Car Dealer Magazine: Issue 150

Issue 150 | September 2020 | CarDealerMag.co.uk | £6

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Issue 150 | September 2020 | CarDealerMag.co.uk | £6

INVESTIGATION

THE BRANDS THAT COULD FOLLOW MITSUBISHI’S LEAD TO EXIT UK NEWS

• NEW FAST BENTLEY • M3 ESTATE CONFIRMED • MOUNTUNE FOR SALE • MARSHALL’S £8.9M LOSS • FLAGSHIP NEW JLR SITE • BIRMINGHAM’S AUTUMN MOT BOTTLENECK FIRST DRIVE

DEFENDER LAND ROVER

CAN THE BRAND-NEW CAR LIVE UP TO ITS ICONIC PREDECESSOR?

GMA T.50: WE DIVE INTO THE DETAILS OF GORDON MURRAY’S NEW SUPERCAR

Help& advice FACE COVERINGS, QUARANTINE RULES, UPDATING YOUR CV INTERVIEW

Peter Vardy ‘IF WE DIGITALISE PROPERLY, WE’LL BE AS SAFE AS HOUSES’

PLUS

Honda e

WE DRIVE JAPAN’S RETROSTYLED ELECTRIC CAR OF THE FUTURE

USED PRICES: WILL THEY DROP AS FURLOUGH SCHEME ENDS?

The UK’s Best Used Car Warranty

02 | CarDealerMag.co.uk

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THE BOSS FOUNDER James Baggott

james@thebaize.com Twitter: @CarDealerEd

EDITORIAL CHIEF SUB-EDITOR John Bowman

john@blackballmedia.co.uk

HEAD OF CONTENT Jack Evans

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HEAD OF DESIGN Graeme Windell

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CONTRIBUTORS James Batchelor, Darren Cassey, Rebecca Chaplin, Nigel Swan, Ted Welford

FINANCE

FINANCE MANAGER Kate Gordon

kate@blackballmedia.co.uk

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WELCOME. I

don’t know – although I’ll hazard a guess – but I bet you’re just as rushed off your feet as we are. Since the start of lockdown, the pace at which we’ve all had to work to keep the wheels turning has been incredible.

We’ve been toiling day and night to keep the motor trade informed with the very latest changes on our website CarDealerMagazine.co.uk and digested in our monthly digital magazines.

And just when we think we can take a breather, Mitsubishi decides to call it a day and effectively quits Europe. If it’s not that, it’s something else. Just look at the number of stories we’re publishing every day on the website for testament to that.

Bored, we are not. Exhausted, we most definitely are. And from what I’m hearing from the dealers I’m talking to every week it’s much the same on the showroom floors. You lot are pedalling hard to keep up.

The Mitsubishi news took everyone by surprise and we’ve covered it extensively in this digital issue. We look at who might be next on the chopping block as more manufacturers face large fines for not hitting emissions regulations and may decide to call it a day in Europe, too.

In this issue we also report on the used car market – the trade’s favourite talking point at the moment – and try to find out exactly what will happen to used car prices when furlough ends. Will the resulting job losses see a flood of cars enter the market and prices fall or will prices continue to hold? Our expert panel has made some interesting points.

Meanwhile, amid the chaos, the world of the super-rich and exclusive continues uninterrupted. OK, so there may be the odd zero knocked off a bank balance, but when it’s that many, does it really matter? It’s those people whom McLaren F1 designer Gordon Murray is targeting with his incredible supercar. It’s the new pin-up for car fans and we’ve got the facts on what makes it so special.

There are also only a few days left to register your opinion on the car manufacturers you represent and the suppliers you do business with in our Car Dealer Power awards. We’ve had more than 1,000 entries already from dealers telling us what they really think of their business partners and you can do the same at CarDealerPower.com.

The survey closes on September 1 and we’ll be announcing the shortlist on September 7. If you want to have your voice heard, head over to that link and tell us what you think.

And this digital issue marks our 150th edition – much has changed in those 12 years, most of that accelerated in the past few months.

While you might be reading this in digital format now, we’ve got plenty up our sleeves to keep Car Dealer relevant and exciting for many years to come. Enjoy the issue.

And just when we think we can take a breather, Mitsubishi decides to call it a day and effectively quits Europe.

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JAMES BAGGOTT Founder, Car Dealer CarDealerMag.co.uk | 03

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IGNITION. ISSUE 150 | SEPTEMBER 2020

CONTENTS

25 14

46

54 42 INVESTIGATION

‘We don’t expect to see a softening in demand for used cars when furlough ends.’

6

FORECOURT

‘The ride was sublime, ironing out bumps to make for carpet-like comfort.’

26

FEATURE

‘Adding power makes you faster on the straights; subtracting weight makes you faster everywhere.’

50

6

Investigation: Used car prices 6 Investigation: Dying brands 8 Car News Round-Up 10 Peter Vardy Interview 14 Best 70-Plate Cars 16 Dealer News 18 Supplier News 20 Business News 22 Feedback 30 Car Dealer Live 32 Finance 40 FORECOURT Honda e Land Rover Defender

25 26

FEATURES Gordon Murray supercar Lotus – Past to future

42 50

COMMENT James Baggott Big Mike James Litton

45 46 49

ADVICE Quarantine – pay & leave Face coverings CVs

53 54 57

DATA FILE The Statistics Suppliers Guide Long-Termers

58 66 67

DATA FILE

‘The next few weeks will be crucial in showing whether or not we are on the road to recovery.’

58 CarDealerMag.co.uk | 05

INVESTIGATION

What will happen to used car prices when furlough ends?

Experts give us their opinion

U

by James Baggott @CarDealerEd

sed car prices have been rising steadily ever since the lockdown eased and buyers flooded the market.

But while that might seem unusual against a backdrop of a country officially in recession and increasing unemployment, it isn’t too hard to believe.

Look at the facts: New car sales are down so there are fewer part-exchanges entering the market. Lease companies are holding on to their cars for longer too and haven’t been able to get them returned during lockdown. This has hampered supply.

Add increased demand – from customers cutting their bills and downsizing, to new used car buyers swapping public transport for the isolation of a car instead, and many people blowing holiday cash or money they’ve saved during lockdown on the car they’ve always promised themselves – and you’ve got a cocktail for rising prices.

Car Dealer has posted countless stories of used car price rises. But every time we do, someone predicts a fall. And while one is inevitable, many believe the rise in unemployment and end of the furlough scheme could be the catalyst that drags prices down again. So will furlough bring the price of used cars tumbling? To find out once and for all, Car Dealer exclusively polled our panel of used car experts.

Here’s what they said.

CAP HPI

AUTO TRADER

COX AUTOMOTIVE

Prices may be high now but that won’t be sustainable

Growth in used car values will begin to even out

Combination of factors will bring used car prices down

Derren Martin Head of valuations, Cap HPI he economic downturn plus rising unemployment means consumer confidence will probably be more heavily affected by the Covid-19 crisis than it is currently. Big-ticket purchases could go on the backburner.

There is likely to be an increased reluctance to pay current prices, particularly for more expensive, younger, mainstream cars. Older or smaller cheaper cars may be less affected.

Used car prices are currently relatively high. But history shows us that increases in price are unsustainable over a medium to long period.

Once logistics improve further and lease extensions come to an end, there could be some more volume coming back into the market.

Richard Walker Data and insights director, Auto Trader ith so many variables at play, it’s hard to predict how the supply-anddemand dynamics may shift.

Supply constraints are easing and the end of the government’s furlough scheme in October, as well as the broader economic uncertainty of a recession, is likely to affect consumer demand. However, our research does point to new opportunities opening up, with more people relying on their own private vehicles to commute.

Out of 1,300 visitors to our marketplace who used public transport prior to lockdown, 69 per cent said they would find an alternative means to travel once they returned to the office. As a result, it’s likely the growth we’ve seen in recent months will begin to even out rather than continue to accelerate each month.

Philip Nothard Customer insight & strategy director, Cox Automotive UK lthough the end of furlough will affect the sector in terms of consumer demand and strength of the dealers, I believe there will be many other factors influencing a weakening of car values.

Used car values and conversion have already shown signs of easing. However, this is from a very strong position and returning to a more stable level.

Used values are at an unseasonal high level, but we need to keep in mind that the market lost two months of activity and valuation movements.

The current levels of supply are just about right to support the market demand, but the demand for older stock with poorer grades has seen a considerable decline, while ready-to-retail units remain very strong.

T

06 | CarDealerMag.co.uk

W

A

Click here to see what’s happening to used car prices at auction

MOTORWAY

New cars more likely to be affected by end of furlough James Bush Sales director at Motorway e don’t expect to see a softening in demand for used cars when furlough ends. It’s the new car market that’s likely to suffer.

With an inevitable rise in unemployment UK-wide ahead, this will likely accelerate the surge to used cars we have already seen. Many buyers will shift away from purchasing new cars on finance – as large car loans are harder to get and feel risky without a job.

If they need a vehicle, a lot of buyers who usually buy new will look at the used market to find better value.

We predict growth will be strongest at the lower to medium end.

W

AA CARS

ASTON BARCLAY

EBAY MOTORS GROUP

This isn’t a typical scenario so values may not drop

Other areas of used car market could be boosted

Prices for the lower end of sector may remain strong

James Fairclough CEO, AA Cars eriods of financial uncertainty typically dampen demand and used car values, as drivers who own their vehicle opt to keep it for longer and dealers compete hard on price. Equally, as people’s financial circumstances change, we may see some drivers with an outstanding car finance contract opt to hand back their car earlier than expected. There is also a possibility that rental car companies will sell off surplus vehicles on the used market.

Both of these factors would boost supply.

Typically, such a combination of weak demand and strong supply has been shown to put downward pressure on prices. But with more people returning to work and many still wary of public transport, demand for cars — and especially good-value used cars — is likely to continue.

Martin Potter MD, Aston Barclay don’t see much difference once furlough ends. Since dealerships have reopened, used car prices have either remained level or have increased due to demand and supply.

At the end of furlough, if the retail demand changes, the market may return to a depreciating asset situation.

This hasn’t been the case in recent months whereby values have increased because of supply not satisfying demand, but like all other businesses if the demand drops and supply outstrips demand then prices will fall.

Even with furlough ending, many people will still purchase used cars, but they might look for alternative age and models that are either more economical or cheaper in overall value.

Marc Robinson Head of sales, eBay Motors Group hile the furlough scheme has proved to be an invaluable way to protect employment for many workers, its withdrawal at the end of October opens us up to uncharted waters.

With the Office for National Statistics reporting UK employment falling in the second quarter by the largest amount in over a decade, the ending of the furlough scheme could see further job losses.

Against this backdrop, the propensity for consumers to buy used cars will be impacted. However, what we could see is the demand for lower-priced used cars maintaining to the end of the year. If this does happen, there is the possibility of prices for these particular vehicles remaining strong.

The coming weeks will be crucial.

P

I

W

CarDealerMag.co.uk | 07

INVESTIGATION

Going, going, gone – but it isn’t all gloom and doom for brands Following Mitsubishi’s announcement that it was freezing new model launches for the European market, we look at the brands most likely to go, those that have already gone – and those merrily bucking the trend.

M

itsubishi shocked the industry when it said it would halt all new model launches in Europe for the foreseeable future.

Parent company Mitsubishi Motors Corp reported a loss of 176.16bn yen (circa £1.3bn) for the first quarter of 2020 against a 9.31bn yen (£68.7m) profit for the same period in 2019, while the cost of meeting Euro 7 regulations was seen as a commitment it could no longer justify based on its sales volumes across the continent. Instead, it will be looking to focus more on its core business area of the Association of Southeast Asian Nations region as it looks to cut costs by 20 per cent.

The news took Mitsubishi’s importers and dealers by surprise and looks like it will sound the death knell for the UK operation of the company – not least because its sales have already slumped by nearly 50 per cent year on year following three successive annual declines.

Mitsubishi

90%

chance of demise For a short while, Mitsubishi enjoyed a position as an innovator, with its Outlander PHEV leading the popularisation of plug-in hybrid technology. The SUV was the best-selling PHEV for three years, but as more mainstream and arguably more desirable competitors caught up, the Outlander became less desirable and ultimately grew outdated. Aside from that, the below-par and slow-selling Mirage and curious but all-too-quirky ASX crossover were not enough to deliver the sales volume needed to stay in the market. The L200 pick-up is the only Mitsubishi model to remain class-competitive, but the cost of re-engineering it for Euro 7 could well force its demise. If not, it’s likely to remain the only Mitsubishi on sale here, with the importer, Colt Car Company, already looking at alternative brands with which to support its network.

Subaru

50%

chance of demise While Subaru’s importer, International Motors, remains upbeat about the brand’s future, the dealer network isn’t quite as convinced, despite an improvement in NFDA survey results in 2018, where it climbed 12 places.

Until recently, Subaru simply didn’t have the product to make sales in the UK work properly – the oddball Levorg, mediocre Impreza, adequate XV and fun-but-specialist BRZ weren’t enough to deliver the market share it needed, and while the announcement of hybrid models will help fill the gap, the brand’s WRC-winning heyday is a sadly distant memory. Existing customers are fiercely loyal, but new ones are getting increasingly rare.

DS

30%

chance of demise Before lockdown hit the car market square on the jaw, owner PSA was making noises about a long-term commitment and growth plan for its sub-premium DS brand.

More recently, brand boss Alain Descat told Car Dealer that it was ‘here to stay’ and that it was possibly a 20-to-25-year strategy that it needed to see real growth.

But PSA boss Carlos Tavares will be expecting to see the cash register ringing before the parent company truly commits – he’s renowned for being a turnaround man and has done wonders for Citroen, Peugeot and, latterly, Vauxhall-Opel. But with the three volume brands now facing huge bounceback challenges, DS could be a problem he doesn’t need.

Cupra

30%

chance of demise Tracking Cupra’s sales performance is tricky as registrations are still reported through Seat, but the Spanish brand’s desire to have a performance spin-off might not last – VW Group has enough on its plate rebuilding sales across its portfolio in the wake of the pandemic while still handling legal action that goes back to the 2015 emissions scandal.

If Cupra doesn’t appear to be contributing big numbers to the brand’s performance, and with models such as the Ateca hardly recalling the glory days of Cupra as a model name as well as the Leon 180 building on BTCC success, it could be seen as a stretch too far and the name returning to being a trim level alone.

8 | CarDealerMag.co.uk

The dodos While the disappearance of car brands can come as a shock, it’s not uncommon. Here are five that have been and gone.

Daihatsu

The quirky Japanese brand was always a little bit different, so it was sad to see it go in 2013, with emissions and a lack of brand awareness being the main reasons.

Chevrolet

Smart

30%

chance of demise Smart has been on Daimler’s critical list for the past decade, ever since the novelty of the original City Coupe (latterly ForTwo) wore off. The larger ForFour has never caught on, and city car buyers of today seem far happier with a Fiat 500 or a Mini. The brand has a market share of just 0.25 per cent in the UK, which is barely enough to support a dealer network.

Abarth

10%

chance of demise Although it has a tiny market share in the UK (just 0.15 per cent so far in 2020), Abarth does have the advantage of only being sold alongside Fiat dealers, and the halo effect of the Abarth brand does at least give its models showroom appeal.

But as far as a new model strategy is concerned, there’s very little noise coming out of Italy. Could Abarth instead go back to being a performance trim level?

Brands that are on the up While there are a few brands on the at-risk register, there are others that are continually bucking the trend. These two are definitely on the up.

MG

Doubters will doubt, but there’s no denying the figures shown by MG Motor, which has set itself an ambitious target of doubling its sales volumes by 2021. And given its performance in recent times, those figures are hard to ignore. At the end of July 2020, it was the only car brand in the UK to have seen growth, with registrations up over a third against 2019.

The new ZS and bigger HS have seen it make strong inroads into the crossover and small SUV market, the MG3 supermini’s recent facelift has kept sales strong and its seven-year warranty is a match for that of Kia, which built its reputation in the UK on the back of such a business model.

With a new EV estate car – the MG5 – imminent, the company wants to increase its market share in the fleet sector, while rumours of a new sports car due imminently are promising a strong halo effect. The dealer network is growing, and that’s because there’s money to be made.

SsangYong

South Korean brand SsangYong has just announced that it’ll be moving its HQ from Luton to Swindon to prepare for growth in the UK, so it’s clear that the company’s senior management have faith in its future performance.

Its range of SUVs and pick-ups is widely respected by owners and dealers, and the relatively small network is proving profitable. It certainly has the scope to grow, even in a challenging market.

When GM first tried to sell Opel/Vauxhall in 2009, it loaded a huge amount of R&D cost into the Chevrolet brand, which it expected to pick up European volume. Then it kept the bigger brands. That meant the original Chevy business model of selling cheap ex-Daewoo cars at tantalising prices was ruined. By 2013, the discounts for dealers (and ultimately customers) just weren’t there, and while the cars were vastly improved, the demand for them wasn’t.

Saab

Dealers, customers and petrolheads are still sad about Saab, and with every right. It was an amazing brand, which fell victim to GM’s under-investment and poor management.

Rover

When MG Rover collapsed in 2005, it left a massive void in the heartland of the UK car industry, as well as a large, rudderless dealer network. But years of underwhelming product and a lack of investment made its collapse inevitable.

Chrysler

Chrysler tried and tried here as a discount brand with the Neon, a practical brand with the Voyager or a ‘character’ brand with the PT Cruiser and 300C. But by 2014, owner FCA had had enough. Jeep remained, but the Chrysler brand was dropped from the market.

CarDealerMag.co.uk | 9

DASHBOARD

CAR NEWS ROUND-UP

Manufacturers have been busy refining existing models and producing new ones. We look at 10 of the results...

LUXURY SUV

Bentley reveals 626bhp Bentayga Speed BENTLEY has revealed full details of its high-performance luxury SUV, the Bentayga Speed.

The Bentayga has been updated for 2020, but this is the first time we’ve heard details of the top-spec version. Under the bonnet sits a 6.0-litre W12 engine that makes 626bhp and 900Nm of torque.

That massive performance figure helps propel the hefty SUV from 0-60mph in just 3.7 seconds, and gives it a top speed of 190mph.

FACELIFT

ESTATE

Merc prices up new-look E-Class

BMW confirms new M3 Touring

MERCEDES has given prices for its facelifted E-Class range.

Pricing starts at £39,130 for the entry-level E 200 Sport Saloon and £41,460 for the E 200 Sport Estate, which use a 2.0-litre petrol engine with a 48-volt mild-hybrid system.

Standard kit now includes twin infotainment screens, leather seats, blind spot monitoring and wireless phone charging.

The AMG models kick in at £64,750 with the E 53 4Matic, while the range-topping AMG E 63 4Matic+ starts at £98,370.

Deliveries begin in the autumn.

BMW has confirmed it will be making a Touring version of its upcoming M3 sports car – the first time such a version will have been offered in the model’s 34-year history.

Probably arriving in 2022, it’ll rival the likes of Audi’s RS4 Avant and the Mercedes-AMG C63 Estate.

