Car Dealer Magazine: Issue 137

ALL CHANGE: THE DISRUPTORS READY TO CAUSE TURMOIL IN OUR INDUSTRY

Issue 137 | August 2019 | CarDealerMag.co.uk | £5

S E’ W E CR

E L I S MIS

DRIVEN: OM BRUTE FORCE FITRS V8 BENTLEY AND COUPE CONTINENTAL

SALES ?

R A C E IN L N O R O PING POINT F IP T E H T H C A E R BOUT TO PLUS: ARE WE A ENTER NOW !

INVESTIGATIOSNOLVE A PROBLEM LIKE HOW DO YOU

?

N O G A R D PEN COMMENT SEE FEATURE &

GRAB A GONG AND ENJOY A CRACKING CELEBRATION

The UK’s Best Used Car Warranty

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Editorial ACTING HEAD OF EDITORIAL Jack Evans

jack@blackballmedia.co.uk Twitter: @jackrober

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

CHIEF SUB-EDITOR John Bowman

john@blackballmedia.co.uk

STAFF WRITER Ryan Hirons

ryan@blackballmedia.co.uk Twitter: @RyHirons

STAFF WRITER Darren Cassey

darren.cassey@ blackballmedia.co.uk Twitter: @darrencassey

Advertising SALES MANAGER Jon Hickey

j.hickey@blackballmedia.co.uk Twitter: @cardealerjon

ACCOUNT MANAGER Michelle Searle

michelle@blackballmedia.co.uk Twitter: @cardealermich

Suits CEO, BAIZE GROUP James Baggott james@thebaize.com Twitter: @CarDealerEd

MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors Ted Welford, Adam Weller, Oliver Young

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Welcome.

THE summer months are often referred to as the silly season in the newspaper industry.

With a dearth of proper news to report, the papers turn their attention to crop circles, the price of strawberries at Wimbledon, and the number of sunbathers on Brighton beach. It all goes quiet until September...

That’s what’s supposed to happen anyway – but nobody told the automotive industry. June and July were exceptionally busy months for us here at Car Dealer Towers and we have seen the number of visitors to the magazine’s website go through the roof with everything that’s been going on. As a result of that hectic spell, we have an exceptionally news-packed magazine for you this month, so whether you’re working your way through the summer or jetting off to foreign climes, keep us with you and you’re sure to stay up to date.

One of the biggest stories to break in July involved the dealer group Pendragon, with chief executive Mark Herbert leaving his position after just three months in the job. We report on that on pages 14-15 and James Baggott discusses what’s going on at the company on page 82.

James has also turned his attention to a couple of other industry talking points in this issue. Firstly, he explores whether we are reaching a tipping point for online car sales, and secondly, he looks at the disruptors who want a piece of the automotive action as we move towards a more electric, autonomous feature.

You can read all about those issues on pages 6 & 7 and 48 & 49 respectively.

AS I write this, it’s about 75 degrees and the sun is shining outside. But – and you can probably guess where I’m going with this – it really

won’t be long before we’re counting down to Christmas and enjoying all the parties and gatherings that are associated with the festive season.

One of the key events that takes place in the run-up to December 25 (at least for us in the automotive industry) is, of course, the Used Car Awards, hosted by the one and only Mike Brewer, pictured below.

Mike does a fantastic job as compere and the awards are a huge success each and every year. Look at the people in the picture above! They’re having a fantastic time at a previous awards ceremony and this year it could be you celebrating with us at The Brewery in London.

If you’ve entered before, please do so again – and if you haven’t, give it a go! Dealerships from all over the UK have been thrilled to win our gongs in the past and this year it really could be you! Find out how to get involved by turning to pages 18-21.

VORSPRUNG durch Technik... Innovation that excites... we’re all familiar with the slogans car manufacturers have come up with over the years. Hardly surprising really, when you consider how frequently their ads are shown.

But what actually goes on behind the scenes when a new TV commercial is filmed? We sent Ted Welford to the Peak District recently and he enjoyed a fascinating day on location with Mazda as it worked on some new ads to be shown on Film4. Everything was going fine until Ted annoyed some farmers, apparently... Check out his report from page 52.

Enjoy the issue.

Dave Brown Production Editor CarDealerMag.co.uk | 03

83% of dealers

rate our funding options for their business good or very good

Our account manager introduced us to a stock funding plan, “taking us from selling 30 cars a month to 80. Thanks to Close Brothers

Motor Finance, we’re buying more cars, selling more cars, and we’re now a lot more profitable.

”

James Khan, Riverside Autos

To start your journey with us

visit closemotorfinance.co.uk/funding

04 | CarDealerMag.co.uk

Funding

|

Finance

|

Insight

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Compliance

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £49.99 subscription

Ford Focus ST

It looks good on paper – but how does it perform on Tarmac? Darren Cassey headed to Nice to find out…

A round-up of news from across the UK

ISSUE 137 I AUGUST 2019

Dashboard.

Big Story: Online car sales Around the UK Richmond Group expands Trouble at the top of Pendragon Used Car Awards 2019 Big Mike Feedback Around the World Finance

06 10 13 14 18 31 32 34 36

Features.

Here come the disruptors Making a Mazda TV ad

Data File.

The Statistics Fully Loaded Aftermarket Car Dealer Club Auctions Taking Stock

Forecourt.

Renault Clio Bentley Continental GT V8 Coupe Volkswagen Passat GTE

41 42 46

Market Insight Sean Speaks Suppliers Guide Long-termers

48 52 58 60 64 66 68 69 70 73 76 79

The Used Car Awards need YOU to enter now!

Farewell to our long-term Skoda Fabia Monte Carlo

Our events...

As voted for by dealers, Car Dealer Power is unique. Get involved with the 2019 survey online at cardealermagazine. co.uk/powersurvey/

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry.

The 2019 awards are launched in this edition of the mag! Turn to page 18.

Car Dealer’s automotive trade expo features the Live Stage, workshops and much more. The 2019 event took place at Farnborough in June – stay tuned for news of our plans for 2020!

CarDealerMag.co.uk | 05

Dashboard.

THE BIG STORY

Is the tipping point for The internet changed the car advertising landscape irrevocably but what are the implications for the buying process? James Baggott investigates.

C

ar buying is changing – fast. The days of traipsing around numerous bunting-clad forecourts, clutching a copy of the local paper’s car classified section are long gone.

The internet changed all that with the rise of online advertising portals and now it’s shaking up the car-buying process too.

Car manufacturers, dealers and specialist websites are all dipping their toes in the water of selling cars online. While no winning formula has yet been found, firms are offering consumers different ways of shelling out for a new car on their phone or laptop from the comfort of their sofa.

But are buyers ready to enter their credit card details for a car, and click ‘buy’? And, if they are, does that spell the end of the traditional car dealership?

A recent poll by DriveTribe.com suggests that more customers than ever before are ready to buy cars on the internet. Some 46.8 per cent of 2,000 respondents in an online survey on its website said they were ready to shell out for a car online now.

In the States, where the car-buying landscape is arguably more advanced than in Europe, buyers are used to walking into a dealership and an hour later driving off in a new car.

Forecourts there hold thousands of cars in stock, so buyers can choose a new one just as easily as a pair of jeans.

This buying-from-stock model, rather than Europe’s factory-order format, lends itself far better to online car sales – and there are established web-based set-ups flourishing in the US. Carvana is one of the biggest success stories.

The online sales site sells used cars which buyers can have delivered to their homes or they can pick them up from one of the firm’s 18 famous ‘car vending machines’. Last year it sold nearly 100,000 cars online – more than double the year before.

The firm blocks visitors to its website from outside the US, but hints that it would ‘love to sell cars to the rest of the world’.

Another US player is Vroom.com, which promises to sell used cars online ‘hassle- and haggle-free’. To give buyers peace of mind, the site offers a free history check and a free warranty, while finance can be applied for and approved online too. It currently offers more than 3,000 cars for sale.

06 | CarDealerMag.co.uk

Cargurus.com is an advertising portal that operates a hugely successful website in the States and is breaking into the UK. Its chief operating officer, Sam Zales, has been watching the online sales breakthroughs carefully.

He said: ‘Studies have revealed that 62 per cent of buyers would consider purchasing a used car online, but just four per cent currently do.

‘There is clearly significant interest in the UK in a purely online car-buying process, but the small number completing a sale in this way shows there is work to be done by the industry to give consumers the tools they need to confidently complete an end-to-end online purchase.’

Car manufacturer Tesla has made a great success of selling cars online across the globe – but its tech-savvy customers are already used to buying big-ticket items on the web. Other manufacturers have had mixed success.

Mitsubishi UK launched an online sales service in 2017, but managing director Rob Lindley reported that of those customers who started their car-buying journey on its website, just six per cent bought online – the rest did a deal in a showroom.

Peugeot UK offers a similar experience on its website – and was one of the first to offer sales online. It’s been more successful, selling 3,000 cars online in 2018.

Meanwhile, over in Germany, Volkswagen has launched Hey.Car, an online used car platform that directly rivals the country’s established classified sites and promises to be 100 per cent

advert-free. While many companies, including supermarket giant Tesco, have tried and failed to sell cars online, there are many others queuing up to give it a go.

As established dealers and manufacturers dip their toes in the water across the world, it often takes a disruptor entering the market to tip things such as online car sales over the edge.

Serial entrepreneur Alex Chesterman, who set up house-hunting website Zoopla and made millions selling Lovefilm to Amazon, has raised £30m to launch a car-buying and rental website called Cazoo in the UK. Although yet to be launched, it’s believed the platform will allow customers to buy, finance or rent a used car online and have it delivered to their door in 48 hours.

Chesterman said: ‘I’m excited by the opportunity to transform the used car buying experience, which suffers from poor satisfaction and convenience and is failing to meet the needs of consumers. Buying a car should be no different to buying any other product online today.’

It’s interesting that tech specialists have spotted what they believe is a gap in the market. How long, then, before the likes of Google or Amazon want a piece of the action too?

Dealers in the UK remain unconvinced about online sales. Bosses of two of the largest groups were asked whether they thought online sales would ever eclipse those taking place in their showrooms.

‘Not in my lifetime,’ said John Tordoff, CEO of

‘Studies have revealed that 62 per cent of buyers would consider purchasing a used car online, but just four per cent currently do.’

Sam Zales, chief operating officer of Cargurus.com

It’s time to get your entries in!

Used Car Awards 2019, p18

online car sales here? family-owned dealership group JCT600, the 11th biggest in the UK. ‘Although people are buying cars on our website, I think it’s a slow burn and it’s very much a generational thing.’

It was a view echoed by Daksh Gupta, boss of Marshall Motor Group, the seventh biggest in the UK. ‘There will be a small percentage of customers who are not comfortable with the traditional sales process and will want to buy online because they don’t like the experience and want to make it easy,’ he said.

‘Over time that might increase.’

GForces, a leading car dealer website builder, is investing heavily in systems for facilitating car sales online. The firm is rolling out the software to its UK customers, with 100 dealers expected to be live by the end of the year.

Bosses at the firm believe consumer demand is there but that there are simply not enough retailers doing it yet.

Managing director Giles Smith said: ‘The tipping point has begun. Stats from Google and KPMG have indicated that there is growing demand from consumers to buy vehicles online,

‘Although people are buying cars on our website, I think it’s a slow burn and it’s very much a generational thing.’

John Tordoff

but the reality is that dealers have not had the means – until now.’

Some would suggest this slow uptake isn’t down to a lack of demand, but more to do with a reluctance to switch away from a tried-andtested and, more importantly, heavily-invested-in retail set-up. For decades, manufacturers have pressed franchisees into spending millions on gin palace showrooms to showcase their brands.

To then tell them all that was all in vain and they now simply need some digital real estate wouldn’t be the easiest of conversations.

What may force the shift in online sales is new technology. When fully autonomous, electric cars become widespread, consumers may get used to ordering a car on an app to arrive at a time to suit them.

The question then shifts to not if car buyers are ready to buy online, but whether consumers will want to buy a car at all.

David Bailey, professor of business economics at Birmingham Business School, predicts this could be the real catalyst for change.

He told us: ‘At the moment, people prefer to kick the tyres, go for a drive and shake hands on a deal, but that could change dramatically with a shift to consumers paying for mobility as a service.’

The ‘Amazon Prime’ of the car industry, p28

Mazda’s gold blend SOME car firms have blended online and physical sales in areas where it’s tough to find affordable retail locations.

Mazda has done just that in London with its MyWay pilot, which allows buyers to book a home visit online and the car they’re interested in is brought to them.

Jeremy Thomson, Mazda MD, said: ‘The MyWay pilot blended digital and experiential and has now evolved into a programme which we are rolling out to some of our network to help them extend reach in their local areas. It sold around 550 cars.

‘It has influenced our view that the sales model of the future needs to be a seamless, omnichannel experience that weaves together virtual, digital, online and physical sales channels and environments.’

CarDealerMag.co.uk | 07

Dashboard.

Wet, wet, wet: My boss got a well-deserved drenching!

Confession, p77

PROBE

SMMT STATS

Shares suffer as Lookers reveals Financial Conduct Authority investigation

Now it’s a YEAR of decline for car manufacturing

by JOHN BOWMAN john@blackballmedia.co.uk

T

he Financial Conduct Authority has launched a review into the sales processes of Lookers, one of the UK’s leading car dealership groups. The announcement sent shares in the company tumbling.

Lookers described the FCA probe as ‘a review into the controls and processes of its regulated activities’.

In a statement, it said: ‘Adapting to developments in regulation affecting the motor retail industry and the fast pace of change of customer demands and behaviours is a key challenge and an important priority for the group.

‘As disclosed in the 2018 Annual Report and Accounts, during last year the board became aware of certain matters requiring review in some areas of the business subject to regulation by the Financial Conduct Authority.

‘In December 2018, the board commissioned an independent review of the group’s internal control, risk assurance systems and internal audit.

‘This review, which we shared with the FCA, indicated that there were some control issues in the sales process in the group’s regulated activities which will require an improvement plan to be implemented.

Lookers’ Volkswagen dealership in Battersea, south-west London, shown for illustrative purposes

‘We have invested in both our internal capabilities and external advice. The project will be completed and agreed actions will be implemented as soon as possible.’

Lookers added that the probe would cover the period of January 1, 2016 to June 13, 2019.

‘The FCA investigation is newly commenced and no findings have been made,’ it added.

‘The FCA will reach its conclusions

in due course and, at this stage, the company cannot estimate what effect, if any, the outcome of this investigation may have.

‘The company is co-operating fully with the FCA in relation to this and will update the market further when appropriate.’

Lookers is a multi-franchise dealer group that represents 32 volume and premium car manufacturers throughout the UK and Ireland.

Ford reveals full details of its new scrappage scheme FORD has launched a new scrappage scheme to take older, less fuel-efficient vehicles off UK roads, replacing them with cleaner and more fuel-efficient new Ford models.

The Ford scrappage scheme enables customers to save £2,000 (including VAT) on selected Ford passenger vehicles and £2,000 (excluding VAT) on selected Ford commercial vehicles when they take their existing vehicle to a Ford dealership. The dealership will then arrange for the vehicle to be 08 | CarDealerMag.co.uk

scrapped at an authorised facility and a certificate of destruction issued.

To be eligible for the scrappage discount, customers must order their new Ford vehicle between July 1, 2019, and September 30, 2019, and have their new vehicles registered between July 1, 2019 and March 31, 2020.

Any make of passenger vehicle or commercial vehicle is eligible for the Ford scrappage scheme provided it was registered on or before December 31, 2012, and must have been owned

by the customer for 90 days or more before scrapping. The saving can be used against the purchase of Ford commercial vehicles (excluding Transit Connect and Ranger Raptor), and most Ford passenger vehicles.

Andy Barratt, the MD of Ford of Britain, said the manufacturer’s previous programme had helped reduce CO2 and other emissions on UK roads, and added: ‘We expect our new scheme to also have a positive impact on the environment.’

BRITISH car production fell for the twelfth month in a row in May, as output dropped by 15.5 per cent, according to latest figures from the SMMT. A total of 21,239 fewer units were manufactured, with demand both at home and abroad falling by double digits, as softening in the UK and key global markets and the effects of model changes caused the negative trend to continue.

During the month, manufacturing for domestic buyers fell by 25.9 per cent, while overseas orders were down by 12.6 per cent.

Exports accounted for 80.9 per cent of all cars made, re-emphasising the importance of maintaining free and frictionless trade.

In the year to date, UK car production is down 21 per cent with 557,295 new models rolling off production lines – almost 150,000 fewer compared with the same point in 2018.

Mike Hawes, SMMT chief executive, said: ‘Twelve months of decline for UK car manufacturing is a serious concern and underlines yet again the importance of securing a Brexit deal quickly. No deal is not an option.’

ACQUISITION

Greenhous buys Adams Morey THE Midlands-based Greenhous group has acquired Adams Morey, a company that runs commercial vehicle dealerships across the south of England.

Greenhous already handles the sales and servicing of Volkswagen commercial vehicles and DAF Trucks as well as Vauxhall, Ford and Nissan cars.

CarDealerMag.co.uk | 09

Dashboard.

News from around the UK

What’s been hitting the headlines on the home front? Here’s a round-up of stories SUNDERLAND

Ten millionth car rolls off production line

THE ten millionth vehicle has rolled off the production line at Nissan’s factory in Sunderland.

It has taken the plant 33 years to reach the milestone – making it the fastest car factory in the UK to hit the landmark figure.

It also means that, on average, a new car has been built in Sunderland every two minutes since production started in 1986.

If all the cars were parked nose to tail, they would stretch for more than 26,000 miles. The landmark car was a Vivid Blue Nissan Qashqai.

WEST YORKSHIRE

PETERBOROUGH

Charity match helps towards wheelchair goal MOTORPOINT has raised more than £4,000 for one of its employees by hosting a charity football match.

Staff from all 12 branches of the independent car retailer travelled to Peterborough United’s Weston Homes Stadium to take part in a Motorpoint Peterborough v Motorpoint All Stars game to raise money to pay for a new lightweight wheelchair for

ENGLAND

Bigger and better MG now three dealers after £4m investment closer to target of 120

FARNELL Land Rover has unveiled the results of a £4m investment at its dealership in Guiseley, West Yorkshire. The redevelopment, part of an ongoing investment programme by Vertu Motors, which operates the Farnell brand, has introduced a new workshop and expanded the existing showroom.

From the left in our picture are Ryan Dexter, general sales manager at the dealership, Phillipa Haigh, sales executive, and Stephen Whitaker, head of business.

10 | CarDealerMag.co.uk

MG MOTOR UK has strengthened its claim to be the fastest-growing manufacturer in the UK with new dealerships in Worcestershire, West Yorkshire and Gloucestershire.

Clarks MG in Kidderminster, above, Wakefield MG and Cinderford MG take the iconic brand ever closer to its goal of having 120 retailers operating by the end of 2020 – it currently has 96. Meanwhile, hybrid and EV standards are being rolled out across all new dealerships and retro-fitted to existing ones.

colleague Jason Brown. Jason, who has worked for Motorpoint for 19 years, has the nerve-wasting condition Dejerine-Sottas Syndrome.

The game was won 4-3 by Motorpoint Peterborough. A total of £4,380 has been raised to date and additional events are being organised to reach the £8,000 needed to buy the wheelchair.

Best-selling new cars in June June 2019

Source: SMMT

Ford Fiesta Vauxhall Corsa Mini Volkswagen Golf Ford Focus Nissan Qashqai Toyota Yaris Volkswagen Polo BMW 1 Series Mercedes-Benz A-Class

7,507 5,614 5,535 5,473 5,450 5,333 4,954 4,592 4,465 3,953

The statistics, p58

WEST LONDON

Hyundai axes plan for flagship dealership

HYUNDAI has decided not to build a flagship showroom on the Great West Road in London and to sell the site – a building known as the Alfa Laval Tower – for over £20 million.

Hyundai said the decision had been made ‘in order to focus on the improvement of business efficiencies’. The company added it had ‘163 dealers nationwide with two digital stores and the online purchasing website Click to Buy, so is well positioned in terms of its retail proposition.’

A global snapshot of dealership news.

Around the World, p34

GATESHEAD

LONDON

Ford dealership helps A pair of very special local autism charity Bentaygas created

LOOKERS is helping an autism charity get noticed in the north-east of England after creating a bespoke bright yellow Ford Mustang to spread the word. Richard Smith, above, founder of Awesometistic, is now the proud owner of the head-turning muscle car after he approached Lookers Ford Gateshead to help him increase awareness of the charity. Awesometistic provides support to those living with autism in all its forms and Richard, 35, lives with autism himself.

BENTLEY’S oldest retailer Jack Barclay and Savile Row tailor Huntsman have joined forces to create two special ‘Sportsman’ and ‘Businessman’ Bentaygas.

Both exclusive luxury cars were the result of a design collaboration between Huntsman and Bentley’s bespoke Mulliner division.

The creative partnership between the two top British brands marks the centenary year of when Bentley Motors was founded and Huntsman established its Savile Row boutique.

‘We bought a VW TL Fastback and they asked me to drive it home. When I put the plates on the car, my boss had put ‘‘Somerset – if possible’’ on the plate . . .’

James Litton, p76

INVERNESS

Dealers targeted as thieves strike twice

THE owner of a dealership near Inverness has been left ‘devastated’ after thieves stole three cars worth £70,000 from the premises.

The vehicles stolen from Culloden Car Sales were a green Ford Focus RS (pictured), a grey Range Rover Sport and a Mercedes CLA 200.

Business owner Donnie MacDonald said: ‘I am just gutted.’ The Range Rover was later recovered.

A few days later, two Audis were stolen from the Top Car dealership closer to the centre of Inverness.

WALLSEND

Porsche centre has £2.5m spent on it

A PORSCHE sales and service centre operated by JCT600 in Wallsend, North Tyneside, has undergone a £2.5m extension and refurbishment.

The project signals JCT600’s long-term commitment to the German sports car maker.

The recent work, by Caddick Construction, included the refurbishment of the existing showroom to provide capacity for 16 cars, the addition of a plush handover lounge and space for 23 approved used cars.

SOUTHAMPTON

Bridge sponsorship reinforces relationship MG MOTOR UK and Richmond Motor Group have reinforced their relationship by jointly sponsoring a well-known bridge in Hampshire.

Strategically located near Richmond’s new MG dealership in Southampton, banners on the Itchen Bridge, the busiest river crossing in the county, now carry MG branding.

Michael Nobes, founder and MD of Richmond Motor Group, said: ‘Our sponsorship of the Itchen Bridge was a huge part of our launch plan.’

Despite only opening its doors in November 2018, the Southampton branch is already one of the largest MG dealerships in the UK. The multi-brand site, including MG, covers more than six and a half acres.

First drive:

Bentley Continental

The luxury cruiser is now equipped with a V8 engine – what’s our verdict?

Forecourt, p42

CarDealerMag.co.uk | 11

NO NAME CARRIES MORE WEIGHT The future is bright for the Pick-up Professionals.

If you’re looking for a pick-up franchise, becoming a Pick-up Professional is a brilliant opportunity:

With ten awards and counting, the Isuzu D-Max is class leading. With such a strong product, it’s an exciting time for the Isuzu brand.

As the Pick-up Professionals, Isuzu are proud of their unwavering focus; manufacturing hard-working vehicles, built to go the distance, sold by a network of dealers who are truly experts in their field.

There no better time to become a Pick-up Professional, call Rebecca Lamsdale on 0121 730 8190 or email rlamsdale@isuzu.co.uk for more information.

Trade Van Driver 2018 ds awar

PICK-UP OF THE YEAR

2019

12 | CarDealerMag.co.uk

• Plug-in franchise, simple to operate • Extensive training and marketing support • Healthy margins and opportunity for growth

BEST MODEL

Dashboard.

What’s been getting dealers talking?

Feedback, p32

ACQUISITION

Richmond Motor Group adds Sparshatts sites to portfolio and eyes more R ichmond Motor Group has acquired four Sparshatts dealerships in Hampshire.

The deal, for an undisclosed sum, adds two Skoda sites, one Suzuki site and one Mitsubishi site to its portfolio, with the additional dealerships being in Fareham and Botley. The group, which has dealerships across Hampshire and Surrey, now has 12 franchise locations and a used car supermarket, covering an area from south-west London to Portsmouth and Southampton. It employs more than 500 people.

Plans for an additional four franchise locations within the next 12 months would see the Portsmouthbased group expand to 17 outlets.

The growth of Richmond has been led by entrepreneur Michael Nobes, the sole owner, founder and managing director.

Born and bred in Portsmouth, he started his career as a part-time valeter while still at school and has built the business from a single Hyundai site in 1995 to the £250m empire it is now.

Nobes said: ‘The acquisition is key to diversifying the group’s portfolio to ensure long-term resilience in a tough UK market. Despite a general downturn in the UK automotive sector, all our existing businesses have seen significant year-on-year growth, which is testament to the

Sparshatts’ Skoda and Suzuki showrooms in Fareham fantastic team of people we employ.

We intend to apply many of the Richmond cutting-edge processes to the Sparshatts business to leverage profitability and returns.’

In a joint statement, Louis Jones, managing director of Sparshatts, and Nobes said: ‘This is a deal that works for everyone. Richmond acquire the franchised businesses to diversify their portfolio of brands and it allows an exit strategy for some of the Sparshatts directors whilst allowing others to reinvest and expand in a consolidated used car business. Most importantly, all the existing staff are retained in one of the two businesses.’

Michael Nobes

THE next-generation Vauxhall Astra will be built in the UK, providing our relationship with the EU is secured post-Brexit.

Vauxhall’s owner, Groupe PSA, announced that the new hatchback will be built at the firm’s Russelsheim plant in Germany and its plant in Ellesmere Port as long as certain Brexit conditions are met.

In a statement, Groupe PSA said: ‘The decision on the allocation to the Ellesmere Port plant will be conditional on the final terms of the UK’s exit from the European Union and the acceptance of the New Vehicle Agreement, which has been negotiated with the Unite trade union.

‘This news demonstrates the continuous effort and commitment of Groupe PSA to Vauxhall Motors.’

Vauxhall is heavily reliant on Europe for trade. Its Ellesmere Port site exports 80 per cent of its production to mainland Europe.

New website is cutting edge

Michael Nobes

Mercedes-Benz customers offered 48-hour test drives Mercedes’, which uses intelligent voice recognition to control key features.

The test drives are available at participating Mercedes-Benz retailers.

Rob Halloway, marketing director of Mercedes-Benz Cars UK, said: ‘Our retailer partners offer this extended

Smooth Brexit will see new Astra made in UK

MITSUBISHI

‘The acquisition is key to diversifying the group’s portfolio to ensure long-term resilience in a tough UK market.’

MERCEDES-BENZ is offering 48-hour test drives across the range during July.

