BULLETIN Your monthly news round-up of the Scottish Motor Industry
MAY 2021
BLOCK EXEMPTION -WHAT NEXT? BELOW WE HIGHLIGHT TWO MAJOR EVENTS WHICH WE FEEL WILL BE OF INTEREST TO ALL OUR MEMBERS REGARDLESS IF YOU ARE FRANCHISED OR NOT. " AUSTRIAN SUPREME COURT RULES THAT PEUGEOT AUSTRIA HAS ABUSED MARKET POWER AGAINST INDEPENDENT DEALERS"
The approved insurance broker to the Scottish Motor Trade Association
" IMPORTANT COMMUNICATION FROM THE STELLANTIS GROUP ABOUT FUTURE DEALER AND AUTHORISED REPAIRERS CONTRACTS"
BLOCK EXEMPTION – WHAT NEXT? Austrian Supreme Court rules that Peugeot Austria has abused market power against independent dealers. On March 22, 2021 the Austrian Supreme Cartel Court upheld the Cartel Court‘s earlier decision of May 12, 2020 in a legal dispute between Austrian Peugeot dealer Büchl and Peugeot Austria (PSA), that the general importer for Peugeot vehicles in Austria abused its market power vis-à-vis Büchl in violation of Austrian and European competition law. Büchl had turned to the cartel court because, like many other Peugeot dealers in Austria and Europe, it claimed to suffer from PSA‘s suffocating system of requirements and non-transparent reimbursement conditions. The Supreme Court has banned Peugeot from tying the dealer‘s premium payments to customer satisfaction surveys; reducing the dealer‘s margin if they do not reach sales
targets inflated by PSA and competing with dealers through subsidized vehicle prices on the end customer market at PSA’s own, vertically integrated sales outlets.
anew as to this point, all the other points are now legally binding and must be implemented by PSA within three months’ time.
Also, an elaborate control system for guarantee and warranty work and hourly rates that did not cover the dealers costs is prohibited, as those measures make guarantee and warranty work unprofitable for dealers. Finally, PSA may no longer pass on the costs of its mystery shopping and audit system for the new car and workshop business to dealers.
The Supreme Court stresses that its decision applies to all contractual relationships in which similar economic dependencies exist and awaits considerable changes in the remuneration system of PSA.
The Supreme Court recognizes that PSA economically forces dealers to take part in promotions and thereby restricting dealers’ freedom of setting their own prices. While the Cartel Court of first instance is requested to further complete its findings and decide
The Supreme Court also clearly points to the parallel applicability of European competition law and elaborates on the finding of a dominant position on the part of the importer as well as on the treatment of abusive clauses in contractual relationships under Art 102 TFEU.
Important communication from the Stellantis group about future dealer and authorised repairers contracts The Stellantis Group has announced it will terminate all sales and service distribution contracts by 31 May next. The Group is reorganising its distribution and has given two years’ notice to all its sales and service partners. It plans to build a multi-brand distribution model which it will launch in June 2023. Only in some cases
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dealers have been approached. There is no letter of intent. Representatives of dealer organisations will be approached and will be actively involved in the development of future sales plans and strategies. In recent years, the manufacturer has already started to merge the Peugeot and Citroën networks with that of Opel. The new
distribution network will be selected on the basis of key objective drivers and criteria. Stellantis, which operates brands including Vauxhall, Peugeot, Citroen, Fiat and Jeep, is making the move ahead of the new Block Exemption regulations which are due to come in on 1st June 2022 for the general rules and 1st June 2023 for the motor rules.