The new Touring will sit alongside saloon and M4 coupe versions of the new car, which are both slated to be revealed in September. A convertible version will also be available.

10 | CarDealerMag.co.uk

CONCEPT

Gladiator Farout has adventure in mind JEEP has revealed a new concept called the Gladiator Farout. Essentially an adventure-ready version of the firm’s pick-up, the Farout follows on from the Wayout concept released in 2019.

Its main feature is a contained and deployable rooftop tent. Measuring 16ft long and 7.5ft wide, the tent can be opened and retracted in seconds.

Once in place, it offers enough sleeping room for four people. Inside, the Farout has a stove and fridge, as well as hanging storage racks.

RENAULT

FASTBACK

Two trim levels for the new Megane

RENAULT has revealed its facelifted Megane range which was available to order from August priced from £20,740.

Just two trim levels are now available for the standard car: Iconic has LED headlights and a seven-inch touchscreen, while RS-Line gets a 9.3-inch touchscreen and sportier body styling.

There are small styling tweaks on the outside, while the RS models all have 296bhp (the 275bhp RS 280 having been dropped) and there’s a plug-in hybrid estate with an electric range of 30 miles.

Kia reveals updated Stinger KIA has revealed the updated Stinger with a new look and improved specification.

The handsome fastback model retains the firm’s signature tiger-nose grille, which sits between new LED headlights that are darker when the lights are off, while also having a new signature daytime running light design.

NEW LOOK

Audi unveils new S3 with 306bhp AUDI has revealed the latest S3 in hatchback and saloon form, with a sharp new look and more power.

Under the bonnet sits a 2.0-litre petrol engine making 306bhp and 400Nm of torque, and it can accelerate from 0-60mph in 4.6 seconds and go on to a top speed of 155mph.

It also comes with a seven-speed automatic transmission and all-wheel drive, which gets new dynamic handling control for improved performance.

GMA

British-built V12 supercar breaks cover A NEW British-built supercar from the company started by legendary car designer Gordon Murray has finally broken cover.

The Gordon Murray Automotive (GMA) T.50 uses a bespoke 3.9-litre Cosworth V12 engine – the lightest V12 ever – that makes 654bhp and revs to an incredible 12,100rpm, while the car itself weighs just 986kg. Deliveries begin in January 2022 and each car will cost £2.36m.

Supercar in detail: Page 42

MODIFIED

SUZUKI

ABT Sportsline now gives us RSQ8-R

Ignis Hybrid receives facelift

THE latest limited-edition, modified Audi to come out of ABT Sportsline has been revealed – the RSQ8-R. The German tuning specialist has worked its magic on the highperformance SUV, which now has an output of 730bhp and 920Nm of torque, thanks to a new engine control unit.

Limited to just 125 examples, the RSQ8-R also gets a stainless steel ABT exhaust system that amplifies the engine noise, exiting through quad 102mm pipes.

SUZUKI has facelifted the Ignis Hybrid crossover with a new engine standard across the range, a fresh gearbox option and a rugged look.

The hybrid powertrain has been updated with a new 1.2-litre petrol engine, which Suzuki says will offer better fuel economy and lower CO2 emissions. Further economy improvements come from an increased battery size, from 3Ah to 10Ah. A new CVT automatic gearbox is also available on SZ-T and SZ5 trims with two-wheel drive.

CarDealerMag.co.uk | 11

Matching quality dealers with quality leads

search 12 | CarDealerMag.co.uk

ADVERTISING FEATURE

How heycar B are helping the nation feel good about car-buying

We’re determined to put a smile on people’s faces.

y making constant improvements to our platform we’re reshaping the car-buying journey. And we want people to know about it. That’s why we’re investing over £5m in our biggest marketing drive to date, which coincides with our first birthday in the UK. It’s part of our commitment to supercharging our brand awareness so we can deliver even more leads to our nationwide network of dealers. And we’ve come up with a concept we think will chime with car buyers as we emerge from these past few difficult months.

We’re reminding the nation of the joy you only get with a new car. That sense of sheer delight when you slide behind the steering wheel of a quality motor.

We’ve summed it up with the tagline to our campaign: ‘hey, buying a car never felt so good’.

Activity will take place across TV, video on demand, radio, Spotify, PR, a media partnership, YouTube and social media. The feel-good concept is brought compellingly to life in the TV ad, which was shot during lockdown. It sees a businessman so overcome with pleasure after getting into his new car that he unexpectedly breaks into a rendition of Flo Rida’s hit ‘Good Feeling’.

Katie Wilson, our marketing lead, said: ‘The entire industry has been through some very challenging times this year. We’re determined to put a smile on people’s faces as we support our nationwide network of dealerships as they continue to get back on their feet. That’s why we’re devoting more than £5m to our latest above-the-line marketing campaign to coincide with our first birthday.

‘We’ve created a really compelling concept to drive our brand awareness across a range of channels.

‘This allows us to boost dealer visibility, enhance reputation and build continued consumer awareness of our high-quality stock, and the reassurance that finding the right car through heycar brings.’

The activity is supported by a comprehensive media outreach programme that will also include a competition through digital and social channels where members of the public will be invited to share clips of themselves enjoying their favourite in-car songs, with the car featured in the advert up for grabs as a prize. It’s the kind of content that’s relatable and highly shareable, driving engagement with the brand. These initiatives also coincide with a fresh creative for heycar to ensure we continue to stand out in the industry. And it comes as we continue to attract more visitors to our platform by improving its functionality and customer experience at every turn.

We’re determined to make it simpler than ever for car buyers to research and review their options – so when they’re ready to make a purchase they have all the information they could need. Recent innovations include teaming up with leading automotive tech providers to give more customers the power and reassurance to potentially purchase online, alongside a 25 per cent increase in listings with comprehensive video tours.

What’s more, we’ve launched a new Car Seat Chooser tool to help parents get peace of mind and give them the power to easily compare safety features, functions and price – all on one platform.

And there are plenty more developments in the pipeline, driven by our always-on consumer sentiment research that helps us understand the extent to which their behaviour is changing. We’re rightly proud of how far we’ve come in the past 12 months – driving increased levels of transparency and trust between consumers and the industry. We’ve had 20 million visits to our platform and drive £40 million-worth of sales to our trusted partners every month. But we’re determined to do better through 2020 and beyond.

We’re feeling good about the future. We want to ensure car buyers are too. Come with us on the journey.

CarDealerMag.co.uk | 13

INTERVIEW

James Batchelor chats to Peter Vardy about the future of car retailing with online transactions and teaching the next generation of leaders.

Peter Vardy CarStore in Dundee 14 | CarDealerMag.co.uk

With my really optimistic head on, we might perform the same as last year

N

o one would deny coronavirus has had a devastating impact on the motor trade so far in 2020. Closed showrooms, mass redundancies and dealers having to adapt to new, often alien working practices have made for chunky column inches.

But that’s not the case with Peter Vardy Ltd. Peter Vardy – the man with his name over the door of 20 new and used car showrooms across Scotland and the third generation of the Vardy dynasty that’s been so successful in motor retailing since the 1920s – has survived the worst of the coronavirus pandemic by concentrating on two things: looking after his workers and embracing the changing landscape of car retail.

Part of the Vardy empire includes an end-to-end online retail platform called SilverBullet, but that aside, the business as a whole has really grabbed hold of the opportunities that online retailing presents and is making a big success of it.

‘If you’re into e-commerce at the minute and you can get your head around it, then it’s a really exciting place to be in,’ Vardy tells us in an exclusive video interview, available to watch in full on our website – see right.

Exciting and also hugely profitable, too. Vardy says of all the used cars the business sold in August, 14 per cent were online and without any sales person intervening.

‘That’s a massive number,’ he says. ‘That doesn’t mean I need fewer sales people, it means we can sell more cars.’

Vardy says the business has employed more people during lockdown to capitalise on the opportunities brought about through online car sales, including 10 extra drivers to help with deliveries.

That’s something that would be impressive in normal trading times, but even more so when other dealer groups are cutting jobs because of growing online car sales.

‘It’s not my intention to have software replace a sales adviser, especially not if I have good sales people,’ he explains. ‘Overall, our cost-of-sale reduction with software is selling us more cars. When you’re selling a car online, the finance penetration is higher, the add-on sales are higher and there’s no discounting. So, with those 14 per cent of deals being on a higher finance, with more add-ons and being made with no discounting, you can allocate your sales advisers to do other things. This saves you time.

‘If we digitalise our business properly, if we make our sales, service and part departments proper e-commerce departments, then our business is as safe as houses.’

With many big firms and dealers all grappling with the right way to run an online sales model, Peter Vardy is out there already doing it with a template that’s working, and he’s observed how the world of e-commerce is shaping up.

Porsche dealership in Perth CarStore in Glasgow

It’s not my intention to have software replace a sales adviser.

‘We’ve seen with Cazoo that you can’t do a pure digital model and have cars delivered to people’s houses,’ he says. ‘From a retailer’s perspective, delivering cars to people’s houses is really expensive, so too are the comebacks and the fulfilment.’

Vardy highlighted two businesses that he and his father – Sir Peter, who built up the family firm Reg Vardy to employ more than 6,000 people and a turnover of £1.7bn – admired: the American businesses CarMax with its online sales tool and Carvana with its bold vendor-machine-like sales method. By mixing together physical and online car sales, dealers can fulfil every customer’s buying preference, he believes.

‘Customers like the idea of going on an online platform and transacting completely online,’ says Vardy. ‘But while it has increased during Covid-19, it’s still not massive.

‘If there are seven steps in the buying process including the handover, a lot of customers want to go along most of that journey online, but then take a test drive or take their part-exchange into the dealership to see if they can get a bit more money for it.

Everyone is a bit different.

‘We’ve got three sales processes: Firstly, the customer does it themselves all online; the second is a live sale but assisted by the e-commerce team; and the third is more analogue, so the customer does a bit online, a bit with the e-commerce team but still wants to visit the store and finish it there. If you’ve got all three then that is the perfect scenario.’

E-commerce and online car sales is the future that’s already here, but what about the much-talked-about prospect of UK car retailing being dominated by ‘supergroups’?

‘My dad was a great operator and he said he couldn’t run more than 100 dealerships,’ remarks Vardy. ‘When it gets to that level, it’s very difficult to have any quality. In my opinion, it’s very difficult to get people to run a group of more than 100 dealerships. There are some very talented people at that end and I think even they struggle.

‘I think the manufacturer doesn’t like them either – they like regional players who get to know the area and then do a good job – and I think the staff don’t like them either. They feel like they’re just a number.’

Staff happiness and development are key beliefs for Vardy. The firm has embarked on an ambitious programme to teach all schoolchildren in Scotland leadership skills (see panel), and looking after his staff has been a major focus for Vardy during the pandemic.

Senior staff have taken pay cuts, staff holidays have been postponed until Christmas, and a four-day working week has been agreed and will be rolled out if trading performance later this year necessitates it. But Vardy has been upfront with staff who are all ‘on board’ with the changes, and there have been no redundancies – something that is unusual in current times.

But what of the rest of the year?

‘If I can look after all the folks well, by the time we get to Christmas then I will be over the moon,’ he says. ‘With my really optimistic head on, we might perform the same as last year. With my realistic head on, we might get a decent August and September and see what happens in quarter four. And my pessimistic head is we won’t make any money at all. As a family, we can get through this, learn as much as we can, and keep the team together and everyone looked after. That would be a result.’

FOUNDATION

Children are being taught to be future and better leaders PETER Vardy believes the motor industry is full of great people but says leadership skills aren’t being taught to the next generation.

It’s for that reason The Peter Vardy Foundation – which already supports charities and projects around the world – is teaching Scotland’s 277,000 schoolchildren leadership skills.

‘Over the next 10 years we’re trying to teach every child in Scotland “leadership” before they leave school,’ says Vardy.

‘We’ve developed an online leadership platform, and when the young people complete it, they get a qualification.

‘It’s a global plan starting here, which we’ll roll out in other languages.

‘I’ve been very fortunate to have some great leaders around me and that has spurred me on to learn more. When a leader gets better, everyone wins. That’s why we are going into schools to make the next generation better leaders than us.’

Click here to see the video of Peter Vardy’s interview CarDealerMag.co.uk | 15

NEW REGISTRATION

Aston Martin DBX

Aston Martin’s first SUV – the DBX – has been an awfully long time coming, but with the first examples recently rolling off the Welsh production line, it’s finally here.

This British car-maker has been having a financially troubling time recently (even before the Covid-19 pandemic), so the DBX is key to Aston Martin’s survival.

THE BEST 70-PLATE CARS The annual September plate change is on the way, but what’s the best new car to wear the new ‘70’ registration on?

Honda e

Honda’s known for its safe approach to cars, but the rulebook has been thrown away for its new electric car – the Honda e. With its retro-futuristic styling, fun drive and impressive tech (such as touchscreens that span across the full interior), this is the Japanese manufacturer’s boldest car in years.

First drive report: Page 25

Toyota Yaris

The Yaris has always been a safe, sensible and unexciting supermini option. But Toyota’s new fourthgeneration model aims to change that with a bold new design, more sporty driving experience and additional hybrid powertrains.

Audi A3

With the Volkswagen Group hatchbacks all being updated for 2020, the most premium of the lot – the Audi A3 – is also new for 2020. The firm’s best-selling model gets a striking new look, a far more modern interior and new mild-hybrid powertrains to maximise efficiency.

16 | CarDealerMag.co.uk

Land Rover Defender

Arguably 2020’s most important model, the Land Rover Defender is back and it really couldn’t be more different to its predecessor.

This new model takes a big step upmarket when it comes to tech and creature comforts, although it hasn’t forgotten about the need to be unstoppable away from tarmac.

First drive report: Page 26

Skoda Octavia

Just like the Leon below, the Octavia is another new VW Group hatchback for 2020, with this Skoda being the most practical and versatile of the lot.

It benefits from many of the changes we’ve already mentioned but is now even more practical – its boot measuring a massive 600 litres (a Golf’s is 380 litres for comparison).

Volkswagen Golf

Vauxhall Insignia

Once one of Vauxhall’s most popular models, the Insignia has been overtaken by the firm’s own crossovers – notably the Grandland X. It remains a stylish option, though, and this new updated version gains new in-car technology and more efficient powertrains.

Volkswagen couldn’t have launched its Golf at a worse time, as it arrived in showrooms just as the UK was entering lockdown – meaning buyers couldn’t even collect it from showrooms. So the 70-plate will be the Golf’s breakthrough moment – this new hatchback coming with a transformed interior and new mildhybrid engine options. Hot GTE, GTD and GTI models are also just around the corner.

Seat Leon

Following on from the Audi A3, Seat’s best-selling Leon is also benefiting from all this tech at the firm’s disposal. Even with its digitised interior and electrified powertrains (a Cupra plug-in hybrid is also on the way), the Leon remains brilliant value, with a sub-£20,000 starting price.

Polestar 2

Volvo-owned Polestar is making waves in the EV world, with the Swedish firm’s new ‘2’ rivalling the likes of the Tesla Model 3 – a car that’s selling in huge numbers.

With its sub-£50,000 pricing and 292-mile electric range, it’s a seriously appealing car from this new manufacturer.

CarDealerMag.co.uk | 17

DASHBOARD ESSEX

DEALER NEWS A ROUND-UP OF STORIES FROM AROUND THE WORLD

MS-RT Transits will be available for all MS-RT versions of the Transit will soon be available direct from all Ford Transit Centres, the manufacturer has announced.

MS-RT, a division of Ford’s Rally Championship partner M-Sport, offers modified versions of both the Transit/Tourneo Custom and Transit Connect.

Up to now, they were the preserve of a smattering of dealerships – mainly Hendy, Evans Halshaw and Lookers – but Ford is making the vans available to order from any Transit Centre from September.

SURREY

UK

Marshall reports loss of £8.9m for the first half of 2020 – but hopes to break even for the full year MARSHALL Motor Group posted an underlying loss of £8.9m for the first half of 2020 – down from a profit of £15.2m for the same period last year.

The loss, which takes into account the devastating impact of the coronavirus lockdown on car dealers, will be seen as a small win for the listed dealer group, especially as it is predicting to break even by the end of the year. Revenue was severely hit by the crisis, though – down 24 per cent from £1.1bn to £895m.

Chief executive Daksh Gupta said: ‘Despite the significant challenges presented by Covid-19, the group has delivered a resilient first-half performance and once again outperformed the market.’

See our interview with Daksh Gupta by clicking on the image

WIDNES

JLR opens flagship Surrey showroom JAGUAR Land Rover has opened the doors at Guy Salmon South West London – its first ‘Statement Site’ in the UK. The multi-million-pound flagship purpose-built venture – part of the Sytner Group – took two years to construct in Sunbury-on-Thames and was originally due to open in 2019.

It covers 17,000 sq m over five floors, with more than 130 new and used vehicles in the showroom, and has a display of classic Jaguars and Land Rovers.

18 | CarDealerMag.co.uk

Sophie swaps jobs for chance to win £1,000

MOTORPOINT sales executive Sophie Johnson took part in new BBC TV daytime show Call That Hard Work? for the chance to win £1,000.

The 24-year-old, who has worked at the Widnes site for two years, a florist from Sheffield and a personal trainer from Bradford swapped jobs for three days and scored elements of them out of 10. The one with the highest score won the cash. How did she do? That’d be telling, but it’s currently on iPlayer here...

651

The bhp of Gordon Murray’s new supercar. The T.50’s V12 engine can rev to an incredible 12,100rpm.

Read our five of the best features of the Gordon Murray Automotive T.50 supercar p42

BIRMINGHAM

Birmingham leads MOT bottleneck this autumn

BIRMINGHAM’s MOT centres are set to see the biggest increase in test demand this autumn, as validity extensions created in response to the Covid-19 crisis come to an end.

An investigation by the DVSA reveal that MOT stations across the UK could see bookings for October and November increase by nearly 70 per cent in some areas – with all but one UK postcode likely to see an increase in bookings of more than 50 per cent against the average.

Used car values hold steady in July at BCA. Supplier News: p20

‘The new Defender is so far removed from the one it replaces that it’s not even worth comparing the two.’

Forecourt– Land Rover Defender: p26

LONDON

Polestar to open first UK Space at Westfield

POLESTAR’S first UK Space is to be at the Westfield London shopping centre.

Its Spaces are seen as being unlike conventional showrooms and dealerships, and the one at Westfield – which is also known as Westfield White City and Westfield Shepherds Bush, and is Europe’s biggest shopping centre – is set to open in October.

It will showcase the Polestar 1 performance hybrid GT and Polestar 2 fully electric performance fastback.

ABERDEEN

Nissan dealer sells six GT-Rs during lockdown

NISSAN dealer Specialist Cars in Aberdeen sold no fewer than six stunning GT-Rs during lockdown – five to customers in England!

After the first sale – that of a Katsura Orange model – a flurry of GT-R sales kicked off, with two deals sealed in June, two in July and one so far in August.

