SMMT STATS: WHY 2017 IS THE YEAR CAR SALES WILL FALL
AUTOMOTIVE
INFLUENCERS Issue 107 | February 2017 | CarDealerMag.co.uk | £3.50 INSIDE
SILVERSTONE MAY 23, 2017
TOP CAR MANUFACTURER CHIEFS, DEALER BOSSES & SUPPLIERS REVEAL THEIR HOPES AND FEARS FOR 2017
PLUS
P THE TO IES N COMPA 017 FOR 2
TRADING UP
MOTOR CITY SHOW STARS
HOW WE TURNED £100 INTO A WHOPPING CHEQUE FOR CHARITY
FIND OUT WHY YOU NEED TO BE THERE
TURN OVER FOR DETAILS
GERMAN MANUFACTURERS STEAL DETROIT SHOW AS AUDI, VW & MERCEDES UNVEIL NEW METAL PLUS INSIDE STORY ON KIA’S 167MPH STINGER GT
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Current exhibitors include: · Auto Alert in association with ASE · Auto Trader · CarGurus · Carsnip · CCKeys · Codeweavers · Cooper Solutions · Cox Automotive · Dragon2000 · eDynamix · Gemini Systems · GForces · Glass’s Guide · iVendi · JudgeService · Keytracker · Mallard Vehicle Finance · MDF Database Solutions · Moneypenny · Oodle · Progress Recruitment Solutions · Reynolds and Reynolds · Search Optics · Titan DMS · Traka Automotive · Trusted Dealers · Warranty Administration Services
‘CDX makes us stronger as an industry’
‘It’s a day that can deliver big benefits’
‘CDX is a great showcase for new ideas’
Daksh Gupta, CEO of Marshall Motor Group, will be bringing his entire board to CDX and appearing on the Live Stage.
Neil Smith, operations director of Imperial Car Supermarkets, will also be speaking on the Car Dealer Live Stage.
Lance Bradley, the managing director of Mitsubishi Motors in the UK, is very much looking forward to CDX17.
‘The UK car industry is a huge contributor to the UK economy. It employs circa 750,000 people and contributes around four per cent of GDP. CDX17 will provide a platform for the industry to network, share best practice and explore new ideas. Events such as this only make us stronger as an industry.
‘CDX17 is vitally important to the UK motor industry. As the premier expo in the UK, it’s the only arena where we can get a handle on what’s current, what’s new and, most importantly, what’s about to “break” into the industry.
‘The motor industry is one of the most important in the UK, in terms of profile, employment and contribution to the economy. It’s important that as members of that industry we make sure we’re at the forefront of new ideas, new technology and new products. CDX17 is a great showcase for those things, gathered together under one roof, all at the same time.
‘Last year there were more than 100 exhibitors and 2,100 delegates attending so for me it’s a great way to network with colleagues in the industry, meet existing business partners, explore potential new relationships and investigate new innovation coming to the market. ‘Days like CDX17 give you thinking time outside of the muck and bullets.’
‘The market insight, provided in the various presentations, breakout sessions and panel debates, is also key to us understanding consumer behaviour. No other expo came close to providing what CDX16 provided last year and I’m sure there will be more of the same at CDX17. ‘It’s one day only out of what is undoubtedly a busy year. However, if you apply yourselves and make the most of everything that CDX17 has to offer that one day can deliver significant benefits moving forward.’
‘Our industry is moving at a rapid pace now. It’s essential that dealers are fully up to speed with the latest innovations, ideas and practices. CDX17 gives them a great opportunity to do that. It’s always easy to find reasons not to spend a day away from the office – I find myself doing it. But if you’re looking for a day that’s really worth making an exception for, CDX17 is it.’
Keynote speeches from...
®
Women in the Motor Industry
Women in the Motor Industry
The Social Media 200 THESOCIAL
MEDIA
The Car Dealer Live Stage
200 200 To book your space at CDX contact the Car Dealer team now on 023 9252 2434 or email events@blackballmedia.co.uk WITMI
WITMI provides a chance to discuss the benefits of getting more women into the motor trade as well as look at how we can change attitudes that it is too male-focused.
CDX17 will be hosting the new Social Media 200 session. Our list of the most socially skilful dealers is no longer just about Twitter so make sure you don’t miss this event!
LIVE STAGE
This year will see listed dealers, franchisees, independents, car supermarkets, manufacturers and supercar dealers on the Live Stage, plus more to be announced soon.
your stand space now
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‘If there was one event not to miss, it’s CDX17’ Scott Sinclair is Google’s automotive industry manager and will be giving a keynote speech to delegates.
1 2 3
CDX is back and bigger than ever on May 23 – and it’s FREE to attend
‘It’s a fantastic opportunity to bring together many from across the industry to share best practice, learn about the many new innovations driving the industry forward and hear from some fantastic speakers. ‘I’ll be looking forward to seeing all the new innovations that will be launched and presented at CDX17. At CDX16 I was blown away by the amount of new digital innovations. It’s an exciting time in the auto industry and I’m excited to see how those businesses are doing one year on, as well as keep an eye out for the next big thing to be part of the industry. ‘I can’t think of another UK-based event that brings together so many from across the industry into one place. If there was one event not to miss, it’s CDX17.’
Hosted in Silverstone Wing, the home of the British Grand Prix
Hear Google, Twitter, Facebook, Instagram and SMMT give keynote talks
4
Visit the biggest automotive suppliers showcasing their products
5
SMMT is pleased to be supporting CDX once again and the 2017 version looks set to be the best yet. It’s an excellent opportunity to touch base with dealers and others in the retail sector.
Hear the biggest dealers and manufacturers on the Car Dealer Live Stage
6 7
Learn in workshops and get best practice advice from the experts
SMMT chief executive Mike Hawes
Bangers4Ben 2017 Those who want to join our annual road trip in support of the motor trade charity Ben can be some of the first to sign up at CDX17. Places will be snapped up fast, so hurry!
For more details go to
Why YOU have to be at CDX17
Network with thousands of dealers at the biggest motor trade event in the UK
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IGNITION.
EDITORIAL HEAD OF NEWS AND FEATURES Rebecca Chaplin
rebecca@blackballmedia.co.uk Twitter: @believebecca
HEAD OF DESIGN Graeme Windell
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PRODUCTION EDITOR Dave Brown
dave@blackballmedia.co.uk Twitter: @CarDealerDave
NEWS EDITOR Jack Evans
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SENIOR STAFF WRITER Andrew Evans
andrew@blackballmedia.co.uk Twitter: @snavEwerdnA
STAFF WRITER Laura Thomson
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ADVERTISING SALES MANAGER Jon Hickey
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ACCOUNT MANAGER Michelle Searle
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SUITS CEO, BAIZE GROUP James Baggott james@thebaize.com Twitter: @CarDealerEd
MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors Tom Barnard, John Bowman, Jonathan Brady, Darren Cassey, Simon Davis Andrew Evans, Jonny Fleetwood, James Fossdyke, Ben Garside, Jack Healy, Chris Jervis, James Litton, Big Mike, Tim Naylor, Clare Newman.
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WELCOME. and Baileys should be a
BY NOW the taste of turkey
distant memory and at least one of your new year resolutions will have lapsed (probably the one about going to the gym). But despite the holiday season being a welcome break for many of us, the motor industry doesn’t slow down. Of course, January is the month when the UK’s annual new car registration figures are announced by the SMMT. We’ve been poring over the numbers to find out the winners and losers over the last year (spoiler alert: Ford was top, the Fiesta was the number one car, and it was a record year for registrations) and what the picture for the next 12 months looks like. You can read the results from page 12. It’s motor show season too, and we’ve been on hand at the North American International Auto Show in Detroit to see what new and improved models manufacturers are planning to bring to market over the course of 2017. On page 24 you can see our 12 picks for star of the show and we take a closer look at one of them, Kia’s intriguing new sports saloon car the Stinger, on the following pages. We recently held our annual Car Dealer Automotive Influencers event, where we talked to key industry figures, from brands to dealers and aftermarket suppliers, about their thoughts on 2016 and how they envisage 2017. Starting on page 52, you can read what the big hitters think about topics such as Trump, Brexit, diesel and scrappage, as well as their predictions for the year ahead. On the road test front, staff writer Darren Cassey has been in Portugal trying out the new What Car? Car of the Year, BMW’s new 5 Series saloon. You can read his thoughts on one of the most important new cars of 2017 on page 46. Meanwhile, Laura Thomson has been in Austria trying out the new All-Terrain version of the 5 Series’ chief rival, the E-Class, and her review is on page 48.
Meanwhile, I’ve been in Croatia driving Nissan’s new Micra in what may prove to be Nissan’s most significant launch since the Qashqai, while Jon Reay’s been putting the latest Suzuki Ignis through its paces. You can find out what we thought about these two small cars on pages 42-44. With the UK recently in the grip of ‘thundersnow’ (apparently), we’ve taken the opportunity this month to look at the extreme conditions that cars have to survive and the steps manufacturers take to equip them for the harsh conditions around Europe and the rest of the world. You can see the feature on page 80, including our trips to the opposite ends of the temperature scale as James Fossdyke drives the Nissan Navara in North Africa and Laura has a cold time in Norway with Ford’s Kuga. Seeing as Ford is top of the SMMT figures again, I’ve been to the Henry Ford Academy in Daventry to learn some of the secrets of its sales success, undertaking a dealership training course and finding out how Ford prepares its dealers. Read all about it from page 16. You’ll also find enclosed in this issue our indispensable Suppliers Guide – a 44-page handbook to the businesses we think you should be working with to help you make the most out of 2017. It’s a publication that no one in the industry should be without and something you should keep in your top drawer at all times. We have all the usual columns too, including Big Mike, news from around the world and the latest from our own fleet of long-termers. We’re sure the contents this month will chase away the winter chill! Enjoy the issue.
Rebecca Chaplin Head of News and Features
CarDealerMag.co.uk | 05
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INSIDE. ISSUE 107 I FEBRUARY 2017
Dashboard
08 FCA in fresh emissions row 10 SMMT full-year figures for 2016 12 Dealership training with Ford 16 James Litton 22 Detroit Motor Show 24 Around the UK 30 Rebecca Chaplin 33 Around the World 35 Finance 36 Big Mike 41 Feedback
16
Rebecca Chaplin learns some of the secrets behind Ford’s sales success
24
26
Sampling the delights of the Detroit Motor Show
Forecourt
Kia unveils its most powerful sports saloon car ever
87 ‘‘
Nissan Micra Suzuki Ignis BMW 5 Series
Our industry needs to do something radical – and start lobbying the government.
The top suppliers for you to work with this year.
James Baggott
114
Features Trading Up Some like it hot (and cold)
Data File
Car Dealer Club Recruitment Market Insight
52
Brexit, falling car sales, scrappage... find out what our Automotive Influencers had to say about these issues and more
Taking Stock Auctions Money Talks Key Notes with Traka Long-termers James Baggott
42 44 46
76 80 100 103 104 105 106 109 111 112 114
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. This year’s ceremony will take place on November 27, 2017.
