Car Dealer Magazine: Issue 106 by Blackball Media

SCANDAL: MORE BAD NEWS FOR VAUXHALL AS FIRE CRISIS INTENSIFIES

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Issue 106 | January 2017 | CarDealerMag.co.uk | £3.50

The Winners’ Issue

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EDITORIAL HEAD OF NEWS AND FEATURES Rebecca Chaplin

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MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors Tom Barnard, John Bowman, Darren Cassey, Simon Davis Andrew Evans, Jonny Fleetwood, James Fossdyke, Ben Garside, Jack Healy, Chris Jervis, Victoria Jones, James Litton, Big Mike, Tim Naylor, Clare Newman.

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the season to be jolly WELCOME. ’Tis – particularly if you’re a car dealer. Yes, it’s finally that time of year (again) when we get to celebrate used car dealers and all the hard work they’ve put in over the past 12 months. It’s also an excellent excuse for us to throw a huge party, drink and dance until the early hours. That’s right, it’s time for the Used Car Awards. Once again, Mike Brewer took to the stage to welcome the used car industry and hand over awards to those who have shone, as voted for by their peers and verified by the Car Dealer team. This year’s event was more impressive than ever before, with the RAC drinks reception, AA Cars Casino and iVendi after-party all adding to the affair. There was plenty to celebrate, with many newcomers to the awards ceremony sweeping up prizes and proving you can’t sit on your laurels in this industry! Turn to pages 44 to 101 for a full round-up and to see who was crowned victorious in 2016. If you find you’re scanning the pages and think you or someone you know should win, keep an eye out for next year’s nominations and make sure you’re in the mix. We’ve got a guide to how the awards are judged in the feature, too, just in case you’re wondering. For the first time, we’ve added to our Used Car of the Year award with the introduction of five new categories for specific segments. Expanding on last month’s RTOTY, we’ll be calling this UCOTY from now on – pronounced ‘you-coat-ee’, This is based purely on data from the industry of what is holding its money best after three years. You may be surprised by the results but you probably won’t if you keep your ear to the ground. This month, our illustrious leader abandoned ship for a week to take on the tough task of sunning himself in Baja California. In between enjoying the glorious weather and Instagramming beach landscapes, he did test-drive Audi’s

best-selling car – the Q5. As the baby sister to his long-term Q7, which you may have read he quite likes, it was fairly predictable that he would think this is also fantastic. With good reason though, so turn to p38 to read exactly why. I can’t throw too much shade on Baggo for his excursion across the pond this month, though, as only two weeks before I was in California for the LA Auto Show. Here, we got an opportunity to see exactly what those over the pond can expect on forecourts in the next year. I can tell you, they really like a pick-up over there. Or anything big. I imagine the first question every US car buyer asks when walking into a dealership is ‘but how big is it?’ This was documented in a series of photos, now known as ‘My Small Friend Next To Huge Things In A Massive Country’, where I stood beside pick-up trucks, monuments and generally large American objects. I drew the line at a moose on the Volvo stand, much to my companion’s disappointment, although the rest can be seen on Twitter and in a gallery near you soon. This issue is packed with goodies, too. Just in time for Christmas, we’ve got a gift guide for the petrolhead you know or just stuff-you’ll-want-to-buy-yourself. There’s also factories from the sky – we guarantee you’ll be pulling that out on December 25 when the family gets bored of charades. What I’m most excited about in this issue, though, is the Skoda Kodiaq. We first saw it at the Paris Motor Show, but Jack Evans got behind the wheel of one this month. It’s a very exciting proposition and set to be a game-changer for the brand. Have a read for yourself on p42. That’s all from me. I hope you have a great Christmas and we’ll speak again in the new year!

Rebecca Chaplin Head of News and Features

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INSIDE. ISSUE 106 I JANUARY 2017

Dashboard

08 28

Feedback SMMT annual dinner Los Angeles Auto Show Firegate latest New look for Fiesta

Look who turned up at the SMMT’s annual dinner in London this year!

Looking for a last-minute Christmas gift? We can help

Car factories from the air Rebecca Chaplin

Sampling the delights of the LA Auto Show

Gift guide Around the world Finance Big Mike

Forecourt

‘‘

Audi Q5 Skoda Kodiaq

BCA data shows no easing of demand for diesel cars – despite all the negative headlines.

Ford has taken the wraps off its new Fiesta

Simon Henstock

Focus On Auctions and trade remarketing MotoNovo Finance

120 Data File Car Dealer Club The Statistics Taking Stock Market Insight

If you missed it, you missed out! This year’s Used Car Awards ceremony, hosted by the one and only Mike Brewer, was another great success

Auctions Money Talks Key Notes with Traka Suppliers Guide Long-termers James Baggott

06 08 10 20 21 22 25 28 31 32 37

38 42 103 113 114 116 118 119 120 123 125 126 128 130

OUR EVENTS... As voted for by dealers, Car Dealer Power is unique. Watch this space for news of the 2017 awards – and find out who won in 2016 by going online to bit.ly/CDP2016

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Turn to page 44 for full coverage of this year’s successful event.

The UK’s biggest and best automotive trade expo will take place at Silverstone on May 23 – once again sponsored by GForces. More news soon, but save the date and we’ll see you there. CarDealerMag.co.uk | 05

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

Our website at CarDealerMag.co.uk

Cars were far less hassle AGE IS catching up with me now. I’ve been doing this too long. I’ve just been going through some old photos (from an old hard drive) and have been reminded of what I was selling years ago, and how hassle-free those cars used to be – and I’m not wearing rose-tinted glasses! I used to stock nice ’90s Mondeos, Escorts, Granadas, Scorpios, Cavaliers, Senators, Carltons, Omegas, XJ-40s, X300s, BMW E-36, E39, E-38, Merc W124/126, petrol Jeeps... I did like a lumpy bit of gear. The worst I used to get were broken coil springs, worn-out lower arms, consumables and interior fans not working (any Vauxhall!), rarely had electrical and/or wallet-busting issues and the diesels were bomb-proof then too (don’t touch any diesels nowadays, as an aside). It’s sobering to think that a new 1.8 LX Mondeo Estate was £15.5k back in 1996. The OEs were making a lot of money back then and to me they built a good car but charged for it. Now, I buy a car and I’m glad if it gets me home without some warning-light or limp-home scenario. tradex

