SMTA Monthly Bulletin November 2024

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SMMT pleas for better backing for UK vehicle manufacturing

Amid a downgrading of UK’s forecast car and light van production the Society of Motor Manufacturers and Traders has warned the Government of “devastating” risks from lower vehicle output.

Its expectations suggests the UK assembly plants, which include Nissan’s Sunderland factory, Toyota’s Burnaston plant and Stellantis facilities at Luton and Ellesmere Port, will produce 911,000 vehicles this year, and just 839,000 in 2025, around a third less than the almost 1.4 million cars and light vans made five years ago in the last pre-pandemic year.

If the OEM’s planned UK zero emission model launches stay on track, and crucially consumer demand for electric vehicles (EVs) improves, the Society of Motor Manufacturers and Traders (SMMT) believes that there is potential to get above one million units in 2028.

If not, the SMMT predicts that output will remain below one million units until 2030, and could drop to fewer than 750,000 in a worst-case scenario should OEMs reduce their model lineups and close factories

This, it says, would have a devastating effect on the sector, jobs and economic growth.

The analysis follows a series of announcements by manufacturers and suppliers, in the UK and Europe, reflecting challenging market conditions and a slowdown in the transition to electrification.

Ford announced it is cutting 800 UK jobs over the next three years, with 4,000 roles being lost across Europe, due to weak demand for EVs.

Stellantis has said it will close its Luton

MOT mileage errors

What DVSA do

At DVSA, we receive a lot of requests to amend MOT mileage readings and other test record errors.

Despite best efforts, if there is a lack of evidence provided, we are not always able to correct these.

Impact on customers

DVSA knows customers expect MOT businesses, such as yours, to record mileages and other information on MOT records accurately.

Wrongly recorded mileages have a significant impact on car values.

Research has identified values will be reduced up to 8% for customers. This would equate to a reduction of £800 on a vehicle normally valued at £10,000.

How to detect errors

A warning message tells you if the reading is higher than the last test, if the reading that’s entered is considerably different.

What can you do?

Whether or not you are presented with one of the warning messages you should check all the information on the test confirmation screen is correct and if not

factory, which makes vans for its Vauxhall, Citroen, Peugeot and Fiat brands, and consolidate its electric van production into its Ellesmere Port plant. In 2022 it had said Luton would commence electric van production in 2025.

The Government says it will launch a ‘fast track’ consultation on EV sales targets in the ZEV mandate after mounting pressure from the auto industry.

Mike Hawes, SMMT chief executive, said: “These are deeply concerning times for the automotive industry, with massive investments in plants and new zero emission products under intense pressure.

correct it before the test result is saved.

How to report an incorrect mileage

entry

Unfortunately, some errors are missed.

If they are noticed within 28 days of the MOT being conducted, these can be corrected at your MOT centre. Where errors are noticed over 28 days, these must be reported to DVSA to fix.

November’s used car market outperforms seasonal norms

The used car market outperformed the seasonal norms in November despite concerns about the budget and vehicle finance disruption, says cap hpi.

Movements have outperformed the seasonal average every month of 2024.

Chris Plumb, head of current car valuation at cap hpi, said: “November has proven to be an intriguing month for the used car retail sector, as several potential headwinds loomed, threatening to disrupt business activity.

“The combination of half-term holidays, the Autumn Budget announcement and a pivotal court ruling on undisclosed commission payments created a challenging and uncertain backdrop for the market.

“The Autumn Budget, delivered by the Chancellor of the Exchequer on 30th

October, generated initial concern about its potential impact on consumers. However, the immediate fallout appeared limited.”

The value of an average three-year-old vehicle with 60,000 miles decreased by 1.6%, equating to around £280. Since 2012, the average movement into December has been -2.1%.

Values for one-year-old vehicles decreased by 1.3% (£400). Five-year-old vehicles saw a reduction of 1.6% (£200), and 10-year-old vehicles experienced a decline of 1.6% (£70).