In A-Class, B-Class and CLA cars, customers can experience the allnew MBUX (Mercedes-Benz User Experience) infotainment system with a touchscreen interface and ‘Hey

VAUXHALL

test drive exclusively to our customers, and it allows them to experience one of our latest cars on their terms.’

The 48-hour test-drive initiative excludes Mercedes-AMG models, the new GLE, the new A-Class Saloon and the Marco Polo.

MITSUBISHI Motors in the UK has relaunched its consumer website with a more user-friendly and contemporary design employing cutting-edge functionality.

The new website showcases the latest corporate identity of Mitsubishi Motors Corporation and adopts a new web address: mitsubishi-motors.co.uk CarDealerMag.co.uk | 13

Dashboard.

APPOINTMENT

ANALYSIS

Eden Group wins Suzuki franchise for Stratford

Trouble at the top of struggling Pendragon ... so what does the future hold in store?

SUZUKI has appointed the Eden Motor Group to showcase the brand in the Warwickshire town of Stratford-upon-Avon.

Standing on Birmingham Road, one of the main routes leading into the town centre, the new fivecar, 2,000sq ft dealership has opened its doors to the public following an extensive refurbishment and modernisation programme.

This brings the total number of dealers within the vehicle manufacturer’s nationwide network to 161.

Suzuki is the sixth brand to be represented by the automotive retail group at its Avenue Farm premises, and the spacious showroom houses numerous stylish and affordable models from Suzuki’s current line-up.

Mike Earle, dealer principal of Eden Suzuki Stratford, said: ‘We are very pleased to have been appointed as the Suzuki dealership for Stratfordupon-Avon.’

CAZOO

New agreement with BCA signed AUTOMOTIVE start-up Cazoo has signed a longterm exclusive agreement with BCA for a dedicated vehicle preparation site in Corby, Northamptonshire.

The site for the company, which is seeking to transform how people buy used cars, will be extensively refurbished and upgraded later this year to create a market-leading preparation, processing and imaging facility.

14 | CarDealerMag.co.uk

Disappointing results, an operational review critical of past failings and the departure of a new CEO . . . turbulent times indeed. Dave Brown reports.

W

hat is going on at the troubled car dealership group Pendragon? It’s a question industry analysts have been asking a lot lately – and with good reason.

After all, the company has had a turbulent 2019 so far, with the announcement of huge losses for 2018, a warning about future profitability and a boardroom disagreement that led to new chief executive Mark Herbert leaving the company after only three months in the job.

It’s obvious not everything in the garden is rosy at the dealer group that operates the Evans Halshaw and Stratstone brands in the UK and sells used cars via its dozens of Car Store sites across Britain.

The first sign of serious difficulties came in March – with the company revealing it had suffered a pre-tax loss of £44.4 million for 2018, with revenue for the group falling 2.4 per cent to a total of £4.63 billion.

Revenue in its Car Store used car supermarket business grew by £83.6m – an increase of 38.5 per cent – while gross profit was up 42.2 per cent.

However, accounting for the impact of start-up and transformation

Trevor Finn, left, and his successor as Pendragon CEO, Mark Herbert costs, Car Store had an operating loss of £11.9 million.

Pendragon’s numbers seemed particularly poor alongside the far stronger results for Marshall Motor Group and Lookers, published at roughly the same time and reported in the April edition of Car Dealer.

News of another Pendragon loss followed – £2.8 million for the first quarter of 2019 – and the Nottinghambased company announced to the Stock Exchange that it had begun a review of its operational and financial prospects.

By this time, new chief executive

‘To have too much stock and “execution inefficiency” for a business which is building its future around used cars is clearly an issue.’

Mike Jones, chairman of profitability specialist ASE

Mark Herbert had arrived and previous CEO Trevor Finn had stepped down – but any hopes of a swift change in fortune for Pendragon were dashed when the outcome of the aforementioned review became known. It revealed that Car Store in particular was still struggling – even though there was optimistic talk of ‘significant potential for future profitable growth’.

In a nutshell, Car Store’s £11.9m losses for 2018 were set to accelerate to around £25m during 2019. The reasons? ‘Execution efficiency and the impact of excess used car stock.’

Elsewhere in the business, the review had identified ‘lower than anticipated new car margins’ and ‘increases in costs, particularly in aftersales’.

At the time, Herbert said: ‘Notwithstanding the challenging market and uncertain macro outlook,

BCA expands programme of LCV sales.

Auctions, p68

Evans Halshaw Edinburgh West – this year’s operational review called for a focus on volume, margins and cost across Pendragon’s UK motor business the expected loss for the year is still disappointing.’

He obviously wasn’t best pleased with the way Car Store was being run, saying there was a ‘need for refocus of strategy and execution’ there.

Still, there was optimism too, with talk of ‘long-term opportunities that should be pursued with vigour’.

As we now know, Herbert won’t be around to see those opportunities come to fruition as he left the company ‘by mutual consent’ at the end of June.

His departure left Martin Casha (chief operating officer) and Mark Willis (chief financial officer) leading the business on a day-to-day basis, reporting to Chris Chambers, the chairman.

So what went wrong? After clearly looking ahead to the long term, why the sudden exit? Commentators were quick to voice their opinions.

Writing in The Times, business columnist Alistair Osborne spoke of ‘hints of a strategic difference’.

Osborne said: ‘His focus [meaning Herbert’s] looked to be on sorting out the Stratstone and Evans Halshaw new car dealerships.

‘But the board is set on a used-car strategy, not least building its Car Store brand to sell second-hand

Californian JLR dealership sold PENDRAGON has offloaded one of its two Californian Jaguar Land Rover dealerships for £28.2 million.

As reported by Car Dealer in May, the company said it would be selling its Mission Viejo and Newport Beach showrooms amid a review of its operations, and in a statement issued via the London Stock Exchange, it confirmed that it had now sold the Mission Viejo dealership in line with its stated intent of disposing of its US motor group. The transaction was completed on July 1, with Lithia Motors as the buyer. US Auto Trust is set to acquire the Newport Beach outlet. motors online.’ Osborne wasn’t particularly complimentary about former chief executive Finn, incidentally, describing him as ‘the man who steered the business for 30 years, though latterly in a downward direction’. Ouch.

Analyst Sanjay Vidyarthi from the stock-broking company Liberum said that with the arrival of Herbert there was ‘a difference of view on how to fix Pendragon’ and added: ‘We remain to be convinced on the Car Store stand-alone used car strategy’. Not exactly a resounding vote of confidence.

Another expert to add his voice was Mike Jones, chairman of profitability specialist ASE, who writes a column for Car Dealer each month. He told us: ‘There has clearly been a disagreement over

strategy between the new CEO and the existing chairman of Pendragon.

‘We can glean that the chairman is keen on continuing to pursue the strategy of growing Pendragon’s used car presence. We can only assume that the new CEO was favouring a different path, or at least a slight change in tack.

‘Whatever the reason, it is surprising that this has come to a head quite so soon and wasn’t sorted out prior to the CEO’s announcement.

‘Further reasons may lie in the recently conducted financial and operational review, which was certainly not complimentary over their recent used car activity.

‘To have too much stock and “execution inefficiency” for a business which is building its

future around used cars is clearly an issue. The operational review reported “significant opportunity to optimise the performance of the core business across each of new, used and aftersales”, which gave an indication of a potential return to concentration on franchise motor retailing. However, this has clearly now passed by.’

Jones added that the loss which Pendragon is generating for the first half of the year, along with the instability at the top of the business, is having repercussions across the wider industry.

‘Lenders and investors will read the results and the change and extrapolate this to issues across the entire motor retail sector, frequently ignoring the strong results delivered by others,’ he said.

‘Whilst there are challenges which may bring about choppy waters as we move forwards, notably the FCA investigation into Lookers, retail performance has been remarkably robust given the wider economic problems general business has been facing.’

He concluded: ‘Pendragon now needs to find a new CEO who can come up with an agreed strategy with the chairman.’

Market Insight, p70 CarDealerMag.co.uk | 15

Dashboard.

Which were the top-selling LCVs in June?

Fully Loaded, p62

WHITE PAPER

TRIBUTES

Still not enough women in automotive leadership roles, says new report

Former Chrysler and Ford chief Lee Iacocca dies

by JOHN BOWMAN john@blackballmedia.co.uk

T

here are still too few people from diverse backgrounds in leadership roles in the automotive industry, according to a new White Paper.

The second annual ‘Making Diversity and Inclusion a Business Reality’ report notes that the issue of diversity and inclusion is climbing the agenda for most businesses, but that more progress is needed.

The document, produced by Auto Trader and executive search specialists Ennis & Co, tracks the diversity and inclusion (D&I) performance of many of the UK’s leading automotive retailers and manufacturers.

Featuring new research conducted by employee insight specialists Qlearsite, the White Paper reveals that 88 per cent of the automotive organisations surveyed identify D&I as a key priority – an increase from 85 per cent in 2018.

Fifty-three per cent of respondents said the need to attract and retain a greater array of skills and experiences was the main motivation for driving a D&I agenda.

Although the number is falling, seven per cent of automotive businesses said its D&I focus was to comply with legal requirements, indicating that for nearly one in 10, D&I remains a box-ticking exercise.

Rebecca Clark addresses those in attendance at the May seminar Reassuringly, the research revealed that while there is clearly room for improvement, the general perception within the industry is that D&I progress has been made over the past 12 months.

Sixty-one per cent of respondents said their progress had been ‘fair’ or ‘good’, while just over a quarter (28 per cent) felt it had been ‘very good’ or ‘excellent’.

The most pressing issues concerning D&I are around leadership, with both reports published so far indicating the industry wants more women in senior roles.

Auto Trader’s manufacturer and agency director, Rebecca Clark, said: ‘All of the data shows that retailers that represent the communities in which they serve provide a better,

‘Our report shows whilst we have some way to go, we’re making some great progress.’

Auto Trader’s manufacturer and agency director, Rebecca Clark

and more profitable, in-dealership experience for their customers.

‘As the industry rapidly evolves in terms of how people buy cars, pay for them, and the cars themselves, new skills and ways of thinking will be fundamental at every single level.

‘It’s rewarding to see recognition at such a senior level that a D&I strategy that can attract and retain the very best talent is no longer a nice-to-have, but critical to success.

‘Our report shows whilst we have some way to go, we’re making some great progress. I cannot wait to see where we’ll be in a year’s time.’

The report includes commentary and best-practice advice from a range of senior industry executives, including Daksh Gupta (CEO, Marshall Motor Group) and Mandeep Dhatt (executive director of HR, McLaren Automotive).

Around 90 HR directors, MDs and CEOs attended a seminar in May, hosted by Auto Trader and Ennis & Co.

Cazoo named as a top start-up before it’s even started!

CAR buying and rental website Cazoo has been ranked number 13 in this year’s Startups 100 list – despite not having launched yet.

The list is the longest-running annual index of its kind and ranks the 16 | CarDealerMag.co.uk

country’s top disruptive, fast-growth new businesses for qualities such as innovation and economic impact.

Cazoo, one of the best-funded new tech businesses in the UK, aims to ‘transform the way people buy used

cars’ by letting customers buy, finance or rent a used car online and have it delivered to their door in 48 hours.

It was founded in 2018 by Alex Chesterman, who also set up Zoopla and Lovefilm.

EX-CHRYSLER boss and Ford innovator Lee Iacocca has died at the age of 94 in Bel Air, California.

Iacocca put the Mustang in Ford’s line-up in the 1960s and became a corporate folk hero two decades later when he resurrected Chrysler.

He was famous for his TV ads from that time, in which he said: ‘If you can find a better car, buy it!’

He had a 32-year career at Ford and Chrysler and helped launch some of Detroit’s most significant cars, including the minivan, the Chrysler K-car and the Ford Escort.

The son of Italian immigrants, Iacocca reached a level of celebrity that was matched by very few auto moguls.

Former Chrysler executive Bud Liebler, who worked for Iacocca for a decade, said he had a largerthan-life presence that commanded attention.

The cause of Iacocca’s death was reported as complications relating to Parkinson’s disease.

VW GROUP

New customer experience boss VOLKSWAGEN Group UK has appointed Nick Ratcliffe as its customer experience director.

Ratcliffe’s career over the past three decades has seen him in lead roles with volume and premium automotive brands, as well as heading contact centre and technologybased businesses in the telecoms sector.

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Used Car Awards.

YOU could be a winner at the party of the year!

I

t’s currently the height of summer – and at the time of writing we’ve actually got blazing sunshine! – so that can only mean one thing here at Car Dealer Towers: it’s time to launch this year’s Used Car Awards.

Used cars is a sector of the industry that is growing in importance as the new car market shrinks, and the Car Dealer Used Car Awards, which are now in their eighth year, have become THE awards to win.

They recognise the best, brightest, smartest and downright nicest across the full spectrum of the trade – the veritable gold standard celebrating the finest in the business!

Make no mistake: winning a Car Dealer Used Car Award is BIG. Dealers and sponsors are proud to shout about their successes.

The event, sponsored by Black Horse, honours all the areas of this vital backbone of the motor industry. From the smaller independents to the larger groups, it’s for every dealer in the used car business.

This year, the awards are being held on Monday, November 25, and will have a fantastic theme of ‘The Goodnight Cabaret’.

We will be handing out gongs in a variety of categories and if you reach the final awards shortlist, you’ll be invited to our glittering ceremony, to be hosted by TV’s Mr Wheeler Dealer, aka Mike Brewer, at The Brewery, London. You’ll be able to enjoy a terrific meal, free drinks and – if you fancy it – lots of dancing!

Did you miss out on last year’s event? If so, you really missed something special, so don’t delay in entering this time around!

Tickets and sponsorship packages sell out fast as well, so regrettably we always have to disappoint many of you when there isn’t any space left. Don’t let that happen to you in 2019... It’s the dealers’ biggest party of the year, so make sure you’re there!

18 | CarDealerMag.co.uk

Mike Brewer will be the host

All you need to know about the awards What are they?

The Car Dealer Used Car Awards celebrate every part of the used car industry. For every new car sold in the UK, three others are used – which explains why these awards are so important.

For 2019, the awards will once again be hosted by the legend that is Mike Brewer and they’ll be held at The Brewery, Chiswell Street, London.

Tell me more about the venue The Brewery is an absolutely amazing place that oozes class and sophistication and has provided the perfect setting for the Car Dealer Used Car Awards for the past seven years.

It’s simply stunning and is the perfect venue: small enough to give an intimate feel to the evening but large enough to host a fantastic party!

When are the awards taking place?

They’re being held on Monday, November 25 – the perfect excuse for an early Christmas party that you can put on expenses!

The Brewery is the ideal place for our Used Car Awards – small enough to give an intimate feeling but big enough for a fabulous party!

What’s the running order of the night?

Guests are treated to welcome cocktails and wine. Then we take our seats for the first half of the event. Mike Brewer does his thing, followed by dinner. After that, we announce the final winners and then it’s time for dancing, courtesy of a disco.

There’s plenty of time to enjoy the evening with industry colleagues and get busy with some networking in a relaxed environment.

How do I enter?

Entry is FREE and easy. Simply go to the Car Dealer Magazine website and click on the Used

Car Awards button to fill in the online form.

Alternatively, you can enter using the form on page 20. There’s no limit to the number of categories you can enter. All we ask is that you provide as much detail as possible – make your nominations really stand out and get the judges sitting up and taking notice!

How can I sponsor an award?

There are a number of sponsorship packages. Call the team on (023) 9252 2434 for more details.

How can I book a table?

Anyone can book a table at the Used Car Awards.

Call us on (023) 9252 2434. Sponsors get tables as part of their packages, but there’s nothing to stop other suppliers to the industry taking a table to entertain clients.

Car manufacturers and dealers can come along, too – bring your staff, your customers, anyone you’d like to wine and dine.

It’s a great chance to launch the festive season in fine style – everyone’s sure to have a ball!

Tables get unlimited beer and wine from 6.30pm when the party opens. It’s an evening filled with awards, fun and laughter.

All good things come to an end, though, and at 12.30am it’s time to find your carriage.

CarDealerMag.co.uk | 19

Used Car Awards.

Are we entering again?

Hell yes – and we can’t wait for the big night this year!

I

f you have any doubts about whether it’ll be worth your while entering the Used Car Awards, listen to what one of last year’s winners had to say.

SuperMini UK picked up the trophy for ‘Used Car Dealership of the Year – Up To 50 Cars’ and company director Mat Clarke, who attended the ceremony with his partner and fellow director Stephenie Lawrence, was chuffed to bits. Reflecting on the triumph when we caught up with him a few days ago, he said: ‘It was fantastic. It was an amazing night – we had a great time.’

Asked how it felt to be a winner, he said: ‘It was a surprise – a great feeling. We were very proud.’

One of the benefits of winning a Used Car Award is that it can be used to generate publicity for your business. ‘We put it all over social media. We put it on our Instagram feed, Twitter and Facebook,’ Mat told us.

‘It just promoted to our customers and followers that we are a decent brand.’

And asked if SuperMini UK was getting involved this year, he simply said: ‘Hell yes!’

So there you have it – and entering couldn’t be easier.

You can do it in one of two ways.

Below is a nomination form that you can fill out and send to us in the post. If you want to nominate for more than one category, that’s absolutely fine – just photocopy the page however many times you need to and pop the forms in the post. The easiest way to nominate, though, is online. Go to the Car Dealer Magazine website and click on the Used Car Awards button in the Events section to fill in the online nomination form – ideal if there are a number of categories you’d like to get involved with.

The closing date is Wednesday, October 16.

Shortlists for each category will be drawn up by our panel of judges, to be chaired by Mike Brewer, with the winner and two highly commended places invited to our gala awards night – and the winners going home with a very special award indeed.

My name:......................................................................................................................................................................................

Preferred contact telephone number:.................................................................................................................................

My email address:......................................................................................................................................................................

The category/categories I’d like to enter for and nominee(s) are:............................................................................. ........................................................................................................................................................................................................ ........................................................................................................................................................................................................ ........................................................................................................................................................................................................

My reasons are: ........................................................................................................................................................................................................ ........................................................................................................................................................................................................ ........................................................................................................................................................................................................

Want to enter more categories? That’s fine – just photocopy this form. Please send your form (or forms) to UCA Nominations, Blackball Media, Haslar Marine Technology Park, Haslar Road, Gosport, Hampshire, PO12 2AG. If you’d like to send supporting information, that’s fine too. The closing date is Wednesday, October 16, 2019.

20 | CarDealerMag.co.uk

Why it’s such a great idea to get involved in sponsorship

A

s ever, award sponsors at last year’s ceremony had nothing but praise for the event. The companies that supported the gongs enjoyed the relaxed atmosphere and found it easy to network and do business on the night, as guests were in an excellent mood.

Not only does the awards night give you a fantastic opportunity to network, but as a sponsor it’s also a brilliant way to entertain your clients at the start of the Christmas festivities and to thank them for their support over the past 12 months.

Each award sponsor gets a table of 10 in their package, which is a terrific way to entertain clients or celebrate the past year’s achievements with colleagues!

Every award sponsorship package comes with the following: • •

•

• •

•

Your company logo on the winner’s trophy Your company logo placed alongside all publicity of that award in the run-up to the awards Your chance to nominate winners for the judging panel to consider for your award Table of 10 at the Used Car Awards evening Full-page advert in the results issue of Car Dealer Magazine placed next to the editorial about your award Your company logo included in web promotion of the Used Car Awards

Award categories Used Car Dealership of the Year: Up To 50 Cars

Social Media User of the Year This award will mark the achievements of a dealer that has mastered their digital direction.

We’re looking for the best dealership that stocks up to 50 used cars.

Service & Repair Outlet of the Year

Used Car Dealership of the Year: 51-100 Cars This award is for the best dealership that stocks between 51 and 100 cars.

Dealers’ Dealer of the Year

Used Car Dealership of the Year: 100+ Cars

Recognition from your peers is what makes this award extra special.

This one is for the larger dealers stocking more than 100 cars.

Best Dealership Use of Video

Used Car Dealership Group of the Year

Spotlighting dealerships that have made the best use of video technology to present their products and services.

Aimed at those with more than one site, this award marks the best used car group.

Used Car Sales Team of the Year

Used Car Supermarket of the Year

Behind every great dealership there’s a great team – and that’s who this award is for.

This award is for supermarkets that provide great cars and great service on a major scale.

Used Car Dealer Principal of the Year

Newcomer Dealership of the Year

Inquire

This award recognises the best dealership established during 2018.

Specialist Used Car Dealership of the Year

Inquire

Inquire

Honouring the best official manufacturer-backed Used Car Scheme of the Year.

Used Car of the Year This winner will be selected from the following five category winners, based on the absolute chart-topping vehicle whose value has stood the test of time against all the others.

Used Small Car of the Year Used Mid-Sized Car of the Year Used Executive Car of the Year Used Sports Car of the Year Used SUV of the Year The above five category winners will be chosen by taking into account which make and model has the best residual value in its sector after three years or 30,000 miles. These awards are something that no individual dealer can influence – it’s all about the market figures for the vehicles concerned.

Inquire

Inquire

We’re looking for DPs who absolutely excel at running a successful used car dealership.

Best Used Car Customer Care

If you sell specialist used cars, you need to have something special yourself to take this home.

Manufacturer Used Car Scheme of the Year

Inquire

We’ll be looking for the garage that excels in repairing and maintaining used cars.

Approved Dealer

Canny dealers know that cultivating a used car customer can create a punter for life – a loyal supporter who’ll return time after time.

Used Car Product of the Year

Inquire

Whether it’s a brilliant online sales portal or a clever warranty scheme, this award will celebrate the very best of suppliers.

Manufacturer Used Car Website of the Year We’re looking for interactive sites that are easily navigable and present used vehicles clearly.

Dealer Used Car Website of the Year

Inquire

Our judges will be looking for the ease of use, design and functionality of the website.

Outstanding Achievement of the Year

Inquire

Recognising the dealer or dealership personality who has achieved something truly remarkable.

Lifetime Achievement Award For this trophy, the judging panel will be looking for a big hitter in the motor industry.

Rising Star Award

Inquire

The spotlight here is on a person under 25 years old who is tipped to be one to watch in the used car sector.

CarDealerMag.co.uk | 21

22 | CarDealerMag.co.uk

The automotive industry is evolving.

The dinosaurs were one of the most successful groups of animals our world has ever known.

But, when faced with change, it spelled the end of their time.

think the sky’s the limit and take to it. After all, birds are dinosaurs too. They just evolved to fit into a transitioning world.

In the same way, automotive businesses that aren’t prepared for ecommerce and the impact it has on our industry are going to find it hard to survive.

Evolve your business alongside consumer demand with NetDirector® Auto-e. In a market where it really is survival of the fittest, it’s the only natural selection.

Evolution is the key to success. Some, when faced with change, embrace new environments. They

Embrace what comes next with NetDirector® Auto-e.

www.gforces.co.uk 01622 391 904 CarDealerMag.co.uk | 23

Dashboard.

JOBS LOST

FUND-RAISING

Financial woes force Border Cars to close

Intrepid trio’s waterbike ride for Ben tops £200k

BORDER Cars is closing with the potential loss of hundreds of jobs.

The dealership group had served Cumbria and southwest Scotland for more than 42 years but ran into financial problems.

In a statement on its website, Border Cars said it was holding a closing down sale, and it is understood that some members of staff have already received redundancy notices.

The statement said: ‘In regards to recent speculation surrounding the company, Border Cars maintains an ongoing business relationship with their funders and are currently in talks with two or three potential buyers in order to try and save as many jobs as possible.’

Owner Mike Fusco said: ‘In recent years, despite the challenging market conditions, both management and staff have worked tirelessly to maintain a profitable business. However, with ongoing rising costs, and the tough retail climate for the industry, it is with the greatest of reluctance that we are unable to continue trading.’ He thanked staff as well as customers of its six showrooms.

APPOINTMENT

New GM for Motorpoint site RICHARD Start has been appointed the new general manager for Motorpoint Birtley. The 41-year-old, who has previously worked in senior management roles within the hospitality industry, will oversee the running of the popular site in County Durham.

Motorpoint Birtley opened its doors to the public in November 2015.

24 | CarDealerMag.co.uk

The trio arrive at Boveney Lock, Windsor

T

hree automotive bosses have completed the Epic Thames Waterbike Ride, raising some £202,000 for industry charity Ben. Tim Tozer, chief executive of Allianz Partners UK & Ireland, Jon Wakefield, who was managing director of Volvo Car UK and now heads up the manufacturer’s Swedish national sales company, plus Darren Guiver, managing director of Group 1 Automotive, cycled on the River Thames from its source to London between July 4 and 7.

The Industry Leader Challenge was 171 miles long, with an average of around 12 hours cycled each day. Starting at Thames Head in Gloucestershire, it was a true test of strength, fitness and stamina.

The longest day consisted of a gruelling 13.5 hours in the saddle – from Folly Bridge in Oxford to Caversham Lock in Reading.

The trio cycled on water alongside boats and through 45 locks, using self-propelled Schiller waterbikes

by JOHN BOWMAN john@blackballmedia.co.uk

until they reached the tidal Thames at Teddington, where they continued the last leg of their journey cycling on land until they reached the finish point of the Thames Barrier. A particular highlight was cycling next to the boats at Henley Royal Regatta.

Tozer said: ‘This was such an incredible challenge – I’m so pleased I was part of it. It really was extremely epic and we’re all exhausted now, but it was worth every moment in the saddle. We saw some incredible sights, tested ourselves physically and mentally and, most importantly, raised money for our automotive industry charity. A heartfelt thank you to everyone who has donated – we couldn’t be happier!’

Guiver commented: ‘What a truly amazing event to be part of – it’s definitely something I will remember for the rest of my life! I can’t believe

‘We are in complete awe of Tim, Jon and Darren for taking on such an epic challenge.’

Matt Wigginton, business development director at Ben

I’m still smiling after 171 miles in the saddle – it was completely exhausting but an unbelievable experience.

‘Thank you so much to all who have donated and helped us – we couldn’t have done this without your support.’

Wakefield added: ‘I can’t even put into words how it felt to be part of the Epic Thames Waterbike Ride. It really was the experience of a lifetime but also the toughest thing I’ve ever done. We pushed ourselves harder than ever before to complete this and raise as much money as possible for Ben. Huge thanks to everyone who donated – your support means the world to us, to Ben and to everyone that Ben supports.’

Matt Wigginton, business development director at Ben, said: ‘We are in complete awe of Tim, Jon and Darren for taking on such an epic challenge. Cycling on water for over 10 hours a day on one of the busiest rivers in England is extremely tough!