Picture of the month We bet you’ve never seen one as big as that before! It’s Car Dealer photographer Jonny Fleetwood and his amazing extendable tripod. Jonny put the specialist piece of equipment to good use when he was shooting the five winners of our Used Car of the Year categories in the 2016 Used Car Awards. (You can find out which models were successful a bit later on in the magazine.) Jonny shunned his sensible ladder and chose instead to perch precariously on a pile of pallets. Definitely not a case of health and safety gone mad! He got down in one piece, we’re pleased to report. You’re obviously quite a bit older than me, but you’re so right. I tend to stock older stuff, albeit low-mileage, well-looked-after stuff. I was joking with my dent man the other day that I still see an ‘09’ plate car as relatively new. Quite often think I should start buying newer stuff, but the risk of something (costly) going wrong puts me off! It’s only going to get worse.... Ocsltd

Totally agree – even the main dealers struggle to fix some faults these days. For the so-called advances in modern technology, I don’t think they have made the cars any better. justina3 I made the same point to Mrs Sparky when I spotted an old Citroen ZX diesel in Tesco last week and got all sentimental. Sparky

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back in the day They’ll wait a week, then do it all again! Seen Caralot have closed. Gutted for them. I don’t know them personally but really liked the set-up and social media content. Certainly a business that has given me inspiration at times. Tough old game that we are all in. Rory RSC Very surprising and sad to see. Looking from the outside they looked to be doing everything right, great social media presence and marketing campaigns. I think the owner said they did too much too soon, maybe they over-extended themselves. Suppose it’s like a domino effect once you get that big with that many staff and that much stock. A few bad months and it starts to pile up. MJ

The lads seem to be full of energy so I’m sure they will be ok, I wish them well for the future. Sparky Like many more before and I’m sure many more after, I guess they’ll dust themselves off, have a week of sitting around thinking ‘what next?’ and then do it all over again. It’s like a drug this industry... I’m hooked! Mat C

Top tweets from the Used Car Awards Well done to our friends Alexis and Scott @PrestigeDiesels for winning the first award at #UCAwards Danes Autos @danesautos Amazing night at @CarDealerMag #UCAwards last night – two amazing awards: ‘dealers’ dealer’ & ‘outstanding achievement’. Credit to @MarshallGroup. Daksh Gupta @MarshallMotorGp Enjoy your evening all you lovely people #UCAwards. Thanks to @mikebrewer and all the team, great night x Michelle Brewer @MrsMBrewer Thank you to @CarDealerMag for holding a fantastic awards evening and to @iVendiLtd for capping the evening off perfectly! #UCAwards Spidersnet @spidersnetUK

Coverage of the awards starts on page 44

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CarDealerMag.co.uk | 07

DASHBOARD. WARNING

Brexit could add £1,500 to price of a new car

Car dealerships ‘too focused on short-term sales’ bit.ly/short-term106

SMMT highlights ‘£74 billion’ need for motor industry to embrace digital technology ‘It’s the biggest step change for manufacturing since automation’

UK MOTORISTS could be charged an extra £1,500 for new cars imported from the European Union after Brexit, according to a new report. Analysis by the Society of Motor Manufacturers and Traders (SMMT) warned that the list price of imported vehicles could soar if the cost of import tariffs are not absorbed by brands and retailers. The UK’s decision to withdraw from the EU could add at least £2.7 billion to imports and £1.8 billion to exports each year, the SMMT predicted. The figures were based on a 10 per cent standard tariff on cars exported to and imported from the EU. UK carmakers are on track to set a new record for exports this year and increase production from levels achieved in 2015. But SMMT president Gareth Jones described Brexit as the government’s ‘toughest challenge’ and said it was vital that ‘the right conditions for future competitiveness’ are put in place if the automotive industry is to keep growing.

CONGRATULATIONS!

Toyota’s Tony is new president TONY Walker, deputy managing director of Toyota Motor Manufacturing UK, will be the SMMT’s new president. Outgoing president Gareth Jones said at the annual dinner: ‘I’m honoured to be the SMMT’s president but it’s time to hand over to someone new. I’m delighted to announce that the 80th and next SMMT president is Mr Tony Walker. Congratulations, Tony. We all wish you much success.’ 08 | CarDealerMag.co.uk

he government needs to invest in modernising the British motoring manufacturing industry, according to a new SMMT report. ‘The Digitalisation of the UK Automotive Industry’, released in conjunction with accountancy firm KPMG, highlights a potential gain of £74 billion by 2035 if the UK’s motoring industry is properly invested in, with a possible gain of ‘£6.9 billion every year by 2035’. In the report, the SMMT states: ‘The transition to digital manufacturing represents the biggest step change for automotive manufacturing since the introduction of automation in production lines in the 1960s.’ SMMT chief executive Mike Hawes said: ‘We may be at the beginning of a new industrial era but with innovation and continuous improvement part of the automotive sector’s DNA, we are well placed to embrace the opportunity. ‘Significant capital investment will be necessary and we must put digitalisation at the heart of the UK’s industrial strategy to ensure we are equipped with the right skills, infrastructure and standards.

by JACK HEALY @jack_healy19 ‘The competition from other countries is intense, so we should follow the model that is proving so successful in the development of low-emission and connected and autonomous vehicles in the UK, with a collaborative approach between government and industry.’ The report highlights the improving technologies in the manufacturing sector, such as intelligent robotics, 3D printing and artificial intelligence, which can combine with new datamanagement techniques to improve efficiency and speed up production. Germany was the first country to introduce such a policy, called ‘Industrie 4.0’, and it was soon followed by the US, which has the Industrial Internet Consortium with funding of $1 billion. John Leech, head of automotive for KPMG in the UK, said: ‘The UK automotive industry is already the most productive in Europe but faces increasing competition from lower-cost countries and uncertainty following the UK’s vote to leave the EU.