The UK’s biggest and best automotive trade expo will take place at Silverstone on May 23 – once again sponsored by GForces. See the special gatefold cover with this issue for more information! CarDealerMag.co.uk | 07
FEEDBACK. Your comments via email to dave@blackballmedia.co.uk
Our website at CarDealerMag.co.uk
To be frank, I never want ON the surface, Frank’s a nice old chap in his trusty old Renault Scenic. Fancies a change though and, at his age, who can blame him? Frank lived with me for a day here, a day there, until he finally took the plunge after the longest test-drive in history. Deposit paid and the process begins. Sadly, a few days later Frank has a change of heart and is really sad when I explain about deposits and contracts. Not to worry, I’ve seen something else you have. That might do the job, he says. Hmmm. Frank turns up again and gives me some cock and bull which I accept to a point but explain that really, you shouldn’t be entering into contracts without being sure. It’s not fair on the dealer and other potential customers, I explain. Frank looks at me puzzled as if there isn’t a problem and then goes on to explain if he wants to change his mind he can (which I agree with) and of course he should have his deposit back (which I don’t agree with). He then drops the bomb that this has happened six times recently and every time he has eventually got his deposit back and is still considering buying the car he
Picture of the month You’re more likely to find her aboard a motorcycle, but in the spirit of the new year, staff writer Laura swapped her wheels for something entirely different. After riding 1,800 miles to the Sahara on Honda’s new Africa Twin, she climbed astride this beige beauty (aka Simone) to venture into the desert. First ride impressions weren’t good, with Laura reporting the camel to be slow, uncomfortable and leaking strangely from the front end. However, while it won’t win any races, it was sure-footed on the sand. Unfortunately, the same can’t be said for Laura when she tried to take the Africa Twin into the dunes... first left a deposit on back in September! At this point I ask for my keys back and kindly ask him not to come back or contact me ever again. sparky
something was done about them. I hope Frank gets his money back and compensation for the massive inconvenience! metcars
Poor Frank, being ‘ripped off’ by the dodgy car dealer – typical! You know they buy those cars cheap because they’re all clocked/wrecks and sell them for 100 times what they cost. It’s about time
Wow, Frank certainly gets about a bit! He’s been to me several times this year alone, and in fact I think I’ve met every single member of his time-wasting family! Mikey
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to meet you again! Can anyone offer me any lemon aid? I was just wondering how you guys get rid of your lemons as they are costing me quite a lot at the moment and it’s very hard to swallow. Recently, I have been sending them back to the auctions but that hasn’t helped much. Shedding a light on this would be much appreciated. macffar
Baby surprised everyone after she was born at a Pennsylvania car dealership. @NBCNews Did the parents get a free car? @KorbelRenoKia
We’re probably all going to disagree, but in my opinion car auctions can be an expensive way out of anything. Personally, I prefer ebay, but with an ‘honest’ description. Bidders seem to love broken cars and fixer uppers and I’ve always managed to move stuff on. I don’t sell any of my stock on there, just my ‘mistakes’. I appreciate ebay has its own issues, nothing is perfect. metcars
Top tweets
Agree totally – all my sheds go on ebay auction. Start them off at £99 with no reserve if they are particularly unpleasant. You will get more than your fair share of people emailing, ‘I’ll give you £101 hard cash now!’ – just ignore them and watch the bids come in. Beautiful South Martin
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New £6m car showroom facility in Warrington for @thecarpeople progressing well and due to open April 2017. William Saunders @wmsaundersLLP Excited for the new @NissanUK #Micra? Us too! Wessex Garages @wessexgarages Made in Britain is a badge coveted by car buyers worldwide says @MikeHawesSMMT as UK car exports soar to record high. SMMT @SMMT
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DASHBOARD. ACQUISITION
CarShop to be bought by Sytner Group
FCA dragged back into Manufacturer faces $4.6bn fine after US agency takes action
F
CAR supermarket CarShop is to be bought by the Sytner Group, subject to undisclosed conditions. The award-winning business has retail sites in Cardiff, Doncaster, Northampton, Norwich and Swindon, with a vehicle preparation centre in Leighton Buzzard capable of reconditioning 45,000 vehicles a year. The company was established in 1999 and its leadership team will stay on as part of the acquisition, which is expected to be finalised by the end of this first quarter. The company won Used Car Supermarket of the Year at the Car Dealer Magazine Used Car Awards in both 2015 and 2016. Darren Edwards, managing director of the Sytner Group, said: ‘The acquisition of CarShop enables us to further expand and diversify our business into an exciting and growing sector of the market with a proven, highly successful operator. CarShop’s customer-focused and progressive approach fits well within our culture, and we look forward to working with the CarShop team to grow the business over the coming years.’ CarShop chief executive Jonathan Dunkley, pictured, said: ‘We are thrilled at the opportunity to join forces with Sytner to further develop and grow the CarShop brand. With our combined resources, we can leverage digital technology, further develop our people and deliver a world-class customer experience.’ Sytner is part of the international transportation services company Penske Automotive Group. 10 | CarDealerMag.co.uk
iat Chrysler Automobiles has once again been dragged into the emissions debate after a US environment agency found it didn’t disclose software that affects the polluting elements of its cars. The United States’ Environmental Protection Agency (EPA) issued a notice to FCA US regarding alleged violations of the Clean Air Act. It also said the manufacturer failed to show engine management software in Jeep Grand Cherokees from 2014, 2015 and 2016, as well as Dodge Ram 1500 trucks with 3.0-litre engines. FCA could now face a fine of $44,539 (£36,933) per vehicle for each of the 104,000 vehicles affected in the US, resulting in a total cost of $4.6bn (£3.8bn) to the company. The Dodge Ram isn’t sold here, but there are questions over the legality of the Jeep Grand Cherokee. The Department for Transport (DfT) has told its Market Surveillance
FCA EMISSIONS CRISIS: Q&A
by REBECCA CHAPLIN @BelieveBecca
Unit to carry out tests on one of the vehicles as soon as possible. Cynthia Giles, assistant administrator for the EPA’s office of enforcement and compliance assurance, said: ‘Failing to disclose software that affects emissions in a vehicle’s engine is a serious violation of the law, which can result in harmful pollution in the air we breathe. We continue to investigate the nature and impact of these devices. All automakers must play by the same rules, and we will continue to hold companies accountable that gain an unfair and illegal competitive advantage.’ FCA
What is FCA US being accused of? Using software to lower nitrous oxide levels in its cars under certain conditions. Doing so brings the emissions down, but these then revert to higher levels outside of those conditions.
US said it was ‘disappointed’ with the decision to issue a notice of violation, stating: ‘FCA US intends to work with the incoming administration to present its case and resolve this matter fairly and equitably and to assure the EPA and FCA US customers that the company’s diesel-powered vehicles meet all applicable regulatory requirements.’ This is not the start for FCA globally though, as there is also an issue with the European Commission regarding emissions. German transport minister Alexander Dobrindt has now escalated the issue, saying that FCA vehicles that break emissions rules should be taken off the market. This
What cars are affected? As it stands, just Jeep Grand Cherokees from 2014, 2015 and 2016 are affected in the UK, but Dodge Ram 1500 trucks with 3.0-litre engines are also being investigated in the US.
Rolls-Royce ‘not seeking assurances after EU vote’ bit.ly/rolls-107
emissions row has been an ongoing battle with the European Commission over ‘serious concerns’ that were raised about Fiat 500X emissions. German newspaper Bild am Sonntag reported Dobrindt as saying: ‘The Italian authorities have known for several months that Fiat, in the opinion of our experts, uses illegal shut-off devices.’ He was also reported as saying ‘Fiat has so far refused to participate in the clarification’ and therefore ‘must consequently ensure that a recall is organised for the Fiat vehicles,’ which would cover UK cars under EU legislation. A DfT spokesperson said: ‘We are pressing Fiat Chrysler UK for
more information about emissions from the 3,700 Jeep Grand Cherokee cars that have been registered in the UK. Our priority is to protect UK consumers and we have instructed our Market Surveillance Unit to undertake testing on one of these vehicles at the earliest opportunity.’ The spokesperson added that from September 1, the government will be bringing in laws on real driving emissions that should prevent a reoccurrence of such events. Italian deputy transport minister Riccardo Nencini said its government was co-operating with the European Commission, and that he found the German government’s stance ‘incomprehensible’. Commenting on the DfT investigation, an FCA spokesperson said: ‘The US and the EU are completely different markets, with different software calibrations, standards, testing and homologation processes. FCA vehicles sold in the EU conform to EU emission regulations.’
COMMENT
Who’s next to be caught in the scandal that won’t go away? IT’S more than a year since news of the Volkswagen emissions scandal broke, but new developments seem to roll out every week and remind us this isn’t going away anytime soon, writes Rebecca Chaplin. The FCA issue has been bubbling away under the surface, Germany has been fighting Italy on emission regulations for months, and problems with Mitsubishi, Renault and Vauxhall have also reached the surface. The revelations have proved that this is not going away, as legislators and law firms continue to probe the issue, and those lobbying for popularity in Parliament demand their 15 minutes in the spotlight. It’s also proved that no-one is safe. Fiat and Renault were some of the first to issue statements that there was no emissionfiddling software and we’ve seen
how that turned out. One thing’s for certain: the result will come down to how trusted your brand was before and how much cash it can afford to splash on legal fees. When words such as ‘lying’ and ‘cheats’ are thrown around in the press, it can mean absolutely everything to a company. Luckily for Volkswagen, it still seems to be in favour and it’s still in the black, but as its coffers are drained, you have to wonder how much more it can take. What about the case of Fiat Chrysler Automobiles? Well, when relatively few of its affected models are roaming UK roads, it’s unlikely to cause much of a stir, but we’ll have to wait and see whether there’s any backlash from the impact across the Atlantic. The biggest question on everybody’s lips, though, is who’s going to be next to be caught out?
‘We’ll have to see if there’s a backlash from the impact across the Atlantic’
High Court to hear application for litigation THOUSANDS of motorists in England and Wales have joined a lawsuit against Volkswagen that could cost the car manufacturer billions of pounds in the wake of the emissions scandal. Lawyers say owners and previous owners could be awarded an average of between £3,000 and £4,000 for affected vehicles, according to the Daily Mail. Volkswagen Group admitted in September 2015 that 482,000 of its diesel vehicles in the US were fitted with defeat device software to switch engines to a cleaner mode when they were being tested for emissions. The Wolfsburg-based company announced that 11 million vehicles were affected worldwide – including almost 1.2 million in the UK. The group legal action is the first in relation to the emissions scandal on behalf
How many cars are affected? The EPA says 104,000 vehicles are affected in the US, while the Department for Transport says that 3,700 Jeep Grand Cherokee cars registered in Britain could be implicated.
What is the government doing about it? The Department for Transport has told its Market Surveillance Unit to undertake testing of a vehicle. The government is also asking the EPA to provide additional information to work out whether FCA is guilty of any wrongdoing.
of customers in the UK. Damon Parker, head of litigation at Harcus Sinclair UK Ltd, said: ‘We have paved the way for consumers who trusted but were let down by VW, Audi, Seat and Skoda to seek redress through our courts. ‘It is only right that UK car owners affected by the scandal have the opportunity to seek compensation. We have secured funding so that those affected can bring this claim against VW at no cost to themselves.’ Harcus Sinclair is working with fellow law firm Slater and Gordon, and has set up a website – www.vwemissionsaction.com – for those interested in joining the lawsuit. To date, 10,000 individuals and a handful of small companies are part of the action. The application for the group litigation order will be heard in the High Court in London on January 30.
How much could it cost? So far, we only know how much FCA could be fined in the US – a total of $4.6bn (£3.8bn). The company is fined per car, so faces a far lower payout than the $18bn (£15bn) fine that Volkswagen in the US was issued with. CarDealerMag.co.uk | 11
DASHBOARD.
Another record year of registrations, but growth is over now
SMMT sales data
10
TOP
BEST-SELLING MANUFACTURERS OF 2016
After sales of 2.69m in 2016, market is ‘set to drop by 5-6 per cent’
R
ecord new car sales of 2.69 million – the fifth consecutive year of growth – were announced in January by the SMMT. The market has experienced uplifts in 10 out of the past 12 months, albeit finishing with a December down slightly by 1.1 per cent. A total of 178,022 new cars were registered in the month. Buyers were attracted by a range of new car models and attractive finance deals, pushing registrations up to 2,692,786 in 2016 – up 2.3 per cent on the previous year and broadly in line with industry expectations. Fleets were responsible for most of the growth, with demand growing to a record 1.38 million units. The private market remains at a historically high level, with more than 1.2 million private buyers registering a new car in 2016, although demand did fall over the latter three quarters. The competitive range of affordable finance is a crucial factor driving private demand as consumers are able to take advantage of low interest rates and flexible payment options. Diesel and petrol cars continued to be by far the most popular fuel types for consumers, with market share at 47.7 per cent and 49.0 per cent respectively. However, alternatively-fuelled vehicles (AFVs) experienced a strong uplift in demand, up 22.2 per cent across the year. At a special event in London, SMMT chief executive Mike Hawes briefed journalists ahead of the official release saying strong consumer confidence, affordable vehicles and competitive finance packages had pushed sales to a record high. However, he warned that growth would not
by JAMES BAGGOTT @CarDealerEd
continue in 2017 – predicting instead that sales would fall between five and six per cent this year. His prediction echoed the views of manufacturers and dealers who spoke at Car Dealer’s Automotive Influencers event in December. Hawes said: ‘Last year was an interesting one and undoubtedly a challenge, but 2.7m is an all-time record and beats the previous record set in 2015. That’s about a 2.2 per cent increase over the preceding year. ‘Invariably, what is driving those new car sales is that fundamentally, consumer confidence is very strong, despite the events of the last year.’ Superminis were the most popular models (however that segment was still down around eight per cent), closely followed by minis. Luxury cars were up significantly, as were crossovers. Hawes said that the increasing popularity of PCP and PCH finance packages drove demand as buyers looked at the monthly payment figures, rather than the cost overall. However, the SMMT is clear that the record highs will end this year. Hawes said: ‘We foresee the market being down by between five and six per cent at 2.54m to 2.55m car sales in 2017. ‘We’re not talking about a collapse in the market by any means. We are at unprecedented high levels. ‘There was latent demand for four or five very, very tough years during the recession. But we have to recognise that growth can’t be inexorable.’ Briefing in full, p14-15
Fiesta forever! Eight years topping sales charts THE FORD Fiesta was once again the best-selling car in the UK during 2016, amassing 120,525 registrations over the past 12 months. The small hatchback is now not only the bestselling car ever in the UK, but has remained at the top of the sales charts for eight consecutive years. Chairman and managing director of Ford of Britain Andy Barratt said: ‘More than 4.5 million Fiestas have been sold in the UK in 40 years, so the chances are that most of the population have been touched by the car. ‘It performs incredibly well to the private motorist, to the business driver and to some really 12 | CarDealerMag.co.uk
key business user segments – people like the NHS particularly love Fiesta and driving schools love it too. So many people have their first part of their motoring journey in a Fiesta and they continue that relationship.’
