SMTA Auto Insight – Issue 14

Page 1

PROCEEDING

WITH CAUTION

– THE NEW USED-MARKET LANDSCAPE SCOTTISH MOTOR SHOW

CELEBRATING 120 YEARS OF THE SMTA: MEMBER PROFILE:

The Magazine for Scottish Motor Professionals brought to you by Supported by Incorporating
ISSUE 14
THE TURBO GUY

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:

WELCOME TO ISSUE 14

COX AUTOMOTIVE

Proceeding with caution

120 YEARS OF SMTA

We celebrate the Scottish Motor Show’s history

MEMBER PROFILE

The Turbo Guy, Glasgow

GES COMPETITION

Win a Redashe LED Palm Light

SMTA CHARITY PARTNER

A Bear Named Buttony

JUST EMPLOYMENT LAW

Flexible working requests

TECH INSIGHT

Opus IVS & TMD Friction provide technical advice

DVSA MATTERS OF TESTING

Their strategic vision and the future of the MOT

As we go to print August is bowing out and September on the horizon, the records confirm the wettest July on record and August was not brilliant for many, weather wise! Fortunately the automotive business in general has continued to prosper with members of all shapes and sizes reporting decent used car business, those that provide new cars see the supply situation improving and aftersales providers the length and breadth of the country continue to operate with long leads times for repairs.

All good then? Not so, we are hearing of increased delivery times for components needed to complete repairs, unrealistic (surely not) customer expectations that require disproportionate levels of time to manage, and recruitment becoming increasingly challenging, especially for vehicle technicians. So there are a number of priorities we all now face, the biggest of which is skills! We have been saying this for far too long and yet the problem continues, as an industry we have relied on being able to recruit fresh talent by stealing someone else’s, this forces up costs and often just creates a merry-go-round predominately with vehicle technicians. We all know 2030 is coming and despite any late change of date by the UK Government the demand for properly skilled technicians to maintain and repair the growing electric vehicle market place will literally go through the roof.

In Scotland, this shortage will be exacerbated by a Government that is failing to recognise the need of our industry. Various cut backs in funding for the Modern Apprentice programme are resulting in some of Scotland’s colleges having to turn away young people seeking to come into our sector as they can’t access the relevant funding, in some cases the colleges are having to make decisions about the delivery of training for our sector completely and in at least one college they have had to resign themselves to the fact that they will not offer training beyond 2024!

This sad state of affairs has come about in Springburn in Glasgow, once the centre of heavy industry for the British Empire! This is not a political statement but simply me highlighting the very real concern I have as the Chief Executive of your trade association about the medium to long term future for our industry.

We all need to amplify the concerns for the future to whoever will listen, especially those who have access to politicians be they Holyrood or Westminster, without some level of intervention staff, especially technicians will become a trading currency that will be disruptive for years to come, we need to get back to “growing our own”!

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

On a more positive note, the SMTA Annual Dinner plans are well underway now with the main event taking place on the 26th of October in Glasgow’s stunning Hilton Hotel, before that however we have the Females in Focus event which is in the Grand Central Hotel in Glasgow Central Station on the 22nd of September, tickets are still available for both events, although they are selling fast!

At the Annual Dinner we will once again be presenting our Community Activity Recognition Awards and having reviewed the winners and the reasons they have been selected I must say the standard is very high this year, more details of the winners after the night but all applicants were extremely worthy of their consideration and it really is most heart warming to see the efforts that our membership goes to into making a difference within their community.

3 WWW.SMTA.CO.UK CONTENTS 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
www.smta.co.uk
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Cover Photo: Lotus Glasgow part of Park’s Motor Group

PROCEEDING WITH CAUTION – THE NEW USED-MARKET LANDSCAPE

Three years of disruption have characterised almost every nook and cranny of the automotive industry. Bumps in the road have included production shortages, European conflict, shifting OEM strategies towards the agency model and electrification, among other things. These factors will have long-term implications for the used market, too, not least concerns about the future of vehicle values for franchised and independent dealers, as well as for car supermarkets and the remarketing sector.

The answer to the question of what effect the disruption will have on used vehicle values is, arguably, simpler than it seems: the industry will undergo significant changes, and the way businesses operate will need to adapt to a new landscape. As previously discussed, the global loss of 42 million vehicles in production has permanently impacted the future composition of the used market. Additionally, the growing dominance of alternative fuels and battery electric as manufacturers’ preferred strategic choices will further reshape fuel type share in the industry. Industry players must acknowledge and prepare for these changes to navigate this evolving environment effectively.

The impact of supply and demand on valuations in the used sector has become remarkably evident, particularly in recent months. Significant volatility in used car values has arisen in the used Battery Electric Vehicle (BEV) sector, where oversupply has coincided with low demand. Consequently, this has posed challenges for accurately setting residual values, highlighting the delicate balance between supply, demand, and market dynamics in determining valuations.

OUT WITH THE NEW, IN WITH THE OLD

The shifting dynamics of the used market present several challenges for retailers. A decreasing number of ICE vehicles, particularly in the zero-to-36 months market, has resulted in strong demand for petrol or diesel vehicles that are “retail ready.” However, the available supply needs to meet demand. Retailers, cautious about investing in BEVs, cite recent volatility, lack of knowledge and limited capabilities as barriers. As a result, the market has seen a rise in older and higher mileage vehicles on forecourts, reflecting retailer caution about electric vehicles.

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MARKET

Retailers operating in the used market face the added complexity of maintaining clear and concise stock profiles, implementing ageing policies, and expanding purchase channels and supply chains. As BEVs become necessary for stock profiles, recent volatility has highlighted the importance of properly positioning prices and managing inventory for these vehicles. In many cases, those who have invested time and expertise in the emerging pre-owned BEV market have demonstrated the value available in this segment.

THE FADING OF CAUTION

Certain areas in the market still need to be clarified, such as the agency space and OEM intentions to dominate the nearly new and pre-owned market. The entry of new players, such as Chinese company BYD with its Seagull and Dolphin vehicles, raises questions about their impact on the existing BEV parc. Assessing the market value of technologically older, used BEVs compared to the reported cost of entry for the latest models, with minimal risk, also poses a challenge. These new entrants are set on building market share through volume and commercial incentives.

The long-term influence of strategies being wheeled out in the new market on its used sibling remains unknown despite uncertainties. However, with supply constraints in a low consumer confidence economy and used vehicle values consistently surpassing pre-pandemic levels, concerns of a “cliff edge” in used vehicle values should diminish once the economy stabilises. Caution towards the BEV market may prevail in the short term as volume increases and knowledge expands across all sectors. That, along with the rise of alternative fuels and battery electric as the dominant fuel type, will arguably see caution fading.

The current state of the electric vehicle market poses a potential risk for the used car sector. While 64% of franchised dealers stocked BEVs as part of the used vehicle inventory in 2022, just 11% of independent dealers did. This creates uncertainty around the pricing and availability of pre-owned electric vehicles, which could lead to cautionary buying behaviour 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.

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SOLD PRICE AS A PERCENTAGE ORIGINAL NEW PRICE - BEVS ONLY SOLD PRICE AS A PERCENTAGE OF ORIGINAL NEW PRICE – ALL FUEL TYPES

MARKET INSIGHT

UK 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. 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 heightened productivity in the new vehicle market has an immediate and positive effect on the supply of used vehicles, resulting in a more abundant inventory for consumers and businesses. This, in turn, contributes to a recovery in consumer and business confidence.

y The shift towards the agency model creates a favourable ecosystem for used vehicle retailers associated with relevant OEMs. The streamlined processes and improved collaboration within the agency model lead to enhanced efficiency and profitability in the used vehicle sector.

y Similar to the new vehicle market, the recent measures implemented by the government and the Bank of England have an immediate impact on stabilising and reducing inflation and alleviating the cost-of-living burden. These initiatives foster an environment of economic stability and confidence, benefiting consumers and businesses alike.

