SMTA Auto Insight – Issue 15 by SMTA

ISSUE

THE ROAD AHEAD WHAT DOES 2024 HAVE IN STORE FOR THE USED CAR MARKET?

CELEBRATING 120 YEARS OF THE SMTA:

CAR ADS FROM THE PAST

The Magazine for Scottish Motor Professionals brought to you by

MEMBER PROFILE:

GIBSONS AUTO SERVICES Supported by

Incorporating

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

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

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.

Ask about our QMS service today! E: david.innes@smta.co.uk T: 0778 9264 228 2 WWW.SMTA.CO.UK

SMTA is proud to support:

CONTENTS COX AUTOMOTIVE The Road Ahead

120 YEARS OF SMTA A look at the last thirty years!

COMPETITION TIME GES - A chance to win an induction light kit!

MEMBER PROFILE Gibsons Auto Services, Cumnock

THOMSON COOOPER Pension Reforms – What you need to know

SMTA ANNUAL DINNER Highlights of this year’s event

LUCY CREE RALLY DRIVER 15 year old Lucy talks to SMTA

FEMALES IN FOCUS 2023 Celebrating females in business!

WELCOME TO ISSUE 15

4 8 16 18 22 26 28 38

Cover Photo by CFH Photography Cars Courtesy of Park’s Motor Group & The Jim Clark Trust 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

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

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I am writing this introduction on the day following the Chancellor’s Autum Statement and whilst, as always the devil is in the detail, there does appear to be some degree of positivity contained within his headline announcements. A world without politicians would maybe be an easier place, some would say even a better place however, the abilities they display to change direction relevant to the desire to “win votes” going forward are nothing short of spectacular! and certainly ensures we live in interesting times going forward. We are all now aware that the deadline date for the cessation of the sale of I.C.E. vehicles has been pushed back to 2035 brining us in line with the rest of Europe, this move has proved to be unpopular with many however I can’t help but feel that it gives our industry some extra time to get ready for the massive impact that will be felt when the vast majority of the population are travelling in silence in electric vehicles. I recently spent three weeks living with an electric vehicle and whilst the technology is spectacular the infrastructure for charging leaves a lot to be desired. More work to be done especially by the relative government of the day to ensure the investment landscape matches the opportunities and we would all have reasonable access to fast charging across the land. The SMTA recently held two of our showcase events in Glasgow, Females in Focus in September was an outstanding success and the event was thoroughly enjoyed by everyone who attended. We were entertained by our four ladies on the panel who contributed as individuals and collectively giving real life experiences of working in our sector, the absolute openness and honesty of their situations were enlightening, inspirational and on some occasions difficult to listen to but none the less a fantastic event and my sincere thanks goes to the panel, further details of the event are within this magazine. Our SMTA 120 Year celebration Annual Dinner was also a stunning night, attended by nearly 400 guests, we held our C.A.R Star Awards with five businesses collecting their award on the night and our Presidents Award winner, Nicola Gilda of Peoples Ford collecting her much deserved award as well. Our after dinner speaker was Mike Brewer the anchor man in Wheeler Dealer and Mike entertained us with a walk though his life to the point where he now heads up a show that is truly global with over 200 million viewers, all watching with a common interest in old cars! As this is the last magazine of 2023 I wanted to wish you all the very best for the festive season ahead.

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

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MARKET INSIGHT

by Philip Nothard Insight Director, Cox Automotive

THE ROAD AHEAD –

WHAT DOES 2024 HAVE IN STORE FOR THE USED CAR MARKET? Profound disruption caused by the pandemic, supply issues and the seismic shift towards net zero have shaped the new vehicle market we see today. That three-part effect, which includes demand returning to somewhat ‘normal’ levels as the cost-of-living crisis continues to affect consumer spending, continues to shake the new market to its foundations. But it’s having a notable impact on the used market as well. PRODUCTION VOLUME FIGURES AND OTHER OBSTACLES TO RECOVERY

recovery is unlikely until early-to-mid 2024 due to global economic and energy-related issues.

According to statistics, globally, a staggering 42 million new vehicles were not built due to pandemic lockdowns. This loss of production volume has had a clear and longlasting impact on the used car market. The number of future used vehicles depends on the number of new vehicles produced in the past. The cumulative effect has been a circuit break of sorts, with the number of cars entering the used market severely reduced. Used car demand remains strong, but the market is arguably past its peak. Economic headwinds, such as the cost-of-living crisis, will likely change how used cars are bought and owned. Analysts believe that lockdown savings are fuelling the current demand. Cox Automotive forecasts full-year transactions to exceed 7.1 million units, a 4% year-on year increase. While supply chain disruptions have eased, the 7.1 million figure is 3% below the average pre-pandemic total. A more substantial

values are experiencing an above-seasonal realignment. On average, values remain significantly above where they would be without the pandemic. Crash fears should fade once the economy stabilises. While a crash in used car values is unlikely in the UK due to the shortage of used vehicles, prices may decline gradually. Different fuel types will likely exhibit different pricing behaviour, with BEV pricing more volatile than ICE or hybrid pricing. This is due in part to the sudden price drops for new BEVs, such as Tesla’s MSRP reductions in the UK, Europe, the US, and China.

“CLIFF EDGE” EXAGGERATIONS AND FUTURE COMPOSITION Rumours of a “cliff edge” in used car values are exaggerated. Instead of a crash, used car

CHANGES IN THE SOURCING OF VEHICLES To fill forecourts amid a shortage of new cars, dealers are diversifying their stock. Many are entering the higher-mileage, older vehicle market, while franchised dealers are stocking a more diverse mix of brands and ages. Supermarkets and independent dealers are also exploring new procurement

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channels. Dealers are adapting to the evolving automotive market landscape and the profit opportunities presented by new stock profiles.

THE ONLINE MARKETPLACE CONTINUES TO GROW Retailers have sourced stock in a variety of new ways in the past three years and the future of used car sales is likely to see dealers embrace the digital space more fully. Dealers are increasingly filling their forecourts from digital sources, where speed and quick turnaround are key attractions. Sourcing directly from consumers outside the partexchange process or via online marketplaces is now a permanent feature of the sourcing landscape.

EVS AND THE FUTURE MARKET Choice for used car dealers and customers has narrowed in recent years, especially as the UK’s ICE deadline approaches. The number of EVs moving into the used marketplace is increasing, but pricing appears volatile in the short term, suggesting that price anxiety may replace range anxiety. Used EV prices are volatile due to the rapid evolution of battery technology, the lack of used price data, and the increasing number of new entrants. The used buyer faces the same challenges as new EV buyers, including charging infrastructure, range, and insurance concerns.

Certain vehicles are well-suited to digital sales, but many trade buyers prefer to see, smell and touch stock before they buy it. Will physical sources always have a place? We believe so, particularly because they reduce risk in the acquisition process at a time when sourcing mistakes are becoming more costly. How dealerships work, how many there are and how they present themselves will all change. However, we have found that many dealers believe physical marketplaces still have the potential to give them a competitive edge, help them sniff out the best deals, and boost their stock profile.

According to recent research by Regit, 92% of drivers are concerned that the country’s charging infrastructure is unable to meet current demand. In comparison, 69% are sceptical that it will be good enough by 2030. It’s clear that public concern regarding infrastructure persists, but we are on a road to change, and there’s no going back. As manufacturers continue to roll out EVs, consumer knowledge and attitudes will evolve, while infrastructure needs will have to be addressed. EVs are expected to make up more than a fifth of the UK parc by the end of this year. The sector must educate, share knowledge, and offer incentives to make EVs more appealing. Battery health testing standardisation is also needed to motivate used car dealers to stock more EVs. Dealer networks will adapt their after-sales services to consumer interest, pricing, and information as the BEV market evolves. Substantial investment is needed to prepare dealers for the electric future, but progress has been made in improving aftermarket technical support.

COX AUTOMOTIVE’S 2024 USED CAR FORECAST According to data dating back to 2002, the UK has averaged 7.4 million used vehicle transactions per year (i.e., changes in ownership registered with the DVLA). During this period, the UK only exceeded 8 million transactions twice, in 2016 and 2017. These peaks were primarily driven by the gradual recovery from the global financial crisis when interest rates were low and financing and credit availability were high.