318,316
Ford
Vauxhall 250,955 Volkswagen 207,028 BMW 182,593 Audi 177,304 Mercedes-Benz 169,828 Nissan 152,525 Peugeot 98,529 Toyota 96,746 92,419
Hyundai
10
BOTTOM
WORST-SELLING MANUFACTURERS OF 2016
Abarth
3,966
Subaru
3,612
Infiniti
2,891
Bentley
1,948
Maserati
1,435
Aston Martin
906
Lotus
339
McLaren
18
Chevrolet
4
Chrysler
0
New Volvo sales consultants achieve industry qualifications bit.ly/volvo-107
Full-year figures for the whole of 2016 December 2016
Marque Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Dacia DS Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda McLaren Mercedes MG MINI Mitsubishi Nissan Peugeot Porsche Renault SEAT Skoda smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total
2016
276 292 107 11,319 128 15,066 0 0 2,653 1,891 580 3,929 20,741 3,294 5,625 78 2,520 813 3,788 4,967 750 5 150 2,111 18 10,220 367 7,383 1,059 10,628 5,753 1,264 6,058 3,348 5,657 848 174 330 2,264 4,642 17,074 15,634 3,736 55 427 178,022
% market share 0.16 0.16 0.06 6.36 0.07 8.46 0.00 0.00 1.49 1.06 0.33 2.21 11.65 1.85 3.16 0.04 1.42 0.46 2.13 2.79 0.42 0.00 0.08 1.19 0.01 5.74 0.21 4.15 0.59 5.97 3.23 0.71 3.40 1.88 3.18 0.48 0.10 0.19 1.27 2.61 9.59 8.78 2.10 0.03 0.24
10
TOP
SELLING CARS OF 2016
December 2015 2015
177 374 65 9,144 95 17,181 2 0 4,775 2,003 1,357 4,235 23,261 2,794 5,271 66 1,919 759 3,466 4,966 894 17 69 2,228 0 8,892 283 7,370 1,493 9,775 6,587 555 6,003 2,085 4,809 652 194 302 1,948 4,769 20,830 14,415 3,567 18 412 180,077
% market share 0.10 0.21 0.04 5.08 0.05 9.54 0.00 0.00 2.65 1.11 0.75 2.35 12.92 1.55 2.93 0.04 1.07 0.42 1.92 2.76 0.50 0.01 0.04 1.24 0.00 4.94 0.16 4.09 0.83 5.43 3.66 0.31 3.33 1.16 2.67 0.36 0.11 0.17 1.08 2.65 11.57 8.00 1.98 0.01 0.23
1 Ford Fiesta 120,525 2 Vauxhall Corsa 77,110 3 Ford Focus 70,545 4 VW Golf 69,492 5 Nissan Qashqai 62,682 6 Vauxhall Astra 60,719 7 VW Polo 54,448 8 Mini 48,328 9 Mercedes C Class 44,184 10 Audi A3 43,808
% change 55.93 -21.93 64.62 23.79 34.74 -12.31 0.00 0.00 -44.44 -5.59 -57.26 -7.23 -10.83 17.90 6.72 18.18 31.32 7.11 9.29 0.02 -16.11 -70.59 117.39 -5.25 0.00 14.93 29.68 0.18 -29.07 8.73 -12.66 127.75 0.92 60.58 17.63 30.06 -10.31 9.27 16.22 -2.66 -18.03 8.46 4.74 205.56 3.64 -1.14
2016
Whole year figures
3,966 4,881 906 177,304 1,948 182,593 4 0 62,991 26,499 15,898 60,581 318,316 59,106 92,419 2,891 34,822 14,090 89,364 79,534 13,915 339 1,435 46,609 18 169,828 4,192 68,984 18,237 152,525 98,529 13,097 85,102 47,456 80,372 12,020 4,444 3,612 38,167 96,746 250,955 207,028 46,696 825 3,542 2,692,786
% market share 0.15 0.18 0.03 6.58 0.07 6.78 0.00 0.00 2.34 0.98 0.59 2.25 11.82 2.19 3.43 0.11 1.29 0.52 3.32 2.95 0.52 0.01 0.05 1.73 0.00 6.31 0.16 2.56 0.68 5.66 3.66 0.49 3.16 1.76 2.98 0.45 0.17 0.13 1.42 3.59 9.32 7.69 1.73 0.03 0.13
2015
2,743 5,069 949 166,709 1,379 167,391 12 137 80,012 26,228 8,614 64,257 335,267 53,417 88,117 1,195 23,954 10,794 78,489 66,574 13,269 375 1,434 45,504 0 145,254 3,152 63,581 22,693 153,937 104,249 12,167 75,618 47,654 74,692 8,455 3,344 3,455 34,437 98,709 269,766 223,784 43,432 701 2,534 2,633,503
% market share 0.10 0.19 0.04 6.33 0.05 6.36 0.00 0.01 3.04 1.00 0.33 2.44 12.73 2.03 3.35 0.05 0.91 0.41 2.98 2.53 0.50 0.01 0.05 1.73 0.00 5.52 0.12 2.41 0.86 5.85 3.96 0.46 2.87 1.81 2.84 0.32 0.13 0.13 1.31 3.75 10.24 8.50 1.65 0.03 0.10
% change 44.59 -3.71 -4.53 6.36 41.26 9.08 -66.67 0.00 -21.27 1.03 84.56 -5.72 -5.06 10.65 4.88 141.92 45.37 30.54 13.86 19.47 4.87 -9.60 0.07 2.43 0.00 16.92 32.99 8.50 -19.64 -0.92 -5.49 7.64 12.54 -0.42 7.60 42.16 32.89 4.54 10.83 -1.99 -6.97 -7.49 7.52 17.69 39.78 2.25
Ups&downs +16.92% Year-on-year to December 2016
Mercedes-Benz
Citroen
-21.27% CarDealerMag.co.uk | 13
DASHBOARD.
Consumer confidence drove the market to its 2016 record JAMES BAGGOTT was one of a select group of journalists at a special SMMT briefing
DIESEL DISILLUSION
PRICE RISES
S
MMT chief executive Mike Hawes gave a select group of media representatives a special briefing on the 2016 new car sales figures ahead of their release. On these pages we can reveal what he told the media – including Car Dealer Magazine – in full. ‘In terms of the headlines, the market was very strong,’ Hawes confirmed. ‘It was the fifth consecutive year of growth. Looking at what’s behind that, invariably what is driving those new car sales is the fact that consumer confidence is very strong, despite the events of last year. ‘Vehicles are affordable, especially in terms of finance packages given low interest rates, hence the lower cost of finance. ‘Over three-quarters of all sales now have some form of finance, and in the private sector over 80 per cent tend now to be through some form of either PCP or contract hire. ‘Add to that, there’s a raft of new models. Something that shouldn’t be underestimated is that there are over 400 models on the market, so every niche imaginable is filled or has been filled not by one or two brands but by a number of different brands, so there is undoubtedly consumer choice there.’ Check out the panels on the right for Hawes’s thoughts on a variety of industry topics.
Mike Hawes: ‘There are over 400 models on the market’
14 | CarDealerMag.co.uk
“
In terms of what has traditionally been a split 50/50 between petrol and diesel, we have seen a slight reduction in the diesel market share, primarily going from diesel into alternatively-fuelled vehicles, pure electric, plug-in hybrids and the like, and again that’s the product of a purchaser that is maybe interested in fuel economy and new technologies. You tend to move one with the other, and that growth with plug-ins was a result of significant investment by manufacturers in a range of new models, which will give people the potential for the best of both worlds in electric driving potential in urban driving areas and also the petrol engine power for travel over longer distances.’’
“
The cost of the vehicles is affected by exchange rates. We have seen a reduction in the value of the pound, which to a certain extent helps exports. The new car market is over 80 per cent imported, so the cost of those imports is gradually going up and once they have resurfaced, the manufacturers hedge, so to a certain extent they are protected against some of the immediate currents and shifts. But ultimately that will flow through and the factories will absorb some of those additional costs, so when we are seeing some of these price rises of two or three per cent that is fairly typical to expect that. How that flows into ownership costs depends on how the market can sustain and continue the decreased cost of finance.’’
SALES GOING DOWN
“
The obvious question is – what happens with the market next year? We foresee the market being down by between five and six per cent, 2.54m to 2.55m, for car sales next year. The first point to make about that is that is historically a very high level. We’re not talking about a collapse in the market by any means. We are at unprecedented high levels. Part of the reason is that there has been a shift away from how a consumer purchases the vehicle. They no longer look at the sticker price; they look at the monthly cost of ownership over three or four years. That gives more stability for the market, as people who have a three- to four-year contract tend to move into another one as soon as their current contract is finished. Why will it drop? Well, obviously we have been growing for five years. There was latent demand for four or five very,
very tough years during the recession. We have to recognise that growth can’t be inexorable, so there is undoubtedly a levelling-off. What we saw over the last year was that private demand tended to decline over the course of the year: first quarter very strong, second quarter not too bad, second half of the year that invariably declined. Fortunately, it has been made up by strong fleet sales. You remember when we came out of the recession, it was private retail that helped to drive the market out of the recession. Fleet and businesses were slower coming out of the recession, so perhaps it took slightly longer in terms of taking up some of the demand.’’
Special sales offer to mark 10th anniversary of Qashqai bit.ly/Qashqai-107
IN BRIEF
Motorcycle sector has a good year too
COMMERCIAL VEHICLES
“
What we expect is a continuing of a strong market in terms of new cars and in terms of commercial vehicles. We don’t have the final figures on those, but that is looking like another record year. Again, as I said before, they were slower coming out with business, as you are seeing the results of a changing retail pattern which is especially driving van sales, and also we are seeing that continuing into 2017 – there is a commitment to public infrastructure projects over the next few years. It is not just diggers built and bought, commercial vehicles are as well and those projects will have an impact on commercial vehicle sales over the next few years. But again, we are seeing a reasonably strong market for the commercial vehicle sector.’’
SEGMENTATION
“
So we are looking at an all-time record market for the last year. Digging a bit deeper into how that is playing out in terms of segmentation, the biggest segment of the market is superminis. Although that was actually down around eight or nine per cent, it is still the biggest segment. The growth areas were what we call ‘minis’, the very small cars, they are up. Luxury premium vehicles were up, and of course crossovers, SUVs and so forth were up significantly. So that’s been following the pattern over the last few years, the shift away from the traditional family saloon into either slightly smaller cars or crossovers and luxury models in particular.’’
BREXIT IMPACT
“
Clearly we have not seen the full effect of Brexit as we remain within the European Union and will do, I would suspect, for at least another two years. What happens after that remains to be seen. So the strength of the market clearly does depend on maintaining a good economy, maintaining good working conditions, which will obviously flow through into ensuring that the cost in vehicles remains as competitive as it currently is. We don’t want to see tariffs. Those of you who were at the annual dinner heard us mention that the introduction of tariffs to imported cars could result in as much as a £1,500 increase for cars. That’s on the basis of the introduction of the 10 per cent tariff at factory gate and how that would flow through to the actual list price of the cars. That would obviously undermine the market and hopefully that will never happen, but what that does explore is the importance
of having the right trading conditions and the right business environment for the market. But overall the market is extremely strong. We are seeing that shift towards new technologies and that is something that has to be encouraged. I think in the UK we have the framework to encourage that shift. Invariably, we can make extensive strides in technologies and we’d still need that incentive and those encouragements that the government can provide to maintain that shift. But overall a very strong market in both new car and commercial vehicles. We expect sales to be slightly down by five or six per cent, but like I said that would still be at historically high levels, so the market is in particularly good shape.’’
MOTORCYCLE and scooter sales were up for 2016, according to figures released by the Motorcycle Industry Association. Total registrations for new motorcycles, scooters and mopeds rose by 11.7 per cent last year. A total of 128,644 new machines were registered between January and December, compared with 115,121 for 2015. Commuter-sized bikes (50-125cc) saw the largest rise, with nearly 40 per cent of all new bikes sold from this category. The most popular style of bike was ‘naked’, with 35,651 new registrations, followed by ‘scooter’ with 27,482 units. These are both styles that are popular with commuters, underlining a trend towards bikes bought for utility and commuter use. The leisure market also performed well, with the popularity of bikes aimed at adventure and trail riders accounting for nearly 20 per cent of the total new market. The rise in new registrations is reflected in the used market too, with the number of motorcycles and scooters licensed for the road at its highest for seven years.