BASELINE SCENARIO

y The market sees a steady recovery in consumer and business confidence, but the pace of improvement is relatively slow, with minimal notable shifts in demand or market dynamics.

y Economic challenges persist throughout the remainder of 2023 and a substantial recovery is not expected until early or mid-2024. Factors such as global economic conditions and energy-related issues continue to act as headwinds to overall growth.

y Consolidation and acquisition activities positively impact the transactional used vehicle market, fostering a more streamlined and efficient marketplace. However, retail pricing remains unaffected by the rise in interest rates and household expenditure, maintaining consumer pricing stability.

MORE INSIGHT FROM COX AUTOMOTIVE

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

DOWNSIDE SCENARIO

y The prevailing economic challenges, including the escalating cost-ofliving and energy crises, and broader economic headwinds intensify, creating a highly challenging business environment for the automotive industry. These factors negatively impact consumer spending and overall market conditions.

y The market experiences a significant shift from used vehicles towards new ones, which becomes even more pronounced as the oversupply of new vehicles leads to intense competition and heavy discounting. This, in turn, further erodes the value of used cars, making it difficult for sellers to achieve satisfactory returns on their inventory.

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. This exacerbates the supply and demand imbalance, making it increasingly challenging for dealerships to sell existing stock causing a backlog in the market.

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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

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CELEBRATING 120 YEARS OF SMTA

IN THIS ISSUE WE LOOK BACK AT THE HEYDAY OF THE SCOTTISH MOTOR SHOW

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The cover of the 1981 programme and two ads from 1953 and 1973
Above:

Below: Some weel-kent faces, but how many can you name?

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GES COMPETITION WINNER

Last issue’s competition attracted so many entries we decided to reward two winners. They were; Rob McWilliam (pictured below), Managing Director of A M Phillip Trucktech Ltd in Forfar; and Paul Quilliam (pictured left), proprietor of Quilliam Vehicle Maintenance in Lossiemouth. Both of them correctly knew the answer was “20 Volts” and each won a cordless Impact Gun.

Thanks to everyone who entered, you can find this issue’s competion on page 14. Good luck!

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g Lambda sensor positioning in the exhaust system has many descriptions throughout the automotive industry and can vary depending on diagnostic tool and manufacturer. For example, ‘Sensor 1’ could be known as regulating, front, upstream, pre-cat or upper. ‘Sensor 2’ can be referred to by some as diagnostic, rear, downstream, post-cat or lower. So be sure to double check before you fit!

g When fault codes relate to the Lambda sensor heater control it is best to interrogate the entire circuit for an accurate repair. To eliminate the sensor; check there is a resistance reading between the two Lambda sensor heater wires (most common place between many sensor manufacturers are the two white wires). No continuity confirms the element is broken. Ensure any reading is aligned within the VM’s tolerance.

g Sometimes a fault code can be read that correctly relates to an issue with the Lambda sensor and replacing it can cure the issue. However, upon the removal of the sensor, closely inspect the inside of the connector for any oil contamination – however slight. On some vehicle models it is known for an engine oil leak to allow oil to enter the wiring loom. This can then migrate to other areas of the loom via capillary action.

With the growing demand for today’s vehicles to be more economical and environmentally friendly while retaining performance, it is becoming more and more vital to fit the right sensors.
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SMTA MEETS THE TURBO GUY

SMTA How did you come to start up?

AM I was working in IT, doing some parttime car dealing and mechanical repairs from home, when I had an occasion to need a turbo repaired. When I discovered there was no-one in Scotland that was doing this I got to work researching. I got in touch with Turbocharger Services who are aTurbo repair parts distributor based in Huddersfield. They helped me out with some basic training and I went down to get some hands on training, This was in 2010. I was convinced there was a market in Scotland

SMTA How has the business grown since then?

AM We started with just me and we have now got 27 staff and are the largest independent remanufacturer in the UK, supplying distributors and repairers across the UK. We recently moved to a much larger factory allowing much larger production capability. We supply a number of the major Motor Factor groups, and have carved out our reputation as having high stock levels and always have rare and unusual Turbos in stock including lots of very new part numbers.

SMTA Can you run us through a typical day?

AM We have a factory line that takes batches of turbos through from stripdown, cleaning and inspection, parts identified and them final assembly, and testing. We have 15 people on this from 8 till 5 everyday. Alongside this our warehouse team pick and pack units and send them out both on our local delivery van and across the UK via next day courier. We usually deal with 50- 60 boxes a day, and don’t forget that most of our parts are on exchange, so we have the same number of old units arriving every day that need inspected, loaded on to the system and put way. Meanwhile our telesales team are taking calls all day, the phone never stops ringing!

SMTA What’s the one thing your business couldn’t function without?

AM Our Operations Director Kyle McAleer, he joined the business the day after his 16th birthday and now aged 23 effectively runs most aspects of the business and has the respect of the entire team. He truly shows that if you trust in young people and nurture them, they will work hard and be loyal.

SMTA What’s the best thing about working for yourself?

AM It’s the most secure job in the world, its all entirely down to what you do and the decisions you make. If something doesn’t work or you want to change something, its entirely up to me. Having previously worked for a multi-national corporate, you really are at the mercy of other peoples actions.

SMTA And the hardest part?

AM The hardest part so far of being self employed is understanding cash flow. Alot of our customers are on 60days accounts so it is always frustrating waiting and cashing payments.

SMTA How does your SMTA / Scotsure membership help?

AM We want the credibility of being a member and ensuring that our local Scottish members know that we are on their wavelength and have the same challenges they do

SMTA Where will your business be in five years’ time?

AM We plan to continue to expand as the market is growing rapidly. We keep ahead of the market and always

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SMTA talks to Allan Mitchell, Owner and Managing Director of Glasgow-based turbo specialists, The Turbo Guy.
MEMBER PROFILE

looking at nearly new vehicles and researching which units will be the next big sellers. We are aiming to increase our factory throughput to get 1,000 units remanufactured in house over the next 12 months.

SMTA How do you maintain customer levels?

AM We have the best stock in the UK, anytime a customer has to look elsewhere, you run the risk that they might not come back to us. We attend all the trade shows we can and have a very active marketing function, with many of you in Scotland will, hopefully have had several postcards through the post at some point from us reminding everyone where we are an what we do

SMTA What is the biggest challenge for your business right now?

AM The biggest challenge is sourcing enough old units to get production levels up. With less people buying new cars and less cars getting scrapped, there are less old turbos in the market. We need to pay top dollar and build good relationships with Core brokers to try and first chance on the best stock.

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

AM Build strong relationships with Suppliers and stay loyal to them, we tend not to shop around for stuff, if you are getting a good product and service then keep that going, nobody wants a race to the bottom on price.

www.theturboguy.com / 0141 649 9426

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WIN ONE OF

REDASHE LED PALM LIGHTS

JLED-150 Palm Light

The Palm held 2W COB work light is ideal for maintenance, professionals, mechanics, drivers, supervisors etc. The 2W COB light produces 200 lumens for a flooding beam of focused light.

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Super strong magnetic base makes it easy to mount onto any metallic surface for hands free use

Comes fitted with a pocket / belt clip for easy mobility and rotating hook

Constructed from a light weight and durable ABS body with a rubber coating Micro USB charging port protected by rubberized bezel

The small print; no purchase necessary, free to enter draw, no alternative price will be offered, closing date for submission 30th September 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. COMPETITION
SIMPLY EMAIL YOUR ANSWER TO: norman.stirling@smta.co.uk Need help? Please call Niall Farmer of GES Scotland on 07483 827734
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THE IMPORTANCE OF DIVERSITY, EQUITY & INCLUSION ACROSS MOTOR RETAILING

Across the automotive industry, we need more talented people. Something that has become evident within MotoNovo as our DE&I programme has gained momentum is that sometimes, the talent sought is right there in front of you.

To put these potential befits in context, two of my colleagues were recognised last September at the Women in Credit Awards. National Account Manager Shamaila Madeley, who has worked in the automotive finance sector for over twenty years, was recognised as Colleague of the Year. While Cathy Addicott, 75, one of our Customer Relationship Advisors won the Lifetime Achievement Award. Hardly newcomers to the industry, both have flourished in an environment without barriers to success.