‘We really appreciate the support from all at Volvo Car UK, Allianz Partners UK & Ireland and Group 1 Automotive. I would like to say a heartfelt thank you from everyone at Ben – you guys are all amazing!’ l Donate online at bit.ly/ILC-19

Vote NOW to rate your suppliers and manufacturers Complete the survey online at

CarDealerPower.com or via the events section on cardealermagazine.co.uk The closing date for nominations is August 16, 2019 The glittering awards night will be held on Thursday, September 26, 2019 at the Spinnaker Tower in Portsmouth

CarDealerMag.co.uk | 25

Dashboard.

NETWORK

Thirty UK Honda dealerships face axe over next three years

H

onda is planning to significantly reduce the size of its car dealership network over the next three years.

The news comes shortly after the closure of the company’s factory in Swindon, Wiltshire, was confirmed.

The manufacturer’s head of car for the UK, Phil Webb, pictured, told Car Dealer Magazine the dealer network cutback would ‘create a sustainable and independently viable business model for the future – both for Honda UK and for our retail network’.

Addressing the issue of profitability in a highly competitive new car market, he said: ‘Currently at 155 dealers and with a one per cent return on sales, the objective over the next three years is to move towards having 125 dealers and to double our return on sales.’

The thinking behind the move also involves the length of

time it takes a typical Honda buyer to reach their nearest showroom, Webb explained.

He said: ‘While there are a number of elements impacting this decision, such as changing consumer behaviours and the powertrain shift as we move towards 100 per cent electrification, the reality is that the average drive time for a new Honda retail sale is 35-40 minutes.

‘Our network is currently mapped on a 20-minute drive time. Competitor brands with similar market shares have smaller networks, generating the opportunity for a higher return for

each site. We have already made changes around our representation model with the introduction of hub, spoke and island. This has enabled significant efficiencies but we need to move this further.

‘So, in light of the above, we will be reducing the network to 125 sites over the next three years, ensuring that we are focused on doubling our return on sales for our investors.

‘Honda remains committed to the European and UK market as well as our UK dealer network and our priorities are mutual profitability and the maintenance of excellence when it comes to customer experience.’

In May, Honda confirmed plans to close its Swindon factory in 2021, with the loss of thousands of jobs.

Workers at the plant were told that following a ‘meaningful and robust’ consultation, no viable alternative had been found.

EU RULE

New EVs must emit noise below 12mph EVERY new electric vehicle must now be fitted with a noiseemitting device to alert other road users to its presence.

The European Union rule came into force following concern that vehicles without a petrol or diesel engine are too quiet, putting pedestrians, cyclists and other vulnerable road users at risk because they do not realise they are approaching.

New types of quiet electric and hybrid vehicles with four wheels must now be fitted with an Acoustic Vehicle Alert System (AVAS) which will generate a sound similar to that made by a conventional engine.

The AVAS must be activated when a vehicle is reversing or travelling below 12mph, but the driver will have the power to deactivate it in certain circumstances. Roads minister Michael Ellis said it would give pedestrians ‘added confidence’ when crossing the road.

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CarDealerMag.co.uk | 27

Dashboard.

DRIVER 1

New service for younger drivers is like ‘Amazon Prime of the car industry’ V eteran online shopping entrepreneur Tim Hammond has launched what he calls ‘the Amazon Prime of the car industry’ for young drivers.

Driver 1 operates like a giant online car vending machine, with access to more than 10,000 cars ready to be delivered in 48 hours, and like Amazon Prime, delivery is free.

The ‘vending machine’ is geared up to ‘dispense’ four-year-old Polos, Fiestas, Minis and Fiat 500s.

All cars also come with a package covering warranty, breakdown, MOT and vehicle tax.

Hammond, who made the online shopping malls for internet service providers and put the shopping cart key on Compaq PCs, said he designed the on-demand ‘click and deliver’ service for today’s younger consumers to be compatible with their mobile and digital-first lifestyles.

‘We’ve created Driver 1 to be as easy as Amazon Prime – a huge stock available for just-in-time online ordering, free home delivery and a money-back guarantee,’ he said.

‘This generation – Gen Z – of over 2.7 million young drivers under 24 are being under-served by the car industry. They no longer want old bangers that they have to work on with a Haynes manual, and they’re not eligible for and can’t afford new

car leases. There is a huge gap in the market that we can fill with Driver 1.’

He revealed that the secret to the business model was depreciation.

‘A new Polo costs £15k, but after four years it’s as low as £6k. But fouryear-old cars are so much better than they used to be and now have all the technology that young drivers want, such as Bluetooth connectivity for their music playlists.

‘So like the mobile phone sector, where Apple have found that fewer people are changing to the new handsets, the same can be said of cars, where four-year-old ones are now just as desirable as new ones but at less than half the cost.

‘This means monthly payments from as little as £96 a month.’

A partnership agreed in June with

Cox Automotive means a seamless end-to-end service from ‘click to door’ for customers.

Hammond said: ‘We’re a “customerfirst” company, building our service around the driver, not the car.

‘Our mission as a consumer champion is to make the cars more affordable by stripping out all the unnecessary steps and margins in the supply chain. In effect, it is cutting out dealerships. It also means that a car can be turned around from its first to second driver in under a week, which is almost unheard of in the leasing sector.

‘Ultimately, Driver 1 is focusing on providing first-car drivers with quality at affordable prices, aiming to make driving like a mobile phone subscription on wheels.’

ALEX F NOBLE

Dealership is recognised for EV excellence

MIDLOTHIAN Nissan dealership Alex F Noble & Son has won a coveted EV CEO Award – Nissan’s top global prize for electric vehicle performance.

The family-owned-andrun business in Straiton was one of just 25 in the world to be recognised for their exceptional EV sales and representation across the past fiscal year.

Now in its 87th year of business, it became a Nissan dealership in 2006 and in 2011 was the first dealership in Scotland to sell an allelectric family vehicle – the Nissan Leaf.

The award was presented to sales executive and EV specialist Alastair Loudon by Asako Hoshino, executive vice-president and chairwoman of Nissan’s Global EV business, at a special ceremony in Japan.

As well as receiving the trophy, he enjoyed a six-day trip to Tokyo, which included an opportunity to visit the Nissan factory at Oppama and Nissan’s Global Technical Centre.

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What’s the key to summertime sales success?

Sean Speaks, p73

‘FANTASTIC BOOST’

Some good news for UK car manufacturing: JLR confirms investment plan J aguar Land Rover is to build a range of electric cars in the UK, it has announced.

It follows speculation that a decision had been made about EV production and will safeguard thousands of jobs as well as deliver a huge boost to the industry after a series of setbacks in recent months.

Investment will be made at the firm’s factory in Castle Bromwich in the West Midlands, with other sites

and supply companies benefiting from the development.

An all-electric version of the Jaguar XJ sedan replacement will be the first new battery-powered vehicle, followed by others. The Castle Bromwich plant will close for six weeks so new equipment can be installed.

The investment follows an agreement for employees to work a four-day week as part of restructuring plans. The plant, near the M6 in Birmingham, employs around 2,500 workers and the news was confirmed to workers there as production of the current XJ came to an end.

Batteries for the new electric XJ will be made in Hams Hall, Warwickshire, while the electric motors will be manufactured at JLR’s engine plant near Wolverhampton.

Ralf Speth, pictured left, chief executive of JLR, said: ‘The future of mobility is electric, and as a visionary British company we are committed to making our next generation of zeroemission vehicles in the UK.’ He added: ‘We are co-locating

our electric vehicle manufacture, electronic drive units and battery assembly to create a powerhouse of electrification in the Midlands.’

JLR urged the government and industry to work together to bring giga-scale battery production to the UK, making the country less dependent on essential materials obtained abroad.

The government and union leaders welcomed the news as a ‘fantastic boost’ to the car industry.

Recent figures showed that UK car production fell by 15.5 per cent in May compared with the same time last year – a 12th straight month of decline, amid falling exports and a slump in the home market.

Production is down by a fifth since the start of the year, said the Society of Motor Manufacturers and Traders, which has been warning for years about the impact on the industry of a no-deal Brexit. The industry has also been hit by a series of closure and cutback announcements from car makers in recent weeks and months.

‘As a visionary British company we are committed to making our next generation of zero-emission vehicles in the UK.’ Ralf Speth, chief executive of JLR

BMW

CEO quitting ‘to pursue new endeavours’

THE boss of BMW is to quit the business.

Harald Kruger, who has been with the German car giant for more than 27 years, won’t be seeking a second term as CEO – a position he has held for four years – when it comes to an end on April 30, 2020. Discussions over a replacement will take place at a board meeting.

Kruger said: ‘The BMW Group has been my professional home for more than 27 years. After more than 10 years on the board of management, more than four of which as the CEO of the BMW Group, I would like to pursue new professional endeavours.’

Norbert Reithofer, chairman of the supervisory board, said he respected and understood the decision. During his time as chief executive, Kruger has expanded the business in America and China.

However, BMW has been slow to enhance its electric vehicle offering, with Kruger facing criticism over the rate of its early progress.

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Big Mike Our man on the inside shares his thoughts on the car business

I’ll get my spanners out if people are nice (but this girl definitely wasn’t...)

O

ne thing that always baffles me about the motor trade is people’s expectations, both of their cars and of our duty to them as vehicle retailers, repairers or similar.

My dealership is a sales outfit only, but because it’s on the site of a former service station, I do get quite a few people who turn up with faults on their vehicles and expect me to drop everything and try to fix them.

Now, if the individual concerned is polite, friendly and I’ve got nothing better to do at that point in time, I’ll happily try to help them out. Years of wanting to keep my overheads as low as possible mean I’m reasonably handy on the spanners, so if it’s something trivial, I can often help them get back on the road – but only if they’re nice. I had one young lady drive on to my forecourt last week, though, with an utter sense of entitlement. Her car was a 2005 Vauxhall Corsa 1.2 and the fault was a rattly timing chain – I knew this, because on her approach I thought someone was chasing her with a pneumatic drill. The chain was as loose as a politician’s morals, allegedly.

‘Woss up wiv my motor then?’ she inquired, in an accent somewhere between south London and Jamaica, with a little bit of Erdington thrown in – none of which was in keeping with her pale skin, shiny lipstick and tied-back peroxide blonde hair.

‘Timing chain,’ I said, bluntly.

‘Aw wassup man! I was finking like that Vauxhalls was supposed to be reliable innit?’

Turning to my car wash boy, Bradley, for some youth patois translation, I established she was questioning the dependability of her 14-year-old Corsa, which – on closer inspection – had actually covered 157,000 miles.

It’s no wonder, therefore, that the timing chain was as stretched as my belt. For a small-engined Vauxhall that clearly hadn’t seen a single service component in the past half-decade, was already beyond the average age at which a car gets scrapped and had to live with the ignominy of pound-shop wheeltrims, fluffy pink dice, go-faster stripes and a gearknob that looked like something out of a British Touring Car, it had survived pretty well.

The interior smelled of a heady mix of Beyonce perfume and Sterling menthols, but apart from that it was quite a bright little car, and one that was probably worth the £200 or so it would cost to get the timing chain done.

‘So it’s a piece of ****, right?’ came the unusual noises from behind the car. ‘Wassit gunna cost to get sorted?’

‘I’m afraid I have no idea, love, probably a couple of hundred quid,’ I replied.

‘Don’t you go giving it da ‘‘love’’ at me yo ya sexist bast***,’ came the reply, or something similar. (Bradley was unable to translate for me at this point, as he’d become transfixed by her hotpants.)

She then jumped back into her Corsa, squealed the front tyres and clattered off down the road, although I couldn’t really tell if the awful din was the timing chain or what the young people like to call ‘drum and bass’.

Irrespectively, I thought that was that. But a couple of days later, a gentleman I immediately recognised from the newspaper as the local mayor strolled on to my lot.

He was looking for a car for his daughter, who had been to my site previously and had taken a shine to a Mini Cooper I had up for sale, not least because it was the same colour as the one driven by Travie McCoy (who?) in the music video for ‘Billionaire’. This was lost on me, I admit, but Bradley was nodding sagely.

He gave it a cursory glance over, agreed on a deal there and then and we went through the paperwork, including an agreement to take a part-ex on his daughter’s old car, which was only worth £200 or so, anyway.

Imagine my surprise, then, when a couple of days later the mayor and his daughter arrived at my dealership in a very familiar-looking silver Corsa, complete with stripes and furry addenda.

‘This is the nice gentleman who told me the Corsa wasn’t well,’ she said to her father in a voice that was more Sutton Coldfield than any of the previously mentioned. ‘Thank you so much, daddy, for agreeing to let me have his Mini…’

It takes all sorts, truly does. And at this point, you’re probably expecting me to use a pay-off line asking if anyone wants a 2005 Corsa with an engine that sounds like a bottle bin being emptied, but no. It’s sold already. Young Bradley has really taken a shine to it for some reason…

‘She then jumped back into her Corsa, squealed the front tyres and clattered off down the road.’

Who is Big Mike? Well, that would be telling. What we can say is he’s had more than 40 years in the car trade so has probably forgotten more about it than we’re likely to know.

CarDealerMag.co.uk | 31

Feedback.

Your comments via email to dave@blackballmedia.co.uk

Our website at CarDealerMag.co.uk

Here’s why electric cars AFTER a pint, I have just figured out why we shouldn’t even bother worrying about EVs. Have you ever travelled in a family car with three or four youngsters and only one iPhone charger and everyone’s on 20 per cent? Let me tell you, it’s chaos! Everyone is fighting for the charger. No-one wants to run out and there isn’t enough juice to go round.

This is the exact same problem with electric cars. If the country had 50 per cent electric cars, there would be absolute carnage in built-up areas – and the cost to install all the charging points necessary would be incredible. I’m stuck at Faro Airport and that is my thought for the day.

Grantlfc81 You are dead right. Trouble is, the tree huggers will keep making noise until the infrastructure is in place. The government will find the billions from somewhere, probably with more taxes for us lot.

Dave2302 That’s quite coherent posting so far – I’d keep necking ’em and see what else comes up!

My friend works in Germany on renewables/ environmental and he told me the UK is around 15 to 20 years behind the more developed parts of Europe who are still nowhere near ready, not to mention the additional demand on the UK’s over-stressed grid, which relies too heavily on fossil fuels to make it genuinely environmentally friendly anyway. I could go on.

Once they develop interchangeable electric batteries, that will be a game-changer. That would involve every car manufacturer conforming and making cars that can run on the same battery, maybe bigger or smaller depending on the size of the car. Driver would turn up at what used to be a petrol station (now named a Tesla battery point) and for a fee, staff would unclip

Picture of the month

The road testers here at Car Dealer HQ often get to play with some weird and wonderful machines, such as the bitesize Honda Monkey bike you see above. Our CEO James couldn’t resist a quick go before it went back home; no-one was brave enough to tell him that he might be a bit tall for it… your used battery and put in a freshly charged one. Your old one would be put on charge and this process would continue until a battery finishes its usable life when it would be sent back for reconditioning.

As far as I’m concerned, if you want to be a true eco-warrior today, buy a proven seven- to 10-year-old petrol car in good nick and maintain it properly (ideally buying it off me!).

Mojo121 Most people with electric cars have somewhere to park their cars and so also somewhere to charge their cars. Nearly every car out or due out which is just battery-only (not PHEV) does around or over 200 miles.

The newer ones will only continue improving as

the batteries get more energy-dense and cheaper due to development. A minimum range of 200 miles should cover most people for nearly every journey they do in a car. The average commute is about 10 miles now, so that equates to a 20-mile round trip. When you start with a full ‘tank’ if you have charged at home this distance is nothing.

For the majority of people, a car that has 200 miles range is fine. The times when you will need to charge other than at home will be few and far between. Electric cars are the future and when it arrives it will be good for all of us. (Yes I am a Leaf owner!)

Mistermuttley Electric cars are the new king’s clothing. jason doyle motor sales I saw that all new electric cars must emit noise when travelling below 12mph for safety reasons – cue some spotty teenager making the next fortune from an app. awc1000 I’m guessing the likes of ‘npower’ etc are rubbing their hands in anticipation of home charging points for everyone? met Getting rid of internal combustion engines will not make a significant difference to the ozone layer / atmosphere. It is all just propaganda. Why should I and the millions of other petrol-headed internal combustion lovers be told we can no longer pursue our love of IC-engined cars, when there is in fact no tangible argument to support all this eco-nonsense. None of it stands up in a decent technical argument.

Electric cars are no more environmentally friendly than a modern IC petrol.

Dave2302

Top tweets Brian spotted this SsangYong Korando pick-up on our forecourt and bought it straight away! It’s going to be ideal for transporting his parachute gear to France and back! Happy motoring Brian!

Charters Citroen @ChartersCitroen Vehicle buyers are now looking to make their purchases online! ClickEngage can maximise your online enquiries, and make the sales journey for your customers as smooth as possible!

Click Dealer @ClickDealerLTD After three people died from gun violence at a California dealership, @Ford told an Alabama

32 | CarDealerMag.co.uk

dealership to stop giving away shotguns as part of a promotion. Thank you @Ford for standing up in the fight to #EndGunViolence Karen McClure @karensmcclure A wonderful day out over the weekend with our customers enjoying some clay pigeon shooting with Barbury Shooting School!

Dick Lovett @dicklovett The GT-R screamed onto the world stage in 2007, with the fastest ever lap clocked on the Nürburgring by a production car, and it hasn’t slowed down since!

Glyn Hopkin Group @GlynHopkinGroup

More and more of our readers are joining the debate – and it couldn’t be

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

won’t be a problem . . .

NEWBIE’S PLEA

I’m just starting out – any advice?

MY name is Joe. I’m 31 and have done various jobs throughout my working life like tiling, barman, car valeting and working in a lab. I’m getting made redundant in September so have a bit of cash. I’m really interested in starting out in this game and would appreciate any advice at all. I think I’m going to try to find a position in sales at a local garage to get some experience etc but am half tempted to learn what I need to online and just start on my own.

I like this forum and see that there’s lots to get through and I will also buy the digital book.

RIVERSIDE AUTOS It depends on your personal circumstances. I started at 23, two years after university and with two years’ experience as an accountant. I had never worked in the trade but had nobody else to worry about at that time, other than myself. That was 13 years ago. The gamble I took then was okay, but with a mortgage, a wife and children, I wouldn’t take it now.

Experience in a showroom may help, but it’s not going to give you the experience or the stress of going solo.

CRW

Good luck Joe. I started out two years ago with no previous car trading experience. I spent eight weeks just visiting the auction and hours researching the business and to be fair I still didn’t have an understanding of what it was really like.

What works for one trader doesn’t necessarily work for another, network with as many people as you can and learn to live the job. I work more hours now than I have ever done. I was in a fortunate position that I didn’t need to earn a fortune to live. If I am honest, if I did I probably wouldn’t still be doing it now.

This is not to say I don’t think the rewards are achievable because they certainly are, but you have to find your niche.

DBDlloyds I jumped straight in, though my business partner knew more about cars than me. It’s a learning curve, and sometimes lessons are costly. I personally would jump right in as opposed to working elsewhere. Or if you do, limit your time there. Sometimes the best learning comes from doing it yourself. tradegirl

So... how did we find June?

It was blooming dead for us!

IT’S been a while since we have had a thread like this. Thought I’d start it off as I’m having such a torrid time at the moment. Despite our stock levels actually increasing, we are selling less. How are others finding it? Do you ensure that you have a ‘good price’ or ‘low price’ and if so, does this tend to make your sales go quicker in terms of turn days? Don’t think we are doing anything differently, it’s just blooming dead!

Dealer People I know who have never been quiet are quiet. We just had a really good week which was much needed.

Mojo121 Everywhere is quiet. Go down to your local builders’ merchants – even they are struggling.

Bills are getting paid and we are still alive so enjoy it whilst it lasts.

Tony911 I quite like a quiet week, this job can be all consuming and relentless. Nice to take time off. tradex We don’t need to sell to every punter. We just to sell EVERY car.

Nick M.K.

How far do customers travel to get to you?

ON AVERAGE, obviously not taking into account walk-ons, how far do your customers come from?

Those of you who do detailed videos, do you find that people come from further away than they normally would?

I’m going to be trading from a new location, and I’m just thinking how much it’s going to affect business. I will be doing videos, not as detailed as some people’s, but I’m hoping that will mean that where people would travel from an hour away, they’d be willing to travel an hour and a half. tradegirl People will travel for the right car. I’ve had people come from Dorset (four-and-a-half hours away) for a £3k Mini!

Mikey360 Forty to 80 miles on

average, over two hours many of them. Can’t say about the videos because mine are brief but the 60-70 photos on Auto Trader make a difference.

Post a dummy ad for one car and see what the response will be like when you write ‘located in Solihull’ for example.

Nick M.K. Most an hour tops. Maybe 70 per cent. This is probably more to do with what we stock. Videos definitely help with the out-of-the area buyers, although you often have to make them watch it because they haven’t done so.

NOACROSS Don’t think it makes much difference. If someone wants your car, they will travel.

I’ve had people come from all over

the country for all different types of cars. Some people don’t mind travelling and others think half an hour is enough.

Row Majority for us are within 90 minutes but I have just sold a car that’s getting exported to Spain.

MarkTVS We roughly get 40 per cent in under 60 minutes’ travel time and 60 per cent out of that area.

Every week, we sell cars to people doing threehour-plus journeys. It’s completely dependant upon stock profile and the way you run the business in terms of reviews and online presence.

Rory RSC Depends on the car, I think. People won’t travel hundreds of miles for a Toyota Aygo as there are always plenty to choose from on their doorstep. justina3

easier to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum

The publisher reserves the right to edit submissions.

CarDealerMag.co.uk | 33

Dashboard.

Around the world Dealer news from somewhere other than here

CANADA

A MISTAKE by drug smugglers seems to be responsible for the transportation of shipments of illegal methamphetamine from Mexico to 13 Ford dealerships, reports Automotive News Canada. The authorities believe the drugs found in December 2018 and January 2019 were never intended to reach showrooms in Ontario, Quebec and New Brunswick. An ‘error’ appears to have led to the failure of the contraband being retrieved from the cars earlier in their journey north.

USA

THREE people died in a shooting at a Ford dealership in Morgan Hill, northern California, on June 25.

The gunman, who had reportedly lost his job in the parts department that day, killed the service and parts department director as well as the parts manager then turned the weapon on himself.

First responders tried to revive the victims but they were pronounced dead at the scene.

Local police sent ‘sincere condolences’ to their families.

SOUTH AFRICA

A JOHANNESBURG car dealership owner was due in court after seven stolen vehicles were found at his business premises. Police received a tip-off about the showroom, where false licence discs were reportedly being placed on cars that were sold to unsuspecting buyers. The stolen cars recovered included two Nissans and two Mercedes Benz models.

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THAILAND

AUSTRALIA

HYUNDAI has warned that a planned £1.4 billion merger between listed car dealership groups AP Eagers and Automotive Holdings will erode competition in Australia and could force smaller dealers out of the market, reports the Financial Review website. It says Hyundai is also worried the merger could drive up the costs to consumers of having their vehicles serviced and result in the enlarged entity eventually ‘cherry-picking’ the brands it wants to sell, excluding some car makers from key markets.

Hyundai is Australia’s fourth most popular new car brand and sold 94,817 vehicles last year through a network of 170 outlets, Financial Review reported.

AN ‘extraordinary dinner’ was held in Bangkok as part of the centenary celebrations of luxury British car manufacturer Bentley. The event was hosted in the British Embassy, where Katya Zavialova, Bentley manager for south-east Asia, said: ‘We celebrate the past, the present and the exciting future that lies ahead.’ Historic and new Bentleys were on display.

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Finance.

STOCK FUNDING

Yorkshire Sports & Prestige first to sign for V12 product

LENDING

Shift to used is prompting panels rethink

V

12 Vehicle Finance has signed its first dealer stock funding arrangement with Yorkshire Sports & Prestige.

The product was opened to applications just two weeks after V12 – a new proposition from Secure Trust Bank – was launched in strategic partnership with remarketing experts Aston Barclay.

The Aston Barclay Stock Funding branded plan, powered by V12 Vehicle Finance, lets dealers find and fund used cars and vans via Aston Barclay’s physical and digital auctions.

It offers a single vehicle funded value ceiling of £50,000 for the independent dealer plan and £65,000 for the franchised dealer plan. A minimum funded value of £1,500 applies and both plans offer financing for up to 120 days.

Yorkshire Sports & Prestige Ltd, trading as Direct Car Credit, based in Batley, offers quality used vehicles, many sourced from Aston Barclay.

The deal was concluded by director of Yorkshire Sports & Prestige Shane

Gardiner and V12 Vehicle Finance’s regional account manager, Jodie Waddington, at an auction held at Aston Barclay’s ‘Northern Powerhouse’ site in Wakefield, pictured above.

Gardiner said: ‘It’s great to be the first dealer on board with this innovative, new proposition.

‘I was absolutely delighted with the speed of the process from application through to approval and have been highly impressed by the levels of

communication and service to date from all in the V12 team.’

David Mercer, the managing director of V12 Vehicle Finance, said: ‘It is fantastic to welcome Shane on board as the first dealer to be utilising the Aston Barclay Stock Funding proposition, powered by V12 Vehicle Finance.

‘It’s great working with such a forward-thinking business, and I wish Shane and his team every success.’

COLLABORATION

DealTrak joins forces with Godel over fintech platform TWO tech heavyweights have joined forces to develop the next generation of a leading fintech platform.

Leeds-based DealTrak, which helps car showrooms manage the finance and insurance (F&I) side of their business, has hooked up with software engineering firm Godel Technologies.

DealTrak had more than 3.6m proposals through its platform in 2018 – representing potential transactions totalling £9.6bn. That figure is now

36 | CarDealerMag.co.uk

expected to rise by 40 per cent over the next two years. Through its partnership with Manchesterbased Godel, DealTrak says the new software will let motor dealers liaise with more customers each day and handle increased volumes of F&I transactions, which could mean a rise in sales and lower overheads.

Martin Hill, managing director of DealTrak, said: ‘This is an incredibly exciting new chapter for DealTrak.

Having seen some of the fantastic

work Godel has produced within the tech space, we believe the time is right to commence work on the next generation of the DealTrak platform.’

Paul Green, chief commercial officer at Godel, said: ‘The DealTrak platform is synonymous with the automotive F&I industry, and we’re delighted to be working with the team towards what will undoubtedly be another game-changing piece of software.’

It is scheduled for release in early 2020.

THE continuing shift from new to used car sales is prompting more franchise dealers to rethink their motor finance lending panels, says Startline.

It says there is a realisation that changing market conditions mean products being offered to consumers should better match their needs.

Chief executive Paul Burgess, pictured, said: ‘We have definitely seen numerous franchise groups realise that they need to rethink their overall motor finance proposition.

‘With the accent in the market moving increasingly on to used as the new market falters, there is quite a lot of change to manage.

