Your monthly news round-up of the Scottish Motor Industry
SMTA recently held it’s third ‘Females in Focus’ lunchtime event at the stunning Glasgow Grand Central Hotel. We’d like to thank Motonovo Finance as drinks reception sponsors and our supporting sponsors; Dingbro, GES, Lawgistics, Textar and Tyres Life – And of course everyone who attended. THANK YOU!
The approved insurance broker to the Scottish Motor Trade Association
The Member states' governments within the Council adopted yesterday the general approach for Euro 7. This forms the foundation for forthcoming negotiations with the European Parliament regarding the next phase of regulations on vehicle pollutant emissions.
Member states are lending their support to test conditions and limit values for cars, vans, and trucks that overall align more closely with the existing Euro 6/VI standards rather than the Commission's proposed revisions, providing little, if any, contribution to improved air quality. The Council did not retain the new refuelling emissions requirements nor the reduced evaporative limits proposed by the Commission but did preserve the inclusion of limit values for tires and brakes.
Benjamin Krieger, the Secretary General of CLEPA, the association representing the European automotive supply industry, remarks, "Automotive suppliers support the advancement of Euro 7, with realistic testing conditions and limits. The Commission’s proposal could be effectively implemented
with a few prudent safeguards. The required technology is available and economically viable. Regressing to Euro 6, as proposed by the Council, is not needed to maintain affordable mobility and will neither support implementing stricter air quality limits nor stimulate innovation in the EU. In the next decade, an estimated 100 million conventionally powered vehicles will be sold in the EU. This decision now determines whether the EU will have a role in shaping technology standards or leaves this prerogative to the United States and China.”
Bernard Lycke, Director General of CECRA representing cars, vans and truck dealers agents and repairers at European level, encourages the co-legislators to continue working on robust Euro 7 standards and their
adoption before the upcoming EU elections in June 2024.
“This is crucial to enable a quick implementation of the new Euro 7 legislation. Indeed, millions of vehicles with internal combustion engines will continue to be sold, maintained and repaired in the next years and these should contribute to air quality improvements.”
A decision regarding the European Parliament's position is anticipated on 12 October. Following the adoption of positions by both institutions, the Parliament and the Council, negotiations in the trialogue phase will commence.
y Scottish Tories say target of 30,000 charging points could be missed
y Country aims to be net zero by 2045
y Installation of charging stations ‘is going at a snail’s pace’
Scottish ministers have been urged to take a leaf out of Rishi Sunak’s book on net-zero targets after he delayed a ban on new petrol and diesel cars until 2035.
Following last Wednesday’s surprise U-turn, first minister Humza Yousaf branded the five-
year delay ‘unforgivable’ and warned that the UK government’s announcement would put Scotland’s target for net zero by 2045 in jeopardy.
A key climate target to have 30,000 electric car-charging stations installed in Scotland could be missed by 12 years, suggests analysis by the country’s Tories.
The FCA said its data showed that there had been cases where only 6% of the amount customers paid in premiums was paid out in claims with some firms paying out up to 70% of the value of insurance premiums in commission to parties in the distribution chain, such as dealerships.
the industry, reminding them of their duty to ensure good customer outcomes.
GAP insurance is an add-on to motor insurance and covers the difference between a vehicle’s purchase price and its current market value.
As a result, firms offering this type of insurance have been given a three-month ultimatum by the regulator to take immediate action, or risk an intervention. The FCA added that it had written to all companies within
New Consumer Duty regulations introduced by the FCA in July set out updated regulations that insurers must follow to ensure a service driven market through reviewing their products and services against a new standard of fairness.
European car makers are demanding that Brussels postpone the impact of a Brexit trade deal for three years to prevent tariffs being imposed on electric vehicles (EV) traded between the EU and the UK.
"Rules of origin" which come into force in January will apply to cars both imported and exported across the Channel under the terms of the UK-EU Trade and Cooperation Agreement which was struck as part of the Brexit negotiations.
Should the value of a vehicle’s locally sourced components fall short, then an import tariff of 10% will be applied to car shipped across the Channel, in either direction.
The rules were designed to protect the European industry from cheap imports but EVs are problematic because battery
production in Europe has not ramped up sufficiently and because the battery makes up a significant portion of an EV’s value.
Until 1 January 2024, only 40% of an EV’s value needs to be made up of localised parts, rising to 45% after this date until 31 December 2026.
A 55% requirement will begin at the start of 2027.
Carmakers in the UK and EU will therefore struggle to meet the new criteria as they remain reliant on sourcing components from outside the UK and the EU. As such, their cars will face the 10% tariffs when traded across
the Channel, in either direction.
The European Automobile Manufacturers’ Association (ACEA) is warning that should the European Commission fail to act, it will cost EU car makers £3.75 billion over the next three years, potentially reducing electric vehicle production by some 480,000 cars, the equivalent output of two average-size auto factories.
ACEA said that the only way to avoid these duties would be to source all battery parts and some critical battery material in the EU/UK although this is, as it points out, is ‘practically impossible to achieve today’.
The FCA has given insurers a three-month ultimatum after recent data revealed that guaranteed asset protection (GAP) products could be failing to provide fair value.
Supporting Sponsors
This week, SMMT released figures for August pre-registrations in the UK new car market. The data shows the number of cars disposed of by vehicle manufacturers in August 2023 that were defined as pre-registrations.
The Supply of New Cars Order 2000 requires motor manufacturers to publish the number of pre-registered cars supplied and the gross income received by suppliers from selling those preregistered cars. This information is published on a monthly basis.
Carrots rather than sticks must now underpin the UK’s EV transition
Article courtesy of AM Online
Motor Trader reveals top UK Dealer Groups for Return on Sales
Article courtesy of Motortrader
Toyota predicts 620-mile range for EVs by 2027 after battery breakthrough
Article courtesy of CarDealer Magazine
Car buyers back delay to 2030 ban as more than ever say they will NEVER go electric
Article courtesy of CarDealer Magazine
September used car market heading for 2% drop, says Cap HPI
Article courtesy of AM Online
BLOG UK automotive infrastructure faces enormous skills confusion
Article courtesy of Motortrader
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
ACCOUNT ENQUIRIES:
Telephone – 0131 331 5510
Email – accounts@smta.co.uk
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
Gordon Laing – 07799 732124
Support Services Consultant
APPRENTICE TRAINING ENQUIRIES
Fraser Miller – 07789 264229
Apprentice Training Manager
EMPLOYMENT LAW ENQUIRIES
Moira Gaynor – 0131 331 5150
Company Secretary/Finance Manager
SCOTSURE WARRANTY:
Claims and Enquiries – 0131 331 5512
EVENTS & MEDIA ENQUIRIES:
Karen Thompson – 07922 079889
Events & Media Manager
ADVERTISING/SPONSORSHIP ENQUIRIES:
Wendy Hennessy – 07974 380140
Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS Telephone: 0131 331 5510
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