As a business, our commitment to embracing DE&I has helped us to retain and recruit talented people who welcome the culture we have developed; it has also enabled us to release untapped skills and energy from people who previously had not felt able to stretch themselves, or perhaps more accurately we had not encouraged effectively.

MOTONOVO’S GROW NETWORK

Active members of The Automotive 30% Club, whose ‘30 by 30’ strategy aims to see at least 30% of key leadership positions in the automotive sector held by talented women by 2030, last year, we launched GROW (Generating Real Opportunities for Women).

It is an initiative designed to support our motor retailer and broker partners and increase female representation across motor retailing levels.

The network’s programme of events has seen it increase understanding in areas such as unconscious bias, challenging, supporting and encouraging meaningful discussions about gender issues in motor retailing. Above all, it is about encouraging everyone to appreciate the value of providing career opportunities for women at all levels as part of a broader move to embrace diversity and inclusion.

With vacancies at a 20-year high, analysis by the IMI has highlighted the importance of DE&I in addressing the automotive industry skills shortage. They pointed out that a more diverse workforce is critical to turning the tide, and a lack of role models is a fundamental

barrier to achieving that goal.

Focusing on gender disparity, the IMI’s work highlighted a clear issue. Just 19% of women were in senior roles compared to 39% in the non-automotive workforce. It is this type of gap that GROW aims to address, inspiring more people to choose the automotive sector as a career choice.

Apart from addressing the talent shortage in the automotive sector, evidence points to the impact it can have on business performance.

Inclusive businesses with a better gender balance are more successful, and that goes for small family-owned and large organisations.

At MotoNovo, our DE&I journey is well underway, and we encourage others to follow and are happy to share our experiences to date.

MARKET INSIGHT
“At MotoNovo, we are delighted to be a sponsor at the forthcoming SMTA Females in Focus annual event, to be held in Glasgow on September 22nd. Diversity, equity and inclusion (DE&I) is a significant area of focus for MotoNovo.”
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AVOIDING THE PAIN OF PAYE PENALTIES.

As the famous quote by Greek philosopher Heraclitus goes “Change is the only constant in life.” It certainly feels like that when running a business. The everchanging landscape of taxation and associated regulations that need to be navigated means there are many boxes to tick to remain compliant.

MARKET INSIGHT
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Business owners often focus on the road ahead, making plans to improve their products and services, expand into new markets, etc. However, it sometimes pays to look back. Reviewing certain areas of your business can not only help you avoid costly mistakes, it can also identify potential savings.

EMPLOYMENT TAXES ARE MAJOR CONTRIBUTOR TO THE TREASURY

HMRC are under increasing pressure to increase the resources given to enforcement activities in order to reduce the amount owned in unpaid tax (which stood at an estimated £42Bn in June 2022).

Given that employment taxes are the largest annual contributor to the Treasury it is no surprise that HMRC are likely to focus their attention there.

Historically, employers could expect a PAYE review from HMRC every 6 years or so. A more intelligence/risk-based approach is currently adopted by HMRC. As more business owners struggle to attract and retain the best talent, enhanced benefits packages and other incentives have become more commonplace. These can often be complex to administer and report accurately, and result in costly errors.

MAIN AREAS OF RISK

An overview of current hot topics and areas of risk where HMRC will focus include:

Status of workers

HMRC will want to review any off-payroll engagements and compliance with intermediaries (IR35) legislation.

Coronavirus Job Retention Scheme (CJRS)

Given the multiple legislative variations over the claim period, HMRC are of the view significant overclaims may have been made.

Salary Sacrifice

Incomplete or incorrect systems in this respect remain one of the main reasons for settlements arising from HMRC PAYE compliance checks.

Company vehicles

Mistakes remain common in connection with categorisation of pool cars and commercial vehicles for benefit-in-kind purposes (particularly in relation to crew-cab or ‘multipurpose’ vehicles).

The provision of fuel is another area where there are compliance issues.

Staff entertaining and gifts

HMRC would look to confirm the appropriate exemptions have been applied correctly and any expenditure not covered returned to HMRC.

Benefits and expenses

HMRC will review expense claims, mileage records and internal processes to check compliance.

Termination packages

To review the treatment of notice pay and the application of tax and NIC exemptions.

Payroll Administration

Whilst unlikely to be the source of any major discrepancies from a tax or NIC perspective, a high-level review of procedures will be undertaken to evaluate the effectiveness of the payroll function, including pensions.

Picking up on an area above in terms of potential exposure, taking a vehicle recently classified by the courts as a car for benefit-inkind purposes, a modified VW Kombi T5.

HMRC are able to go back 6 years and, if the vehicle has been incorrectly classified for this period, an additional liability of around £70,000 can arise for the employee (not counting interest and penalties) and the employer would have additional exposure of £23,000. Were the employer to meet the employee’s liability, the value would ‘grossup’ which would create a charge of around £137,000 for one vehicle over 6 tax years!

HOW CAN BUSINESSES MANAGE THEIR PAYE RISK?

Have you been targeted for a HMRC compliance visit? Thinking of selling your business? Undertaking a due diligence project or just need peace of mind? There are many reasons a business may wish to review their performance in terms of compliance so they can remedy any issues. An examination of a business’s payroll, benefits and expenses is not a requirement of an audit, particularly as the audit concept of an error being ‘material’ does not apply in tax. Employers should not therefore assume that a lack of comment from their auditors or accountants means that their PAYE procedures are in order.

Employers may wish to arrange for their tax advisor to undertake a PAYE health check (essentially mirroring an HMRC review). This check is a comprehensive review of a business’ policies and procedures to ensure it is delivering the correct results in terms of compliance with HMRC. A review will highlight any areas of concern (in terms of both risks and opportunities) and provide practical recommendations for actions required to move forward.

Keith Hunter is a Senior Tax Manager with Thomson Cooper Accountants. He specialises in personal and employment taxes and is a Chartered Tax Advisor (CTA). Keith has previous experience as an Officer with HM Revenue & Customs where he was involved in various aspects of PAYE and Self-Assessment.

www.thomsoncooper.com

Van Car Benefit in kind –Vehicle £3,960 £22,122 Benefit in kind – Fuel £757 £10,286 Higher rate tax payer pays (42%) £1,981 £13,611 Employer pays NIC (13.8%) £651 £4,472 Overall tax cost £2,632 £18,083 19 WWW.SMTA.CO.UK

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WARRANTIES TO SUIT YOUR INDIVIDUAL REQUIREMENTS

ALL WARRANTIES FULLY UNDERWRITTEN BY EUROPE’S LEADING WARRANTY PROVIDER

SCOTSURE IS WHOLLY OWNED BY THE SCOTTISH MOTOR TRADE ASSOCIATION LTD

Why should I choose a Scotsure warranty?

ALL CLAIMS AND ADMINISTRATION HANDLED FROM OUR OFFICES IN SOUTH QUEENSFERRY ROADSIDE RESCUE COVER AVAILABLE

Scotsure MBI has been providing used car warranties since 1982 and is wholly owned by the Scottish Motor Trade Association Ltd. It is this provenance and experience that ensures that if you have a problem, we will deal with your claim quickly, efficiently, and perhaps most importantly of all, fairly.

Scotsure warranties provide peace of mind and protect your pocket!

Ask about extending your warranty today! E: lynn.greig@smta.co.uk T: 0131 331 5512

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.

www.easityre.com If you are in the Motor Trade Why not use the easity optio t easityre tion? easityre Glenrothes 2-3 Blackwood Road Eastfield Industrial Estate Glenrothes Fife KY7 4NP Freephone: 0800 085 5515 easityre Dundee Smeaton Road West Gourdie Industrial Estate Dundee DD2 4UT Freephone: 0800 2800 114 easityre Aberdeen Units A1&A2 Airport Industrial Park Howe Moss Drive Kirkhill Ind. Estate Dyce, Aberdeen AB21 0GL Call: 01382 225230 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
Glenrothes or
Dundee & Aberdeen
5515
0800 2800 114

MORE THAN JUST A BEAR

Feeling isolated and alone due to a lack of support and available information, and with the prospect of her young daughter facing stoma surgery, Jenny Gow developed a unique way of helping her daughter to accept her need for a stoma. How do you explain to a young child what a stoma is or why they toilet differently to their sibling or friend.

