BULLETIN Your monthly news round-up of the Scottish Motor Industry
JUNE 2021
LOW EMISSION ZONE FOR ABERDEEN Aberdeen City Council have agreed on an area for a low emission zone in the city centre.
The area outlined above will see the most polluting vehicles banned from the zone, and will operate 24/7. But there will be a grace period of two years. Aberdeen is one of four Scottish cities planning to introduce the initiative by 2024. It's estimated that by then 86% of cars, 70% of light good vehicles and 93% of heavy goods vehicles and all taxis in the city will be compliant. Aberdeen City Council’s ‘Proposal to make a LEZ Scheme’ lists all of the streets within the proposed LEZ area and should provide answers to many of the questions you might have about the LEZ and what it means for you. This also includes info on:
• The proposed grace period, during which time the LEZ will not be enforced • The scope of the LEZ including hours of operation and the vehicles which will be affected • Emissions standards for entry to the LEZ • Exemptions • Penalty Charges Impact on our members One of our members said regarding this proposed low emission zone said “This is going to have a devastating impact on our business. A large proportion of our business is carried out on vehicles that do not meet the LEZ criteria.”
The approved insurance broker to the Scottish Motor Trade Association
As your Trade Association, please let us know if your business will be affected and we will gather the replies to put forward to the Scottish Government and Aberdeen City Council asking if it is possible for exemptions to local businesses to be made. Please click the link below to provide feedback to Aberdeen City Council. Consultation Consultation on the preferred option will take place between 28 June and 22 August 2021. From 28 June, visit the proposed Low Emission Zone consultation to give them your feedback. More detailed reports on the option appraisal, previous
consultation, traffic modelling and air quality modelling can also be viewed on the consultation page. Alternatively, you can email: transportstrategy@ aberdeencity.gov.uk (please copy in karen.thompson@ smta.co.uk who will provide feedback on your behalf as well) to give them your views. Or write to them at: Transport Strategy and Programmes, Aberdeen City Council, Ground Floor North, Mariscal College, Broad Street, Aberdeen AB10 1AB.
Click here to read the full LEZ Proposal
NEW CAR SUPPLY CHAIN ISSUES WILL NOT BE RESOLVED UNTIL 2022 Car retailers will be locked into a strategy of “retaining profit margins at all cost” as vehicle supply issues continue into 2022, according to Cox Automotive. Philip Nothard, the automotive services supplier’s insight and strategy director, has said limited supplies of key components – including semiconductors, aluminium, and rubber – will continue until the end of this year, causing new vehicle deliveries to be impacted in 2022. And as new stock limitations continue, so will the lofty wholesale used car prices resulting from buoyant consumer demand and their shift to pre-owned car purchases. “We don't expect the full financial repercussions of the tier one supply chain issues to hit until the fourth quarter of 2021, and they certainly won't be fully resolved until 2022,” said Nothard. He added: “New car registrations continue to face challenges because
of supply chain constraints. Although May ended with a 674.1% (156,737) increase compared to 2020 (20,247), this is a misleading picture due to the severity of the first lockdown last year. The more telling comparison is with May 2000 – 2019 averages (176,493), which shows the current market as being 11.2% down.” Nothard highlighted Cox Automotive data which demonstrated the impact of increased demand for used car stock in his mid-month review of the sector. He said that first-time conversions on its remarketing platforms were above 80% and average wholesale sold prices remained at pre-pandemic levels (currently £5,801). Nothard said retailers were adjusting stock profiles and focusing on
retaining profit margins as part of their efforts to mitigate against their stock sourcing challenges. He said: “The lack of quality stock is causing many dealers to readjust their focus towards retaining profit margins at all cost. “For as long as demand for quality retail vehicles still exists, dealers will continue to purchase vehicles outside of their usual stock profile to ensure their forecourts remain full. This has caused both average wholesale age (102.3 months, +4.9% MoM) and mileage (69,011, +5% MoM) to increase even further.”
Article courtesy of am-online.com
G7 LEADERS TO SPEED UP TRANSITION TO EVS BUT NO FIRM DATE The G7 group of nations have said they will “Accelerate the transition away from new sales of diesel and petrol cars to promote the uptake of zero emission vehicles”. The UK, which recently hosted the G7’s annual summit in Carbis Bay, Cornwall, has already brought forward its ban on the sale of conventional internal combustion engine (ICE) cars and vans from 2040 to 2030, with hybrids set to be phased out by 2035. The other G7 leaders – Germany, Italy, Canada, France, Japan and the United States – could now follow suit, although no phase out dates were announced at the summit. The Carbis Bay G7 Summit
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Communique also recognised the need to “scale up” zero emission vehicle technologies for buses, trains, shipping and aviation, “accelerate” the roll out of “necessary infrastructure”, and “enhance” the “offer of more sustainable transport modes, including public transport, shared mobility, cycling and walking”. However, Prime Minister Boris Johnson was criticised for taking a private plane to the summit in Cornwall instead of travelling by train.
