BULLETIN Your monthly news round-up of the Scottish Motor Industry
JULY 2021
STAFF & SUPPLY SHORTAGES THREATEN UK CAR PRODUCTION REVIVAL 69,097 CARS ROLL OFF PRODUCTION LINES IN JUNE, WEAKEST TOTAL SINCE 1953, BAR COVID HIT JUNE 2020.
UK FACTORIES TURN OUT 498,923 CARS IN FIRST HALF OF YEAR, DOWN -38.4% ON FIVE-YEAR AVERAGE.
LATEST FORECAST SUGGESTS GLOBAL CHIP SHORTAGE COULD NEGATIVELY IMPACT PLANNED UK PRODUCTION VOLUMES BY UP TO 100,000 UNITS.
INDUSTRY CALLS FOR IMMEDIATE ACTION TO MITIGATE IMPACT OF SELF-ISOLATION OR RISK FURTHER BLOW TO RECOVERY.
UK car factories turned out 69,097 units in June, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). While this was a rise compared with the Coviddepressed June 2020, it still represents the worst June total since 1953 as the global chip shortage, caused by the pandemic, and other factors continued to take a toll on production.1 The performance rounded off a turbulent first six months for UK car production, with the pandemic, new trading rules with Europe and supply issues causing ongoing challenges. 498,923 units rolled off production lines, down -38.4% on the five-year, first-half average representing a loss of 311,160 cars worth more than £8.5billion.2 This reflects how far the sector must go before it can talk about recovery. Exports continued to sustain British car manufacturing with more than eight in ten (83.4%) models made here so far this year shipped overseas. More than half of these (51.7%) headed into the EU, with the US the UK’s next most important global market (taking 18.8% of exports) followed by China (7.8%), Japan (1.9%) and Australia (1.8%). UK production of battery electric (BEV), plug in hybrid (PHEV) and hybrid electric (HEV) vehicles, meanwhile, remained steady year-to-date with around a quarter (22.6%) of all cars alternatively fuelled. However, with the looming
1: June 1953 – 57,535 cars made 2: Five-year average for first half (2015-2019): 810,083 units 3: Independent forecast by Auto Analysis July 2021
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end of sale date for new petrol and diesel cars less than nine years away, the industry is challenged to accelerate the transition from fossil fuel to zero emission vehicles. This will require significant investment into vehicle manufacturing, battery production and supply chain transformation for which a clear commitment to enhancing UK automotive competitiveness is essential. Despite the easing of Covid restrictions, manufacturers are experiencing staff shortages due to self-isolation arising from notification of contacts outside the workplace. This is putting production at risk and is another drag on the sector’s recovery. Indeed, an independent study forecasts the negative impact on planned UK car production, primarily due to the worldwide shortage of critical semiconductors, could be as much as 100,000 units this year.3
Article courtesy of SMMT Read the full article here
SEXUAL HARASSMENT IN THE WORKPLACE By Caroline Cockbain, Associate Director @ Just Employment Law
Sexual harassment has been unlawful for decades and yet, in recent years, as more and more people perhaps have felt confident about speaking out regarding their experiences (#metoo), it remains clear that it is still an issue for many in the workplace. The Equality Act 2010 is the most important law on sexual harassment. The Act defines sexual harassment as “unwanted conduct of a sexual nature” which has the purpose or effect of violating dignity or “creating an intimidating, hostile, degrading, humiliating or offensive environment”. A wide range of behaviour can come under this definition, but the common factors are the effect that the conduct has on the victim, and that it is unwanted. Following the publication of an earlier report by the Women and Equalities Select Committee in 2018, the government carried out a consultation focusing on tackling sexual harassment in all its forms, which ran from July to October 2019. However, shortly after the consultation closed in the Autumn of 2019, and before the government responded on the consultation, life for everyone shifted dramatically as a result of the pandemic.
The government response to that publication, now published this week (Consultation on sexual harassment in the workplace: government response - GOV.UK (www.gov.uk)) confirmed that there is now a chance to think more broadly about the fair treatment and environment that every employee should expect. The government intends to take steps to prompt employers to do more, and to make ‘a positive difference’ in this area, resulting in a safer workplace for all. The main proposals arising from the consultation are as follows: y The government intends to introduce a duty requiring employers to take positive steps to prevent sexual harassment; y The government has confirmed that it intends to introduce new protections from third-party harassment (which, we anticipate, will involve employers more
closely managing relationships and interactions between staff and clients/ customers/other business contacts); and y Finally, the government is considering extending the time limit for bringing Equality Act 2010 claims to the employment tribunal from the current 3 months from the date of the discriminatory conduct (or the last in the series of conduct) to 6 months, on grounds that this may allow greater access to justice for those concerned. The government has confirmed that it intends to legislate to provide for the above changes as soon as possible, but no timetable has been announced at present. We will circulate a further JEL update once more detail is known.