Be proud of what you’ve achieved Hammond and May tell audience THE Grand Tour hosts Richard Hammond and James May, right, were surprise guests at the SMMT’s annual dinner in late November. The duo opened proceedings at Grosvenor House in central London, at what was the SMMT’s 100th such event. After leaving Top Gear in 2015, the pair followed Jeremy Clarkson to their latest venture, The Grand Tour, which was plugged throughout their time on stage. Hammond and May both said they were delighted to attend, as they both wanted to acknowledge their support for the ‘thriving British motoring industry’, which had helped them become so passionate about cars

in the first place. Hammond said he wanted to ‘gingerly’ creep around the subject of Brexit, which drew laughter as it appeared to be a reference to former Top Gear host Chris Evans. The duo congratulated the audience, which was filled with the country’s best and brightest from the motoring industry, and said: ‘We wouldn’t be in the position we are in without your hard work, production and skills, because we wouldn’t have anything to talk about. You should all be very proud of your work throughout the last year.’

‘The application of digital technologies to the design and manufacture of vehicles will help to secure the industry’s competitiveness in the decades to come. The industry has started to apply digital technologies with the vision of creating a common digital thread from the customer through the vehicle manufacturer and its supply chain. ‘It is now time for the UK government and industry to accelerate its collaboration into digital manufacturing technology, following the examples set by Germany, Japan and the US.’

CarDealerMag.co.uk | 09

DASHBOARD. LA AUTO SHOW

Scratch beneath the surface Super-size America doesn’t extend to this automotive event in America’s Golden State, reports James Baggott

or a land known for its love of excess, the LA motor show is a relatively bijou affair. Small, compact and easy to get around, it’s the polar opposite of the city that hosts it. It makes little sense launching cars in a metropolis that’s smothered in a layer of smog, rammed with traffic and needs more cars like the ozone layer needs a bigger hole in it, but America, being America – it does it anyway. Unlike the vast, monolithic motoring expos of Frankfurt and Paris, LA does things in bite-sized chunks (unlike its burgers). The stands are more compact, the press corps less stressed and fewer in numbers, and the new car launches less frequent. But that doesn’t mean there isn’t big news out here in the States – some manufacturers, especially those with a presence on this side of the pond, or with aspirations to have one, take the event pretty seriously. Alfa Romeo is one such ambitious car maker. The Italian firm showcased its new Stelvio SUV with a launch in a tent outside the main halls. It was so packed, the over-zealous American fire regulations meant most journalists couldn’t even get in. Fortunately, the Porsche Macan and Jaguar F-Pace rival was quickly moved to the Alfa stand, where we got a proper look. Rumours suggest it will arrive in the UK late in 2017 with a diesel engine first before a bi-turbo 2.9-litre V6 packing 503bhp follows soon after. The spicy version will have four-wheel drive, the diesel making do with power via the rear wheels. Some Italian flair in a sector not known for it will be most welcome. Elsewhere, the Germans gave the clearest signs yet that another recession was imminent with the unveiling of the why-do-we-need-it MercedesMaybach S650 Cabriolet. Just 300 of the 621bhp

Jaguar’s futuristic I-Pace attracted attention monsters will be produced and, although pricing is yet to be released, don’t expect much change from £200k. Mazda used the eve of the first press day to take the wraps off its new CX-5. At an event peppered with nonsense car design gobbledygook and interspersed with pictures of cheetahs and chopsticks that were being used to demonstrate Mazda’s new design direction, the manufacturer showed off a rather smart-looking SUV. It’s the best-selling model in Europe for the firm and its new nose, which has more than a hint of Jaguar F-Pace about it, points to the future look for all Mazdas. It also comes in a new red, that’s more red than the last red. Understood? Good. Jaguar was another manufacturer that had decided to grab some early motoring show headlines, revealing its futuristic electric I-Pace to the world in its own unique style two full days before the event opened. Using virtual reality headsets, it simultaneously launched the car in LA and London, with car designer Ian Callum showing off the firm’s first foray into EVs. LA was an apt showcase for a model that’ll sell 50 per cent of its volume in the States, and with a range of 310 miles on a single charge, chances are those buyers will be queuing up to get hold of one

THE MOTORS IN ‘THE GARAGE’...

10 | CarDealerMag.co.uk

... a fantastic array of modified American motors

Alfa Romeo Stelvio SUV when it goes into production next year. Finally, a Tesla rival from Britain? We hope so. Other notable launches included a world premiere for the largest of all Minis, the Countryman, and the new Volkswagen e-Golf with a range of 186 miles on a charge – up 50 per cent on its predecessor. However, it was the real Americana that caught our eye in the subterranean halls under the main event. Dubbed ‘the garage’, they contained a host of modified motors that were a welcome relief from the corporate frontage of the manufacturer stands upstairs. Modified Ferraris, Gulf-liveried Fords and bigwheeled classics were among the delights hidden away below the show’s huge halls. Just like the city then, proving that if you scratch beneath the surface a little you’ll find the real treats.

to find the real treats... MOTOR SHOW DEBUT

New-look CX-5 debuts future Mazda design MAZDA has pulled the wraps off its new CX-5 and with it debuted a new bold, more premium look that will spread across the brand’s models. At the launch of the new SUV at the LA motor show, the firm’s UK managing director, Jeremy Thomson said the car was ‘a stepping stone’ to the next generation of Mazdas. ‘The CX-5 is a very important car for Mazda,’ he explained. ‘It’s not just a facelift of a car that came out in 2012, but it hints at a design language that will flow through all our cars in the next few years. ‘We have one of the freshest product lineups in the industry and we will shortly launch a seventh generation of Mazdas in the UK. This CX-5 gives a good look at where we are going.’ The new CX-5 has a bold new grille – that at first glance could have been borrowed from the Jaguar F-Pace – smoother lines and sharp new lights. It is due to arrive in showrooms next summer and is likely to help increase sales from its current 9,000-a-year UK tally. ‘The CX-5 is hugely important to Mazda in the UK,’ added Thomson. ‘The C SUV segment has been growing for many years. When CX-5 arrived in 2012 it was relatively late into the evolution of that segment but my word has it made an impact – we have not even had to advertise the car on TV since its launch. ‘We have attracted the highest number