In response, he said: “If you attack my arrival by plane, I respectfully point out that the UK is actually in the lead in developing sustainable aviation fuel. One of the points in the 10-point plan of our green industrial revolution is to get to jet zero as well as net zero".
Article courtesy of smarttransport.org.uk
STRONGEST EVER MAY ON RECORD FOR USED CAR SALES – AND 1.7M ‘LOST’ TRANSACTIONS COULD FUEL DEMAND FOR REST OF YEAR • May 2021 traded around 14 per cent above same month in 2019 • Strong demand already being felt in June • 1.7m ‘lost’ transactions in 2020. May 2021 was the strongest May on record for used car performance, new figures reveal. Auto Trader said May 2021 was trading around 14 per cent above May 2019 volumes. The month’s strong performance is already being felt in June, the firm said, with week one already up over 15 per cent on the same period in 2019. Auto Trader’s chief operating officer, Catherine Faiers, told Car Dealer Live the company has seen record demand which is delivering high numbers of leads to dealers. Faiers explained how there were 1.7m ‘lost’ transactions in 2020 and this, combined with already high levels of demand so far in 2021, could sustain good used car transaction levels for the rest of the year. The 1.7m figure was calculated based on the average ownership cycle of a car being extended from 3.5 years to 4.2 as a result of the pandemic. Auto Trader said that if the UK car parc of 35.1m cars had turned at the
typical frequency observed over the last 10 years, there would have been circa 10m new and used transactions in 2020, instead of the 8.3m that took place.
than they were a year ago, while 54 per cent felt about the same. The research also revealed the growing importance of car ownership as a result of Covid-19.
The company also said the market is current running at a record 9.7 per cent year-onyear increase, and the average speed of sale has been slashed to just 22 days. Along with the 1.7m backlog of sales, Auto Trader believes growing economic confidence and positive sentiment will be another important influence on the levels of demand this year.
Nearly one in three (29 per cent) of the circa 1,000 consumers surveyed believed that owning a car is more important to them now than it was before the pandemic – the highest rate since January.
An onsite survey in May revealed that consumers’ confidence in being able to afford their next car was 8.76/10. That’s at its highest level since Auto Trader began tracking it in January 2020, surpassing the previous peak recorded in February (8.75/10), and even ahead of confidence levels recorded pre-pandemic (8.11/10 in January 2020). The company said 41 per cent of those surveyed said they were more confident
Auto Trader said that while this positive sentiment shift is apparent in all age groups, it is particularly so in younger age groups. Faiers explained that there has been a significant increase in the number of 18-24-year-olds visiting the marketplace, with over half a million more monthly visits from users in this age group in the second half of last year.
Article courtesy of cardealermagazine.co.uk
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AUGUST MONTHLY MOT VOLUMES FORECAST POST TOWN
SUM OF FORECAST TO EXPIRE
SUM OF EXPIRED - TYPICAL
SUM OF CHANGE FROM TYPICAL
CHANGE FROM TYPICAL [%]
ABERDEEN
20251
17352
2899
16.71%
DUMFRIES
6065
5547
518
9.34%
DUNDEE
10467
9087
1380
15.19%
EDINBURGH
32356
28276
4080
14.43%
FALKIRK
11273
9429
1844
19.56%
GLASGOW
40707
34908
5799
16.61%
HEBRIDES
1083
1042
41
3.93%
INVERNESS
11277
9565
1712
17.90%
KILMARNOCK
14258
12255
2003
16.34%
KIRKCALDY
14641
12791
1850
14.46%
KIRKWALL
2111
2021
90
4.45%
LERWICK
1015
931
84
9.02%
MOTHERWELL
12494
10958
1536
14.02%
PAISLEY
11650
10287
1363
13.25%
PERTH
7595
6506
1089
16.74%
TWEEDDALE
4965
4351
614
14.11%
GARAGE SURVEY REVEALS EFFECTS OF SIX-MONTH MOT EXEMPTION Vast majority saw business decrease, almost half used furlough but half were left confused over government’s super deduction capital allowance. A survey of independent garages has revealed the effects of last year’s six-month MOT exemption. Some seventy-four per cent of garages saw business decrease in April 2021, according to the survey by Impression Communications. It also revealed that 48 per cent of garages had accessed the job retention scheme (furlough) in April, and 51 per cent of respondents were unaware of how the
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government’s super deduction capital allowance could work for their business. Looking ahead, 51 per cent of garages were “optimistic” about the future and 60 per cent of garages expected staff levels within their garage to stay the same over the next six months. On the subject of apprentices and the skills shortage, only 37 per cent of garages currently employed apprentices.