General sales manager Dale Charité said: ‘We are finding customers further afield who are equally happy to deal with us from the comfort of their own homes.’

STOCKPORT

Arson suspected at Land Rover dealership

ARSONISTS are believed to have started a fire that broke out at the Guy Salmon Land Rover dealership in Stockport on August 6.

It erupted in the rear compound, and seven fire engines and a number of support vehicles were used at the height of the blaze.

No one was injured, and owner Sytner Group praised the fire and rescue service for preventing the blaze from spreading any further. It added that arson was suspected.

NEWCASTLE

Stoneacre buys Hodgson Motor Group

STONEACRE Motor Group has acquired the Newcastle-based dealer Hodgson Motor Group.

Hodgson, established in 1959, holds franchises for Toyota, Mazda and Suzuki in Newcastle and Gateshead. The takeover, for an undisclosed sum, gives Stoneacre five new sites in the region, joining the group’s Aston Martin, FCA Group and Volvo sites in Newcastle.

Hodgson briefly faced the prospect of being dissolved this year after a delay in publishing accounts.

LLANDUDNO

I can’t help but feel for the dealers who have spent decades toiling for a brand only for that to evaporate in no time at all.

James Baggott p45

W R Davies unbowed

by Covid-19 pandemic

A DEALER group that saw its pre-tax profit rocket by more than 325 per cent last year says it is optimistic about the future despite coronavirus.

Accounts filed with Companies House show that W R Davies Motors made a pre-tax profit of £1.297m to the year ended December 31, 2019 – up from £303,009 the year before and an increase of 328 per cent. The group has dealerships in England and Wales for Ford, Toyota, Nissan, Citroen, Dacia, DS, and Renault.

BITE-SIZE

New franchises, a doggy adoption – and more EDWALTON: Pendragon has been given the green light to build a multi-million-pound Porsche dealership and service centre at Edwalton in Nottinghamshire. It will replace the nearby Porsche showroom at Riverside Retail Park.

WORCESTER: Bristol Street Motors has added a Citroen franchise to its Worcester-based Ford dealership. The £250,000 investment at the Cosgrove Close site features state-of-theart showrooms for each brand, with a shared service centre.

BIRKENHEAD: BVH Car Sales is the latest dealership to join SsangYong’s growing UK network. The new and used car retailer has more than 40 years’ experience of selling vehicles across the Wirral and as far south as Chester.

BRAZIL: A Hyundai dealership has adoped a stray dog – and named him Tucson Prime. Staff at the Espirito Santo showroom noticed the poor pooch hanging around outside every day and took pity on him, and he’s now its mascot and ambassador!

NELSON: Vertu Motors has named Susannah Kendall as its Apprentice of the Year for 2020.

The 17-year-old, who is a service adviser apprentice at Farnell Land Rover Nelson in Lancashire, fought off competition from 275 other apprentices to the title.

CarDealerMag.co.uk | 19

Should I be using Facebook for my new dealership? Feedback: p30

DASHBOARD

SUPPLIER NEWS

A ROUND-UP OF WHAT’S BEEN HAPPENING ACROSS THE COUNTRY WHAT CAR?

What Car? adds online stock sales feature

DEALERS using What Car?’s New Car Buying platform can now sell online any unregistered and nearly new cars that they have in stock.

The latest service was developed during lockdown, after being asked for by the 900 retailers using the platform, said What Car?, adding that it was being launched at a critical time for the industry, which was looking to make the most of strong new and used car sales caused by pent-up demand.

BCA

Used car values hold steady in July at BCA USED car values held steady in July dipping only slightly on June, according to BCA, which said an increase in stock supply had been well matched by rising demand from professional buyers.

Values for used cars averaged £8,517 over the month, which was down by just £48 (0.6 per cent) against June, while sold volumes rose by more than 30 per cent.

July 29 saw nearly 6,300 vehicles offered in online sales, which BCA said was the highest volume of vehicles it had ever offered in online sales on one day.

RAC

Motorhomes sold by RAC Approved Dealers

MOTORHOMES are being sold by RAC Approved Dealers for the first time after a new 78-step preparation standard was brought in.

It was created by the RAC in conjunction with aftersales partner Assurant and Hailsham-based dealer AMC MotorCaravans.

Sean Kent, RAC director of sales at Assurant, said: ‘We are confident that it will play an important part in helping dealers retail high-quality, used motorhomes’.

20 | CarDealerMag.co.uk

HEYCAR

Interest remains high for lowervalue vehicles, maintaining the trend we have seen since the first days of lockdown and resulting in some unprecedented price increases.

Stuart Pearson COO for UK Remarketing, BCA

ADMIRAL

Heycar helps secure £40m sales a month

Lockdown claims drop boosts Admiral’s profits

HEYCAR is celebrating its first birthday with the news that it is now driving £40m of used car sales a month to its dealer partners.

The online car marketplace launched in the UK on August 14, 2019, backed by Volkswagen and Daimler, after being established in Germany three years earlier.

CEO Matt Moakes said: ‘We take immense pride in having become a truly meaningful source of lead generation for our partners’.

LOCKDOWN restrictions helped send car insurance provider Admiral’s pre-tax profits for the six months to June up by 30 per cent to £286.7m, it announced today (Aug 12).

The insurer said customers staying at home meant fewer miles were being driven, resulting in lower claims on policies. However, its decision to give customers a rebate of £25 per vehicle saw its total revenues slip by four per cent to £1.69bn for the half-year.

Beyond finance “I’m more like a consultant, taking time to understand the dealership so that we can add real value to their business.”

Watch Aimee's video to see how: blackhorse.co.uk/beyondfinance

Aimee Winder Account Manager North East Region

A better way of doing business CarDealerMag.co.uk | 21

DASHBOARD

BUSINESS NEWS

A ROUND-UP OF WHAT’S BEEN HAPPENING AROUND THE WORLD

BITE-SIZE

Legal rulings – and an unwelcome inflation rise Tesla: A court in Germany has ruled that the Tesla Model 3’s touchscreen – which controls most of the car’s functions – is a distracting device, after a driver crashed while adjusting windscreen wiper settings.

JLR: Jaguar Land Rover has failed in a bid to register the shapes of versions of the Land Rover Defender as trademarks.

Ineos Industries Holdings, which is producing the Grenadier 4×4, had opposed JLR’s trademark applications.

Daimler: A court in Mannheim has slapped an injunction on Daimler after ruling that it used Nokia’s mobile technology in its connected cars without permission. The decision centred on a patent relating to LTE communications.

ONS: The largest hike in fuel prices for a decade helped UK inflation jump to its highest level for four months in July. The Office for National Statistics said Consumer Prices Index inflation lifted unexpectedly to one per cent from 0.6 per cent in June.

MORE FUNDING

Self-employed Covid-19 grants are extended SELF-EMPLOYED workers can apply for a second grant to help bolster earnings during Covid-19.

The grant, known as the Self-Employment Income Support Scheme, will cover up to 70 per cent of their usual income until the middle of October, up to a maximum total value of £6,570.

Around £7.8 billion has so far been paid to support 2.7 million self-employed workers – however, the second round of funding has done nothing to allay fears of a ‘cliff edge’, with Labour suggesting that many job roles are unlikely to see demand bounce back for some time.

MOUNTUNE

DAIMLER

TESLA

Mountune ‘seeking potential sale’

Daimler vows to fight Elon Musk now world’s any UK emissions suits fourth-richest person

PERFORMANCE parts manufacturer Mountune is seeking a potential buyer or investment partner, it has announced, following the apparent departure of its founder last month.

Established in 1980, the Essexbased company specialises in performance parts for Ford models, and has a close relationship with the manufacturer, with many of its kits sold officially by Ford dealers.

DAIMLER has said its multi-billiondollar agreement in principle in the US over diesel emissions won’t stop it defending any group action brought here in the UK. Pending final approval of the relevant authorities and courts, the manufacturer is to pay out some $2.2bn to settle civil and environmental claims over 250,000 diesel vehicles sold there.

ELON Musk is now the fourth-richest person on Earth.

His net worth as of August 19 was $90.3bn, according to the Bloomberg Billionaires Index, thanks to a Tesla share price surge, putting him ahead of LVMH group chief executive Bernard Arnault at $83.7bn. Top is Jeff Bezos at $195bn, Bill Gates is second at $121bn and Mark Zuckerberg is third at $99.4bn.

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22 | CarDealerMag.co.uk

FIND OUT WHY WE ARE

TREASURY

IGA

Covid-19 loans to businesses top £52bn

Use £1.5bn emergency funding or lose it

LOANS to support businesses during the Covid-19 crisis have now exceeded £52bn.

The Treasury’s latest update shows that the majority was from the Bounce Back Loan scheme – with £35.47bn paid out so far to 1,174,854 UK companies. Coronavirus business interruption loans to small firms accounted for £13.68bn, while large firms have received £3.5bn.

THE Independent Garage Association is urging businesses to grab their share of £1.5bn of emergency coronavirus funding before the government takes it back.

The money – available to all businesses – is sitting in council bank accounts at the moment, with lump sums of between £10,000 and £25,000 available through two separate grant funds.

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JLR ‘not for sale’ insists owner after government bailout talks collapse JAGUAR Land Rover is not for sale, owner Tata has insisted – despite bailout funding talks with the UK government falling through.

Tata Motors has been forced to deny that the British car manufacturer is up for sale. It told The Times: ‘Unconfirmed and unsubstantiated reports have been published alleging that Tata Motors may sell a stake in Jaguar Land Rover. It is and remains a key pillar of Tata Motors and the wider group.’

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OF CUSTOMERS WOULD RECOMMEND FIRST RESPONSE

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CONNECTED RETAILING Omni-channel vehicle retailing solutions connecting your customers to your showroom no matter where they are

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TRANSACT

FORECOURT

HONDA E THE KNOWLEDGE Honda’s new e might look the part but does it drive as a fully fledged EV should? Jack Evans finds out.

WHAT IS IT? It’s what the Japanese manufacturer calls an ‘urban-commuter’ car, designed for those who are undertaking regular, but shorter journeys.

WHAT’S NEW? The Honda e is a completely new thing. You’ll find no platform sharing here, with the e underpinned by a bespoke platform. The e sends power to the rear wheels, freeing up space in the cabin and allowing for a much smaller turning circle.

WHAT’S UNDER THE BONNET? The Honda e uses an electric motor powered by a lithium-ion battery. It takes just 31 minutes to complete a full charge via a 50kWh CCS fast charger, or 4.1 hours when using a standard AC home wallbox, and 18.8 hours via a three-pin plug.

WHAT’S IT LIKE TO DRIVE? It’s superb in urban environments. The acceleration is zippy and ideal for darting in and out of spaces, while the button-small turning circle makes U-turns an absolute breeze. Out on the motorway it’s hushed and refined, and the single-pedal driving system means you rarely need go near the brake, as the regenerative system slows the car down.

HOW DOES IT LOOK? With the e’s cutesy styling, Honda has nailed the tie-up between futuristic and retro. The way the front lights mirror the rear ones, the shortness of the overhangs, and the rounded, ‘bubble’ nature of the way the e looks makes it a real head-turner.

Honda e Advanced

Price (as tested): £29,160 Engine: 113kW electric motor linked to 35.5kWh battery Power: 113kW (151bhp) Torque: 315Nm Max speed: 100mph 0-60mph: 7.8 seconds Range: 125 miles Emissions: 0g/km CO2

TARGET BUYERS:

Those who want an electric car with a genuine amount of charm and character.

THE RIVALS:

Mini Electric, Renault Zoe, Volkswagen e-Up!.

KEY SELLING POINTS: 1. Great design.

2. Cutting-edge interior.

3. Nimble handling.

DEAL CLINCHER:

The Honda e might be more expensive than rivals but it’s a whole lot more exciting too.

WHAT’S IT LIKE INSIDE? The cabin has been executed extremely well and the general standard of fit and finish is very good indeed, with wood trim pieces blending well with the high-tech elements. Space in the rear isn’t bad, but because of the battery at the back the boot is quite small – at 171 litres it’s enough for a weekly shop but it won’t take a family’s luggage.

WHAT’S THE SPEC LIKE? The e practically bristles with tech. The main infotainment setup, for instance, combines two 12.3-inch high-definition screens in the middle of the dash; in total, there are five screens where you can access various information. It also boasts side camera mirror systems, displayed via a screen inside the car and on either side.

WHAT DO THE PRESS THINK? Autocar called the e ‘an eminently likeable and capable small car with good dynamics but a limited range and an ambitious price’.

WHAT DO WE THINK? It’s a ground-breaking little EV and one that will undoubtedly prove immensely popular.

Interior Wood trim looks great with the high-tech elements and the fit and finish are very good, too.

CarDealerMag.co.uk | 25

FORECOURT

Trim levels

LAND ROVER DEFENDER

At launch there will be four options: Defender, Defender S, Defender SE and Defender HSE. There are also First Edition and Defender X models.

It promises traditional off-road abilities with a new-found on-road composure. Darren Cassey discovers if the revamped 4x4 nails the brief.

THE KNOWLEDGE

Land Rover Defender 110 D240 S Price (as tested): £52,110 Engine: 2.0-litre diesel Power: 240bhp Torque: 430Nm Max speed: 117mph O-60mph: 9.9 seconds MPG (combined): 31.7-29.3 Emissions: 234-253g/km CO2

26 | CarDealerMag.co.uk

WHAT IS IT? When discussing the greatest off-road-capable cars ever produced, few can come close to the classic Land Rover Defender. The iconic 4×4, which has its roots way back in the 1940s, became the go-to vehicle for those needing off-road capability and nothing else.

However, as buying habits changed and rivals became more capable, the traditional Defender needed shaking up. Revealed last year, the revamped Defender has burst on to the scene with a cool new look, better-than-ever off-road abilities – plus a new-found air of luxury, comfort, and driveability.

WHAT’S NEW? The new Defender is so far removed from the one it replaces that it’s not even worth comparing the two. Its vehicle platform is ’95 per cent new’ compared with the current Land Rover range and made from lightweight aluminium upgraded for ‘extreme’ capabilities.

Among other things, it also gets the latest version of Land Rover’s Terrain Response, so that off-road experts can tweak settings to their own liking.

WHAT’S UNDER THE BONNET? The plug-in hybrid engine is arguably the biggest news, but since that’s not available at launch we’ve been testing the D240 engine, which will likely be the most popular.

Among the stats (see left) are 430Nm of torque, and for a car like this, that’s arguably the most important, because you need it to help pull you out of trouble.

WHAT’S IT LIKE TO DRIVE? To begin with, we tested the Defender in the forests surrounding Eastnor Castle, not far from JLR HQ and where the car was tried out during production.

While the Defender unsurprisingly found little issue with dry, dusty paths – no matter how steep the inclines and declines – at times the route would turn to a gooey, chalky mess, but the Defender never hesitated, with barely a slip. And when the road became narrow or sharp crests appeared, the on-board cameras made them a breeze to navigate.

On the road? Excellent. The ride was sublime, ironing out bumps to make for carpet-like comfort, while wind and road noise was minimal at motorway speeds, too.

However, although it’s fantastically comfortable, the high centre of gravity and soft suspension leads to a lot of head wobble when things get particularly bumpy. Meanwhile,

Interior The cabin has a touch of luxury with some expensivefeeling materials and a new infotainment system.

TARGET BUYERS:

Off road The Defender never hesitated on the test drive through the forests surrounding Eastnor Castle.

Our tricky off-road route was mere child’s play for the Defender, yet when we took it to the tarmac it was quiet, refined and comfortable.

Those who want off-road security as well as sumptuous comfort for everyday on-road duties.

THE RIVALS:

Mercedes-Benz G-Class, Toyota Land Cruiser, Jeep Wrangler.

KEY SELLING POINTS:

1. Classic Defender abilities.

2. High-quality interior.

3. Fantastic on-road manners.

DEAL CLINCHER:

Ludicrously capable off road and perfectly comfortable on road.

the gearbox is frustratingly slow to respond to inputs, likely related to hitting emissions targets. But overall it drives much better on the road than any car this good off road should.

HOW DOES IT LOOK? Its boxy, upright stance remains, with enough chunky design features to give it the rugged looks its abilities deserve. There are nods to the old model to keep aficionados happy, too.

WHAT’S IT LIKE INSIDE? Land Rover has managed to give the cabin a touch of luxury, with some expensive-feeling materials, chic design and a new infotainment system, while keeping a more rugged look in places. Gone are the days of cramped interiors as well.

WHAT’S THE SPEC LIKE? Entry-level Defender 110 starts at £43,385 and includes 18-inch steel wheels, LED headlights, fabric upholstery, sat nav and all the off-road technology you could require.

Upgrade to the S from £46,840 and you get 19-inch alloy wheels, part-leather upholstery and an integrated driver display. SE starts at £50,690 and adds 20-inch alloy wheels, LED headlights with the signature DRL and LED tail-lights, front fog lights, a leather steering wheel plus the upgraded Meridian sound system. The HSE, from £55,515, gets different 20inch alloy wheels, Matrix LED headlights, a folding fabric roof, and full leather upholstery.

Meanwhile, First Edition models start at £55,220 and add electronic air suspension, configurable terrain response, a heated steering wheel and khaki leather upholstery.

Finally, the Defender X, starting at £75,510, gets more advanced off-road abilities, a sliding panoramic roof plus two-tone leather upholstery.

WHAT DO THE PRESS THINK? What Car? praised its ‘accomplished on-road driving manners’.

WHAT DO WE THINK? It’s fair to say the new Land Rover Defender has succeeded in appealing to those who have long loved its no-nonsense ruggedness as well as those looking for a practical, characterful, family runaround. Our tricky off-road route was mere child’s play for the Defender, yet when we took it to the tarmac it was quiet, refined and comfortable.

Turn over page to read about the history of the Defender CarDealerMag.co.uk | 27

LAND ROVER

HISTORY OF A 4X4 ICON

With a new and arguably controversial Defender out now, Darren Cassey looks back at Land Rovers down the years.

S

ince its inception in 1948, the Land Rover has earned a reputation as the ultimate offroader. It was designed with the premise of being an all-purpose vehicle that could conquer any terrain.

It quickly became a success, and was gradually updated throughout the years. This year, Land Rover has finally introduced an all-new version, bringing more creature comforts to its iconic off-roader.

Here we take a look at how this much-loved model grew.

1948 Series I

The Land Rover was launched at the Amsterdam Motor Show on April 30 and would later become known as the Series I. It had a 50bhp 1.6-litre engine from the Rover P3 and a pick-up body style. After a year, 8,000 had been built and the British Army ordered its first trial cars.

Selectable two- and four-wheel drive was added in 1951. The engine was increased to a 52bhp 2.0-litre unit the following year, and a new long-wheelbase version was brought in as well.

28 | CarDealerMag.co.uk

2019 New Defender goes on show

At the 2019 Frankfurt Motor Show, the new Defender revealed its allnew platform, advanced off-road technology and cool, retro-inspired look. Some purists were disappointed to see the interior move upmarket, as the traditional model was known for being easy to clean when used as a true workhorse. But new Defender has some of the most advanced off-road technology on a production car to make it capable on any terrain, while also being pleasant inside for those wanting a practical SUV.

