BULLETIN Your monthly news round-up of the Scottish Motor Industry
JANUARY 2022
GDPR APPLICATION IN THE CONTEXT OF CAR CONNECTIVITY This report “GDPR application in the context of car connectivity” compiles the findings of an expert study commissioned by the Fédération Internationale de l'Automobile (“FIA”) and conducted by Ernst & Young Abogados, S.L.P. from July 2021 to November 2021. What is the objective of the Study? The objective of this Study is (i) to provide an extensive analysis of the EU data protection and privacy legal framework applicable to the processing of data in the context of car connectivity; (ii) to assess whether this framework is accomplishing its purposes from a consumer point of view; (iii) to identify challenges and opportunities; and (iv) to provide policy recommendations, where necessary. Why is data relevant to the automotive sector? Connected vehicles collect information from the vehicle and its surroundings and communicate with the outside world through a wireless connection to the internet. Connected vehicles rely heavily on data. Through different input sources they can produce significant amounts of data of different nature. The number of connected vehicles is expected to increase exponentially, positioning the automotive sector as one of the largest data generators. This is fostering the development of innovative data-enabled solutions and business models which are already disrupting the
traditional interaction between car users and service providers. However, despite the undeniable benefits and opportunities brought about by connected vehicles, they raise significant privacy risks and concerns. Analysis of the information that consumers receive at point of sales (Mystery Shopping). For the purpose of complementing the research on the degree of consumer awareness with regard to vehicle data, four ‘Mystery shopping’ (“MS”) exercises were conducted at different vehicles’ point of sales. The ultimate goal of the MS exercises was to evaluate the level and transparency of information provided to consumers at the vehicle points of sales. Overall, the MS exercises revealed a significant lack of information about vehicle data collection and processing at the point of sales visited. While some information about vehicle connectivity is provided at the point of sale, this information exclusively concerns the connectivity functionalities available and the related user’s experience. However, it does not cover the implications of such functionalities, i.e., the underlying vehicle
The approved insurance broker to the Scottish Motor Trade Association
data processing. In the best-case scenario, limited information about vehicle data processing aspects was provided but only after inquiring by the person conducting the exercises (“Mystery Shopper”). Even in these cases, the sales representatives were reluctant, unwilling or unprepared to provide general information about vehicle data processing or elaborate on any of the questions raised.
Expert study on : ‘GDPR applica in the context tion of car connec tivity’
Final Report November 2021
Read the full GDPR study
'OVERWHELMING MAJORITY' OF BUYERS WILLING TO VISIT CAR SHOWROOMS More than three-quarters (76%) of in-market buyers are planning to visit a car showroom in the next three months, despite the ongoing Coronavirus risks. Of those heading to a retailer, 78% said the new Omicron variant has not impacted their decision to go, with the rest waiting for case numbers to decline before visiting. The majority (74%) of those who won’t visit a showroom in the next three months, said they had no plans to visit and the new variant has not impacted their decision. A quarter (24%) said they had decided to postpone a showroom visit due to Omnicron. The research of 1,403 in-market buyers was carried out by What Car?. Steve Huntingford, editor of What Car?, said: “Despite a new Covid variant, trust in dealerships remains extremely high from buyers, with the majority intending to visit a showroom between now and March.
“This shows the work the sector has done throughout the pandemic has paid off, with buyers confident that dealerships are safe places to visit. It is important showrooms continue to apply Covid measures, as most buyers still want to see social distancing and hygiene measures in place when visiting.” Buyers remain “highly confident” showrooms can continue to be operated in a safe way even with the new, more transmissible COVID variant. Of all buyers surveyed by What Car?, 94% said they trust showrooms to be run in a COVID-safe manner. This is nearly identical to last spring when What Car? asked the same question, with 95% believing showrooms were safe places to visit. The research also found 72% of buyers would avoid visiting a showroom if it did
not have adequate COVID measures in place, including social distancing guidelines, hygiene stations, and staff and customers required to wear a mask. A quarter (25%) of UK car dealers have started 2022 with staff absence of over 15% as the Omicron variant continued to grow cases, an AM poll has shown. Run just days after the UK Government changed its testing guidelines in a bid to prevent staff shortages crippling the economy, the survey showed that 44% of car retail businesses had been ‘moderately’ impacted by COVID-related absences of up to 15%.
