling Cars were one of a number of Scottish companies which began producing cars in the early years of the 20th Century. Their wonderfully named “John O’ Groater” was promoted as a car “for hard work” and was available at a lower price than their de luxe light car -although 155 guineas was still a considerable amount of money at the time, even for a well-off family

IN THE FIRST OF A NEW SERIES, WE LOOK LOOK BACK TO THE VERY START OF THE MOTOR INDUSTRY IN SCOTLAND.

Right: 1903 advert for Albion Motor Car Company based in Finnieston Road, Glasgow

The adverts and catalogue shown for Argyll Motors Ltd date from between 1905 & 1908

Argyll Motors Ltd. was established in 1899 by Alex Govan, producing their first car, the Argyll Voiturette, inspired by Renault. The car featured a de Dion engine, and 1901 models had an upgraded 5 hp engine. The company moved to a purpose-built factory in Alexandria, West Dunbartonshire in 1906, and emerged as Scotland’s biggest marque. However, after Govan’s death in 1907, the company declined and went into liquidation in 1908.

Production resumed in 1910 under the name Argylls Ltd., introducing new models like the “Flying Fifteen” and six-cylinder. They also incorporated four-wheel brakes and Sleeve valve engines in their range by 1914.

The Arrol-Johnston Motor Company was a prominent automobile manufacturer that played a significant role in the early days of the automotive industry. Founded in 1896 in Paisley, Scotland, by George Johnston and Sir William Arrol, the company initially focused on manufacturing bicycles before venturing into automobile production.

The first Arrol-Johnston car was a six-seater “Dogcart”, which went into production at a factory at Camlachie, in the East End of Glasgow.

In 1907 Arrol-Johnston were engaged to produce a car for the British South Polar Expedition, and it did make it to Antarctica, though it was of limited use except on hard ice.

Despite their success, the company faced financial challenges in the 1920s, leading to its eventual closure in 1931.

The Skeoch utility car was one of Scotland’s first affordable cars and was built in Dalbeattie in 1921 by car designer, James Baird Skeoch. The car provided a comfortable two-seater which was suitable for business or pleasure. The car was launched at the Scottish Motor Trade Association’s 1921 Scottish Motor Show held in Glasgow’s Kelvin Hall.

One hundred years later a faithful replica based on the original designs was created by The ‘Dalbeattie Mens Shed’ trustees and featured in Issue 4 of this magazine.

Left: Two early press ads for Arrol-Johnston both dating from 1905

Left: Above is the original 1921 Skeoch and below the workshop in Dalbeattie

Right: A 1926 ad for AJ’s ‘Roomy’ 5-seater Tourer

ADESA’S STUDY REVEALS A POSITIVE SALES OUTLOOK IN THE UK.

ADESA, the online car auction platform for the motor trade, reveals the results of its recently conducted market study. UK customers are loving the simplicity and user-friendly website. And with sales set to increase, the remainder of the year ahead is looking promising.

There are many reasons why professional car traders choose to buy with ADESA. A recent UK customer study has highlighted the areas customers are most pleased with, confirming that the online car auction platform is delivering a high level of customer satisfaction along with great deals.

“We know that one of the main things customers want is ease and simplicity”, says Johan Meyssen, CEO at ADESA Europe. “And ADESA’s user-friendly website is a very attractive drawcard”. The study shows that the majority of customers choose ADESA primarily for the simplicity of its platform and its straightforward purchase process. Additionally, customers also highlighted that they appreciate our fair car prices.

“The study has cemented that we have been right to focus so much on our website; on building a straightforward, user-friendly platform for online car auctions,” Meyssen says.

“This effort is continuing to pay off. Online auctions are the preferred way of buying for the vast majority of our customers, which reveals a lot about the future of professional car trading—and our favourable position in that landscape.”

The study also shows that customers overall have positive expectations about the sales of used cars in their market: More than 70% stated that they expect the sales of used cars to stabilise or increase in the UK throughout 2023.

Overall, customers experience ADESA as a professional, trusted and service-oriented partner. It’s a reputation that ADESA is excited to build on. The year ahead is set to be lucrative for the company and its customers alike—a true win-win scenario, brimming with opportunities.

ABOUT ADESA UK

ADESA UK, a subsidiary of OPENLANE, Inc. (NYSE: KAR) 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 OPENLANE, Inc. (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

Winner of the GES competion in issue 12 was John Garrioch (pictured left) of J.A.G. Auto Engineers in Stirling. John correctly guessed the answer was 2.5 tonne and is now the proud owner of a brand new Dama Low Profile Trolley Jack.

We are delighted to announce the opening of our new facility in Aberdeen to further Enhance our service to the Scottish Motor trade.

Alongside our Glenrothes and Dundee depots we now have three warehouses stocking in excess of 100,000 tyres from economy brands through our suite of midrange offerings to all the major tyre manufacturers.

All of this is supported with our fleet of fifty plus vans and we also now offer a next day courier service to those customers out with our delivery areas.

ANDERSON CLARK MOTOR REPAIRS

SMTA Tell us about your work in the local community?

GC We recently installed a defibrillator on the outside of our building with public access 24/7. It has already been used once so far.

Every Christmas we give money to a local charity who buy Christmas presents for children who are unlikely to receive anything.

A primary school just a short distance from our garage received a financial donation from us to keep physical education a priority in the school.

The Highland Hospice, one of our favourite charities, had a fund-raising cycle event sponsored by us.

Mikeysline, a Highland Mental Health Support charity, launched a fundraising challenge for local businesses to walk 1 million steps in a month (between its work force). Anderson Clark Motor Repairs more than doubled it!.

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

GC Installing the defibrillator is probably the one I’m most excited about. Hopefully it will save someone’s life and our staff have been trained to use it.

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

GC We see a need and respond to it so it comes as a surprise when

we receive recognition for it. It’s a good feeling to stop and see how much has actually been achieved by us as a team.

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

GC It’s essential for the local community to benefit from local businesses. So much funding has been cut by local government that many charities are on their knees.

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?

GC Our business has thrived in a fairly impoverished area of Inverness. It’s only right that we give back to those who live in it. There are many needs out there

SMTA Graham you also won our President’s Award 2022 in addition to your C.A.R. Star Award — congratulations again! Your business has accumulated multiple awards over the years, how do you feel about that?