www.justemploymentlaw.co.uk
TRADE SNIPPETS Probationary Period – What Happens If You Do Nothing Read the full article here
Read the full article here
Manufacturers' 'long COVID' leaves Q2 car sales adrift of pre-pandemic levels
Retail price of used cars leapt 11.1% in June, says Auto Trader
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Most drivers would like unaccompanied test drives to become standard Read the full article here
2
GB stickers no longer valid for driving abroad
Used car buyers taking longer to find ‘best price’ Read the full article here
COMPETITION REGULATOR SLAMS ‘INADEQUATE’ UK CHARGING NETWORK ON LOCAL ROADS AND IN RURAL AREAS • The Competition and Markets Authority describes areas of UK charging network as ‘inadequate’ • Facilities in rural areas and on local roads come in for strong criticism • Regulator finds rollout of on-street charging by local authorities is ‘too slow’ The UK competition regulator has launched strong criticism Britain’s ‘inadequate’ charging network on local roads and in rural areas. The Competition and Markets Authority (CMA) said the infrastructure is not good enough and must be improved ahead of the 2030 ban on the sale of new petrol and diesel cars. It expressed concern about the choice and availability of places to plug in
an electric car at motorway service stations. The regulator also found the rollout of on-street charging by local authorities is ‘too slow’, while rural areas ‘risk being left behind’ due to a lack of investment in chargepoints. The CMA cited research indicating that difficulties with charging could stop motorists switching to electric cars. Other key issues raised included anxiety over the reliability of chargepoints, comparing prices and paying for charging. Andrea Coscelli, the organisation’s chief executive, stated that electric vehicles ‘play a critical role’ in reducing carbon emissions, but the challenges of ‘creating an entirely new charging network should not be underestimated’. He said: ‘Some areas of the rollout are going well and the UK’s network is growing – but it’s clear that other parts, like charging at motorway service stations and on-street, have much bigger hurdles to overcome. ‘There needs to be action now to address the postcode lottery in electric vehicle charging as we approach the ban on sales of new petrol and diesel cars by 2030.’
The CMA made a series of recommendations, including that the Government sets out an ‘ambitious national strategy’ for expanding charging infrastructure up to the end of the decade. It also recommended that Whitehall define a clear role for local authorities to manage charging in their area, and establish a public body to monitor the sector. The regulator has also launched a competition law investigation into long-term exclusive arrangements for charging at motorway service areas. The UK has around 25,000 chargepoints, but forecasts suggest more than 10 times this amount will be needed by 2030. The Government plans to ban sales of new petrol and diesel cars from 2030, with hybrids prohibited from 2035. Just 11 per cent of new car registrations last year were for ultra-low emission cars.
Article courtesy of cardealermagazine.co.uk
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WORKSHOPS URGED TO PREPARE AS MOT SURGE LOOMS Car retailers battling vehicle supply shortages must prepare for an MOT-driven September aftersales surge that could help forge the foundations of a strong second half of 2021. Car retailers battling vehicle supply shortages must prepare for an MOT-driven September aftersales surge that could help forge the foundations of a strong second half of 2021. That is the message from sector analysts, suppliers and retailers who are already adapting their businesses to be ready for a new seasonal spike which will see dealerships and garages faced with an estimated 580,000 more MOTs than in a normal September.
The sudden flow of vehicles into workshops follows the Driver and Vehicle Standards Agency’s (DVSA’s) COVID-prompted MOT extensions. And a failure to rise to the challenge could pose a risk to the future of dealerships’ aftersales volumes for years to come, according to eDynamix strategic account director Steve Ure.
that as customers looked for an alternative,” he said. “This time around franchised dealerships should be making it a priority to ensure they have the capacity to cope with what’s on its way and – more than that – an offering to ensure that they reclaim that lost business.”