U S E D C A R A N N UA L F O R EC A ST 2 0 2 3

The average used-to-new vehicle transaction ratio was 3.37:1 since 2002. It increased to 4:1 during the pandemic due to supply disruptions. The UK’s used car market is unlikely to reach eight million transactions again, given global production shortages. However, our 2023 forecast of 7.15 million transactions demonstrates the market’s resilience.

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MARKET INSIGHT

UPSIDE SCENARIO

BASELINE SCENARIO

DOWNSIDE SCENARIO

This scenario envisions a balanced recovery, where registration numbers are bolstered by greater choice, increased consumer confidence and a brisk rise in battery electric vehicle (BEV) ownership.

In this scenario, there’s a sluggish resurgence as economic factors keep inflation high while new vehicle production sees a steady production recovery as EV adoption continues to grow, albeit slowly.

As the economy struggles, consumer confidence is weak and the cost of financing a used vehicle remains too high for many.

Recovery in new vehicle registrations: New vehicle registrations follow a balanced recovery trajectory that does not exert excessive pressure on the unrealistic cost of owning used vehicles compared to new.

Economic stability with moderate recovery: The wider economy maintains a state of unresolved conditions with no significant deterioration. Long-term recovery plans and forecasts remain achievable. Gradual reduction in inflation levels and interest rates remain high with only minor falls in the year.

Easing of used vehicle choice limitations: Recent production shortages that have restricted choice in the used market begin to ease as fleet and rental sectors release inventory into the used car market. Economic initiatives boost consumer confidence: Economic initiatives (much lower inflation, falling interest rates) are implemented to stimulate consumer confidence and enhance consumer spending. In turn, this eases pressure on the leading and broader automotive sectors. Rapid growth in pre-owned BEVs: The used BEV market experiences substantial growth as consumer interest in ownership surges. This heightened interest may result from greater confidence in residual values, improved battery health, or government initiatives to drive demand.

Steady new vehicle production recovery: The recovery in new vehicle production continues steadily. There is a return to the fleet, rental, and business sector commercial discounts, resulting in a consistent increase in used vehicle supply. This growth is carefully managed to avoid a significant oversupply that could lead to an unnecessary crash in vehicle values. Gradual adoption of used electric vehicles: The adoption of and shift toward using electric vehicles in the used car market continues at a gradual pace. Trends observed in 2023 regarding the adoption of used electric vehicles remain similar, without significant acceleration.

Severe economic deterioration: The economy experiences a significant and prolonged downturn, with measures implemented having minimal impact. Inflation remains persistently high, and the prospects for its reduction are limited. To combat inflation, the Bank of England’s base rate remains elevated. Weaker consumer confidence: Shaky consumer assuredness leads to a decline in the demand for used vehicles, causing the used car market to contract. Consumers may postpone or reconsider purchasing used vehicles due to economic uncertainties, resulting in reduced market activity. High financing rates: Financing rates for used vehicles remain significantly higher than forecasted. This makes used vehicle affordability unattainable for the majority of consumers, especially amid a cost-of-living crisis and in the context of an economy denoted by persistent inflation.

READ MORE IN THE INSIGHT REPORT 2023/24 Cox Automotive and Grant Thornton have once again teams up to publish the Insight Report 2023/24 which dives into the two big trends that will shape automotive in the coming year. Visit coxautoinc.eu/insightreport to get your copy.

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CELEBRATING 120 YEARS OF SMTA

IN THIS ISSUE WE LOOK BACK SOME WONDERFUL CAR ADS FROM THE LAST FORTY YEARS OR SO.

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ADVERTORIAL

Together, we make it possible. Santander Consumer Finance (SCF) has established itself as a leading global player in the consumer finance sector over the past decade. A key part of our success has come from our customers, the partnerships we have with our dealers and motor manufacturers.

ONLINE LOAN APPLICATION

At SCF, we understand the need to continually develop our business proposition so, together, we can help you prosper. Our goal is to be the most admired automotive finance brand in the UK, admired by our manufacturer partners, our dealer partners and of course, by our customers.

CALCULATOR

So how do we set about doing that? Offering great retail finance products and campaigns together with a competitive wholesale funding programme is a given. We believe being the best is about delivering a holistic business proposition, one that adds value to your business and makes us an indispensable partner. SCF is committed to being a leading force in the market, detailed below are three key services we offer, to support our manufacturer and dealer partners.

GATEWAY 3 SIXTY Our award-winning customer retention platform uses artificial intelligence to provide you with relevant and timely renewal opportunities, delivering the highest conversion rates.

Our end-to-end finance journey encompasses all of our technology, providing a simple, secure and compliant process, allowing customers to apply for finance when it suits them.

Our Santander Consumer Finance branded web calculator is available for use on websites, in showroom or wherever convenient for dealer partners and their customers. The calculator provides real time, accurate and up-to-date finance quotes for both Conditional Sale and Personal Contract Purchase with the ability to search by monthly payment.

INSURANCE Our market leading insurance proposition has been designed to help deliver sales performance whilst ensuring first-class customer outcomes. Our Santander Consumer Finance branded insurance offering, in partnership with GardX, has been designed to offer top quality customer features at competitive retail prices. Our offering includes GAP Plus Insurance, Cosmetic Repair Insurance, and Combined Tyre & Alloy Wheel Protection. We recognise that many customers do not purchase these products within the showroom, so we are pleased to offer two new optional sales channels, digital and telemarketing. Providing your customers with a chance to buy at their convenience from all three of these channels: In dealership, Buy online and via Telemarketing.

We continue to innovate and invest in our market leading tools, to help our supporting dealers and manufacturer partners deliver sales performance, whilst ensuring first-class customer outcomes. This is part of our commitment to helping you prospe

Whilst Santander Consumer Finance are proud of our track record in the UK, we cannot be complacent. As an organisation we must remain focused on delivering a market leading proposition across all business areas and channels we operate in, as well as identifying future growth opportunities. Rest assured, Santander Consumer Finance is here to stay and is committed to working with our partners to provide our mutual customers with not just good, but great outcomes. Stewart Grant, Commercial Director, Santander Consumer Finance.

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SAY HELLO TO OPENLANE! BUYING AND SELLING USED CARS MADE EASY.

We are thrilled to announce that ADESA is now OPENLANE! The new brand fits our vision to build the world’s greatest digital marketplaces for used vehicles and our purpose to make vehicle wholesale easy so our customers can be more successful.

Here’s how the openlane.co.uk marketplace just got easier for you: • You get more opportunities to find and win the right vehicles, 24/7.

In the UK, we’re bringing together all our buyers, sellers, and vehicles in one place, openlane.co.uk

• You get access to a greater variety of local stock, thanks to a growing range of listings from branded dealers.

OPENLANE stands for a fundamental change: more than ever we’re committed to making buying and selling used cars easy for you.

• You have the ability to sell your unwanted stock via OPENLANE Sell.

And with the launch of OPENLANE UK, easy just got easier. OPENLANE UK is a subsidiary of OPENLANE Inc., a US-based, listed company (NYSE, KAR) that provides customers around the globe with innovative, technology-driven remarketing solutions and related services. Together, we are dedicated to making car remarketing – which is complex and risky – a seamless and successful experience. 12

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• Advertising vehicles just got easier. The OPENLANE Inspect app is one of many flexible ways to upload vehicle details. • You have more transparency on prices, fees and the status of your vehicles & documents. • Your go-to marketplace is easier to use, on any device. • You get more personal guidance and efficient support. So, don’t wait any longer, embark with us on this new journey at openlane.co.uk!

To discover more about how OPENLANE can help your business, feel free to reach out via email at sales@ openlane.co.uk, or call us on 0344 225 5477. ABOUT OPENLANE OPENLANE, Inc. (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. The company’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in Carmel, Indiana, the company has employees across the United States, Canada, Europe, Uruguay and the Philippines. For more information and the latest company news, visit corporate.openlane.com.

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MARKET INSIGHT

by Samer Cheaitou, Trainee Solicitor, Just Employment Law

TERMINATION OF EMPLOYMENT IN THE FIRST TWO YEARS One of the most common enquiries we receive is whether it is truly safe to dismiss short serving employees who may not be a good fit for the business, with little or no procedure. Terminating employment can often be more straightforward in the first two years of the relationship. This is because employees require two years’ continuous employment before they can raise an ‘ordinary’ unfair dismissal claim at the Employment Tribunal. However, there are other types of claim which employees can bring in the first two years of their employment.