Article courtesy of AM Online
CAR AVAILABILITY BLAMED FOR RECORD AUTOMOTIVE CUSTOMER COMPLAINTS IN 2021 Car brands have managed to improve their customer satisfaction ratings despite a decline in vehicle availability triggering record customer complaints. The UK Customer Satisfaction Index (UKCSI) found that, despite average customer satisfaction in the automotive sector rising to 80.7 points – its biggest ever year on year increase – 14.1% of customers have experienced problems with a brand’s service in the past six months. It attributed rising complaints
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to vehicle supply shortages arising as a result of COVID-19 and the limited availability of semiconductor microchips and other components. Skoda (ranked 6th) and Nissan (joint 9th) climbed into the top 10 performing organisations in a top 50 ranking of brands offering the best customer satisfaction across 13 market sectors, however Suzuki (joint 17th), BMW (20th) Dacia (32nd), Toyota (47) and Hyundai (joint 49th) also delivered top 50 rankings after rising up this year’s table.
Article courtesy of AM Online
CECRA LOBBYING UPDATE ACCESS TO DATA & CONNECTIVITY We are urging the Commission to publish a legislative proposal on access to in-vehicle data. During the Commission’s workshop meeting on access to in-vehicle data on 27 October, CECRA reiterated its request. CECRA, together with the 9 other EU associations present at the meeting firmly opposed and requested to have in addition to the Data Act, a specific sectoral approach. Commissioner Breton invited us to analyse ACEA’s new proposal and to come back to him with our feedback. He promised to fix a follow-up meeting. In the meantime, the associations present at the meeting with Mr Breton analysed ACEA’s new position paper and concluded some elements had been updated however the main idea of the ‘extended vehicleExV’ principle was still actual and thus unacceptable for them – Short analysis. In reply, all these associations have identified several Cabinets and DGs to approach and have kicked-off an intensive lobbying.
DIGITAL MARKETS ACT Digital Markets Act: Proposal for a Regulation Proposal for a Regulation of the European Parliament and of the Council on contestable and fair markets in the digital sector.
The Digital Markets Act (DMA) is a legislative proposal of the European Commission that intends to ensure a higher degree of competition in the European Digital Markets, by preventing large companies from abusing their market power and by allowing new players to enter the market. The DMA file has been voted during the Plenary meeting of the European Parliament of December 2021. The approved text is the Parliament’s mandate for negotiations with EU governments, starting under the French presidency of the Council in the first semester of 2022. The Digital Services Act (DSA) – a parallel proposal to regulate online platforms, dealing with, among other issues, illegal content and algorithms - will be voted on by the committee at a future meeting.
EU REGULATORY FRAMEWORK Block Exemption Regulations specific to the Automotive Industry While the Commission is still in the process of analysing and reviewing both its Block Exemption Regulations, they are organising stakeholders workshops gathering the industries’ views.
OEMs claimed the exchange of information to be dealt with under the vertical relations and not under the horizontal relations. In addition, they esteem it shall be limited to what is really needed. As regard the other issues raised by authorized dealers during the workshop: abuse of dominant position and unfair practices, representatives of manufacturers were of the opinion it shall be dealt with by other regulations.
FIT FOR 55 PACKAGE & GREEN DEAL ‘European Green Deal’ dossier: ‘Fit for 55’ package dominated the last meeting of 2021 for the EU Environment Council. EU environment and climate change ministers met in Brussels on 20 December. The ministers discussed the EU’s climate package called ‘Fit for 55’ and the battery regulations. The Fit for 55 package implemented obligations throughout EU Climate Law to reduce net greenhouse gas emissions by at least 55% by 2030 compared to levels in 1990.
Read the full Digital Markets Act
On October 15th the Commission hosted a workshop dedicated on dual distribution. The automotive distribution and aftersales sector was represented by CECRA and FEDERAUTO Italy.
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DISMAL YEAR FOR UK CAR OUTPUT BUT INVESTMENT RECOVERY AND ELECTRIFIED CHARGE BRIGHTEN OUTLOOK y CAR PRODUCTION FALLS -6.7% TO 859,575 UNITS DUE TO MULTIPLE FACTORS, MOST COVIDRELATED. y UK ELECTRIFIED VEHICLE OUTPUT SURGES, UP 29.6%, TO MORE THAN A QUARTER OF PRODUCTION. y FACTORIES TURN OUT RECORD NUMBER OF BATTERY ELECTRIC VEHICLES, VOLUMES UP 72.0%. y GROUNDS FOR OPTIMISM IN 2022 WITH POTENTIAL £4.9 BILLION OF INVESTMENT ANNOUNCED AND PRODUCTION FORECAST TO BEGIN RECOVERY.