Over half of the vehicles in this sector experienced no adjustment to values. The BMW 7 Series, in both petrol and hybrid variants, stood out with a 2% increase, adding between £600 and £680 to used values.

Petrol and diesel vehicles recorded the largest reductions at the three-year point (-1.7% or £300). PHEVs saw a decrease of 1.3% (£280), while HEVs performed best (average movement of -0.7% or £100

BEVs dropped to the second bestperforming fuel type in November (average adjustment of -0.9% or £180.

Plumb said: “In summary, November’s movements reflect a continued return to typical seasonal declines despite the presence of various factors that could have negatively impacted the market.

“The used car sector has demonstrated remarkable resilience as 2024 approaches its conclusion.”

Renault Scenic E-Tech crowned Scottish Car of the Year

The Renault Scenic E-Tech has been named Scottish Car of the Year 2024 by the Association of Scottish Motoring Writers (ASMW), in partnership with Arnold Clark.

The vehicle impressed judges with its combination of versatility, comfort, driving range, build quality, and sleek design, helping it stand out among a competitive field of talented contenders. In addition to the main award, the Scenic E-Tech also claimed the title of Best Electric Family Car.

Adam Wood, managing director and country head Renault Group UK, said: “The Renault Scenic E-Tech 100% electric has been designed for modern families. The judges’ reasoning behind this prestigious award underlines how it is completely unrivalled in what it

offers, blending optimum practicality, refinement and convenience with a fantastic driving and ownership experience.”

Alisdair Suttie, ASMW president, added: “The standard of cars across the board for SCOTY 2024 has been exceptional, so it was always going to take a very special car to achieve overall victory and that is exactly what the Renault Scenic E-Tech is.

“The judges were bowled over by its comfort, space, versatility, and how good it is to drive plus the excellent driving range. It encapsulates all of the great values of the Scenic name in a sharply styled package that’s affordable to buy and own, and just as importantly a pleasure to live with.”

This year’s awards saw a strong performance from Kia, which secured

three category wins. The Kia EV9 was recognized as the Large EV, while Kia also took home the Manufacturer of the Year award. The Kia Sportage was honoured as the Used Car Over £15,000.

Electrification was a key theme in the 2024 Scottish Car of the Year Awards, with the Suzuki Swift taking home both Small Car and Best Eco Performance titles. The Lexus LBX was named Best Compact Crossover/SUV, while Lexus also won the Aftersales Award.

Skoda’s new Kodiaq won the ICE Family Car category, and the Polestar 3 claimed the title of Premium/Executive Car of 2024.

MOT FORECAST VOLUMES DECEMBER 2024

TRADE SNIPPETS

Ben urges automotive industry to take part in Health and Wellbeing survey

Article courtesy of AM Online

Ford to cut 4,000 jobs in Europe amid EV sales slowdown

Article courtesy of Motortrader

Customer court claim against used car dealer after engine failure dismissed

Article courtesy of CarDealer Magazine

Car finance scandal could cost lenders £30bn warns leading ratings agency

Article courtesy of CarDealer Magazine

IMI competition names the UK’s best car and van repairers of 2024

Article courtesy of AM Online

Security-related Repair and Maintenance information (SERMI) to launch in UK

Article courtesy of Motortrader

What is Grampian Motor Training Trust?

Grampian Motor Training Trust is dedicated to the support of training and staff development within the motor trade in the North East of Scotland. It does so by providing financial support.

What can we help to fund?

Mostly support is directed towards short term training courses provided by any recognised training provider however longer term courses will also be considered.

How do I apply?

The process is simple, it will only take 5 minutes to complete. Applications are made via the GMTT website at: www.gmttrust.co.uk. You will get a quick reply.

What happens Next?

At the end of the training simply submit proof of completion and you will be sent the agreed amount of funding.

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

SMTA CONTACTS

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

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

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