Above: Why do we need it? The MercedesMaybach S650 Cabriolet

of premium customers to Mazda with the CX-5 too. BMW, Mercedes and Audi owners swapped their cars for a CX-5 and I think that was down to its attractive running costs and decent specification. I can see this new model continuing that and helping increase sales.’ But does it look different enough? ‘I think it was always a very handsome car so it would have been a mistake to change it too much,’ said Thomson. ‘In key areas there are significant improvements. The front grille is dramatic and assertive and points very much to future Mazda design, which is exciting.’ Other highlights for the new model include a new ‘Soul Red Crystal’ paint, reduced road noise in the cabin and a new head-up display. Prices have yet to be released but will be ‘competitive and reflect the improvements,’ added Thomson.

The Mazda CX-5, left, is inspected by the press at the LA motor show, above

TOP FIVE CARS FROM THE AUTO SHOW CarDealerMag.co.uk | 11

DASHBOARD. LA AUTO SHOW

Top five show cars The Los Angeles Auto Show is packed out with full-blown Americana and vehicles big enough to comfortably live in, but a selection of automotive firsts for the UK market was also unveiled. We took a trip across the pond to see them for the first time and here are our star cars from the event, courtesy of REBECCA CHAPLIN

Mazda CX-5

Another all-wheel-drive offering, this time from Japanese brand Mazda. The CX-5 SUV is its bestselling model in Europe but was due a refresh. It’s been given a cleaner exterior design, while the brand reports that all aspects of the car have been refined. It also debuts a new paint colour, called ‘Soul Red Crystal’, which has greater depth than ever before.

Mini Countryman

Despite its name, Mini has gone for bigger and better than ever once again with the new Countryman. It’s the most versatile version of the car yet, thanks to increased dimensions making the experience more comfortable for all those travelling in one. For the first time the model is being offered with a hybrid powertrain, which will achieve 134.5mpg and hit 60mph in 6.7 seconds.

Jaguar I-Pace

Jaguar’s electric vehicle concept follows in the footsteps of the successful SUV released last year, F-Pace. Jag says the car combines supercar looks, sports car performance and SUV space, and claims it will hit 60mph in around four seconds using the torquey electric system.

Alfa Romeo Stelvio Quadrifoglio

Following in the footsteps of almost every other car manufacturer, Alfa Romeo unveiled its very own SUV in LA called Stelvio. It’s named after the famous Italian mountain pass, and the carmaker hasn’t been shy with regard to boasting about its motoring credentials to match. The car on the stand was in the brand’s high-powered QV guise and will be kitted out with a 503bhp, 2.9-litre V6 bi-turbo engine.

Mercedes-AMG E 63

It’s the most powerful and fastest-accelerating E-class yet. This executive saloon produces 604bhp and will hit 60mph in just 3.2 seconds. Not only that but it’ll be more efficient than the previous model with cylinder deactivation fitted as standard. It will feature the AMG nine-speed multi-clutch automatic gearbox and the brand’s new all-wheel-drive system. 12 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 13

Ask Auto Trader

Have a question, or a suggestion for next month’s topic? I’d love to hear from you: marc.thornborough@ autotrader.co.uk

The secrets of sale success

It’s been a very busy year for dealers as they seek to make the most of sales opportunities but what are the most frequently asked questions as they seek to achieve this? Marc Thornborough, Auto Trader Brand Director, reveals the key questions and the answers that help dealers land sales success.

How can I generate more advert views for my vehicles?

How do I build trust with my prospective customers?

We’re all busy people, none more so than the independent dealer, but taking time to ensure your stock is properly presented is crucial to making sure you stand out amongst your competitors. The majority of car buyers will be viewing your cars via tablets and mobile and your car has to jump out from the page.

Recently we invited a dozen or so independent customers into our Manchester office. Doing some research I studied all of their websites, many had an ‘About us’ page. But, what I couldn’t find was a single person’s name or a human face or photograph of a person on any of these pages! Tell me who you are. There’s an old saying “people buy from people” so put your greatest asset (you and your people) on your website, who they are, how long they’ve been with you, etc.

There’s not one thing that can improve your advert performance but several things are critical. Take great photographs. I know, I know you’ve heard it all before but I’m still amazed at the amount of poor quality images and even vehicles with no images displayed for sale today. I’d argue that making sure your vehicles are displayed effectively is the most important job in your business.

Another factor is price. Pricing your stock to the live market and monitoring it regularly will ensure it’s within the parameters of what people expect to pay. Too many dealers have a slash and burn philosophy, waiting weeks and sometimes months before making a drastic price reduction in a last ditch attempt to generate interest. Little and often in line with the rest of the live market means you’ll remain competitive on price, maybe even increasing the price if a car is highly desirable in your area. The beauty of having daily performance metrics available to you in your Auto Trader Portal is that you can instantly see the impact any changes you make have had on your advert views within 24 hours.

Trust is built up over time and is a combination of many different factors. One factor being who you are. How many of you have an ‘About us’ section on your website? What does this actually tell prospective buyers about you?

One great example was a film from the owner of a business explaining how long they’d been established, what values they believed in, what the customer could expect when buying from them, their aftersales policy, etc.

Why do I need reviews when I have a page full of testimonials?