‘The kind of customers they are working with are often different as a result. While some used car buyers are people who are moving over from new, others are entering a franchise dealer for the first time because of the price and age of cars now on offer.’ The outcome is that these dealers are starting to construct more flexible lending panels that meet the needs of a wider range of vehicles and customers.

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Will AI and autonomy be the future of cars or will the human touch prevail?

I

said last month that the car market was looking a bit stagnant according to data from the Society of Motor Manufacturers and Traders and the Finance and Leasing Association and that the coming holiday season may not help. This got me thinking – how will the future car market look and will it be changing soon to try to cut costs or evolve?

It’s a thought-provoking question and makes you think of all the futuristic films. Think of Back to the Future, where everything is artificial intelligence or robotic and cars can hover above other vehicles. There’s also Tron, where vehicles can’t move off a line and are stuck to a track like a magnet.

With the improvements being made in artificial intelligence and autonomous cars, who knows where we could be in 10 years’ time? I’d like to think we’ll always have a nice personal and human touch, as at the moment, we can go into our local café or pub and the staff know who we are and what we want, which is what I like, but this doesn’t suit everyone.

I’m sure there are plenty who would prefer to say: ‘Hey Siri. Order my favourite coffee from Starbucks’ while driving their car, and Siri replies: ‘Your latte is being prepared at the nearest Starbucks. Take a left at the next junction.’

If you remember the Back to the Future café scene, the TV screens are talking to Marty McFly, asking for his order. He asks for a Pepsi and voilà, a Pepsi pops up out of the counter. In my opinion, this vision is already on its way to reality – just look at McDonald’s touchscreen ordering. I can’t see it being long until it’s done by voice without staff and served to the

customer like a vending machine. Now let’s look at car sales in more depth... Currently in America there is a company called Carvana, an online used car retailer. You can search for vehicles, buy them online, finance them and also sell and/or trade in your current car.

Once you have purchased your vehicle, Carvana gives customers two options: vehicles can be delivered to them, or they can choose to pick them up at what it calls ‘car vending machines’, of which it currently has 18.

This is where it gets different and fun...

I was surprised that like any vending machine, these also take coins – a large Carvana token to be precise (just for show – they still have a meet-and-greet attendant).

You drop the coin in the slot and the machine grabs your car from one of the five levels and places it in an area for you to pick up. Each car has a seven-day test drive, and customers can return it for any reason within that time frame – because, obviously, you can’t testdrive them when they’re in a vending machine.

But what about further into the future? Will we be forced to stick to the ground as in Tron, using magnets or something? Or maybe all the cars will be autonomous, where there are no drivers and everyone needs to go at one speed and you can never be in a rush or take your time. I can’t see this happening, because if this is the case, it will kill the requirement of supercars for use on the roads and destroy a high number of businesses.

I still like the idea of hoverboards and hovercraft, where we have numerous levels of lanes and can go anywhere. But with health and safety needs, I can’t see this ever happening.

‘You drop the coin in the slot and the machine grabs your car from one of the five levels and places it in an area for you.’

Ben Garside is marketing manager for First Response. Call him on 07817 518739 or email ben.garside@frfl.co.uk

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CarDealerMag.co.uk | 37

Dealfinder.

Finance.

YOUR ESSENTIAL GUIDE TO SPORTY-LOOKING SUPERMINIS

Skoda Fabia Monte Carlo

Nissan Micra N-Sport

SKODA no longer offers the vRS hot hatch version of the Skoda Fabia, so buyers are left with the Monte Carlo grade as the sporty-looking derivative.

This trim level boasts 17-inch alloy wheels and a gloss black styling kit, which includes a larger rear spoiler and rear diffuser.

We’ve paired it with the Fabia’s most powerful engine – a 113bhp turbocharged petrol engine. Sure, it’s hardly a hot hatch, but it delivers all the punch most drivers will be looking for.

Skoda is currently offering a £2,000 deposit contribution, to which the customer adds £2,150 followed by 35 monthly payments of £235.63, totalling £10,397.05. Should they wish to buy their Fabia, a final payment of £6,910.20 can be made, as well as a £10 fee. This brings the overall amount payable by the customer to £17,317.25, saving £517.75 on the £17,835 cash price.

NISSAN injected some extra flair into its Micra range last year by introducing a stylish new N-Sport grade to its supermini.

Its sportiness is predominantly cosmetic, such as 17-inch carbon-look alloy wheels and revised mirror caps. The engine selected is a 1.0-litre turbocharged petrol, which produces 99bhp.

A £2,000 deposit contribution is offered by Nissan, to which the customer adds £2,085. This is then followed by 36 monthly payments of £227, which brings the total payable at the end of the three-year term to £10,257.

If they choose to buy the N-Sport, a sum of £6,776 can be paid, which makes the overall amount handed over by the customer £17,033. Because of the low 4.99 per cent APR rate and Nissan’s generous deposit contribution, this deal works out £467 cheaper than the £17,500 cash price.

RECOGNITION

Blue Motor Finance joins LSE’s list of inspiring companies B lue Motor Finance has been recognised by the London Stock Exchange as one of Britain’s most inspiring companies.

It follows the fintech firm’s triumph in March when it was ranked first in the FT 1000 list of Europe’s fastest-growing companies – leaping from 21st position and knocking Deliveroo off the top spot.

The LSE report, which lists the company as Blue Auto Holdings Ltd, profiles 1,000 small and medium-sized enterprises that are growing quickly or making an otherwise positive impact on society. Companies in past editions include Just Eat, Mulberry and Raspberry Pi maker Frontier Developments.

Blue Motor Finance co-founder and chief

38 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

operating officer Chris Jones, pictured, said: ‘We are proud of the success Blue Motor Finance has enjoyed at such an early stage of our development.

‘By focusing on providing the best possible service and leveraging cutting-edge technologies, we’ve seen remarkable growth. It’s great to see the industry recognising the vast market opportunity that exists in disrupting car finance.’

The 1000 Companies To Inspire Britain listing is an annual celebration of the UK’s most exciting and dynamic businesses. Organisations across a number of sectors and with revenue between £6m and £250m are assessed based on their compound

annual growth rate relative to the sector average.

The launch of the report in London was due to be followed by a nationwide roadshow, travelling via Bristol, Birmingham and Manchester, with the LSE’s selected entrepreneurs sharing with aspiring founders their advice and key lessons they have learnt.

Blue Motor Finance, based in Sevenoaks, was established four years ago and has doubled its lending year on year, said chief executive Bob Jones, to lend more than £1bn.

It works with 3,700 dealers, reaching more than 100,000 customers, and now employs 200 people,

IN ASSOCIATION WITH

DID YOU KNOW THAT YOU CAN PROPOSE TO US

Ford Fiesta ST-Line THIS trim level offers a lookalike to the Fiesta ST hot hatch – but minus the price or performance. Styling changes include smart 17-inch grey alloy wheels and a large body-coloured rear spoiler.

The interior also features a flat-bottomed steering wheel, front sports seats and alloy pedals. Ford’s popular turbocharged 1.0-litre 99bhp EcoBoost petrol engine is our choice here.

Customers can benefit from a £1,000 deposit contribution, to which they then add £2,110. This is followed by 36 monthly instalments of £218.25, totalling £9,967 at the end of the three-year contract.

Should they decide to buy their Fiesta, a final payment of £6,653 can be paid – making the customer’s overall amount £16,620.

Thanks to Ford’s deposit contribution as well as the zero per cent APR, this makes the Fiesta ST-Line a whole £1,000 cheaper than the £17,620 cash price.

DEAL

FLA

Northridge Finance signs exclusive UK agreement with SsangYong Motors

Consumer car finance market registers drop

ASSET finance house Northridge Finance has signed an exclusive agreement to provide products to customers across SsangYong’s UK dealer network.

The new arrangement will trade as SsangYong Financial Services.

Nick Laird, managing director of SsangYong Motors UK, said: ‘We are delighted to have appointed Northridge after a rigorous selection process.

‘Working with Northridge, who have a similar working ethos, will support the growth of our business and help our dealers fund their inventory, while giving SsangYong customers the opportunity to obtain retail financing through a trusted company.’

James McGee, managing director of Northridge, said: ‘We are delighted to have secured a partnership with the SsangYong franchise.

‘We see the SsangYong brand gaining increased traction over the coming years, and we will play a major part in making sure that this happens.’

POINT-OF-SALE consumer car finance new business volumes fell by three per cent in May compared with the same month in the previous year, according to latest figures from the Finance & Leasing Association.

The value of new business fell by one per cent to £3.2bn over the same period. New business in the POS consumer new car finance market fell one per cent by value and four per cent by volume in May, compared with the same month in 2018.

The value of POS consumer used car finance new business in May was a similar level to the same month in 2018 at £1.6bn, while new business volumes fell by three per cent.

Geraldine Kilkelly, FLA head of research and chief economist, said: ‘We continue to expect broadly stable new business volumes in 2019 as a whole.’

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Forecourt.

FIRST DRIVE THE KNOWLEDGE

Renault Clio The French manufacturer's popular supermini has been due an update to keep up with increasing numbers of competitors. Jack Evans tested the new model.

What is it?

When it comes to household names, the Renault Clio is up there.

Providing value for money to the masses for many years, it’s been the go-to option for those who want low running costs from their zero-frills compact hatch. In fact, it’s been around for 30 years. Now it’s time for a new one – and we travelled to Portugal to put it through its paces.

99bhp and 160Nm of torque.

Renault claims that it’ll return 64mpg while emitting just 100g/km of CO2.

Performance-wise, it’ll whip the Clio up to 60mph in 11.5 seconds, before allowing it to reach a top speed of 117mph. Here, power is sent to the front wheels via a fivespeed gearbox – a six-speed is only available on the Blue dCi 85 diesel.

What’s new?

What’s it like to drive?

One of the biggest changes on the new Clio is its adoption of Renault’s scalable CMF-B platform, which, the manufacturer claims, allows for more interior space as well as uprated safety levels. It also supports an electrified powertrain, and although one isn’t available yet, Renault states that a hybrid will be on the market in 2021.

And of course the Clio is available with a range of all-new petrol engines, as well as a new diesel unit.

A new RS Line trim has been added to the line-up of specifications too, giving buyers a sportier, more dynamic-looking option.

The new Clio is, in fact, a smaller car than the one it replaces – but Renault has worked hard to add space inside, as we’ve said.

The Clio has historically been a bit of a multi-tool, adept both around town and on the open road too. We’d argue that this latest version has become even more accomplished in both areas than the car it replaces. The steering is light enough at slow speeds to make the car nimble, while on the motorway it’s impressively refined and quiet.

What’s under the bonnet?

Our test car used an all-new engine for the Clio: the 1.0 TCe 100. It’s a three-cylinder petrol designed with efficiency in mind, yet still produces

How does it look?

This new Clio is a decent evolution over the previous generation.

The newly designed headlights and tail lights give it a sleeker appearance, while a variety of chrome accents help to give it a more premium look.

It looks best in livelier colours, which help the Clio to stand out a bit. It’s certainly not a groundbreaking look over the car it replaces – and in truth, the main profile of the car remains quite similar – but it’s enough of a refresh to keep the Clio in line with rivals.

What’s it like inside?

It’s in the cabin where things have been changed the most. The new infotainment screen (we had the upgraded 9.3-inch unit in our test car) dominates the interior, and it’s a huge step up over the older system in terms of ease of use and overall functionality. In fact, the cabin itself is a monumental leap forward compared with the old Clio.

You can tell that Renault has pushed hard to increase the overall quality of the cabin too. Premium plastics have been used throughout, and a knurled effect has been applied to often-touched areas such as the window switches and steering-wheel-mounted stalks.

What’s the spec like?

The new Clio benefits from a raft of new equipment. The standard infotainment offering is centred around a seven-inch screen housing media and satellite navigation functions, as well as Apple CarPlay and Android Auto. Upgraded systems get a larger 9.3-inch screen.

The way the screen is controlled has been changed over the old Clio too. Using what Renault calls a ‘smartphone-inspired’ system, it’s been simplified to make it far easier to use. It’s a 4G connected service too, which means it’ll consistently update to ensure that the latest version is installed. Full LED headlights are now standard across the range as well.

Model: Renault Clio TCe 100 Price (as tested): £14,500 Engine: 1.0-litre turbocharged

three-cylinder petrol Power: 99bhp Torque: 160Nm Max speed: 117mph 0-60mph: 11.5 seconds MPG: 64 Emissions (CO2): 100g/km TARGET BUYERS: Those wanting a zero-hassle new hatchback.

THE RIVALS: Ford Fiesta, Peugeot 208, Suzuki Swift.

KEY SELLING POINTS: 1. Low running costs.

2. Well-appointed cabin.

3. Very refined.

DEAL CLINCHER: The Clio is back on form, and more than a match for current rivals.

What do the press think?

Top Gear said the interior had improved by ‘leaps and bounds’ while the Irish Times said that ‘the steering and handling feel a touch too removed from the action’.

What do we think?

The old Clio was definitely in need of an update. Fortunately, this latest model more than lives up to the challenge, thanks to its refined drive and upmarket cabin. We’d argue that the designers could have been a bit more radical with the exterior, but apart from that, this is a well-accomplished hatchback, with grown-up driving characteristics befitting cars twice its size.

CarDealerMag.co.uk | 41

Forecourt.

Lots of torque

FIRST DRIVE

The Continental GT produces a massive 770Nm.

Bentley Continental GT V8 Coupe Bentley’s Continental GT is the go-to longdistance luxury cruiser. Now with a V8 engine, can it also be a nimble and agile sports car?

Jack Evans put it to the test in California.

What is it?

The Bentley Continental GT has long been the default choice in the luxurious grand tourer segment. And while the top-notch W12 has been retained on the new Conti, we haven’t yet seen a V8 option carried over from the older car to the new.

That’s until now. Crewe-based Bentley has introduced a 4.0-litre twin-turbocharged V8 engine into the Continental, promising a reduction in overall weight without any decrease in outright performance. The W12 is still available, mind you.

What’s new?

As mentioned, the biggest difference here is that engine. We’ll get to it in closer detail a little later, but for now the major changes elsewhere are subtle. There are V8 badges on the car’s flanks, while Bentley’s Dynamic ride that’s standard-fit on the W12 is now an optional extra.

It’s packed with safety tech, such as active lane assist and traffic jam assist, while retaining that all-important sense of occasion that you get with a Bentley. The interior is hand-finished, and a new revolving infotainment screen adds a sense of theatre to the cabin.

What’s under the bonnet?

Under the Bentley’s long, sweeping bonnet is where the biggest change lies. The new 4.0-litre twin-turbocharged V8 produces 542bhp and a hefty 770Nm of torque.

It means that the Continental GT is good for a 0-60mph dash in 3.9 seconds, as well as a 198mph top speed. They’re impressive figures for what is still a large car.

It’s down to placing the turbochargers inside the ‘V’ of the engine for better response, as well 42 | CarDealerMag.co.uk

‘The V8 is almost fighter plane-loud in its aural assault on your ears.’ as the car’s all-wheel-drive system. Power is, incidentally, sent to these four wheels through an eight-speed dual-clutch gearbox.

The engine has been placed further back than before to help with the car’s balance, while threechamber air springs deliver the best possible ride, as well as giving the driver the ability to firm them up for more ‘spirited’ driving.

What’s it like to drive?

Look at the Continental GT and, upon first impressions, you’d argue that its sheer size

would be a limiting factor. In truth, around town its bulk does obstruct you slightly, with that long bonnet and low-slung driving position meaning low-speed manoeuvres take a little more effort.

It’s what you’d expect from a car like this, though.

But it’s with increased speed where the Bentley manages to disguise its size so well. Turn-in is brilliantly sharp, and thanks to both the wealth of torque at your disposal and the all-wheel-drive system, you can pin the throttle at the corner’s exit and find it dragging itself out with brutish force. Even sharper corners feel no match for it, and then when you’re done seeing

Transmission

Power is sent to all four wheels through an eightspeed, dual-clutch automatic gearbox.

THE KNOWLEDGE Model:

Bentley Continental GT V8 Price as tested: £148,100 Engine: 4.0-litre V8 Power: 542bhp Torque: 770Nm Max speed (limited): 198mph 0-60mph: 3.9 seconds MPG: Not available Emissions (CO2): Not available TARGET BUYERS: Those who want superb cross-continent performance, but plenty of agility in the bends too.

THE RIVALS: Aston Martin DB11, Mercedes S-Class Coupe, Porsche 911.

Suspension

The big Bentley sits on three-chamber air suspension.

where its limits lie, it’ll settle down to a cruise in typical Bentley fashion.

It’s when you pick up the pace that things change elsewhere too. The V8 is almost fighter plane-loud in its aural assault on your ears, bellowing and crackling – it’s full of character.

How does it look?

The new Continental GT is a well-rounded advance on the older car in terms of looks.

It’s impressive, that’s for sure, and during our time in California it caused many a head to turn and smartphone snap. The bold front headlights sit either side of a now even larger front grille, while sharp cuts help keep things interesting on the flanks.

What’s it like inside?

The interior of the Continental GT has been superbly finished, with high-quality leather meeting metal vents and glossy trim pieces.

Ergonomically, it’s spot on too.

Does it feel worthy of its £148,000 base price?

For sure. There are plenty of knurled controls, and the buttons have a solid feeling to them too.

Our only real issue comes from the passenger’s seat. There’s no real padding on the side closest to the driver, and a lack of grab handle near the gearstick (as you’ll find on a variety of sports cars) or in the traditional position above the window means your legs can quite often bash into the main tunnel when cornering hard. It’s a small niggle, we’ll admit, but it’s a niggle all the same.

What’s the spec like?

The biggest change to the latest generation of Continental GT is the inclusion of a 12.3-inch central touchscreen. It houses satellite navigation, media functions and Apple CarPlay smartphone connectivity too. The infotainment was a weak point for the older Continental, but this is a far better system, thanks to an easy-to-navigate layout and responsive screen.

And if that wasn’t enough, it rotates. Press a button and the screen turns to reveal a set of analogue dials, or do without completely and

KEY SELLING POINTS: 1. Brutish performance.

2. Imposing looks.

3. High-quality interior.

DEAL CLINCHER: The V8 transforms the Continental GT experience – in a good way. leave a clean piece of wood trim there instead.

It allows you to declutter the cabin and it works well. It’s a little pricey, however – tick the box and you’ll find an additional £4,770 on the car’s price.

What do the press think?

Autoblog said driving this car ‘is not unlike that trick of yanking the cloth out from under a fully set table’. Autocar said: ‘There is no doubt that this is the best-handling, most enjoyable Bentley of the modern era.’

What do we think?

The Continental GT is, as the name suggests, a grand tourer first and foremost. But this V8 version goes further than that. The weight shed by swapping the W12 for the V8 gives it genuine agility in the corners, while the engine’s refinement means it’s still got that cross-country ability you want from a car of this type.

Although many would see the W12 as the ‘top’ engine and therefore the go-to option, we’d argue the opposite is the case.

CarDealerMag.co.uk | 43

Forecourt.

Character

The engine is boosty and the exhaust note sounds great,

Ford’s Focus ST is back, but has it arrived with a bang?

Darren Cassey headed to Nice to find out…

What is it?

Whenever there’s a new Fast Ford, it’s a pretty big deal. Particularly in the UK, hot versions of the Blue Oval’s regular models have captured the imaginations of car enthusiasts for generations.

Although most will hark back to bewinged Cosworths tearing up rally stages, these days there are also more sensible, usable performance Fords.

These models tend to wear the ST badge, signifying a go-faster car that’s not quite as wild as those that wear the RS moniker.

The Fiesta ST has long been the hot supermini standard-bearer, but while the Focus ST has earned a cult following, it tends to struggle to beat the best in the hot hatch segment.

Can this new model finally take the fight to the big boys? At circa £30,000, it really has to.

FIRST DRIVE

What’s new?

It seems that Ford is fed up with being the alternative option – as in the ‘yeah it’s flawed but it’s less expensive than the best hot hatches’ choice – because this new Focus ST has been sent to battle with some big guns in its arsenal.

The engine is a detuned version of that found in the previous-generation RS and current Mustang, it finally gets an electronically controlled limited-slip differential (eLSD) to control power through the front wheels, and there’s rev matching on downshifts, new drive modes plus ST-specific suspension and steering.

On paper, then, it’s a serious bit of kit.

What’s under the bonnet?

The ST gets its own version of the now-familiar 2.3-litre EcoBoost four-cylinder engine that has served Ford Performance so well. With 276bhp, it’s the most powerful Focus ST ever and is about 30bhp up on the old one.

What’s perhaps even more impressive is 420Nm of torque – that LSD had better work, then. That figure is available in the middle of the rev range, while peak power is higher at 5,500rpm. The result is that putting your foot down even at lower revs gives a punchy response, but if you’re not in the mood for full banshee mode you can short shift and still feel a kick.

There’s also a diesel for those who are less fussed by hard-charging performance and want lower running costs. The 2.0-litre unit makes 187bhp and promises about 59mpg, although we haven’t tested it here.

44 | CarDealerMag.co.uk

Ford Focus ST What’s it like to drive?

So it’s looking good on paper, but what about Tarmac? Well, here’s the good news for your customers who are Fast Ford fans: it’s brilliant.

Not perfect, but in a whole new league compared with the old one. Even in the tightest of corners, the eLSD manages power output to smoothly but rapidly shunt you out of corners, with the front wheels occasionally skipping across the rough Tarmac to let you know you’re on the limit before you step over it. Lift off and you’re brought right back in line.

The engine is boosty and the exhaust note sounds great, the steering is super-direct, the brakes are superb, and the body stays in control even when you’re pulling off a chain of highspeed switchbacks. This is more RS than ST. One thing to note, though, is that in Sport mode, the occasional bumpy section of road could unsettle the car. The exhilarating and picturesque Route Napoleon in the south of France, where the launch took place, isn’t the smoothest Tarmac, but there are signs the suspension could struggle

more on Britain’s broken roads. That said, in Normal the ride is impressively comfortable and could be any more mundane Focus. (Which is intended as a compliment.)

How does it look?

There tend to be two ends to the hot hatch spectrum. You can either go subtle and subdued like the Volkswagen Golf GTI, or more Fast and Furious wannabe like the Honda Civic Type R. The Ford definitely leans towards the Golf’s ethos, looking more like a sporty family car.

That said, the standard car is already quite handsome, and with more angular bumpers, twin exhaust exhausts and bigger alloy wheels, the ST turns the temperature up just enough to match its performance.

If you like your hot hatches lairy, though, you might want to wait for the RS.

What’s it like inside?

Again, subtlety is the order of the day. Aside from a few ST badges and some fake carbon-fibre trim,

Interior

The Recaro bucket seats are a stand-out feature.

THE KNOWLEDGE Model: Ford Focus ST Price (as tested): £31,995 Engine: 2.3-litre four-cylinder turbo Power: 276bhp Torque: 420Nm Max speed (limited): 155mph 0-60mph: 5.5 seconds MPG (combined): 35.7 Emissions (CO2): 179 TARGET BUYERS: Those who want practicality and performance without shouting about it.

THE RIVALS: Hyundai i30 N, Honda Civic Type R, Volkswagen Golf GTI.

Design

You get the sporty bodywork you’d expect from a hot hatch.

you really could be in any other Focus. Are you starting to notice a trend here? This will appeal to some, who want their hot hatch to blend into everyday life seamlessly. However, wanting something more special from your £30k Focus is also a justified viewpoint.

The stand-out feature of the interior, though, is the Recaro bucket seats. They’re brilliantly judged, offering enough side bolstering to keep you in place in corners without getting in the way when

you’re changing gear. As always with Ford, the driving position is spot-on, too.

What’s the spec like?

As you might expect from a £30,000 Focus, the ST is well equipped. On the outside, you get all the sporty bodywork you’d expect from a hot hatch, while inside, those bucket seats are a welcome addition. On-board equipment includes selectable drive modes, adaptive cruise control, a B&O sound system, wireless charging and an eight-inch touchscreen infotainment system.

Keen drivers should also tick the performance pack option, which adds a Track driving mode, rev matching on downshifts, launch

KEY SELLING POINTS: 1. Practicality and performance.

2. Subtler styling than some rivals.

3. Genuinely calm and comfortable in normal driving.

DEAL CLINCHER: The fact it’s so good on a B-road but can fall into a sedate family car at the push of a button. control and a shift indicator light. Having tested this option extensively, we would say it really enhances the experience.

What do the press think?

Car Throttle said: ‘The good stuff outweighs the bad by a big margin.’ Pistonheads said: ‘There are clearly some very good bits about this ST.’

What do we think?

If you tried the old model and were somewhat underwhelmed, have a go in this one – you’ll be pleasantly surprised. If you owned and loved the old one, this new one will blow your mind.

Ford has pulled off a big win here at a time when the hot hatch market has never been better, but the established benchmark models have been around a while.

The new Ford Focus ST has a price to rival some of the best in class, and fortunately, with the help of some impressive technological upgrades, it’s able to call itself a genuine on-road rival.

CarDealerMag.co.uk | 45

Forecourt.

Top tech

FIRST DRIVE

The Passat is the first VW to get the firm’s new semiautonomous driver aid called Travel Assist.

Volkswagen Passat GTE Volkswagen has updated its plug-in hybrid with a bigger battery. Darren Cassey heads to Frankfurt to give it a go.

What is it?

The Passat GTE is the petrol-electric plug-in hybrid version of Volkswagen’s hugely popular executive car. If you know the German firm’s nomenclature well, you might be excited by the prospect of sportiness thanks to those GT letters, but don’t get your hopes up – this is a sedate, laid-back car best employed racking up effortless motorway miles.

That makes it perfectly suited to this segment, though, with almost 78 per cent of sales expected to go to company car fleets.

This GTE model will be mighty appealing, then, because its low emissions make it favourable to business buyers. As such, VW reckons it’ll make up a quarter of sales.

What’s new?

This being a mid-life facelift, in terms of overall updates to the Passat, it’s a case of evolution over revolution. There are updated engines and minor styling tweaks, and the Passat is the first VW to get the firm’s new semi-autonomous driver aid called Travel Assist.

It’s great for stop/start traffic in particular, but while it works fine at speed, it’s some way behind similar systems used by the likes of Audi and Mercedes.

The big news, though, is this plug-in hybrid model. While it uses the same petrol engine as before, the battery has a larger capacity, which means it can travel further on EV power and potentially offer economy improvements.

46 | CarDealerMag.co.uk

‘There’s loads of space for both front and rear passengers and build quality is excellent.’

What’s under the bonnet?

The hybrid system is made up of a battery and electric motor that combine with the 1.4-litre petrol engine to make 215bhp. Few other technical figures have been released, but it’s a sprightly set-up that feels pretty quick, while also settling into a relaxed cruise when necessary.

Volkswagen has revealed one important figure, though, and that relates to the battery. It’s 31 per cent bigger than before with a capacity of 13 kWh, so it can travel further on pure electric.