SMMT advise that car production in 2021 fell -6.7% to only 859,575 units. the worst total since 1956.1 Output was 61,353 less than 2020, which itself was badly affected by coronavirus lockdowns, and -34.0% below pre-pandemic 2019.2 Despite this, British car factories produced a record number of battery electric (BEV), plug-in hybrid (PHEV) and hybrid electric vehicles (HEV), turning out almost a quarter of a million (224,011) of these zero and ultralow emission vehicles, representing more than one-in-four (26.1%) of all cars made. The overall poor performance can be attributed to several factors, most of them direct consequences of the pandemic. The shortage of semiconductors, a critical
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component in modern car manufacturing, was the principal cause of the decline, with factories having to reduce or even pause production while awaiting parts whose supply has been heavily constrained by the global pandemic. Manufacturers also wrestled with staff shortages arising from the need to selfisolate and depressed demand with car showrooms closed for months due to lockdowns and despite the success of ‘click and collect’ services. There were also nonCovid issues behind this fall, most notably the closure of a major UK car plant in July, which accounted for around a quarter of the annual decline. More positively, the shift to electrified vehicle manufacture continued apace as BEV production surged 72.0%, while hybrids rose 16.4%, as the UK industry – like the market – transforms into a low and, ultimately, zero-carbon industry. Global exports continued to be the foundation for UK car manufacturing, with some eight-in-ten cars made being shipped overseas. Although annual production for overseas markets declined -5.8% to 705,826 units, volumes for the domestic market declined even more steeply, down -10.6% to 153,749. The European Union remained the UK’s largest market by some considerable distance, increasing to 55.0% of exports, from 53.5%, and representing 388,249 units (-3.0% vs 2020), despite frictions and costs arising from the new trading arrangements. While automotive businesses were as well prepared as they could be, an SMMT member survey in April revealed some ninein-ten (91%) firms were spending more time and resource managing UK/EU trade than in 2020. Shipments to several other major global markets also fell, with the US, our second ranked export destination, down -10.5% and Japan, our fourth largest export market, down -36.1%. China, in third place, fared
better, with exports up 0.6% to 57,356 units, reflecting strong market conditions in the country and demand for iconic British performance, luxury and premium car brands.Exports to Canada, Australia and South Korea, however, declined, -5.3%, -31.1% and -29.7% respectively. Despite the dismal overall performance, there were significant developments that give the industry increased confidence. Following the avoidance of ‘no deal’ and the signing of the Trade and Cooperation Agreement (TCA), publically announced investment for the industry reached a potential £4.9 billion in 2021, the highest total since 2013.3 This included vital investment announcements in Ellesmere Port, Halewood, Norfolk, Sunderland and Surrey. Moreover, a significant proportion of the announced investments was in support of electrified vehicles, with the expansion of existing facilities in the North-East and the proposed development of a new battery gigafactory in the West Midlands. The latter intention represents around half (£2.5 billion) of the total investment sum publically announced in 2021. Realising such investments will be vital as the UK automotive manufacturing sector is expected to need at least 60 GWh of gigafactory battery capacity by 2030 if it is to remain globally competitive as trading requirements tighten. This investment must also be matched by a package of measures to ensure manufacturing competitiveness across the supply chain, notably in training and reskilling, technology transition and urgent action to address the UK’s increasingly high energy costs.
CAR OUTPUT ROLLING YEAR TOTALS (millions) 1.8 1.7 1.6 1.5
859,575
1.4 1.3 1.2 1.1 1 0.9 0.8
Dec 2015
Dec 2016
Dec 2017
Dec 2018
Dec 2019
Dec 2020
Dec 2021
Figures courtesy of the SMMT (Scottish Motor Manufacturers and Traders) 5
USED PRICES SET TO REMAIN ‘VERY HIGH’ IN 2022 SAYS INDICATA Stock levels in January for dealers have improved marginally but the overall supply shortage is forecast to keep prices high in 2022. “Stock levels have certainly improved very slightly moving into January, but we expect demand to continue to exceed supply and for prices to remain very high,” said Jon Mitchell, Indicata UK group sales director.
volumes reached their highest level in late 2021 but still comprise a small fraction of total used car sales.
This fall in sales helped used car stock levels increase by 2.5% from December to early January which was further supported by some dealer groups de-fleeting ageing cars to boost their December year-end performance.
The latest Indicata insights report which found that 2021 used car sales in the UK grew by 15.3% above 2020 levels and by 0.8% over 2019 despite the market being under increased pressure from falling stock levels according to the latest INDICATA insights report.
Indicata said there are signs that some vendors have held used cars back to sell in January, which is also boosting stock levels, but this will be a short-term measure as the semiconductor crisis looks set to restrict new car production for many more months to come.
However, used car sales fell in December by 19.3% month-on-month which is consistent with the normal used car market slowdown towards the end of the year.