GC It’s fantastic to be acknowledged for all our efforts and is testimony to our hard working team. We’ve attended some of these award ceremonies feeling very much the underdog and come away with the top prize. I feel particularly honoured to receive the President’s Award as I always assume it’s for the big hitters! I’m just the owner of a wee independent garage in Inverness.

SMTA talks to Graham Clark from Car Star Awards Winner, Anderson Clark Motor Repairs.

SMTA Can you tell our readers how you came to be in the motor trade?

GC I had a neighbour who tinkered with cars and used to let me help him. It got me hooked to learn professionally.

SMTA What are your plans for the future?

GC We do a lot of commercial work now and struggle with keeping big vans on our premises. We’re currently preparing to extend our car park to make this easier.

Some of our technicians are being trained to Electric and Hybrid Vehicle level 4 to futureproof the business.

SMTA What’s the key to your success?

GC Implementing good practice, continual training and keeping abreast of changes within the industry are key to success. We have never deviated from our slogan — “Cutting costs, not corners” — and strive for honesty and integrity in all we do.

SMTA What’s the best advice you would give to someone starting their own garage business?

GC Great advice I had from someone when we first started up 27 years ago was to have a 3 month reserve of funds — during the pandemic that was a Godsend for us.

Self-Sharpening Grain

Mirka’s innovative Galaxy abrasive combines effectiveness with long life, thanks to a new self-sharpening ceramic grain, a clog resistant coating and the new Multifit™ hole configuration.

For further information or to arrange a demonstration, please contact Customer Services on 01908 866100.

LICENSED TYRE WASTE MANAGEMENT FACILITY

3 Waste Tyre Collections with a reliable service to suit all customer needs.

3 We accept various sizes from motorcycles to truck tyres.

3 SEPA Licensed Waste Management Facility.

3 Now accepting waste deliveries booked in to our site, call us for a quote by the tonnage.

3 We specialise in clearing large sites and premises of waste tyres.

3 All areas covered within mainland Scotland.

Location:

Unit 1b, 179 Drakemire Drive, Castlemilk, Glasgow, G45 9SS

T: 0141 634 6951

E: Info@caledoniarecycling.co.uk

ONCE-IN-ALIFETIME CHANCE TO WIN A PIECE OF SNAP-ON HISTORY!

In 1920, Snap-on founder Joseph Johnson, an engineer from Milwaukee and co-worker William Seidemann commissioned the build of a unique Snap-on liveried, Model-T Ford to help spread the word and showcase their revolutionary set of five handles and ten sockets.

The Snap-on car was based on an original Ford Model-T chassis, the Model-T for was another revolutionary engineering icon and one of the most popular cars of its era. The original Snap-on car was built in 1920. Noticeable features include a custom body with built-in display cases and drawers lined with a 20” x 22” green billiard cloth, which would later be give the name of the “magic green cloth”.

As part of the Snap-on Centennial celebrations in 2020, an original 1923 Ford Model-T was commissioned to be refurbished as a replica of the original Snap-on car.

One lucky Snap-on customer will have the chance of owning a piece of Snap-on history.

Every customer that buys a new Snap-on Intelligent Diagnostics platform on software subscription between Feb 13th and June 30th will qualify to be entered into a prize draw which will take place on the 7th July 2023. Here the name of one lucky customer will be drawn at random to win the Snap-on Ford Model-T replica.

Speak to your Snap-on Franchisee for more information or scan the code opposite.

Original Snap-on Model-T Ford located in Snap-on Museum, Kenosha, Wisconsin

by Debbie McKay Commercial Director, MotoNovo Finance

THE CONSUMER DUTY – A CALL FOR MEANINGFUL PARTNERSHIPS

“We consider there to be existing drivers of harm in this portfolio (Motor Finance) in several of the areas of focus for The Duty, which has led us to prioritise this portfolio for assessing implementation of The Duty requirements in firm practices.”

This quote was included in a Dear CEO/ Director letter issued by the Financial Conduct Authority (FCA) to Motor Finance providers on March 1st; a similar letter went to Credit Brokers. The letters stressed the significance of embracing the Consumer Duty across Motor Finance. I want to highlight four issues to be addressed/ considered.

1. THE CONSUMER PRINCIPLE  AVOIDANCE OF HARM

The new Consumer Principle requires firms to act to deliver good outcomes for retail customers. ‘Good outcomes’ is mentioned 38 times in the Consumer Duty Final Guidance, ‘harm’ 163 times and ‘foreseeable customer harm’ 56 times.

Good outcomes and avoiding foreseeable harm must go hand-in-hand in our planning.

2. MANUFACTURERS AND ‘COMANUFACTURERS’

To meet their regulatory commitments, firms are classified as Manufacturers, Distributors, or Co-Manufacturers.

Finance companies are Manufacturers of their products/services. Dealers/ Brokers usually consider themselves to be

Distributors. However, the FCA’s recent letter highlights that, ‘a firm would be considered a co-manufacturer where they can determine or materially influence the manufacture of a product or service. As an example, if a lender negotiates an APR price-point with a dealer or broker firm, the firms may need to consider whether the lender is making the pricing decisions or if the dealer or broker has a material influence on this.’

For dealers/brokers to avoid being considered Co-Manufacturers, all pricing elements and material decisions need to rest with lenders.

3. PARTNERSHIPS

Greater dealer/broker oversight by lenders is required. In particular, lenders must undertake enhanced monitoring of Dealers’ compliance with CONC requirements ensuring customers have sufficient precontract information at the point-of-sale to understand how products work to make appropriately informed decisions.

4. FAIR VALUE - COMMISSION MODELS/DISCLOSURE

Delivering fair value, one of the four outcomes sought by the FCA, has people

considering commission model implications.

The current regulatory position notes; ‘A credit broker must prominently disclose to a customer in good time before a credit agreement or a consumer hire agreement is entered into, the existence and nature of any commission or fee or other remuneration payable to the credit broker by the lender.’

The FCA’s letter to Credit Brokers offers valuable guidance;

‘Firms need to assess their approach to product sales (including incentives and commission models) and identify whether harm is foreseeable as a consequence of that approach, then act to prevent it from happening.’