Its range is 34 miles on the new WLTP test cycle – for perspective, it would be 43 miles on the old test, up from 31.

What’s it like to drive?

We’ve become so used to driving these electrified models that the biggest compliment we can pay the GTE is that it’s wholly unremarkable to drive.

In fact, after driving the petrol and diesel engine versions, hopping in the GTE makes for a quieter, more refined experience, with its electric motors providing great response at lower speeds.

Around town, this makes it ideal, as despite its size, it’s easy to nip around in traffic and makes navigating traffic more serene. You can also switch between pure electric or full-power hybrid modes at the touch of a button, or let the car juggle the mix as it sees fit. If you have a destination plugged into the sat nav, it’ll even look at your journey to figure out how to best use battery power to maximise economy.

However, it’s not totally perfect – the brake pedal has inconsistent travel depending on the amount of battery regeneration, while the petrol engine is quite an old unit that’s not the quietest.

How does it look?

The Volkswagen Passat is pitching itself as a premium executive car, hoping to nudge its way into the sights of Audi and Mercedes-Benz owners, rather than more mainstream options such as the Mazda 6 and Ford Mondeo.

Gone is the dubious it-has-GT-in-the-name-it’ssporty-honest styling of early electrified VWs, and in its place is a much less exciting but perhaps

Exterior

Sharp, simple lines give off an air of sophistication.

THE KNOWLEDGE Mode as tested: Volkswagen Passat Estate GTE Price as tested: TBC Engine: 1.4-litre four-cylinder petrol plus electric motor Power: 215bhp Torque: TBC Max speed: TBC 0-60mph: TBC MPG: TBC Emissions (CO2): TBC TARGET BUYERS: Predominantly marketed at fleet buyers, but also useful for eco-conscious families.

THE RIVALS: Audi A4, Mercedes-Benz C-Class, BMW 3 Series.

Interior

Styling is modern and soft-touch materials are used throughout.

more suitable exterior styling pack. It’s largely successful, with sharp, simple lines giving off an air of sophistication without trying too hard to shout about its eco credentials. In fact, if you didn’t notice the badging, you’d be hard-pressed to tell it apart from its more-polluting siblings.

What’s it like inside?

Inside, it’s the same no-frills look as the outside. It does a good job of hanging on to the coat tails of more premium rivals, with modern styling and soft-touch materials used throughout, but there are a few cheaper-feeling items dotted throughout that mean it’s just not quite up there with the best.

It’s not far behind, though, and the Passat’s interior wins plenty of points in important places.

For example, there’s loads of space for both front and rear passengers, build quality is excellent, and the latest infotainment system is one of the best out there.

There really are few complaints to be had here, especially when you consider that the (as-yet

unconfirmed) starting price will be less than for the outgoing model.

What’s the spec like?

UK specifications have not yet been revealed, but the generic European trim levels we’ve seen indicate that everything other than the very base model should be well-equipped. With the GTE having its own specific trim level and being a touch more expensive than standard cars, all GTEs should have plenty of kit.

What we do know is that Travel Assist, the basic semi-autonomous driving aid, will be standard on all trim levels, as is smartphone integration, LED headlights and taillights and safety equipment such as front collision assist. European GTE models get an upgraded infotainment system, three-zone climate control and a leather steering wheel, so expect similar details in the UK.

What do the press think?

Auto Express said: ‘It is most definitely a good

KEY SELLING POINTS: 1. Low emissions make it company car driver friendly.

2. Plenty of space inside.

3. High-quality interior.

DEAL CLINCHER: Marries a premium interior and excellent practicality to low running costs and ecofriendly image. thing that the facelifted 2019 Passat’s sturdy yet sharply pressed lines are virtually untouched, and the engine range is similarly the same, but better.’

Autocar said: ‘On outright handling dynamism at least, there still isn’t a great deal of depth or purpose to unearth in this car – although there’s certainly more than enough grip, body control and agility to allow you to enjoy a brisk stride on a flowing road.’

What do we think?

Since its introduction in the 70s, the Passat has sold more than 30 million units. Although its popularity is waning because everyone’s buying SUVs these days, this updated plug-in hybrid makes a compelling case for the executive car.

Brake pedal inconsistencies aside, the Passat GTE is fantastic to drive, incredibly economical if you can keep the batteries topped up, and there’s loads of space. Particularly for company car buyers, the low benefit-in-kind will be hugely appealing. Fortunately, being kind to your wallet doesn’t mean compromising on quality.

CarDealerMag.co.uk | 47

Feature.

Car firms look out:

The disruptors are coming Amazon, Google, Apple and Dyson are all vying to shake things up big time in the car industry, writes James Baggott.

C

ar manufacturers invest billions every year in search of the next big thing. From the latest electric car tech to autonomous driving, armies of engineers are beavering away across the globe in an attempt to keep car firms ahead of the curve.

But are they fighting a losing battle? If some commentators are to be believed, it’s only a matter of time before a new wave of disruptors charge into the automotive world and clear up.

Circling the industry like a flock of vultures are digital specialists looking to turn motoring on its head. Depending on where you look, exactly which firm it’ll be is unclear.

Some think Apple’s car ambitions are an itch the money-making monolith is desperate to scratch. Elsewhere, Google and Amazon are dipping their respective toes into the global car market by way of launches or investments.

Meanwhile, air-sucking specialist Dyson is furiously working away on an entry into the electric car market, and only a fool would bet against the fact many others are likely plotting the demise of the traditional OEM too.

In a poll of 2,000 DriveTribe.com users, Google was by far the favourite to parachute into the car industry and shake things up, with 41 per cent betting the search giant will be the biggest disruptor. And they could well be right.

SEARCH GIANT

It might seem like a strange step for a search engine to want to own a slice of the car industry, but it actually makes a lot of sense. Researchers think that if the firm can understand where consumers are heading in their cars, there’s a substantial revenue opportunity to be had.

Google became the giant it is by secondguessing what we want to buy online and serving us up relevant adverts. Just imagine if it knew 48 | CarDealerMag.co.uk

exactly where you were heading in your car and could then sway your retail destination choice with the right targeted advert. Powerful stuff.

According to Forbes, some 95 per cent of car journeys are made with intent – and if Google can figure out what that intent is, it thinks there could be a whole new pot of gold to be had.

How Google will sweep in remains to be seen.

It could be by supercharging its Android Auto software in cars, something that it is already gaining great traction with, but more likely it’ll be with the firm’s self-driving cars.

Waymo, which started life as a secretive Google X lab project some 10 years ago, is the search firm’s autonomous car arm that’s now clocked up eight million self-driven miles. Morgan Stanley has already valued the venture at an incredible $175bn, thanks to its ambitions to not only offer an autonomous taxi service but also a delivery arm and license the tech to others.

Waymo has partnered with Fiat Chrysler Automobiles and in 2018 announced it was joining forces with Jaguar to create a fleet of selfdriving I-Paces.

‘Google is throwing vast sums of money at self-driving tech and is considered by far the market leader,’ said James Hind, CEO of Carwow, an entrepreneur who himself disrupted the traditional online car advertising and sales market.

‘They have all the computing power, software experts and cash to invest heavily for the long term without any need to generate revenue. If I were betting on the company that’ll disrupt the car industry the most, it would be Google.’

AUTONOMY

It’s clear autonomy could bring about the biggest change in the car industry ever seen. A report

by Barclays Bank predicts that in the future consumers won’t want to own a car at all when

Apple, headed up by CEO Tim Cook, pictured, has a number of automotive projects on the go they can simply order one to arrive via their mobile phone.

‘If cars can be ordered for short-term use from a phone, why would a vehicle be purchased outright?’ said Adam Mepham, motor sales director for Barclays Partner Finance, which commissioned a report into the future of the car industry.

Apple had – and if some are to be believed, still does have – similar autonomous car ambitions. Internally codenamed ‘Project Titan’, Apple’s ‘iCar’ has had the rumour mill working overtime for years.

‘There is no doubt that Apple has a team working on a car-related project, but as with many of Apple’s projects, the details are scarce,’ wrote Lewis Painter on Apple fan site MacWorld.co.uk.

‘The company is looking at how technology will find its way into the cars of the future. We don’t mean Apple is building an actual car, but it does appear the company is interested in the technology behind self-driving cars and other exciting developments in that space.’

At one stage, Apple was believed to have

Dyson is planning a range of EVs

‘Google is throwing vast sums of money at self-driving tech and is considered by far the market leader.’

James Hind, CEO of Carwow several hundred engineers working on the project, but reports surfaced earlier this year that they had been laid off. Don’t let that fool you, though, as the tech firm confirmed it believed there was still an opportunity to be had.

In a statement, Apple said: ‘We continue to believe there is a huge opportunity with autonomous systems, that Apple has unique capabilities to contribute, and that this is the most ambitious machine-learning project ever.’

It’s hard to argue that the firm that revolutionised the mobile phone, music and home computing worlds couldn’t do the same in automotive.

DYSON CAR

Further down the line is Dyson. The firm has already hoovered up the former head of Infiniti and is readying a car for launch in 2021.

Insiders have revealed the project is drastically behind schedule, but with more than $2.5bn already invested and a head office and manufacturing facility set to be based in Singapore, the firm’s plans are advanced.

Autocar predicts Dyson is planning a ‘diverse

range of electric cars’ too. Writing for the magazine’s website, Lawrence Allan said: ‘We already know there will be a three-car line-up, with an SUV almost a certainty, on top of a highend model already mooted. A sports car will not be part of the range, but a top speed of more than 100mph for one or more models is suggested.’

PRIME CONTENDER

If anyone has deep enough pockets to shake up the car world, it’s Jeff Bezos and his Amazon juggernaut.

The online bookseller that’s become a retailer for pretty much everything has led a $700m round of funding for Michigan-based EV start-up Rivian, and it could be set to take an even bigger slice of the company.

The firm is a competitor to Tesla and is planning a self-driving truck and SUV. Couple this with Amazon’s investment in autonomous start-up Aurora, and experts are predicting Bezos could snap them up, merge all three and take on the whole car world in the process.

Especially if it meant deliveries for his products could be made even easier.

A driverless car from Google ‘It’s not a well-kept secret that Amazon has invested heavily into Aurora, a self-driving start-up led by ex-Tesla and ex-Google executives,’ wrote tech futurist Michael Spencer on Medium.com.

‘When Amazon acquires both Rivian and Aurora, merges them and leap-frogs Tesla among others, don’t say I didn’t tell you so.’

But when it comes to the real disruptors, it could be those waiting in the wings, unheard of and ready to pounce, that could cause the most damage. The Chinese are training their sights on automotive world domination and have the funds and skills to make a dent, while the rise of 5G networks and the bandwidth that will give software companies to exploit could shake things up even further.

Carwow’s Hind added: ‘Amazon, Apple, Google and Dyson all have huge cash reserves, experience building products and are used to outsourcing to produce at scale rapidly.

‘But there are also dozens of well-funded upcoming Chinese EV players who could cause just as much, if not more, damage to OEMs in the not-too-distant future.

‘These are interesting times.’

CarDealerMag.co.uk | 49

Reasons to consider Cyber Liability Insurance

Your reputation is a strength, so why not protect it?

When your systems have been compromised, you run the short-term hazard of financial loss but also the longer term risk of losing loyal customers and a damaged reputation. Cyber liability insurance includes the cost of engaging the help of a public relationships firm, as well as protecting against lost sales as a result of a loss of custom. Essentially, it helps to insure your reputation.

Data is your most important asset…

Yet data is not covered by most standard property insurance policies. In the event that data is damaged or destroyed, it is unlikely that a standard property policy would pay out. This is why we recommend our cyber policy, as it provides comprehensive cover (up to full policy limits, see terms and conditions for full details) including data restoration, no matter how the loss occurred.

You can be held liable for any third party data that is lost.

Businesses hold more information on their customers and suppliers than ever before. As they are responsible for protecting this information, businesses should consider cyber liability insurance to ensure cover against nondisclosure agreements and contracts that contain indemnities and warranties in relation to this type of breach as well as consumers seeking legal redress in the event of lost data.

Cyber crime continues to rise in scale and complexity costing the UK billions of pounds1 In this digital world that your business is operating in, new crimes are emerging regularly and they can occur day or night. Identity theft, phishing scams and telephone hacking are just some of the crimes that most traditional insurance policies may not address. Cyber insurance can provide cover for a variety of threats that your business faces every day.

Operating systems are critical for your daily business...

But unplanned ‘downtime’ is generally not covered by standard business interruption insurance. From electronic point of sales to office reporting software and booking systems, all businesses rely on operating systems to manage their business. In the event of your business suffering a computer virus, a hacking incident or even a malicious employee disrupting your services, a traditional business interruption policy may not respond. Cyber insurance provides you with cover for loss of profits associated with a systems outage that is caused by such attacks.

50 | CarDealerMag.co.uk

© 2019 Arthur J. Gallagher & Co.

Retailers face big penalties if they lose credit card data Last year the advanced security systems and innovations in which the finance industry invests to protect customers stopped more than £1.6 billion of unauthorised fraud. But despite this, criminals successfully stole £1.2 billion through fraud and scams in 20182. Compromised retailers can be held liable for reissuance costs, investigation costs as well as the actual fraud conducted on stolen cards. Cyber insurance can help protect your business against these costs.

Portable devices increase the risk of loss or theft A forgotten laptop on a train, a stolen iPad from a bag in a bar, or a lost USB stick are all examples of how businesses can lose data on the go. Portable devices are fast becoming a valuable resource for the flexible workforce but are unfortunately a target for criminals. Cyber insurance can help cover the costs associated with breaches of data should a portable device become lost, stolen or become infected with a virus.

Social media is an effective business tool but claims are on the rise Every second, on average, around 6,000 posts are made on Twitter alone3 and information is shared and exchanged at the click of a button. How that information is presented can give rise to liability for businesses that are responsible for the conduct of employees on social media sites such as LinkedIn, Twitter and Facebook.

Cyber insurance can help provide cover for claims that arise as a result of leaked information, copyright infringements or defamatory statements.

It doesn’t matter what type of business you are, small ones are targets too…

Small businesses may not have the financial resources to get things back on track after a security breach or data loss and with cyber-attacks becoming one of the greatest risks a small business can face. This makes cyber liability insurance a must have for the big, the small and everyone in between to help protect against the potentially crippling financial effects of a security breach.

Would you like to talk?

For More Information Contact The Automotive Team: Gallagher 253 Capability Green, Luton, Bedfordshire, LU1 3LU T: +44 (0)800 612 22 84 | E: automotive_enquiries@ajg.com

SOURCES 1. https://nationalcrimeagency.gov.uk/what-we-do/crime-threats/cyber-crime 2. https://www.ukfinance.org.uk/system/files/Fraud%20The%20Facts%202019%20-%20FINAL%20ONLINE.pdf 3. https://www.internetlivestats.com/twitter-statistics/

This bulletin is not intended to give legal or financial advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this bulletin we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the information contained. You should not act upon (or should refrain from acting upon) information in this bulletin without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this bulletin, nor will we be

ARTUK-372690658

responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP720-2019 Exp. 07.10.20. www.ajg.com/uk © 2019 Arthur J. Gallagher & Co.

CarDealerMag.co.uk | 51

Feature.

LIGHTS, CAMERA, Ted Welford goes behind the scenes with Mazda as TV idents for its new 3 hatchback are filmed.

L

ife doesn’t offer many opportunities to ponder the question: ‘How on earth did I get here?’

But standing in a tiny gazebo in the freezing cold (yet mesmerisingly beautiful) Peak District, being pelted by rain from all angles, surrounded by expensive camera gear and with two VERY angry sheep farmers threatening to drive into a new Mazda3 (one of the first in the UK) that’s blocking their path, I can’t help but ask myself that very question.

Just a standard Thursday as a Car Dealer reporter, right? Hardly, but it at least shows the difficulty and hardship involved in getting the right advertising material. First though, some background. This is Mazda’s all-new 3 – one of its staple offerings that rivals cars such as the Ford Focus. And a new car means you need the right material to make consumers admire it and consider buying one – whether that be brochures, social media content, or why I’m here today: to see a new TV ad being made.

The level of effort involved in creating just a few moments of TV footage is incredible

52 | CarDealerMag.co.uk

But this is no normal TV advert. We’re here to make a series of idents, which are the short bursts that cut in at the start and end of every commercial break. Think ‘Mystery Drama on ITV, sponsored by the new Skoda Superb’ and you’ll be along the right lines.

Regular viewers of Film4’s prime 9pm slot might have noticed it’s Mazda that owns the property – yes, that’s what the slots are referred to – and it has been showcasing its CX-5 SUV and MX-5 roadster since July last year, with the message, ‘Together is a wonderful place to be’.

Now it’s the turn of the new 3.

Producing idents has its own challenges. You see, it’s a tough gig even getting your adverts to Film4. They have to fit Channel 4’s ethos and can carry no advertising messages – so no website mentions, no finance deals, etc – and they usually tell a story. Across each film, there’s hardly a minute of screen time in total, which is broken up into even smaller chunks to bookend each advert break.

The pitching process is also nightmare-

inducing. Film4 approaches manufacturers out of the blue to announce it has a property up for grabs, with a two-week deadline for firms to get their ideas in.

‘No one knows what the outcome will be and you just try to win by putting your best offer forward. It’s like buying a house with sealed bids at an auction,’ Claire Andrews, marketing director at Mazda UK, tells us.

Mazda won the most recent property to become available, which is why I find myself in the picturesque Peak District admiring the tranquil countryside juxtaposed with the hectic nature of the first day of shooting.

But while it might seem manic – particularly as the filming is being done while dodging torrential rain showers – it’s actually all impeccably well organised.

Up to 10 different agencies are involved in both the planning and production stages, alongside the team at Mazda. The operation has to run like clockwork – particularly with more than 40 staff in attendance, who range from camera operators

ACTION! ‘We have a massive, massive audience through the sponsorship, and that’s why we’ve gone down this avenue.’

Claire Andrews, marketing director at Mazda UK

through to ambulance staff. The level of effort that goes into producing just a minute or so of TV advertising is incredible.

And then there’s the expense. Unsurprisingly, Andrews is reluctant to tell me how much money is needed to create and run the adverts – she’ll only confirm ‘it’s a significant investment because it’s television’.

The day starts in a layby with a Mazda3 stuck on the back of a specially adapted truck that has a huge camera mounted alongside. It’s here that the detailed interior shots are caught. It helps to stabilise things while the truck is moving, and the end result looks incredibly realistic as we watch it back on a monitor that’s meant to broadcast live what’s being filmed.

But in the rural Peak District, where the phone signal is as sketchy as our political future, we only catch the occasional image.

The lorry runs up and down the same stretch of road, which is closed to traffic for a few minutes each time, until the perfect shot is captured.

After a busy morning, the lunchtime bells ring

Part of the story involves a father and son spending time in a spectacular location after a trip together in a Mazda3 CarDealerMag.co.uk | 53

Feature.

A special trailer is used so interior shots can be obtained while on the move. A viewer would think the car’s tyres were in contact with the road! and we head to another layby where a glorified burger van awaits with piping hot food ready to be served.

After a hearty chicken casserole and apple pie, I ask Andrews how filming is going so far – bearing in mind that the weather has been decidedly on the damp side.

‘What we shoot and when we shoot is always weather-dependent, but when you get a break in the rain you’ve just got to get on with it. Everyone has pulled together to get the performance out, but the most important thing is that we get the car looking great in every shot,’ she says.

Next we’re off to the beautiful Howden Reservoir, which is the setting for a touching father-and-son moment that’s part of the story.

That’s the narrative at the heart of the whole thing – father and son escaping to a beautiful

54 | CarDealerMag.co.uk

‘The most important thing is that we get the car looking great in every shot.’

Claire Andrews part of the world and with a great car transporting them there. I arrive after it’s all been set up – complete with a track for the camera to scoot down to get a smooth shot zooming in on the duo.

It’s here where we encounter the angry farmers, who aren’t expecting 40 film crew and a sparkling new Mazda3 to be blocking their way.

A snarly exchange and threat of the farmers’ ancient tractor being rammed into the new car later and, unsurprisingly, this part of the shoot is wrapped up pretty quickly.

From here, we head to the final location – an unglamorous farmyard (luckily not connected to our previous encounter). It’s at the top of a hill with some fantastic sweeping corners up to it, which is a perfect location for getting some stunning road shots.

This is where my favourite bit of kit of the day is rolled out – a Mercedes ML55 AMG equipped with a ‘Russian arm’. The car helped film James Bond scenes and has been completely gutted inside. It features a number of monitors and the controls for the ‘arm’, which is what the

camera is attached to. The ‘arm’ essentially leans out to get the wide shots you wouldn’t be able to otherwise achieve on a narrow stretch of road.

Here’s where another issue is encountered.

The problem is this sweeping road might look beautiful but it’s also incredibly steep, and to use the brake lights can ruin a shot.

In the past, a technician would play with a few cables to ensure the brake lights remained off, but with cars getting more and more complicated, it seems this is no longer an easy ask. The solution?

Much of the action was being shot near the picturesque Howden Reservoir. The scenery was lovely but the weather certainly wasn't...

Leave it in first gear… I hop in with Stuart Hale, a precision driver (cool job) who has the task of making a car look as composed as possible in shots. This isn’t the easiest of tasks when a Mazda3 is running down a steep hill in first gear at 30mph. Thankfully, they aren’t filming sound, but the end result is superb.

The whole process might seem a bit over the top given the short amount of time the car is on screen, but it’s worth considering the advert’s reach. I’m told that over a 12-month period 28 million adults see the idents and that this is the ‘most cost-effective way to advertise’.

Andrews says: ‘We have a massive, massive audience through the sponsorship, and that’s why we’ve gone down this avenue.

‘Mazda still has some awareness issues, and we’re not necessarily at the front of people’s minds, so what we try to do is get our cars in front of our target audience and ensure that our messages are right for them. We’ve had great results so far from the sponsorship.’

Mazda has previously commissioned independent research and, using the MX-5 as an example, data showed that viewers were twice as likely to buy the firm’s two-seat roadster having been exposed to the idents.

This level of crew, the planning involved and the sheer cost of both producing the films and running them on Film4 might seem excessive, but given there’s a clear link to the adverts raising Mazda’s brand awareness, and hopefully transferring across to more sales, it would certainly seem to be worth it.

I leave the Peak District mesmerised by the talent and effort that goes in to producing these idents, and urge anyone who takes manufacturer marketing material for granted to take a step back and appreciate what goes on behind the scenes.

If you haven’t seen the idents yet, I thoroughly recommend watching how seamlessly the whole package is brought together – even if that means sitting through Kung Fu Panda 2 or Titanic for the tenth time… [CD] CarDealerMag.co.uk | 55

Feature.

A GRAND DESIGN

LOTUS BLOSSOMS Does the iconic British manufacturer have a bright future ahead?

One of its dealers certainly thinks so. Adam Weller reports.

T

he walk across the car park towards a specialist car dealership is one that can often tell you a lot about the establishment. Arriving at Central Lotus in Nottingham, it almost feels as though an underground movement is finally stepping out from the shadows; the Fight Club of Norfolk-built sports cars is making its way into the public domain.

A large building sits next to the framework of what will become an elaborate showroom – and a quick walk through a rather barren corridor takes you to the heart of the present-day business.

The only clues as to the nature of that business are a couple of Evoras in for servicing and some pictures on the wall of the manufacturer’s founder, Colin Chapman. Eventually, you are greeted by a very neat-looking, compact showroom, packed with artefacts from Lotus’s fabled history in Formula One. And although the heritage of the brand is very much at the forefront of everything you see here, this is quite a new franchise.

It was opened in 2016 via a collaboration between Andrew Bradbury, the owner of paint protection company Paintseal Europe, and his long-time business partner Kevin Riley.

For managing director Bradbury, it was a collaboration with the brand through his main business that led him into Lotus ownership, and from there into being a part of the brand’s servicing and dealership network.

The business is run on a daily basis by Bradbury’s 21-year-old son, Connor, who told us that it all began with a particular car.

‘For the Paintseal business, dad went over to the Lotus factory [in Hethel, Norfolk] and saw ‘‘the car’’: a Daytona Blue Evora which he soon ended up buying. He fell in love with the cars and everything Lotus was about. He’s always had a big passion for cars anyway.’

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Left: Andrew Bradbury with his son Connor

The understated corridor that leads to the current dealership facility Beyond that passion, Bradbury senior has worked in the motor industry for a significant proportion of his life. He explained his early years in the motor trade, saying: ‘It was 1985 when I started in the motor trade. I joined GT Car Group, which were three franchise Renault dealers based in Nottingham, Derby and the Long Eaton area.

‘After that I went to Bristol Street Group, which at the time was selling for Citroen. That was my job for 10 years, and then I moved into paint protection in 1996.’

Initially, Bradbury noticed a gap in the market

for a Lotus servicing business in the Midlands, particularly near his home just outside Nottingham. Via his pre-existing connections with Lotus, a conversation was struck up as regards potentially opening a servicing centre.

Soon the conversations became serious and had extended to include Riley, who made his money in the world of property development and has long been one of British motorsport’s most beloved ‘silver foxes’. First rising to prominence on the track in the ’60s and ’70s, he returned in the 21st century initially driving Ferraris, then a mighty LS7 V8-powered Mosler, and now ex-Le Mans Lotus Evoras.

Lotus is a motorsport brand through and through, winning numerous Formula One World Championships and still serving as one of the most successful marques in the sport’s history, which makes Riley’s involvement in the Central Lotus dealership rather apt.

Riley is also a director of the neighbouring National Motorsport Academy, and the students bolster his racing efforts.

If you can find the door in the mirrored back wall of the dealership, you’ll stumble across the racing workshop, which also works on the road cars brought in by customers.

On the day of our visit, Riley’s venerable Mosler, as well as an Evora that raced with the factory Lotus team at Le Mans in 2011, were

An ex-Le Mans car in the workshop

The framework for the bigger, better showroom, as illustrated on the left being worked on. In addition, a new Evora race car – a significant development from the Le Mans machine it has borrowed a chassis from – is being readied to go racing. Truly, the competitive spirit of Lotus is not lost to anyone at Central, and the brand’s heritage has been incorporated in the layout of the dealership.

Connor explained: ‘On the wall, we’ve got the ‘‘unique place in history’’, with everything Lotus has achieved to date in Formula One. The table in the boardroom is 1.7 metres wide – the same width as a Formula 1 car – and there are seven chairs around the table, each one representing a World Championship for Lotus. The wheels holding the table up are the actual wheels that were on our Le Mans car in the 2011 race.’

Riley was roped in by Andrew Bradbury as a director early in the talks to become a fully fledged dealership. While initially refusing to take up a dealership at the age of 70, his tune quickly changed when he heard it was going to be a Lotus franchise. Connor said: ‘Kevin is from that era

where Lotus was winning everything in Formula One. Colin Chapman is his absolute idol, and his ‘‘first’’ racing career coincided with when Lotus was massive.