CHARITY PARTNER 2023

SO WHAT IS A STOMA?

A stoma is an opening on the abdomen which connects to your digestive or urinary system. A stoma can be used to drain the contents of the bowel or bladder into a bag or to facilitate a channel through to the bowel or bladder to allow management of certain conditions. Surgically formed for reasons such as bowel disease, bowel or bladder malformation, genetic disease or trauma, stomas can be performed in children within the first days of life. What for many should be a joyous occasion can quickly become one of worry, fear and desperation as their young one undergoes life changing surgery.

22 WWW.SMTA.CO.UK
SMTA are proudly supporting A Bear Named Buttony in 2023.

Vowing not to let others go through a similar experience Jenny set up ‘A Bear Named Buttony’ with the support of friends. She turned her own unique idea into one that could help so many other families avoid some of the distress and difficulty that she, her husband and her young daughter had experienced… and so Buttony Bear was born.

A simple, yet very effective concept; Buttony Bear is a teddy bear with a ‘button’ stoma. Teddy bears have been around since the early 20th century and are loved by children the world over. They provide unquestionable friendship and unlimited support having been present at countless children’s tea parties, bedtime cuddles, car journeys, first days of school, moments of illness and so many other occasions.

The concept of a button stoma with a small stoma bag attached over the top is one that children can interact with. They can remove or re-attach the bag as many times as they wish to help with understanding and acceptance. Buttony bear fully conforms to UKCA marking standards.

However Buttony is more than just an educational tool. Buttony is someone who listens, gives confidence, brings a muchneeded smile and is a friend. Most importantly Buttony is just like them.

Since its humble beginnings, A Bear Named Buttony has issued over 5500 bears to children around the UK. In the last few years, the charity has published a story book - A Friend Just Like Me – aimed at young children. In collaboration with a child psychologist the book takes children on a simple, yet effective, journey while Buttony searches for someone ‘just like me’. This beautifully

illustrated story book helps children to understand that they are not alone.

Their latest addition to the ‘Buttony’ range is an inclusive colouring book. A set of easy to colour illustrations each of which show Buttony in an everyday setting that a child is familiar with to highlight that a stoma doesn’t have to stop them doing the things that they enjoy.

For older children, the charity offers a Young Adult pack (available from specialist nurses only) – a toilet bag with a small sample of non-medical items which a young person can store their dressings and other related items in discreetly within in an educational setting. The idea behind this is to encourage independence.

We caught up with Jenny Gow MBE, Buttony founder, together with some of the parents of children that have benefitted from the charity’s support.

Jenny said, “A Bear Named Buttony prides itself in supporting such a brave and wonderful community of children and their families. We are a very small part of their journey but from the feedback we receive, it is a very effective one which makes the role of all our volunteers so much more worthwhile.

As a charity we are self-funding and rely solely on donations and it is heart-warming to see how so many of the children want to give something back from donating their pocket money, to taking part in sponsored events and local collections to hosting their own events and even appearing on television, all in the name of Buttony.”

Sophie, mum to William

“My son, 3, recently had surgery to create a colostomy. He’s adjusted fantastically, however he noticed that he’s different to the other family members. He’s absolutely thrilled to have been sent a bear, his first words at seeing buttony were ‘he’s like me mummy!’ The book is also amazing for teaching other children about stomas, William loved taking it to nursery to show his friends.

I can’t thank you all enough for your hard work. You make a real difference to children that are going through a difficult time.“

Amy, mum to Jameson

“Jameson was gifted his Buttony Bear when he was 8 weeks old. Although he is still too young to understand it, the book and Buttony have been wonderful for us to explain everything to his 3-year-old sister. We read the book regularly and I know that both will be treasured for years to come as such an important part of Jameson’s journey.”

23 WWW.SMTA.CO.UK HOW YOU CAN HELP Website: www.buttonybear.org.uk Facebook: www.facebook.com/buttonybears Link to donate: www.justgiving.com/buttonybear
A Friend Just Like Me
by Kathryn Bradley A Friend Just Like Me illustrated by Georgina Croll by Kathryn Bradley

IS YOUR WARRANTY OFFERING WORKING HARD ENOUGH FOR YOU?

average warranty terms have reportedly increased throughout the industry, which is definitely the case at Warranty First too.

Recent changes to regulation are undoubtedly going to affect the landscape of F&I incomes for many dealers across the UK. To support this, Warranty First continues to invest heavily in its bespoke training solutions, which are offered to all the company’s dealer partners - completely free of charge.

It should be a given that your warranty partner provides outstanding levels of cover and a first-class service that directly benefits you and your customers. Making warranty work differently, Warranty First can turn claims around rapidly, and keep customers firmly in the picture about their vehicle - that’s the easy part!

As well as offering a range of great products and an outstanding service to match, Warranty First dealer partners are also able to benefit from free regular consultations - no matter where they may be based in the UK. Its expert Account Managers are located nationwide and their job is to really understand how warranty is working in your business right now, as well as addressing the wider future goals too.

Working hand-in-hand with your dealership, the team can help you build a roadmap that makes warranty a key factor in achieving your business goals; Warranty First will equip you with the tools to turn it into a high performing

profit centre - and quicker than you may think!

WARRANTY THAT PUTS YOU FIRST

So how does it work? Following an initial consultation visit, your dedicated Warranty

First Account Manager will return to your dealership to present a robust and personal development programme specifically for your business and individual needs. These are tailored to you and your team, as well as aligning the ambition of your goals. No two businesses are the same, so it’s a bespokebuilt development package just for youbecause Warranty First are there to put YOU first.

Once the proposal is agreed, your Account Manager will start to bring your warranty product to life using the roadmap you’ve agreed together. They will keep you firmly in the picture of your dealership’s progress and evolve the plan over time as your business grows and reshapes. You’ll also be able to stay informed every step of the way of your warranty incomes, thanks to Warranty First’s live dashboard that is available to access 24/7.

It’s no secret that consumers always want to know what protection they will have after purchasing a used vehicle. Furthermore,

What this news highlights is that there has never been a better combination of market factors in situ than now, to ensure that warranty should be at the forefront of addon products being offered by dealerships up and down the country. The demand on the motor trade is there and Warranty First can help dealers deliver on it deal after deal.

The company continues to have such a positive impact on many dealers nationwide and is actively seeking new partnerships to benefit from its successes. If you’re keen to work with a team that is passionate about the performance of your business, then Warranty First would love to hear from you.

This is the question asked by Warranty First to dealers up and down the country when they enquire about warranty services, and it’s never been a more important one to address…
Visit the online home of Warranty First at www.warrantyfirst.co.uk and give the team a call on 01733 830278 or send an enquiry via the website.
ADVERTORIAL 24 WWW.SMTA.CO.UK

Batteries and beyond.

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

Ecobat Battery, 36a Vanguard Way, Battlefield Enterprise Park, Shrewsbury, SY1 3TG, UK +44 (0)1743 218500 | is.info@ecobat.com VISIT US AT ECOBATBATTERY.COM

THE CHANGING FACE OF BATTERIES

DOES THE 12-VOLT BATTERY HAVE A FUTURE?

Although the vehicle manufacturers (VMs) had made AGM (absorbent glass mat), and subsequently, the enhanced flooded battery (EFB) their primary power storage solution for micro-hybrid (start/stop enabled) applications, primarily because motorists chose to override the start/stop function in their vehicles, these batteries were not failing at the age that was originally anticipated. This anomaly was simply because they were only making a fraction of the number of starts they were designed to, so were lasting far longer than anticipated. However, the landscape has changed significantly.

Research undertaken by panEuropean battery distributor Ecobat Battery, which is a major distributor for, among other brands, Exide and VARTA, both key OE suppliers of AGM and EFB batteries, reveals that although in 2019 just 6% and 1% of battery replacements were AGM and EFB respectively, by 2022 the figures were 15% and 5%. Moreover, this trend will continue and is forecast to achieve double-digit growth every year to reach 28% and 12% in 2027, just four years from now.