Finally, the survey asked about electric vehicles and attitudes towards the vehicle type. Twenty-five per cent of garages were currently trained on how to service and repair electric vehicles and a further 53 per cent of garages were interested in embracing training on EVs.
Article courtesy of garagewire.co.uk
LATEST CAR FIGURES
FUEL TYPE
REGISTRATIONS BY REGION
MAY 2021
YEAR TO DATE Petrol
37,451
Diesel
10,974
13,088 760
6,935
Petrol/Electric
1,315
623
101
Petrol/LPG
=
1,583
59,043
163
723,845 5,500
5,396
Ford
4,928
Volkswagen
4,663
Vauxhall
3,893
BMW
3,786
Audi
3,345
Toyota Mercedes Peugeot Kia Land Rover
246
2,750
3,273 2,963 2,889 2,852
9.14% 8.35%
7.90%
6.59% 6.41%
5.67%
5.54% 5.02%
4.89% 4.83%
TOP SELLING
MARQUES YTD 2021 Figures courtesy of SMMT (Society of Motor Manufacturers and Traders)
Fife
6,449
Strathclyde
TOTAL UK CAR MARKET:
0
1,024 Tayside
925
Central
79
Diesel/Electric
Highlands
Grampian
3,503
Electric
Summary
Total Scotland
Lothian Borders
Dumfries & Galloway
0
1,250
2,500
2,250
Vauxhall Corsa
1,705
Ford Fiesta
1,397
Mercedes A Class
1,246
Ford Puma
1,205
Volkswagen Polo
1,165
Kia Sportage
1,128
Mini Mini LR Range Rover Evoque Ford Kuga BMW 3 Series
978 954
944
YEAR TO DATE
TOP 10 CARS 5
SMTA MARKETPLACE – SELL YOUR ITEMS IN OUR MAGAZINE Our free ad service where you can provide us with a couple of photos of the item you wish to sell with the relevant details of the item including price and contact number and we'll print it in our magazine for free. This could be anything from a MOT ramp, mechanical lift, tyre changer - anything garage related we can list for you. Please email a photo and description of your item or to find out more info about this FREE member service please email karen.thompson@smta.co.uk
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Deadline for you to send in your item(s) is 23rd July for inclusion in our August edition and please ensure photos are in a high-resolution format suitable for printing. As space is limited ads will be allocated on a first come first served basis.
100% C Guara OVID ntee All spo
SMTA ANNUAL DINNER & AWARDS 2021
ns for thes orship and tick ee et guarant vents have a 10s purchased ee. Sho uld e 0% COVID have circums to be cancelle ither event ta d we will onces outside o, due to ur contr f fer a fu o ll option t o carry refund or the l, forward a resche to duled d ate.
Events are back! The Scottish motoring dinner of the year is back and will be held this year in the stunning refurbished Ballroom at the Glasgow Hilton on Thursday 28th October and tables / individual tickets are available to book now. Our guest speaker is none other than ‘Eddie the Eagle Edwards’ we guarantee you that he will entertain you with his Olympic ski jump story!