‘He owned Lotus vehicles himself in the past, and when he heard it was a Lotus dealership he basically said ‘‘Oh, go on then!’’’

It’s no secret that recent times have been tough for Lotus. The late 2000s into the early 2010s were awash with concepts that proved to be nothing more than vapourware, and there were stages where the company’s finances were in dire straits.

In the meantime, the firm pushed on, launching a long string of special editions in an attempt to keep an ageing line-up fresh.

To say that taking on a Lotus franchise in 2016 was a brave move is something of an understatement.

However, 2017 saw the future of the brand experience an upturn, with Geely taking the reins. The Chinese firm, also in control of Volvo, is set to reinvigorate the Norfolk-based outfit, announcing the most ambitious Lotus to date in

‘It will be a three-storey building, which will be able to house 30 cars at the front and another 30 at the back.’

Andrew Bradbury

the form of an all-electric hypercar. This project – named Evija – will be the first all-new car built by the brand in over a decade.

Connor said of the Evija: ‘The hypercar will hopefully show everybody what can be done now Lotus has got this backing from such a massive company that is properly investing in the brand.

‘I think they’ve always been able to do it. Some amazing cars have come out of the Lotus factory, and a fair few others also owe some of their abilities to Lotus.’

Central Lotus’s investment in the brand is now extending to the construction of a new showroom, which it refers to as ‘phase two’ of its plans. With three storeys, two of which will be dedicated to car stock, it will almost certainly be the grandest Lotus dealership in the country.

Andrew said: ‘It will be a three-storey building, which will be able to house 30 cars at the front and another 30 at the back.

‘The rationale for having a third floor is that we can have it as a bit of a Lotus visitor centre for the Midlands where we can host all sorts of events, complete with conference rooms.’

The showroom will be a great showcase for Central Lotus’s overall mantra, which is investing in its facilities for the betterment of not only the dealership but also the Lotus brand as a whole.

With optimism running high and a desire to become the flagship for Lotus in the Midlands, the ascendancy of Central Lotus looks set to mimic that of the Norfolk manufacturer itself.

CarDealerMag.co.uk | 57

Data file.

Thestatistics

SMMT sales data

| SMMT SALES DATA | TAKING STOCK |

June/year to date

LATEST FIGURES

More gloom in June as demand drops even for low-emission cars

U

K new car registrations declined for a fourth consecutive month in June, with year-on-year demand falling by nearly five per cent to 223,421 units, according to the latest figures from the Society of Motor Manufacturers and Traders.

A total of 1,269,245 new cars joined British roads in the first half of the year, down 3.4 per cent, as ongoing confusion over low-emission zones and diesel, the removal of key ultra low emission vehicle incentives and an overall decline in buyer confidence affected the market.

Demand fell in all sectors, with private registrations seeing a decline of 4.8 per cent, while larger fleet and business registrations also fell, down 2.5 per cent and 37.1 per cent respectively.

Declines were also seen across every vehicle segment, except dual purpose which grew by 9.1 per cent in June and 7.3 per cent year-to-date to take 22.6 per cent of the market. However, superminis remain the UK’s best-selling segment, making up 31 per cent of all registrations in the first six months.

June saw growth for petrol and battery electric registrations, up three per cent and 61.7 per cent respectively, but this

wasn’t enough to offset the continuing decline of diesel, which fell for the 27th month in a row (20.5 per cent).

Significantly, plug-in hybrids continued the recent downward trend, falling by a massive 50.4 per cent, while hybrids also fell, by 4.7 per cent.

The performance tipped the overall alternatively fuelled vehicle sector into decline for the first time since April 2017, undermining efforts to reduce emissions through fleet renewal of the latest ultra low emission vehicles.

This is despite ongoing investment, which has enabled manufacturers to offer British car buyers more choice than ever, with more than 350 models now available in the UK – 44 of them plug-ins.

Mike Hawes, SMMT chief executive, said: ‘Another month of decline is worrying, but the fact that sales of alternatively fuelled cars are going into reverse is a grave concern. Manufacturers have invested billions to bring these vehicles to market but their efforts are now being undermined by confusing policies and the premature removal of

purchase incentives. If we are to see widespread uptake of these vehicles, which are an essential part of a smooth transition to zero-emission transport, we need world-class, longterm incentives and substantial investment in infrastructure.’

Ian Plummer, commercial director at Auto Trader, said: ‘The market may be down as a whole, but the picture is not as bleak as we may think. Not all brands are experiencing the same level of downturn. In reality, what we’re seeing is that it’s a select few manufacturers whose results are impacting the market overview. In fact, the numbers could have appeared a lot lower this month but, at the end of Q2 and H1, many retailers did even more tactical closing actions, such as self-registrations, to help reach their targets. It was this big push activity that helped close the gap on last year’s figures.

‘Looking ahead to Q3 and beyond, brands will be working harder in the coming months.’

June’s best sellers, p10

5

Top

Most-improved manufacturers in June

Lotus +160% Chevrolet +150% Dacia +46% MG +23% Toyota +17%

5

Bottom

Worst-performing manufacturers in June

SsangYong -66% Bentley -58.9% Infiniti -58.7% Abarth -52% DS -50%

Strong demand for SUVs helps drive Volvo to record sales VOLVO Cars reported record first-halfyear sales in 2019 of 340,826 cars, up 7.3 per cent compared with the same period last year.

China, the US and Europe all reported steady growth for the sixmonth period, with China recording its highest ever first-half and June sales volumes. During the period, Volvo grew 58 | CarDealerMag.co.uk

consistently faster than its premium competitors, thereby gaining market share across these regions.

The first-half performance came on the back of continued strong demand for Volvo’s award-winning SUV range, led by the XC60 and followed by the XC40 and the XC90. The company’s latest models, the V60 estate and the

US-built S60 saloon, contributed to increased volumes as well. Volvo has also started the first deliveries of its mild-hybrid offerings to customers.

Volvo’s US sales reached 50,120 cars in the first half of the year, up 5.2 per cent compared with the same period last year. The company’s SUVs remain popular across America.

Smart

Volvo

-17% June 2019 Marque

2019

+15%

June 2018

% market share

2018

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change

Abarth

258

0.12

542

0.23

-52.40

1,887

0.15

3,039

0.23

-37.91

Alfa Romeo

329

0.15

420

0.18

-21.67

1,862

0.15

2,537

0.19

-26.61 0.00

20

0.01

0

0.00

0.00

85

0.01

0

0.00

14,208

6.36

14,526

6.18

-2.19

81,129

6.39

89,263

6.79

-9.11

94

0.04

229

0.10

-58.95

812

0.06

833

0.06

-2.52

19,985

8.94

22,985

9.78

-13.05

90,021

7.09

92,396

7.03

-2.57

5

0.00

2

0.00

150.00

21

0.00

28

0.00

-25.00

Citroen

4,015

1.80

5,144

2.19

-21.95

29,422

2.32

28,247

2.15

4.16

Dacia

2,935

1.31

2,000

0.85

46.75

18,568

1.46

13,617

1.04

36.36 -53.00

Alpine Audi Bentley BMW Chevrolet

351

0.16

712

0.30

-50.70

1,831

0.14

3,896

0.30

Fiat

2,404

1.08

3,613

1.54

-33.46

17,749

1.40

19,946

1.52

-11.01

Ford

22,049

9.87

22,334

9.51

-1.28

127,789

10.07

145,541

11.08

-12.20

DS

Honda

3,854

1.72

4,606

1.96

-16.33

25,079

1.98

29,657

2.26

-15.44

Hyundai

7,803

3.49

8,663

3.69

-9.93

45,916

3.62

51,041

3.88

-10.04

Infiniti

40

0.02

97

0.04

-58.76

203

0.02

551

0.04

-63.16

Jaguar

2,938

1.32

2,960

1.26

-0.74

19,748

1.56

18,152

1.38

8.79

582

0.26

644

0.27

-9.63

3,237

0.26

3,501

0.27

-7.54

Kia

8,527

3.82

9,162

3.90

-6.93

53,232

4.19

51,506

3.92

3.35

Land Rover

6,495

2.91

6,024

2.56

7.82

42,092

3.32

41,432

3.15

1.59

1,199

0.54

1,306

0.56

-8.19

7,432

0.59

6,908

0.53

7.59

Jeep

Lexus Lotus

52

0.02

20

0.01

160.00

131

0.01

132

0.01

-0.76

Maserati

84

0.04

108

0.05

-22.22

534

0.04

730

0.06

-26.85

3,731

1.67

3,628

1.54

2.84

21,443

1.69

21,881

1.67

-2.00

29

0.01

37

0.02

-21.62

282

0.02

390

0.03

-27.69

Mazda McLaren

14,947

6.69

14,928

6.35

0.13

92,990

7.33

91,342

6.95

1.80

MG

1,078

0.48

871

0.37

23.77

6,286

0.50

4,286

0.33

46.66

Mini

8,662

3.88

8,176

3.48

5.94

33,250

2.62

34,125

2.60

-2.56

Mitsubishi

1,483

0.66

1,545

0.66

-4.01

9,784

0.77

10,131

0.77

-3.43

Nissan

9,247

4.14

8,640

3.68

7.03

52,743

4.16

59,581

4.53

-11.48

Mercedes-Benz

Peugeot

7,313

3.27

7,786

3.31

-6.08

44,344

3.49

44,989

3.42

-1.43

Porsche

1,054

0.47

1,163

0.50

-9.37

6,785

0.53

8,874

0.68

-23.54

Renault

6,094

2.73

5,606

2.39

8.70

32,113

2.53

34,636

2.64

-7.28

Seat

6,790

3.04

6,517

2.77

4.19

37,778

2.98

35,896

2.73

5.24

Skoda

7,361

3.29

8,233

3.50

-10.59

41,264

3.25

42,397

3.23

-2.67

Smart

522

0.23

633

0.27

-17.54

3,142

0.25

3,831

0.29

-17.98

SsangYong

122

0.05

359

0.15

-66.02

1,089

0.09

1,625

0.12

-32.98

Subaru

244

0.11

265

0.11

-7.92

1,363

0.11

1,627

0.12

-16.23

Suzuki

3,159

1.41

3,903

1.66

-19.06

20,337

1.60

20,464

1.56

-0.62

Toyota

11,398

5.10

9,697

4.13

17.54

56,684

4.47

56,399

4.29

0.51

Vauxhall

15,540

6.96

18,218

7.75

-14.70

94,564

7.45

97,950

7.45

-3.46

Volkswagen

20,474

9.16

23,224

9.88

-11.84

110,891

8.74

113,386

8.63

-2.20 27.05

5,260

2.35

4,545

1.93

15.73

29,989

2.36

23,605

1.80

Other British

167

0.07

176

0.07

-5.11

1,172

0.09

1,077

0.08

8.82

Other imports

519

0.23

698

0.30

-25.64

2,172

0.17

2,549

0.19

-14.79

223,421

100

234,945

100

-4.90

1,269,245

100

1,313,994

100

-3.41

Volvo

Total

Figures supplied by SMMT

CarDealerMag.co.uk | 59

LCV news.

Fullyloaded

| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |

EXCLUSIVE DEAL

CUTTING EMISSIONS

Zero per cent offer across Vito range

Capital result as Ford PHEVs clean up in trial

by DAVE BROWN dave@blackballmedia.co.uk

MERCEDES-BENZ Vans UK Ltd has launched a zero per cent APR representative deal across the Vito range, including pretrimline and Sport models.

Available on the Agility personal contract plan and hire purchase via Mercedes-Benz Finance, the exclusive offer is applicable for all Vito models, including the Vito 111CDI long van, which, via the Agility plan, starts from £215 per month, and the 114CDI Premium L2 van, which starts from £339 per month.

The Vito features advanced, fuel-efficient, common-rail turbodiesel engine technology and engaging driving dynamics, as well as outstanding build quality, reliability, long service intervals and strong residual values. The vehicle also benefits from sliding doors on both sides of the panel van as standard, as well as a tailgate or side-hinged doors at the rear to provide generous access to a cargo area capable of swallowing, for example, three Euro-pallets.

Inside, the cab features a three-spoke multifunction steering wheel that acts as an information and control hub for drivers.

As well as a radio, the standard-fit Audio 15 infotainment system offers Bluetooth connectivity for safe, hands-free calling, and an interface for audio streaming.

The offer is available until August 31, 2019.

60 | CarDealerMag.co.uk

P

lug-in hybrid electric commercial vehicles could present the most practical, readily available option for businesses trying to meet clean-air targets in cities, the results of a yearlong trial in London suggest.

The experiment – supported by a £4.7m grant from the governmentfunded Advanced Propulsion Centre – consisted of 20 Ford Transit Custom plug-in hybrid vans covering 150,000 miles and sought to test if businesses could carry out the typical daily duties of their diesel-powered vehicles, while maximising the use of zeroemissions electric-only mode.

The participants – which included Addison Lee Group, Autoglass, Heathrow Airport, the Metropolitan Police, Royal Mail and Vodafone – integrated the vans into their day-to-day operations.

During the trial, 75 per cent of the fleet’s mileage in central London and 49 per cent in Greater London was completed using pure electric power. The results highlighted that even without a fully established electric vehicle

charging network, the hybrid vans were able to dramatically reduce exhaust emissions in inner-city areas, using the flexibility of petrol range-extenders to complete longer journeys when required.

Commercial vehicles in London already make 280,000 journeys on a typical weekday, travelling a total eight million miles – and this figure is rising. Vans represent 75 per cent of peak freight traffic, with more than 7,000 vehicles per hour driving at peak times in central London alone.

Mark Harvey, director of the

Urban Electrified Van programme, said: ‘Emissions-free mobility is essential for the future of our cities and their citizens, but we know we still face barriers in the move to electrification.

‘We also know that businesses still have legitimate concerns about the range of fully electric vehicles, as well as their cost-effectiveness and reliability. These trials have helped Ford and its customers to investigate the extent to which PHEVs can help to achieve urban air quality goals whilst not compromising productivity.’

Top-selling LCVs in June Ford Transit Custom Ford Transit Mercedes-Benz Sprinter VW Transporter Ford Ranger

Source: SMMT

7,005 3,407 2,799 2,242 1,883

Renault Trafic Citroen Berlingo Vauxhall Combo Peugeot Partner Ford Transit Connect

1,746 1,595 1,517 1,300 1,058

LCV registrations, p62

‘We’re certainly going to miss having a D-Max around – it’s a faultless, rock-solid pick-up.’

Jack Evans puts the Isuzu D-Max Utah to the test, p63

Sliding doors WITH CRAIG CHEETHAM

A look at the world of buying and selling vans and pick-ups

I

LEVC is on the right road with range-extender technology

was intrigued last month to see the new LEVC LCV – the oftmooted but slow-to-appear van based on the range-extended electric London taxi.

I make no secret of the fact that, to my mind, rangeextender technology is one of the best possible answers to the EV conundrum, as it gives owners the best of both worlds – a short(ish) electric range and a longer range where the engine sustains the battery but, at the same time, doesn’t take over propulsion from the electric motor.

That’s the key difference between a range-extender and a PHEV, which the public don’t seem to understand – largely because several people in the automotive media don’t either.

I was involved in range-extender technology early on, as 11 years ago I was working for GM when it announced the Chevrolet Volt – the first car on the market to feature such tech. In 2011, I was on the team that launched the car in Europe, and I recall those days well.

The Volt was new, exciting and completely removed all sense of ‘range anxiety’ from using an EV. Furthermore, pop it into ‘hold mode’ and you could choose where and when you wanted to use its EV-only range, which was perfect if you were commuting into a city from outside and wanted to save your electric range for when you were in an urban environment.

But despite the fact it remains a brilliant powertrain, the rangeextender concept never really took off.

Plug-in hybrids were cheaper, easier to produce and even qualified for the same tax breaks, so the general public were reluctant to buy something more expensive and that was, in their view, not much different.

The automotive industry, meanwhile, chose the path of least resistance.

With so many vehicle manufacturers buying in components from the same automotive systems suppliers (the likes of Bosch, Valeo and Continental, for example), it was all

too easy to follow the PHEV trail like sheep, even if it wasn’t the catch-all solution it was marketed as.

Then along came LEVC with its replacement for the 20-year-old LTI TX taxi: an icon of Britain’s urban environment but also an anachronism. In a city determined to flag up its eco-credentials, running even a Euro 6-compliant diesel around London would be a form of hypocrisy.

So why did LEVC go for range-extender technology over PHEV? Well, a large number of cabbies don’t actually live in the capital.

They, too, are commuters. And if their taxis had conventional PHEV drivetrains, they’d be working most efficiently out of the city and least efficiently in it.

With range-extender tech, the driver can effectively ‘switch on’ his EV systems when he enters the low-emission zone and, with 70-odd miles of EV range, can do pretty much a whole day’s work just on electricity and safe in the knowledge that if he does pick up an airport fare or a long-distance one, the cab won’t put him out of a job. It’s a case of the tech being perfect for the purpose.

And that’s why the LEVC LCV, despite its rather protracted gestation, is a van I think will be absolutely brilliant. It can be switched to EV mode when it needs to make deliveries in city centres or low-emission zones, yet if you need to take a load from one end of the UK to the other, it’ll do the job nicely in extendedrange mode and no less efficiently than a Euro 6 diesel.

LEVC, then, should be applauded for sticking to the idea of range-extender drivetrains.

We should also celebrate the fact the van is made in the UK, at a new plant in Coventry. LEVC is part of the Geely Corporation too, which also owns Volvo – a brand that has most definitely benefited from the company’s ownership.

All in all, a win-win-win situation.

Well, it certainly gets my volt...

Craig Cheetham is an experienced automotive journalist with specialist knowledge of the LCV sector.

Turn over the page for the latest LCV registrations CarDealerMag.co.uk | 61

LCV news.

JUNE REGISTRATIONS

LCV market enjoys six consecutive months of growth JUNE marked the sixth consecutive month of growth for the UK new LCV market, as registrations rose 13.5 per cent, according to the latest figures from the Society of Motor Manufacturers and Traders.

The performance meant a record first six months of the year, as buyers continued to be

attracted to the offers and ranges available.

Demand for smaller vans weighing less than 2.0 tonnes rose 10.3 per cent, while registrations of larger vans weighing 2.5-3.5 tonnes were up too, rising 22.2 per cent. Meanwhile, growth in demand for pick-ups and 4x4s slowed again, with registrations down 0.7 per cent and 21.8 per cent

respectively, and the market for medium-sized vans weighing 2.0-2.5 tonnes also posted a fall, declining by 3.6 per cent. In the first six months of 2019, the LCV market was remarkably strong, up 8.7 per cent and ahead of expectations. A total of 196,418 new vans were registered on UK roads – 15,722 more than in the same period last year.

Registrations of new commercial vehicles less than 3.5 tonnes June 2019 Marque

2019

June 2018

% market share

2018

Figures supplied by SMMT

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change

Ford

14,193

35.55

13,188

37.49

7.62

65,788

33.49

64,393

35.64

2.17

Volkswagen

4,421

11.07

3,510

9.98

25.95

22,636

11.52

21,725

12.02

4.19

Mercedes

4,239

10.62

2,357

6.70

79.85

18,368

9.35

12,501

6.92

46.93

Vauxhall

3,195

8.00

2,721

7.73

17.42

16,215

8.26

12,419

6.87

30.57

Citroen

3,116

7.80

2,757

7.84

13.02

15,153

7.71

14,340

7.94

5.67

Peugeot

3,104

7.77

3,885

11.04

-20.10

17,977

9.15

18,600

10.29

-3.35

Renault

2,714

6.80

1,538

4.37

76.46

10,779

5.49

8,139

4.50

32.44

1,121

2.81

1,461

4.15

-23.27

6,631

3.38

7,017

3.88

-5.50

1,034

2.59

988

2.81

4.66

6,287

3.20

5,586

3.09

12.55

Fiat

965

2.42

778

2.21

24.04

5,182

2.64

4,640

2.57

11.68

Toyota

475

1.19

903

2.57

-47.40

4,230

2.15

4,797

2.65

-11.82

Isuzu

442

1.11

406

1.15

8.87

2,290

1.17

2,428

1.34

-5.68

Iveco

206

0.52

256

0.73

-19.53

1,447

0.74

1,696

0.94

-14.68

MAN

172

0.43

32

0.09

437.50

737

0.38

179

0.10

311.73

Land Rover

171

0.43

182

0.52

-6.04

770

0.39

626

0.35

23.00

130

0.33

109

0.31

19.27

722

0.37

815

0.45

-11.41

72

0.18

9

0.03

700.00

370

0.19

127

0.07

191.34

Isuzu Trucks

70

0.18

50

0.14

40.00

407

0.21

326

0.18

24.85

LDV

66

0.17

33

0.09

100.00

269

0.14

185

0.10

45.41

Fuso

20

0.05

15

0.04

33.33

102

0.05

85

0.05

20.00

Nissan Mitsubishi

Renault Trucks SsangYong

Hyundai

3

0.01

0

0.00

0.00

58

0.03

25

0.01

132.00

Dacia

0

0.00

4

0.01

0.00

0

0.00

43

0.02

0.00

0

0.00

0

0.00

0.00

0

0.00

4

0.00

0.00

39,929

100.00

35,182

100.00

13.49

196,418

100.00

180,696

100.00

8.70

Great Wall Total light CV

Registrations of new commercial vehicles 3.5 tonnes to 6.0 tonnes June 2019 Marque

2019

Peugeot

June 2018

% market share

255

31.80

2018

Year-to-date (YTD)

% market share 272

Figures supplied by SMMT

% change

32.27

-6.25

2019 1,177

% market share

2018

% market share

% change

30.68

1,411

29.59

-16.58 -3.85

Mercedes

178

22.19

135

16.01

31.85

873

22.75

908

19.04

Fiat

169

21.07

165

19.57

2.42

1,019

26.56

1,010

21.18

0.89

Iveco

55

6.86

23

2.73

139.13

299

7.79

163

3.42

83.44

Vauxhall

36

4.49

3

0.36

1100.00

118

3.08

51

1.07

131.37

MAN

35

4.36

2

0.24

1650.00

57

1.49

6

0.13

850.00 -89.97

Ford

23

2.87

209

24.79

-89.00

107

2.79

1,067

22.37

Citroen

20

2.49

19

2.25

5.26

90

2.35

67

1.40

34.33

Volkswagen

15

1.87

4

0.47

275.00

34

0.89

40

0.84

-15.00

Renault

13

1.62

9

1.07

44.44

48

1.25

38

0.80

26.32

Renault Trucks

1

0.12

0

0.00

0.00

5

0.13

1

0.02

400.00

Nissan

1

0.12

0

0.00

0.00

1

0.03

0

0.00

0.00

Isuzu Trucks

1

0.12

2

0.24

-50.00

9

0.23

7

0.15

28.57

802

100.00

843

100.00

-4.86

3,837

100.00

4,769

100.00

-19.54

Total heavy CV

62 | CarDealerMag.co.uk

FIRST DRIVE

Isuzu D-Max Utah

THE KNOWLEDGE

Jack Evans has been trying out the full range of the Japanese manufacturer’s pick-up trucks and now it’s time for one last blast in this Premium edition.

What is it?

Our winding, twisting journey through the Isuzu range of D-Max pick-up trucks is coming to a close and we’ve got one specification left to test. It’s the out-and-out Utah version: Isuzu’s go-to spec within the D-Max range. Looks good, doesn’t it?

What’s new?

Although it may not appear all that different on the outside compared with the other trucks in the D-Max range, this Utah model does get some subtle changes to help differentiate it from the rest. You’ll find 18-inch alloy wheels on all corners, as well as chrome roof bars up top. LED headlights and daytime running lights give the front of the truck a bit of sparkle, as does the hard-to-miss chrome radiator grille.

What’s under the bonnet?

The powertrain remains the same as the rest of the trucks, of course, but that’s no bad thing – the turbocharged diesel under the bonnet is, as we’ve found over the past few months, strong and effective at getting the D-Max up to speed.

What’s it like to drive?

As with all pick-up trucks, the

ride quality is helped tenfold by additional weight over the back.

All of the clutter we put in it on a recent trip to the tip did wonders for the way the D-Max handles potholes and other road imperfections, giving it a more settled, refined ride. That said, it’s not bad in the first place, but the extra bulk does have a positive impact.

How does it look?

The striking range of colours that this latest truck can be finished in separates it from the rest, too.

They are dynamic shades and add to the truck’s already plentiful amount of presence.

It’s a hard thing to miss, that’s for sure, and depending on your taste that’s either a very good – or not so good – thing.

What’s it like inside?

The Utah has been designed with comfort in mind, and that’s why it gets luxurious features such as full leather seats (the front ones of which are heated), automatic air conditioning and rear parking sensors.

Helpfully, there’s Apple CarPlay included too – meaning it’s a lot easier to integrate your smartphone into the car’s system.

Isuzu D-Max 4x4 Double Cab ‘Utah’ Price (from): £25,709 + VAT Engine: 1.9-litre, turbocharged four-cylinder Power: 163bhp Torque: 360Nm Max speed: 112mph 0-60mph: 12.8 seconds MPG (combined): 42.8 Emissions (CO2): 183g/km Model:

What’s the spec like?

The Utah gets all of the kit that we’ve come to expect from the D-Max range, adding 18-inch alloy wheels plus roof bars, rear parking sensors, reversing camera, Apple CarPlay plus Android Auto, automatic air conditioning and heated front seats, and a seven-inch multi-function colour touchscreen with sat nav to name but some. And although the infotainment set-up isn’t the most sophisticated that we’ve seen, it has plenty enough functionality to get you through.

The central heating and ventilation controls remain a touch cluttered, but as with all things when it comes to car functions, the longer you spend with them, the more intuitive they become.

What do others think?

The AA said: ‘A three-tonne towing capacity, the ability to carry more than one tonne’s payload and no hesitation in traversing difficult muddy or gravelly terrain makes the D-Max a formidable working partner.’ Meanwhile, the RAC commented that it ‘offers superior ride quality, an efficient 1.9-litre engine and a tough and practical demeanour. Is it good enough to challenge the best pick-ups in its class? Drive a variant like this 4x4

TARGET BUYERS: Those wanting a dependable truck with added comfort.

THE RIVALS: Mercedes X-Class, Nissan Navara, Volkswagen Amarok.

KEY SELLING POINTS: 1. Rugged build quality.

2. More standard equipment.

3. Apple CarPlay now included.

DEAL CLINCHER: Want a utilitarian truck able to comfortably dispatch motorway miles? This has you covered.

Double Cab Utah model and you wouldn’t count against it.’

What do we think?