Second highest sales figures at Rolls-Royce ROLLS-ROYCE Motor Cars enjoyed its second-highest annual sales result in the marque’s 113-year history, up six per cent on its 2015 results, and reaffirmed its commitment to the UK. A total of 4,011 cars were delivered to customers in more than 50 countries, demonstrating the brand’s strength and resilience in a year of challenging market conditions for luxury goods worldwide. The company recorded its highest-ever sales in key global markets, the highest of which was Europe (up 28 per cent).
Successful Skoda keeps up momentum SKODA is celebrating a record-breaking 2016 with best-ever annual new car registrations in the UK. As recorded in the figures published on page 13, a total of 80,372 cars were registered – up 7.6 per cent on 2015 (74,692), giving the brand a total UK market share of 2.98 per cent. Duncan Movassaghi, director of Skoda UK, said: ‘These figures demonstrate yet again the phenomenal momentum Skoda is enjoying in the UK.’
Rebecca Chaplin learns the techniques that help put Ford at the top of the sales charts CarDealerMag.co.uk | 15
DASHBOARD. FORD FEATURE
From academy to showroom – what it takes to be among best Rebecca Chaplin goes back to school to learn how to be a Ford dealer – and then it’s in at the deep end for her...
E
ver wondered what it takes to be one of the best car dealers in the UK? If we say being the best means selling the most new cars based on the figures on page 13, then it’s got to be Ford. You can have the best products in the world and the best offers, but to stay at the top you have to work hard. As someone who has only ever sold rusty cars worth less than £500 on eBay, I thought it was about time that I brushed up on my skills and found out just what it takes.
and outside it – on how to give the best retail experience. I’d challenge you to find two people more passionate about their work.
Day 1: Back to school
9.45: We’ve been divided into two teams and I’ll be starting with the group learning about the history of the brand, where the first question prompts us to think about what Ford means to them. As we circle the room a theme emerges: ‘My dad used to own one when I was a kid’, ‘I remember my mum had one’, ‘My first car was a Ford’, or ‘It’s all my family and I have ever owned’. It’s actually a bit overwhelming what an emotional connection these dealers have to the brand they represent.
8.50: I’ve just arrived in Daventry at Ford’s training centre – the Henry Ford Academy. I thought I had put any sort of formal education far behind me, but here I am like a nervous girl on the first day of school once again. Fortunately, there are plenty of other people in the same boat. It’s the last course of the year that Ford has managed to squeeze me on to for dealers who are new to the brand, where we’ll be learning about its history and core values. 9.00: I quickly find training consultants Matthew Warren and Alun Bartrum, who’ll be taking today’s sessions. Both have worked within the industry –
9.30: The day starts with one of the most dramatic classes I’ve ever taken part in. The whole room has been cast in a blue and purple light, a video showing all of the most enticing and exciting aspects of Ford’s brands begins, and a Focus RS and GT40 streak across the screen. I’m on the front row in the seminar theatre with my notebook and pen in hand, looking like the keenest person to attend this course.
10.00: Each has a favourite iconic car too, and most could identify the years they were launched – as proved in a quick quiz. I might think I’m fairly impartial to the brand but notorious Ford SportKa fan Jon Reay, who was supposed to be there purely to snap photos for the feature, can’t help getting involved. His tale is about his first car – you guessed it, that same model he would later destroy and devalue with fur for Bangers4Ben. If you thought there weren’t important questions to be answered in today’s classes, though, you’d be very wrong. To JReay’s delight, we’ve already discovered that the name Ka is actually pronounced like the ‘ca-’ in ‘cat’. Let that be an end to all arguments on the matter. 10.45: It’s now time to swap back and find out more about branding. ‘What does this have to do with what I’m selling on the shop floor?’ It’s definitely what I’m thinking, and I can see hints of it on the faces around me. But it’s the core of what Warren and Bartrum are trying to hammer home today – that the connotations of a brand can be good or they can be bad.
16 | CarDealerMag.co.uk
Chaplin’s impromptu coffee morning proves a hit 13.00: As someone with a really short attention span, this is the part of the day I’m least looking forward to… brand values. It’s where we find out about FordWorld, as there’s far more to Ford than just what goes on in the UK. I’m thinking that I’ve been here before, with so many companies who hand you a sheet of paper with their new code of conduct to read and then instantly forget. Actually, it’s time to learn about all the facets of Ford when it comes to protecting the future, ethical production and what sets this brand apart from all the others – and there’s more than you might expect to talk about. 14.30: The final session of the day. Now in the atrium are a Focus RS and white convertible Mustang, which stir quite of a lot of emotions for me about the brand. Here’s me thinking I’m all cold and emotionless when it comes to Fords, but I’d forgotten that I’d driven a model exactly the same as this (but in left-hand drive) from the west to the east coast of America. I could have saved myself a lot of money by hiring a Chevrolet Aveo, but I felt that everything that car represents needed to be part of my road trip. 14.40: We’ve been asked to work in teams and shuffle cards into what we think is highest to lowest for most economical cars, oldest concept cars, fastest cars and something else I can’t remember right now… What interests me more, though, is a conversation with the person next to me. I’ve
Henry Ford Academy’s ground floor houses a mock dealership, complete with the full Blue Oval line-up
clearly done an excellent job of concealing my identity today, as he asks me what dealership I’m from and how long I’ve been there. I could have lied but ’fess up instead and ask him why he became a Ford dealer. ‘Well, I was in there all of the time anyway. I was working in sales elsewhere but I’ve always loved Fords and I would be in and out constantly because I wanted the latest model. I went in one day with my CV, asked for a job and here I am.’ 15.20: As it turns out, Ford fan JReay is quite keen on the idea of representing the brand and talking about their products all day, but it’s me who will have to try to convert what I’ve learnt today into a real-life attitude about selling Fords when I take on the job for real…
Day 2: Into the fray
Soon to become the largest FordStore in Europe, this dealership just under the M3 near Southampton isn’t to be sniffed at. Hendy Ford
I’d asked him what would be an appropriate outfit for a saleswoman at Hendy (with my fingers crossed that I would get a Hendy-branded tie, but no such luck) and was told: ‘A warm coat, scarf, hat, gloves and boots, as you’ll be out with the sales team scraping the ice from the 100-plus cars on the forecourt for the first hour or so, getting prepped ready for the day’s sales.’ What had I let myself in for...?
Becca tries to blend in... Eastleigh is not only steeped in history as the first Ford franchise in the UK, but it’s also committed to continuing to offer the best service. And with high volumes and a lot of customers to please, it can be a tough job, as I’d soon find out. My contact for the day is Kevin Fisher, Ford franchise manager (west) at Hendy Group, and in advance I’d received a daunting email entitled: ‘Your day at Hendy Ford’.
8.45: I rush in – officially late as I’d forgotten how bad traffic out of Gosport and into Southampton can be – to be greeted by Andy Sheath, Hendy’s product genius for Ford. Sheath’s job is to try to narrow down the options for customers when they get on site, if they don’t already know what they want. There’s no selling at this stage, though. Self-taught Sheath will talk to customers about their needs and try to match them with the appropriate car. He notifies Fisher of my arrival and points me to the waiting area, where I make a beeline for the coffee machine. CarDealerMag.co.uk | 17
DASHBOARD. FORD FEATURE
Hendy’s expansive Eastleigh showroom is a sight to behold – and soon to grow even further 8.53: ‘Hi Rebecca, I’m Kevin. Nice to meet you, shall I show you around? I see you’ve found the coffee.’ I was probably one of the rudest employees they’ve ever had. Not only was I late on my first day, I was now helping myself to the customer refreshments. Remember your training, I thought to myself, trying to hide my embarrassment, but we hadn’t reached the meeting-and-greeting stage of how to be a Ford dealer, so I’d have to buck up my ideas and really focus today. 8.58: Fisher shows me round the site, which is incredibly vast. Currently, there are also Mazda and Kia franchises within the same building, plus what can only be described as a teepee outside within the sea of used Fords. However, a new site for the other two car brands is being built over the road, so soon it will be purely Ford cars and vans under this roof. 9.05: It might be early in the morning but already the inquiries team are swamped with emails to follow up. As a standard, inquiries should be followed up within an hour of being sent, so I’m told first thing in the morning is always extremely hectic. However, today is different. It’s the Wednesday before Black Friday and an email has been sent to everyone on Hendy’s customer database to let them know about the fantastic offers, prompting a flurry of requests from people for a partexchange price on their current car. 9.30: The Black Friday feeling is felt across the store. I meet Brendan Young, the sales manager for Ford, who’s just finished the sales meeting with his staff. He sits me down and shows me exactly how he can keep an eye on what the sales staff are doing at all times and how he manages to get the best out of them. He impresses on me the importance of contacting enough existing customers to inquire about whether they’d be interested in moving into a newer car. 18 | CarDealerMag.co.uk
Becca’s day includes a test drive, playing with an iPad, looking at a car – and looking serious 9.38: As we look through the sales figures I have to ask how much of a difference Mustang made in 2016, as this dealership is one of the lucky FordStores to stock them. As a FordStore, Hendy Eastleigh has a Mustang and Focus RS in the showroom, and it also sells Vignale products. Young explains that the impact was incredible, particularly on the type of customers coming into the showroom. ‘The way Mustang and RS has gone has been fantastic. We’ve had customers turning up in Aventadors that want to buy a Ford. ‘Now the hard work begins though, after the initial rush to buy Mustang and RS. The
‘The way Mustang and RS has gone has been fantastic. We’ve had customers turning up in Aventadors that want to buy a Ford.’
difference now is the waiting time, as the cars are all imported from America. Owners are prepared to wait for their Mustang but we still have to call them with an update even when there’s no news.’ 10.00: It’s still hands-on for Young, despite being in charge of a team of five sales execs, as today he’ll be removing all branding for their lowfinance deal in preparation for Black Friday and he’ll be getting all of the banners in place. He partners me up with sales executive Ben Butler, who’ll be showing me the ropes of sales here in Eastleigh. Butler has been at Hendy Group for 25 years and his wife has worked there longer, so he really knows the place inside out. 10.10: He’s dealing with an issue after a customer’s new car has arrived with a flat tyre. The customer is expecting the car to come in today, so Butler is keen to get this sorted and arrange the handover.
?
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
Auto Trader has launched Dealer Finance In November, the SMMT reported used car sales for Q3 up 7.9% on the same period last year, with a record 2.14 million used cars sold. The number of used cars purchased using finance from the dealership has been fairly static at around 25-30% for a number of years. Yet for new cars this proportion has increased year-after-year. So there’s a big difference between new car finance and used car finance - but that’s also a massive opportunity for growth. Great news for used car dealers, who can increase earnings from finance commission, and for car buyers as the range of finance packages on offer makes used cars more affordable than ever.
Every month we host dealer panels at our head office in Manchester, getting feedback and asking them what they want from us as a partner. One recurring question I hear is “How can Auto Trader help me to increase my own finance penetration?” Dealers earn commission on the finance packages they sell and a lot of dealers I speak to rely on the additional earnings this can generate. So we want to help used car dealers perform better with finance by making their offers more visible online. With this in mind - and after additional research with car buyers – Auto Trader has launched Dealer Finance. What is Dealer Finance? It does what it says on the tin. Dealer Finance allows dealers to present their own finance packages in monthly payments next to the price of the vehicle advertised for sale on Auto Trader. This will help them to sell more cars on finance by introducing potential buyers to finance availability earlier in the buying journey and thereby increasing their own finance penetration and commission earned as a result. Isn’t this a move by Auto Trader to provide finance themselves? It’s not Auto Trader Finance. As reported earlier this month we have no interest in
becoming a direct finance provider ourselves. The entire model is based on helping dealers win more business on finance whilst providing buyers with transparent PCP and PCH offers.
full list price. If you believe your vehicles and the finance packages you offer are both competitive, there’s no reason why you shouldn’t be converting the additional enquiries you receive.
How does it work? Dealer finance is powered by the dealer’s lender and the interest rates are chosen by the dealer. A monthly price is then displayed underneath the total price of the car on the advert. Car buyers can then interact with a finance calculator, choosing different deposits, terms and expected mileage, which then adjusts the monthly cost. Interested buyers then submit their finance enquiry, which goes direct to the dealer.
How will this help me be more transparent? Consumers expect transparent finance information 24/7 to help them compare the cost of different cars, and if you don’t give it to them they’ll go elsewhere to get it. You’ve done all the hard work in getting someone to select your vehicle out of the half a million for sale on Auto Trader, so once they are sitting in front of your car, keep them there. Make it easy for buyers to find everything they want at the point of purchase. Dealer Finance delivers the information consumers want early in the car buying process so that consumers are less likely to take finance out from another source.
How much will you charge me for this? It’s free for the next 12 months. “Ahh, so then I have to pay for it?” I hear you say. Well you’ll be able to test if it works for you and at the end of next year work out if it’s worth investing in. How many cars do you currently sell per month with your own finance package? What does this generate in commission for you? If Dealer Finance means you generate more finance enquiries then obviously there’s a value to it. In September’s Market Report we found that 67% of car buyers who purchased using finance from the dealership spent more compared to buyers who purchased cars at
What’s next? Next year we will test giving your finance offerings even more prominence by looking at incorporating monthly budget into search, so watch this space. What do I need to do to get the Dealer Finance product? You just need to be FCA authorised, that’s it! Inform your account manager and they’ll do the rest.