This development is reflected by both Exide and VARTA significantly increasing the AGM and EFB range

they offer, not just to address the need for replacement batteries for start/stop vehicle applications, but new energy vehicles (electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles) as well.

The reason for this range expansion is that, irrespective of the primary drive system of the vehicle – combustion engine, engine combined with a 48volt or 350-volt battery, or a 400-volt battery in a fully electric vehicle – a ‘traditional’ 12-volt AGM/EFB battery is also fitted. Once again, this is a long term trend as VMs recognise the need to ensure their vehicles have a suitable and reliable reserve power supply, should the battery used in the drivetrain be exhausted

So, the reality for the independent aftermarket is that although the primary function of these 12-volt batteries will evolve, from starting the engine to servicing increased electrical load and critical safety functions, the demand for OE quality replacement batteries will remain for the foreseeable future.

MARKET INSIGHT FOR FURTHER DETAILS Visit Ecobat Battery at: www.ecobatbattery.com
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BATTERY BEST PRACTICE

Although it’s not possible to cover every best practice principle in a single piece of advice, here are three simple first steps that will certainly pay dividends to any workshop.

1) INITIATE A BATTERY TESTING REGIME.

Ecobat Battery has found that 27% of the vehicles that enter the independent workshop need either their batteries recharged or reconditioned, and a further 11% need a replacement, which means that almost 40% of the vehicles they service daily have a battery issue!

However, whether the vehicle is booked in for an MoT, annual service, or some sort of repair, workshops rarely test the voltage of the battery, let alone its condition. The knock-on effect is that 40% of roadside breakdowns are due to battery failure and the beneficiaries of these failures are not independent workshops, or the factors that supply them, but breakdown services such as the AA and RAC etc.

2) RESET THE VEHICLE’S ECU AFTER AN AGM OR EFB START/ STOP BATTERY HAS BEEN REPLACED.

Unless the vehicle has been modified and requires an upgraded battery, technicians should always ensure they install a replacement of the same standard as the vehicle’s OE fitment, so if it’s an AGM or EFB battery at first fit, the replacement should be the same. However, if a higher capacity battery is required, it is possible to replace an EFB with an AGM version, but remember, an AGM cannot be replaced by an EFB and, irrespective of the type, both need to be reprogrammed into the vehicle’s energy management system. If this reprogramming is not carried out correctly it can cause issues with, or even failure of, the start/stop function, which can result in increased fuel consumption and also affect the vehicle’s comfort functions, for example.

3) ENSURE THE CORRECT VOLTAGE TO THE VEHICLE’S ELECTRICAL SYSTEM IS MAINTAINED DURING BATTERY REPLACEMENT AND SUPPORT THE VEHICLE’S BATTERY WHEN RUNNING DIAGNOSTIC PROCESSES.

These procedures are linked, as to prevent causing unnecessary problems and to be carried out effectively, they both require a stable source of power to be constantly supplied to the vehicle’s electrical system.

However, maintaining the correct voltage during extensive periods of troubleshooting is very important, as it helps technicians to correctly identify the underlying fault. This is because during diagnostic procedures, which nowadays are commonplace, the engine is switched off, but power is still drawn from the battery, which means it can discharge the battery.

As has been demonstrated, using equipment dedicated to battery support is now a necessity in any workshop. A battery performs best when it’s in peak condition, so by reducing the possibility of battery failure in the workshop, or even worse after the customer gets home, workshops can save more than time and money, they can preserve their reputation.

100% For independent and franchised dealers. VEHICLE FUNDING* *100% of hammer price plus auction and delivery fees (auction purchases), or lower of CAP clean/invoice price (trade vehicles) + VAT funded on LCVs and qualifying vehicles up to the value of £75,000. Your partnership to profitability Buyer and delivery fees fully funded Up to 150 days of funding Same day drive away Join NextGear Capital today Apply online at nextgearcapital.co.uk/apply-now or call 0343 50 60 600 552276 27 WWW.SMTA.CO.UK

MAINTAINING QUALITY AND SKILLS – THE IMPORTANCE OF CPD

For MOT testers, not keeping up their CPD will jeopardise their ability to continue testing.

Reflecting the MOT CPD, the IMI’s TechSafe™ recognises a vehicle technician’s EV and ADAS skills and qualification achievements within the IMI Professional Register. To remain on the register, within 3 years of qualifying a technician MUST undertake between 10-18 hours of recognised CPD..

Few industries have faced such a significant upheaval as the automotive sector. Independent workshops, dealerships and garages across the country are constantly upskilling and adapting their business models to remain competitive.

The training drum has been beating within the sector for several years and the message has clearly been resonating due to increasing numbers of technicians upskilling to manage the demands of the evolving vehicle car parc.

THERE IS NO DENYING THE PROGRESSION OF VEHICLES……

Sales of new electric cars in Scotland are on a steep upward trend. While charging EV infrastructure is still not where it is needed to be, there is no denying the fact that the upcoming 2030 ICE ban will guarantee the upward trajectory of the vehicles powered by alternative sources of fuel.

Advanced Driver Assistance Systems ADAS, an innovative and futuristic technology which many believed wouldn’t feature highly in the garages and workshops of today, is quickly becoming commonplace as drivers become accustomed to and reliant upon autonomous features within their vehicles. By 2030, 44% of UK cars will have the technology.

The looming deadline of 2030, and the prospect that there will still be an anticipated shortfall of skills, is certainly pushing training further up the agenda. But embarking upon training courses shouldn’t be a singular tick the box exercise.

THE IMPORTANCE OF MAINTAINING QUALITY…….

Investing in new tools and equipment is part of a garage’s lifecycle. It just makes good business sense while also maintaining the quality of service. Due to the progression of the automotive industry, Continuous Professional Development (CPD) should be as equally vital.

To date, there are over 9,500 professionals who are registered as qualified in EV with a further 2,277 registered for ADAS on the IMI TechSafe register. This means there are almost 12,000 individuals who will need to undertake CPD within the current three year window. The IMI has created a framework to define the CPD requirements.

For employers, it ensures that they are equipping their workers with all of the current skills and knowledge and instilling confidence to ensure they can deal with the new breed of vehicles which are entering garages on a daily basis. Employees who feel invested in also feel appreciated and valued which all counts towards retention.

WE ARE BUSY ENOUGH!

The thought of fitting in CPD when a garage’s work schedule is already packed may seem overwhelming. However, CPD activities can take many forms, including activities which can be done as part of a day-to-day role.

It could be reading a relevant article, learning on the job from peers or joining an online training session – it all counts. There are many automotive-specific CPD courses available and digital spaces for the storing of vital documents; training records and certificates which count towards CPD. Autotech Training offers CPD courses and a digital repository for storage of documents and certificates which count towards Continuous Professional Development.

www.autotechtraining.co.uk

28 WWW.SMTA.CO.UK MARKET INSIGHT
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.

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.

Call Niall Farmer on 07483 827734 or email nfarmer@mpdonline.co.uk ARE YOU LOOKING TO BECOME A DVSA APPROVED MOT TEST STATION? Are you looking to upgrade your existing MOT Test Station and install connected equipment? EXCLUSIVE MEMBER OFFER £2,395 + VAT + FREE MOBILITY KIT
INCLUDES MOBILITY ADAPTOR HANDLE FREE
Dama HDM3.0MV Mobile Scissor Lift

DVSA MOT ANNUAL TRAINING & ASSESSMENT 2023/24

SMTA & IMI is offering new and existing customers an integrated eLearning package for both CPD and Annual Assessment for 2023/24.

Some of the areas you will need to study for Groups A and B: Registering a vehicle for a test • Use of equipment • Test procedures • The MOT inspection manual for motorcycles and cars (Group A) • The MOT inspection manual for cars and passenger vehicles (Group B)

SMTA MEMBER PRICE

£53.00 PLUS VAT

NON-MEMBER PRICE

£61.00 PLUS VAT

A log-in code and full instructions will be given once payment is received. Testers registering for Group A and Group B Training & Assessment at the same time will qualify for our Two for One offer and will get both registration codes (one for each group) for the price of one.