We’re certainly going to miss having a D-Max to call upon when the time needs it. Throughout its various specifications, it has proved to be a faultless, rock-solid pick-up, never faltering whenever we required something from it. Although it may not bewilder with overly high-tech functions or glitzy technology, it always gets the job done.

CarDealerMag.co.uk | 63

Workshop.

Aftermarket

SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES

RISE

Customers opt for longer warranties

CONSUMERS are increasing the length of warranty they choose to buy from independent used car retailers.

That’s according to new figures from the RAC Dealer Network, which said that in May 2018, the typical warranty sold was 9.3 months but for the same month this year had risen to 9.8 months.

The statistics for car supermarkets are even more pronounced – rising from 12.2 months to 14 months.

Sean Kent, pictured, RAC sales director at Assurant, which partners with the RAC in providing and administering warranties across the network, said: ‘These figures represent the acceleration of a long-term trend.

‘Customers have been increasingly opting for longer and longer warranties for some years now, but the surges we have seen over the past year are progressively more substantial.

‘Used car retailers are increasingly constructing propositions designed to create a high degree of reassurance for customers – something that is very much prompted by market demand – and longer warranties clearly have an important role to play in creating these packages.’

He added that the statistics were a persuasive indicator of the importance of providing longer standard warranties and offering a structured warranty upgrade path.

64 | CarDealerMag.co.uk

PARTS ALLIANCE

Hundreds gallop to trade show at course

by JOHN BOWMAN john@blackballmedia.co.uk

T

he sun was shining as hundreds of The Parts Alliance’s customers attended the company’s summer trade show at Brighton Racecourse.

Guests included representatives from nearby branches, as well as more than 40 leading suppliers, who enjoyed food and drink as they mingled with a special guest, the BTCC driver Matt Neal.

Alongside exclusive show offers, attendees had the chance to win prizes courtesy of The Parts Alliance’s suppliers. To be in with a chance of winning, guests had their ‘prize card’ stamped as they made their way around the supplier stands.

The event was held to showcase the investment that the Uni-Select subsidiary has made in its local Car Parts & Accessories (CPA) branches, including more than £1m of stock.

Some of the beneficiaries include CPA Chichester, which has benefited from a stock investment of 500 per cent in its new location, plus CPA Hove and CPA Lewes, both of which have moved to larger, two-tier premises to offer better availability.

The investment comes in addition to the new 500,000 sq ft national

distribution centre and regional distribution centres, which The Parts Alliance says will improve customer service, availability and delivery throughout the network.

Attendee Michael Marsh, of Motors and Mowers in Seaford, East Sussex, said: ‘I heard about the show at my local motor factor and thought it would be worth a visit.

‘It’s been a great opportunity to see the latest equipment and meet people I normally only get to speak to on the phone.’

Tim Crofton, of RSG Service

Centre in Littlehampton, West Sussex, said: ‘We’re here to see what’s new and what’s happening in the industry.

‘It’s a fantastic opportunity to speak to the big brands, and they’ve got lots of great knowledge about the parts they supply, which is great for our customers too.’

Simon Moore, head of marketing at The Parts Alliance, said: ‘The feedback we’ve had from our guests has been overwhelmingly positive, and our suppliers really appreciated the chance to trade and network.’

New easy-to-use garage manager guide is out MOT managers will benefit from new and clearer guidance on running their garages published by the Driver and Vehicle Standards Agency.

‘Manage Your MOT Centre’ is shorter and easier to read than previous guidance and features concise information on how to manage garages following an extensive review and redraft of the existing guidance.

Neil Barlow, head of vehicle engineering at the DVSA, said: ‘Feedback from MOT testers and garages showed that the previous information they needed to make sure their garages worked effectively was difficult to use.

‘We’ve listened and brought everything they need into one place so it can be easily accessed. I’m sure testers and managers will find this much better.’

BRIDGESTONE

Smart factories of the future planned

Technicians operating the mobile clinics are able to carry out tasks such as service work and MOT repairs TYRE manufacturer Bridgestone is investing £32.3 million to digitise its manufacturing operations and create the smart factories of the future.

The project will enable Bridgestone to respond faster and more flexibly to evolving customer demands, while using less energy and producing less waste in the production process. The investment will also see Bridgestone employees upskilled to operate industryleading digital technologies that will subsequently help to improve resource efficiency and job satisfaction.

The smart factory project will see the whole production process – covering manufacturing semi-finished products, energy supply, maintenance, production monitoring and production planning – transformed across eight European plants in Poland, Hungary, Spain, Italy and France.

These will benefit by saving energy, increasing efficiency, reducing waste and adopting simplified processes.

Adolfo Llorens, Bridgestone vice-president for manufacturing in the company’s Europe, Middle East and Africa region, said: ‘This smart factory project will go a long way to make Bridgestone future-ready. Not only will our processes become more efficient and more sustainable, but they will also lead to better products. I can’t wait to see how this project evolves over the next four years.’

A USEFUL OPTION

Mobile servicing saves businesses over £1m D

emand for mobile servicing has surged in the past year resulting in an estimated £1.1 million saving for UK businesses.

Figures from Volkswagen Commercial Vehicles show almost three-quarters of van drivers (71 per cent) find the offer of a mobile servicing unit attractive as it saves time and money.

Businesses in Greater London are most likely to make use of the facility, due in no small part to the additional time it takes to drive anywhere in the capital.

Some 21 Volkswagen Van Centres now offer Mobile Service Clinics, and technicians carried out almost 10,000 jobs at over 4,000 different locations last year, saving fleets

by DAVE BROWN @CarDealerDave

a combined 10 years of vehicle downtime. Time off the road costs businesses up to £500 per van, per day. Mobile Service Clinics are able to reduce or eliminate these costs by removing the need for vehicles to spend a day booked in at a Van Centre for maintenance.

Instead, Van Centres are able to dispatch a specially converted Volkswagen Crafter, kitted out with an array of on-board tools including compressed air jacks and even a hand wash basin, to someone’s home, workplace or fleet base. Technicians operating the clinics are able to carry out service work, inspections, air

conditioning servicing, MOT repairs, minor warranty work and software updates remotely, while the vehicles are not being used.

David Hanna, head of service and parts at Volkswagen Commercial Vehicles, said: ‘We’ll work when you’re not to minimise downtime and reduce associated costs, which is consistently one of the biggest issues for our customers.

‘We’re committed to working as a trusted partner alongside our customers to deliver an aftersales service that suits their needs in the short and long term. Innovative solutions like our Mobile Service Clinics help deliver on our Working With You promise and it’s clear from these figures what a useful option it is for our owners and fleets.’

Audi dealership proud of perfect aftersales duo TWO Stoke Audi members of staff scored 100 per cent in an aftersales mystery shop.

Standards set by the German manufacturer for the LIS (Leistung in Service) test, which translates as ‘Performance in Service’, are extremely high – sites have to achieve a minimum of 90 per cent to pass – but apprentice service adviser Sophie Simmonds and master technician Steve Smith got full marks across the board.

Martin Scott, Stoke Audi aftersales manager, said:

‘To say we’re delighted for an apprentice to pass this extremely rigorous test is an understatement. Sophie’s customer care skills and handling are exceptional and she excels in her role. An LIS test is difficult even for a fully qualified and experienced adviser to pass, so Sophie should be very proud of what she’s achieved.’

Audi UK said: ‘Sophie has shown the ‘‘Audi difference” and delivered a truly premium customer experience. She is a credit to Swansway Motor Group.’

CarDealerMag.co.uk | 65

Data File.

Ask Lawgistics .com

Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £49.99 a year to get advice like this when you need it

Can we be taken to court after all this time?

Q

We have received solicitors’ letters relating to two disputes with a finance company we no longer work with. They relate to cars we sold in 2016. In one case, we were aware of an issue but disputed it with the finance company as we did not consider we had any liability to accept a return, and in the other case we weren’t even informed they had taken the car back! In both cases, they say they sold the cars at auction and incurred losses as a result. They intend to take us to court to recover the shortfall. Can they do this after three years?

When a car dealer enters into an agreement with a finance company, the contract between them will contain indemnity clauses to ensure the finance company is covered by the dealer in the event the finance company takes a car back from a customer following a complaint. The clauses will say the dealer is liable in situations arising in connection with the performance or contemplated performance

of the contract and shall cover loss arising out of: a breach of agreement by the dealer, any misrepresentation or statement made by the dealer and of any other act or omission by the dealer, for example.

This liability is also covered by section 75 of the Consumer Credit Act 1974, which provides that suppliers and creditors are jointly and severally liable for claims in respect of a misrepresentation or breach of contract.

As a car dealer, you are liable to give a refund or a repair in accordance with the Consumer Rights Act 2015 if it is established a car has a fault present at the point of purchase. Ideally, if a customer makes a complaint about a car they have purchased on finance, the creditor and the supplier agree a course of action between them depending upon the liability the supplying dealer may or may not have under the Consumer Rights Act. However, this doesn’t always happen, and finance companies have been known to sell at

ADVICE

A

auction and seek to recover their losses later.

The Limitation Act 1980 provides that a claim for breach of contract can be taken up to six years after the alleged breach, so to answer your question, yes they can do this three years later.

The argument is often that the indemnity in the creditor/supplier contract is the ‘bottom line’, and that the supplier therefore is liable to indemnify them against any loss incurred. However, if your agreement with them specifies the conditions of the loss arising from such as the examples given earlier, you may have a defence if no breach of contract or misrepresentation occurred in the case in which they took back the car.

Therefore nothing occurred to trigger the indemnity and you have no liability to pay their shortfall. It is also worth noting that where a finance company has accepted a rejection, for example where in fact the remedy offered should have been a repair, they may have failed to mitigate their loss in such cases, certainly if a repair would have been the cheaper option.

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR Claim your dealership’s FREE website audit!

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As the digital dealership experts in an industry in which inertia has been a long-standing problem for forward thinking, Click Dealer has continued to innovate to stay ahead of its competitors and provide products and services for used vehicle dealers before

they even know that they want them! n Make 2019 your year by ensuring that your website and digital showroom is the very best that it can be! Click Dealer’s team of in-house experts will look over your website and advise on any recommended changes to improve your visibility online! n At Click Dealer, we ALWAYS put our customers first! That’s why we’d like to offer Car Dealer Club members £100 off their first bill when they take out any of our products or services!

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66 | CarDealerMag.co.uk

A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.

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Warranty issues

WHY I LOVE LAWGISTICS

Q A

They have simply been brilliant.. I enjoy peace of mind for a small monthly fee

Do dealers have to supply warranties?

There has always been some confusion around this issue.

When a consumer purchases goods, they will be able to refer to the Consumer Rights Act 2015 in the event the goods are not as described, not fit for purpose or not of satisfactory quality.

A consumer has up to six years to bring a claim under the Limitation Act 1980.

However, it goes without saying that the longer the period of time since purchase, the harder it would be.

A warranty is not a legal requirement, though. Therefore, if you wish to provide a warranty, it could be for a six-month or 12-month period. It is at your discretion.

Any warranty must be subject to terms and conditions that enable your consumer to understand what is and isn’t covered. You will leave yourself open to interpretation if no terms and conditions are provided.

Furthermore, the writing of ‘no warranty implied or given’ does not alter the consumer’s statutory rights. The Consumer Rights Act 2015 will still apply.

NO matter how much care you take, it is almost impossible to go through life as a used car salesperson without occasionally having issues with customers – and as Mark Gates has discovered since becoming a Lawgistics member a year ago, having the team at your side can be invaluable.

Gates is an experienced car dealer who took over his dealership – Bourne Valley Autos in Andover, Hampshire – more than 20 years ago, having worked at smaller concerns beforehand.

Speaking of the increased relevance of Lawgistics’ services in the current landscape, he commented: ‘With the advent of the internet, everybody’s more aware of their rights and what they can and can’t do. In years gone by, you could shake hands and deal your way out of an issue, but today everyone’s quoting this and that.

‘I was getting a bit lost and a bit behind the curve. Another dealer I know said, ‘‘Listen, I give Lawgistics a certain amount a month and they look after me.’’

‘I thought I’d have a bit of that,

WANT TO UPGRADE?

and they’ve been brilliant so far.’

Gates described dealing with a wealthy customer who unreasonably threatened legal action recently, and said: ‘As a man who doesn’t have a history in law or anything like that, I didn’t really know what I was entitled to say and what I wasn’t.

‘My adviser Nona was brilliant.

It’s all gone quiet. It gives me confidence to go forward knowing that I have done the right thing.’

Like many customers, Gates also bounces situations off Lawgistics intermittently and enjoys the peace of mind that comes with having that option available to him.

And the dealer has been exceedingly impressed with the service so far.

He told us: ‘I’m not a big concern; I don’t employ a lot of people.

‘But if you do what I do, you want to be free to do what you’re good at as opposed to getting bogged down with the law and logistics. If you can pay a small fee to get someone to take care of that for you, it strikes me as a great deal.’

Adam Weller

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Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs, and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.

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LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £795) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,595). This is ideal for franchises, a dealer group or a car supermarket and covers all relevant legal areas and documentation.

There really is a package for everyone with Lawgistics.

To join go to cardealerclub.com or call 023 9252 2434 and speak to one of the Car Dealer team Fifty per cent off your first video shoot or PR package Video has become a must-have for dealers, with branded, broadcastquality video for corporate messaging and social media outlets now the industry standard.

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CarDealerMag.co.uk | 67

Auctions.

Make the most of the power of three.

Key Notes with Traka, p72

Pearson

AUCTION STATIONS

Manage the part-exchange process quickly and easily

W

NEW EVENT

LCV programme is expanded to meet customer demand

B

CA continues to expand its LCV sales programme with more multichannel events to satisfy buyer demand and support growing volumes.

New sales in Bridgwater and Leeds have quickly become increasingly popular, complementing the existing sales programmes at Blackbushe, Manchester, Measham, Glasgow and Wolverhampton.

The programme is now being expanded further with the launch of a new event at Paddock Wood. In addition to the physical events, BCA’s programme of online-only LCV auctions has gained significant traction in 2019, with branded sales providing buyers with even greater choice.

As confidence in transacting remotely continues to grow, BCA’s Buy Now and Bid Now channels are also seeing growth as

their 24/7 availability satisfies those who need to make an immediate purchase.

The company has also staged a series of successful specialist sales in 2019 supporting the ultra-low-emission market, focusing on Euro 6-compliant vehicles and EVs, with further events planned throughout the year.

Stuart Pearson, chief operating officer of BCA’s UK remarketing operation, said: ‘We continue to provide customers with more choice and make it easier to do business, launching additional LCV sale events to complement the already extensive programme we have in place.’

With multi-channel events taking place daily, customers have options to satisfy all of their buying and selling needs in the remarketing environment of their choice.

Firms build on three-year relationship SANTANDER Consumer Finance (UK) plc has expanded its remarketing partnership with Aston Barclay via the addition of monthly sales at its state-of-the-art Wakefield site.

The development, which builds on the highly successful three-year remarketing Car dealer newinstrip Revised partnership already place at ad Aston

Barclay’s Prees Heath site, which achieved 100 per cent conversion throughout 2018, will see a dedicated Santander Consumer Finance (UK) plc sale take place on the second Friday of every month at Wakefield.

Each sale will include circa 50 high4/4/18 12:01 Page 1 specification, ex-fleet vehicles.

Fixed cost buyers premium User friendly website & stock locator. On-line bidding

Professional Vehicle Auctions for Professional Vendors & Buyers

68 | CarDealerMag.co.uk

Stuart Pearson is BCA UK’s chief operating officer for remarketing. Visit bca.co.uk or call 0345 600 6644.

Excellent variety of weekly stock from premium sources

The Fleet Auction Group

www.fleetauctiongroup.com

ith fewer customers stepping through dealership doors these days, it’s important for dealers to be able to offer a quick and efficient valuation process on a part-exchange vehicle. It is also important that this does not add to the proliferation of systems a dealer is expected to use, but fits in with existing processes.

BCA Dealer Pro is an easy-to-use car appraisal app that allows for the part-exchange process to be managed quickly and easily. Using a simple guided process to appraise, image and then accurately value part-exchange vehicles, Dealer Pro captures all the information needed that allows deals to be done with confidence and is powered by BCA Valuations.

BCA Valuations is the only service that reflects remarketing sale values in real time using a range of insight to inform vehicle valuations, including cosmetic and mechanical condition, colour and equipment. The service uses fully automated machine-learning algorithms every night to calculate fair and unbiased valuations, based on 200 distinct data points across five million real transactions.

Once the car’s information is entered into the system, BCA Dealer Pro can offer market values to the user, allowing them to relay accurate and dependable prices back to the customer. For non-retail stock, Dealer Pro has already captured all the information needed to start the remarketing process. Vehicles can then be sent directly to the BCA online catalogue straight from the device.

Last year was a transformational year for the Dealer Pro service, with more than two million vehicle appraisals and valuations conducted and the launch of the Dealer Pro app free to download in Google Play and the Apple App Store.

BCA also integrated Partner Finance to the app.

There are huge benefits from getting the appraisal of a vehicle right first time. Choosing the right tools for the job help to ensure a consistent approach that will drive sales, build customer confidence and help to close deals profitably.

With used cars driving profitability, getting the price right has never been more critical.

Fleet Car Sales every Tuesday at 1pm & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 10am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 15 acre auction complex Enclosed and heated auction halls and viewing area Vehicle refurbishment facility The UK’s finest auction restaurant Central UK location (Leicestershire) NAMA Vehicle Grading

Call 01530 833535 or go online for account application

Taking Stock.

Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead.

Volatility eases amid signs of more typical seasonal trading Improved quality of the product on offer in the part-ex sector is helping to keep values firm, says Stuart Pearson, chief operating officer for BCA’s UK remarketing operation.

T

he headline used car value at BCA increased in June, with the average value of £9,463 representing a £201 uplift equivalent to a 2.2 per cent improvement over the month.

While average values for fleet & lease cars were in line with the previous month, dealer partexchange values lifted by nearly one per cent and nearly-new values climbed by 7.9 per cent compared with May, with a richer mix of product entering the market.

The market volatility seen in previous months started to ease as the month of June progressed and created a feeling that more typical seasonal trading was starting to resume.

Fleet & lease values averaged £11,372 at BCA in June, ahead by just £2 compared with May, but up by £174 (1.6 per cent) compared with a year ago.

The retained value against original MRP (manufacturer’s retail price) was down by more

than two percentage points when compared with 2018, largely as a result of both age and mileage at the time of sale rising compared with a year ago.

Dealer part-exchange values rose for the second month running at BCA with a £44 improvement in June 2019 compared with May. Year-on-year, values for part-exchange vehicles at BCA improved by £200 – equivalent to a four per cent uplift.

The improved quality of product on offer in this sector is helping to keep values firm, with average age and mileage decreasing compared with June 2018.

Values for nearly-new vehicles at BCA rose to their highest point this year, climbing by £1,722 over the month to reach £23,481 – a 7.9 per cent increase compared with May 2019.

Model mix has a significant effect in this low-volume sector, with brand-specific winners and losers.

Headline used car value :

£9,463

‘Exceptional interest’ BCA reported exceptional demand for luxury, premium and executive cars at a specialist Top Car Sale at BCA Nottingham in June.

The event saw a record-breaking 488 vehicles sold on the day, generating proceeds of £10.5 million from an 85 per cent sale conversion. More than 1,500 bidders logged on to bid via BCA Live Online – the highest digital bidding audience ever recorded for a BCA Top Car Sale.

With a further 100 buyers in the auction lanes and a highly competitive bidding environment, 227 BCA customers purchased on the day.

Stuart Pearson, chief operating officer of BCA’s UK remarketing operation, said: ‘This was an exceptional sale result that demonstrated the confidence our buyers have in BCA Live Online, BCA Assured and our appraisal and grading processes.’

CarDealerMag.co.uk | 69

Market Insight.

...in association with ASE-global.com

Pictures for illustrative purposes only

Huge announcements in June make it a busy start to summer Share prices of motor retailers and associated services were significantly affected, reports Mike Jones.

J

une saw a number of huge announcements that had a serious impact on the share prices of motor retailers and associated services. First we had the announcement from BCA that it was recommending shareholders accept an offer to take the business private.

Next up was Lookers, which announced that the FCA was conducting a review of its regulated activities. This was then followed by Pendragon announcing that the CEO had left after less than three months in charge.

While the BCA news was clearly good, the other two announcements produced significant drops in the motor retail share prices.

Share price performance The movements shown in the table on this page are probably the most volatile we have seen in recent years. The Lookers announcement of the FCA’s review produced a 40 per cent drop in the share price. The challenge with this review is twofold. Firstly, and for definite, the review is going to take a while, and there is no timetable for resolution, which is likely to run into 2020.

Secondly, the estimates of the likely financial impact vary widely. There is very little clarity on the issues found which are being investigated, and given that none of the public limited companies give huge disclosure over the finance revenues they generate, these numbers are having to be investigated.

Share price movement during June 2019

Share price movement since the start of 2019

Pendragon

-28.9%

-27.6%

Vertu

-1.0%

14.0%

Lookers

-40.6%

-44.8%

Inchcape

5.1%

11.7%

Cambria

-7.1%

8.3%

Caffyns

0.0%

9.3%

Marshall

-9.9%

3.2%

Motorpoint

10.3%

11.5%

BCA

34.1%

10.4%

Auto Trader

-8.6%

20.4%

While the company may receive a discount for disclosing the failings, investors are currently having to guess the financial impact. This has produced uncertainty for the remainder of the motor retailers, which saw drops in their share prices as well. This was compounded for Pendragon with the news around the departure of the chief executive, which is covered elsewhere in this edition of Car Dealer.

Financial performance After a rush of announcements over recent

months, June proved quiet, with the only results being Caffyns’ announcements of its final results for the year ended March 2019.

The results showed growth in underlying profit before tax, but an overall loss for the year, principally as a result of property write-downs and pension adjustments.

Other announcements I’ve discussed the majority of the announcements already, given the impact they have had on share prices in the month. BCA’s directors announced that they were recommending a take-private offer from private equity.

While this offer was at a significant premium to the prevailing share price, this was only a small premium to the price at the start of the year.

It looks as though we will shortly be losing one of the listed associated services companies from the Stock Exchange.

Aside from that, there were rumours in the press that Inchcape was looking to dispose of 20 per cent of its UK dealerships. While the UK managing director disputed the accuracy of the article on my LinkedIn profile, there has been no clarity on what Inchcape is disposing of or a denial that it is in a disposal process. It told Car Dealer it was ‘committed to informing our colleagues first whenever changes are proposed’ and I would expect further updates over the coming months.

Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month.

70 | CarDealerMag.co.uk

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Key Notes.

...in association with Traka

Take a look at what you could gain with the power of three A way to combine Facebook advertising with interactive messaging could be here soon, says Paul Smith.

I

was lucky enough to be able to take a few minutes away from the Traka Automotive stand at CDX this year to venture to the other side of the corridor and listen to Aiden White, Facebook’s client solutions manager of automotive. White gave a very well-attended workshop presentation on the power of messaging to gain customer engagement and help customers find the right car.

He handed out a few hints and tricks for using Facebook (FB) and Facebook Messenger to engage new customers and re-engage existing ones. His most powerful vision was the idea of using Messenger to take a young car buyer from a declared interest in a brand to the point of specifying and configuring the right car and getting the sale agreed – all via FB Messenger.

FB, as we all know now, has more data on the buying behaviour and preferences of digitally engaged consumers than any other social network. It now owns three of the largest messaging networks in the world – the other two being WhatsApp and Instagram – which together gives it 2.6 billion users worldwide. The UK alone has 33 million regular Messenger users.

What’s even more interesting is that FB has publicly declared that it intends to smash these three messaging services together, which will of course make messaging a far more manageable (and arguably more cost-effective) marketing platform for dealers. We should see the new combined FB-led messaging platform reach marketers by the middle of next year.

To quote Mark Zuckerberg directly from a post he issued in March: ‘As I think about the future of the internet, I believe a privacy-focused communications platform will become even more

important than today’s open platforms. I expect future versions of Messenger and WhatsApp to become the main ways people communicate on the Facebook network.’

This is a major shift for FB, because right now its core social network isn’t centred around private messaging, nor is Instagram’s. Both are about broadcasting your life to friends and family, occasionally connecting with strangers, brand influencers and brands themselves.

Facebook’s entire business is built on user profiles that include lasting information, ie, what you’re interested in, where you live and who your friends are. That’s important information that supports Facebook’s highly targeted advertising business. Now Zuckerberg plans to move away from that, at least eventually. In his post, he talked about why people like private networks and the intimacy they provide.

‘People are more cautious of having a permanent record of what they’ve shared,’ Zuckerberg wrote. ‘I believe the future of communication will increasingly shift to private, encrypted services where people can be confident what they say to each other stays secure and their messages and content won’t stick around for ever.

This is the future I hope we will help bring about.’

The idea behind this initiative must also be to tie users into FB for longer, thereby finding out even more about our interests and preferences based on our browsing and online buying behaviour – data that can be put to work by car dealers to target customers even more accurately and potentially cost-effectively from next year.

White didn’t talk about the high-level messaging service unification project specifically but about the potential to use all three messaging services today to put highly targeted ads in front of users, even extending to distributing an entire visual inventory of cars that you are offering right now to prospects who are already spending a good deal of time on these channels and are in your target customer base.

White also spoke about the power of combining FB’s ability to target the right type of customers (ie, owner-occupiers living within 20 miles of your dealership) with your own CRM data. So could this mean that the combined data would enable you to target those living within 20 miles of your dealership who bought a Land Rover Discovery from you two years ago and might now be interested in moving to a new car sometime during this summer? (Possibly even based on current browsing behaviour?)

A highly targeted message showing a video and images of the latest Discovery model which is set to reach your PDI centre in the next few weeks might lead to an engagement leading to a sale. Could these customers even be offered a test drive via their messaging service of choice?

When you stop to consider how much more powerful the combined messaging platform will be from next year, at the very least it’s worth a closer look with your marketing team.

Paul Smith heads Traka Automotive, part of the Assa Abloy Group brand Traka. Assa Abloy bought the electronic key management software provider eTag Solutions, which was founded by him. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.

Keys can make you money…

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15/12/2016 09:56

Sean Speaks.

...in association with Close Brothers Motor Finance

Keeping ahead of the ‘summer slowdown’ How can you buy, manage and sell stock effectively this season? Sean Kemple has some answers.

T

he summer period is often cited as a low point in the year for retail sales. However, the used car industry statistics actually tell quite a different story.

Over the past four years, July and August have seen an increase on May and June’s figures, with a similar number of used cars sold in high summer as in the springtime months of March and April. So the good news is – we’re in a particularly strong period of the year, with plenty of opportunity for dealers to boost their profitability. The key to success is simple – it all hinges on buying the ‘right’ stock. If you get that right and manage that stock effectively, the cars will sell themselves!