GOING FORWARD

The Consumer Duty comes into force on July 31st. Ahead of this, at MotoNovo we will help our dealers/brokers preparation with tools/ support to assist them.

A mobile scissor lift with 3 tonne lifting capacity and 1000mm lifting height. This high quality mobile lift is easily manoeuvred into position to offer the greatest flexibility in workshop efficiency.

Ideal for tyre bays, bodyshops and mechanical inspections. This unit is single phase and therefore has the flexibility of being able to be used anywhere in the workshop. Requires compressed air to operate safety locking.

Features

Ideal for quick mechanical workshops. Mobile lift with mobility kit for easy movement

Extendible ramps fixed to increase the range of vehicles to support and services. Pneumatic release system to reduce noise emissions. Mechanical safety lock to ensure secure locking avoiding imbalances.

Dama HDM3.0MV Mobile Scissor Lift

by Jacqueline Whyte, Director of Audit at Thomson Cooper

HOW EXPOSED IS YOUR BUSINESS TO FRAUD? COULD IT HAPPEN TO ME?

People commit fraud for one of two reasons: greed or need. With the cost-of-living crisis perhaps ‘need’ is higher than ever and therefore the potential for fraud is elevated. Fraud also requires motive or opportunity. There is little that can be done to mitigate against motive but there are steps businesses can take to reduce opportunity. Whilst businesses often focus on technological threats, what about the everyday opportunities that exist offline? What steps can you take to reduce exposure to these risks within your business?

RISK REGISTER AND CONTROLS

Do you have a formal risk register? The answer to this probably depends on the size and complexity of your business. If there is no formal risk register, how often do you step back and consider which areas of your business could be susceptible to fraud? Fraud can take a number of forms, either internal to an organisation or external. Let us first consider this from an internal perspective.

Fraud is commonly committed by people exploiting weaknesses in internal controls. Whilst it is impossible to completely eradicate fraud risk, by considering weaknesses and designing controls to minimise them, businesses can mitigate these risks to an acceptable level. A risk register often helps to identify what or where such weaknesses could occur.

TYPES OF FRAUD

Common types of fraud include:

y Misappropriation of assets – using company assets for personal purposes, theft of cash or stock.

y Customer fraud – theft.

y Supply chain fraud – paying for goods that are not delivered to you or your customers but diverted to a third party.

y Payroll fraud – do all employees on the payroll actually exist? Are they being paid at the correct rates per their contract?

y Financial fraud – management override of controls, unnecessary provisions, inflating results to meet bonus targets or bank covenants.

Consider the examples above in the context of your own business, and ask yourself which areas of your business are most susceptible to fraud:

y do you have physical restrictions over access to stock? Is access limited to those who require it? Do you carry out monthly or annual stocktakes?

y Are staff using company time and resources to repair their own vehicles or those owned by family and friends?

y Are delivery notes tied up to purchase orders to ensure all goods ordered are actually delivered? Are suppliers overcharging for products?

y What procedures are in place for accepting and banking cash? How is cash recorded? Do you carry out spot checks on cash?

y Who authorises payroll payments? Is it possible to create a fictitious employee and divert funds to a personal bank account?

y What procedures are in place to authorise a change in supplier bank details?

y Are key financial ratios such as gross margin, stock turnover days or creditors days reviewed on a regular basis?

OPPORTUNITY CREATES RISK

Wherever there is an opportunity there is a fraud risk. Three of the main areas where fraud may occur are:

y Staff

y Customers

y Suppliers

Consider the following in relation to these areas:

y How well do you know your staff? Are there any indications of financial difficulties? Have there been unexplained changes in lifestyle? Has there been an increase in customer complaints?

y Do you have new customers placing high volume orders who haven’t been properly vetted? Are existing customers placing unusually high value orders and requesting changes to delivery addresses?

y Have suppliers requested changes to payment and delivery addresses? Are goods of a poorer quality than usual? Are they supplying unofficial parts?

Considering the questions posed above should help to set you on your journey to identifying opportunities for fraud and how to create a strong control environment to reduce risk wherever possible. Consider what controls exist and how effective they are. Monitor controls regularly and strengthen them or implement new controls if required. Remember fraud prevention is not a one-off exercise.

PREVENTION

Tips to prevent fraud include:

y Be wary. If something sounds too good to be true it probably is.

y Know your business, staff, customers and suppliers.

y Talk to staff about fraud prevention measures and ensure they know how to spot the warning signs.

y Think like a fraudster – how could weaknesses be exploited?

CONCLUSION

It will never happen to me and I thought he/ she was trustworthy are common words used when frauds are uncovered.

Consider the impact if your business became a victim of fraud. Could it affect the long-term future of the business and perhaps cause reputational damage? Carrying out a risk assessment, implementing robust controls and having good financial management will all contribute towards minimising the risk of fraud.

Jacqueline Whyte is the Director of Audit at Thomson Cooper Accountants. She is an experienced audit specialist who manages the firm’s audit compliance responsibilities, as well as overseeing many of the firm’s largest audit engagements.

www.thomsoncooper.com

MARKET INSIGHT

by Samer Cheaitou, Trainee Solicitor, Just Employment Law

WITHOUT PREJUDICE OFFERS, PROTECTED CONVERSATIONS AND SETTLEMENT AGREEMENTS

Where there is a dispute in the workplace, or where an employment relationship is not working out, an employer may wish to enter negotiations with an employee with a view to agreeing a mutual termination of their employment. This can save time and help to avoid other lengthy employment law processes.

A risk of holding this conversation is that an employee could potentially refuse the offer and rely on it in any Tribunal claim as evidence that the employer wanted to “get rid” of them. However, there are two ways that an employer can discuss mutual termination with an employee, with less risk of the offer being disclosable.

Firstly, an employer can make a without prejudice offer, which will not be disclosable in any future legal proceedings. To be able to make a without prejudice offer, there must be a dispute in place between the parties. It would be dangerous to assume a dispute exists unless the employee has stated their dissatisfaction or disagreement with the employer clearly.