For more information and support please visit trade.autotrader.co.uk/dealer-finance For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter
CarDealerMag.co.uk | 19
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DASHBOARD. FORD FEATURE 10.30: Those in charge of parts are already well under way with the fix – a new tyre has been ordered and will be swapped over before you know it. That puts Butler’s mind at ease, but he won’t call the customer until he knows for sure that he can give him the car. 11.30: A customer has called up and asked if she can come in for some help with setting up her new phone on her car. ‘I know it’s a bit lazy but I just couldn’t work it out and hoped you could show me!’ she says to Butler, who points her in the direction of Sheath. Out in the car park Sheath has sorted the problem in a matter of minutes. He tells me: ‘We’re happy for people to come back again and again, because we want to make sure they understand everything on the car.’ 14.00: Butler gets confirmation that a Focus that was damaged is now perfect and ready to go to its new home, so he calls the customer. The customer is pretty laid back about it and will arrive about 4pm, which gives me an opportunity to learn about the art of the test drive. 14.38: Sheath lets me try out the new Ford Edge. With the new product geniuses at Ford, they take on all of the educating stages and only pass the customer on to a salesperson when they’re ready to buy. They’ve seen this improve relationships with customers because they’re more relaxed about getting the information they need.
NEW FIESTA
Looking to build on 40-year strength of the current car THE next big seller from Ford has been unveiled and the brand thinks it’s on to something, calling the new Fiesta the most technologically advanced small car ever. There’s been a long wait for an updated version of the most popular car in the UK and Ford has thrown everything at it. The next-generation car is the first Ford to get pedestrian detection and active park assist with braking intervention. Advanced driver-assistance technologies are supported by two cameras, three radars and 12 ultrasonic sensors, which in combination are able to monitor 360 degrees around the vehicle and scan the road ahead up to a distance of 130 metres – more than the length of a football pitch. It’ll be available with a 1.0-litre EcoBoost petrol engine, producing 99, 123 or 138bhp,
or Ford’s first high-powered diesel engine, making 118bhp from the 1.5-litre TDCi engine. Chairman and managing director at Ford of Britain Andy Barratt, pictured, is feeling confident, telling Car Dealer: ‘I think you’ll see Fiesta really cement its position at the top of the charts and it’ll just continue to build on the success of the current car. ‘I think it’ll build on the incredible 40-year strength of the current car, not just because it’s great in terms of the way they sell it on a PCP. It’s just got universal appeal, and with the new vehicle we have effectively four variants in terms of the way we are going about the market, including the Active Series and the Vignale. The appeal and the technology, the level of colour defines them, to the B-segment and the supermini segment – I think it’s going to be a runaway success.’
15.50: As we return to the showroom, Butler’s Focus customer arrives and we sit down to go through the deal once more and confirm everything is in place with his finance and partexchange. Once he’s happy, Butler and I have one more inspection of his current car. 16.30: Then it’s time for the unveil, as the happy customer gets to see his new Ford Focus for the first time. We walk through the controls of the car with him, and with the keys in his hand, belongings in his car, he’s ready to drive away. So my initiation into how Ford dealers are trained and operate comes to an end. It’s been an exhausting two days but utterly illuminating. As I head off from the dealership, reflecting on how much I’ve learnt, I can’t help but marvel at the passion of everyone there and their attention to detail, not to mention their sheer hard slog to ensure that not only is the customer kept satisfied but that Ford stays on top of its game. [CD]
ICONIC FIESTAS
Supersport
(1980) This was the first performance Fiesta. It used the Escort Sport’s 1.3 engine and accessories from the Series X catalogue.
XR2
(1983) Borrowing the Escort XR3’s engine, the XR2 was the first proper Fiesta hot hatch. Almost half of all the Mk2s sold were XR2 models.
RS Turbo
(1990) The smallest car to wear the iconic RS badge, the RS Turbo symbolised the early ’90s, with classic threespoke wheels and bonnet vents.
ST
(2005) After a lull in performance models, the ST brought the Fiesta back up to speed with a 147bhp engine and became an instant hit.
ST200
(2016) Celebrating 40 years of the Fiesta, the ST200 comes in a unique Storm Grey colour and produces up to 212bhp with an overboost.
The wraps are taken off the Ford Focus CarDealerMag.co.uk | 21
DASHBOARD.
Don’t get into trouble with HMRC, warns Dragon2000 bit.ly/HMRC-107
James Litton TRADER TALES
Making the most of the internet of things
T
Dealer group boss awarded an OBE Jennings Group chief Nas Khan ‘humbled and honoured’
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leading north-east car dealer boss has been honoured for his charity work and contribution to the economy with an OBE in the Queen’s New Year Honours list. Nas Khan, above, owner and managing director of Jennings Motor Group, which operates Ford, Kia, Mazda, Seat and Mitsubishi branches in addition to two Harley-Davidson dealerships and a Subway store, is also the founder of the Emaan Foundation charity. He said: ‘I am very humbled and honoured. I really didn’t expect it. ‘I’m extremely grateful for the recognition, but that isn’t why I do what I do. I’ve had a wonderful life and achieved much more than I ever thought I could. There are so many people who have helped me.’ In 2010, Khan, from Stockton in Teesside, launched an appeal to help save and rebuild the lives of people in his native land of Pakistan, following devastating floods. Raising £120,000 not only provided essential life-saving aid in the immediate aftermath of the disaster, but it also financed the construction of a new village consisting of 60 homes, including livestock and fresh water for the people of Rahim Yar Khan. Not resting on his laurels, in 2015 the philanthropic MD launched a second appeal to build a health centre for the people of the village, which has now been officially named ‘The Emaan 22 | CarDealerMag.co.uk
by ANDREW EVANS @snavEwerdnA
Village’. Fundraising for the appeal currently stands at £20,000. In addition to raising funds for the Emaan Foundation, Khan is also committed to local charities. For the past 18 years, the Salvation Army has received support with its annual Christmas present appeal, while Teesside Hospice and the Great North Air Ambulance are the company’s nominated good causes. As owner and managing director of multi-award-winning Jennings Motor Group, Khan is responsible for 513 members of staff across the company’s north-east and West Yorkshire-based branch network. He said: ‘These are very busy, but extremely exciting, times for Jennings Motor Group with a number of expansion and investment plans coming to fruition and many more future projects to look forward to.’
‘I’m extremely grateful for the recognition, but that isn’t why I do what I do. I’ve had a wonderful life.’
here are very few benefits of a 150-mile round trip commute, but catching up on a number of different podcasts is definitely one. Amongst trying to learn French and a number of sports podcasts are various business news shows. A consistent theme over the last few months has been the so called ‘internet of things’ and ‘big data’. For those who do not get the luxury of daily three-hour car journeys, ‘the internet of things’ is defined by Google as ‘a proposed development of the internet in which everyday objects have network connectivity allowing them to send and receive data’. This concept is evident in many home appliances. You can set your heating remotely, schedule your television programmes, and even sit in a hotel room on the other side of the world and watch your own living room through connected security cameras. Many car manufacturers have been working towards complete connectivity and by 2018, all new cars sold in Europe must have eCall technology, the ability for a car or driver to report an accident using a vehicle-based SIM card. Firstly, as an industry, we need to make sure we have completely secure networks. Politicians and media groups love taking aim at the motor industry and news of data breaches or hackers getting into car operating systems would be public-relations disasters. However, the internet of things and big data promise a lot more customer and commercial benefits than rescuing you from a motorway ditch. If your car tracks your driving habits, the roads you drive on and the times of the day that you drive, it could be possible for insurance companies to use algorithms to reduce (or perhaps increase) your annual premiums. If our dealer management systems are synchronised with our finance providers, you could establish a very accurate vehicle value, settlement figure and new finance quote at the flick of a switch. Dealers need to be ready for a behavioural change. Some manufacturers offer their customers many remote services today, but engagement from the networks is weak and therefore customer communication is limited. In order to capitalise on the endless opportunities that the internet of things provides, car manufacturers need to be open-minded about how data is shared and overcome privacy obstacles by giving more customer value than the cost of their data.
‘Dealers need to be ready for a behavioural change.’
Who is James Litton? James is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves.
CarDealerMag.co.uk | 23
DASHBOARD. DETROIT MOTOR SHOW SPECIAL
Stars from Motor City There are few places in the world as closely linked to the automotive industry as Detroit. JAMES BAGGOTT travels to America to report from the year’s first big motor show
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etroit – the spiritual home of the American car industry – this year played host to a resurgent North American International Auto Show. Much like the city that surrounds it, the halls of the year’s first big new model showcase felt more upbeat and positive than they did a few years ago. Just as you’d expect from an American motor show, the emphasis was on big – and we’re not just talking about the dinner portions. Audi, BMW, Lexus and Kia all revealed behemoths that’ll dwarf the usual UK car choices. Here, we take a closer look at those new car offerings from Motor City.
Mercedes E Class Coupe, GLA & GT C
Much like quantum physics, Mercedes’ line-up is becoming increasingly impossible to fathom. And if you needed an example of that, take a look at the new GT C, unveiled in Detroit. This is the coupe version of the GT C Roadster that we’ve already seen, and slots between the GT S and GT R. Put simply – if that is even possible – the ‘base’ GT comes with 469bhp, the GT S 515bhp, the GT C gets 549bhp and the range-topping GT R has 577bhp. Confused? Yes, us too. Fortunately, the E Class Coupe is far less complicated. Priced from £40,135, it’ll be available in the UK exclusively in AMG Line trim. Meanwhile, Mercedes has also rubbed a flannel over its GLA, adding tweaked bumpers, a new grille and fresh alloys.
Infiniti QX50
Think of this concept car as a rival to Audi’s Q5 and you’ll get some idea of where the Japanese manufacturer is aiming its efforts. The QX50 sits above the QX30 and will catapult the brand into the SUV sales heartland. Few details on the car’s powertrain have been released, but we do know it could feature the brand’s VC-Turbo variable compression ratio engine. That lump is said to offer the torque and economy of a diesel, but the outright power of a petrol. More important, though, are the looks – the QX50 is far more production-ready than the QX Sport Inspiration concept on which it is based.
Mercedes GLA Mercedes E Class Coupe
Mercedes GT C
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VW ID Buzz Concept VW Tiguan Allspace Audi SQ5
Audi Q8
Lexus LS500
With a mouth to rival Julia Roberts and a grille that would take many months to clean, the imposing Lexus LS500 is the Japanese brand’s new flagship. Taking aim at the BMW 7 Series and Mercedes S-Class, the bold Lexus features a new 409bhp 3.5-litre twin-turbocharged V6. As you’d imagine, it’s packed with clever technology and features a luxurious interior to keep its intended executive travellers comfortable. What’s more, at more than five metres long– 5,235mm to be exact – it’s got all the space you’ll need to relax and recline inside. It’ll arrive at the end of this year.
Audi Q8 & SQ5
Ironically named after the country you’ll need a mainline of fuel from to keep it going, the Audi Q8 took up, quite literally, most of the Audi stage. This concept features a 3.0-litre TFSI plug-in hybrid powertrain, producing 443bhp, but expect it to have a whole range of engines when it arrives next year. Design features include a snazzy rear brake light which extends across the rear and incorporates the indicators. Arriving a little sooner, though, will be the SQ5. This will feature a 349bhp V6 which will power it to 60mph in a fraction over five seconds. Costing £52,300, it arrives in the UK in April.
BMW 550i
BMW M760i
VW Tiguan Allspace & ID Buzz Concept
Volkswagen must have thought about the name for its new seven-seat Tiguan for all of 37 seconds before coming up with the ‘Allspace’ moniker. But don’t let that put you off, as the Skoda Kodiaq-alike mid-sized SUV is longer and larger than the standard model. An extra row of seats has been squeezed into the boot and there’ll be a revised range of engines to pick from, including a 145bhp 1.4-litre TSI and 2.0-litre diesel. Meanwhile, VW treated us to yet another microbus concept. You may be thinking, along with the rest of the world, why it hasn’t just got on with making it. Sadly, we can’t answer that, but we do know that this time it’s materialised in eight-seat, four-wheel-drive, all-electric guise. Oh, and just in case VW hadn’t ticked off all the buzzwords, it’s autonomous too. Of course it is. Your guess is as good as ours as to whether the ID Buzz will ever make production.
Kia Stinger GT BMW M760i & BMW 550i
One’s coming to the UK, the other we wished was. BMW had its petrol-depleting models out in force in Detroit, including the soon-to-be-UK-bound M760i. The Germans say it’s the fastest car to hit 60mph that they’ve ever produced – dispatching the dash in just 3.4 seconds – and if it weren’t restricted to 155mph, they say it would top 200mph. Orders are being taken now and it arrives in February. Sadly, the 550i won’t follow. Designed with Americans in mind, it features a 4.4-litre V8 twin turbo 456bhp engine which propels it to 60mph in under four seconds. Thankfully, we won’t have to wait long for its bigger brother, the M5, which the UK will be getting.