AUTOMATICALLY UNFAIR DISMISSAL An employee can bring a claim for automatically unfair dismissal from day one of employment. There are over 20 circumstances in which a dismissal will be automatically unfair. Such reasons include if termination is by reason of the employee taking family related leave (including maternity or paternity leave), being a trade union member, raising a flexible working request, making a protected disclosure, raising a health and safety concern or asserting a statutory right.

are age, disability, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

SUMMARY

An employee may therefore claim that the termination of their employment was discriminatory. A common issue in this area is where an employee is dismissed for poor performance or excessive absence, but then argues that this was on account of a disability.

the relevant procedure, such as a

For that reason, where an employer is considering dismissing an employee with any sort of chronic health condition, it is recommended to get both occupational health input and legal advice before doing so.

Where an employer is considering dismissing a short serving employee, the safest option will always be to follow disciplinary procedure or absence management procedure, before doing so. Where there is any possible argument that the employee has done something, or has a status, that might give them an argument for automatic unfair dismissal, or where they have a protected characteristic that may give them a discrimination claim, it is important to take legal advice before proceeding.

PAYMENTS ON TERMINATION Just Employment Law are employment

An employee is also able to bring a discrimination claim from the commencement of employment.

Unless dismissed for gross misconduct, an employee will usually be entitled to notice pay on termination of employment. They will also be entitled to a payment in lieu of any accrued but untaken holidays.

The Equality Act 2010 sets out a number of protected characteristics, in relation to which employees are protected from discrimination. The protected characteristics

Where termination payments have not been paid in full, the employee can seek to recover any underpayment at the Employment Tribunal.

services, contact us on 0141 331 5150 or

DISCRIMINATION

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law specialists with expertise in advising employerson the risks associated with terminating employment. If you are interested in learning more about our at enquiries@justemploymentlaw.co.uk. You can also visit our website at www.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

SHORT-STAFFED? WE PROVIDE RELIABLE TEMPORARY COVER FOR ABSENT TECHNICIANS AND MOT TESTERS IN YOUR WORKSHOP.

NEED FRESH TALENT FOR YOUR WORKSHOP? TAKE OUR INTERN TO CHECK THEIR POTENTIAL AS A PERMANENT EMPLOYEE.

• Flexible work patterns: early, late, night & weekend shifts Contact us today to book your contractor! Tel: 0141 4134 021 Email: hello@autotechrecruit.co.uk Web: autotechrecruit.co.uk

• 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

COMPETITION TIME!! WIN ONE OF 2 INDUCTION LIGHT KITS

Narrow and lightweight articulated LED handlamp with illumination on both sides, USB-C charging connection and wireless charging function. FEATURES: Illumination: 5W COB Battery: 3.7V 1200mAh Li-ion battery Modes: ON-OFF Fixation: Magnet Main light brightness: 300 Lumens

Front light brightness: 35 Lumens Operating time: Main light approx. 300lm 2h / 35lm 10h Charging time: 2.5h Power: Induction Battery Indicator: Yes Dimensions: 170 x 170 x 47.5mm Flashlight Weight: 160g Net Weight 2 Lamps + Base: 550g

QUESTION: HOW MANY LUMENS IS THE MAIN LIGHT BRIGHTNESS? PREVIOUS WINNERS SIMPLY EMAIL YOUR ANSWER TO: norman.stirling@smta.co.uk Need help? Please call Niall Farmer of GES Scotland on 07483 827734 The small print; no purchase necessary, free to enter draw, no alternative price will be offered, closing date for submission 30th December 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.

If you are in the Motor Trade Why nott use the easityre tion? option?

Delivering tyres to the Scottish Motor Trade. If you are in the motor trade why not use the easityre option. Freephone 0800 085 5515 Glenrothes or 0800 2800 114 Dundee & Aberdeen 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.

easityre Glenrothes 2-3 Blackwood Road Eastfield Industrial Estate Glenrothes Fife KY7 4NP Freephone:

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easityre Aberdeen Units A1&A2 Airport Industrial Park Howe Moss Drive Kirkhill Ind. Estate Dyce, Aberdeen AB21 0GL Call:

01382 225230 0800 2800 114

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MEMBER PROFILE

GIBSONS AUTO SERVICES SMTA talked to Colin Armstrong, senior business partner of Gibsons Auto Services, Cumnock

SMTA: How did you come to start up? CA:

The business started in 1999 in a local farm shed in Auchinleck, there was initially 1 staff member and we worked on mainly Vauxhall, VW and Audi vehicles. We were asked by a local farmer to do some repairs on his Land Rover 90 and this became the main stay of the business, Land Rover and Range Rover.

SMTA: How has the business grown since then? CA:

We grew from the farm shed to a rented 6000 sq’ft workshop in Cumnock, with 4 employees and stocked a range of Land Rover parts. In 2011 we purchased the former Cumnock Knitwear Factory just across the road from our rented unit, we modernised, re-roofed and installed all new electrics and services, increased our ramp capacity and increased to 9 members of staff. We now have over 16,000 sq’ft of workshop space, parts stores, offices and a large customer friendly reception area, with space to wait and an on-site tea room to cater to you while you wait. We have

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Jaguar/Land Rover Pathfinder and Topix Cloud diagnostic equipment and subscribe to the JLR Electronic Parts System and Topix System for updating all services, bulletins, recalls and diagnostic fault finding. SMTA: Can you run me through a typical day? CA:

When customers arrive with us, their vehicle repairs are already prepicked a week in advance for parts to ensure we have the best chance of fixing the vehicle on first visit. The vehicles are checked over, road tested if required, and then inspected in the workshop. We aim to contact all customers prior to repairs for authorities, however most who have been with us for years trust us to do what is required to get their vehicle back on the road safely without the need for additional authority, this is the relationship we have with our customers, we are all known on a first name basis, customers and staff, this helps build a rapport with the customers and is one of the reasons we are regarded highly and recommended by customers “word of mouth”.

SMTA: What has been the highlight of your business so far? CA:

During the start of the dreaded “Lockdown” period we were fortunate to be contacted by Aberdeen Mountain Rescue who asked if we could install Roll Over Protection Systems to their Defender 110 vehicles, they had five. We saw this as a perfect time to take this on as the vehicles were not in use by the Mountain Rescue Teams during that period. We collected two, fitted all of the equipment they needed, fitted new graphics and other safety equipment to both of these vehicles and delivered them back to Aberdeen. We collected another two vehicles and did the same again. On delivering these two back we replaced all of the graphics on their fifth vehicle and fitted some other essential equipment to match the other four. This started an influx of Scottish Mountain Rescue Vehicles coming in for the same and more. All of the UK Mountain Rescue Teams are charity funded, they are not government sponsored, so doing the jobs for them correctly and as

keenly as possible was crucial, for this we reduced our hourly rates to make the repairs more manageable, cost-wise, for them. We have repaired Defender MRT vehicles from Arran MRT, Ochills MRT, Moffat MRT, Galloway MRT, Aberdeen MRT, Kendal MRT and Patterdale MRT are now booked in for the start of the year. SMTA: What is the best thing about working for yourselves? CA:

Being in control of the standard and quality of the work that we, and our employees, do. We are all hands on and passionate about what we do, nearly all of our staff are Land Rover owners and drivers, this helps massively in the knowledge of the product and the faults that can occurs.

for jobs, we have been in need of two new experience full time mechanics for over 10 months now but there is a huge shortage in the industry and no applications at all to adverts we have run in various media outlets. SMTA: How does your SMTA / Scotsure membership help? CA:

Lack of parts availability at present, we find that there is a huge shortage of replacement parts from nearly all of the manufacturers, this does not seem to have improved at all since the end of the “Lockdown” period. The other issue is lack of experienced mechanics applying

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

The lack of parts and time served, experienced, mechanics are definitely the biggest challenges right now, a huge proportion of skilled mechanics have switched careers to the aircraft industry and this is an issue motor industry wide in this area..

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

SMTA: What is the most important thing you have learned in your career and how have you made use of it?