Secondly, an employer can hold a “protected conversation” with an employee. This also allows an employer to make an offer with a view to the employee agreeing on the mutual termination of their employment. However, the key

difference is that there need not already be a dispute in place. This has the advantage of allowing an employer to explore mutual termination where a dispute has not yet crystallised, such as prior to starting disciplinary proceedings or a redundancy process, or simply where the employer feels the employment relationship is not working out. However, the protection given by a protected conversation is much narrower. Whilst without prejudice offers cannot be admitted in any legal proceedings, protected conversations are only inadmissible in ordinary unfair dismissal claims. This means that an employee could disclose the contents of a protected conversation to an employment tribunal if they have another claim besides unfair dismissal, such as a discrimination claim.

Irrespective of whether negotiations have taken place on a without prejudice basis or as a protected conversation, the aim will be that the

employee agrees to termination of employment and settles all potential claims under a settlement agreement. In return, the employee will usually receive a financial package from the employer, which will typically include a taxable payment for the employee’s notice period and a termination payment, which can usually be paid tax-free up to a limit of £30,000.

Employees must receive advice from a qualified lawyer or specialist adviser in order for any settlement agreement to be valid. It is therefore always recommended that the employer takes legal advice before making a settlement offer to an employee.

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.

• Business peaks, annual leave, training days and sickness cover

• Fully qualified and vetted vehicle technicians and MOT testers

• Contracts lasting from one day to six months at a time

• UK-wide network of over 450 contractors

• Flexible work patterns: early, late, night & weekend shifts SHORT-STAFFED?

WE PROVIDE RELIABLE TEMPORARY COVER FOR ABSENT TECHNICIANS AND MOT TESTERS IN YOUR WORKSHOP.

Contact us today to book your contractor!

Tel: 0141 4134 021

Email: hello@autotechrecruit.co.uk Web: autotechrecruit.co.uk

NEED FRESH TALENT FOR YOUR WORKSHOP?

TAKE OUR INTERN TO CHECK THEIR POTENTIAL AS A PERMANENT EMPLOYEE.

• 6 to 12-month paid internships are a new, risk-free way of bringing new talent to your workshop

• Vetted candidates with a recent IMI Level 3 automotive qualification, equipped with a starter toolkit, basic safety workwear and uniform

• Assess your intern’s skills and work ethic before commiting to bringing them on as a permanent employee

• Over 200 candidates ready for an immediate start

We have interns ready to fill roles. Get in touch today!

Tel: 0141 4134 021

Email: hello@autotechacademy.co.uk

Web: autotechacademy.co.uk

CHARITY PARTNERS 2023

Find out more about two of the new charity partners SMTA will be proudly supporting in 2023.

SCOTLAND’S CHARITY AIR AMBULANCE SAVES AND IMPROVES LIVES ACROSS SCOTLAND EVERY DAY.

SCAA is a charity-funded Helicopter Emergency Medical Service (HEMS) that flies life-saving paramedic and doctor-led teams straight to the scene of time-critical emergencies. SCAA then transports patients to hospitals all over Scotland to receive the most appropriate medical care.

As a charity 100% funded by donations, SCAA depends on the public’s generosity to keep flying and saving lives in Scotland. SCAA –marking its 10th anniversary in 2023 - operates across the entire 30,000 square miles of the Scottish mainland and surrounding islands and has responded to almost 5,000 call outs to those most in need.

SCAA makes a difference - a patient’s chance of survival and full recovery are greatly increased if they receive the right medical care within the first hour of injury or illness. The fast response of SCAA and its ability to reach Scotland’s most remote and rural areas saves vital minutes when every second really does count.

Working in partnership with the Scottish Ambulance Service (SAS), SCAA is an integral part of Scotland’s frontline emergency response network. The charity operates two helicopters, Helimed76 at Perth and Helimed 79 in Aberdeen, as well as a rapid response vehicle at each base.

If you would like to hear more about how your business could support SCAA, please get in touch with our Partnerships Manager Ross Martin at r.martin@scaa.org.uk

07599 108336

ERSKINE. CARING FOR VETERANS SINCE 1916.

Erskine’s strength lies in the very special blend of dedicated care, compassion and understanding we offer to residents and their families.

Erskine care for nearly 1,000 residents each year; our care homes provide Veterans with the companionship of like-minded people. Erskine not only care for their Veterans – we care about them.

Our person-centred care is tailored to the needs of each individual Veteran. All bedrooms open to a general living space with dining areas and are fully accessible with en-suite facilities. The dedicated activities team provide social activities, entertainment and organise day or evening trips which are of huge importance to resident’s health and wellbeing.

For Veterans who need help to begin the next chapter of their lives, Erskine offers social, recreation and training facilities at the Activity Centre, single and family accommodation and employment opportunities in partnership with Scotland Bravest Manufacturing Co.all within a Veterans Village setting supporting Veterans of all ages. You can find out more about Erskine at erskine.org.uk

OurServices

Our services for Veterans and their families address three fundamental needs – Care, Accommodation and Community.

Spotlight On - Transitional Supported Accommodation

Sometimes the transition from military to civvy street can be challenging. 24 apartments, known as David Boyle Court, give Veterans of working age accommodation and support to help begin the next chapter of their lives.

Support for when plans are disrupted

The apartments are available for Veterans whose life or transition plans have been disrupted. Personalised support programmes enable Veterans to reflect, re-orientate and retrain. They can then relocate to the region and employment of their choice and go on to give back to their community in the way we know they can.

More than a place to call home Veterans can also access social, recreation and training facilities at the Erskine Reid Macewen Activity Centre (ERMAC).

One Veteran came to stay at David Boyd Court when they needed to find suitable, affordable accommodation close to Glasgow to attend an intense treatment plan at a local hospital.

The treatment went well and, thanks to your support, we are now supporting them to find suitable employment and long term accommodation.

IMPROVING MILEAGE RECORDING ERRORS IN THE MOT TESTING SERVICE

Every year, we receive over 14,000 requests to correct MOT mileage readings through our contact centre and directly via GOV.UK.

Incorrect readings can go unnoticed by vehicle owners at the time of test. But at the point of trying to sell the vehicle, errors are highlighted by online car sales websites, dealerships or potential buyers.

Recording the odometer reading is a part of the MOT test. The tester enters the mileage into the MOT Testing Service (MTS). After the test is complete, the reading is shown on the MOT certificate and on the vehicle’s online MOT History.