CONTACT:

Email: accounts@smta.co.uk

Telephone: 0131 331 5510

With SMTA & the IMI you will be able to complete the annual assessment and CPD package at a time and place that suits your business and print out a certificate as proof of completion.

YOUR TRAINING AND ASSESSMENT MUST BE COMPLETED BY 31 ST MARCH 2024

• 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

CHANGES TO HOW EMPLOYERS MUST DEAL WITH FLEXIBLE WORKING REQUESTS

Since 2014, all employees who have worked with the same employer for at least 26 weeks have had the right to make a statutory flexible working request. An employee can make a flexible working request in relation to their hours of work (for example, requesting to work part-time), the times that they work (for example, requesting an earlier or later start time) and their place of work (for example, requesting to work from home).

In light of the increase in more flexible ways of working since the pandemic, Parliament has recently passed the Employment Relations (Flexible Working) Act 2023, which will come into force soon, on a date to be announced. This Act is designed to make it easier for employees to make flexible working requests by making changes to the process that employers must follow when dealing with these requests, as summarised below:

y The number of flexible working requests that an employee can make in any 12 month period has been increased from one to two.

y The time that employers have to make a decision on a flexible working request has been reduced from three months to two, unless extended by agreement. Extensions may happen where the employer offers the employee a trial period of their proposed working arrangements.

y Employers now have an obligation to consult with the employee

before refusing a flexible working request. What constitutes adequate consultation is not set out, however an Employment Tribunal would expect an employer to hold at least one meeting with the employee to discuss their request and explore whether it can be implemented.

y Employees no longer need to state in their flexible working request what effect they believe their requested changes would have on the employer and how this effect might be dealt with.

Importantly, the Act does not make any changes to the list of eight reasons that an employer can rely on when refusing a statutory flexible working request. This means that employers will still be able to refuse a flexible working request where it is not possible for the business to accommodate it and one of the eight statutory grounds applies.

Nevertheless, employers should ensure that they carefully consider any flexible working request on

a case-by-case basis rather than flatly rejecting requests made by employees. This is especially the case where a flexible working request relates to an employee with an underlying health condition or to an employee with caring responsibilities (whether in relation to a child or a disabled person), as there is a risk that refusing such a request could amount to indirect disability or sex discrimination.

Just Employment Law are employment law specialists with expertise in assisting employers with a wide range of employment matters, including drafting flexible working policies and advising employers on dealing with flexible working requests. 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 www.justemploymentlaw.co.uk

MARKET INSIGHT
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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

THE ROAD TO ACHIEVING ZERO EMISSIONS: INSURING ELECTRIC FLEETS

As we approach 2030, the date set by the government to ban new petrol and diesel car sales, the demand for electric vehicles (EVs) is increasing. But the government has also committed to end sales of new nonzero emission vehicles weighing up to 26 tonnes by 2035 and vehicles over 26 tonnes by 2040.2

The UK’s road freight system is one of the most efficient in the world, contributing at least £13.6 billion to the UK economy each year.2 Transitioning to EVs is not going to be a small challenge for the road transport industry, which is typically characterised by intense competition and low margins.3

Running a successful electric fleet presents unique risks. Comprehensive haulage and logistics insurance and commercial fleet insurance are essential to help protect operations and assets and defend against liabilities.

Insurers will be looking closely at the implications for risk and insurance. This is likely to bring some uncertainty in the short term, particularly for haulage firms taking the lead in moving to EV fleets.

A relatively new market – insurers have limited risk and claims experience on which to base pricing and underwriting decisions. Specialist cover for EV fleets remains rare compared with traditional commercial fleet insurance.

Rapid evolution – it’s too early to know how EV fleet cover will change in the future, what risks will emerge, and how insurers will respond. This raises the possibility of diverse electric fleet insurance pricing, cover terms and attitudes to risk.

Premium uncertainty—electric trucks are more expensive than their petrol or diesel counterparts, meaning potentially higher costs to insure them. This may change over time, with the total cost of ownership of EV fleets expected to reach parity with diesel fleets by 2026.4

Lower maintenance costs – fewer mechanical components in an EV than in conventional vehicles can mean lower servicing and maintenance costs.5

Lower depreciation values – EVs typically retain more value over time compared with diesel and petrol. This could have implications for the asset value of fleets as they age.6

Essential training – as drivers transition to EVs, training is vital to familiarise themselves with new technologies and ensure safe operation.

ELECTRIC VEHICLE CHARGING POINT RISKS

Another key risk associated with electric fleets is likely to be around charging points, particularly as it’s a critical risk in the more established electric car market. EV fleet insurance will likely need to address issues such as:

Damage to third-party property or injury to third parties – slips, trips and falls are a big risk. Consider charging locations and how to minimise the risk of people tripping over charging cables.

Damage to charging points and associated equipment – vulnerable to theft or malicious damage. Good risk

management and insurance will need to reflect this, particularly physical security and loss of revenue if vehicles cannot be charged, as well as the likely cost of repairing or replacing EV charging points.

The infrastructure surrounding charging stations – how power is supplied to your EV charging stations and what happens if it fails.

Cyber risks – cyber security of EV charging points, which can be maliciously exploited to damage the equipment, power grid, or both. It could even result in personal data falling into the hands of hackers.

Added complexity to daily fleet utilisation – ensuring vehicles are sufficiently charged for their journeys will be vital to reducing the risk of EVs being stranded and at increased risk on our highways.

Speak to your broker about arranging electric vehicle fleet insurance and for advice on how you can manage the risks associated with electric vehicle charging points.

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

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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 © 2023 Marsh Ltd. Registered in England and Wales Number: 1507274, Registered office: 1 Tower Place West, Tower Place, London EC3R 5BU. All rights reserved.

BEEN CONTACTED BY TRADING STANDARDS? HERE’S WHAT YOU NEED TO KNOW…

Eisenhower said: “The uninspected inevitably deteriorates”. So, in each council area, Trading Standards Officers (TSOs) are employed to inspect businesses to ensure their compliance with the rules, regulations, and laws that they must adhere to. At some point, the TSOs’ attention will be on the local motor trade, of which there are many.

We often have panic-stricken members call, worried senseless about an upcoming visit from the TSOs – and our role is to demystify their needlessly created demons.

If the TSOs tell you in advance they intend to visit, then you probably have little to worry about. If they turn up unannounced, you will have more cause for concern. If they arrive with the police, you know you have problems, but thankfully, this rarely happens.

Here’s what we tell our members - and what you need to know - about Trading Standards:

1. The Consumer Rights Act 2015 is perhaps the unexpected location where TSOs derive many of their powers. Check Schedule 5 if you ever need to look!

2. If the TSOs (sometimes referred to as Weights and Measures Inspectors) want to make a “routine” inspection, they must provide written notice (unless the business waives the need to give such notice) and there must be at least two clear working days between receipt of that notice and the date of their entry onto your premises.

3. If the TSOs can provide evidence they have a reasonable belief that a business is breaking a law, it is not considered a “routine” inspection, and notice is not required. If there is an imminent risk to

public health or safety, again no notice is required – or as the TSOs often argue – advance warning of a visit defeats the object of the visit. Clearly, if there is evidence a garage is clocking cars or fitting counterfeit parts, then notice of a visit would result in evidence being removed beforehand and defeat the visit’s purpose. TSOs also do not have to give notice if they want to be at your premises for surveillance purposes.

4. Do not obstruct any TSO when on your premises as it is a criminal offence to do so. It is likely to be ineffective in any event as they will call the police. You must hand over any documents requested (keeping copies if possible) and allow the TSO unrestricted access to your premises. The TSOs can open any container they want to, and if they bring a motor mechanic to check over cars, let the mechanic do so.

5. Communication is key. It is most likely, the TSOs are there to check advertising, terms and conditions, the PDI checks you undertake, and the due diligence you have in place to ensure legal compliance. Good record-keeping for every car bought, sold, and repaired is essential.