This is Kia’s sports saloon – or sedan, as they awkwardly refer to it in the States. It’s big (think Audi A7 in size) and powerful too. Under the bonnet is a 3.3-litre, twin turbo V6 which will propel it past 60mph in just over five seconds and on to a top speed of 167mph. Kia’s performance chief, headhunted from the top of BMW’s M division, Albert Biermann, said: ‘After driving the Stinger, you’ll never look at Kia the same again.’ It’s rumoured to cost more than £40,000 when it arrives in the UK in October.
Turn the page for more news on the Kia Stinger GT
Kia Stinger GT CarDealerMag.co.uk | 25
DASHBOARD. DETROIT MOTOR SHOW SPECIAL
Kia unveils Stinger GT sports saloon in Detroit – a car for former Saab buyers
Rivals
Kia performance boss – and former BMW M man – Albert Biermann says main rivals to the Stinger GT will be the BMW 4 Series and Audi A5.
It’s a ‘wholly different animal’ from the Korean manufacturer, aimed at delivering luxury and exclusivity. JAMES BAGGOTT reports
V8 option
Car Dealer quizzed Biermann on whether there would be a V8 option or an estate – and he refused to rule out either. ‘This is just the start,’ he said.
K
ia has revealed its most powerful sports saloon car ever – the Stinger GT – a car it believes will offer former Saab buyers the chance to be different again. The five-seat fastback sports saloon – unveiled at the North American International Auto Show in Detroit – will arrive in the UK with a twin turbocharged 3.3-litre V6 engine, producing 365bhp. Kia says the car will crack 60mph in around five seconds, have a top speed of 167mph and feature an eight-speed gearbox and rear-wheel drive when it goes on sale here in October. But the manufacturer says it isn’t targeting the obvious rivals from BMW, Audi or Mercedes –
26 | CarDealerMag.co.uk
instead it believes the Stinger GT will be the sort of car former Saab buyers might buy. A spokesman said: ‘This is a car for buyers who want something different – the anti-German brigade who used to buy Saabs. ‘Doctors, accountants, architects, those people who want individual styling, a larger car and value for money.’ Saab stopped selling cars when it went bankrupt in 2011. It was bought by a ChineseSwedish investment group in 2012 which promised to restart production, but that hasn’t happened. It traditionally sold in low volumes to buyers looking for an alternative to the mainstream offerings.
Kia doesn’t expect to sell huge volumes of the Stinger GT in the UK either – the spokesman said 1,500-2,000 a year would be a huge success. ‘America will be the largest market for this car,’ added the spokesman. The Stinger GT is a direct evolution of the concept car that first debuted at the Frankfurt Motor Show in 2011, penned by Kia chief design officer Peter Schreyer. Featuring four oval exhaust pipes, wheel arch gills, an integrated rear diffuser, LED headlamps and Kia’s signature ‘tiger nose’, the Stinger GT certainly has those sporty looks. And with former BMW man Albert Biermann behind the chassis, which has been honed on the
Sports brand
Biermann believes there is no need for a performance sub-brand like Hyundai’s ‘N’ models. Instead he thinks the GT moniker works perfectly well.
Production
Production of the Stinger GT will begin in July in Korea – with the first deliveries expected later this year.
Handling
Biermann said he is slowly working on making all Kias handle even better. ‘We are on the way to making all Kias great-handling cars – they are getting better all the time,’ he said.
Nurburgring, performance is at its core. He said: ‘I think, for the Kia brand, the Stinger is like a special event because nobody expects such a car, not just the way it looks but also the way it drives. It’s a wholly different animal.’ A 2.0-litre turbocharged four-cylinder engine will also be available in the Stinger GT, producing 255bhp. However, this is not coming to the UK – well, not just yet anyway. ‘The Stinger GT is a car for performance saloon enthusiasts who might have bought one from the likes of Ford or Vauxhall in the past but were put off by the fact they were produced by manufacturers selling 350,000 cars a year,’ added the spokesman. ‘This will be imposing, more individual, luxurious and exclusive.’
Kia chief design officer Peter Schreyer
Kia design boss looking to his next major challenge KIA chief design officer Peter Schreyer says that despite completely transforming the look of the brand in the last 10 years his job is not done yet. Speaking at the unveiling of the firm’s new Stinger – a car he has personally wanted to see made for years – he said that although Kia’s look has been refreshed, there are still challenges for him to tackle. ‘My job will never be done,’ he said. ‘With Kia, and since I’ve been there more than 10 years, the perception of the brand has really changed a lot. If you look at the product range it is very different now. ‘But you always need to stay hungry – and now I have the challenge of Hyundai, and Kia, and Genesis, and this is another level for me, to develop all that. Genesis is a unique job and a challenging job to develop that as a brand – it’s something I’m looking forward to.’ Speaking about the Stinger, the brand’s new high-performance sports saloon, Schreyer said he was in the mood for partying after finally seeing it unveiled. ‘Today I am so happy that we have this,’ he said. ‘I wouldn’t like to say we won the battle because it was a battle not against someone who didn’t want to do it – they did. ‘From the beginning, the management of the company was happy and convinced by the car so it was a matter of calculation and to make a business case and then decide to actually do it. We had to look to see if we had the technology and so on to make it work. ‘I remember in so many presentations that even though they were serious discussions they still did so with big smiles on their faces. ‘At one point we did a model in this red colour [the launch model] and forever after that they never spoke of the codename for the car – the CK – they instead spoke about the ‘‘red car’’. Everyone was convinced, happy and optimistic by it.’ Now the Stinger has been shown off, Schreyer is turning his mind to his next big tasks – and it’s the developing global markets that are getting most of his attention. He said: ‘Kia is expanding into the Chinese market – that’s a challenge – and we have to get a foothold there. ‘And then there’s India too. Kia is a global company and there’s a lot of things we need to work on to make that a success. There are lots of little bits here and there to do now.’ [CD] CarDealerMag.co.uk | 27
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DASHBOARD.
Manufacturers offer online sales plus home delivery Hyundai and Smart buying processes can now be done entirely on the internet
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ustomers who choose to buy a Hyundai or Smart car can now do so from the comfort of their own homes and have it delivered to their door. Both manufacturers have launched new websites that take customers from the start to finish of the buying process, called Click to Buy and smartcarsonline.co.uk. Currently the Hyundai i10, i20, i30, Tucson and Santa Fe are available to order on Click to Buy; while on the Smart website, pre-configured ForTwo and ForFour models are ready for people to purchase. Although both websites allow customers to buy cars online, they are very different offerings. Smart’s website gives a quick turnaround, with a new car delivered to a buyer’s door in as few as 12 days. Customers
will only have the option to buy on finance, which is broken down into three options, and once they are approved, they are guided through the simple buying process. Hyundai’s offering includes the option to trade in your existing car and the choice for customers to pay cash if they prefer, although there is still the option to finance your new car. The websites also give car buyers the choice of collecting from a dealership or having the vehicle delivered to their home. Head of Smart in the UK Krishan Bodhani said: ‘Almost anything can be bought online now and we’re delighted to offer
this option to our customers when purchasing their Smart. It’s really easy to do and is extremely time-efficient, enabling a customer to make a reservation, fill in a credit application and sign a contract at a time and place that works for them.’ Tony Whitehorn, President and CEO of Hyundai UK, said: ‘I’m incredibly excited to launch ‘‘Click To Buy’’. The site is simple, intuitive and importantly can save customers valuable time. This is a pivotal time for the car industry as a whole and the start of what I think will be a transformative period in terms of how people buy and own cars.’
TECHNOLOGY
13 EVs on the way from Ford FORD is to produce 13 new electrified vehicles in the next five years, including a fully electric SUV with a range of 300 miles. The company has also confirmed that it will produce a plug-in hybrid Transit Custom and hybrid versions of the Mustang and F-150, although the Mustang and F-150 will only be for the US. A plug-in hybrid version of the Transit Custom will arrive in the UK in 2019, and the firm has promised that its hybrid utility vehicles will combine EcoBoost turbocharged engines with electric motors. The as-yet-unnamed electric SUV, meanwhile, will arrive in 2020 and is described by the company as ‘small’, suggesting that it may be the replacement for the Nissan Jukerivalling EcoSport.
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CarDealerMag.co.uk | 29
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LIVERPOOL: Peugeot dealership Robins & Day is undergoing a £1 million makeover. After the fivemonth revamp, which started in January, the Mill Lane showroom will feature a new ‘Blue Box’ façade and a modern, spacious interior. Dealer principal Steven Bellis said: ‘We continually strive to improve the level of products and services, and the investment in the refurbishment highlights our commitment to giving our customers the best possible experience.’ The dealership will stay open throughout the project.
Five-month revamp starts at dealership
LEEDS: Lookers Nissan has officially opened the doors on a £1 million, state-of-the-art, retail location. The refurbishment of the showroom in Kirkstall Road represents a significant investment by Lookers and was officially opened with a gala event. Colin Pybus, franchise director for Lookers Nissan, said: ‘This new showroom showcases our commitment to Leeds, the surrounding area and Yorkshire as a whole. It also represents our confidence in the national marketplace and shows the commitment of local consumers to our level of customer care and the Nissan brand.’
Lookers opens £1m refurbished showroom
What’s been hitting the headlines on the home front? Here’s a round-up of stories
NORTH YORKS: A well-known car dealer in Selby has retired after a 57-year career. Seventy-twoyear-old Mick Trueman started his working life as an indentured apprentice mechanic after leaving school in Scarborough, and sold cars in Selby for more than 30 years. After his apprenticeship he worked for Leedhams in York and later had a repair garage and car sales in Haxby, The York Press reported. Trueman has been at his present site in Station Road, Selby, for 14 years and told the paper: ‘I will miss many of my customers who I have dealt with for many years.’
Dealer retires after 57 years in the business
GATESHEAD: Jennings Ford’s Transit Centre has strengthened its sales team, with Gregg Gilhespy joining the Eslington Park dealership. Since leaving Argyle House School in Sunderland more than 20 years ago, Gilhespy has gained valuable experience and knowledge in new and used car sales for motor dealers across the region. That was until he fancied a change from selling cars. He said: ‘I haven’t had any experience on the commercial side of the motoring business, so I was delighted to secure a position in that field at Jennings Ford’s Transit Centre.’
Gregg jumps from cars to commercial
News from around the UK DASHBOARD.
CarDealerMag.co.uk | 31
CAERLEON: The team at Ponthir Honda welcomed residents to the showroom in Ponthir Road for a slice of cake or two in December in aid of Macmillan as part of a belated contribution to the cancer charity’s World’s Biggest Coffee Morning. Sales executive Katrina Taylour-Cantrill said: ‘We raised £131, which we are absolutely delighted about, beating our total of £115 from 2015! This year, we really upped our game. We would like to thank our local community who joined us to achieve our total and especially our customers who are always very supportive.’
Belated coffee morning helps charity
WOLVERHAMPTON: Brindley Wolverhampton has relocated to a new state-of-the-art Volvo dealership in West Street as part of a £1 million investment and recruited a new sales manager, product specialist and local business specialist. Kal Plaha kick-started the recruitment drive, joining as local business specialist. Brindley also recruited James Harris as product specialist to guide customers through the buying and ownership experience, and after 12 years of service at Brindley Volvo, starting as a sales consultant, David Gutteridge is the new general sales manager.
Relocation sees three new recruits
CANNOCK: Renault Retail Group honoured its longest-serving staff at a special event celebrating the commitment of those who have been with the company for more than 25 years. Held at Renault Cannock, it recognised the dedication of 31 members of staff who together have worked for Renault Retail Group for an astounding 1,006 years. Each member of staff was given a commemorative award and silver cutlery set by group managing director Barry Jones. The longest-serving staff member was Philip Jackson, who has been at the Manchester branch for 41 years.
Staff notch up 1,006 years of service
Taylor Swift is a Mitsubishi Christmas hit! UXBRIDGE: Taylor Swift was the 2016 Christmas number one — for an Uxbridge Mitsubishi dealership. Sharing the same name as the globally famous songstress — and with birthdays spookily only four days apart — Swift, 23, is SMC Mitsubishi’s top salesman. He has worked for SMC in Long Lane, Hillingdon, for just over two years and said: ‘It’s kind of a running joke about my name being exactly the same as one of the world’s most famous female singers. But there’s no Bad Blood.’
Ex-Transit plant site set for JLR future SOUTHAMPTON: Inchcape has submitted a planning application for a new Jaguar Land Rover dealership on the defunct Ford Transit plant in Southampton. The proposal reveals that the showroom will accommodate 18 new cars, while the workshop will have 27 bays. Outside, there will be space for 159 used Jaguars and Land Rovers. Inchcape-owned Hunters Land Rover has a dealership in The Avenue in Southampton but it is expected to relocate to the larger site. The Transit factory closed in 2013 with the loss of 500 jobs.