RESEARCHING MILEAGE ERRORS

After conducting some user research visits at MOT testing stations, we were able to understand how and why errors in mileage recordings occur. Speaking with MOT testers, we were able to broadly categorise reasons why mistakes are made due to Entering incorrect readings, Reading and entering incorrect numbers and Dyslexia and dyscalculia

HELPING TESTERS RECOGNISE ERRORS

Last July we added a new feature to MTS to highlight differences entered in the odometer reading in comparison to the previous MOT test. If the reading is the same as the previous one, or considerably different, a warning message now tells the tester if the reading is lower than, or significantly higher than the last test.

The feedback from the research was that the message is helpful in identifying potential mistakes when entering mileage readings. When the message is shown, testers must confirm that the reading they’ve entered is correct or edit and correct the reading.

system, reducing the amount of information that has to be manually typed into MTS.

WHAT TO DO IF YOU THINK THE MILEAGE IS RECORDED INCORRECTLY

Since the new feature launched, the warning message has been triggered 1.5 million times, which equates to around 4% of all MOT Tests; this has resulted in 42% of these being reentered, avoiding future corrections.

FUTURE IMPROVEMENTS

We have identified some content improvements to the odometer warning message, such as displaying last years’ mileage reading. This will make it easier to compare the readings and help testers quickly realise if they have made an error. This is part of our on-going design and research looking at other improvements to make the screen even more helpful in identifying mistakes.

Recognising that we have thousands of MOT testers who have difficulties in entering data into MTS, we are working on improvements to automate MOT data entry. Connected equipment was the first step in automating test results into the

With the best of intentions, unfortunately mistakes can occur. Where errors are noticed within 28 days of the MOT being conducted, these can be corrected and a replacement certificate produced by the MOT centre.

Where errors are noticed over 28 days, these must be reported to DVSA. You will also need to email proof of the mileage, such as a scan or a photo of:

y An invoice for the MOT

y An emissions printout

y A service receipt

y A vehicle job card from the MOT centre

They need to show what the mileage should be, and show the same date as the MOT test.

This is important as if you do not send the right evidence, DVSA will not fix the mistakes.

Courtesy DVSA Matters of Testing

“YOU HAVE TO DOUBLECHECK IT. IT’S THERE TO HELP YOU.”

by Simon King Managing Director, Autotech Group

AUTOMOTIVE RECRUITMENT STRATEGIES TO ATTRACT TALENT IN A CANDIDATE DRIVEN MARKET

SHORT-STAFFED?

WE PROVIDE RELIABLE TEMPORARY COVER ABSENT TECHNICIANS AND MOT TESTERS YOUR WORKSHOP.

To gain and retain new talent today, automotive employers need to exhaust the channels available to them and be open to new recruitment strategies in a bid to reach a wider audience.

Employee retention has been a real problem for some time across the sector. Over recent years the issue has been exacerbated and is now affecting other industries across Scotland too. As the skills shortage continues to bite, automotive employers need to ensure they widen the net and tap into all available routes to attract and retain talent.

PLAY THE FLEXIBILITY GAME……

2022 was a candidate’s market and this year is following suit. People are seeking a greater level of flexibility and employment on their own terms and, if they don’t get it in their current job, they are very likely to look elsewhere.

According to the Future World of Work Report 2023*, the structure of the UK workforce is changing profoundly. Flexibility is the key driver of this change, and 65% of businesses surveyed revealed they understood the need to play the ‘flexibility game’ to attract the right people as it opens them up to a much wider pool of talent. But flexibility isn’t a one size fits all solution, and of course, for the automotive industry,

working from home really isn’t an option. It may be choosing the hours they work and when they work to strike a better work life balance.

Also, using temporary vehicle technicians and MOT testers to cover resource gaps, whether brought on by sick leave, holiday or a lack of available talent, is a solution automotive bosses should be considering. For employers, 64%* say that using contractors helps them to address the skills gap, while enabling them to turn the tap on and off as needed when it comes to specialist support.

YOUR INDUSTRY NEEDS YOU BACK…..

It’s widely known that the automotive industry is fishing for talent in a rapidly depleting pool. While there are initiatives in place to upskill existing workers and harness a new generation, it’s also important to communicate the opportunities within the industry to those who left, attracted by the progression and opportunities of other sectors. As an industry we need to lure them

that the industry could be tapping into. Technicians who, faced with the evolution of vehicles, opted to retire early rather than upskill, are now starting to return to working and flexibility is key. Rising inflation, and the cost of living crisis is fuelling a reversal of the Great Resignation, people of retirement age are using flexibility to return to the workforce in ways that work better for them.

NEED FRESH TALENT FOR YOUR WORKSHOP?

TAKE OUR INTERN CHECK THEIR POTENTIAL AS A PERMANENT EMPLOYEE.

HARNESSING THE POWER OF TECHNOLOGY

For years, we have talked about the rapid digitalisation of the automotive industry but using automation to recruit is a relatively new phenomenon. If used effectively though, recruitment

technology can significantly cut down on repetitive, time-consuming work, affording the employer time to build a better rapport with potential candidates.

There are interminable routes available today to attracting and gaining talent, employers just need to broaden their reach and tap into all the channels available to them, these small incremental changes made across the whole industry might just start to fill the skills gap void.

www.autotechgroup.co.uk

Image credit - gpointstudio

MARCH RISE DRIVES UK CAR PRODUCTION FIRST QUARTER INCREASE

y UK car production up 6.0% in first quarter of 2023 to 219,887 units as supply shortages begin to ease.

y March output rises 6.1% to 81,605 units with 10.4% exports growth offsetting -5.1% home market decline.

y Hybrid, plug-in hybrid and battery electric vehicle production surges 75.0% in March.

UK car production rose 6.0% in the first three months of 2023, to 219,887 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). As the global shortage of semiconductors and other components begins to ease, factories produced 12,540 units more than Q1 last year, driven by exports which increased 6.6% and represented almost eight in 10 cars made.

March rounded off the period with volumes up 6.1% to 81,605 as, again, exports drove growth, up 10.4% to 61,546 units, offsetting a -5.1% decline in car production for the UK as 20,059 cars were made for the domestic market. At 63.6%, the EU took the largest share of exported cars, (39,172 units), as shipments rose 4.9%, while those to the next biggest markets, the US and China declined -4.1% and -8.3% respectively.