1990

The Defender is born In 1990, the Ninety and One-Ten models were renamed Defender 90 and 110, and were joined by a new 130 variant.

The next major milestone didn’t come until 2007, with a major update bringing a new fourcylinder turbo-diesel engine as well as a six-speed manual gearbox, updated dashboard plus new body styles. In 2015, Land Rover celebrated ‘The Year of the Defender’ with three new Limited Edition models being launched as well as recreating the Series I production line in Solihull.

Production finally came to an end in January 2016.

1958 Series II

The second-generation model was introduced, featuring a new but recognisable look and a 2.25-litre petrol engine, before a facelifted version brought a 62bhp 2.3-litre diesel.

In 1962, the Forward Control model was launched with new petrol and diesel engines, and focusing on being a real workhorse. Just four years later, Land Rover production broke through half a million vehicles.

1971 Series III

Another new-look Land Rover is launched with a plastic grille, flatter door hinges plus a full-width dashboard. To demonstrate its accelerating popularity, production hit 750,000 in 1971 and then one million by 1976.

In 1983, the Series III underwent some modernisation, with a new One-Ten model being introduced, leaf springs being replaced by coils, and four-cylinder engines that got a full synchromesh five-speed manual gearbox.

CarDealerMag.co.uk | 29

FEEDBACK TOP TWEETS

One ex-motor trade exec told us how work and life pressures almost drove him to suicide – here’s how Twitter responded

Should I be using Facebook for my new dealership?

Despite eye-watering auction prices and still getting my head around prep standards (after being prestige main dealer for the last 10 years) I have had a good start to my new venture. Wish I had done it years ago.

Just wondering if anyone out there uses Facebook much? I have an account which I stopped using about eight years ago just because I was tired of the bullshit on there. However, I am wondering if it is worth reactivating the account for business use. I am assuming that very little actual sales traffic will come out of it but wondered if anyone found it useful just as a presence for their business.

DCS01

@beaton_bruce

Mental health in the trade has a lot of high-level ambassadors but in reality non-existent at the cliff face. It’s OK to not be OK all the time.

@RupturedDuck

My employer has taken a strong lead in mental health, with a ‘well-being fund’ we have access to, mental health first-aiders and free access to the CALM app.

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

PICTURE OF THE MONTH

Anything that improves road safety is good, so this new Dutch-style roundabout in Cambridge that prioritises cyclists and pedestrians has to be a plus. It looks baffling but we’re assured it played no part in a driver’s collision with a Belisha beacon that led to a temporary closure before it opened...

It’s a very Marmite subject. As in most advertising, it needs a lot of trial-and-error tweaking to see any rewards. Opening an account, sticking a car on and hoping for the best will get you nowhere.

Have a look close to you, see who is popping up daily, and check their comments and pictures to see how other people are doing it. justina3 I’m personally sick to the back teeth of Facebook. ‘Is this negotiable?’ No. ‘What’s your best price?’, ‘I’ve got £2,000 max for this’ when it’s £4,000. ‘Can I see this after 10pm?’ Yes, on the website they’re viewable 24/7, mate.

That’s my experience anyway, others may well have more success. It depends on stock profile I think, as we never get a response on our more upmarket stock, only the cheaper end or part-exchange to clear stuff.

David Horgan

You could try for yourself. There’s nothing better than selling a car and it only costs £20 for a local boost. With the app on your phone it takes nanoseconds to ignore or engage with a customer. justina3

@Ninapyoung

Read this article earlier today and totally believe that the industry could be doing more to protect employees’ mental health.

@desk_behind

Thanks for bringing this up.

It is definitely an important topic that isn’t discussed enough.

30 | CarDealerMag.co.uk

All my cars go on Facebook Marketplace. I would say we sell one to three maximum proper retail cars a month, but who cares? It’s free and I answer every inquiry.

It’s amazing for selling the sub-£1,000 bangers super quickly. I mean, if you stuck a 200k Passat or Octavia on you would get about 25 inquiries within an hour.

So yes, personally, I like it. Yesterday, I retailed a £3990 Ibiza through on Facebook Marketplace, sold within 24 hours to a lovely local couple. So why would I ever pull the ads?

SC Derby Facebook has become a good buying tool. Some of the closed group trade pages are now very good, plenty of the ex-autotrademail lads on there. The high volume of trade buyers is the problem – you do have to be super-quick when an ad goes live.

With regards to selling, I don’t know about cheaper stuff, but some of the specific brand group pages definitely work for lumpy stuff like TVR and Porsche. awc1000

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

Our website at CarDealerMag.co.uk

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

RIDICULOUS REJECTIONS

Maybe it’s time to start a site where we review customers Dare I ask just how many of us have had the customer reject the car for the most ridiculous excuses?

I was wondering whether someone ought to start a customer review website for dealers to leave a review on p**s-taking customers.

Perhaps using toilets instead of stars as ratings. car dealer 101

We’ve teamed up with Car Sales Memes to bring you a few of their funniest captions and slogans each month. Enjoy!

Interesting topic. In more than 30 years in the business I have seen hundreds of cars exchanged and all bar a couple (which we didn’t retail) have found new homes without further complaint. I have often tried to find, without success, a logical answer for this. petrol head Every time I’ve refunded a customer and resold the car I have never had the car come back again. Every now and again we get unreasonable customers. I try my best to filter it out before it gets to that stage, but on occasion we make a mistake and one slips through the net.

Rory RSC Another thing is a customer in a £5,000 car always seems to be more understanding if a fault develops that we are doing our utmost to repair it and get to the bottom of the fault, as opposed to the customer on a £995 part-exchange who will come in all guns blazing and demanding that their whole car is stripped and rebuilt for something like a squeaky glovebox or creaky door.

Casper

Remembering the August 1 plate change For those of us old enough to remember there was only one plate change annually on August 1. It was the day of the year if you were in the motor trade.

My first one was ’83, when the A was the start letter. That was some day! We got through it by delivering cars on 30th and 31st where the customers were entrusted not to drive them.

I vividly remember as a kid counting the new registrations on every journey for about a month. petrol head I remember doing the same as a kid. I recall a lot of the big dealers stayed open late so the punters could drive their new cars away at midnight on 31st.

XFS

Midnight Drive Aways I think we called them. We’d loiter at the main dealers from 11pm waiting for the swappers we’d been promised. We’d also try and capture the swappers promised to others. trade vet

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

Search for Car Sales Memes on Facebook, Twitter or Instagram and give them a follow!

Car Dealer reserves the right to edit comments CarDealerMag.co.uk | 31

DASHBOARD

INDUSTRY VIEWS

NEWS AND THOUGHTS FROM SOME OF OUR CAR DEALER LIVE GUESTS CLEEVELY ELECTRIC VEHICLES

A business born out of EV buying frustration

CHELTENHAM-based EV advocate Matt Cleevely established Cleevely Electric Vehicles two years ago as a sister to the family business, having become frustrated trying to buy an EV for his wife.

He said of his experience: ‘One of the most frustrating points was that not only were [the main dealers] denying me access to the cars that I wanted to test-drive but they knew nothing about them and they had them there to sell.’

JAMES LITTON

WAYLANDS AUTOMOTIVE

Orders of new and used beginning to balance

DEALER group Waylands has seen orders for new and used vehicles begin to balance out.

The group of four Volvo dealerships along the M4 corridor has seen incredible demand for used cars that hasn’t slowed since June 1, when showrooms in England were allowed to reopen.

However, CEO John O’Hanlon told Car Dealer new vehicle interest was gaining traction too, and the balance between new and used car sales was balancing out.

He appeared on Car Dealer Live on July 22 and said: ‘New cars have picked up in the last two weeks. We’re getting that 50/50 where we had a dominance of used car order take.’

DS AUTOMOBILES UK

FIX AUTO UK

LISTER CARS

Sales has changed, but DS customers look for much is still the same something different

Nice work on stimulus but poor show on rules

We shifted 14 of first model on launch day

CAR Dealer columnist James Litton commented on how over the 10 years he’s been writing for the magazine some things had changed in sales while others were the same, but acceptance by customers of online sales had certainly become more prevalent.

‘But the key fact is people see car, interested in car, we try to sell car, be as good as we can be, manage expectations, and deliver the car,’ said Litton.

THE government has done a top job with stimulus packages during the pandemic but it let the automotive industry down when it came to help with interpreting the rules, according to Fix Auto UK MD Ian Pugh.

He said: ‘The government would apply a central policy but that would be interpreted differently by each local authority. For example, we were told “You’re industrial repair, therefore you’re not going to get a grant because it’s not retail.”’

LAWRENCE Whittaker sold 14 of his first Lister Jaguar F-Type conversions on the release day without a big launch, he said on Car Dealer Live.

It had three years of development and there wasn’t a budget for a major launch so Lister Cars simply sent out a press release – and sold 14 cars on the day at £155,000 each, which was a £65,000 increase on the Jaguar. Now it’s about to launch its take on the Jaguar F-Pace SVR – the 666bhp Lister Stealth.

32 | CarDealerMag.co.uk

ALAIN Descat, who took over as managing director of the UK division of DS in 2018, is in no doubt at all about the brand’s strength.

But rather than push for market share, DS wants volumes to grow for its retailers with each new car, so that those who had invested in DS could build a profit in the long term.

He told us: ‘We need to collectively find those customers who are looking for a status car which is different to the rest.’

The latest from our fleet.

Long-termers: p67

Watch our Car Dealer Live broadcasts on Mondays, Wednesdays and Fridays at midday or catch up at: cardealermagazine.co.uk/live CAP HPI

GFORCES

Autumn could see dip in used car market

Make sure your site is mobile-friendly

HIGHER unemployment and lower consumer confidence will both play their part in the immediate future of used car values, reflecting the economic impact of the pandemic, said Derren Martin.

‘In an economic downturn, people do tend to gravitate towards used cars rather than new, but I think there’s going to be a reluctance to make a big-ticket purchase. There could well be a dip that we think may come September, October time.’

MOBILE will be crucially important for all car dealers with ‘70 per cent at least of all website traffic on mobile devices’ by December.

Paul Hilton, sales director at GForces, said: ‘The majority of that is obviously iPhone and Android. Those devices work slightly differently, the way they interact, the way they load, the way forms work, so dealers need to take the time to look at their own websites on their mobiles and see what that looks like’.

ASE GLOBAL

‘In an economic downturn, people do tend to gravitate towards used cars rather than new, but there could well be a dip come September, October time.

Derren Martin Cap HPI

Expect to see further electric car gains

DIESEL sales fell in July while petrol was steady and the electrified vehicle sector showed big gains.

‘And that’s really what we’re going to see as a theme over the next few years as we get the consistent launch of new vehicles from all the brands,’ said Mike Jones, chairman of ASE Global, on Car Dealer Live.

He added: ‘Overall on the July number it’s clearly a good news story and we should be celebrating that, but July is not the biggest month.’

SPECIALIST CARS OF STOKE

It’s wrong to turn away non-mask wearers

UHY HACKER YOUNG

Many dealers now looking to sell up for good AN INCREASING number of car dealers are looking to sell up their businesses – resulting in opportunities for some of the well-funded, bigger dealer groups.

On Car Dealer Live, David Kendrick, corporate finance partner at accountancy firm UHY Hacker Young, said the economic fallout of Covid-19 had prompted some dealers to chuck in the towel.

‘We’ve had the lockdown period, we’ve then had this pent-up demand that we’ve come back to and some really strong profitability. But I do think there is an underlying nervousness within some of the smaller dealers as to how tough it might get. It’s going to be a good couple of years before this whole thing passes,’ he said.

UMESH Samani won’t be refusing to let people into his dealership who aren’t wearing a mask.

He said: ‘With car dealers, since we reopened on 1 June every single dealer has taken precautions. We’ve done the distancing, we’ve got screens, we’ve got the sanitisers… so all of a sudden to be thrown this curveball to say masks as well – I just think it’s wrong anyway personally.’ He added that he had masks to give customers.

CarDealerMag.co.uk | 33

INFOCUS FOCUS..

THERE’S NO BETTER TIME TO BECOME AN ISUZU DEALER SIX-PAGE SPECIAL: LOOKING FOR A PICK-UP FRANCHISE? NO NAME CARRIES MORE WEIGHT

34 | CarDealerMag.co.uk

ADVERTISEMENT FEATURE

There’s no better time to become a Pick-up

INTERVIEW

Profitable, enjoyable, simple to operate ...and a great new model on the way! UK MD William Brown talks to Car Dealer.

I

suzu is a manufacturer that’s really going places – and it’s looking for more UK dealers to become part of its success story. It’s a company that has some ambitious targets for the next five years but plans are in place and it knows that with the right dealers on board, they’re definitely within reach.

While Isuzu has been part of IM Group since 1987, it’s in recent years that it’s really been making a name for itself.

Managing Director William Brown is the man leading the company to new heights, and he’s proud that the business has become a major player in the pick-up market, outselling many bigger brands.

The pick-up sector is in a real sweet spot, he points out, and 2020 will be a very exciting and important year for Isuzu UK. In early 2021, Isuzu will be launching the All New Isuzu D-Max, pictured on the left.

This new model will be a game-changer for Isuzu that will dramatically accelerate sales to get the brand on track for its 2025 target of 10,000 sales.

Brown said: ‘We are so excited to receive this new model. It is a big step forward for Isuzu and will be the most advanced pick-up on sale in the UK, setting new

Professional. Call Melissa Butcher on 0121 730 8073 or email mbutcher@isuzu.co.uk

For us, everything we do for our dealers has to be simple, fun and profitable.

ISUZU

BY NUMBERS

99

The number of Isuzu dealers currently in the UK network.

9

The number of awards won by the dominant D-Max in the past 12 months.

10,000

standards in the sector.’ To take advantage of the new model, the brand has a plan to work with existing dealers to help their businesses and sales grow while increasing the number of franchises to a figure of around 110 dealers.

As the volume grows, Brown admits that not all of the existing dealers will be able to keep up and this will create new opportunities where replacement dealers are required.

Although the pick-up market might seem like a niche that not everyone can get into, there is a wide range of dealer types who have had success with Isuzu.

Brown explained: ‘We’ve got a varied mix in our network, from traditional car dealers to agricultural dealers and LCV dealers.

‘Recently, we have had good success with the appointment of some larger retail groups and independent used car dealers. Because it is a simple franchise to operate, it is very easy to integrate into a successful existing operation, whether it be cars, 4x4s or LCVs.’ He added: ‘There’s good money to be made with the D-Max because it’s a niche sector, it’s not a mass-volume vehicle and, as a distributor, our focus is on sustainable growth so we never get pressured to do things for the sake of market share. We don’t do activities to promote preregistration, and we make sure that wherever possible our sales go through our dealers. We don’t deal with brokers either.’

Niche it may be, but Brown points out that you don’t have to be a product genius to join Isuzu.

‘What we’re looking for in a new dealer is someone who is dedicated to our brand within their existing business,’ he said. ‘They don’t need to be a pick-up expert. We can do all of the training. Most of the time, a pick-up is being bought to be used as a pick-up and that’s why it’s an easy product to sell. That’s where we win.’

He added: ‘The other unique opportunity with Isuzu is that it’s not just about chassis profit; a key advantage we have is our accessories.

‘All of our vehicles have a large range of accessories that customers will purchase at the point of sale. We have the largest accessory range of any pick-up manufacturer in the UK. ‘Working with Isuzu is very different to other brands. Don’t just take our word, you only have to speak to our dealers to find out for yourself.’

As Brown explains: ‘Because we’re a privately owned family business, we’re very approachable.

We’re not just interested in our dealers’ performance; the relationship between our partners and Isuzu is just as important to us.

‘For us, everything we do for our dealers has to be simple, fun and profitable. It’s all about making business as simple as possible, whether it be trading terms, campaigns or communications.

‘Because everyone spends so much time at work, it’s got to be fun, but of course, they won’t do it for nothing, so it’s got to be profitable too.’

The number of sales Isuzu is aiming for by the year 2025.

110

The number of dealers the brand is aiming to have in its UK network.

3.5

The D-Max’s towing capacity in tonnes.

5

Isuzu vehicles are all delivered with a five-year, 125,000-mile warranty.

CarDealerMag.co.uk | 35

INFOCUS FOCUS..

ADVERTISEMENT FEATURE

There’s no better time to become a Pick-up

ISUZU RANGE

Our award-winning line-up ISUZU only makes commercial vehicles and its focus is the Isuzu D-Max – a range of pick-ups that are exceptionally tough, strong and built to go the distance.

It’s a single-minded specialism that means they make outstanding vehicles that are truly fit for purpose. That’s why they’re called the Pick-up Professionals.

Designed to be up for the challenge, the turbo-diesel engine produces 162bhp and 360Nm of torque while meeting Euro 6 emission standards without the need for AdBlue, plus delivering more than 40mpg combined (all manual models).

For complete peace of mind, all new Isuzu D-Max models retain the five-year/125,000-mile warranty and five-year roadside assistance across the UK and continental Europe.

Utility

Eiger

From £17,414 CVOTR

From £22,514 CVOTR

36 | CarDealerMag.co.uk

XTR

From £34,504 CVOTR

Yukon From £23,514 CVOTR

Professional. Call Melissa Butcher on 0121 730 8073 or email mbutcher@isuzu.co.uk

MARKET LEADER

Pick-up an award-winning best seller THE All-New D-Max has already been launched in its home market and is already a winner. The market in Thailand is down by over a third this year. Despite this backdrop, the all-new D-Max has achieved market dominance, with stellar sales giving Isuzu a third increase in sales! Putting Isuzu ahead of the Toyota (Hilux), Mitsubishi and the Ford Ranger with nearly a third market share for themselves. With this market-beating sales potential, the all-new Isuzu D-Max is going to be very hard to beat.

THE Isuzu D-Max has been named What Van? Pick-Up of the Year for 2020 – the third year running. The vehicle had a successful 2019 too, being crowned Pick-Up of the Year at the Commercial Fleet Awards (second year running) and collecting the ‘Pick-Up of the Year’ title from Pickup & 4x4 Pro. In addition, it was named ‘Best Working Pick-Up’ by Professional Pickup & 4x4 magazine and ‘Best Workhorse Pick-Up’ by Trade Van Driver (seventh year running). Isuzu was named Van/Truck Brand of the Year

by On The Tools (second year running).

Utah

Blade

Arctic Trucks AT35

From £26,214 CVOTR

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From £40,500 CVOTR

CarDealerMag.co.uk | 37

INFOCUS FOCUS..

NORTHERN IRELAND

Investments that show full confidence in our brand

ADVERTISEMENT FEATURE

I

f there’s one thing that shows Isuzu’s dealers are confident about the future, it’s the fact that they are prepared to invest significantly in a brand that they know will deliver, both in terms of desirable vehicles that customers will want to buy and ongoing profitability.