LONDON: Luxury dealer group H.R. Owen partnered with premium champagne brand Armand de Brignac for a tasting event that saw two Rolls-Royces sold with their boots stuffed with bubbly. More than 40 VIP guests were among the first people to preview the rare and newly released Blanc de Noirs Assemblage Two. Armand de Brignac chief executive Sebastien Besson said he would fill the boots of both Rolls-Royces bought at the tasting with the iconic champagne, and more than £30,000-worth of fizz ended up being stacked in the Ghost Black Badge and Wraith.
Rolls-Royce boots are stuffed with rare fizz
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DASHBOARD.
Preparation is key if we’re to stop behaving like winter numpties T
he world of winter driving has been put into a new perspective for me this week. As the frost has set in (finally) here on the south coast of England, I’ve seen some truly brilliant demonstrations of how not to treat your car during the winter months. The other day, as I was walking to work, I thought I could hear a generator running really badly. It was just before eight in the morning, which seemed like a strange time for someone to be making loads of noise. As I turned the corner, I realised it was a Renault Clio scraping all useful life out of its windscreen wipers. The engine was on and the doors were open but there was no-one to be seen – and the windscreen wipers were working away on a completely frozen window – producing a racket that could cut through your soul. Another example of people missing their common sense chip and an absolute classic sight at this time of year is those people who jump in their car without warming it up. Or even better, those who drive off while it’s still covered in ice – occasionally with a tiny clear patch directly in front of the driver’s face. Not only a dreadful way to care for a car but stupidly dangerous too. Why is it that people are conscientious about their vehicles when they can actually see something going wrong but will live in blissful ignorance until then? It seems to be a human trait – we find it hard to think about anything until it actually becomes a problem. The irony is that as soon as there’s some slush on the road, we’re told to pack a shovel, blanket and biscuits in case an emergency midnight snack is needed or we suddenly need to bury a body for some reason. I got to see an extreme example of poor winter planning first-hand recently, in a situation that reminded me of the phrase ‘all the gear, no idea’. This is on a slightly bigger scale than your typical icy car debacle. I was supposed to be flying home from Croatia and it snowed. I don’t know how much you know about the weather in Croatia or flying there, but at this time of year no-one is particularly interested in visiting because it’s freezing – so there aren’t many planes. And, although it’s
Rebecca
cold, it doesn’t often snow. My day – the second day of a new car launch – had started well. I was up early and had got all my work done, only to open my curtains and see a snow storm outside the window. There would be no driving for us that day and we were instead shuffled on to a coach. Trying again and again to scale the hill outside the hotel was a fuel tanker that, despite wearing snow chains, could not work out how to do it. Eventually he backed out of the way and our coach breezed smugly past. We thought that would be the last of the snow-related drama of the day since we’d been advised the airport was fairly sheltered by the hills. We were swiftly checked in and, not long after that, we were on the plane, but once aboard, everything fell apart. ‘Hello ladies and gentlemen, this is your captain speaking. Things are looking up as the sun is now coming
Chaplin ‘We cope really, really THE VIEW FROM BEHIND THE SCENES
badly but we’re not alone in that . . .’
out and the snow is starting to melt,’ we were told. ‘However, the staff here at Dubrovnik airport have informed me that the de-icer machine is not working and we cannot get hold of the man who operates the air-start machine over the radio.’ The de-icer machine is not working? Were we ever going to leave this place then? You see, in Dubrovnik, it hasn’t properly snowed since 2009 and, despite the weather warnings that had been issued beforehand, they had decided to not brush up on how to operate the machines. We then waited for almost two hours while they deciphered the manual and eventually managed to defrost the plane and get it started. If nothing else, this reassured me slightly about the way we cope with snow in this country. True – we cope really, really badly but we’re not alone in that. So thinking back to the numpty motorists I seem to notice every day at the moment, I’d advise you to sell more winter health checks and tell your customers how to defrost their cars. Most importantly, always be prepared.
Who is Rebecca Chaplin? Rebecca is head of news and features at Blackball Media and presents news programmes and features on its online video channel Trade Plates TV CarDealerMag.co.uk | 33
EVEN BE TTER VA
IN 2017
LU E
OFF
ÂŁ100 YOUR FIRST
PURCHASE WHEN YOU OPEN A NEW MOTOR TRADE ACCOUNT
Open your new account today at: manheim.co.uk/register Applies to new motor trade accounts only, opened between 1 January 2017 and 31 March 2017. Cannot be used in conjunction with any other promotion. Cannot be transferred or sold. Applies to cars and light commercial vehicles bought at Manheim only and excludes HGV & Plant. Excluded purchases made via World Pay. Only one voucher per new account is redeemable. Voucher must be presented at payment office, or voucher number quoted to your trade sales team representative, when buying online. Photocopies will not be accepted. Voucher must be redeemed by 30 April 2017. Voucher has no cash value. We reserve the right to amend the terms and conditions for vouchers at any time without notice. Applies to new customers only.
ONLINE | IN LANE | MOBILE 34 | CarDealerMag.co.uk 28730 01.12.16
DASHBOARD.
Around the world Dealer news from somewhere other than here
SWITZERLAND
BENTLEY Motors has opened a new showroom in Lausanne. The facility measures 400 square metres and reflects the manufacturer’s global corporate identity. Robert Engstler, regional director at Bentley Motors Europe, said: ‘Switzerland is our biggest market in the central European region. The new showroom will help us enlarge our customer base in Switzerland even further.’
AMERICA
A WOMAN had an unexpected delivery at a Nissan dealership in Pennsylvania – by giving birth in the toilets. Amanda Sherman was at #1 Cochran Nissan, Pittsburgh, with husband Adam and their 14-month-old son to have their Titan pick-up serviced. But after a quick trip to the bathroom, she realised something was amiss and went into labour, with Heather Lynn being born soon after at a healthy 7lb 12oz.
SOUTH AMERICA
INCHCAPE has acquired a distribution business focused on Subaru cars to expand its presence in South America. According to the company, the deal with Indumotora – covering Chile, Colombia, Peru and Argentina, and including Hino commercial vehicles – will strengthen its existing operations in the region and offer good growth prospects.
JAPAN
THE Japanese government has sprung to the defence of Toyota after US President Donald Trump singled out the manufacturer and threatened to charge tariffs on cars it plans to build in Mexico but sell in the United States. Trump has frequently criticised US companies for producing goods in countries where costs are lower but selling them in America. Early in January, he tweeted about Toyota: ‘Build plant in US or pay big border tax.’ Japanese officials emphasised Toyota was ‘an important corporate citizen’ of the US.
AUSTRALIA
IT’S not just the UK that saw record levels of new car sales in 2016 – in Australia, figures were up by two per cent to reach a new high of 1,178,133. In addition, last year will be remembered down under as the one in which a light commercial, the Toyota Hilux, topped the sales chart. It was also the seventh year in a row that the Australian new car market has topped a million registrations.
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OUTSOURCED SWITCHBOARD
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CarDealerMag.co.uk | 35
FINANCE. ONLINE FINANCE
Independents will be next major market
Kia kicks off the new year with a special SUV event Dealers are showcasing manufacturer’s exciting range of lifestyle vehicles
K
ia is starting 2017 with a wide range of offers across its model line-up. For private customers looking to buy a new SUV in January, dealerships have been holding SUV events, to showcase the exciting range of lifestyle vehicles Kia has to offer and allow customers to pick the right model for them. They will also benefit from Kia’s servicing package – Care-3 – which is free on models ordered before January 31 and registered by March 31. The offer is available on all Soul and Soul EV, all-new Niro, all-new Sportage and Sorento models.
by JOHN BOWMAN john@blackballmedia.co.uk
For customers looking to buy a new Picanto five-door or MY16 cee’d, a finance offer of zero per cent PCP over three years is available with no deposit until March 31. Until that date, private customers can also benefit from a £1,000 saving on the Venga and Sorento models as well as the facelifted Carens – which made its debut at the Paris Motor Show last year. Last year saw the launch of the All-New Optima Sportswagon. For
customers who can’t decide between the Optima Saloon or this new model, a free upgrade will be available, making both cars an option at the same list price. The Kia Sorento comes with a £1,000 customer saving as well as free Care-3 for cars ordered in January. In addition, Caravan Club members buying a Sorento privately through the Kia dealer network will benefit from £1,000 towards Kia accessories. All grades have all-wheel drive, hill start assist, trailer stability assist plus reversing sensors, and can haul between 2,000kg and 2,500kg depending on the version.
Paragon Car Finance alters terms to include cars up to 15 years old PARAGON Car Finance is ringing in the new year with a change to its terms that will see finance extended to older vehicles. Currently, cars financed by Paragon Car Finance cannot be more than 13 Dealer Horizontal 1.pdf 1 years old atCar the endAdvert of the loan term. C
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With cars performing better over longer periods, however, finance will now be extended to vehicles up to 15 years old. The decision to extend the range of finance available follows a strong 04/01/2017 10:37:32 full-year performance by Paragon Car
Finance, which saw its loan book grow by 120 per cent on full-year 2015 results. It also follows the widening of Paragon Car Finance’s reach through the appointment of four new regional sales managers covering Wales, Yorkshire and southern England.
INDEPENDENT dealers are set to be a major new market for online motor finance in 2017, believes iVendi. The company’s research shows that more than 65 per cent of the top 200 dealer groups in the UK now have an online motor finance solution in place – but the figure for independents is probably less than 30 per cent. CEO James Tew said: ‘In the dealer sector, you expect large franchise groups to lead the way with new technology, and today there is widespread use of online motor finance within that sector. ‘The majority of independents have lagged some way behind but we have seen a real explosion in interest in recent months. Many of these dealers spend a lot of time getting their website right and are interested in any tool that drives traffic and sales. ‘Certainly, we work with some first-tier independents, and their use of our technology matches and can even exceed that of large dealer groups.’ Tew added: ‘Customers have come to expect that more and more of the vehicle purchasing process will be made available online. They assume there will be a high level of web functionality and your website is now used to judge the professionalism of your business.’
IN ASSOCIATION WITH
Apply the rule of thirds to your social media marketing updates O
ver the past two decades I’ve seen the significant rise of social media, from what started – in my opinion – with chat forums and avatars for headshots and then moved to what was my first real interaction with social media, Myspace, where I also learnt about coding to make my page look different to other profiles. Social media has majorly moved on since then and is now the way of life for most of the UK population. The majority of people have already visited Facebook, Twitter or LinkedIn before they even get out of their bed nowadays and this is just the start. I’ve spoken to a number of business associates, friends and colleagues who spend at least two hours a day (some
‘Just be careful not to talk about yourself too much’ significantly more) on social media. This is a major area for marketing success in business or failure if you get it wrong or do it incorrectly! If you’re contemplating getting into social media marketing from a selling perspective or currently doing social media marketing and are unsure why it isn’t working for you, then I have a message for you. You need to split your social media updates into three sections: one-third talking about you or your company, another third about local news or brand-related news and the remaining third on other areas but still within brand. At First Response, we’ve only really started selling our services on social media recently. Until then, we were focused on interacting with our
Ben
Garside TIME IS MONEY
existing customers and dealer partners, and if that’s all you want to do then that’s fine. However, just be careful not to talk about yourself too much. If you’re not sure about how to set up or use social media then give me a call and I’ll talk you through the setup, I’ve done this for a few dealers recently. Are you already socially active on social media? If not, then you’d better be prepared to get it wrong – and to be honest, you’d better be ready to get it wrong anyway, as we all make mistakes. Another area of significant growth is social media advertising. Hootsuite recently stated that the total social ad spending in 2016 was expected to reach $32.97bn (circa £27.36bn) and that by 2018, Facebook alone will top that number. This is obviously a lot of money and a massive area of potential waste. We have recently been advised that many companies are
Turn over page for more finance stories targeting customers who have no idea who the company are, whether they are in a buying cycle or even where they are based. If you are targeting the UK population for your dealership in Devon, the likelihood of securing business in Belfast or Inverness is minimal and costing you for each impression by people living there. Alongside the waste caused by distance, there is also the waste accounted for by the customers’ likelihood to buy. If a customer doesn’t know your company, they will have minimal trust in your products and will look elsewhere for a company that they do trust. Social media marketing still needs to be targeted like any other medium.
Who is Ben Garside? Ben is marketing manager for First Response Finance. Call him on 07817 518739 or email ben.garside@frfl.co.uk
CarDealerMag.co.uk | 37
DEALFINDER.
