BULLETIN
Your monthly news round-up of the Scottish Motor Industry
SEPTEMBER 2024
SMTA celebrate females in automotive
SMTA held its fourth ‘Females in Focus’ event on Friday 20th September at the Grand Central Hotel, Glasgow.
It was a great afternoon listening to our amazing and inspiring guest panel tell us their career stories. Lots of laughs and thought provoking discussion all with the aim to promote the careers in our industry for females.
Thank you to all who attended!
The approved insurance broker to the Scottish Motor Trade Association
EVs lose value twice as fast as ICE vehicles, losing average +£11K in first 3 years
New data highlights the significant depreciation of electric vehicles (EVs) compared to traditional petrol and diesel cars, with electric cars dropping in value by an average of £11,225 over the first three years.
-Analysis by digital car finance lender Carmoola and vehicle valuation experts Brego reveals that EVs lose nearly half of their value during this time, much faster than conventional fuel types.
A key findings revealed that EVs lose an average of 21% of their value – or about £5,000 - in the first year.
The Renault Zoe and Audi E-Tron are among the worst performers, depreciating by 63% and 59%
EMPLOYMENT LAW NEWS
respectively over three years. The Jaguar I-Pace and Nissan Leaf also suffered, losing nearly 60%.
Skoda Enyaq and Volkswagen ID.4 hold their value better, with the Enyaq losing only 30% of its value.
German brands dominate the list of the slowest-depreciating EVs with the Volkswagen ID.4 retaining 55.85% of its value, while Mercedes-Benz EQA retained 53.75%.
The Polestar 2 and Volkswagen ID.3 also held more than half their value.
The rapid depreciation of EVs is attributed to several factors, including the fast pace of technological advances, improvements in battery range, and the high price tag of newer models.
Predictable working pattern law will not come into force
The government has announced that the Workers (Predictable Terms and Conditions) Act 2023 will not be brought into force.
As we explained in a JEL Alert last October, the Act was aimed at giving workers with atypical working patterns the right to request a more predictable working pattern. The right to request would have worked in broadly the same way as flexible working requests.
However, this does not mean that the government does not intend to strengthen workers’ rights in this area. We can expect stronger measures to be included in the Employment Rights Bill, aimed at ending (to use the government’s language) “one-sided flexibility” in the workplace.
It is expected that the government will instead legislate to give workers the right to a contract that reflects the number of
hours regularly worked by that worker.
The Employment Rights Bill is due to be published within 100 days of the King’s Speech, and we might therefore expect to see it in October. It will make significant changes to UK employment law, and Just Employment Law will be providing all of our clients and subscribers with regular, in-depth news and analysis of its contents Courtesy www.justemploymentlaw.co.uk
SMTA EVENT
SMTA ANNUAL DINNER 2024
THURSDAY 24TH OCTOBER
HILTON HOTEL, GLASGOW
Join us for a Special Evening
The Scottish Motor Trade Association is thrilled to invite you to one of the most anticipated events in our industry’s calendar, the SMTA Annual Dinner 2024. This prestigious evening will be a celebration of excellence, achievement, and community spirit within the Scottish motor trade industry.
Special Guest Speaker: Ben Collins, aka “The Stig”
We are honoured to announce that this year’s guest speaker will be none other than Ben Collins, renowned for his enigmatic presence as “The Stig” on the iconic television series, Top Gear.
Spaces for the SMTA Annual Dinner 2024 are limited. Secure your attendance at this prestigious event and be part of an evening dedicated to excellence, inspiration, and community spirit within the Scottish Motor Trade Industry.
Drinks Reception Sponsor
Trading Standards take action against car dealer | North Lanarkshire Council
Trading Standards Service has successfully obtained an Enforcement Order against Cumbernauld Car Sales Ltd and company director Jakub Niemczyk, following a high number of consumer complaints.
On 8 August 2024, at Airdrie Sheriff Court, an Order was granted prohibiting Mr. Niemczyk and agents acting on behalf of Cumbernauld Car Sales Ltd from engaging in several unlawful practices.
This action follows a significant number of complaints regarding the sale of unroadworthy vehicles, misleading statements in respect of vehicles, and refusal to provide consumers with their statutory right to redress when vehicle faults were identified. An Interim Enforcement Order had been obtained from the Sheriff Court in October 2023.
The Enforcement Order places several conditions on both Cumbernauld Car Sales Ltd and Mr. Niemczyk, including:
y Providing Cancellation Notices: They must provide consumers with written notice of their right to cancel any contract at the time it is made, where applicable.
y Selling Roadworthy Vehicles: They must ensure that all vehicles sold are not dangerous.
y Reasonable Skill and Care: They must take reasonable skill and care when preparing second-hand vehicles for sale.
y Accurate Information: They must not provide false information to consumers or create the impression that a motor vehicle can legally be sold when it cannot.
Additionally, the court has ordered the business to publish the granted Enforcement Order in a manner deemed appropriate to eliminate any continuing effects of the infringement, as per Section 217(1) of the Enterprise Act 2002.
Spike in new car disputes highlighted by The Motor Ombudsman
The Motor Ombudsman is reporting a significant rise in new car disputes for 2024, revealing an 18% increase in complaints compared to the previous year.