I’ve spoken to many independent dealers and analysed hundreds of dealers’ websites this year, most of which have testimonial pages. The difference between open reviews and testimonials is that reviews are more honest, trusted and credible then testimonials. Testimonials are your PR, great stories from past

customers that you’ve chosen to display and anyone reading these knows that, they know that you’ve selected the best to reflect the best in you, and that’s good but it’s not great. As a prospective buyer of yours I want honest third party opinion of what it’s like to deal with all aspects of your business, from anyone dealing with you not just the ones you’ve decided to show me. Having a bad review is as good as a great review because it gives you the opportunity to show exactly what you can do when things go wrong. Nobody’s perfect and we all make mistakes but how you deal with these is critical and the beauty about open reviews is you always have the last word. The reply facility tells future customers exactly how you reacted and will also shine a ‘light of credibility’ on all your other five star glowing reviews. I’m more likely to believe all the other reviews and balance out the two before I make the decision to contact you.

I have reviews of my business on other sites and social so why should I put them on Auto Trader?

Why make it difficult for me to find them? You need to have your reviews next to your products for sale. Take Amazon, right next to the listing of the object for sale is a review of the product from past purchasers. It helps inform my decision to purchase from you at point of purchase. Be transparent, don’t put a hurdle in my way, make it easy for me to find this out.

For more information and support please visit trade.autotrader.co.uk For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter

14 | CarDealerMag.co.uk

DASHBOARD.

Hexagon brings its classic car sales under one roof It’s a fantastic move for our customers, says company chairman Paul Michaels

ondon dealer Hexagon has consolidated its modern classic and classic car sales operations under one roof at its flagship showroom, Hexagon Classics in north London. In a move that will strengthen its status as one of the world’s leading classic car dealers and give customers a single destination for all their needs, Hexagon’s South Kensington showroom – which up until now has focused on classic cars from the ’50s, ’60s and ’70s – has been consolidated within Hexagon’s flagship site located near The Bishops Avenue. This larger site, which was renovated at the start of this year, has been home to modern classics such as air-cooled Porsches. Continually developed, it has space for more than 70 of the world’s finest cars.

Stock will now range from historic Aston Martins – such as the DB4 and DB5 – to the Jaguar E-Type and Ferrari 512 BB right up to collectable Porsches such as the Carrera 3.2, 964, 993 and future classics. Hexagon Classics also features Hexagon Classic Design, an inshowroom art gallery and store, which sells ceramics, sculptures and photography and hosts regular installations from leading artists. With the consolidation of

Hexagon’s classic and modern classic car operations, Hexagon Classics brings together the world’s finest cars with a luxury lifestyle slant. Hexagon chairman Paul Michaels said: ‘Our flagship north London site is perfectly located, spacious and looks sensational – it’s always been my intention to bring everything under one roof and we’re now finally at the point when we can do it. ‘For our customers this is a fantastic move, giving them one central point to immerse themselves in our stock. It also makes perfect sense for our staff. ‘Factor in the other elements of the business, such as Hexagon Classic Design, and Hexagon Classics is shaping up to be the true lifestyle experience I always wanted it to be. ‘We have lots of exciting plans for the coming years – watch this space.’

INSURANCE

Nearly all motor claims are paid ABOUT 99 per cent of motor insurance claims are successful. The Association of British Insurers (ABI), which analysed claims made in 2014 and 2015, said payouts were made in all but one per cent of private motor insurance claims. The average payment was £2,347. Meanwhile, about 84 per cent of home insurance claims made across 2014 and 2015 were successful. The figure has increased from 79 per cent in 2013-14, and the ABI said this reflected efforts to increase customer awareness about what might or might not be covered. The average home insurance claim paid out is now £2,627. Huw Evans, the ABI’s director general, said: ‘Insurance customers should take confidence that the vast majority of all claims are paid.’

CarDealerMag.co.uk | 15

16 | CarDealerMag.co.uk

MG network continuing to expand DURHAM: MG Motor UK has continued to extend its national dealer network with the appointment of Fred Henderson Ltd. The family-run business, based in Durham City, has more than 43 years’ experience in the motor industry. Established in 1973 by successful rally driver Fred Henderson, the business was originally in a disused workshop underneath the Durham City railway bridge. Henderson’s son, David, who is also a keen racer, joined the business in 2004 to concentrate on the workshop element and now holds the title of dealer principal.

CUMBRIA: One of the Lake District’s oldest automotive groups has established a new Renault and Dacia dealership at Levens, near Kendal. PV Dobson, a family-run business that first began trading in the South Lakeland and North Lancashire region in the 1940s, has invested in the Groupe Renault franchise for the first time after its decision to expand its portfolio coincided with Groupe Renault UK looking to enhance its dealer network following a period of sales growth. The new dealership is based on a near-two-acre site that acts as a hub for the automotive company.

BIRTLEY: A Motorpoint site has formed a unique sporting partnership with Northumbria University. The car supermarket, which operates out of Durham Road in Birtley, has agreed to provide the Northumbria Sports programme with a number of branded vehicles to help its elite athletes travel to tournaments throughout the country over the coming year. As part of the partnership, Motorpoint will again team up with the region’s only Netball Superleague outfit – Team Northumbria – for the forthcoming 2017 season.

Motorpoint in sporting partnership

TAYSIDE: A family-run business has opened its second Mitsubishi dealership in Tayside following the success of its showroom in Dundee. The arrival of Richard Lawson Mitsubishi in High Street, Burrelton, sees the business increase its coverage into the Perthshire area, adding to the Tayside area covered by Autoecosse in Kingsway East, Dundee. Managing director Richard Lawson, who has been in the motor trade since 1971 and founded Autoecosse in Dundee in 2005, said: ‘I’m delighted to be opening our second Mitsubishi dealership.’

Family firm’s second Mitsubishi outlet

New Renault and Dacia outlet in the Lakes

EDINBURGH: Lookers Audi has topped off a major two-year investment programme in Scotland with a £2 million extension and showroom upgrade at its Edinburgh facility. Edinburgh Audi said the latest investment reflected the group’s confidence in Scotland and underpinned its long-term commitment to the region. As part of its investment, the company, which has established sites in Glasgow, Stirling, Ayr and Edinburgh, also opened a new £3.5 million Audi Approved new and used car base in Hamilton, South Lanarkshire, creating 30 new jobs.