Exports to Turkey, Japan, Australia and South Korea, meanwhile, all rose, though combined they represented just 11.9% of all cars heading abroad in March. Canada, Mexico and Israel rounded off the top 10 markets for UK car exports last month, with only those to Canada down, by 111 units.

British car makers continued to manufacture the latest hybrid, plug-in hybrid and battery electric vehicles, with combined volumes of these models surging 75.0% in March to 32,546 units. Four in 10 cars built in the month featured ultra-low or zero emission powertrain technology. This trend is set to continue as new products come on stream, with more than 20 models of electric cars, vans, buses, trucks and taxis expected to be in production in the UK by 2025.

Mike Hawes, SMMT Chief Executive, said, “A second consecutive month of growth for UK car production gives cause for optimism, though volumes are still well below prepandemic levels. If British car manufacturing is to get back towards those levels, with all the economic benefits that brings, we need to match the best in global competitiveness. That means driving down the high cost of UK energy, reforming business rates and vigorously promoting Britain globally to secure the investments essential to a zero carbon automotive future.”

Article courtesy of SMMT

SMTA ANNUAL DINNER AND AWARDS 2023

THURSDAY 26TH OCTOBER 2023

HILTON GLASGOW WILLIAM STREET, GLASGOW

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.

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

Drinks Reception Sponsor

FEMALES IN FOCUS 2023

FRIDAY 22ND SEPTEMBER 2023

GRAND CENTRAL HOTEL, GLASGOW

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.

A nomination form can be found on our website or contact karen. thompson@smta.co.uk for more information.

TICKETS

Table of 8 – £500 + VAT

Individual tickets – £70 + VAT

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

SPONSORSHIP

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

Supporting Sponsors

Headline Speaker –Ann-Maree Morrison MBE

Hosted by –Heather Dewar

Drinks Reception Sponsor

MANAGEMENT LIABILITIES —PROTECTING YOUR BUSINESS AND YOUR PERSONAL ASSETS

As a Director, Officer or Senior Manager, you play an active role in the day-to-day management and success of the business. Having autonomy and making strategic and operational decisions can be empowering and rewarding—but also risky. You’ll be exposed to legal actions against the company and yourself. The consequences can be severe, from being disqualified as a director to potentially leading to imprisonment if criminally liable.

Let’s examine the management liability insurance and related cover available to protect you and your business.

WHAT IS MANAGEMENT LIABILITY INSURANCE?

Management liability insurance is an insurance package designed for small and medium-sized private companies (SMEs) and limited liability partnerships (LLPs).

By combining three areas of risk into one single policy: Directors and Officers Liability (D&O), Employment Practice Liability (EPL) and Company Legal Liability (CLL), it offers financial protection to both senior management and the company against a range of allegations.

WHAT DOES DIRECTORS AND OFFICERS INSURANCE COVER?

Protecting the personal wealth of directors, officers and employees, generally speaking, D&O covers the following types of claims:

y Securities violations—insider trading or securities fraud.

y Mismanagement— failure to properly manage company finances or operations.

y Harassment and discrimination.

y Shareholder derivative suits—claims

brought by shareholders, including other directors.

y Breach of fiduciary duty—self-dealing or conflict of interest.

y Regulatory investigations—failure to comply with environmental or trading standards laws and regulations.

THE MAIN BENEFITS OF HAVING A D&O INSURANCE POLICY INCLUDE:

y Financial protection—defending against claims and any damages awarded.

y Legal representation—experienced lawyers who can defend against claims and negotiate settlements.

y Reputation protection—effective dispute resolution limits the possibility of negative publicity.

y Attract and retain top talent— demonstrates the company’s commitment to protecting its leaders.

y Peace of mind—knowing they, and their personal assets, are protected.

WHAT DOES EMPLOYMENT PRACTICE LIABILITY INSURANCE COVER?

Protection against legal costs and financial award, EPL insurance covers the following types of claims made by employees or job applicants:

y Wrongful termination—discrimination or retaliation.

y Discrimination—allegations of discrimination based on race, gender, age, religion, or other protected class.

y Harassment—sexual harassment, racial harassment, or other forms of

workplace harassment.

y Retaliation—for reporting illegal or unethical behaviour.

y Wage and hour violations—such as failure to pay overtime.

y Employee benefits claims—for example, failure to provide required benefits.

y Negligent hiring—claims the business was negligent in hiring a dangerous or unqualified employee.

WHAT IS CORPORATE LEGAL LIABILITY INSURANCE?

CLL insurance is similar to D&O insurance but defends claims made against the company as opposed to individuals:

y Maladministration of a company pension.

y Employee benefit claims.

y Breaches of data protection.

y Corporate identity crime.

y Health and safety, taxation or other regulatory claims.

WHY DO YOU NEED MANAGEMENT LIABILITY INSURANCE?

Management liability insurance is important to SMEs due to the following factors:

y SMEs are just as vulnerable as large companies.

y Directors’ personal assets are at risk.

y Defending legal action can be costly.

y Employment practice claims remain a significant threat to directors.

y Protection in case of bankruptcy or insolvency.

Even if a claim is false, you still have to defend it. The legal costs and other expenses incurred during a dispute could be significant, not to mention the damage to your reputation and your business.

If you have any queries about this article, please do not hesitate to get in contact with your dedicated SMTA point of contact, Howden Skimming: Email: howden. skimming@marshcommercial.co.uk

by Darren Fletcher, Legal Advisor at Lawgistics

DEFEATING THE KEYBOARD WARRIORS

We live in a world where brave men and women routinely step into the breach on our behalf.

Regrettably, these “warriors” are mostly armed with a keyboard, and the bullets fired are generally aimed at hardworking and conscientious businesses.

These “brave” people view their actions as a reasonable negotiating ploy. And understandably, in many instances, as companies would rather avoid any kind of bad publicity, they may seek to settle when they could continue to defend their position.

However, one-star reviews do not have to be the end of the argument. You do have rights with the online platforms, and you can seize the initiative back.

Here are a few tips/golden rules to follow:

1. ACT QUICKLY

The sooner you react to the review, the sooner it can be removed, and the sooner the customer’s complaint can be resolved. And, potentially, a happy customer is more likely to reverse a 1-star review to a 5-star review.