CA:

SMTA: And the hardest part? CA:

We have the benefit of knowledgeable advise from the SMTA when required. “SMTA Partner Accounts” with various companies which give fantastic discounts on purchasing, this is a great benefit to the business.

loyalty and repeat visits. Our customers “word of mouth” recommendations are a huge part of our growth over the past 24 years.

We hope to increase our throughput of refurbishments and reduce our current lead times, this all relies on the ability to recruit more mechanics into the business and parts availability improving.

SMTA: How do you maintain customer levels? CA:

Our standards of service and customer focus have proven to ensure a high degree of customer

That staff are what make or break a business. Having the right staff and ensuring that they are proficient in all aspects of the work they do within the business is key to making your business successful, this also provides customers with the confidence in the work that you are doing and their repeat custom and recommendation. www.gibsonsautos.co.uk

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YOU CAN JUDGE A CAR BY ITS COVER CAR PROTECTION FROM CAR PEOPLE, ASK OUR SALES STAFF FOR FURTHER DETAILS 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

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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

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MARKET INSIGHT

by Richard Libberton, Chartered Financial Planner, Thomson Cooper

PENSION REFORMS WHAT YOU NEED TO KNOW

The UK Government set out plans for a radical change in pension savings at the start of the summer.

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The changes aim to address three main areas of concern – 1. to boost the UK’s retirement savings and therefore improve the outcomes of many retirees 2. to improve outcomes for investors in pensions 3. to help fund UK growth companies The reforms set out the framework for achieving those outcomes. Three large pension companies in the UK (Aviva, Nest and Aegon) will commit to allocating 5% of their default funds to unlisted equities by 2030. It is hoped that this action will encourage other large pension companies to follow suit. This should in theory give a boost to smaller UK companies who are often starved of capital, as pension companies prefer listed equities which are often outside of the UK when seeking the best returns for their pension holders. The reforms also talk of consolidation in the defined contribution pensions area which will allow for a more diverse split of assets for pension holders, with the poorer performing funds being potentially wound up by the Pensions Regulator. It is not just private pensions which the reforms would impact. Local Government schemes are included too and these changes are open to consultation.

THE RISK OF UNLISTED COMPANIES Broadly, the proposed reforms have been welcomed as any investment to help UK pension holders enjoy a better retirement is a laudable principle, even more so if these changes will help boost the UK economy and help address the UK’s productivity challenges. However, investing in unlisted

equities does provide an element of additional risk. This sector of the market is already covered by specialist managers, which could leave the large pension companies as forced buyers of the remaining companies which could result in losses if the company fails, as many unlisted companies do. It is certainly an area to watch for further developments. Pension investors should keep an eye on the default funds that their pension is invested in, if in the future, they do not wish to take on this additional risk.

BIG BENEFITS FOR THOSE WHO CAN AFFORD TO SAVE MORE Reforms to pensions legislation are also aimed at helping savers build for a better retirement. At present there are limits on how much individuals may save into pensions over their lifetime, as well as how much may be saved in each tax year. These are referred to as the lifetime allowance and the annual allowance respectively. The lifetime allowance of just over £1 million was scrapped on the 6th of April 2023 and will be abolished completely from the 6th of April 2024, meaning that there is no limit on how much may be saved into pensions. The annual allowance was increased from £40,000 to £60,000 from 6th of April 2023, giving a significant boost to those who have the capacity to save such large sums in any tax year. Those who have started to withdraw income from their pensions will now have the ability to contribute up to £10,000 per annum back into pensions under the money purchase annual allowance. This allowance was increased in April 2023 from £4,000.

annum through a tapered annual allowance in a tax year. They are now able to contribute £10,000 per annum. The amount that they are able to earn before this limit kicks in has been increased to £260,000.

ENCOURAGING RETIREES BACK INTO EMPLOYMENT These changes are a welcome set of reforms for pension savers but will benefit those with the ability to save more, such as NHS doctors and dentists, for whom the previous regime was deemed to be a reason for them leaving their professions early. Furthermore, for those who retired more recently, the increase in the money purchase annual allowance to £10,000 could tempt them back into employment, allowing them to join and contribute to pension schemes while still drawing income from the private pensions. These reforms will result in many people reviewing their retirement strategy. A secure and enjoyable future should not be left to chance so planning ahead as early as possible is recommended. And remember, if you are looking for a financial adviser to support your planning, ensure they are suitably qualified and regulated. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.

There is further benefit for very high earners, who depending on their income structure, could previously only contribute £4,000 per

Richard Libberton is a Chartered Financial Planner with Thomson Cooper Accountants. He has held a number of senior positions within some of the UK’s largest mutual life, pensions and investments companies during his career. He is responsible for managing the financial planning and investment requirements of clients. Richard is a Fellow and past Chair of the Personal Finance Society Central Scotland Region, and an advocate for diversity and improving standards in advice. Richard has also contributed to thought leadership initiatives, joining BBC Radio Scotland to chat about the value of Life Assurance, Income Protection & Critical Illness Cover, as part of their Clever About Cash series. www.thomsoncooper.com

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COMPETITION WINNER Last issue’s competition winner was David Tindall of Carnoustie Tyres (pictured) who correctly guessed it was a Vauxhall MOKKA.

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24 WWW.SMTA.CO.UK

Other winners who will also receive a LED PALM LIGHT are: Peter McKenzie at DMK Motors - Lochcarron Scott Beattie at Alford Auto Station - Alford Ian Sim at Ian Sim Ltd – Ladybank Graham Davidson at The Autolounge – Aberdeen Stuart at Qwiklube – Musselburgh Colin Brown at Meadowpark Garage – Bathgate Michael at Gow Motor Services – Denny Ian MacCallum at MacCallum Motor Engineers – Dunoon Thanks to everyone who entered, you can find this issue’s competion on page 16. Good luck!

THE BATTERY BRAND TRUSTED BY THE TRADE.

These vehicle manufacturers made the right choice, you can too: Audi Bentley BMW Bugatti Chevrolet Chrysler Citroën Ferrari Fiat Ford GMC Honda Hyundai Jaguar Kia Lamborghini Land Rover Maserati Mercedes-Benz Nissan Peugeot Porsche Renault Seat Škoda Toyota Vauxhall Volkswagen Volvo

Scan here to visit the the YouTube channel.

www.varta-automotive.com

ORIGINAL SPARE PART

MADE IN GERMANY

It all starts with WWW.SMTA.CO.UK

SMTA ANNUAL DINNER & AWARDS 2023 What a night was had at this year’s SMTA Annual Dinner & Awards 2023! Another hugely successful event bringing Scotland’s motor trade together under one roof in the stunning ballroom at Hilton Glasgow! Just under 400 guests were in attendance and it is fair to say it was a fantastic evening had by all! Huge thank you to our headline sponsor, Santander Consumer Finance whose support is greatly appreciated and thanks also to Adesa, our drinks reception sponsor and all our other supporting sponsors: Arnold Clark, Car Care Plan, Close Motor Finance, Dingbro Marsh, MotoNovo Finance, Viking Wholesale Tyres and Supagard. Our guests were entertained on the night by the one and only Mike Brewer from TV’s Wheeler Dealer fame. The audience were enthralled by his stories of his motoring career which has lead him to travel across the world with his various tv shows about cars! We’d like to give a massive congratulations to our worthy C.A.R Star Winners 2023, we are always blown away by the amazing generosity of our members for taking the time to contribute and support their local communities and causes close to their hearts - makes us proud to call you members!

Drinks Reception Sponsor

2023 AWARDS

CAR Star winners 2023: AW Autotech, Aberdeen Belmont Motor Group, Wallyford Bridgend Group, Kilwinning & West of Scotland J&R Auto Services, Crieff Knockhill Racing Circuit, Fife

PRESIDENT’S AWARD President’s Award went to Nicola Gilda of Peoples Ford, Edinburgh. A truly worthy winner of our coveted President’s Award, Nicola has been in the industry for 30 years and is very well respected in the motor trade for her quality approach to everything she does as well as the huge contributions Nicola and her team make to their community with various fundraising efforts We will be featuring each and every one of our C.A.R Star winners in future editions of this magazine!