Two of the most high-profile and most respected dealerships in the UK network – John Barr Cars and Eakin Bros, both in Northern Ireland – have recently transferred to stunning state-ofthe-art showrooms, after each investing heavily in new premises and in doing so creating the finest Isuzu dealerships in Europe.

There’s no better time to become a Pick-up

Both sites were officially declared open last summer by not one but two Isuzu managing directors: Mikio Tsukui, Managing Director and Chief Executive of Isuzu Europe, and UK boss William Brown.

The managing directors of both dealerships chatted to Car Dealer recently about the investments they had made and the relationships they enjoy with Isuzu and the IM Group. John Barr explained that his company had built a new showroom about four years ago but soon outgrew it, hence the impressive new home.

He said: ‘IM are very easy to work with. You

LISTERS GROUP

I like Isuzu. They’re old-school – and ready to help out ISUZU Worcester might only have been trading for a matter of months but things are already looking VERY positive. The Pick-up Professional at the dealership is James Williams, who told Car Dealer he was enjoying life with Isuzu and IM. The dealership is notable because it’s the first Isuzu site to be operated by the respected Listers Group. Situated over the road from Listers’ Audi and VW dealerships, the business went live on November 29 last year.

‘We’re obviously pretty new but word is getting round,’ James told us. ‘We’re advertising and doing everything possible to get the word out there. I’m enjoying life with Isuzu. I answer to IM and they’re a fantastic group to work for.’

38 | CarDealerMag.co.uk

Asked if everything went well during the set-up process, James said: ‘Yes, everyone has been very supportive. Isuzu are great because all they want to do is help you sell trucks. If you’ve got any issues, they’re easy to reach on the phone.’

When we wondered whether the various iterations of D-Max were going down well at the dealership, James said: ‘Yes, very much, 100 per cent. Isuzu is a working truck but it also does well as a lifestyle option. You can stick a D-Max in a field but you can also park one outside a nice hotel and it won’t look out of place.’

So should prospective dealers get in touch with the company for a chat? ‘Definitely. I like Isuzu – they’re old-school and keen to help.’

James Williams at Isuzu Worcester

Professional. Call Melissa Butcher on 0121 730 8073 or email mbutcher@isuzu.co.uk

A special cake marked the opening of the new John Barr Cars dealership in Antrim

Mikio Tsukui and William Brown join the team at Eakin Bros, Londonderry, left, while above, Mr Tsukui cuts a ribbon to declare the new John Barr showroom open in Antrim don’t have to jump through hoops. We are very happy with how they deal with us and very happy with the results we have every year.’

When we mentioned the prospect of the new D-Max arriving in early 2021, Barr said: ‘We can’t wait! There seems to be a demand out there for a bigger, bulkier-looking pick-up and we’re hoping that the new model will satisfy that. We do exceptionally well with Isuzu – it’s worked very well for us and we have no regrets whatsoever.’

Peter Eakin, managing director of Eakin Bros, was just as enthusiastic. ‘We’ve been involved with Isuzu for 18 years and we have a very close

relationship with them,’ he explained. He added that his sales team worked closely with many customers who were involved in farming and construction and that the D-Max fitted the bill because it was so hard-working and reliable.

Looking ahead, Eakin told us: ‘The new D-Max will move us on to the next generation of pick-ups and will be a huge step forward.’

And emphasising the manufacturer’s friendly way of doing business, he added: ‘Everyone’s on first-name terms, whether that’s the managing director, area manager or the parts specialists.

Everyone’s very easy to talk to – and they listen.’

We are very happy with how they deal with us and very happy with the results we have every year.

When the two new dealerships opened last year, UK MD William Brown said: ‘I’m personally delighted with this huge double leap forward.

‘Of course, our network is not just about glamorous buildings though, and year after year John Barr Cars and Eakin Bros have won multiple Dealer of the Year awards in both sales and aftersales by delivering good old-fashioned customer service and paying thorough attention to detail in every aspect of their businesses.’

Maybe you should talk to the team at Isuzu to share in the manufacturer’s success. There’s no better time to get involved! CD

COMPASS TRACTORS

We are definitely going in the right direction with Isuzu!

ANY dealers thinking of getting in touch with Isuzu to discuss taking on the franchise might want to listen to what Paul Jenkins of Compass Tractors has to say.

Franchise sales manager Paul told Car Dealer: ‘You won’t find a better company to talk to.

They’re responsive, they come back to you, they’re very personable and it’s a simple franchise to set up.’

What attracted Compass Tractors to the brand in the first place? ‘Selling Isuzu pick-ups goes hand in hand with what we do,’ said Paul.

‘Of all the people coming into our business, about 90 per cent of them drive pick-ups, whether they are farmers or agricultural contractors. Plus,

it’s quite a low cost to set up. The brand is very generous with the initial set-up and they also give you a good marketing budget for the first six months. I can’t say enough good things about Isuzu – all the people I speak to are more than helpful and friendly.

‘As for the product, it’s reliable. The vehicles are solid, reliable and are built to a commercial standard, which a lot of pick-ups aren’t.

‘We wouldn’t have taken the franchise on if it was going to cause us issues. We did our homework first and it fits well with the agricultural and leisure sectors.

‘To sum up, it’s enjoyable, profitable and a joy to work with IM.’

Compass Tractors in Bridgwater, Somerset CarDealerMag.co.uk | 39

DASHBOARD

FINANCE NEWS FCA

Discretionary commission ban to be brought in

by John Bowman john@blackballmedia.co.uk

A

ban on car finance discretionary commission models is to be brought in next year, the Financial Conduct Authority has confirmed.

It follows a consultation, as reported by Car Dealer, and will save customers £165m a year, the watchdog estimates.

At the moment, some car retailers and motor finance brokers get commission linked to the interest rate paid by customers. This, said the FCA, created an incentive to sell more expensive credit to some customers, as the broker could effectively set the interest rate, and the authority found that the widespread use of this type of commission gave an incentive for brokers to act against customers’ interests.

The ban will come into force on January 28, 2021, and Christopher Woolard, the FCA’s interim chief executive, said: ‘By banning this type of commission, where brokers are rewarded for charging consumers higher rates, we will increase competition and protect consumers.’ The FCA will also change how customers are told about the commission they are paying to ensure they receive more relevant information.

Mike Jones, chairman of dealer profitability specialist ASE Global, told Car Dealer: ‘The majority of motor retailers had already moved away from these discretionary interest models. I am pleased that the commission disclosure requirements have not been expanded and, handled correctly, this disclosure can increase transparency and trust.’

David Kendrick, head of corporate finance at the Manchester office of chartered accountants UHY Hacker Young, told us: ‘Whilst the small print will need reading carefully, it appears that a fixed commission/fee model may have to be adopted by the dealers and brokers, which will be fully disclosed to the consumer.

‘The frustrating thing is that many dealers now operate with very specific interest rate bands, therefore perhaps they are now going to be penalised because of the actions of others who pushed customers into very high interest rate products historically, earning handsome commissions on the back of it.’

Adrian Dally, head of motor finance at the Finance and Leasing Association, said: ‘This is a welcome announcement from the FCA as it provides clarity for the industry.’

The FCA consulted until January of this year and is looking to hold a review in 2023/24.

ADAPTATION

‘Economic Darwinism in action’ THE speed with which dealers have adapted to the new normal over the past few weeks has been little short of breathtaking, says Startline Motor Finance.

Chief executive Paul Burgess said many had changed from being largely traditional showroom-based businesses to online-based enterprises in a matter of weeks.

‘There has been little opportunity, or perhaps even headspace, to stand back and look at what we have achieved as an industry in recent months but it has, to my mind, been little short of breathtaking.

‘No one knows whether the changes made will be right in the medium to long term – and it could be that we have to go through several more revisions – but they have been very, very effective in meeting the demands of the current market.’

He added that a dealer had described the events to him as ‘economic Darwinism in action’.

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THE UK’S #1 ASMOTOR FINANCE LENDER VOTED FOR BY CONSUMERS*

*on reviewcentre.com

40 | CarDealerMag.co.uk

IN ASSOCIATION WITH

TIME IS MONEY BEN GARSIDE

A MONTHLY LOOK AT THE WORLD OF AUTOMOTIVE FINANCE AND MARKETING

Traditional methods could attract customers in future

I

Ben Garside is marketing manager for First Response.

Call him on 07817 518739 or email ben.garside@frfl.co.uk

’ve been doing a lot of research recently as part of my role, and it’s something that I do regularly. However, this time I approached it with a view to helping our motor dealer partners with their advertising and the associated costs. Most of my time was spent looking into buying habits and changes within Google searches.

A lot of articles are stating that most consumers have been limiting the distances they’re willing to travel to purchase goods, and instead have been buying locally. With this change in mind, there could be some benefits to a rethink in your advertising and targeting.

For instance, you could change your adverts to be geo-targeted. This is a process where you set your digital adverts to only show in a certain geographic location (Nottingham, for instance), or you set them to only show for a 10-mile radius of your business address. This is a great way of targeting local buyers via tools such as Facebook or Google AdWords.

Previously, most of the finance-led or large dealers that I converse with used a mass marketing approach to their digital advertising, allowing their adverts to be seen across a region or even the entire UK. This is a high-cost and low-converting approach, and considering consumers aren’t willing to travel as far as they were before, this is a strategy I would advise against.

That being said, for those dealers who have implemented car delivery services with or without distance selling, you could probably benefit from some national or greater distanced advertising.

Having looked at Google trends and a few other analytics tools, the knowledge gained is that searches for ‘used car delivery’ and ‘car delivery’ has increased. Obviously, ‘Cazoo’ has also increased, and some of the other comparable search terms reviewed have nearly doubled in the past 12 months.

If you have this service at your dealership, you should be shouting about it in your adverts and using the keywords to gain the customers who are still cautious about going outside – especially considering how the government and news are talking about a second wave, and that a rise in cases is possible throughout the winter months.

There are many other marcoms methods that you could consider to capture local consumers, for instance bus/bus stop advertising, supermarket advertising, local door drops, etc. I know this may seem like a step back in time, but looking at the data we need to change our approach, and the fact is we have a lot of customers who want to stay local compared with six months ago.

It is likely that we are not going to be back to normal for quite some time, so returning to a traditional marketing approach may actually bear some fruit.

98%

OF CUSTOMERS WOULD RECOMMEND FIRST RESPONSE

I know this may seem like a step back in time, but looking at the data we need to change our approach.

GET IN CONTACT TODAY. frfl.co.uk/car 0115 946 6260 enquiries@frfl.co.uk CarDealerMag.co.uk | 41

5 UP CLOSE

OF THE BEST FEATURES OF THE GORDON MURRAY AUTOMOTIVE T.50 The legendary designer has created an incredible new supercar – Darren Cassey discovers the details.

A

ny list of the most iconic cars ever made will feature the McLaren F1. When it was released in the 1990s it was well ahead of its time, and its designer Gordon Murray is world renowned as one of the greatest ever.

He’s created a new company in his own name and has just revealed his first supercar, called the T.50.

No expense has been spared in the production of the car, which has a host of fascinating details, and here we highlight some of the vehicle’s coolest features.

42 | CarDealerMag.co.uk

Central driving position and no touchscreens

It’s lightweight

Much like Gordon Murray’s earlier design, the McLaren F1, the T.50 has a central driving position with a seat behind on each side for passengers to provide the purest possible driving experience.

There’s nothing in the car that’s unnecessary so there are no touchscreens because Murray isn’t a fan of them. Instead, the car connects wirelessly to the driver’s phone for entertainment and navigation purposes. Anything that can’t be controlled through the phone has a physical button or dial.

Given the huge performance and mid-rear-mounted V12 engine, you might be surprised to learn that the T.50 is tiny – it’s actually slightly shorter than a Porsche 911. That’s partly because Murray didn’t want anything unnecessary on the car so as to keep the weight low.

Through the use of lightweight materials and clever tricks such as hollowing out the alloy wheels, the T.50 weighs just 986kg. For some perspective, the Mazda MX-5 – itself considered a tiny, lightweight car – weighs more than 1,100kg.

Ground effects On the back of the car is a large fan, which aids downforce. Most cars rely on wings of varying sizes across them to create downforce and improve handling. However, the fan allows the air to be sucked through the diffuser at a steeper angle, making a lot of downforce without the need for wings. The result is a very clean-looking car that therefore also creates minimal drag, improving top speed and efficiency.

The fan has various modes depending on the driver’s need, including one that sees it spin up to full speed during emergency braking.

The V12 engine

It’s a manual Modern performance cars almost never have manual gearboxes because automatics are so much quicker and so few buyers opt for the manual. However, Murray wanted the T.50 to be the ultimate driver’s car and decided to include a six-speed manual shifter.

The linkages between the shifter and the gearbox are on display, too, so passengers can see the inner workings of the car on the move.

The T.50 is powered by a bespoke V12 engine that has been built by Cosworth. Murray had high demands of the company but it has achieved them all. It makes an incredible 651bhp and revs to an unbelievable 12,100rpm. There’s no turbocharger and Murray doesn’t like belts, so it has a small 48-volt motor that runs a number of parts to keep the design ultra clean.

When not in gear, it can rev 28,400 times in one second. By revving so quickly up, it also revs quickly on the way down, so the company is having to develop software to help with gear changes.

CarDealerMag.co.uk | 43

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44 | CarDealerMag.co.uk

Mourning Mitsubishi’s demise – but not all that surprised by it

T

They were the good times – but that seems an awfully long time ago now.

he news that Mitsubishi has effectively been killed off with the firm’s decision not to produce any more cars for Europe was, it’s fair to say, a monumental shock. In fact, so much so that I didn’t quite believe it when I first read it.

When the news broke at the end of July that Mitsubishi was retreating from Europe, the first thing I could think of was to call its UK MD, Rob Lindley. Rob’s a good guy with previous experience heading up Harley-Davidson here so has been around a while. He was surprised to hear from me but took the time to chat.

He told me even he was surprised when he heard the news. He admitted that they found out just a few days before it leaked out to the press and said he was shocked when he heard that the brand was pulling development of new models for the brand in Europe. He knew there had been difficult times of late, but wasn’t expecting a full retreat.

Mitsubishi has always struggled with its model cycle. First there was the L200 success, something that carved a profitable niche for its loyal band of dealers, but then that tailed off. The Shogun found its place but was always slow to be updated, and then, more recently, the Outlander PHEV carved another niche for itself, before becoming overpriced and superseded. And that’s not forgetting the Evo models that fans craved and dealers loved selling. The writing, though, really has always been on the wall for the brand. It’s one I’ve always had great affection for, but I’ve been baffled over the years as to why it would let itself flow from boom to effective bust with its slow model-replacement cycles that never let dealers build up a head of steam.

I can’t imagine the feeling of dread the dealer network felt when it heard the news. I spoke to one franchisee, who wanted to remain anonymous, who told me the rug had been pulled from under the network, and that while he was already planning to replace the franchise, others in the network were burying their heads in the sand. What’s more worrying is just how fast the demise will be. While L200 will be around until the end of next year and the Mirage model that no one ever buys until 2022, the mainstay of the brand, its SUVs, will dry up possibly as soon as March.

Dealers have been told they can sell what’s at the port but after that’s gone the chances of getting anything else is minimal. They have been promised ‘one more boat’, but my contacts doubt even that will happen.

This, then, is the start of the death of a brand that has built up a fantastic following in the UK. I even had the pleasure of attending the marque’s 40th anniversary celebrations in 2014. There, Mike Brewer, our Used Car Awards host, waved off a special tour of cars and members of the press were invited to wing walk on biplanes. They were the good times – but that seems an awfully long time ago now.

Importer the Colt Car Company has promised dealers it is ‘accelerating’ talks with other brands to replace the franchise.

But these dealers, many of whom have been with the manufacturer for more than 30 years, didn’t sign up to another brand. They signed up to Mitubishi. More worryingly, as we report elsewhere in this issue, there are many other brands that hang precariously in the balance too. Some are on a knife edge of survival, not that they’d admit it. You only have to look at some of the other low-volume manufacturers that have drifted away from the electric vehicle development race and are suffering as a result.

While I have no doubt Mitsubishi won’t be the last brand to disappear from these shores, I can’t help but feel for the dealers who have spent decades toiling for a brand only for that to evaporate in no time at all. Dealers are a resilient bunch, though – entrepreneurs who work hard to build their businesses. Let’s hope that those who are feeling the pain now of Mitsubishi’s decision will soon be snapped up by the next upstarts to ride a new wave of growth for this industry.

Speaking out

COMMENT

JAMES BAGGOTT

AGAINST OUR BETTER JUDGMENT, WE LET THE CEO HAVE HIS SAY EACH MONTH James Baggott founded Car Dealer Magazine and is the 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.

CarDealerMag.co.uk | 45

Big Mike OUR MAN ON THE INSIDE SHARES HIS THOUGHTS ON THE CAR BUSINESS

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.

46 | CarDealerMag.co.uk

COMMENT

Money talks when it comes to used cars in this mixed-up world

E

ver since Dominic Cummings decided to test his eyesight by driving a Land Rover Discovery to Barnard Castle, we’ve been dealing with mixed messages left, right and centre.

Well, right at least, but best not bring politics into this. Let’s just say I originate from the UK’s industrial heartland, so where Big Mike’s concerned it’s fair to say that blue isn’t the colour. You go your way and I’ll go mine – I’ll never judge.

Anyway, away from the little bit of politics creeping in there, the mixed messages are clearly being passed down to the car-buying public, many of whom weren’t the car-buying public just a few weeks ago.

But now, as we’re being told to all go back to work but not go back to work, to wear face coverings in public but not in pubs or coffee shops, and to order our shopping online where we can but support our local businesses, there’s another gem in the government’s policy around transport. We should try to avoid public transport if we can, they say, but also avoid polluting the atmosphere, as the policymakers take a leaf out of the car sales book by slapping fifty quid on the bonnet of a new bicycle – the only difference being that Boris didn’t have the buying power of Arnold Clark to get a load of bikes in a month-end pack deal.

The message, then, is don’t use buses or trains, but don’t use cars. Instead, just jump on your velocipede, strap on a helmet that makes you look like a demented grasshopper, and do battle with skip truck drivers and empty double-deckers, none of whom can see you when one lane merges into the next. Either that or walk 14 miles to work, which is something we all have the time and the legs for, of course.

Quite apart from the fact that – bicycle-bound – you’re probably more likely to die at the wheels of an 18-tonner than you are of the dreaded ’Rona, the idea that we should all be cycling to work misses out quite a few crucial elements, such as the fact that if it rains, you’ll rock up at work looking as wet as Jacob Rees-Mogg, but unlike him you won’t be able to recline on a bench and start snoring halfway through your shift. Meanwhile, if the mercury hits a dirty thirty, you’ll sweat more than a convict at sentencing time before you’ve even got to the office and then spend most of the day smelling like an anaerobic digester, which is hardly the way to win friends and influence people – though it can be advantageous if you like a quiet life.