The Motor Ombudsman operates under two primary codes: the New Car Code, which focuses on manufacturers’ warranties ranging from three years to over seven and the Vehicle Sales Code, which addresses complaints related to both new and used vehicle sales from dealerships and garages.
In a recent webinar, chief ombudsman Bill Fennell noted that while new car complaints are rising, the bulk of disputes still stem from used vehicle sales. Even so, last year, The Motor Ombudsman recorded approximately 3,400 new car disputes, a number that has now surged to around 4,000 so far in
2024. “We saw an increase around 40% in the volume of cases coming into us in 2023, and we’ve seen a similar increase this year,” Fennell reported, noting that a significant factor contributing to the rise in complaints is consumers’ growing awareness of their rights.
Key drivers behind this trend include ongoing concerns over the cost of living driving consumers to seek resolution more aggressively. “Consumers are more inclined to pursue full refunds or vehicle rejections than they were pre-pandemic. This shift highlights a significant change in expectations following recent market challenges,” he added.
Fennell also noted the increasing amount of information consumers are giving to support their claims, saying, “it’s not unusual for us to have a case file from a consumer which can be more than 100 pages.”
Delving into the specifics, Fennell pointed out that 70% of new car disputes are tied to manufacturers’ warranties, often concerning paint quality, leather issues, or electronic malfunctions.
Just 2% of automotive technicians are trained to work on the 13% of vehicles with ADAS
IMI TechSafe data reveals a continuing and dangerous shortfall in ADAS-qualified technicians.
New analysis from The Institute of the Motor Industry (IMI) has revealed a dangerous shortfall in the number of technicians qualified to repair and maintain vehicles featuring Advanced Driver Assistance Systems (ADAS).
Today, 13% of vehicles has some degree of autonomy, while just 2% of the technicians in the UK (4,425 individuals) are IMI TechSafe registered and qualified to work safely on servicing, repairing and maintaining these complex and potentially life-saving systems.
“The proportion of ADAS-equipped vehicles has grown from 11% in January
2024 to 13% in July, yet there has not been a similar increase in the proportion of ADAS-trained technicians”, explained Kevin Finn, Executive Chair of the IMI.
“As the proportion of vehicles featuring ADAS accelerates, ahead of the introduction of fully automated vehicles, it is critical that more technicians are trained to work on vehicles with this technology.”
With ADAS the pre-cursor for fully automated vehicles, following the Automated Vehicles Bill 2024 receiving Royal Assent in May 2024, the IMI is keen to see future legislation take into
account the skills required to meet the maintenance and repair needs of the growing ADAS car parc.
As drivers become more reliant on ADAS safety features, the risks when failures occur increase dramatically. For example, when lane departure warnings or emergency braking fail at high speed, the outcome could be catastrophic. When vehicles are serviced, many drivers falsely believe the ADAS systems are checked, so they do not seek out specialist checks and maintenance, unwittingly putting themselves and other road users at risk.
Courtesy www.theimi.org.uk
Used car sales ticked up by over 1% in August for UK’s Top 200 car dealers
The UK’s top 200 dealers saw used car sales rise by over 1% in August, latest data shows.
Figures from our data providers CarCondor.co.uk show that the most stocked dealers in the country sold 170,124 used cars last month – a marginal 1.45% gain on July’s 167,697.
The uplift mirrors other data from experts such as Cap HPI that show
August was a surprisingly strong month for used cars with both sales and values remaining strong.
Sales of used cars raked in £3.48bn in July – a marginal 0.7% rise on July’s £3.46bn.
The CarCondor.co.uk data also showed that new stock fell by a pretty robust 9.12% 160,089, potentially pointing to a widespread shortage of quality used car stock.
Sales of all dealer types rose by 1.31%. Franchised dealers led the way with sales growing by 2.27%, followed by supermarkets at 1.45%. Independent dealers, however, saw sales fall by 3.88%.
MOT FORECAST VOLUMES OCTOBER 2024
TRADE SNIPPETS
The most (and least) reliable car brands named
GB Energy: What does it mean for Scotland?
Article courtesy of BBC
Car salesman fined for selling customer data to competitors
Article courtesy of Motortrader
Dealers missing out on hundreds of millions of pounds by not pricing stock correctly
Article courtesy of CarDealer Magazine
FCA extends pause on complaints handling in motor finance commission scandal
Article courtesy of CarDealer Magazine
Volkswagen Group UK confirms overhaul of dealer networks
Article courtesy of Motortrader
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SMTA CONTACTS
ACCOUNT ENQUIRIES:
Telephone – 0131 331 5510
Email – accounts@smta.co.uk
SCOTS AUTOSCENE
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
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
Wayne Sutherland – 07729 045666
Support Services Consultant
APPRENTICE TRAINING ENQUIRIES
Fraser Miller – 07789 264229
Apprentice Training Manager
EMPLOYMENT LAW ENQUIRIES
Moira Gaynor – 0131 331 5510
Company Secretary/Finance Manager
SCOTSURE WARRANTY:
Claims and Enquiries – 0131 331 5512
MEMBERSHIP COMMUNICATIONS:
Karen Thompson – 07922 079889
Membership Communications Manager
EVENTS ENQUIRIES:
Email: events@smta.co.uk
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
www.smta.co.uk