Supporting Sponsors

26 WWW.SMTA.CO.UK

Images by CFH Photography

Headline Sponsor

Supporting Sponsors

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15-YEAR OLD RALLY DRIVER LUCY CREE TALKS ABOUT HER CAREER Lucy Cree, 15-year-old rally driving daughter of Gibsons Auto Services Partner, Ross Cree, SMTA asked her about her fledgling career SMTA: If you could tell us a bit more about your rally career? LC:

I got my first rally car, as a surprise from my parents on my 14th Birthday in 2022 and I did my BARS test a few weeks after that. This test is to gain knowledge of the motorsport rules and knowledge of driving in competition and to gain an MSUK competition licence. Two months later I competed in my first event at Ingleston Circuit. There are nine rounds of events all over Scotland and some in England and Wales.

I proceeded to learn more and more at each event, improving my skills, increasing my speed and making new friends along the way. I am now

28 WWW.SMTA.CO.UK

coming to the end of my second season competing with only one rally left this year, this season I have continued to improve my speed and skills and I am looking forward to next season in a new car that my Dad is building at present. In the 2022 Junior 1000 Ecosse Championship Awards I was awarded Best Liveried Vehicle, Highest Placed Female Driver and “The Barlow Shield” or “Digby Shield” as it is known, for determination in continuing at the Anglesey Event when I was brought to tears with fear driving in pitch black torrential rain, spotlights on full, while still trying my best to be competitive and get a finish.

SMTA: How did you get into racing? LC:

My Dad has rallied for years in various Subaru’s and Mk2 Ford Escorts, rallying is his passion, he previously worked for M-Sport in Cumbria as a Rally Mechanic for the Ford WRC Team, supporting Colin McRae, Carlos Sainz, Marko Martin and Mark Higgins, I guess this passion has been passed onto me.

SMTA: What is a typical day in the life of a rally driver like? LC:

On event day it is a very early morning start, nutritious breakfast followed by a chocolate bar or energy bar and an energy drink before setting off. The drivers are all called to a Driver’s Briefing, we are instructed on the circuit, rules of the event, do’s and don’ts, and then it’s time to go. We get on our protective race suits, gloves, balaclavas, helmets and race boots. We all use HANS devices for safety, this attaches to the helmet and the seat, (Head and Neck Support), to ensure that in the event of an accident, the head and neck are much less likely to be injured. The harnesses are pulled up as tight as they can go to ensure you are firmly in your seat and then we drive up to the start line.

SMTA: What is your biggest achievement? LC:

Being awarded the “Digby Shield” for determination in continuing in horrendous weather and dark conditions at the Anglesey rally.

SMTA: What is your ambition for the future? LC:

To carry on rallying and be an inspiration to other young females who may have an interest in this sport, anything is possible with focus and determination.

SMTA: Can you tell us a bit more about your all female team? 5-4-3-2-1-GO! full concentration, as fast as you can push the car, eyes on everything in front of you and listening to the route notes read by my navigator Chloe, we are trying to get the best line, the fastest route through the circuit to the finish. On finishing the stages you are full of adrenaline, literally shaking inside, a few sugary drinks and off to the results ceremony. The top 3 drivers get their podium places and a few bottles of Non-Alcoholic Champagne are popped and sprayed. Then its pack up everything, car back onto the trailer and set off on the drive home. The next day you can get a bit of a low as the rally blues can kick in after an event, then you just focus on the next event and look forward to the same thing all over again, it’s a bit addictive.

events, recently we went across to Belgium for the Mk2 Escort Challenge Rally and over to Mull where Chloe was navigating in the Mull Rally for her Dad in their Subaru Impreza. SMTA: How do you think more females can be attracted into motorsport? LC:

I think females tend to shy away from motor sport as it is mainly seen as a male sport and is definitely male dominated, maybe having separate podium first, second and third places for all female teams would give females entering into this sport something to aim for but at the present there are not enough females involved in this sport for this to work. Obviously we are aiming to be in the top 3 overall but encouraging females to compete against one another within the events may help increase the interest in the Junior 1000 Series.

LC:

Our team consists of myself driving and my navigator Chloe Fleming, Chloe also comes from a motoring background and she and her father own and run a garage business, Uddingston Service Centre, this has meant we have had a lot in common and the result is that we get on great. Bonding with your team mate is super important as you need to fully trust in their notes and instructions during a live competitive stage. Chloe and I now get together outwith my rallying

Currently this season we are the only all female team in the Junior 1000 Rallying Series throughout Scotland, England and Wales, hopefully next year there will be more all female teams to compete against, we also use our social media platforms under “Lucy Cree Rallysport” to let people see our all female team competing and hopefully this will generate more interest in the sport

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MARKET INSIGHT

by Debbie McKay Commercial Sales Director, MotoNovo Finance

THE GOVERNMENT’S 2035 EXTENSION – THE USED BEV OUTLOOK The used Battery Electric Vehicle (BEV) market will continue to grow in the months and years ahead. The trend has already been set by the continuing growth in new BEV sales driven by government backed incentives for business users/fleets. While there has been plenty of debate about the impact of the government’s recent announcement that ICE sales will extend into 2035, our assessment is that it is likely to have only a modest effect on BEV sales. To a large extent, the course for BEVs

customer experience of using public EV

driving experience when compared to an

is already set, not least of all because

charging points, including reliability, pricing

ICE car will be overcome in areas such as

manufacturers’ production plans are unlikely

transparency and contactless payment,

battery life and usability. However, this can

to change significantly. Looking further, other

should, along with a rapidly growing public

be helped.

government plans remain unaltered;

charging infrastructure, help address range

The continuing success of new BEV sales

Zero-Emission Mandate – from next year,

anxiety concerns.

can largely be attributed to government

manufacturers will need to limit annual ICE

However, the potential momentum is

incentives. They have successfully seen

sales as the government mandate sets rising

supported further by other factors;

the market go from ‘early adopters’ to

minimum annual targets for zero-emission

Affordability – used BEVs are starting to see

approaching ‘early majority’ status.

sales, starting at 22% of new cars sold in 2024

price parity with their IC equivalents. Even

In 2018, BEVs held just 0.7% of the new car

and growing to 100% by 2035. However, it

where the purchase price is higher, the

market in the UK. By the end of 2023, this is

should be noted that some manufacturers

running costs of BEVs, especially for people

forecast to have risen to 18%. Government

plan to reach 100% sooner.

with a home charger able to take advantage

incentives have overcome buyer concerns.

Benefit in Kind Tax (BIK) – available to

of lower overnight electricity prices, provides

We want a similar government initiative made

business users, BIK taxation is significantly

a compelling proposition.

available for the used BEV sector.

lower on BEVS than comparable ICE cars.

The Influx of Chinese BEVs – while the impact

The growth of used BEVs will not happen

At 2% for the 2023/2024 and 2024/2025

has yet to be fully felt, the emergence of very

overnight, but I urge dealers to remain open

financial years, it is considerably lower than

competitively priced BEVs from new Chinese

to a growth trend that looks inevitable and

the comparable ICE rate, which can rise as

brands could have a significant effect. Their

prepare themselves for the change ahead.

high as 37%. After 2025/2025, BIK on BEVs

appeal to consumers is clear from MG’s

will increase by 1% per year, reaching 5% by

recent result announcement of UK sales

2027/2028. It’s still well under the ICE rate.

worth more than £1bn for 2022.

Public Charge Point Regulations 2023 –

Finally, as BEVs become common, consumer

the new regulation aimed at improving the

concerns and understanding of the different

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MARKET INSIGHT

by Kimberly Stickley, Legal Advisor at Lawgistics

DOCUMENT YOUR CUSTOMERS’ CONSENT Whether you are a vehicle sales business or a service and repair garage, customer consent is of paramount importance for your business. We all know the drill when a customer wants to have their vehicle back on the road, but what does this exactly entail? Various investigations may show an issue with an injector or turbo unit, but once replaced, a compression test could show a crack in the block. At each investigation stage, the customer must provide their consent which must be kept either in a written format i.e., emails, or via recorded phone calls (with the customer’s consent). Detailed recordkeeping is good practice, especially for vehicle sales and repair enquiries made within the first 30 days following purchase. Under the short-term right to reject, a trader is not entitled to repair the vehicle; however, the customer may opt for a repair instead of a rejection. The key wording here is the customer has the “option” for a repair. If a trader repairs a problem, whether it be minor or major, but without the consumer’s consent or instruction, the trader is deemed to have accepted the rejection of the vehicle. The basis for this rationale is if the trader was not liable to repair the vehicle, why would they get involved? It is essentially agreeing that the fault was present at the time of sale and that the consumer is entitled to a rejection.