VAN GROWTH DRIVES UK COMMERCIAL VEHICLE PARC TO RECORD HIGHS Commercial vehicles now account for 13.1% of all vehicles on the road in Britain – the highest recorded this century, according to new figures released by the Society of Motor Manufacturers and Traders (SMMT). y Some 5.3 million commercial vehicles now in operation – 13.1% of all vehicles on the road, the highest proportion ever recorded. y Van ownership continues to rise, to 4.6 million, but just 0.3% run on electric, and more than half a million using Euro 3 or older engines. y Bus and coaches in use slump -10.7% to 73,608 – the lowest since records began in 1994. y Truck numbers drop -3.1% to 2015 levels, with average unit age pre-dating Euro VI. SMMT’s annual automotive census has revealed that, as of the end of 2020, there were 4,604,861 vans, 589,445 trucks, and 73,608 buses and coaches on the road, out of a total of 40,350,714 vehicles in use. Truck numbers declined by -3.1% to return to levels last recorded in 2015, while bus and coach units are at their lowest since records began, a consequence of the significant drop in passenger numbers caused by the pandemic. More positively, vans recorded their 11th year of consecutive growth, increasing by 1.7% year-on-year as an upsurge in home delivery and construction stimulated demand. Many of these vehicles have also been instrumental in supporting the nation during the pandemic, providing support to the NHS, and delivering food and goods across Britain. The average age of commercial vehicles has also increased, with significant implications for emissions targets and air quality goals. The average van is now just under eight years old, with a considerable number of older vehicles still in operation – including around 725,000 that were first registered in 2005 or earlier. Meanwhile, at 7.4 years old, the average truck would pre-date the introduction of Euro VI, meaning they would be fined for entering the London Ultra Low Emission Zone,the Bath Clean Air Zone and, from next month, would also incur penalties in Birmingham. Buses, meanwhile, are now, on average, more than
a decade old.Manufacturers have invested massively to provide a wide range of vehicles with a variety of fuel options – meaning operators are spoiled for choice when renewing their fleet. With the end of sale of new petrol and diesel vans scheduled for 2030, plug-in van uptake continues to grow but remains far lower than that experienced in the car market. There are now 14,021 battery electric (BEV) and plug-in hybrid (PHEV) vans in service, accounting for 0.3% of all operational vans – four times lower than the proportion of BEV and PHEV cars. Based on the SMMT data, Slough is Britain’s zero-emission van capital, having both the highest percentage of electrified van registrations (2.2%) and the highest total number (2,087).
Mike Hawes, SMMT Chief Executive, said: " The past year has highlighted how much Britain relies on its commercial vehicle parc. With less than nine years to go until the end of sale of new petrol and diesel vans, much needs to be done to avoid a long fossil fuel hangover from operators resisting the switch. Fleet renewal must be a high priority for the commercial vehicle sector and the government’s Bus Back Better strategy must be implemented immediately to reverse the decline in bus operations."
Article courtesy of www.smmt.co.uk
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JULY MONTHLY MOT VOLUMES FORECAST POST TOWN
SUM OF FORECAST TO EXPIRE
SUM OF EXPIRED - TYPICAL
SUM OF CHANGE FROM TYPICAL
CHANGE FROM TYPICAL [%]
ABERDEEN
17997
19040
-1043
-5.48%
DUMFRIES
5526
5913
-387
-6.54%
DUNDEE
9095
9724
-629
-6.47%
EDINBURGH
27979
29849
-1870
-6.26%
FALKIRK
10147
10211
-64
-0.63%
GLASGOW
33106
36796
-3690
-10.03%
HEBRIDES
865
1209
-344
-28.45%
INVERNESS
9730
10427
-697
-6.68%
KILMARNOCK
12199
13006
-807
-6.20%
KIRKCALDY
12301
13988
-1687
-12.06%
KIRKWALL
1799
2301
-502
-21.82%
LERWICK
871
979
-108
-11.03%
MOTHERWELL
10638
11686
-1048
-8.97%
PAISLEY
9695
11157
-1462
-13.10%
PERTH
7139
7142
-3
-0.04%
TWEEDDALE
4561
4817
-256
-5.31%
HYDROGEN FUEL E-CARGO BIKE TO BE DEVELOPED BY EAV Electric Assisted Vehicles (EAV) is set to develop a hydrogen fuel cell powered e-cargo bike as part of a new project with the City of Aberdeen. Supported by investment from the European Union and the Scottish Government and managed by the German Aerospace Center (DLR), the project brings together partners including DPD Group, H2Range, Unicorn Energy, Energy Expo and
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Brussels University. The Interreg NWE’s Fuel Cell Cargo Pedelecs Project – or FCCP - aims to validate the use of hydrogen fuel cell last mile delivery vehicles in seven cities across Europe over 12 months from Q3 2021. Aberdeen, Groningen, The Hague and
Stuttgart are partner cities for the project.