Lookers Audi feeling confident in Scotland

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

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 17

New Jaguar and Land Rover outlet opens SUFFOLK: One of the UK’s top 10 motor retail groups, Marshall Motor Group, has opened a new Jaguar and Land Rover dealership in Ipswich. The new Jaguar Land Rover retail concept will showcase both brands operating side by side from the same location serving customers across Ipswich and beyond. The new Dual Arch Facility will include increased customer parking, a state-of-the-art workshop and a 100-vehicle display area. As with all new Jaguar Land Rover sites, the interior is characterised by the use of luxurious materials and high-end furniture.

DS Urban store opens in shopping centre

LONDON: DS Automobiles has launched its first DS Urban Store in Westfield London, where shoppers can get up close and personal with the complete DS range. Westfield London is the perfect location for this as one of the UK’s most popular shopping destinations, with 27 million people visiting it in 2015. Yves Bonnefont, the chief executive officer of DS Automobiles, said: ‘The DS Urban Store opening in London represents an important step in the development of the DS network. This new digitally interactive DS Urban Store concept is a strong asset to promote the brand.’

WEDNESBURY: Fast-growing car supermarket group The Trade Centre Wales is to open its second new superstore within nine months. The company will be crossing the border for the first time with the launch of a 12-acre, 1,200-car site in the Wednesbury area of the West Midlands early in 2017. The business will occupy what is currently a vacant car supermarket facility although the site needs significant work. Andy Coulthurst, CEO of The Trade Centre Wales, explained: ‘The premises need total reconfiguration.’

Trade Centre Wales expands... to England!

STOCKPORT: Lookers is bringing Volvo back to Stockport with a new Scandinavian-inspired showroom. The state-of-the-art facility is set to open next year after a £4 million investment. Purpose-built to meet the design specifications of the Volvo Retail Experience (VRE), the new-look showroom will have the capacity to display 10 cars in the showroom and 50 used cars on the forecourt. Until the official opening, Lookers Volvo is open to customers at a temporary facility in St Mary’s Way.

NORFOLK: Damage worth an estimated £45,000 was caused at a dealership after a driver lost control of their car in icy weather and ploughed into three Fords on the forecourt. The accident happened late in November at WS Kilbourn & Son in Mill Road, Hempnall. Nobody was hurt, although the car, reported to have been driven by a Hempnall resident, overturned. The Fords were written off. Dealership owner Mark Kilbourn told the Eastern Daily Press: ‘It happened about 6.30am. Three of our cars have been written off and a wall was damaged.’

Cars written off as driver loses grip on ice

LINCOLNSHIRE: Honda Grantham has celebrated its 20th anniversary with an extensive showroom makeover. It has been transformed into a state-ofthe-art retail store to support the dealership’s growth plans across new and approved used Honda cars and motorcycles. General manager Mark Goode, who has been at the dealership for more than 10 years, having worked his way up from sales executive, said: ‘This has been a really exciting time for Vertu Honda Grantham. The new showroom helps us to provide customers with the complete Honda experience.’

MANCHESTER: The SsangYong range of 4x4s and SUVs is now available in Hyde, after the appointment of Premier SsangYong. The dealership will operate the SsangYong franchise from its premises at Pitt Street, Hyde, Greater Manchester. Nigel Bird, dealer principal, said: ‘We are delighted to have been appointed to represent SsangYong and greatly look forward to playing our part in its continuing success. SsangYong has a great range. We believe it will do extremely well in our area.’

£4m investment as Lookers set to return

Complete Honda experience on offer

New SsangYong dealer tells of his delight

18 | CarDealerMag.co.uk

DASHBOARD. SMMT FIGURES

Fall in demand sees decrease in production

VW appoints new group aftersales and customer quality director bit.ly/vwjob106

Boss of Motorpoint blames Brexit vote for drop in profit Solid performance is still expected from three new centres

CAR production has fallen for the first time in 14 months amid a decrease in domestic demand, according to a new study. Just under 151,800 cars were built in October, a fall of one per cent on the same month last year, said the SMMT. Exports rose for the 15th month in a row, with 122,765 cars built for overseas markets, up by 1.7 per cent on a year ago, offsetting a 10.9 per cent decline in production for the home market. The SMMT said the motor industry remained strong, though – up by 9.2 per cent so far this year, with more than 1.4 million vehicles being produced. Mike Hawes, SMMT chief executive, said: ‘October’s figures underline the export-led nature of the industry, with eight out of 10 cars built for overseas customers. ‘Despite model changes which have ended the consistent growth pattern of the past year or so, we are still on track for a record number of exports.’

PORSCHE MISSION-E

20,000 annual sales predicted PORSCHE predicts its first allelectric sports car Mission-E will generate 20,000 sales a year globally when it is set to go on sale in 2019. Deputy chairman of Porsche AG Uwe Hueck had already announced that the brand would need to produce 10,000 units a year to make a profit. However, he declined to reveal any sales targets. But Porsche CEO Oliver Blume gave the estimate in an interview with the magazine Automobilwoche.

by JOHN BOWMAN john@blackballmedia.co.uk

he boss of car supermarket Motorpoint has blamed the Brexit vote result for the company’s dip in financial fortunes. The Derby-based vehicle retail empire, which has 11 retail sites across the UK, reported a drop in its operating profit of nearly a third for the first half of this financial year – down by 32 per cent from £10.3m to £7m on the same period last year – despite revenue increasing from £366.8m to £408.9m. Pre-tax profit was down a huge 76 per cent, falling from £10.2m last year to £2.4m this year. Despite the drop, though, the company is making an interim dividend payment of 1.33p – its first since its £200m float in May. Managing director Mark Carpenter, pictured, said: ‘The uncertainty around the result of the EU referendum contributed to the group’s disappointing performance in the first half. However, we managed stock levels carefully, thereby maintaining

our industry-leading stock turn despite the short-term impact on margins. While some uncertainty around Brexit remains, the three new sites that we have opened in the last 12 months are performing well and we anticipate they will deliver a solid performance in the second half. ‘Despite the softening in consumer confidence, market conditions since the period end have remained stable, with a good level of stock availability, and margins have returned to normal levels.