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This is covered by Section 22 of the Consumer Rights Act 2015, but be mindful of Section 22(6); ‘(6) If the consumer requests or agrees to the repair or replacement of goods, the period mentioned in subsection (3) or (4) stops running for the length of the waiting period.’ On the other hand, if a customer has a faulty vehicle needing repair, their consent must be sought before work is undertaken. Should a customer deny any consent was given to essentially spend their money, you must be prepared with documentation or evidence to the contrary. Should the customer issue a court claim, and you cannot provide tangible evidence, it may be difficult to convince a judge of your side of the story. It is common for some repairs to be completed in stages. It could be a vehicle that is delivered as a non-runner and repairs are needed to get it running. Once you get it running, you may conduct a compression test and find further faults that would have gone unnoticed until the vehicle was running. At each stage of repair, you must alert the customer and seek consent to continue with repairs.

You should remain mindful of customer expectations about getting the vehicle back on the road. It is impossible to predict a repair outcome, regardless of how much motor trade experience you may have. Also, you should not advise a customer on the cost to get the vehicle working again, as you may be wrong. For example, you could tell your customer it will cost £2k for the repairs to get the vehicle running. However, in reality, the vehicle may need further repairs estimated at £5k, and you would have been unaware of these additional repairs until the vehicle was running again. Before any decisions or advice is provided to the customer, you must present the facts to ensure they are fully informed. Once you have discussed the vehicle requirements with the customer, ensure you have their consent to continue with the work and maintain a record of it. Good recordkeeping will save you a lot of hassle and may be a deciding factor in a court case.

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MARKET INSIGHT

TRADE CREDIT AND BAD DEBT INSURANCE: PROTECTION FOR THE AUTOMOTIVE INDUSTRY As with many markets, Covid-19 and Brexit continue to impact Britain’s automotive industry. Scotland’s new car industry was hit by the effects of the pandemic, including coronavirus lockdowns and disruptions caused by supply chain issues.1 As well as continuing to feel the effects of the pandemic, the automotive sector also faces uncertainties due to technological advances, changing consumer tastes, environmental regulations and economic conditions.2 Borrowers are being affected by higher interest rates, increasing the risk that they will struggle to meet repayments or will default on loans amid higher living costs.3 This is a concern given Britain’s car market relies on billions in finance debt for new and used purchases.4 Failure to pay these car loans can leave businesses with bad debts—outstanding balances that cannot be recovered and must be written off as uncollectable. While there is always a risk that money can’t be collected, there are measures businesses can take when offering credit to customers, such as taking out trade credit insurance.

WHAT DOES TRADE CREDIT INSURANCE COVER? Trade credit insurance can give businesses peace of mind about a consumer’s ability to pay vehicle loans, enabling them to continue trading with partners facing cash flow challenges.5 It gives businesses the confidence to extend credit to new customers and improves access to funding, often at more competitive rates.6

Having security and needing to access finance does not only apply to sole traders. Larger franchised dealer groups aren’t impervious to the risks of being let down with missed payments for goods and services provided on a credit basis.

BENEFITS OF TRADE CREDIT INSURANCE Trade credit insurance can protect a business if a customer fails to pay due to a lack of funds or insolvency. For some businesses that remain solvent but overstretched, cash flow problems (for example, caused by expanding too quickly) can lead to missed repayments. This can often result in claims on trade credit insurance policies. Loans aren’t always a sustainable solution to the debt burden, as higher interest payments mean some borrowers may struggle to meet their repayments. Businesses and households are under pressure from increased living costs and higher interest rates. After accounting for the higher cost of living, the proportion of households with high debt service ratios has increased and is expected to continue to do so through 2023, according to the Bank of England’s Financial Stability Report in July 2023. Higher interest rates lead to greater debt-servicing expenses for households and businesses, increasing the prospect of loan defaults and amplifying credit risks for lenders.7 Trade credit insurance offers motor traders protection against the potential nonpayment by customers for goods or services they purchase, as well as giving access to comprehensive insights and guidance from

industry professionals. Essentially, trade credit insurance provides the key to successful trade.8

HOW TO MAKE YOUR TRADE CREDIT INSURANCE COUNT There are steps to take to improve the chances of a successful claim: y Keep documents to prove to insurers that policy terms and conditions have been met. Transactions should be fully documented to ensure claims are not rejected or reduced. y Policyholders should be familiar with and adhere to their terms and conditions. y Be vigilant so you don’t fall victim to fraud. Buyer impersonators are common, so look for warnings such as changes in bank account details and contact numbers and check email addresses. If the buyer isn’t interested in negotiation, price, or requests to change delivery address at short notice, they may not be legitimate. y Agree on credit limits in advance before any debt builds up. For questions about trade credit insurance, get in touch with a Marsh Commercial advisor. Visit www.marsh.com/uk/services/ trade-credit.html 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.

https://www.bbc.co.uk/news/uk-scotland-scotland-business-60995324. 2https://www2.deloitte.com/us/en/insights/industry/retail-distribution/consumer-behavior-trends-state-of-the-consumer-tracker/auto-industry-challenges.html. 3https:// www.bankofengland.co.uk/financial-stability-report/2023/july-2023#:~:text=A%20significant%20increase%20in%20borrower,2023%20Q1%20(Chart%202.6). 4https://www.theguardian.com/business/2023/jul/18/high-interest-rates-new-carlending. 5https://www.marshcommercial.co.uk/for-business/trade-credit-insurance. 6 https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/business-insurance/trade-credit-insurance/what-does-trade-credit-insurancecover/. 7 https://www.bankofengland.co.uk/financial-stability-report/2023/july-2023#:~:text=A%20significant%20increase%20in%20borrower,2023%20Q1%20(Chart%202.6). 8https://www.abi.org.uk/products-and-issues/choosing-the-rightinsurance/business-insurance/trade-credit-insurance/ 1

34 WWW.SMTA.CO.UK

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)

S M TA M E M B E R P R I C E

NON-MEMBER PRICE

£ 5 3 . 0 0 P L U S VAT

£ 61 . 0 0 P L U S 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.

YO U R T R A I N I N G A N D A S S E S S M E N T M U S T B E C O M P L E T E D B Y 3 1 S T M A R C H 2 0 2 4

2L DIESEL INGENIUM ENGINE WITH LOW PRESSURE AND AN EXHAUST VALVE COOLER BLOCKAGE Vehicle Types: Land Rover / Jaguars (and any vehicle fitted with the 2.0 diesel ingenium engine.

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

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

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

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

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.

• P049B-00 EGR “B” Flow Insufficient Detected - No sub type information • Other low pressure EGR related DTC

LOW PRESSURE EGR • The LP EGR system is used on EU5 and EU6 market vehicles only. • The LP system takes exhaust gases from the exit of the Diesel Particulate Filter (DPF) system, and mixes it with the fresh air intake into the turbocharger. • The gases are transported from the DPF outlet to the LP EGR cooler via a pipe. The LP cooler has no bypass mode, so only cools. • There is a simple mesh filter fitted before the gasses reach the outlet of the cooler that prevents larger particles of soot etc. from entering the turbo charger system. The mesh filter is a non-serviceable component. • The cooled gases are then directed through the LP EGR valve, via a butterfly flap. • The valve consists of a tube between the fresh air duct and the turbocharger, with the butterfly valve covering the EGR inlet, in the center bottom of the EGR valve.

4. Is the cooler blocked, See #NOTE# blocked LP EGR cooler filter image below. We have seen the filters internally block as per the image below, this would require a new filter set LR126126 cleaning of the EGR/Throttle body and the Low pressure EGR cooler. 5. Low pressure EGR pipe on the nearside is it blocked. 6. Look for signs of sooting around the clamp. 7. Black soot around the tail pipe. 8. Loosen the SCR assembly, look up into the cooler and check for excessive levels of soot. 9. DPF/SCR canister cracked internally. 10. JLR process change LP EGR and cooler. 11. Change cooler pressure sensor and SCR/DPF unit. 12. Pressure sensor is bolted to the intake side of the engine looks like a DPF pressure sensor one goes to the cooler pack and the longer pipe goes to cooling unit this measures the pressure either side of the unit. 13. If the cooler also shows signs of being excessively blocked, then the cooler may need replacing as well. 14. The DPF may also need inspecting for cracks that can draw in air from the outside causing excessive sooting.