Article courtesy of: www.smarttransport.org.uk
LATEST CAR FIGURES
FUEL TYPE
REGISTRATIONS BY REGION
APRIL 2021
YEAR TO DATE Petrol
28,808
Diesel
8,769
12,151 537
5,392
Petrol/Electric
Diesel/Electric
40
Petrol/LPG
92
=
1,191
662
45,955
4,269
Ford
3,638 3,567
Vauxhall
3,042
BMW
2,778
Toyota
2,672
Mercedes
2,615
Peugeot Land Rover Kia
2,534 2,406 2,202
Lothian
140 204
4,500
Volkswagen
Fife
1,635
2,250
9.29%
7.92% 7.76%
6.62%
6.05% 5.81%
5.69% 5.51%
5.24%
4.79%
TOP SELLING
MARQUES YTD 2021
Tayside
6,062
Strathclyde
567,108 Audi
845
875
Central
TOTAL UK CAR MARKET:
0
Highlands
Grampian
2,854
Electric
Summary
Total Scotland
Borders
Dumfries & Galloway
0
950
1,900
1,795
Vauxhall Corsa
1,379
Ford Fiesta
1,103
Mercedes A Class
943
Ford Puma
889
Mini Mini Kia Sportage Land Rover Range Rover Evoque
Peugeot 2008
849 830 780
Volkswagen Tiguan
765
Ford Focus
760
YEAR TO DATE
TOP 10 CARS
Figures courtesy of SMMT (Society of Motor Manufacturers and Traders)
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HOUSEHOLDS BUYING ELECTRIC CARS Around a quarter of UK households intend to purchase a pure-electric or plug-in hybrid in the next five years, new research has found. However, energy regulator Ofgem also found that more than a third of Britain’s roughly 27.8m households said they were unlikely to get an electric vehicle during that period due to concerns over high costs. The survey found feelings that prices are too high, batteries do not offer enough range between charges and the lack of on-street charging points near homes all played a significant part in the concerns on switching. The report comes ahead of a new campaign by the regulator to coincide with the COP26 being held in Glasgow where global leaders will discuss green initiatives and greenhouse gas emission reduction targets. The Climate Change Committee anticipates that about 18m battery and plug-in hybrid electric vehicles will be
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on the road by the time the ban on the sale of new internal combustion vehicles |is introduced in 2030.
But the research found that only 60 per cent identified that domestic heating, like gas boilers, play a major role.
But a report this week by the Public Accounts Committee said the 2030 target would be missed without urgent action to improve infrastructure. Only 13 electric car models on sale in the UK currently cost less than £30,000, the committee found.
The International Energy Agency said gas boilers should be banned from 2025 to achieve net-zero emissions by the middle of the century.
Ofgem said changes were needed because electric vehicle owners are more open to embracing changes in how they use their energy, including signing up for ‘time of use’ tariffs to charge vehicles during off-peak periods. The majority of consumers (threequarters) recognised that electricity generation and transport, such as fossil fuel power stations and exhaust emissions, play a big part in contributing to climate change, the report added.
Jonathan Brearley, Ofgem’s chief executive, said: "As more consumers make the switch to electric vehicles in the next five years, Ofgem will be announcing millions of pounds of investment to create a more flexible energy system to support the electrification of vehicles, renewable generation and low carbon forms of heat."
Article courtesy of: cardealermagazine.co.uk
USED CAR PRICES GROW FURTHER FOLLOWING REOPENING OF SHOWROOMS Used car price growth has accelerated significantly, according to Auto Trader, following the reopening of showrooms last month. Based on the circa 440,000 used vehicles currently advertised on its marketplace, the average price of a used car increased by 6.8% year-on-year on a like-for-like basis last week. It not only marks 53 weeks of consecutive price growth, but a sizable increase on the 5.7% YoY recorded during the week of April 12, following which growth levels have increased consistently week-on-week. Increased consumer demand is highlighted by the average number of daily cross platform visits on Auto Trader. Last week the figure was 2.4 million, an increase of 41% on the same period in 2019. As a result of this increased activity on site, the average number of leads being sent to retailers surged 99% on the same period in 2019.
Auto Trader’s director of data and insight, Richard Walker, said: “The levels of demand that we’ve been tracking this year have been incredibly strong, but the reopening of physical forecourts last month provided a substantial boost to demand and to used car prices. Such is the strength of the market, we’ve noticed that not only are retailers making significantly smaller price reductions to their stock than normal, but we’ve seen a dramatic acceleration in the number of those actually increasing their prices. And whilst we’re hearing nervousness around the current trade price inflation, I hope our data reassures retailers of both the consumer demand and the profitable margins available when applying a retail back approach to their pricing and sourcing strategy.”
The price growth has also been affected by ongoing supply challenges in the market. According to the Auto Trader Market Insight tool, supply was down by 10.3% last week when compared to 2019. An average of 2,290 retailers made daily price adjustments, which is 400 fewer than the same period in 2019. Also, an average of 12,604 vehicles were repriced every day last week - which is 27% fewer compared to 2019. The data also suggests retailers were making significantly smaller reductions to sticker prices, averaging at just -£24, which is 93% less than the average adjustment made in 2019 (-£321).
Article courtesy of: www.am-online.com
TRADE SNIPPETS Used car retailers ‘can’t stock fast enough’ as consumer demand surges Read the full AM Online article here: am-online.com
Salespeople’s positivity most valued by customers Read the full Motortrader article here: motortrader.com
Automotive industry welcomes ‘much-needed’ investment in charging network Read the full CarDealer article here: cardealermagazine.co.uk
Car buyers prioritise lower emissions when choosing their next car in 2021, survey finds Read the full CarDealer article here: cardealermagazine.co.uk
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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. 8