2. REPORT MULTIPLE REVIEWS ABOUT THE SAME PURCHASE

If multiple reviews seem to be from the same purchase, then report them. Most online platforms’ rules include that only the purchaser can submit a review, not their family and pets too.

3. DO NOT GET INTO AN ONLINE “TIT FOR TAT” ARGUMENT WITH THE CUSTOMER

Most online reviews are submitted and read by adults. And, as adults, they can

differentiate between somebody with a genuine issue and somebody being malicious. They can see when a review needs to be read with “a pinch of salt”. If you reply negatively to a poor review, it looks unprofessional and any sympathy you may have had from others, including potential customers, instantly dissolves. Be the bigger person online.

7. CONTACT THE WEBSITE AND REQUEST THE REVIEW IS REMOVED

The website team will need to be satisfied the review is false, vindictive, etc., or falls foul of their terms and conditions. However, not every bad review is completely false, and if the website team can justify their position, then it is unlikely the comments will be removed, and it will be left for the general public to draw their own conclusions. If the review is left online, then tip number 4, above, is important.

4.

WRITE A REASONABLE AND DETAILED RESPONSE AS A REPLY TO THE REVIEW

You should deal with the situation as it is and offer a solution if there is one. Set out your side of the story in a reasonable manner, so the customer is either in no doubt that you are in the right, or if you are not, you have been trying to resolve things from the off. How someone sees you dealing with a complaint can certainly sway them as potential customers.

5. TAKE IT OFFLINE

Conduct your negotiations and discussions with the reviewer by telephone or email, not in a public forum. Again, your reputation has more to lose in the glare of an online forum.

6. COMPROMISE

If you can reach a compromise with the customer, ask them to remove the review as part of the settlement.

Lawgistics are always here to help, as what may begin as a negative review molehill can very quickly blow up into a negative review legal mountain.

Conversely, there is some good news for companies faced with a keyboard warrior. In 2021, a defamation case resulted in the Claimant, a firm of solicitors, being awarded £25,000 for defamation. It is worth setting out that the Defendant called the firm “scam solicitors”, and the solicitors were able to show the court a downturn in enquiries following the review. Also, the Defendant was a litigant in person and did not turn up to the court hearing.

This type of case is unusual, and although not the norm, it is possible to pursue a defamation claim and be successful. However, the cost of doing so can be expensive, and should only be undertaken by legal services who are experts in this area.

PICK-UPS FOR PEACE

In support of the heroic efforts of the 24th Lviv Danylo Brigade we have already sent 100 used pick-up trucks or 4x4’s laden with urgently required supplies from the UK to the front line in Ukraine. We are looking to send a further 100 vehicles by the end of July.

WHAT CAN YOU DO TO HELP?

DONATE YOUR OLD PICK-UP OR 4WD

Speaking to the leadership of the 24th Brigade they urgently require supplies in many areas, from protective clothing and drones through to 4WD pickups and vehicles to transport people and supplies to the troops on the front line.

Following previously successful delivery of reliable 4WDs to the Brigade we see a real opportunity for the UK Farming Community to provide direct support through donating their second hand pick-ups or similar.

The charitable organization which supports the 24th Lviv Danylo Separate Mechanized Brigade in Ukraine

For further information or donations please contact us on the following:

e-mail: pickupsforpeace@memus.com

phone:

+44 7917 017 818

www.justgiving.com/

crowdfunding/help-cpg-ukraine

Bank Account

CPG Pickups for Peace

Sort Code: 83-91-55

Account: 11014302

24th Lviv Dynylo Brigade

WHAT CAN YOU DO TO HELP?

DONATE SUPPLIES OR YOUR TIME

Whilst the primary focus is on identifying 200 pickups and 4WDs for donation we shall take the opportunity to load these vehicles with other donated or purchased aid items from medical supplies to winter jackets etc.

WHAT CAN YOU DO TO HELP?

DONATE FUNDS TO SUPPORT

We know that not everyone has a spare pickup or the time to drive one across Europe, however we shall still require further support in the form of funding to pay transportation or accommodation and flights back for some of the drivers.

This can either be donated directly to our funding account or by credit card through the just-giving web link on the next page. All funds will be managed by an independent committee.

ITEMS REQUIRED

All of the following are needed by the 24th Brigade Pick-up trucks & 4WD vehicles

WHAT WE NEED

TECH INSIGHT

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 AutoINSIGHT.

PROVIDED BY

RANGE ROVER EVOQUE 2016MY TO 2019MY DIESEL AND PETROL. FAULT CODE B11DB-87

TECHNICAL CASE BY ROB MILLER

Situation: The battery charge warning lamp may be displayed in the Instrument Cluster with Diagnostic Trouble Code (DTC) B11DB-87 stored in the Body Control Module (BCM).

Cause: This may be caused by a blown Battery Monitoring System (BMS) fused harness.

Symptoms:

• B11DB-87 Battery Monitoring Module A - Missing message

• Battery monitoring system circuit open circuit, high resistance

• Battery monitoring system internal failure

• Auxiliary junction box internal failure

INITIAL CHECKS

A pin-point test is available to help diagnose DTC B11DB-87. For additional information, refer to: Battery (414-01 Battery, Mounting and Cables, Diagnosis and Testing).

1. Check the integrity of the battery monitoring system connectors. Repair as required.

2. Check the battery monitoring system control module circuit between the BMS and the auxiliary junction box. Repair the wiring harness as necessary.

3. Check the battery monitoring system circuit for open circuit, high resistance between the BMS and the auxiliary battery positive terminal. Repair as required.

4. Clear the Diagnostic Trouble Code(s) and retest. Then perform routine - Power Supply Service Mode Diagnostic

5. If the fault persists, check and install a new battery monitoring system control module as required.

6. Check the LIN circuit between the Battery Monitoring System Module and the Gateway module.

7. Should also check LIN control unit power and ground circuits.

CIRCUIT

C1DC05A: Module-Battery monitoring system

C1DC05A-1 Green-White LIN circuit to the Central Junction Box

C1DC05A-2 Blue-Orange inline fuse fed from the positive terminal of the battery, this gives the BMS a true battery voltage direct from the battery and can monitor it sending out a signal on the LIN wire to the GWM gateway module this then transmits a signal to the generator via a private LIN between the GWM and the Generator.

The BMS is ground through its fixings to the negative post of the battery then off to a chassis earth point.