As a result of all this, it’s hardly surprising that inexpensive cars have been disappearing from my forecourt in the past few weeks as quickly as Katie Hopkins has from social media platforms, albeit with slightly more in the way of grace and dignity.

Seriously, while the new car market has been in a state of turmoil and the nearly-new/ not-very-used arena has fared little better, those of us who specialise in the sub-£5k area of the market are making hay while the sun shines. Right now, I can get six or seven hundred quid for anything with a decent MOT even if it’s a worn-out South Korean hatchback that would have been bin fodder just six months ago.

Meanwhile, it seems that a 2005 Honda Jazz or a 2004 Toyota Corolla Verso (to name but two of the recent cheapies that flew off my lot without even seeing the wet end of a jet wash for twice what they used to be worth) are the hottest used car property that money can buy.

And dealers such as myself, for whom such cars are our bread and butter, have become as much of an essential worker as the local Tesco delivery man, combine harvester operator or postie – unsung heroes of a society that has woken up to the realisation that a lot of people’s jobs really don’t matter an awful lot in the grand scheme of things, even if they are paid handsomely.

So this is our time in the spotlight, and with it has come a moment of epiphany for several people who have been buying their cars on the never-never ever since they were old enough to acquire credit and who work in jobs that begin with the preface ‘e-’ or end in

You’ll rock up at work looking as wet as Jacob Rees-Mogg.

‘consultant’. Luckily for most readers of this fine organ, it’s only the educated few that have had this lightbulb moment, but it’s there. And I’ve met a few of them.

I had a chap in the other week who was the third caller but the first to turn up with a pocket full of paper, on a 2003 Volvo S40 1.8 petrol in catheter-bag yellow. Hardly the type of car that dreams are made of, but at the same time a fairly safe bet if you want cheap, inexpensive transport that even the most joyless of joyriders won’t nick but will start every morning and shuttle you to work in more comfort than the two-storey Volvos that used to ferry folk to their place of employment in my locale before the apocalypse, without the need to dress up like the Elephant Man in order to climb aboard.

To him, the £995 he handed over was a cheap way out. Temporary transport for an undetermined period where he couldn’t use his preferred means of getting in and out of the city. I dare say, when the time comes he’ll be back on the bus, as he works at one of the city-centre universities and will no doubt tire of the novelty of parking charges. His wife, on the other hand…

Yes, no sooner had matey gone home in his ‘new’ Volvo than his wife used it for a couple of local journeys and wondered why it wasn’t a viable alternative to her genuinely nearlynew Volvo. So when a 2004 V40 – one of the last of the really boring but exceptionally comfy ones – came to me in a main dealer underwriting deal a couple of weeks later, they turned up at my lot waving £1,295 at me. It was the same as three payments on the new Volvo, they told me, meaning that they could pocket the cash they saved and spend it on ‘an absolutely bloody amazing holiday when all this crap is over’, to quote them directly.

Of course, there’s a gamble that they’ll be spending it on a replacement pensionable Volvo, but I struggle to see how. A car whose DNA is half-Swedish, half-Japanese (it was essentially the same car as the Mitsubishi Carisma but marginally less dull) is going to require some serious neglect to kill – unlike their new Volvo, incidentally, which had already been back to the dealership four times with problems related to parts that didn’t even exist on the old S40 and V40.

In the two cars they bought from me, there might not have been a smart infotainment platform between them, but the air con and heated seats worked in both, and each could easily pick up Radio 4. What more does a person need than a game of Mornington Crescent for entertainment, after all?

So off they went back to upper-middle-class suburbia, their PCP repayments replaced by a mortgage that’ll be paid off far sooner and their assumed wealth status left unaffected.

After all, an elderly Volvo smacks of old money in the same way that a battered Range Rover or galactic-mileage 5-Series Touring does. Quality that lasts. The Barbour jacket or Harris tweed of the car world.

And it seems they’ve set a trend, too. After the pubs reopened last month, the pair of them spent an evening in a beer garden with some well-to-do friends. The following day, I shifted a 12-year-old Suzuki Vitara and Subaru Legacy saloon that had been at the back of my yard pretty much since the Japanese manufacturer last won the WRC. And there’s now a street in Edgbaston that has suddenly gone back in time 15 years, and where the residents are permanently sozzled on the highly ranked Argentinian Malbec they’ve bought on the back of their monthly PCP savings.

As for me, I’ll stick to my Highland malts and craft ales – a mixed message that I’m happy to accept as the norm. Chin chin!

As for me, I’ll stick to my Highland malts and craft ales.

CarDealerMag.co.uk | 47

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BY YOUR SIDE. A strong and secure partner when you need it most.

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So, farewell Mitsubishi – but dealers shouldn’t necessarily despair

I

The Evo was attractive to buyers of cars like the BMW M3 who were looking for something different.

have always had a liking for Mitsubishi cars ever since my fifth birthday when I was given a Matchbox Starion to play with. I liked the look of the car as it reminded me of KITT from Knight Rider. My appreciation of the Starion grew once I read the Wikipedia paragraph which speculated that it should have been called Stallion but the Japanese designers couldn’t articulate the name correctly.

In the ’90s, my parents dragged me along to look at a new Shogun. Whilst it was horribly dull inside, there were very few SUVs in the market at this point and my dad had no desire to buy a P38 Range Rover given its reputation for reliability, so it was a strong contender. In the end he didn’t buy one – a wise move, given the flood of becurtained and be-wingmirrored Pajero Japanese imports distressing the residuals in the early 2000s.

Then there was the Lancer Evo. Like its Japanese rival Subaru and the Impreza Turbo, the Evo was attractive to buyers of cars like the BMW M3 who were looking for something different. Huge turbos and all-wheel drive were all the rage for a while until they reached the price range of McDonald’s car park dwellers and lost their cool status, only to find a renaissance as a modern classic in recent times.

Mitsubishi’s recent announcement of its impending exit from the UK market was described by Car Dealer as a ‘shock’ and that dealers were ‘reeling’ from the news. Even without considering the turmoil of the Nissan, Renault, Mitsubishi alliance caused by the arrest and subsequent fleeing of deposed group CEO Carlos Ghosn, it is hard to see where Mitsubishi would win in a post-Covid, post-Brexit world.

The Mitsubishi product range is tired and struggling to meet stringent European regulations. There is a niche following for the L200 and Outlander PHEV but Ford, VW and Mercedes have made inroads into the pick-up market and the Outlander is being outpaced as new, more capable PHEVs enter the market. I wouldn’t know what the unique selling point of cars such as the Mirage or ASX are but they are not going to deliver enough volume and profitability to sustain the UK importer.

There is a stark warning for dealers with other marginal brands, too. I discussed with James Batchelor on a recent edition of Car Dealer Live that VAG could look to shed a brand like Seat or Skoda. Seat’s growth in recent years must be at the expense of VW. Whilst it makes some sense to protect group volume as a result of the emissions scandal, there seems little point to me in offering four equivalents of essentially the same car across four brands.

FCA also looks doomed to leave the UK market. Jeep, Alfa Romeo and Fiat have the same issues as Mitsubishi: old cars with limited appeal and volume – not a recipe for success in 2020. Vauxhall and Peugeot surely cannot co-exist in the same market forever.

However, I wouldn’t worry if I were a dealer affected by the Mitsubishi exit or any impending exits from other manufacturers.

New car margins and bonuses have been dwindling over the past decade, resulting in a focus on aftersales and used cars. Unburdened from manufacturer investment or operational requirements, established businesses with good reputations will thrive, though, either with new potential Chinese entrants or on their own.

I lived through BMW’s decision to withdraw Rover from the market and the business pivoted quickly to another brand, with the company ending up in a stronger position than it was before the change. It is vital to retain good people and make sure the business has strong fundamental processes.

Trader Tales

COMMENT

JAMES LITTON

CASTING AN EXPERIENCED EYE ON THE WIDE AND CHALLENGING WORLD OF MOTOR SALES

James Litton is an automotive retail consultant who always has something to say about the industry he loves.

CarDealerMag.co.uk | 49

FEATURE

THE PAST, PRESENT & FUTURE OF LOTUS

The iconic British brand is undergoing big changes but still makes cars relevant to its past, reports Darren Cassey

I

f you want a driver-focused car, Norfolk-based Lotus is one of the world’s best. For more than 70 years it has been known for building some of the best-handling cars of any company.

Over the years, it has evolved from being a motorsport company to building highly desirable road cars that echo the lightweight-first ethos of founder Colin Chapman.

However, with the industry and buying habits changing, the future is complicated for Lotus. Here, we take a look at some of the cars that earned it its reputation, the models it builds now, and what it plans for the future.

Lotus Esprit

THE PAST

Lotus Elan 50 | CarDealerMag.co.uk

Adding power makes you faster on the straights; subtracting weight makes you faster everywhere.

Colin Chapman

THE company was founded in 1948 when Chapman built his first racing car in his garage. Lotus would largely sell kit cars designed for private racers, but the Elan would become the first to be built fully by the factory in the 1970s.

While many of his rivals would chase horsepower for performance, Chapman’s ethos was ‘simplify, then add lightness’. He also said that ‘adding power makes you faster on the straights; subtracting weight makes you faster everywhere’.

This ethos stood the company in good stead, and it would go on to work with other manufacturers to help create performance versions of their vehicles, or produce lightweight components on their behalf, all while offering its own range of lightweight sports cars.

Lotus Evija electric hypercar

THE FUTURE LOTUS has a challenge for the future. It’s clear that electrification is what lies ahead, but battery packs are heavy – the opposite of what Lotus stands for.

Regardless, it has revealed the Evija – an electric hypercar.

Despite the heavy batteries, Lotus has kept them low to reduce the centre of gravity, while applying its weightreduction know-how to every other area of the vehicle.

Its wild styling has a purpose too, designed to offer the smallest amount of drag to increase speed and the range of the batteries, while also offering huge levels of downforce.

Russell Carr, design director at Lotus, said the Evija was ‘a true Lotus, in that it elegantly balances stunning aesthetic forms with ingenious technical solutions to create a beautiful car with innovative design features. It will re-establish our brand on the global automotive stage and pave the way for further visionary models’.

There’s no denying the future is challenging for a brand that is deeply rooted in its own history.

However, with the Evija it is clear Lotus is embracing the future. It will be fascinating to see if the firm can apply this know-how to smaller, more affordable Eliselike models in the future.

Xxx

Lotus Exige Lotus Elise

Click here to see the Lotus Evija hypercar in action

THE PRESENT TODAY, Lotus is still making such cars, which put driver engagement ahead of all else. Its lightweight focus is perhaps all the more admirable, as crash safety regulations have seen many cars get bigger and heavier – while rivals chase horsepower figures to compensate, Lotus finds ways to reduce weight.

It currently makes three models, with the iconic Elise perhaps the best-known. It’s available in standard Sport 220 form as well as a more track-focused Cup 250. Both weigh less than a tonne, with even the more potent of the two-seater convertible’s engines only having 245bhp.

The Exige on the other hand is built in the same spirit as the Elise, but it’s a coupe with more uncompromising track-focused performance. It’s slightly heavier, with each variant weighing in at a stilllightweight 1.1 tonnes, but with considerably more power – 345 to 430bhp, depending on the version.

Finally, the Evora is perhaps the most intriguing model in the range. While the other two clearly stick to the Lotus ethos, the Evora tries to apply this to a more comfort-orientated GT model. It’s still light by the standards of modern cars, though – weighing about 1.3 tonnes – and gets 410bhp.

CarDealerMag.co.uk | 51

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ADVICE

COVID-19

Can I make staff returning from countries on the quarantine list take unpaid leave?

M

ore and more countries are being added to the government’s quarantine list at the drop of a hat, causing anger, dismay and confusion.

It started with the sudden decision towards the end of July to slap a 14-day quarantine on people returning to the UK from Spain as well as the Balearic and Canary Islands. The Bahamas, Belgium, Andorra and Luxembourg were subsequently added, and from August 15, people returning from France, the Netherlands, Malta, Monaco, Aruba, as well as the Turks and Caicos Islands also now have to self-isolate for a fortnight – a measure the government has said is needed to minimise the spread of coronavirus.

Those who don’t comply with the order face being fined up to £1,000 in England, Wales and Northern Ireland, while those going back to Scotland may be fined £480 – and up to £5,000 for persistent offenders.

How it affects pay and annual leave has been a hot topic. But can staff be forced to take unpaid leave? Car Dealer has examined the contentious issue, including that of sick pay, and provides the answers, with the help of Lawgistics…

Kiril Moskovchuk, who is a legal adviser at the consultancy for the retail motor industry, told Car Dealer that employees returning from places on the quarantine list will have to self-isolate but they won’t be entitled to statutory sick pay unless they develop symptoms or have another reason to claim.

‘Technically, if they cannot work from home or another place where they are selfisolating, they will not be available for work, and it will be an unpaid leave,’ he said.

But there is a solution – sort of…

‘A better alternative will be to agree an extension of annual leave in advance to cover the required quarantine.

‘You may direct your employees to take annual leave to cover the quarantine period, subject to the usual notice requirement.

‘Bear in mind that you can give notice when the employee is away on leave but you need to make sure the notice is communicated and read, so if your employee checks his emails on leave and responds, either opposing, this should Car dealer new strip ad accepting Revised or4/4/18 12:01 Pagebe1 fine.’

ONE dealer group boss told Car Dealer in July: ‘We’ve got a number of staff on holiday in Spain and have told them they’ll need to take unpaid leave when they come back or extra holiday.

‘We can’t afford to pay them for this time off and we’re already running with fewer staff.

‘While the quarantine rules are unavoidable, we can’t cope with paying out for staff having more time off. It’s hard enough as it is at the moment.’

Information here is correct at the time of publication but in the current climate may change at any time. For the latest updates, visit our website at cardealermagazine.co.uk and gov.uk/coronavirus

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ADVICE

GUIDELINES

Do customers and staff now have to wear face coverings in dealerships?

T

he subject of face coverings has been spoken about since the start of lockdown – and they became mandatory in retail spaces in England on July 24, with subsequent amendments. It followed Scotland’s lead, where it’s been the law since July 10, but there have been conflicting messages from the government relating to the measures for England, with the full guidance only being published less than 12 hours before they came into force. But do dealers come under the guidelines? Here, we clear up the confusion for you in this guide.

What is the new guidance?

In England, from Friday, July 24, members of the public have to wear face coverings – for example, a fabric covering, scarf, bandana or mask – that covers the nose and mouth in enclosed public and retail spaces. Anyone caught not sticking to the rules will be liable to a £100 fine from the police.

Are dealerships regarded as retail spaces?

Just like guidelines surrounding local lockdowns, dealers aren’t mentioned specifically as being a shop or a retail space, but it’s implied they are.

This is confusing, right?

Just a bit. Until the morning of July 23, the government was facing intense criticism for not being clear with the new guidance, specifically around sandwich shops.

Until Thursday, July 23, it was thought that because people pop into a sandwich shop and don’t stay for any length of time they were exempt. But as of 9am on July 23, the government confirmed that sandwich shops were included as they’re a ‘retail space’ just like a car showroom. It finally issued the full guidance later the same day – less than 12 hours before it came into force.

So, do customers have to wear face coverings?

Yes, they do – unless they’re exempt. The wearing of face masks is designed to offer protection to the wearer and all those around them, so face coverings are now mandatory in dealership showrooms. Following earlier prohibitions, the new guidance explicitly states: ‘Face coverings will be mandatory in additional enclosed public spaces.’ So, as a showroom is an enclosed public space, it’s safe to assume that it falls under the new rules, therefore customers must wear a face covering.

Secondly, as rightly pointed out by one motor trade organisation, since many dealers have been arguing that they are retail premises for the purpose of gaining business rate relief and coronavirus grants, it’s very likely the government will use the same definition 54 | CarDealerMag.co.uk

Are all retail spaces affected?

No. A face covering isn’t mandatory in some venues.

However, the rules have been changing and will no doubt continue to do so for the foreseeable future – for example, to start with they weren’t mandatory in cinemas or hairdressers but then the government said that they must be worn there.

The rules also differ in England, Scotland, Wales and Northern Ireland. For the latest information concerning each nation, click on the links.

People can also remove them under certain circumstances, eg, if asked to do so in a bank, post office or building society for identification, or once they are getting a haircut.

Information here is correct at the time of publication but in the current climate may change at any time. For the latest updates, visit our website at cardealermagazine.co.uk and gov.uk/coronavirus

Employers should continue to follow Covid-19secure guidelines to reduce the proximity and duration of contact between employees Department of Health

Does every customer have to wear a face covering? regarding face masks. It was the general view within the motor trade that face coverings would become mandatory from Friday, July 24. Indeed, Vantage Motor Group put out a message on July 22 telling customers they should do so from July 24.

Do dealership staff have to wear face coverings?

Dealerships aren’t specifically mentioned by the Department of Health, but no, they don’t.

In the full guidance published late on July 23, the department said: ‘It is not compulsory for shop or supermarket staff to wear face coverings, although we strongly recommend that employers consider their use where appropriate and where other mitigations are not in place.

‘Employers should continue to follow Covid-19-secure guidelines to reduce the proximity and duration of contact between employees. Businesses are already subject to legal obligations to protect their staff under existing employment law. This means taking appropriate steps to provide a safe working environment, which may include face coverings where appropriate, alongside other mitigation such as perspex screens to separate workers from customers.’

As dealers have been required to create safe working environments as a condition for reopening on June 1, nothing changes from July 24. But, as already mentioned, it would be advisable to have face coverings ready should any employee wish to use them or a customer requests a staff member to wear one. You may also want to have some available for customers to use if they don’t have one.

What if a customer refuses to wear a face covering?

It isn’t the responsibility of businesses or their employees to enforce the rules, it’s up to the police to do so. However, businesses can refuse entry to people who aren’t wearing a face covering and who aren’t exempt from the rules. The Metropolitan Police has said it will only enforce the rules ‘as a last resort’ – that is, if the customer won’t leave or if they become aggressive. The Trades Union Congress has also called on employers to demonstrate via risk assessments how they will protect staff from any kind of abuse by a customer.

Simple answer, no. The exceptions are: • Children under the age of 11 • Not being able to put on, wear or remove a face covering because of a physical or mental illness or impairment or disability • If putting on, wearing or removing a face covering will cause you severe distress • If you are travelling with or providing assistance to someone who relies on lipreading to communicate • To avoid harm or injury, or the risk of harm or injury, to yourself or others • To avoid injury, or to escape a risk of harm, and you do not have a face covering with you • To eat or drink, but only if you need to • To take medication • If a police officer or other official requests you remove your face covering

Is there anywhere in the UK that customers don’t have to wear them?

Yes – and this doesn’t help with the confusion. While the wearing of face coverings in retail spaces became mandatory in England from Friday, July 24, people in Scotland have been legally obliged to wear them in shops since July 10. In Wales and Northern Ireland, face coverings are strongly advised in retail spaces but they aren’t compulsory, although Northern Ireland was waiting until August 20 to decide on making them mandatory.