6. Compliance with the TSOs’ visits is crucial, but you don’t have to automatically agree

with everything they say that you must action. Request a written summary of their visit, detailing anything they are unhappy with. We can advise our members if we agree or disagree with the TSOs’ report. And where appropriate, we can write on our members’ behalf explaining why we don’t agree.

7. If you wish to further engage with your Trading Standards office, consider joining their “Buy With Confidence” or similar scheme – but speak with us before you do! A “Primary Authority” relationship may also be possible if you have sites outside of your local authority boundary and we can explain this.

8. Remember when a customer tells you: “Trading Standards have told me….”, the chances are they haven’t! Consumer advice is provided by the Citizens Advice Bureau. If a consumer says: “Citizens Advice is reporting your business to Trading Standards……”. There is nothing to fear, as every call to Citizens Advice results in the local Trading Standards office being automatically notified, completely irrespective of whether a complaint is merited or not.

9. If Trading Standards write to request your attendance for a formal interview under caution or if you receive paperwork relating to a prosecution, then you must inform us immediately, so we can provide the best advice at an early juncture

MARKET INSIGHT 35 WWW.SMTA.CO.UK

FREELANDER 2 NON START (2007-2010)

TECH INSIGHT

Symptom: The customer complaint is that the vehicle does not start and that ‘steering column locked’ is shown on dash

Cause: The steering column lock has failed

REPAIR

• Check for fault codes using the DrivePro/AssistPlus

• Check vehicle configuration to see if the steering column lock has been disabled: – Use EDIT VEHICLE CONFIGURATION option on the AssistPlus. – Follow onscreen instructions and go to page 3 of 5 on the device. The top option will be for your steering column lock. If it says ‘Undefined’, edit this and change it to ‘Fitted’.

• If reconfiguring the car does not bring the lock back to life, check the wiring:

– Strip the steering cowling and under-dash trim to gain access to the steering column lock. It can be identified by the wires in the 4-way plug to the module, which are as follows:

> Pin 2 = green and orange wire

> Pin 3 = black and purple wire

> Pin 4 = grey and blue wire – Check the wiring as follows:

> Pin 3 wire is ground.

> Pin 4 wire is the LIN communication wire, so it should have 6 - 11 volts when operating correctly. (See scope trace below).

• Pin 2 wire should pulse 12 v when the key is inserted into the starter control unit.

• If wiring results are as expected, fit a new steering column lock module.

Code

CODE NEW LOCK USING THE DRIVEPRO:

• FREELANDER 2 2007 - 2010 >> BODY

>> BODY CONTROL MODULE >>

SPECIAL FUNCTIONS

• Configure new steering column module and follow the onscreen

the lock to the car by pressing PROGRAM. See page 5 on the AssistPlus.
PROVIDED BY
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.
36 WWW.SMTA.CO.UK
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.

TURBO UNDER-BOOST - VARIOUS BRANDS

Brand: VW, Audi, Seat, Skoda

Models: All vehicles with variable vane turbochargers

Symptom: Customer complaint is that vehicle lacks power or does not attain top speed.

Fault Code: Fault code P0299 = Turbo under-boost

REPAIRS

• Connect DrivePro/AssistPlus and check for any engine or engine management faults, especially any fault code indicating turbo underboost.

• If a fault code is present, connect a mityvac to the turbo waste gate, pull a vacuum and see if it holds.

• If vacuum does not hold, the diaphragm has failed. Note that in most common-rail diesels, this diaphragm can be replaced separately.

• If vacuum holds, then leave vacuum on and drive the vehicle in this state. Does the vehicle drive OK?

• If the vehicle now drives OK, this indicates that all the turbocharger mechanicals are OK and the fault lies with the turbo control.

• Inspect the vacuum pipes and hoses for deterioration or disconnection to and from the control solenoid (N75). Check for the correct operation of the N75 valve.

• If the fault is still present, this indicates a turbo mechanical problem because turbo control has been eliminated as a cause of the

problem. There could be a problem with either:

– The turbo itself

– Blocked exhaust

– Blocked or leaking intake

• To rule out a blocked or leaking intake:

BEST-PRACTICE BRAKE REPLACEMENT

If you have a common rail engine, contact our IVS 360TM Team to check the system under boost.

– If you have a PD diesel engine and wish to test the intake boost system, you can do so with the engine on idle. Use your DrivePro/ AssistPlus device:

• ENGINE ELECTRONICS >> MANUAL FUNCTIONS >> BASIC SETTINGS

>> CHANNEL 11 >> TOGGLE BASIC SETTINGS

• This will boost the intake in steps so that you can check the system without driving the vehicle.

You can also check the boost live data in measuring groups. This shows you the actual and specified boost pressure. Driving under load, the values should match, as you only get boost while driving.

• A blocked exhaust normally shows up in conjunction with a DPF fault or a warning light. Rule this out by reading the back-pressure and/or venting the exhaust system.

• If the checks carried out have allowed you to rule out the above, then the turbo itself will need to be checked for internal damage. Repair or replace as required

GEARBOX LIGHT ON: PEUGEOT AND CITROEN MODELS

Models: All models fitted with AL4 automatic gearbox Symptom: Customer complaint is that an instrument warning light is illuminated indicating problems with the transmission.

Cause: One potential cause of this is low internal oil pressure in the transmission. The fault code for this is P006 and the description of the fault code is “oil pressure regulation.”

REPAIR

• Using your DrivePro, AssistPlus or BlueBox, go to GEARBOX MENU >> SELECT PARAMETERS >> SELECT MAIN VARIABLES.

• Read the oil pressure value.

• The following readings are correct: Engine at idle

– Gear lever in D position, pressure = 3 to 21 bars

– Gear lever in P position, pressure =

2.5 to 3 bars

Vehicle moving

– During driving start off = 12 to 21 bars

– During driving and changing gears = 3 to 12 bars

If oil pressure readings are incorrect, the fault may be oil pressure EVM solenoid failure.

• Strip hydraulic block and replace solenoid.

• If necessary, obtain repair manual from PSA online service box website. If oil pressure readings are correct, remove a sample of oil from the gearbox and check for metal swarf (chips or filings). If there is swarf present, consider internal component failure.

• Full gearbox strip required.

• Obtain repair manual from Peugeot/ Citroen online service box websites.

• If no swarf is present, retest oil

Scott Irwin MIMI, Head of Technical Training at TMD Friction’s aftermarket brake brand, Textar

Being at the forefront of braking technology for more than 100 years, Textar has continued to provide a complete aftermarket solution, delivering high braking standards and safely braking millions of families and motorsport champions worldwide.

However, while most mechanics concur with Textar’s exceeding standards and replace brakes efficiently, some might be cutting corners to save time, meaning simple tasks such as cleaning rust and dirt are often overlooked. Here, Textar provides best practice tips, making sure these simple, yet effective steps aren’t ignored, which ultimately ensures customers don’t return with complaints such as brake judder.

WHAT’S THE FIRST STAGE OF THE BRAKE REPAIR PROCESS?

Before beginning to repair the brakes, it’s key to look for uneven wear on the discs, as well as checking all components surrounding the axle and examining the hydraulic system or any broken parts. Parts showing signs of heavy wear or defectiveness should be replaced in accordance with the vehicle, system and brake manufacturer’s guidelines.

When dismantled, it’s imperative to remove any rust or residue from the contact surfaces and caliper bucket as this can result in brake judder, which gives a vibration through the brake pedal or steering wheel. To prevent the likelihood of brake judder, use a wire brush or a hub grinder (product code: TEX1039) to get rid of any rust from the contact surfaces and hub flange. Once removed, use a brake cleaner to clean the surface and check the cleaned hub with a measuring gauge, such as a DTI gauge (product code: TEX1028), for any possible lateral run-out deviations.

During the cleaning process, it’s important to take great care not to damage the caliper bracket.

WHAT LUBRICANT

DO YOU NEED TO USE?

Grease the newly cleaned areas with a non-conductive, heat-resistant and solids-free agent such as Textar Ceratec Advanced Lubricant. Do not apply to the brake surface, or on the back of the pad where is has a noise fix i.e. Shim on the back of the pads. Also, do not use copper paste on any brake parts as it conducts heat and can react negatively with the vehicle’s ABS system and causes galvanic corrosion with dissimilar metals.