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

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

POSSIBLE CAUSES

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

• Excessive undetected soot in the DPF

Once completed check below: Check soot mass in the oil and if too high carry out an oil service, or;

• Charged air induction system leak • Low pressure EGR cooler blocked / filter blocked

PROVIDED BY

• Low pressure EGR valve mechanical integrity • Low pressure EGR differential pressure sensor mechanical integrity • Connector is disconnected, connector pin is backed out, connector pin corrosion • Vehicle is fitted with TWO EGR valves a LP and HP unit. One is DPF side to turbo the other is exhaust manifold to intake manifold.

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

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NOTE: The above picture shows a blocked LP EGR cooler filter LR126126 covered in soot particles!

REPLACEMENT KIT Where possible visually inspect downstream of the DPF and LPEGR exhaust pipe for soot using a bore scope or visually check with the exhaust separated look for soot content in the exhaust system.

STRETCHED TIMING CHAIN DIAGNOSIS - VOLKSWAGEN MODELS Affected engines: 2.0 liter turbocharged TSI, TFSI Engine codes CCTA, CBFA, CAEA, CAEB, CDNC Affected models: 2009 – 2015 Volkswagen Jetta, Tiguan, GTI, Passat CC, Beetle, EOS (2008.5 and up) If the malfunction indicator light (MIL) is illuminated, check for the following fault codes (DTCs) stored in ECM fault memory: P0011 / P0016 / P0341 / P000A / P052A

REPAIRS CHECK-VALVE OIL SCREEN PROBLEMS If timing specifications (as read using scan tool) exceeds ±5°, but distance measurement between timing marks is correct (124 – 126 mm), check that the oil screen in the camshaft adjuster bridge is still in place. If oil screen has come apart and lodged itself within the camshaft adjuster spool and intake camshaft adjuster: • Remove camshaft bearing bracket. • Check non-return check-valve in bearing bracket.

Problem description: Timing chain problems, including stretched timing chain, malfunctioning timing chain tensioner and rattling noises from the timing chain housing have been repeatedly reported for the VAG TSI 2.0 liter turbocharged engine family. In some cases, a stretched chain can throw camshaft timing off. In extreme cases, the chain can break leading to catastrophic engine failure. If the engine is running rough and the MIL is illuminated, get preliminary diagnosis using a scan tool plugged into the OBD II outlet underneath the dashboard. Monitor the ECM / live data. Use data block (MVB) 91. With the engine at idle, intake camshaft adjustment specified and actual should be within +5 degrees or -5 degrees. Any larger value indicates a timing chain that is dangerously stretched. Additional confirmation: To confirm the diagnosis in case of a running engine, or to ascertain the cause of problems for an engine that does not run, check mechanical camshaft timing. • Remove upper timing cover. • Rotate engine until camshaft timing marks on sprockets point up. • Measure distance between camshaft timing marks. • The correct distance between marks is 124 – 126 mm. • The distance specification from intake camshaft to the mark on the cam cover is 61 – 64 mm. If timing is off, the timing chain is stretched and should be replaced. In addition: • If timing is off by as much as one whole sprocket tooth, it indicates that the chain jumped timing and may have caused valve / piston interference. Additional testing for internal engine damage is required. • Inspect for the oil screen located in the camshaft adjuster bridge. It may have come apart and lodged itself within the camshaft adjuster spool and the intake camshaft adjuster (only serviced with the intake camshaft).

TMD FRICTION PROVIDES BEST-PRACTICE BREAKING TIPS THIS WINTER

• Check camshaft bearing journals and camshafts. If scoring can be felt on journals or camshafts, replace bearing bracket and camshaft. • Remove camshaft sprockets and use pressurized oil to test non-return oil check-valve in cylinder head. Apply 0.5 bar pressure and make sure pressure does not drop or leak away within 1 minute. • If cylinder head check-valve is leaky, remove cylinder head and replace check-valve. In case of torn oil screen: • If strainer is metal, reuse camshaft bearing bracket using a new checkvalve. • If strainer is plastic, replace camshaft bearing bracket. Make sure remnants of strainer are removed from oil duct. Remnants can clog up oil duct in camshaft bearing bracket or drift into camshaft bearing. This can damage other components. Check camshaft adjuster for debris and thoroughly clean if necessary. Check camshaft adjuster control valve for debris and if necessary clean thoroughly.

STRETCHED TIMING CHAIN PROBLEMS If timing chain is stretched past 126 mm maximum range, replace timing chain and tensioner. In addition, replace camshaft adjuster bridge, intake camshaft and spool valve adjuster. Note 1: Be sure to search for a missing oil screen in camshaft adjuster bridge. See section on Check-valve oil screen problems. Note 2: Be sure the spool valve piston is level with the retaining clip.

JUMPED TIMING CHAIN PROBLEMS If the distance between camshaft timing marks exceeds 126 mm significantly, there is a chance the timing chain actually jumped one or more teeth and has caused valveto-piston impact. If this is confirmed, replace cylinder head, timing chain, timing chain tensioner, crankshaft spur gear and crankshaft bolt.

Scott Irwin MIMI, Head of Technical Training at TMD Friction, explains the impact that winter conditions can have on the proper functioning of the braking system, providing the most relevant advice and support to take best care of it. What components should technicians pay special attention to when servicing cars in winter? Particular attention should be paid to vehicle brake pipes and hoses, both rigid and flexible. Under the influence of slush and snow, old brake fluid with a lot of moisture in the system can be a harmful influence on these parts, as they can start to corrode from inside or outside. To verify a brake hose defect, technicians should carefully examine the hoses and their metal terminals for leaks, rust or mechanical damage. The hoses need to be in good technical condition, as they act as the carrier of the brake fluid and are therefore crucial for the proper functioning of the brake system. What tools are available to technicians to check the quality of brake fluid? The operational efficiency of the brake fluid can be checked using a special tester, such as TEX1000BFT from Textar, which allows the technician to determine the exact boiling point of the brake fluid. Manufacturers recommend replacing it on average every two years or 60,000 km, whichever comes first. When replacing the brake fluid, we must remember that boiling point is not everything – for proper operation of all systems, such as ABS / ESP, it is not enough that the fluid does not ‘boil.’ It must have the right viscosity, which ensures sufficient fast pressure changes in the system. It is important to choose not only the DOT classification by number, but also the proper viscosity (e.g. DOT4, DOT4LV). How does moisture in winter affect braking components? Moisture can cause corrosion of electrical connectors. ABS plugs and rings are another element susceptible to adverse winter conditions. Some replacement plugs do not have factory seals, for example. The problem of rust can also apply to calipers, brake pads and discs, which means in all places where moisture gets. The brake pads can corrode together with the guides, which will prevent their free movement during brake operation. The winter period is conducive to these phenomena due to the increased humidity. For example, a characteristic rust coating may appear on the surface of the brake disc. If these are trace amounts, when braking, the driver will hear the characteristic sound of scraping, similar to that of grinding steel with coarse sandpaper. After a few braking operations, rust will come off and the specific noise will stop. In extreme cases, after a long standstill, corrosion can permanently damage the structure of the disc, so it is important that the technician can access highquality parts and the owner is advised to drive the car regularly. On the rear axle, the most common fault is the corrosion of the handbrake cables, which, if not used too often, tends to corrode faster. If the cable has a broken shield, water will get inside it. This causes contamination and progressive corrosion of the cable, especially of its ends, which in conditions of negative temperature can lead to a blockage. If the water in the cable shield freezes, it may not be possible to release the hand brake in the cold. What is the best practice to avoid problems with the system in winter? In order to avoid problems with the braking system during winter, first of all it is recommended to check regularly its condition and if necessary to replace individual elements with new ones. From the point of view of the correct operation of the brakes, assembly and maintenance of the system is very important. It should be remembered that the appropriate points should be protected against corrosion with a dedicated ceramic or synthetic grease, depending on the purpose, such as Textar’s Ceratec – Texcear01. It is also worth using the vehicle manufacturer’s operating instructions. At textar.com you can find information about lubricants and other products from Textar’s vast range.