‘We continue to invest in opening new sites, and we have recently acquired a leasehold site in Sheffield, which will open in spring 2017.’ He added that the company, which started in 1998 and now has more than 600 employees, was in a good position ‘to deliver a full-year performance in line with expectations’. In February, Motorpoint was again named by the Sunday Times as one of the best companies to work for – the second year running it has been listed for the honour.

Skoda surpasses one million units in 2016 SKODA surpassed the mark of one million vehicles delivered in 2016 in November, reaching the milestone about a month earlier than 2015 and delivering a seven-digit number of vehicles for the third year in a row. The top model Skoda Superb has made a considerable contribution to this success. From January to November 24, almost 115,000 units of the flagship rolled off the production line – an increase of 85.2 per cent year-on-year. The launch of the new large SUV model Skoda Kodiaq (see page 42) and the comprehensively upgraded Skoda Octavia promise further growth momentum for 2017. Skoda CEO Bernhard Maier said: ‘The current financial year shows that Skoda can

sustainably tap into new customer segments with a modern model range on the international markets. We will also continue our growth course in 2017. ‘The new Skoda Kodiaq is going to play an important role in this; the model will expand our range in the growing SUV segment.’ The heart of the brand, Skoda Octavia, has made a significant contribution to the expected record

sales. Skoda delivered 361,700 units of its bestseller from January to October. In the coming year, major revisions are planned for the Octavia. The successful model is set to further strengthen its successful position on the international markets. Skoda will be launching its first large SUV on the markets next year. With the Kodiaq, the brand is launching its campaign in the currently largest and fastest-growing SUV segment. The new model will open up new customer groups for the traditional brand. Orders are already being placed for the Kodiaq, which will be heading to the first customers in February. Beyond the positive outlook for 2017, Skoda has set the course for long-term growth. CarDealerMag.co.uk | 19

DASHBOARD. CAR BUYING GROUP

Regional award for digital firm A START-UP digital motor firm has won a prestigious regional award. The Car Buying Group, which was formed in 2014, has been named Young Business of the Year at the Yorkshire Post’s Excellence in Business Awards. The win sees the Wakefield and Bradfordbased national firm recognised for its fast growth since forming the business. The awards ceremony was held at the Royal Armories in Leeds.

HONDA

Dave takes helm at Honda UK HONDA’S UK sales division has announced the appointment of Dave Hodgetts as its next managing director. Hodgetts, above, will take control of the company’s sales operation for cars, motorcycles and power products from January 3. He succeeds Philip Crossman who is retiring after 17 years at Honda. Hodgetts is 57 years old and married with two children. He has worked at Honda for 27 years.

RAC

More warranty agents on board THE number of agents selling RAC-branded warranty products to dealers has been increased by more than a third this month, with 14 added to bring the total to 50. More than 800 applicants were considered as part of the recruitment process. Sean Kent, director, corporate and independent dealers at The Warranty Group, the RAC’s partner in the dealer sector, said: ‘We are very much in a growth phase at the moment.’ 20 | CarDealerMag.co.uk

Firegate : More damaging publicity for Vauxhall Tabloid and BBC turn the heat up over Corsa blazes by DAVE BROWN @CarDealerDave

auxhall has been facing more damaging accusations over the safety of its vehicles after The Sun published the results of an investigation into fires breaking out in Corsas and the BBC’s Watchdog television programme found that of 10 Corsas it examined three posed a fire risk. According to the newspaper, analysis of a burnt-out Corsa D, a model introduced in 2006, found the fire had broken out ‘in the region of the heater system’. Meanwhile, the BBC One show revealed six fires in Corsa D models that had not been covered under recalls of the 1.4-litre turbocharged engines in April. On a dedicated webpage on Vauxhall’s website, the manufacturer responded to these six cases, saying that in three of them there was no record of the customer contacting Vauxhall. In two of the cases where contact was made a vehicle inspection was rejected by the customer in one and the insurer in another. In the final case, the insurer made contact after the four months for an inspection and the vehicle was no longer available. An expert told The Sun that heating problems that affected wiring in some Vauxhall Zafira models had been detected in the Corsa’s heating and ventilation components as well. The investigator said the Corsa model also appeared to have similar heater components to the Hummer

H3 – a 4×4 manufactured by parent company General Motors (GM) that suffered similar issues. The Zafira B and the H3 were subject to recalls in the UK and the US after a series of vehicle fires were blamed on faulty wiring in the heating systems. A Vauxhall spokesman said: ‘Vauxhall confirms that there is a different vehicle heating and ventilation system configuration in Corsa D/E to the Hummer H3, inclusive of a different connector. ‘This is why the risk assessment applied to the Hummer H3 cannot be applied to Corsa D/E. Vauxhall has no confirmed reports of vehicle fires originating in the vehicle heating and ventilation system of the Vauxhall Corsa D/E.’ The Sun commissioned research by automotive forensic investigation firm GBB after several Corsa owners reported their cars had caught fire. In a report, lead engineer Philip Hoyes said ‘resistive heating’ associated with failure in the Zafira B ‘has also been identified in the heater wiring harnesses of Vauxhall Corsa D models’. The report also said: ‘A fire-damaged Corsa D, with a history of wiring harness damage, was examined to reveal an origin of

The Sun’s front page earlier this month fire in the region of the heater system. The wiring harness and the failure mode identified in Corsa D models appears similar to those of … Hummer H3 where a risk of fire led to recalls in 2015. I recommend that Vauxhall consider that the resistive heating that affected the Hummer vehicles produced by its parent company General Motors is also occurring in its UK Corsa model.’ According to campaigners, more than 300 Zafiras have caught fire in recent years, leaving their occupants with just a few seconds to escape. In May, it was announced that more than 234,000 were to be recalled for a second time to improve the electrical components in the heating and ventilation system. It followed action last year by GM to recall nearly 200,000 H3s over concerns of fire breaking out.