We are also delighted to confirm we will once again be holding our ‘Community Activity Recognition’ Star and ‘Skills Star’ Awards at the event. Our members are not just garages businesses but also play a vital part to communities and we think your efforts should be acknowledged! Recognising garages that combine business success with involvement in their community and employees who support their community based projects and charities. Previous winners have supported local groups, raised money via coffee mornings, donated a courtesy car to a
hospice and another spent years creating a local football team for children with learning difficulties. Our Skills Stars recognise up and coming individuals in the motor trade in Scotland. It has been a difficult time for lots of people and we would love to hear from our members who helped out their community or fund raised for charity. Our winners will be invited along to our Annual Dinner as our guests to receive their award. Contact Karen Thompson at SMTA for bookings and nomination forms. www.karen.thompson@smta.co.uk
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INDUSTRY BODIES CALL ON AER REVIEW The BVRLA and the Association of Fleet Professionals have joined forces to call upon government to ensure the Advisory Electricity Rate (AER) for electric vehicles is fit-for-purpose. They fear the current 4 pence per mile rate, which is unchanged since 2018, is no longer reflective of real-world conditions. The industry bodies have asked the HMRC to review the current AER level, establish an ongoing review process for the AER, create a separate AER for vans, and begin work on a hydrogen AFR. Paul Hollick, chair at the AFP, said: “The HMRC’s current rate was set at a time when business use of EVs was in its infancy and is quite a blunt instrument, using the same rate whether for a small city
runabout or a large luxury 4×4. Clearly, the fuel costs of these vehicles are not the same. The Advisory Fuel Rates (AFRs) used for petrol, diesel and hybrid vehicles recognise that there are different engine sizes that have different fuelling costs. A similar approach needs to be adopted for their electric equivalents.” BVRLA chief executive, Gerry Keaney said: “The current AER rate and the process for determining it is not fit-for-purpose. It has the potential to compromise the uptake of electric vehicles, as employees will not,
in many cases, be adequately reimbursed for their business travel costs. A fifth of BVRLA members’ fleet already has some form of electrification and this figure is only set to increase as more people look to upgrade to cleaner vehicles. The tax system must catch up and reform of the AER process is needed to ensure parity with the fairer process applied to AFRs.”
Article courtesy of www.bodyshopmag.com
VOLVO INVESTIGATES FOSSIL FUEL-FREE STEEL FOR FUTURE CAR BODIES Volvo and the Swedish steel manufacturer SSAB have signed a new partnership to develop fossil fuel-free, high quality steel for use in Volvo’s future car bodies. The two companies hope the new technology will lower CO2 emissions by removing the industry’s reliance on the fossil fuels normally used in steel production.
“As we continuously reduce our total carbon footprint, we know that steel is a major area for further progress,” says Volvo’s CEO, Håkan Samuelsson.
Today, the steel industry accounts for around seven percent of global carbon emissions, as the main method of production involves firing iron ore in coking coal-powered blast furnaces.
“The collaboration with SSAB on fossilfree steel development could give significant emission reductions in our supply chain.”
SSAB’s new method will replace the blast furnace and coking coal with renewable electricity and an electric arc furnace. An added benefit of the system is that it can more efficiently use recycled steel scrap as a raw material, which further reduces CO2 emissions. By 2026, SSAB aims to put its new fossil fuel-free steel on the market at a commercial scale – and Volvo will be the company’s first customer to use the new steel in its production cars.
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Volvo says that around 35 percent of its own CO2 emissions are related to steel and iron production in its combustion-engined vehicles. This figure falls to 20 percent in its EVs. However, Volvo wants more, as it doesn’t think its current efforts fall in line with its ambition of becoming a pure-electric car manufacturer by 2030. As part of the shift, Volvo aims to cut carbon emissions not only from the tailpipes of its vehicles, but also from every aspect of its business; from manufacturing, to sales and
aftercare. The company has already taken steps towards this carbon neutral future. So, Volvo’s new EVs will only be available to buy online, removing the need for resourcehungry showrooms. Volvo’s car manufacturing plant in Torslanda, Sweden has also become the firm’s second facility to reach carbon neutral status, thanks to more efficient manufacturing techniques and the use of renewable heating sources, such as biogas. It follows on from the company’s Skövde engine plant, which also achieved carbon neutral status in 2018.
Article courtesy of www. autoexpress.co.uk
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
SMTA is proud to support:
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.
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FEMALES IN FOCUS EVENT 24TH SEPTEMBER 2021 NORTON HOUSE HOTEL, EDINBURGH ‘Females in Focus’ event will be hosted By Alison Walker. Alison has more than 20 years of experience working with the BBC in television and radio and she will be facilitating discussions with our panel of guest speakers which includes the winner of the inaugural Nan Lindsay Award: Mary-Anne McNaughton of Central Car Auctions. £350 +VAT
Table of 8 Individual Tickets (this includes a three-course lunch and a glass of wine on arrival!)
£50 +VAT
Please note: this event is open to SMTA members and non-members). Also, feel free to share with your colleagues both female & male, as they may wish to attend.
TO BOOK OR FIND OUT MORE Contact Karen Thompson on Tel: 07922 079889 E: karen.thompson@smta.co.uk
SPONSORSHIP OPPORTUNITIES For all sponsorship and programme advertising please contact Wendy Hennessy on Tel: 07974 380140 E: wendy.hennessy@smta.co.uk