Whilst used diesel sales remain the fastestselling powertrain on average with a stock turn of 5.9 it is worth noting that BEVs tied for second place at 5.3 with petrol. EV
When looking at December’s top-seller’s table of cars less than four years of age the Ford Fiesta came top with a Market Day’s Supply (MDS) of 67.5 days, followed by the VW Golf at 69.2 days and the Mercedes A-Class at 75.4 days. The Porsche Taycan and the MG3 were the fastest-selling used cars.
Article courtesy of Motortrader
TRADE SNIPPETS VRA assesses impact of agency model on used car sector Article courtesy of Motortrader
Charity Ben announces self-referrals for free life coaching sessions for automotive industry Article courtesy of CarDealer Magazine
Nissan Leaf is Auto Trader’s fastest selling used car in 2021 Article courtesy of AM Online
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'Tsunami’ of ‘pandemic-worn’ high mileage vans to hit market in H2 Article courtesy of Motortrader
IMI task force publishes early recommendations to improve diversity in automotive industry Article courtesy of CarDealer Magazine
New consumer car finance volumes rose 33% in November Article courtesy of AM Online
LATEST CAR FIGURES
FUEL TYPE
REGISTRATIONS BY REGION
DECEMBER 2021
YEAR TO DATE Petrol
87,130
Diesel
19,779
9,207 366
18,967
Petrol/Electric
Diesel/Electric
246
Petrol/LPG
227
=
876
493 Strathclyde
137,120
108 136
6,000
12,000
Vauxhall
11,626
Volkswagen
11,449 10,281
Ford
9,338
Toyota Audi
8,628
BMW
8,533 7,539
Mercedes Hyundai Peugeot
6,422 5,999 5,773
8.48% 8.35%
7.50%
6.81%
6.29% 6.22%
5.50%
4.68%
4.38% 4.21%
TOP SELLING
MARQUES YTD 2021
Figures courtesy of the SMMT (Scottish Motor Manufacturers and Traders)
3,000
6,000
2,806
Mini Mini
2,662
Kia Sportage Ford Fiesta
2,584
Ford Puma
2,579
Toyota Yaris
Borders
2,960
Volkswagen Polo
Vauxhall Mokka
Lothian
5,416
Vauxhall Corsa
Toyota CHR
Fife
Dumfries & Galloway
0
Mercedes A-Class
Tayside
4,479 1,257
1,647,181
Kia
632
858
Central
TOTAL UK CAR MARKET:
0
Highlands
Grampian
10,771
Electric
Summary
Total Scotland
2,503 2,272 2,151 2,112
YEAR TO DATE
TOP 10 CARS 7
MONTHLY MOT VOLUMES FORCAST POST TOWN
SUM OF FORECAST TO EXPIRE
SUM OF EXPIRED TYPICAL
SUM OF CHANGE FROM TYPICAL
CHANGE FROM TYPICAL [%]
ABERDEEN
15297
15673
-376
-2.40%
DUMFRIES
5070
5341
-271
-5.07%
DUNDEE
7934
8508
-574
-6.75%
EDINBURGH
25120
26252
-1132
-4.31%
FALKIRK
8644
9083
-439
-4.83%
GLASGOW
32443
33112
-669
-2.02%
HEBRIDES
946
966
-20
-2.07%
INVERNESS
8648
8793
-145
-1.65%
KILMARNOCK
11319
11579
-260
-2.25%
KIRKCALDY
11062
12198
-1136
-9.31%
KIRKWALL
1772
1744
28
1.61%
LERWICK
703
719
-16
-2.23%
MOTHERWELL
10393
10515
-122
-1.16%
PAISLEY
9269
9780
-511
-5.22%
PERTH
5652
5952
-300
-5.04%
TWEEDDALE
3739
4060
-321
-7.91%
February 2022 figures courtesy of DVSA (Driver and Vehicle Standards Agency)
SAVE THE DATE! MOT SEMINARS ARE BACK SMTA is pleased to advise that we will be holding our joint MOT seminars with DVSA again in May 2022, kindly supported by Dingbro. Booking for these seminars will be open shortly via Eventbrite online booking system.
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y GLASGOW – 10TH MAY AT GTG
y PERTH – 17TH MAY AT HUNTINGTOWER HOTEL
y EDINBURGH – 11TH MAY AT GTG
y ABERDEEN – 18TH MAY AT VILLAGE HOTEL
y ST BOSWELLS – 12TH MAY AT BUCCLEUCH ARMS HOTEL
y INVERNESS – 19TH MAY AT JURYS INN HOTEL
OUT NOW! SMTA AUTO INSIGHT ISSUE 7 READ IT HERE
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
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 2022/2023 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 2021/22 SMTA member price
- £52.00 (plus vat)
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
Non-member price
- £60.00 (plus vat)
This bulletin is kindly supported by
Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS 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.