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FEMALES IN FOCUS 2023 SMTA was delighted to hold its third ‘Females in Focus’ lunch event at the Grand Central Hotel in the heart of Glasgow. This event was very well enjoyed by all who attended, and we were entertained by our wonderful panel of inspirational women including our headline speaker - Ann-Maree Morrison MBE.

Headline speaker at the event was Ann-Maree Morrison MBE.

Ann-Maree founded and ran Labels4Kids, a multi-award-winning e-commerce labelling business, for 19 years. The business was sold in September 2022 and with her e-commerce, Chartered Accounting and Management Consulting background she now consults and mentors in e-commerce for SMEs looking to scale internationalise, or just re-platform or start their online adventure. In 2022 Ann-Maree was awarded an MBE in the Queen’s Jubilee Birthday Honours list for services to both Women In Business and to the Economy. This is related to both ecommerce work over the years and running the Ecommerce Club in the Forth Valley area for 13 years, as well as work on the economic empowerment of women and girls with W20 UK, where she is co-chair of the UK Delegation, and to educating and mentoring students over the years. Our panel on the day was Nona Bowkis, Head of Legal Services at Lawgistics which provides legal advice to the retail motor trade, Julie Jamieson Director of Marketing & Communications at the John Clark Motor

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Group and finally Wendy Oliver who was our very much well-deserved winner of the ‘Nan Lindsay Award 2023’, Wendy runs Thos. B Oliver Garage based in Denholm, a family business that’s been around since 1919. SMTA ‘Nan Lindsay Award’ - Nan Lindsay was a well-known figure in the Scottish car industry, the first and so far, the only woman to serve as President of the Scottish Motor Trade Association (SMTA). Nan served as President from 1992-94. Nan spent most of her career in the motor industry. She was the wife and business partner of Dumbarton car dealer John Lindsay who ran Dumbuck Garage, outside Dumbarton, the garage had long been a famous Jaguar dealership run by Sir Jackie Stewart’s father, made it a natural stopping-off point for car buyers or simply enthusiasts. Sadly, Nan passed away in 2019 aged 75 and in her honour, SMTA decided to create this award dedicated to her memory. Our first recipient of this award in 2021, was Mary-Anne McNaughton of Central Car Auctions and last year the award was presented to Catherine Kelly of Marsh Commercial. A huge thank you to our sponsors at this event – MotoNovo Finance for their drink’s reception sponsorship and to our supporting sponsors: Dingbro; Garage Equipment Solutions (GES), Lawgistics, Textar and Tyres Life.

Drinks Reception Sponsor

Supporting Sponsors

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MARKET INSIGHT

by Simon King Interim CEO, Autotech Group

NEW SURVEY REVEALS YOUNG TALENT DEMANDS CHANGE IN AUTOMOTIVE INDUSTRY THIS LEAVES A STARTLING ONE-THIRD OF QUALIFIED OR NEARLY QUALIFIED VEHICLE TECHNICIANS WITHOUT THE confidence necessary to pursue their qualification as a profession. It is clear that this lack of assurance among many young technicians is a significant cause for concern. This is likely due in part to the fact that employers are often unwilling, or under-resourced, to consider hiring qualified candidates without practical experience.

CREATING A ROBUST TALENT POOL

A survey has highlighted the aspirations, concerns, and expectations of young vehicle technicians aged 16-24. Autotech Academy’s ‘Automotive Future Survey Report’, which was conducted between June and August 2023, indicate that the industry urgently needs to prioritise the next generation of automotive talent and highlight the pressing need for a more farsighted approach.

SKILLS SHORTAGES AND THE YOUTH PERSPECTIVE For years, the automotive industry has grappled with skills shortages and the challenge of attracting fresh talent. In fact, the Institute of the Motor Industry (IMI) says there are 160,000 vacancies in the sector that need filling by 2031. The survey, which focused on respondents across 90 colleges in the UK, presents a stark view of the situation, finding that 42% lack confidence in securing a well-paid job within the industry after completing their automotive course.

A PASSIONATE, AMBITIOUS WORKFORCE Revealing an industry brimming with ambition, two thirds of respondents cite their unwavering passion for all things automotive as the primary reason for choosing this career path. Over 15% cited that they prefer the hands-on nature of the

40 WWW.SMTA.CO.UK

automotive industry, emphasising the value of practical skills. Encouragingly, almost ALL respondents (95%) expressed their desire to carve out a career in the automotive industry.

THE DRIVE FOR CAREER GROWTH Young technicians aren’t just looking for jobs; they’re seeking opportunities for growth. Almost 90% expressed strong confidence that they will enjoy their careers within the automotive industry and a resounding 85% envision a long-term future as vehicle technicians. This dedication signifies a commitment to the industry and a desire for career stability.

URGENT INDUSTRY ACTION REQUIRED However, there’s a stark discrepancy between enthusiasm and confidence in the industry’s ability to provide well-paid and secure jobs. Just two thirds of respondents are confident they will find a job in the motor industry. This figure slips down further (by almost 17%) when asked whether they are confident they will find a well-paid automotive job once they qualify. In an era where the automotive sector faces a severe skills shortage, this lack of confidence is a red flag.

The UK’s motor industry simply cannot afford to lose these talented individuals, and it is imperative that we find ways to develop more inclusive and accessible employment practices in our sector. By doing so, the industry can create a more robust and competitive talent pool, to the benefit of everyone involved. Simon King, Interim CEO of Autotech Group comments: “Autotech Academy’s ‘Automotive Future Survey Report’ is a call to action. It highlights the passion, ambition, and potential of the next generation of vehicle technicians and is a reminder that the automotive industry has much to offer in terms of innovation and opportunity. “Yet, it is essential to continue promoting and supporting the sector to ensure a strong and sustainable future for both the industry and the skilled professionals dedicated to it. By addressing these issues head-on, we can nurture the young talent that will help drive the automotive industry forward and ensure that its future is stable.” Autotech Academy provides newly qualified vehicle technicians with a pathway into automotive employment through a paid internship. Every candidate is vetted, interviewed and provided with a toolbox and uniform before embarking on a 6-12 month internship with a garage or dealership. Read the full ‘Automotive Future Survey Report’ visit www.autotechacademy.co.uk

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EXCITING NEW SKILLS PROGRAMME TO LAUNCH FULL DETAILS IN NEXT MONTH’S MEMBERS BULLETIN.

CAR FIGURES

OCTOBER 2023 SCOTLAND MONTHLY:

SCOTLAND YEAR TO DATE:

13,824

UK YEAR TO DATE:

139,070

REGISTRATIONS BY REGION

FUEL TYPE YEAR TO DATE Petrol

1,605,437

89,802 560

Highlands

Grampian

1,163

23,326

Petrol/Electric

14,474

Electric

Tayside 839

11,091

Diesel

357

Petrol/LPG

Diesel/Electric

Central 1,279

1,467

Strathclyde 7,476

Dumfries & Galloway

661

Fife Lothian

168 Borders

211

TOP 10 MARQUES TOP 10 CARS YEAR TO DATE

YEAR TO DATE

Vauxhall

13,553 (9.75%)

Volkswagen

11,611 (8.35%)

Ford

9,785 (7.04%)

Audi

9,158 (6.59%)

Kia

8,277 (5.95%)

Vauxhall Corsa

5,972

Vauxhall Mokka

3,591

Ford Puma

3,539

Nissan Qashqai

3,008

Kia Sportage

2,506

Nissan

6,499 (4.97%)

Volkswagen T-Roc

2,492

BMW

6,466 (4.65%)

Nissan Juke

2,404

Toyota

6,443 (4.63%)

Hyundai Tucson

2,352

Peugeot

6,102 (4.39%)

Audi A3

2,273

6,083 (4.37%)

Mini Mini

2,254

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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

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FRASERBURGH

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GYLEof automotive component distribution. Since 1973 Dingbro have become synonymous with excellence inBATHGATE the field BELLSHILL PAISLEY With over 1500 employees in 33 sites throughout ScotlandEASTand North West England, Dingbro is one of the largest KILBRIDE www.dingbro.com independent motor factor groups in the UK. Servicing an area from Shetland and GALASHIELS the Faroe Islands down to the KILMARNOCK Scottish borders andAYRNorth West England.

Dingbro are also a member of the Parts Alliance which further enhances our service. DUMFRIES

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