CarDealerMag.co.uk | 55

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ADVICE RECRUITMENT

Motor trade job seekers will need to polish CVs as employers turn noses up Increasing competition for fewer jobs means the best resumés will stand out.

W

ith more competition than ever before for fewer jobs in the car industry – experts say now is the time for job hunters to polish their CVs. Motor recruitment agencies have warned that without a well-presented CV, many candidates won’t even get an interview. And with one agency saying they’ve noticed a trend of employers turning their noses up at those who have recently been made redundant, getting the basics right now is vital for job hunters.

Mary Thompson, director of WeRecruit Auto, said: ‘It is a little sad that occasionally, and that must be stressed, we’re coming across some negativity from clients about accepting CVs from candidates who have been made redundant.

‘They ask why were they let go over someone else and what is wrong with them – but actually if you take the time to talk to them, there’s often reasons our clients wouldn’t even have considered.

‘There definitely shouldn’t be any stigma surrounding redundancy and if you’re in that situation, remember that it’s the role not the individual who has been made redundant.’

Steve Shaw, director of Ingenia Resourcing and Recruitment, another motor trade specialist, said CVs must get attention from candidates.

‘The first thing that people who have lost their jobs need to do is to get their CV brought up to date and ensure that it is presented well.

‘A CV is to get you an interview not a job. Many of the CVs we see vary between acceptable to shocking. There will of course be more competition for fewer jobs, so the best will stand out.’

Shaw advised those who may have lost their job in the motor trade to consider other industries where their skills would be transferable.

He added: ‘While we do not want to see people leave the industry, if there are no jobs then that is what people will be forced to do.

‘They should look at industries that have a need for their particular skills and adapt their CV and approach to these employers. For example, a vehicle painter could easily work for a business that sprays kitchen/bedroom units or window frames. A sales executive could work in all sorts of industries.’

Both recruitment firm bosses said they were positive about the future as while some roles have disappeared, others have been created in their place.

Steve Shaw And Thompson said it could be a blessing in disguise as she and her Ingenia Resourcing business partner set up the firm after being made redundant themselves. and Recruitment Thompson added that job seekers should try to make their applications stand out and highlight their skills.

She added: ‘Work on your CV and tailor it to individual applications where possible.

‘Talk to a good recruiter – we’re here to support you and help get the industry back on its feet. There is some exceptional talent out there which the industry cannot afford to lose.’

Shaw also believes we’re seeing dramatic changes in the industry that will require sales people with different skills.

He said: ‘We will need a new style of sales person in the future.

‘While there will still be a need for the traditional showroom sales person, they will be supplemented by internet/telephone/social media consultants who handle online, email and social media inquiries.’

Many of the CVs we see vary between acceptable to shocking.

Chances of securing job can top 100-1 MORE than 100 candidates are fighting over some motor trade job roles as redundancies in the industry mount up.

Automotive recruitment agencies have told Car Dealer the current jobs crisis is the worse they’ve ever seen.

WeRecruit Auto said it received more than 160 applications for one service adviser role, while Ingenia Recruitment said it had spoken to dealers who had been inundated with more than 100 applications for roles.

WeRecruit Auto director Mary Thompson said they had seen a 40 per cent increase in applicants registering with their agency compared with the months before lockdown.

Dealer group Pendragon is cutting 1,800 jobs, Lookers 1,500, and car manufacturers including Aston Martin, Jaguar Land Rover, McLaren and Bentley have all slashed jobs since the lockdown as well.

Steve Shaw, director at Ingenia, said: ‘At the end of July, the vacancies that we had were 40 per cent down on the same time last year, but this figure does not tell the whole story.

‘We have had a lot more vacancies from independent dealers and workshops this year – more than any time in the past.’

CarDealerMag.co.uk | 57

DATA FILE

STATISTICS

SMMT

SALES DATA

THE LATEST REGISTRATION FIGURES

JULY/YEAR TO DATE

TOP

ON THE UP

Pent-up demand lifts market as sales rise by 11.3 per cent

THE CARS SOLD IN JULY 2020

by John Bowman john@blackballmedia.co.uk

N

ew car sales rose by 11.3 per cent in July, the SMMT announced on August 5 – and revealed two days earlier by Car Dealer after it saw preliminary figures.

Data published by the trade body revealed that 174,887 cars were registered in July 2020, which the SMMT said was a significant improvement on July 2019 when falling business and consumer confidence undermined the market.

Mike Hawes, SMMT chief executive, said: ‘July’s figures are positive, with a boost from demand pent up from earlier in the year and some attractive offers meaning there are some very good deals to be had.

‘We must be cautious, however, as showrooms have only just fully reopened nationwide and there is still much uncertainty about the future. By the end of September we should have a clearer picture of whether or not this is a long-term trend.

‘Although this month’s figures provide hope, the market remains fragile in the face of possible future spikes and localised lockdowns as well as, sadly, probable job losses across the economy. The next few weeks will be crucial in showing whether or not we are on the road to recovery.’

The biggest growth was enjoyed by private sales, with a 20.4 per cent increase in registrations, mainly because people could at last renew their cars after being forced to delay by lockdown.

Manufacturer incentives helped attract customers to showrooms, with eight of the 10 major manufacturers giving attractive finance offers and flexible payment terms in an attempt to head off consumer uncertainty as the furlough scheme was phased out.

Overall registrations were still down by 41.9 per cent (598,054 units) in the year to date, and the SMMT expects a 30 per cent fall in registrations for the year – amounting to more than £20bn of lost sales.

Model

Regs

Vauxhall Corsa

5,455

Ford Fiesta

5,421

Ford Focus

4,981

Volkswagen Golf

3,936

Mercedes-Benz A-Class

3,922

Nissan Qashqai

2,971

Volkswagen Polo

2,932

Mini

2,906

Volkswagen Tiguan

2,880

Ford Kuga

2,686

REACTION

Figures are a good news picture, says ASE boss

ASE Global chairman Mike Jones 58 | CarDealerMag.co.uk

JULY’S new car sales figures showing a rise of more than 11 per cent was a ‘good news picture’, said ASE Global chairman Mike Jones on a Car Dealer Live special.

Normally broadcast at midday, Car Dealer Live’s edition for August 5 started at 9am with Jones as our guest to comment on the figures as they were released by the SMMT. He told host James Batchelor: ‘It’s a good news picture. To be fair, it reflects what we’ve all seen as we’ve gone through the month, a lot of the activity post-lockdown, and there is some pent-up demand there. It’s nice to break the series of drops that we’ve seen. We might actually see some better news stories in the mainstream press which can help with customer sentiment and general demand.’

He added: ‘We’re going to see more EV derivatives drop into the market, replacing petrol and diesel.’

Van registrations LCV news: p60

-66%

+202%

ALPINE

RENAULT

Figures supplied by SMMT

July 2020 Marque

2020

July 2019

% market share

2019

Year-to-date

% market share

% change

2020

% market share

2019

% market share

% change

Abarth

213

0.12

221

0.14

-3.62

1,127

0.14

2,108

0.15

-46.54

Alfa Romeo

185

0.11

235

0.15

-21.28

1,125

0.14

2,097

0.15

-46.35

10

0.01

29

0.02

-65.52

67

0.01

114

0.01

-41.23

12,017

6.87

10,322

6.57

16.42

52,422

6.33

91,451

6.41

-42.68

158

0.09

154

0.10

2.60

689

0.08

966

0.07

-28.67

11,446

6.54

9,198

5.85

24.44

58,026

7.00

99,219

6.96

-41.52

Alpine Audi Bentley BMW Chevrolet

0

0.00

2

0.00

0.00

0

0.00

23

0.00

0.00

Citroen

3,330

1.90

4,435

2.82

-24.92

14,947

1.80

33,857

2.37

-55.85

Dacia

2,558

1.46

1,445

0.92

77.02

9,991

1.21

20,013

1.40

-50.08

DS

228

0.13

268

0.17

-14.93

1,146

0.14

2,099

0.15

-45.40

Fiat

1,949

1.11

1,475

0.94

32.14

10,277

1.24

19,224

1.35

-46.54

Ford

18,814

10.76

17,049

10.85

10.35

78,688

9.50

144,838

10.15

-45.67

Honda

3,322

1.90

2,970

1.89

11.85

14,761

1.78

28,049

1.97

-47.37

Hyundai

5,425

3.10

5,649

3.59

-3.97

23,126

2.79

51,565

3.61

-55.15

Infiniti

0

0.00

38

0.02

0.00

0

0.00

241

0.02

0.00

Jaguar

-40.27

2,746

1.57

2,515

1.60

9.18

13,297

1.61

22,263

1.56

Jeep

555

0.32

451

0.29

23.06

2,087

0.25

3,688

0.26

-43.41

Kia

9,110

5.21

7,115

4.53

28.04

38,080

4.60

60,347

4.23

-36.90

Land Rover

5,730

3.28

4,153

2.64

37.97

31,354

3.78

46,245

3.24

-32.20

Lexus

1,309

0.75

1,118

0.71

17.08

7,280

0.88

8,550

0.60

-14.85

64

0.04

77

0.05

-16.88

303

0.04

611

0.04

-50.41

Mazda

2,805

1.60

2,772

1.76

1.19

11,551

1.39

24,215

1.70

-52.30

Mercedes-Benz

-46.75

Maserati

10,254

5.86

12,056

7.67

-14.95

55,937

6.75

105,046

7.36

MG

1,846

1.06

1,040

0.66

77.50

9,558

1.15

7,326

0.51

30.47

MINI

4,442

2.54

2,983

1.90

48.91

22,718

2.74

36,233

2.54

-37.30 -47.75

Mitsubishi

929

0.53

1,005

0.64

-7.56

5,637

0.68

10,789

0.76

Nissan

6,575

3.76

6,191

3.94

6.20

36,684

4.43

58,934

4.13

-37.75

Peugeot

6,392

3.65

5,666

3.60

12.81

27,842

3.36

50,010

3.51

-44.33

Polestar

8

0.00

0

0.00

0.00

8

0.00

0

0.00

0.00

Porsche

2,295

1.31

777

0.49

195.37

6,368

0.77

7,562

0.53

-15.79

Renault

6,598

3.77

2,187

1.39

201.69

21,867

2.64

34,300

2.40

-36.25

SEAT

5,357

3.06

5,391

3.43

-0.63

25,624

3.09

43,169

3.03

-40.64

Skoda

6,121

3.50

5,302

3.37

15.45

29,233

3.53

46,566

3.26

-37.22

smart

168

0.10

388

0.25

-56.70

594

0.07

3,530

0.25

-83.17

Ssangyong

172

0.10

82

0.05

109.76

841

0.10

1,171

0.08

-28.18

Subaru

60

0.03

103

0.07

-41.75

366

0.04

1,466

0.10

-75.03

Suzuki

1,877

1.07

3,490

2.22

-46.22

9,690

1.17

23,827

1.67

-59.33

Toyota

9,899

5.66

8,134

5.17

21.70

49,259

5.95

64,818

4.54

-24.00

9,771

5.59

10,398

6.61

-6.03

47,347

5.72

104,962

7.36

-54.89

Volkswagen

15,617

8.93

15,183

9.66

2.86

74,550

9.00

126,074

8.84

-40.87

Volvo

-36.82

Vauxhall

3,958

2.26

4,288

2.73

-7.70

21,656

2.61

34,277

2.40

Other British

187

0.11

211

0.13

-11.37

1,047

0.13

1,796

0.13

-41.70

Other Imports

387

0.22

632

0.40

-38.77

11,219

1.35

2,804

0.20

300.11

174,887

100

157,198

100

11.25

828,389

100

1,426,443

100

-41.93

Total

CarDealerMag.co.uk | 59

DATA FILE

JULY 2020

LCV NEWS

New van sales grow for first time since January

by John Bowman john@blackballmedia.co.uk THE light commercial vehicle market enjoyed its first month of growth since January, with July seeing a 7.1 per cent rise in registrations.

The SMMT’s latest figures, announced on August 5, showed that 27,701 new LCVs were sold in the UK, with the Ford Transit Custom topping the list of best sellers at 3,405 units. SMMT chief executive Mike Hawes said: ‘With lockdown restrictions rolling back and businesses restarting operations, the van market is beginning to look more positive. However, these green shoots of recovery could prove fragile given the uncertain economic situation.

‘Maintaining overall business confidence will be crucial.’

REGISTRATIONS OF NEW COMMERCIAL VEHICLES LESS THAN 3.5 TONNES Marque

Ford Volkswagen Mercedes Vauxhall Peugeot Citroen Renault Toyota Fiat Nissan Isuzu Mitsubishi MAN Iveco Land Rover LDV Isuzu Trucks Renault Trucks SsangYong Fuso Hyundai Total light CV

Figures supplied by SMMT

July 2020

2020

7,949 3,433 3,287 2,819 2,402 1,993 1,209 989 920 903 421 300 274 187 176 130 126 123 37 23 0 27,701

% market share

28.70 12.39 11.87 10.18 8.67 7.19 4.36 3.57 3.32 3.26 1.52 1.08 0.99 0.68 0.64 0.47 0.45 0.44 0.13 0.08 0.00 100.00

July 2019

2019

9,037 2,681 3,047 1,747 2,182 1,831 1,630 473 663 853 255 727 141 191 112 54 77 99 45 14 3 25,862

% market share

% change

34.94 10.37 11.78 6.76 8.44 7.08 6.30 1.83 2.56 3.30 0.99 2.81 0.55 0.74 0.43 0.21 0.30 0.38 0.17 0.05 0.01 100.00

-12.04 28.05 7.88 61.36 10.08 8.85 -25.83 109.09 38.76 5.86 65.10 -58.73 94.33 -2.09 57.14 140.74 63.64 24.24 -17.78 64.29 0.00 7.11

2020

43,993 13,760 14,458 13,834 12,410 11,047 4,989 4,192 3,601 5,224 1,987 2,217 881 1,303 737 505 516 635 186 102 0 136,577

Year-to-date

% market share

32.21 10.07 10.59 10.13 9.09 8.09 3.65 3.07 2.64 3.82 1.45 1.62 0.65 0.95 0.54 0.37 0.38 0.46 0.14 0.07 0.00 100.00

2019

74,825 25,317 21,415 17,962 20,159 16,984 12,409 4,703 5,845 7,484 2,545 7,014 878 1,638 882 323 484 821 415 116 61 222,280

REGISTRATIONS OF NEW COMMERCIAL VEHICLES 3.5 TONNES TO 6.0 TONNES Marque

Fiat Other imports Mercedes Peugeot Ford Iveco Volkswagen MAN Citroen Vauxhall Isuzu Trucks Renault Nissan Renault Trucks Total heavy CV

July 2020

2020

165 124 103 94 87 41 14 3 1 1 1 0 0 0 634

60 | CarDealerMag.co.uk

% market share

26.03 19.56 16.25 14.83 13.72 6.47 2.21 0.47 0.16 0.16 0.16 0.00 0.00 0.00 100.00

July 2019

2019

182 0 80 211 5 17 17 2 27 3 3 0 0 0 547

% market share

% change

33.27 0.00 14.63 38.57 0.91 3.11 3.11 0.37 4.94 0.55 0.55 0.00 0.00 0.00 100.00

-9.34 0.00 28.75 -55.45 1,640.00 141.18 -17.65 50.00 -96.30 -66.67 -66.67 0.00 0.00 0.00 15.90

2020

715 134 797 624 585 128 78 28 87 5 3 6 0 0 3,190

22.41 4.20 24.98 19.56 18.34 4.01 2.45 0.88 2.73 0.16 0.09 0.19 0.00 0.00 100.00

% change

33.66 11.39 9.63 8.08 9.07 7.64 5.58 2.12 2.63 3.37 1.14 3.16 0.39 0.74 0.40 0.15 0.22 0.37 0.19 0.05 0.03 100.00

-41.21 -45.65 -32.49 -22.98 -38.44 -34.96 -59.80 -10.87 -38.39 -30.20 -21.93 -68.39 0.34 -20.45 -16.44 56.35 6.61 -22.66 -55.18 -12.07 0.00 -38.56

Figures supplied by SMMT

Year-to-date

% market share

% market share

2019

1,201 0 953 1,388 112 316 51 59 117 121 12 48 1 5 4,384

% market share

% change

27.40 0.00 21.74 31.66 2.55 7.21 1.16 1.35 2.67 2.76 0.27 1.09 0.02 0.11 100.00

-40.47 0.00 -16.37 -55.04 422.32 -59.49 52.94 -52.54 -25.64 -95.87 -75.00 -87.50 0.00 0.00 -27.24

Figures supplied by SMMT

Gallagher Automotive Specialist Insurance for the Motor Trade Experience is key - and you need a specialist insurance broker who’ll take the time to understand the specific needs of your motor trade operation.

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The Gallagher Automotive Insurance Team has been helping to protect businesses across the UK for over 50 years - from independent repairers and small family firms to the largest franchise dealerships.

Get in touch to discover how we can help your business.

Would you like to talk?

T: +44 (0) 800 612 2284 E: automotive_enquiries@ajg.com www.ajg.com/uk

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CarDealerMag.co.uk | 61

EXTRA COVER

SPECIALIST TEAM

Consolidation post Covid-19 No need to get stressed over ‘distressed transactions’ if you’re thinking about a merger or acquisition, says Leon Bosch

R

eading the headlines in recent weeks, it is clear that many businesses are having to remodel their plans in the wake of falling revenues/profits during lockdown.

We have seen that Covid-19 has certainly accelerated planned network reductions across most if not all automotive brands, and this will be a combination of job losses, dealership closures and continued consolidation.

Those contemplating the merger and acquisitions route are aware that transactions can be time-critical and may leave you with unforeseen risks post-completion. Furthermore, as the Covid-19 crisis evolves, ‘distressed transactions’ are becoming a major theme in 2020 and come with their own complications and uncertainties. As a result, distressed M&A funds, banks, insolvency and restructuring specialists are turning to transactional risk insurance as a way for them to create value and unblock deals in distressed situations.

Gallagher has a specialist mergers and acquisitions team that can assist businesses in the following areas to help make this process as smooth as possible:

Insurance Due Diligence

Due diligence provides an understanding of the target’s insurable risks and enables the deal team to make informed decisions. Key aspects of the report typically include the integrity of the insurance programme with post-completion recommendations, total cost of risk (premiums and self-insured retentions), opportunities for savings, claims analysis and allocation of risk within the sale and purchase agreement (SPA).

Transaction Protection – Warranty and Indemnity Insurance

It is now commonplace to use transactional insurance products when buying or selling a business. The most significant of this is warranty and indemnity (W&I) insurance, where the vendor’s warranties within an SPA are insured. This helps facilitate a clean exit (ie, the buyer can claim directly from the policy in their name) and can bridge any expectation or value gaps between the contracting parties.

Additionally, we place a wide range of other M&A products with insurers, including tax liability (known issues), loss mitigation/litigation buyouts, escrow buydowns, opinion-based contingent risks, loss portfolio transfers, environmental impairment and prospectus liability.