Read the full article here at AM Online
“Last September some dealerships struggled to get back up to speed in time for the glut of MOT demand and fast-fits benefited from
SEPTEMBER MONTHLY MOT VOLUMES FORECAST
4
POST TOWN
SUM OF FORECAST TO EXPIRE
SUM OF EXPIRED - TYPICAL
SUM OF CHANGE FROM TYPICAL
CHANGE FROM TYPICAL [%]
ABERDEEN
31403
25172
6231
24.75%
DUMFRIES
8994
7500
1494
19.92%
DUNDEE
16234
12642
3592
28.41%
EDINBURGH
48916
39303
9613
24.46%
FALKIRK
18204
13970
4234
30.31%
GLASGOW
63782
50072
13710
27.38%
HEBRIDES
1590
1294
296
22.87%
INVERNESS
17178
13364
3814
28.54%
KILMARNOCK
21398
16781
4617
27.51%
KIRKCALDY
21640
17595
4045
22.99%
KIRKWALL
3039
2556
483
18.90%
LERWICK
1380
1194
186
15.58%
MOTHERWELL
20178
15750
4428
28.11%
PAISLEY
18058
14797
3261
22.04%
PERTH
11703
9001
2702
30.02%
TWEEDDALE
7214
5948
1266
21.28%
LATEST CAR FIGURES
FUEL TYPE
REGISTRATIONS BY REGION
JUNE 2021
YEAR TO DATE
Total Scotland
Petrol
46,788
Diesel
13,103
14,341
Petrol/Electric
8,884
720
Electric
4,400
1,366
=
995
Central 1069
716
90
Petrol/LPG Summary
Grampian
119
Diesel/Electric
Highlands
Strathclyde
2,146 159
TOTAL UK CAR MARKET:
6,562
Ford
6,334
Volkswagen
5,936
Vauxhall
4,865
Audi
4,825
BMW Toyota Mercedes Kia Peugeot Land Rover
4,503 3,877 3,662 3,474 3,287
267
8.94% 8.63%
8.00%
6.62% 6.58%
6.14%
5.28% 4.99%
4.73% 4.48%
TOP SELLING
MARQUES YTD 2021 Figures courtesy of SMMT (Society of Motor Manufacturers and Traders)
Fife
6,903
73,384
909,973
Tayside
Lothian Borders
Dumfries & Galloway
2,785
Vauxhall Corsa
2,056
Ford Fiesta
1,644
Mercedes A Class
1,582
Ford Puma
1,571
Volkswagen Polo
1,473
Kia Sportage
1,376
Mini Mini Toyota CHR Volkswagen Golf Ford Kuga
1188 1177 1111
YEAR TO DATE
TOP 10 CARS 5
OUT NOW! SMTA AUTO INSIGHT ISSUE 5 READ IT HERE
WOULD YOU LIKE YOUR GARAGE TO FEATURE IN SMTA’S MAGAZINE? SMTA produces a quarterly magazine to all our members, if you haven’t got one yet our Territory Account Managers will be visiting your garage soon with a copy for you. If you’d like your garage to feature please contact karen.thompson@smta.co.uk
DVSA MOT ANNUAL TRAINING & ASSESSMENT 2021/2022 Book your Training & Assessment today - call us 0131 331 5510 or email pauline.galloway@smta.co.uk We’re pleased to advise there’s no price increase for 2020/21 SMTA member price
SMTA CONTACTS
MEMBERSHIP ENQUIRIES/ TRADING PARTNERS: Norman Stirling – 07917 095014 Membership Development Manager Marcus Lawrence – 07375 057561 Territory Account Manager, Western Region Stuart Kennedy – 07375 057560 Territory Account Manager, Northern Region
MOT QMS ENQUIRIES David Innes – 07789 264228 Operations Manager, Support Services Colin Meldrum – 07917 042576 Support Services Consultant Gordon Laing – 07799 732124 Support Services Consultant
APPRENTICE TRAINING ENQUIRIES Fraser Miller – 07789 264229 Apprentice Training Manager Kevin Millar – 07593 800386 Kickstart Gateway Project Manager
EMPLOYMENT LAW ENQUIRIES Moira Gaynor – 0141 331 5150 Company Secretary/Finance Manager
SCOTSURE WARRANTY: Lynn Greig – 07597 581335 Scotsure Account Manager, Scotland Claims and Enquiries – 0131 331 5512
EVENTS & MEDIA ENQUIRIES: Karen Thompson – 07922 079889 Events & Media Manager
ADVERTISING/SPONSORSHIP ENQUIRIES: Wendy Hennessy – 07974 380140
- £52.00 (plus vat) Non-member price
- £60.00 (plus vat) Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS This bulletin is kindly supported by
SMTA Ltd Tel: 0131 331 5510
www.smta.co.uk
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Disclaimer: Whilst we endeavour to ensure the information in this bulletin is up to date and correct, we make no representations of any kind, express or implied, about the completeness, accuracy, reliability and suitability. Any reliance you place on such information is therefore strictly at your own risk.