FURTHER CHECKS:

Ensure that the power supply from the battery is present on the Blue-Orange wire.

• No, suspect inline fuse has blown and will require a replacement subharness

(Contact dealer or supplier for VIN specific part number image above)

• Yes, carry on with next check

Ground Supply is present and good, if not clean BMS mating face and body/ chassis earth point.

LIN CIRCUIT

This is on the Green-White wire usually 1-volt below battery voltage. This goes from the BMS to the Central Junction Box CJB as previously described.

Measure the voltage at the BMS connector C1DC05A-1 Green-White and then compare this reading to the one at the GWM.

The GWM connector is known as C1Y122: Module-Gateway Location Behind passenger side of Instrument panel on the Left hand inner lower A post red connector with 20 cavities. Remove out locking cover taking note of insert position relative to the GWM and refit it.

Locate the Green -White wire at C1Y1223 Measure the voltage here does it match that of the BMS connector?

• YES, suspect BMS unit faulty,

• NO, resistance pulling down the voltage. Disconnect connectors and load test it.

No voltage present, check continuity and load test the wire if open circuit suspect a break in the wire examples of such break as below in the attached images.

In this instance they had to remove scuttle panel and the abs module bracket, lift abs module up out the way!

MERCEDES-BENZ:

Models affected: Mercedes-Benz - all models with electric cooling pumps

Issue / Symptoms: Yellow coolant warning on Instrument cluster and possible fault in the PTCU (power train module) “The rpm of component ‘Coolant pump’ is too high” following the coolant system being opened.

Cause: The fault can be caused by air in the coolant system allowing the pump(s) to run dry and over speed.

Repair Guidance:

The coolant system must be drained, filled and bled as per WIS instructions (group 20) using all the required tools. Do not replace the pump, they have a “dry run detection” that turns them off to prevent damage.

TMD FRICTION ISSUES ADVICE ON BRAKE FLUID CHANGES AND CHECKS

Scott Irwin MIMI, Head of Technical Training at TMD Friction offers best practice on brake fluid, advising on when it should be changed and the differences in grades of brake fluid.

Affected Vehicles: Renault Clio 3 (2004 - 2009) – All variants with K9K engines and JA5 and JR5 manual gearboxes

Modus (2004 - 2009) – All variants with K9K engines and JA5 and JR5 manual gearboxes

Symptoms: Vibration, humming sound, or judder through the vehicle when stationary.

Additional Information: Can be felt in neutral at idle speed through pedals dashboard and seat base

Possible Causes: Upper engine mount failed

REPAIR STEPS

1. Check and confirm vibration.

2. Whilst sitting in the vehicle raise the engine RPM from idle and see if the noise stops.

3. Visually check upper engine mount (see picture).

4. Using an assistant get them to manipulate the mounting by adding pressure to it using a lever bar in the areas shown.

5. If noise stops or changes pitch remove and check the mounting.

6. If any fault is found, consider replacement of the mounting.

7. Once the new part is fitted confirm noise has been corrected.

PARTS REQUIRED: Upper engine mount (8200140431)

HOW OFTEN SHOULD BRAKE FLUID BE TESTED AND CHANGED?

The process of testing brake fluid is straight forward, and exact boiling points can be identified easily using a brake fluid tester. The dangers associated with driving a vehicle running on old brake fluid can be life threatening, and this test needs to be seen as a standard check that is critical to the health of a vehicle. Brake fluid deteriorates over time and is not greatly affected by distance travelled. Always follow the vehicle manufacturer’s recommendation on when to change the brake fluid.

WHAT’S

THE

DIFFERENCE BETWEEN DOT 3, DOT 4, DOT 5.1, AND ESP?

The original grade DOT 3 was the standard brake fluid for many years, and it still is in some territories, particularly in North America. However, DOT 3 grades tend to suffer from steep boiling point decline over time, and DOT 4 fluids were developed to counteract this. They contain polyglycol ether esters, which chemically bind the water and dramatically slow the decline in boiling point.

DOT 5.1 fluids are a development of DOT 4, having not only higher boiling points, and retaining them even better than DOT 4 in service, but also having a much-improved viscosity at low temperatures.

Technicians should always use the fluid type specified by the vehicle manufacturer to avoid mixing each variation. It is possible to mix some glycolbased fluids but never DOT 5, as this is silicone based.

IS DOT 5 THE SAME AS DOT 5.1?

No. DOT 5 is silicone-based, and DOT 5.1 is glycol ether-based. The reason for this is historical; the DOT 5 standard was originally written for silicone brake fluids that have a much lower tendency to pick up water. However, it wasn’t long before conventional fluids were developed to meet the same standard –these were designated DOT 5.1.

Unless the customer is a classic car driver, for most purposes conventional fluids are better. Silicones have some major advantages (not least their lack of hygroscopicity) but this is more than outweighed by some major disadvantages.

Silicone-based fluids are hydrophobic as opposed to hygroscopic and will not absorb water. Therefore, DOT 5 is considered to have a very long lifespan and is commonly used in vehicles that need to be stored for long periods of time, but ready to go at the drop of a hat such as military and classic cars.

DOES BRAKE FLUID HAVE A SHELF LIFE?

It does. It is hygroscopic (it absorbs moisture from the atmosphere) and this happens to a small extent, even when packaged in closed bottles. As the product absorbs water, its boiling point declines. The magnitude of this decline depends upon factors such as the storage conditions, the thickness of the bottle, the type of closure used, the container size and material and the grade of brake fluid.

When brake fluid is in a vehicle, water will find its way through microscopic pores in brake hoses, seals and joints. Even when it’s on the shelf, unopened bottles can absorb moisture from the atmosphere and should not be kept on the shelf for long periods of time.

So, for brake fluids stored in a temperate climate, a shelf life of approximately 18 -24 months from the date of production can be expected. Under tropical conditions, the equivalent period would be 12 months.

COOLANT LIGHT ON IN INSTRUMENT CLUSTER AND COOLANT PUMP OVER SPEED FAULT IN PTCU

RENAULT CLIO VIBRATION, HUMMING SOUND, OR JUDDER THROUGH THE VEHICLE WHEN STATIONARY

TOP 10 MARQUES

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.

LEADING FRICTION ENGINEERING MANUFACTURING TESTING