WHAT COMES AFTER GREASING THE PADS?

Fit the new brake disc onto the wheel hub and secure the newly fitted disc with the wheels bolts or nuts and use conical washers to secure. A DTI gauge should be used to check for any lateral run-out. We recommend a lateral run-out of 0.07mm below the maximum radius.

HOW TO ENSURE THE PISTONS ARE PUT BACK INTO THE CALIPER CORRECTLY

Using the correct adjusting tools, the brake piston(s) must be moved back into position, taking note of any brake fluid that may spill out of the brake fluid reservoir. Also, be sure to pay attention to the different versions of the caliper and brake systems, as well as manufacturer-specific requirements and special tools.

LET’S NOT FORGET AFTERCARE?

To optimise braking performance, Textar recommends the new brakes require approximately 200 miles to become fully conditioned. Hard or aggressive braking must be avoided during this period as it can affect the overall performance of the new system.

Brake gently and carefully from a maximum speed of 30mph / 50kmh to ensure the coating does not become embedded in the friction surface of the brake pads.

All Textar tools can be found here: textar.com/en/tools/

37 WWW.SMTA.CO.UK

HOW OUR STRATEGY AND VISION WILL AFFECT THE FUTURE OF THE MOT –MATTERS OF TESTING

Our strategic plan to 2025 and vision to 2030 set out our vision of keeping Britain moving safely and sustainably.

To help us achieve that, there are 3 key areas within the vision that we will focus on. We want to set standards, assess and test. We want to inform, educate, and advise our customers. And finally, we want to license and accredit, regulate, and enforce. I would like to share more about what we’re planning in these areas within the MOT and vehicle testing industry.

SETTING STANDARDS WITHIN THE INDUSTRY

Standards work when they are current, relevant, clear, and practical. Because only then are they trusted and truly effective. So, we want to make the best use of data and technology to improve standards of MOT testing.

The vision sets out the likely impact that technology will have in DVSA, including the MOT. A core objective will be to ensure the future of the MOT strikes the right balance between maintaining a high standard to ensure vehicle and driver safety, alongside keeping pace with new technology and supporting the sector as these changes emerge.

CONNECTED EQUIPMENT

A good example of this is ‘connected’ garage equipment, which is mandatory for new garages, and encouraged for all. As you know, this allows certain parts of an MOT test

to be uploaded directly to our computers. This makes the test quicker and cuts out the kind of keying in errors that even the best of us can make.

We already use connected equipment with emission gas analysers, diesel smoke meters, and brake testers since 2020. Modernising the equipment used will help secure the future of MOT. Further pilots that will support MOT testers improve accuracy include using cameras to aid identification of vehicles and trialling connected headlamp aim hardware. Chris Price blogged more about how we’ll be trialling connected cameras.

GETTING YOU THE RIGHT INFORMATION, AT THE RIGHT TIME

Mmaintaining and improving the quality of testing remains a key priority – and we want to better support you with this.

Over the next few years, we aim to pilot the use of different technologies to help us do this – for example, use of voice recognition through phones, to help provide automated real-time advice. This might all sound a little

advanced – but these technologies are in use in other industries and will become more commonplace. So, starting some pilots will help us all get to grips with what may be possible.

LICENSE AND ACCREDIT, REGULATE AND ENFORCE

We know you want to be able to get on and run your business. And you need us to recognise you, or your garage, officially so your customers know you’re qualified. You also need us to identify anyone competing in the MOT industry unfairly and dangerously and, where we must, to stop and even prosecute them.

TACKLING FRAUD

Connected equipment is a great way of tackling fraud. As part of our strategy for the next few years, we want to look at how we can better tackle this – while minimising the impact on those who are doing things right. Initially we will be investing more into how our risk rating operates, making it ‘cleverer’ to help identify those up to no good. Integrating new IT systems to monitor MOT data input and analysing trends that appear will support DVSA to root out MOT fraud and make roads safer.

Going beyond connected equipment, it seems inevitable that we will need to look at ways of checking emissions more stringently. And the various types of driver assistance systems will become more important as drivers rely upon them more.

MOT UPDATE 38 WWW.SMTA.CO.UK

INFORM, EDUCATE AND ADVISE

Another part of our vision is to do more to inform, educate and advise customers to do the right thing first time. That means better services and safer practice for everyone. As part of this, we want give motorists more information on how they can keep their vehicle safe to drive.

DOING MORE WITH ADVISORIES

We know we have a lot of information on the MOT Testing Service (MTS) that is of benefit to your customers.

Car owners can already access the MOT test history and use the reminders service, as well as being able to obtain their previous test certificates. But as well as reminding people they need to get a test, there might be more we could do. For example, as technology and data from vehicles improves, we could remind motorists about their recent advisories and when they might need looking at.

We could send them a text or email reminder that they had an advisory on their tyre tread and that they will need to sort it out before the tyre becomes illegal.

ADDING VALUE FOR CUSTOMERS

With emergent technologies there is more that we can do to improve and increase the amount of relevant information we communicate. For example, information on recalls, and advice for motorists on what to do in-between MOTs. The more value we can get from the MOT and the associated contacts we have with motorists, the more we can improve road safety and air quality to really demonstrate the important part that the MOT plays in society.

PLANNING AHEAD

The DVSA have a clear vision for the future of the MOT over the next 7 years. This work will be alongside the outcome of the Department for Transport’s (DfT) call for evidence, and consultation, which ran earlier this year into modernising the MOT. Within that, DFT asked questions around the benefits of technology, sustainability

and air quality and how we can better work with partners (such as MOT garages) to deliver services to the public. We will share more about the outcome of these questions with you soon and how we hope to explore these areas.

MOVING FORWARD TOGETHER

With your support, we’ve already made huge strides in the rollout of connected equipment. And we have already started making changes that will make life easier both for you and your customers, especially in the digital sphere.

www.gov.uk

All about delivering good outcomes for your customers? So are we! Our straightforward finance solutions give customers a journey they can trust in. But don't just take our word for it... For intermediary use only

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40 WWW.SMTA.CO.UK

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.

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

Drinks Reception Sponsor

Supporting Sponsors

ARE YOU LOOKING TO BECOME A DVSA APPROVED MOT TEST STATION? Are you looking to upgrade your existing MOT Test Station and install connected 41 WWW.SMTA.CO.UK

TOP 10 MARQUES

42 WWW.SMTA.CO.UK Diesel 7,790 15,400 Petrol/Electric
YEAR TO DATE TOP
YEAR TO DATE Strathclyde 1,430 Lothian 5,891 1,060 Grampian 1,295 Central 923 Tayside 619 Fife 588 Highlands 221 Dumfries & Galloway 174 Borders REGISTRATIONS BY REGION FUEL
YEAR TO DATE Petrol 60,508 Electric 10,073 Diesel/Electric 14 Petrol/LPG 193 UK YEAR TO DATE: SCOTLAND YEAR TO DATE: SCOTLAND MONTHLY: 1,093,641 93,978 12,201 CAR FIGURES JULY 2023 Vauxhall Corsa 3,405 Vauxhall 8,245 (8.77%) Vauxhall Mokka 2,580 Volkswagen 7,870 (8.37%) Nissan Qashqai 2,022 Ford 6,773 (7.21%) Volkswagen T-Roc 1,883 Audi 6,379 (6.79%) Hyundai Tucson 1,595 Kia 6,051 (6.44%) Kia Sportage 1,771 Nissan 4.606 (4.90%) Nissan Juke 1,778 BMW 4,557 (4.85%) Audi A3 1,589 Toyota 4,407 (4.69%) Ford Puma 2,322 MG 4,126 (4.39%) Mini Mini 1,568 Hyundai 4,040 (4.30%)
10 CARS
TYPE

IN THE PURSUIT OF CONTROL

Every year, we spend over 38,000 hours road-testing brake friction formulations. Exposing our products to the extremes of pressure under the harshest conditions, and in every driving environment. Purely in the pursuit of guaranteed performance. That’s what friction experts do.

www.textar.com

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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