Vauxhall ‘has taken too long’ to protect its customers VAUXHALL has not acted quickly enough to protect customers who are worried that their cars might burst into flames, according to the Driver and Vehicle Standards Agency. The government body made the comment in reaction to the above investigation by The Sun. Gareth Llewellyn, chief executive

of the DVSA, said: ‘Our first priority is road safety and to protect the public from unsafe drivers and vehicles. ‘Vauxhall has confirmed to DVSA that it will provide owners who don’t feel safe using their Corsa D with alternative transport until their vehicle is repaired. We have made it clear that it is vital Vauxhall swiftly rectifies its

problems and it has taken too long for the manufacturer to protect its customers. ‘DVSA continues to press Vauxhall to meet its obligations and protect consumers.’ The DVSA is also working with the Department for Transport ‘to consider further action’, he said.

Now driverless cars can tow other vehicles! bit.ly/driverless-106

Auto Trader vows to keep Dealer Finance free for a year AUTO Trader has broadly increased its product range in recent months but there is more still to come, as CEO Trevor Mather has revealed. The highlight of his briefing was that the Dealer Finance product, live to 500 dealers, will be guaranteed free for the next 12 months. ‘It’s still in trial mode, but anybody can have that product now. It’ll be free until at least 2018,’ said Mather. He explained the thought process at Auto Trader behind the product –

which will tell consumers the monthly payments they could pay on a car – by saying at the briefing: ‘We want to ease the consumer pain-point of not knowing what will happen when they get to a dealership. ‘There’s been a pretty stagnant percentage of used car vehicles that have come under dealer finance. ‘A lot of people are still getting loans before they reach the dealership, either from a bank or car finance specialists and they’re

generally unsecured loans. You can usually get a better deal in a dealership and most consumers don’t know that. ‘So we’re trying to get that advertised so you increase the percentage of finance products that are sold in the dealership.’ The Part-Ex Guide was also launched earlier this year and the Auto Trader boss was proud to announce that 67 per cent of its dealers had opted for the product.

Ford goes for more mature look with the new Fiesta Objective is to take model upmarket in response to customer calls

pending 30 of the past 40 years at the top of the UK sales charts, there’s no vehicle on sale today more important than the Ford Fiesta – and Ford pulled the covers off the new Fiesta at its Go Further 2016 event in Cologne in front of 2,500 dealers, media and employees. The Fiesta has been treated to a more mature approach to its styling when compared with its predecessor. The front end has been completely redesigned as has the rear of the car, with the rear lights that were positioned on the C-pillar of the previous car model moved to just below the boot window line. On the inside, the array of buttons from the previous car has been replaced with an eight-inch touchscreen that features Ford’s new Sync 3 infotainment system. This incorporates navigation, DAB radio and improved voice commands, along with Apple Carplay and Android Auto for improved smartphone connectivity. The engine line-up for the Fiesta has also been revised,

by ANDREW EVANS @snavEwerdnA with petrol and diesel options from 69bhp to 148bhp, including a new, entry-level 1.1-litre TiVCT petrol. All models with more than 98bhp come equipped with full disc brakes, allowing for a vast improvement in stopping distances. New for this generation is the SUV-inspired Fiesta Active. The first vehicle to be introduced to the new line of ruggedised Active vehicles, it features black cladding on the front and rear bumpers and side skirts, while the ride height has been increased by 18mm. Ford also unveiled a high-end version of the Fiesta as part of the Vignale model range. Like the other Vignale models – Mondeo, S-Max,

Edge and Kuga – the Fiesta’s comes equipped with a plush leather interior, large eight-spoke alloys, contrast stitching throughout the cabin and plenty of Vignale badging. Speaking on sales projections for the new Fiesta, Roelant de Waard, vice-president of marketing, sales and service at Ford of Europe, said: ‘Our objective is to take the Fiesta upmarket. We could have gone to maximise sales, but for us it’s more important to respond to the customers in the market, which says ‘We like an industry that is spending more on smaller cars and we would like you to design a car for that’. ‘The first price for the Fiesta will look a lot higher, but that is deceiving because it will actually not have gone up much, it just starts with a higher specification.’ Pricing is unconfirmed at the moment, with the new car set to go on sale in the UK in time for the September 2017 plate change.

FACEBOOK POST

Former Caralot boss speaks out after closure

CARALOT co-founder Jamie Caple has spoken out about the demise of the company. In a personal blog post on Facebook, Caple, pictured, hints that he’s starting all over again – and wishes his former business partner Nick Donald all the best for the future, despite the fact that their professional relationship broke down. Derby-based Caralot featured regularly in the pages of Car Dealer Magazine in its six years of trading. Repeat winners at the Used Car Awards, the business was also the subject of an in-depth profile piece early in 2015. But speculation that the end was near came in November and the company went into liquidation. Donald, who was the remaining director, said the business might have got too big too quickly. On Facebook, Caple apologised ‘to anyone who has been negatively affected by the closure of the company’, and said: ‘It was never meant to end this way.’

FORD

Galaxy is fastest selling car – again! THE Ford Galaxy has clocked up a remarkable three months in a row as the UK’s fastestselling used car. The people carrier took just 19 days from landing on the forecourt to finding a customer. The Galaxy was also the nation’s number-one seller in October (when it took an average of 11 days to sell) and September (12 days). It’s the first time a model has racked up three consecutive months as the fastest-selling used car. CarDealerMag.co.uk | 21

DASHBOARD.

10 of the most famous car For any car enthusiast, the places where cars are actually made are a source of endless wonder. These incredible factories churn out the objects of our affection on a minute-byminute basis, but sometimes it’s difficult to appreciate their sheer scale and majesty. Thanks to the magic of Google Maps, though, we’ve been taking an aerial look at 10 of the most famous vehicle factories in the world. ANDREW EVANS reports.