Let’s run through a few of the secrets to summertime sales success.

Buying Understanding your marketplace is the most crucial stage of the purchasing process, whether that’s wholesale, part-exchange or from trade sources. You need to know where the demand is – and, equally, what makes and models your market might be saturated with.

Understanding what price the car you’re buying will retail at and what will shift it from the forecourt will allow you to buy the right stock at the right price.

Consider a ‘retail back’ approach instead of the traditional ‘trade up’ method. Just in case ‘retail back’ is a phrase that’s new to you, it involves a bit of mental maths when you’re sourcing stock.

If you like the look of a particular car and are considering buying it, think about how much you would retail it for before getting your hands on it. Is there enough of a margin to secure you

a decent return? Try it! It works for many of the dealers we talk to on a daily basis.

There are a number of tools to help you buy and obtain stock – make sure you’re using them.

Managing Once the stock has arrived on your forecourt, ensure you have an effective pricing strategy.

Don’t become emotionally attached to the vehicles (it’s easy to do!) – you need an absolute black-and-white approach to managing your stock.

For example, consider adopting the ‘profit-turnrelease’ approach: Profit: Maximise your potential profit on a vehicle by shifting it in the first 20 days. Only understanding the demand in your target market (and availability of similar stock in your local area) will allow you to achieve this.

Turn: If the vehicle doesn’t sell in 21-40 days, review the price to take into account any market shifts and amend accordingly. Vehicles move faster when priced at 98 per cent of the retail market price.

Release: If the vehicle still hasn’t sold in 41-60 days, take the same approach as the ‘turn’ phase and explore potential trade-outs.

It’s important to remember that consumers don’t necessarily search by price, they search by perceived value. It’s a leading indicator in the purchasing decision journey.

Selling Maximise your digital and physical forecourts and do all you can to promote confidence in your business with your customers. Online, you could include reviews, images and videos of the vehicles you’re selling, while social media activity

will help you reach even more people. Make sure you explain how potential buyers will be able to purchase a vehicle. Provide information about point-of-sale finance, cash payments and other options.

Try to maximise the value of the vehicles you are selling. Make sure you are focused on attention-grabbers when using third-party classified sites. Tell the story of the vehicle, ensure you’re pulling out the key selling factors/ USPs and utilising all digital real estate.

Acknowledge that your customer will know the value of the car you’re selling better than you do because of all the research they’ve done.

Your customer will be aware of your competitors selling similar vehicles.

If your online activity is effective enough, you’ll find that customers actually arriving at your dealership are in the main ready to buy.

If your physical forecourt looks as sharp as your digital forecourt, a summertime sale should be within your grasp!

And finally…

An effective strategy for buying, managing and selling stock is crucial in today’s world of automotive retail. Large retailers in other industries will select products to display on their shop floor and measure profit per square inch. If products aren’t selling, they will move them off and replace them pronto – the same approach should be applied to automotive retailing.

This all seems just like best practice and is probably sub-consciously how you already run your business day to day.

Be mindful of getting the basics right and you’ll enjoy a successful summer.

Sean Kemple is director of sales at Close Brothers Motor Finance, one of the UK’s leading providers of motor finance. The company works with over 8,000 dealers and provides finance for new and used cars, LCVs, motorcycles, caravans and motorhomes. Go to closemotorfinance.co.uk to find out more.

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Recruitment.

HYUNDAI

Sales director Rob excited to be joining manufacturer HYUNDAI has appointed Rob Turnbull as its new UK sales director.

Turnbull, who has worked for BMW Group since 2000 and most recently held the position of head of sales at Mini, stepped into his new role in June. He reports directly to managing director Ashley Andrew.

Turnbull, right, an accountant by trade, boasts more than 20 years of automotive, sales and retail experience, having worked in a number of senior roles across the BMW Group. He started out at Rover in 1992 based at Plant Oxford.

‘I am really excited to be joining Hyundai at what is a critical time for the UK business as well as the UK industry,’ he said.

‘Over the last 10 years, I have witnessed the most incredible transformation of the Hyundai brand – it has moved from a challenger to a formidable top 10 player.’

Andrew said: ‘We are thrilled to be welcoming Rob to the team.’

ASTON BARCLAY

New manager for firm’s Wakefield super-centre

A

ston Barclay has appointed Karl Ward as manager of its state-of-the-art Wakefield ‘Northern Powerhouse’.

Ward has been in the vehicle auction and remarketing industry since 2006, most recently as remarketing manager at Ogilvie Fleet Ltd, where he had control of all remarketing divisions.

In this role, he worked closely with Aston Barclay, selling more than 2,500 units across four of its five sites.

Before his role with Ogilvie, Ward was head of operations and sales including senior auctioneer at British Car Auctions’ Leeds site, previously SMA and, before that, Premier

Motor Auctions, when the Leeds site was the largest independent auction centre in the UK. Ward has worked across a variety of business roles, including operations, sales and centre management and, coupled with his experience as a vendor, has built up a solid

understanding of the processes and service requirements of all stakeholders.

As the manager of the group’s newest and most technologically advanced centre, Ward will build on the successes achieved since the Wakefield site opened in January 2019 and will continue to deliver Aston Barclay’s stated goal of ‘connecting customers to cars’.

Neil Hodson, chief executive at Aston Barclay Group, said: ‘It is fantastic to welcome someone with Karl’s experience, insight and enthusiasm on board to head up our Wakefield centre.’

In our picture, Ward, right, is welcomed to his new role by Martin Potter, group managing director of Aston Barclay.

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Data file.

James Litton

TRADER TALES

Sights and smells of auctions are never to be forgotten...

J

oining the National Trust is a rite of passage for any middle-class man with a wife and two young children.

There is something exciting about thumbing through the dog-eared handbook with the same approach as dealing in football stickers on the school playground; been, been, not been. For me, auction centres have similar sensory experiences and an addictive allure.

In both cases, nervous energy is palpable as you approach the venues – the sense of anticipation of what you are going to see; the odd excitable child behaving naughtily, quickly admonished by their guardian; overpriced cafés making a fortune, limp bacon in the case of the auction, volcanic jacket potatoes at the National Trust.

Like a National Trust landmark, each auction centre has an identity and sense of culture unique to that place, and while this is not based on a famous family spending a bank-breaking amount of money on a walled garden or folly dedicated to a secret mistress, it is formed by architectural nuances and quirky regulars.

I can still vividly remember my first visit to Blackbushe as a 10-year-old with my mum and dad.

My dad told me in the car about the first time he went as an apprentice mechanic in the 1960s.

He said: ‘We used to have temporary trade plates in those days, and you were only allowed to use the car between the start point (Blackbushe) and the end location (Somerset). We bought a VW TL Fastback and they asked me to drive it home. When I put the plates on the car, my boss had put ‘‘Somerset – if possible’’ on the plate. This didn’t inspire me.

Anyway, even as I left Blackbushe I could tell the clutch was slipping, and with 100 miles to go I prepared for the worst.’

Those with knowledge of the A303 will know of the big hill outside of Hindon in Wiltshire. Hills are no friend of clutchless cars. He continued: ‘As I started my ascent up the hill, I was reminded of the scene in A Bridge Too Far where Robert Redford crosses the Waal river in a flimsy wooden boat. Staring down German artillery in broad daylight, and with water exploding all around him, he just keeps repeating ‘‘Hail, Mary, full of grace’’ over and over.

‘Like Redford, I just made it.’

The sights, smells and atmosphere of an auction are once seen, never forgotten. Lung-filling fumes hung in the air, as did the odours of some of the patrons. I loved it.

I didn’t necessarily love the sky-blue Metro that the old man bought – it got as far as Basingstoke before it cooked up and had to be brought home on a wagon – but hey, as an old sage once told me, we buy cars to keep us, not for us to keep.

‘I can still remember my first visit to Blackbushe as a child.’

James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves.

76 | CarDealerMag.co.uk

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Sales manager got soaked as I did a couple of deals

F

amily fun days. Love ’em or hate ’em, they do seem to pull in the punters. To be honest, I’m surprised they still do, but book a bouncy castle and someone to cook a hog roast and, in my experience, you’re more or less guaranteed a good turnout. You might even sell a few cars to offset the cost!

I’ve been involved in quite a few in my long career in the motor trade. Some have been pretty elaborate and quite successful while others haven’t quite hit the mark.

One I particularly remember was about 15 years ago when I was a young, keen sales executive. I was doing my best to shift as much metal as possible but getting nothing but grief from the sales manager.

It just so happened that we had one of these fun days in the diary for a Saturday in July ... and as the date drew ever nearer, I was dreading it, to be honest.

Would I have to serve hot dogs to snotty kids, blow up balloons, organise a tombola or raffle or something even more corny? I was about to find out...

‘Here you go mate, you’re doing this.’ With that, my annoying sales manager presented me with a set of fake old village stocks that would have been used to punish ne’erdo-wells back in the day.

‘It’s a soak-the-bloke-type thing,’ he continued. ‘Don’t worry, you won’t be in it all day. We’ll take turns.’ Great.

Being pelted with wet sponges didn’t appeal at all.

The big day arrived and the weather was in our favour.

I took my position in the stocks but actually the attraction wasn’t that busy so I wandered off to get a hog-roast baguette. Big mistake. I must have eaten it too quickly and I could feel rumblings of discontent in my stomach.

‘Dave,’ I said to my sales manager, who happened to be passing by just as I needed a rather urgent comfort break (not his real name, I hasten to add).

‘Please stand in for me for a bit! I don’t feel too good.’

He agreed (a kind gesture to be fair) and I disappeared.

About 10 minutes later, I was walking back to the stand and I noticed it had suddenly got VERY busy. Dave was drenched – and probably couldn’t see me as his eyes would have been full of water.

‘Well, he’s probably enjoying that,’ I thought. ‘It’s a hot day after all and he does think I’m ill...’

I took the chance to talk to a few punters (I even sold a couple of cars) and relieved him about an hour or so later.

That was one bloke who was well and truly soaked!

‘Would I have to blow up balloons, or organise a tombola or raffle?’

Tell us your story

Have you something to confess? Email us on editorial@blackballmedia.co.uk or post it on our forum – cardealermagazine.co.uk/forum CarDealerMag.co.uk | 77

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LATEST FROM THE FLEET...

Volvo V90 T8 Our time with this superb Swedish motor has come to an end – but James doesn’t want to let it go...

by JAMES BAGGOTT @CarDealerEd

I

’m coming to the end of my time with the glorious Volvo V90 T8, so before it rolls off silently into the sunset I thought now would be the perfect time to look back at a few things I’ve learnt about hybrid car ownership.

Now, I went into this with my eyes open – knowing I’d have to be pretty strict with my charging regime. The T8 has an electric battery set-up that takes around four hours to recharge from a three-pin plug, giving a full charge that’s enough for around 25 miles of moderately exuberant use.

When the car is running on electric power alone, it’s an absolute dream.

Silent, swift and calming, it dramatically affects the way you drive. There’s no full throttle starts from the lights, or heavy braking, instead everything is done as if there’s an egg under the throttle pedal. I end up playing a game with myself while driving which I lose if the petrol engine kicks in – something that happens when you stab at the go-pedal a little too hard.

So has this increased my fuel economy? Well, it’s certainly got better over the 8,000 miles I’ve spent in the car. I’m up to an average of around 40mpg now, but that’s been registered following a sustained period of town use where I’ve been charging pretty much every day.

If I head off on a longer motorway journey, one that will deplete the battery mileage far quicker, that fuel economy plummets to the low 30s. This is most certainly not an alternative to diesel on a long motorway journey, that’s for sure.

It really is quite satisfying and one of the most pleasurable cars I’ve ever ‘owned’. Living with the V90 really has been an utter delight. I’m a firm believer in estates and think they’re far more practical and enjoyable to drive than the SUVs that have overtaken them in popularity.

Why? Well, they handle better, look smarter and you can stuff them with all the junk modern life generates and it’ll disappear.

In fact, I’ve long thought that at some middle point in the Volvo’s interior there’s an access to a portal to another dimension, because no matter what I put in the back, it swallows it up. Double bed frame? No problem. Scaffolding poles (don’t ask)? No problem.

High praise indeed – James says the Volvo V90 T8 could even be the best car on sale today

THE KNOWLEDGE Model: Volvo V90 T8 Twin Engine Price (as tested): £70,240 Engine: 2.0-litre petrol, electric motor Power: 390bhp Torque: 400Nm Top speed: 155mph 0-60mph: 5.0 seconds MPG (combined): 141.2 Emissions (CO2): 46g/km Mileage: 7,894 THIS MONTH’S LOWLIGHT: Preparing to say farewell to a car that has been a complete delight to live with.

An eight-year-old’s teddy bear collection and luggage requirements for a trip to the seaside? A slight struggle, but still eaten whole.

The boot is absurdly big and hasn’t once left me in the Ikea car park scratching my head wondering how I’m going to get the 150 white wooden hangers (they were on offer), new sofa and 50p hot dog inside.

That might be because it’s Swedish and the two firms have got ‘an agreement’, or it could be the fact it’s just very, very big.

It hasn’t all been sweetness and flowers, though. As much as I love the huge screen display that controls pretty much everything in the car, it’s not without its glitches. Lately, CarPlay has become particularly useless on it – randomly playing different songs to the ones pictured and refusing to read out text messages. I can’t really blame Volvo for that, as it’s probably Apple’s

fault, but I do anyway. Occasionally, the brilliant 360-degree bird’s-eye parking camera view has lost connectivity to one lens, meaning a blind side on the display. It works 95 per cent of the time, but it’s a frustrating glitch the rest of the time.

While I love the Volvo OnCall app that lets me check the charging time, set the sat nav in advance of my travels or, importantly on cold or hot days, start the air conditioning before I get in, it has an annoying habit of telling me the car has been unplugged three seconds after I unplug it. However, that said, the fact it lets me remotely lock the car from my phone when I’ve forgotten has saved me a number of pointless trips back to the car.

More recently, the door handles have been playing up too. The car has remote entry, so it senses the key in your pocket and unlocks the car when you slip your hand behind the handle.

Well, at least that’s the idea, but it’s often forced me to pull the handle five or more times before opening.

Those really are only minor gripes and I stand by my previous statements that this is one of the best cars, if not the best car, on sale today.

It’s far more handsome than the German rivals, incredibly comfortable and I love the tech.

The multimedia system is the easiest to use on the market today, and despite the huge cost I really would argue it’s worth the money.

Let’s face it, no one buys a car outright any more, and with a decent PCP deal and good residual values, the T8 could actually be an incredibly tempting choice for many family car buyers.

CarDealerMag.co.uk | 79

Long-termers.

LATEST FROM THE FLEET...

Ford Focus Vignale Ted goes on a voyage (or drive) of discovery and is impressed by what he finds technology-wise.

by TED WELFORD @TedWelford

S

ince when did a Ford Focus become so posh? Not so long ago, just having electric rear windows or dual-zone climate control would make your hatchback feel top of the range.

But times have moved on a lot in the past few years, with buyers now wanting more and more from their cars – regardless of what they are.

That is clearly why Ford felt the need to produce this upmarket Focus Vignale in the first place – Vignale having been launched a few years ago as Ford’s exclusive sub-brand.

At first it was only Ford’s largest models available in this trim – the Mondeo, Galaxy, Edge SUV, etc – but in recent years, Vignale has worked its way down to cheaper models such as the Fiesta and the Focus, which is the long-termer on test here. It was my first Vignale experience when the regular custodian of the car, one Car Dealer Dave, kindly tossed me the keys to ‘their’ range-topping Focus for a rather hectic weekend of travelling around the UK. I’ll admit I spent much of the time slowly exploring the many features fitted to it, and I still don’t think I’ve discovered them all.

There’s kit on this Focus that wouldn’t look out of place on the most expensive of Range Rovers.

Take, for example, the head-up display, which discreetly pops out from the dash just above the steering wheel. I didn’t even realise it was there until I started messing with a few buttons at a set of traffic lights. Then there’s the full ‘Vignale’ leather trim with contrast stitching.

Sure, leather is hardly anything new, but this leather certainly feels a notch above the ‘faux’ stuff you seem to find in many cars – even some of the premium German marques.

As I kept exploring, I uncovered adaptive cruise control, the full B&O premium sound system, heated steering wheel, heated front seats... The list of features could go on and on.

There’s so much technology and luxury on the Vignale that it’s hard to get your head around it all. That’s all part of the fun, I guess, and a long way from the sparse ‘CL’ and ‘LX’ grades that you found on the original Focus.

All in all, then, I was thoroughly impressed – up until the point I discovered the spec sheet in 80 | CarDealerMag.co.uk

The alloy wheel protectors fitted to the car should eliminate any risk of kerb damage

THE KNOWLEDGE Model: Ford Focus Vignale 5-door Price (as tested): £31,900 Engine: 1.5-litre EcoBlue diesel engine,

eight-speed auto Power: 148bhp Torque: 370Nm Max speed: 129mph 0-60mph: 9.1 seconds MPG (combined): 51.4mph Emissions (CO2): 121g/km Mileage: 3,601 THIS MONTH’S HIGHLIGHT: Exploring the incredible wealth of features Ford has packed into this car. the glove box. There was a bit of a fright in store for me as I found out the price.

All this luxury is lovely, but perhaps not so much at £31,900, which is what our car costs.

That could buy you a very high-spec Mercedes A-Class, even a C-Class and also a Hyundai i30 N hot hatch with several thousand pounds to spare. Or perhaps more pertinently, it’s only £95 cheaper than Ford’s new ST hot hatch (our car has a 148bhp 1.5-litre diesel engine, to put things into perspective).

But moving on, what else has been happening in EF19 YPC’s life recently? If you look closely at the pictures, you might notice the 18-inch alloy wheels have some new red decoration – or alloy wheel protectors.

While clashing rather with the Ruby Red paint job (exclusive to the Vignale), they’re there for a good reason – to help prevent kerbing damage.

I should point out that it’s not because we have no faith in the other members of our team who might be driving the car, but rather for a video feature we’ve been filming on how to avoid

parking dings and damage. Elsewhere, the Focus has been on home improvement duties with Dave, who has drafted the Focus into action to help take some old carpet to the tip. It’s also assisted in helping him choose some new floor coverings – hence why the bulky carpet books are pictured in the Focus’s boot above.

So after plenty of miles in the Focus Vignale, I came away admiring all its tech and luxury, as well as having enjoyed the excellent driving experience. However, you can’t help but think the price is just a bit too ambitious.

OTHER CARS WE’RE DRIVING

Mercedes X350d Power Mileage: 4,018 Jack Evans is enjoying the comfort levels of this big pick-up, while its imposing go-anywhere character is hard to ignore. He’s also impressed by its silky V6 engine and long list of standard kit.

Skoda Fabia Monte Carlo It’s time for KY68 WXB to leave our care. What’s our verdict after several months behind the wheel?

by RYAN HIRONS @RyHirons

S

aying goodbye can be a hard thing. Be it to your brother who lives in Spain flying home after Christmas, that beard you’ve finally given up on after three weeks of telling yourself it’s growing, or the last slice of a pizza left in the fridge that you really should have thrown away yesterday.

Now, in my possibly enviable position of having a new car in on test pretty much every week (humble brag, sorry), it’s not something that tends to apply with me for a car. The normal procedure is as follows: A car arrives, gets driven for a week or a few months, and goes back without so much as a second thought.

Things were a little different this time around, though. With a large chunk of my last six months spent behind the wheel of ‘our’ Skoda Fabia, the day had come for the keys to be handed back.

I may not have gone so far as to hold on to them as, say, a 13-year-old boy might his Xbox controller had he been on the cusp of a Fortnite ‘Victory Royale’ just as his mum tells him it’s teatime, but passing the car to the collection driver did make me feel a bit sad inside.

From the perspective of a level-headed professional, the Fabia certainly isn’t the best in its class — particularly considering the £20k spec KY68 WXB was sporting. It’s not as engaging to drive as a Fiesta, as comfortable and refined as

At the (expensive) heart of KY68 WXB lies a practical, frugal and recommendable car, says Ryan the latest Volkswagen Polo or as stylish as a new Renault Clio. But on a personal level, it ticked all the boxes for me.

Finished in that grey/black bi-tone colour, complete with Monte Carlo trimmings, it looked pretty impressive. Perhaps even more crucially, I picked a girl up for a date once in the car, and she described it as ‘dead cool’. Being in my early 20s and spending most evenings alone cooped up with a Pot Noodle and FIFA, I appreciated this moment more than most.

I also live in Portsmouth — a city notorious for jammed traffic, impossible parking and Deliveroo riders flying about left, right and centre. A car with a reasonably weighted clutch, direct steering and excellent visibility is something I crave.

The Fabia provided those to a T — particularly on the visibility front, which for me is better as a result of it being on an older platform compared with its VW Polo and Seat Ibiza stablemates, which sit on the newer VW MQB A0 platform.

It wasn’t without its faults, though. I’ll come back to that price tag — £20,065 to be precise. I

don’t think any customer at a Skoda dealership would ever have to pay that, admittedly after a bit of haggling and some good finance deals, but for a car missing cruise control, a decent infotainment screen and powered by a weedy little 94bhp engine, it’s just too much to ask.

The Fabia works best as a lower-spec, more affordable car. Monte Carlo trim is appealing, but at its price there are better deals to be had on a new Ford Fiesta ST-Line — and there’s no contest there really.

Ultimately though, our time with the Skoda Fabia has proven joyous, and at the (expensive) heart of KY68 WXB lies a practical, frugal and recommendable car. Just don’t go crazy on the options if you’re in the market for one.

THE KNOWLEDGE

Mazda6 Tourer

Kia Ceed SW

Mileage: 11,949

Mileage: 11,205

Service time has just passed for VA18 CRZ, and everything went smoothly during a trip to Snows Mazda Portsmouth. It was a dealer experience we’d be happy to, er, experience again.

Ted has waved goodbye to our Kia Ceed SW, which never put a foot wrong. Most noteworthy for him was its ability to handle his weekend valeting gear with ease, and the superbly comfortable ride.

Model: Price (as tested): Engine:

Power: Torque: 0-60mph: Max speed: MPG (combined): Emissions (CO2): Mileage:

Skoda Fabia Monte Carlo £20,065 1.0-litre three-cylinder turbocharged petrol 94bhp 160Nm 10.6 seconds 114mph 61.4 106g/km 7,056

THIS MONTH’S LOWLIGHT: Saying a fond farewell to KY68 WXB. CarDealerMag.co.uk | 81

The last word JA M E S B AG G OT T

Against our better judgment, we give our CEO the final say each month

Mixed messages from an industry crossing its fingers for Halloween

T

he headlines made for uncomfortable reading at Pendragon HQ. Chief executive Mark Herbert had ‘driven off into the sunset’ just three months after taking charge of the listed dealership group. The puns in the papers were plentiful, but they wouldn’t have softened the blow.

Exactly why the new man left the business so early into his tenure is still unclear. Reports suggest it was a brutal disagreement on how to turn the company around, but no one apart from those inside the boardroom knows for sure.

Pendragon operates the Evans Halshaw, Stratstone and Car Store brands and is heavily invested in a used car strategy with Car Store, but Herbert was a new car man. The talk is that a disagreement on strategy between Herbert and Pendragon’s chairman led to an irreversible clash.

To make matters worse, Herbert’s departure was a blow that came just a few weeks after Pendragon issued a profit warning.

The statement said Pendragon was set to return to profit in its second half, but dire half-year trading had put it on course for a small annual loss.

Doesn’t make for pretty reading does it?

I spoke to Mike Allen, head of research at Zeus Capital, about how to fix a problem like Pendragon and in a frank phone call he told me the business needed a radical ‘culture change’ and desperately needed to improve its OEM relationships.

‘The used car strategy is not working, but they seem to want to stick with it,’ said Allen.

‘The question is really “just how big should a dealer group be?” Pendragon arguably got too big after 2007, struggled with a series of big acquisitions and failed to integrate them properly. They over-expanded, damaged relationships and are living with that pain. They need a shake-up of the management team.’

Some rival dealer bosses I’ve spoken to think time could ultimately be up for Pendragon.

One cited huge wage bills the firm had been saddled with for its senior team which had strangled it.

Another added it had all but used up the £300m it raised in a sale and lease-back deal of its property in 2007 – constructed then to raise funds after the crippling purchase of Reg Vardy for £504m.

Mike Jones, chairman of accountancy group ASE, thinks it’ll be a tough problem to fix, but not impossible. ‘It needs a team at the top, not just one person, who can lead a strategy of change,’ he said. ‘Pendragon needs a special person, one who can build a team around them.

‘Ultimately the car business is about people and without good people it struggles.’

So are Pendragon’s issues endemic of an industry in peril or is there light at the end of the tunnel? Well, that depends on who you speak to. My contacts have mixed views. Some dealer chiefs are telling me that quarter two has fallen off a cliff. New car sales have plummeted, used car sales are tougher than ever, and as the summer hots up, so too does the heat under dealership bosses.

Elsewhere, the wider industry paints a muddy picture. In what weathermen would describe as a ‘muddled forecast’, the signs are conflicting depending on where you look.

Jaguar Land Rover is the most confusing of the lot. A week or two ago, the firm announced investment in its Castle Bromwich site to build an electric version of the next XJ, while just a few days later revealing tumbling global sales, down 11.6 per cent to 128,615 vehicles in the three months to June 30 compared with the same period last year.

And in the past few weeks, Honda followed up news of its forthcoming closure of the Swindon plant with news it’ll be cutting back its dealer network by 30 in the next three years.

Over at Vauxhall, bosses said they’d build the next Astra in Ellesmere Port, but only if the Brexit deal struck is the right one. See what I mean by muddled?

Back on the dealer front, Allen thinks it can’t get much worse, Brexit or not.

‘No-deal would have an impact, but I think dealers are well placed to capitalise on a wellmanaged Brexit,’ he said. ‘We’re advising investors to stick with the motor industry. There is value over the long term, a lot of property on balance sheets and not a lot of debt. Values are low because there is still risk there, but dealers can still pounce on a well-managed Brexit.’

And there are some bucking the trend. Both Allen and Jones cited Marshalls, Cambria and Vertu as groups performing well.

But, once again, their future hinges on the ‘B’ word.

‘A poor deal where we crash out in October could mean things get worse,’ said Jones. ‘New car supply will be hit, prices could go up and there will be fewer cars to sell.’

So while it might be tough now, it could get a lot tougher. Dealers, just like the rest of Britain, will be crossing their fingers and hoping Boris/Hunt (delete where applicable) will be able to pull some magic out of the hat in time for Halloween. For all our sakes.

‘Some rival dealer bosses I’ve spoken to think time could ultimately be up for Pendragon.’

James Baggott is the founder of Car Dealer Magazine and chief executive officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us.

82 | CarDealerMag.co.uk

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