About Gallagher Founded by Arthur J. Gallagher in Chicago in 1927, Gallagher has grown to become one of the leading insurance brokerage, risk management, and human capital consultancy firms in the world.

With a truly global reach, our organisation employs over 33,000 people and our international network provides services in more than 150 countries. Our values are core to our culture. Passionate Service, Strategic Innovation, and Ethical Behaviour form the basis of how we do business.

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. FP9532020

This note is not intended to give legal or financial advice and, accordingly, it should not be relied upon for such. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this note we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the information contained herein. It reflects our understanding as 29/07/2020, but you will recognise that matters concerning Covid-19 are fast changing across the world. You should not act upon information in this bulletin nor determine not to act without first seeking specific legal and/or specialist advice. Our advice to our clients is as an insurance broker and is provided subject to specific terms and conditions, the terms of which take precedence over any representations in this document. No third party to whom this is passed can rely on it. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide herein and exclude liability for the content to the fullest extent permitted by law. Should you require advice about your specific insurance arrangements or specific claim circumstances, please get in touch with your usual contact at Gallagher.

62 | CarDealerMag.co.uk

...in association with Gallagher

Tax Insurance

Portfolio Company Insurance

We design, place and service insurance programmes for individual portfolio companies and offer risk management support. A structured, planned approach across all areas is managed by a single relationship manager to maximise value at a fund and portfolio company level.

Directors’ & Officers’ Liability (D&O)

In any transaction, D&O cover is always a key work stream. We have access to bespoke management liability policies, designed specifically for both private and public companies.

Contingent Risk Insurance

Contingent risk insurance (CRI) offers cover for known legal risks that could have a negative impact on a company or asset’s value. Through CRI, we can ring-fence these known legal exposures that may not have been insurable through traditional W&I and tax insurance or may have even completely derailed or prevented a transaction from moving forward.

CRI offers a major tool to de-risk distressed M&A and can be tailored to cover a variety of risks including: • Distressed acquisitions – Insurance for seller indemnities, title to assets, sale at an undervalue and known or unknown third party claims.

• Voluntary winding up (to reduce administrative costs and distribute proceeds) – Insurance for third party claims.

• Insolvency winding up – Insurance for the sale of assets, closing out the company’s financial position and resolving claims made against the company, administrators, trustees and insolvency practitioners.

In a distressed transaction, the target is often sold on an ‘as seen’ basis only. Known legal risks become magnified and are frequent deal-breakers. CRI offers the protection needed by a buyer whilst also allowing the seller to exit with limited liability.

As we start to see a downturn in traditional M&A, the availability and need for CRI is increasing. In an effort to explore these legal contingent-style risks, insurers are expanding their appetite and underwriting authority, which means that the transactional risk insurance market is fast becoming the home of these ‘weird and wonderful’ insurance risks.

Would you like to talk?

For more information, please get in touch with the Gallagher Automotive Insurance Team.

Call 0800 612 2284 or email automotive_enquiries@ajg.com or visit ajg.com/uk

THE tax insurance market has evolved rapidly over the past few years. Previously ‘uninsurable’ tax risks can now be covered, owing to increased underwriting experience and appetite.

The tax market is even going beyond traditional M&A into the likes of corporate restructurings and fund wind-ups.

Tax insurance can not only be used to release funds, protect a liquidator and provide alternative recourse, it can also remove tax liabilities from a target’s balance sheet, freeing up capital and unlocking value.

It’s also helped find valuable solutions in several distressed and special situations: • Pre/post-sale/liquidation restructuring – In the course of a restructuring, various tax complications may arise such as debt release, capital gains tax, corporation tax and stamp duty land tax. Tax insurance can de-risk pre- and post-sale corporate restructurings, help with debt tidy-ups and avoid the seller having to give an indemnity or escrow.

• Judgment/settlement protection – If a tax authority has reached a judgment or settlement but hasn’t closed out the issue, it could prevent escrow distribution or winding up. A tax insurance policy can stand behind the judgment or settlement, allowing the release of funds and helping the deal move forward.

More so than ever, these complex tax risks that would normally be dealt with via escrow or price-chip are being transferred to an insurer, providing a valued solution in distressed situations.

Leon Bosch is the managing director of the automotive practice at commercial insurance broker and risk management specialist Gallagher.

CarDealerMag.co.uk | 63

64 | CarDealerMag.co.uk

FOCUS ON Autoglym

autoglym.com

Our protection is a great way to seal the deal or add polish to your profit

T

welve months ago, car dealers across the UK were gearing up for one of their toughest trading periods ever as talk of a no-deal Brexit, a weak pound and uncertainty around WLTP regulations were keeping buyers away from showrooms.

But little did any of us know what was round the corner. While all of those factors still exist in one form or another, they have paled into insignificance in the face of a global pandemic that has pressed the reset button on the entire worldwide economy.

So as we head into the new ‘70’ registration period and a new environment of customer uncertainty, how do we make sure the customers who are crossing our thresholds or – as is increasingly more common – dealing with us remotely are kept on-side, and how do we make sure we (and they) get the most out of the deal?

After all, it’s a buyer’s market and it’s through clever marketing and a polished sales technique that you can use aftersales to gain those extra profits, with a good Vehicle Protection System as an extremely useful tool to either maximise profit or seal the deal.

Royal-warranted car care maestro Autoglym is one of a handful of companies offering a thorough protection system to both new and used vehicles. With new cars, the LifeShine Vehicle Protection System can add a little sparkle not only to the paint and trim but also to the deal itself. With its attractive cost, easy application, high durability and excellent earning potential, LifeShine is a useful upsell opportunity, while there has never been a better time to convince a customer that choosing now to protect the future value and saleability of their new car will be a wise investment for the longer term.

Although competition is fierce in this sector, Autoglym is finding that its manufacturer link to big automotive names such as Volkswagen is making life easier, not only for sales staff looking for a reassuring and familiar ‘in’ for the customer, but also for the parts sales teams who actually get to notch each sale up against genuine parts targets, potentially lining up other latent parts bonus payments later in the year.

In addition, LifeShine can be used as an easy incentive to choose perfectly prepared used cars, too.

‘Protecting a vehicle with LifeShine isn’t just about taking new cars and making them look their best and stay that way,’ said Paul Caller, CEO at Autoglym. ‘While it inevitably makes the finish of a car last longer and is a wise investment on any new vehicle, it can also be applied retrospectively and really make your used stock stand out as a cut above the rest. Indeed, with used car sales stronger than ever and offering a decent level of margin to most dealerships, the upsell opportunity with the LifeShine protection package is one string to your bow. Having a forecourt full of perfectly prepped and protected cars is another – you can justifiably charge that little bit extra if you know your stock is as good as it can possibly be.’

While many of us think of Autoglym’s iconic white bottles adorning the shelves of our local accessory store (and perhaps even our own garage), it’s often forgotten that the firm started out as a trade solution, and that’s where its heritage lies. Back in 1965, motor trade entrepreneur Dennis Barley developed a unique system for renovating used car paintwork for professional valeters to use at dealer level. Fast-forward to the present day and the Autoglym Professional range has grown somewhat from those initial 11 products into a range that covers every aspect of vehicle preparation.

For dealers looking to make additional used car profit, and take perhaps an average-condition part-ex to something altogether more showroom-friendly, the Professional range offers every answer. Best of all, you shouldn’t have too much trouble convincing accounts, either. Representing the industry’s best value in terms of cost per use, Autoglym’s uniquely British formulation means that even if your used car stock sits outside in the worst of British weather, the polishes, dressings and treatments will stay put longer than anything else out there. That means lower re-detailing costs and more towards the bottom line.

There’s clearly no magic wand for the current trading conditions, but by making vehicle preparation easier and more cost-effective, as well as allowing dealers to prepare their stock to the highest possible standards while adding an additional revenue stream, Autoglym is definitely part of the solution – and certainly one that’s worth bringing into your dealership.

The upsell opportunity with the LifeShine protection package is one string to your bow.

CarDealerMag.co.uk | 65

DATA FILE

SUPPLIERS GUIDE

LOOKING FOR A MOTOR TRADE SUPPLIER? YOU CAN FIND THE DETAILS OF SELECTED COMPANIES HERE Auctions & Trade-To-Trade Sales

Finance

Legal & Compliance

Vehicle Photography

Warranty Providers

BCA

Forza Finance

Lawgistics

Dealer 360

Warranty Administration Services

W: bca.co.uk T: 0344 875 3480 E: customerservices@bca.com Info: BCA’s remarketing programmes deliver volume, choice and availability for buyers, and speed, efficiency and market-leading returns for sellers.

W: forzafinance.co.uk T: 01245 245678 Info: Benefit from Forza Finance’s expertise, choice of products and lenders. Their personal approach will help you achieve higher levels of finance penetration and, ultimately, sell more cars.

W: lawgistics.co.uk T: 01480 455500 E: sales@lawgistics.co.uk Info: The legal experts for the motor trade, giving advice and support to our industry for over 15 years. Not anti-consumer, just pro-trader.

W: dealer360.co.uk T: 01270 780855 E: nicky.spratt@ukturntables.com Info: UK makers of photo booths incorporating our turntables for car, van and motorcycle dealers. Our software controls turntable and cameras – a onestop solution.

W: warrantyadmin.co.uk T: 01522 515600 E: tellmemore@warrantyadmin.co.uk Info: Unlock new profit and aftersales flexibility with Crystal Clear Warranty.

Ideal for franchised dealers, groups and independents.

Automotive Ecommerce

HR & People Management

Marketing, PR & Video

Vehicle Tracking

Warranty Providers

GForces

HR Manager

OnCue Communications

Meta Trak

Warrantywise

Data

Key Control

Marketing, PR & Video

Warranty Providers

These Listings Work!

Real World Analytics

Keytracker

Marketing Delivery

Autoprotect

W: gforces.co.uk T: 01622 391904 Info: GForces delivers class-leading ecommerce solutions. We work with global vehicle manufacturers, the world’s largest dealer groups and independent retailers around the planet.

W: realworldanalytics.com T: 0808 1890 617 E: auto@realworldanalytics.com Info: We are a SaaS-based data analytics solution provider for multisite dealers. Our business intelligence tools help customers make faster and better decisions.

W: hrmanager.co.uk T: 01480 455500 E: info@hrmanager.co.uk Info: HR Manager is Lawgistics’ new digital compliance portal designed to assist employers in managing their legal obligations, responsibilities and duties.

W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: Established in 1996 and based in the UK, Keytracker Ltd provide an extensive range of key and asset management systems for a wide range of businesses.

W: oncuecomms.com T: 020 8125 3880 Info: We are a leading provider of PR, video and events services to the automotive industry. The PR team has a proven track record of securing high-value, big-impact media coverage.

W: marketingdelivery.co.uk/ T: 01892 599911 E: get.in.touch@marketingdelivery.co.uk Info: Our SocialStock helps target prospects with tailored stock remarketing and social media advertising tools, and automated lead capture for Facebook.

W: metatrak.co.uk T: 020 8867 2340 E: enquiries@metatrak.co.uk Info: Total vehicle security. Clever tracking technology, advanced immobilisation, 24/7 monitoring and an easy-to-use app. Security. Connectivity.

Peace of mind.

W: warrantywise.co.uk/dealer T: 0800 001 4551 E: dealers@warrantywise.co.uk Info: Warrantywise sells over 100,000 warranties per year.

Quentin Willson personally designed Warrantywise to be the UK’s best used car warranty.

More Sales For You

W: autoprotect.co.uk

T: 01279 406888 E: sales@autoprotect.net Info: AutoProtect offers a full portfolio of award-winning protection products, including GAP. We lead the market with an ‘Excellent’ rating on Trustpilot.

W: Your website address T: 020 8125 3880 (that’s us!)

E: sales@blackballmedia.co.uk Info: The Suppliers Guide lets dealers find the companies they need to help them with their business. Make sure you’re here. Contact us via the above number or email address.

Finance

Key Control

Oil & Lubricants

Warranty Providers

Warranty Providers

Blue Motor Finance

Traka

Mobil™

Car Care Plan

WMS

Finance

Lead Management

Recruitment

These Listings Work!

Website Design & Digital Marketing

Close Brothers Motor Finance

GardX AD-Vantage

WeRecruit Auto

More Sales For You

Bluesky Interactive

W: closemotorfinance.co.uk/ Info: Close Brothers Motor Finance are a specialist finance provider, working with over 8,000 dealer partners to offer flexible finance solutions for car, motorcycle and LCV customers.

W: gardx.co.uk/gardx-ad-vantage T: 01243 376426 E: goforaspin@gardx.co.uk Info: The award-winning 360 service offers an engaging display of the vehicle while additionally presenting profitable F&I products to a consumer.

Finance

Lead Management

Trade Bodies

Warranty Providers

Website Design & Digital Marketing

First Response

iVendi

Ben

Momentum Warranties

Haswent

W: blue.co.uk T: 020 3005 9331 E: dealersupport@blue.co.uk Info: Blue is transforming the car finance market, making car ownership simple and flexible and providing motor traders with access to essential finance.

W: firstresponsefinance.co.uk T: 0115 946 6317 E: marketing@frfl.co.uk Info: First Response is an awardwinning UK finance company providing simple financial solutions.

Get in touch and let us help increase your profits.

W: traka-automotive.com T: 0333 355 3726 E: automotive@traka.com Info: Bespoke software and electronic key management cabinets to deliver the most effective solution to dealerships to manage their keys and vehicles.

W: ivendi.com T: 0330 229 0028 E: tellmemore@ivendi.com Info: iVendi delivers a fully connected platform that engages consumers, converts buyers and manages transactions of vehicles online and in the showroom.

W: mobil.co.uk T: 0800 0857 420 Info: Whether using Mobil 1™ or Mobil Super™, Mobil™ engine oils meet or exceed the latest standards of the oil industry and vehicle manufacturers.

W: werecruitauto.co.uk T: 01603 550041 Info: Permanent recruitment – here to assist businesses within the automotive sector find the best fit for their company in terms of skillset, experience and culture.

W: ben.org.uk T: 0808 131 1333 Info: Ben is a not-for-profit organisation that partners with the automotive industry to provide support for life to its people and their families.

W: carcareplan.com T: 0344 573 8000 Info: Car Care Plan is a leading provider of motor protection products, trusted around the world to deliver quality protection with integrity and a customer-oriented outlook.

W: Your website address T: 020 8125 3880 (that’s us!)

E: sales@blackballmedia.co.uk Info: The Suppliers Guide lets dealers find the companies they need to help them with their business. Make sure you’re here. Contact us via the above number or email address.

W: momentumwarranties.co.uk T: 0330 445 0059 E: support@momentumwarranties.co.uk Info: How long does your warranty company make you wait? We pay claims into your bank within 45 minutes. The most advanced warranty programme in the UK.

W: wmsgroup.co.uk T: 01844 293810 E: sales@wmsgroup.co.uk Info: Open 24/7, we offer award-winning warranty products for FCA- and non-FCA-registered dealerships.

W: blueskyinteractive.co.uk T: 01926 651000 Info: Bluesky Interactive drive dealer websites and digital marketing forward thanks to game-changing innovation, the latest technology and our exceptional relationships with our clients.

W: haswent.com T: 020 3920 6164 E: hello@haswent.com Info: Composer is a next-gen automotive platform. You have extensive stock management options, and you’ll gain a brilliantly responsive new website.

To have your details included email sales@blackballmedia.co.uk and ask for Suppliers Guide listings 66 | CarDealerMag.co.uk

LONG-TERMERS

THE KNOWLEDGE Audi A1 Sportback 30 TFSI S Line

AUDI A1 SPORTBACK The premium city car has been parked up for a while but now it’s time to see what it’s like to drive. Jack Evans reports.

A

few months ago I was told our new Audi A1 long-termer test car was due to arrive.

It was great timing, too. Summer was on the horizon and I could easily imagine the variety of different activities that Audi’s smallest model could help with.

Then lockdown arrived and with it the sweeping changes in our daily lives. It just so happened that only a few days beforehand the A1 arrived at the office, which is where it sat languishing – but still looking rather good in its bright green paintwork – for several weeks.

Thankfully, with the measures easing, I’ve been able to rescue it from its confinement, which means I’m now able to see what it’s like to live with on a daily basis.

First off, the way it looks. The A1 represents a very well executed bit of design. It’s compact, for sure, but it looks robust enough to avoid that ‘teeny tiny’ appearance you sometimes find with cars in this segment. The added features such as LED headlights and tail-lights help to bump up its looks too.

Inside, the A1 is roomy and packed with clever features. The central infotainment screen is one of the latest that Audi produces, and it integrates smoothly into the dashboard as opposed to other ‘pop-out’-style displays currently on cars such as the A4 and A5. The full Virtual Cockpit is handy too, with clear and logical graphics.

The only real sticking point when it comes to comfort is the seats. For some reason, the backs of the chairs are extremely hard, so longer journeys do mean you incur a fair amount of backache. They’re fine for pootling around town – where the A1 is most suited, in fairness – but out on longer stretches they’re just not quite right. That could be down to body shape, of course. This S Line specification car gets sport seats, so it could be that these are just a touch firmer than the regular chairs on entry-spec models.

The engine? That’s a 1.0-litre turbocharged petrol with 114bhp and 200Nm of torque.

It’s that latter figure which makes its presence known in the way the A1 drives, as you’ve got plenty of low-down pull to help bring you up to speed in a timely manner. In fact, Audi claims the A1 will do 0-60mph in 9.2 seconds (which feels about right on the road), and should you even want and be able to do so, it’ll hit 126mph.

But efficiency is the name of the game here, and that’s something the A1 does very well.

Audi claims up to 48.7mpg combined, while CO2 emissions are just off the golden 100g/km mark at 108g/km. It really is camel-like in its preservation of fuel, and even after several longer jaunts I’ve barely noticed the fuel display change. Those claimed economy figures seem pretty on the money too.

The A1 is practical as well. There’s a useful 335 litres of boot space (the larger Audi A3 can only better this by 45 litres), while folding the rear seats flat extends this to 1,090 litres.

Given its compact overall proportions, this is pretty impressive – not to mention useful.

I’ll admit that at £24,985 after options our A1 sits on the punchier end of the price spectrum. However, given its versatility and solid feel, I reckon many would argue that it both looks and feels worth the money, and I’m certainly looking forward to seeing whether that’s true over the next few months.

Price (as tested): £24,985 Engine: 1.0-litre turbocharged petrol Power: 114bhp Torque: 200Nm 0-60mph: 9.2 seconds Max speed: 126mph Emissions: 108g/km CO2 MPG (combined): 48.7 Mileage: 853

This month’s highlight: Finally getting the chance to see what our little Audi’s like to live with on a daily basis.

OTHER CARS WE’RE DRIVING

Skoda Superb iV Mileage: 1,808 The plug-in hybrid version of Skoda’s Superb is quickly becoming a family favourite.

Ford S-Max

Mileage: 7,419 Tip run revealed no problems over the number of cardboard boxes you can fit inside the car.

CarDealerMag.co.uk | 67

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