FINANCE. YOUR ESSENTIAL GUIDE TO . . . FIVE-DOOR HATCHBACKS FORD FOCUS THE Ford Focus has been a leader in the C-Segment since its release at the tail-end of the last millennium. The newlyintroduced ST-Line trim level provides a sporty look and feel without the inflated price of the Focus ST, and with Ford currently offering interest-free finance on two-year Ford Options contracts, it could be a pretty appealing option for buyers right now. On a 25-month term, the Focus ST-Line is available for a monthly payment of £238.88, following a customer deposit of £3,000 and a possible deposit allowance of £4,000. At the end of the agreement, the customer will have paid £8,733.12, and to hold on to the vehicle there is an optional final payment of £8,112. That would take the total amount to £16,845.12, almost £4,000 less than the OTR price of the ST-Line. This offer is based on a 12,000 miles-per-year agreement.
RENAULT MÉGANE THE Renault Mégane has been around since the mid-1990s, and in that time it has become one of the main challengers in the hatchback market. In its latest guise, the Mégane has just become more mature and more technologically advanced, especially with the central R-LINK 2 multimedia display that is the new focus of the cockpit. From Renault Centres, the Mégane in GT Line Nav trim is available for £344 per month on a 24-month, 12,000-mile per annum agreement. After a £2,999 customer deposit and a dealer deposit contribution of £1,950, the customer pays £11,255 over the twoyear period. If the customer chooses to keep the model, Renault list the option-to-purchase fee at £149 with a final payment of £9,220. This takes the final paid amount to £20,624, £926 less than the on-the-road price on the sporty model.
New team is formed to help drive forward dealer motor finance Move is made because ‘human interaction is absolutely critical’
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new department has been formed by DAVE BROWN at Startline Motor Finance to drive @CarDealerDave forward the company’s penetration. The aim is to provide support for dealers that can help them understand the kind communications at a senior director level and of deals for which Startline is best suited, plus at a sales person level, but we do tend to leave how it can better help the customer to make the something of a void in between. correct decision for their needs. ‘The commercial team has been created to fill The department will also assist in making the that space. For most dealer groups, it will operate whole motor finance process very efficient from at a level around business manager, regional director or dealer principal, which is where some the underwriting decision through to pay-out. of the subtleties of our flexible prime proposition The team also has access to a best-in-class data can potentially get lost.’ warehouse, which can be used to tailor reports to Burgess said that the formation of the the individual needs of Startline’s dealer partners. commercial team was an example of Startline’s CEO Paul Burgess explained: ‘Like most commitment to providing high levels of human motor finance providers, we are good Car Dealer Advert Horizontal 2.pdf 2at04/01/2017 10:39:45 C
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From left: Amy Foley, Lynne Anderson, Gary McLeod and Jessica Penn-Berkeley interaction with customers and dealers. ‘We have a very clear view in this area. Much can be achieved with the technology available to motor finance companies today, and we have a significant programme of investment covering IT, platforms and systems. ‘However, human interaction remains absolutely critical, whether that means taking a holistic look at all the factors involved when writing an individual finance deal or, as with the new commercial team, working to increase understanding at a managerial level.’ The commercial team is led by COO Gregor Sutherland, supported by head of operations Lynne Anderson working alongside Gary McLeod, Jessica Penn-Berkeley and Amy Foley.
Car Dealer Advert Column.pdf 3 04/01/2017 10:42:23
IN ASSOCIATION WITH
MAZDA 3
HAVING been updated for 2017 and released in October last year, the Mazda3 is the company’s global sales leader, and with good reason. With the fuel-efficient SkyActiv technology and quality fittings at an affordable price, the revamped 3 brings a stronger and sharper look to the hatchback market, which many can’t match. At participating Mazda Centres, the Mazda3 Sport Nav with a 118bhp 2.0-litre petrol and metallic paint is available for £269 per month on a 37-month, 9,000 miles-per-year contract. Following a deposit of £2,604.50 from the customer and a Mazda deposit contribution of £1,500, the customer will have paid £12,288.50 by the end of the agreement. If they choose to hold on to the car, the optional final payment is £7,726.50, which would take the final total to £20,015, £1,500 less than the on-the-road price thanks to the Mazda deposit contribution. This is an offer from Mazda that is more than worth the money! C
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STARTLINE
Reasons to be cheerful.. dealers positive about prospects for 2017
Why you need a third option for near-prime buyers
EXCLUSIVE findings from Close Brothers Motor Finance’s Dealer Satisfaction Survey reveal the majority (63 per cent) are positive about their business prospects for 2017. The Dealer Satisfaction Survey is a continual telephone survey undertaken by Close Brothers Motor Finance and reported on a monthly and quarterly basis. The survey questions 750 new and used car, motorcycle and light commercial vehicle dealerships across the UK to help provide a picture of dealer trends and help Close Brothers Motor Finance improve its service. The latest survey asked dealers about their performance over the past six months, their prospects for the year ahead, and their main challenges and opportunities. The research found that almost half (47 per cent) of dealers see the proliferation of new finance products as the biggest opportunity for the year ahead. The second- and thirdbiggest perceived opportunities for their business were changing consumer behaviour (33 per cent) and rising affordability of motor vehicles (31 per cent).
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CarDealerMag.co.uk | 39
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BIG MIKE.
All Big Mike’s columns are on our website. Enjoy them here bit.ly/bigmike
Dirty Dave’s ingenious solution to a faulty fifth gear issue I
had a nostalgic drive in a mate’s freshly purchased classic the other day, and it reminded me of back in the days when I worked on bombsite car dealerships in the bits of Birmingham that you won’t find in a tourist brochure, if, indeed, there are any to start with. The car in question was a lovely old Mk 2 VW Golf. Not a GTi, which seem to exist in greater numbers now than they did when new, but a very ordinary Golf 1.3, which my mate bought off an old dear in Erdington, where it had been garaged every evening since she purchased it new in 1989. Recognising that a Mk 2 Golf 1.3 was actually much rarer than a GTi, my friend – a fellow trader – did the decent thing and bought it before one of the vee-dubbers could get their hands on it, paint the bonnet up to look like rust and stick a roof rack and silly wheels on it before you could say ‘rat-look’. For me, it reminded me of a stunt we pulled on a poor unsuspecting customer back in the early Nineties. At the time, I worked for a bloke known colloquially as Dirty Dave, who some of my fellow Birmingham traders will probably also recall. I won’t name him by his real moniker, as he moves (or would do, if he hadn’t keeled over after one fried breakfast too many a couple of years ago) in circles that look after their own, and who I wouldn’t want to cross. And that’s the reason why, when I was much younger, I didn’t stand up for my own ethics when Dirty didn’t think twice about winding back odometers, clagging up rotten sills with copies of the Daily Mirror coated in Plasticine, and filling noisy diffs full of sawdust so they remained quiet as they drove off the lot. One of the best used cars of the time was the Golf 1.3, which, if the original buyer was feeling flush, could be ordered with the option of a fifth gear. Back then, five-speed cars were a status symbol all in themselves, a topic for pub discussion and a giver of bragging rights, especially if the car to which the box was fitted was a popular model. Hyacinth Bucket’s Rover Vanden Plas was a fivespeed, after all. Volkswagen, back then, was very keen to plug its environmental credentials (oh, the irony…) so the Golf’s five-speed box was known as the 4+E, which could be translated as ‘Economy’ or ‘Environment’ depending on which sales advisor’s bullshit you chose to swallow. They had a special
Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...
gearknob, with four ‘normal’ speeds marked out in white, and a fifth in green. Then, just like today, a used Golf was good news on the second-hand market, so unsurprisingly was a very rare sight on Dirty’s lot, where pre-corroded Maestros and clapped-out Cavaliers were very much our stock-in-trade. That meant I sniffed a rat the minute I clapped eyes on the very tidy-looking blue example that came as part of a job lot that the boss had underwritten from a local trader. It was only when I took it home for the evening that, while it was outwardly quite attractive, the Golf was pretty much ready for the 19th hole. It drove okay in its four normal gears, albeit a bit lumpy, but as soon as you popped it into its special ‘E’ ratio, it gave out a sound like someone rending metal – a metallic screeching that would wake up entire neighbourhoods and send
‘I realised why it had ended up at the toilet end of the car trade.’ pedestrians diving into the bushes for cover. The next morning, I drove it back into work and delivered the bad news to Dirty Dave. The gearbox, I explained, had gone the way of Monty Python’s infamous parrot. ‘I know,’ said Dirty, with a cunning smile. The following day, I was given the task of preparing a few cars for sale, a process that involved a hand-held vacuum cleaner, some tar-based, brush-on tyre gloop and a bottle of polish. It’s amazing what you can achieve with such basics, but mending a FUBAR gearbox isn’t one of them. Instead, Dirty had got round the clearly selfdestructing fifth gear issue in a simple and – I must confess – quite ingenious way, by nipping out to the breaker’s yard at lunchtime and coming back with a Volkswagen Golf gearknob. A four-speed Volkswagen Golf gearknob. ‘If they don’t know there’s a fifth gear in there, they’ll never look for it,’ he told me when I enquired. ‘Shame it wipes about fifty quid off the value, but it’d cost a lot more than that to mend.’
Who is Big Mike?
Well, that would be telling. What we do know is he’s had more than 40 years in the car trade and picked up some incredible tales along the way. CarDealerMag.co.uk | 41
FORECOURT.
Nissan Micra Becca Chaplin talks to Alex Smith, MD of Nissan Motor (GB), about the firm’s hopes for new Micra How many new Micras are you expecting to sell in the UK? All-new Micra replaces two cars in the current range, so we’ve got the current-generation Micra and we’ve got Note, with new Micra sitting in the middle dimensionally. We have stated in presentations we have done recently that we want to be a top-10 player in the B-segment. If you do the maths on that, and combine the volumes we have been achieving with Note and Micra together, that would put us in 11th position at the moment. Following on from that, a top-10 position for Micra should be achievable. What are you seeing as its main rivals? Do you see this car taking the fight to the main players in the segment? The straightforward answer is yes. The dimensions are right, as is the interior quality. The perceived quality of the interior is absolutely fantastic and the car has got some real technological advantages – particularly on the safety side of things. All grades get an intelligent emergency brake and pedestrian recognition, plus lane departure warning and intervention and those are two segment firsts. While the car will take on the traditional competitors in the B segment, I think it will also appeal to two other audiences: first of all, entrants into the new car market – the younger age group where a first new car purchases is the order of the day; and I think also it’s going to appeal to people who have been driving larger cars in the past wanting to downsize. They will have reached the right
time in their life to do that but they are not going to want to compromise on the equipment, refinement or technology they’ve had in the past with a larger car. So will it compete right in the heart of the segment? Yes it will. Will it attract customers from elsewhere and into the market for the first time? Yes, I think it will. Do you think Nissan has been struggling to appeal to a younger age group lately? No, not necessarily. I think when you launch a new product that has got the very latest technology on it, then it’s another opportunity or a new opportunity to talk to those groups. If you look at uptake in the crossover segment, especially with Juke, we’ve got a very wide age profile buying that vehicle and I also think that sometimes you have to dive a little bit more into the data to find out who is actually driving these cars rather than who the registered keeper is. What is the plan for Note? Note finishes production as of March 2017, then Micra will be the smallest car in the range.
closely. It’s really good news to have a look and have a learn. There are a number of prerequisites that you need to make a pilot like this viable. They’re sort of sociodemographic characteristics. You need a large city that shares a socially-mobile, socially-connected young population. You also need a city with a public transport infrastructure for the time that you don’t have the car. What’s the feedback been like from dealers about Micra? We presented it to the entire network back in November, and they drove left-hand-drive versions on the roads. The feedback has been unilaterally strong; I’d go so far as to say their confidence in the product is really high. It’s very, very important for the dealer network because we haven’t necessarily been competing in a very substantial segment in the UK market. This gives our dealer network a fantastic opportunity to kick on in 2017.
What are the chances that the Get&Go car-sharing scheme that’s running in France will come to the UK? I think it depends on what we learn from the pilot in Paris. It’s something all of the other countries in Europe are watching
on test
Rebecca Chaplin finds there’s lots to admire in Nissan’s latest incarnation of its Micra
WHAT IS IT? Nissan has breathed new life into the Micra, bringing it into line with the rest of its product range and offering segment firsts on the safety and tech fronts. It’s been redesigned to offer far better performance. In addition, a combination of standard safety options, improved driving aids and tech developments make it a very appealing option. It is also available with must-have extras such as Apple CarPlay integration and quality Bose headrest speakers.
WHAT’S UNDER THE BONNET? The Nissan Micra is available with two engine options at the moment – a 0.9-litre turbocharged petrol unit and a 1.5-litre diesel – both producing 42 | CarDealerMag.co.uk
89bhp. From March, when the car goes on sale, there will be a 1.0-litre naturally aspirated engine, producing 74bhp, coming to the UK, but details for that are limited. Currently it’s only available with a five-speed manual gearbox. The 0.9-litre petrol engine will achieve 64.2mpg with stop-start fitted, according to Nissan, and produce 99g/ km of CO2. Its diesel counterpart will do 88mpg while producing 85g/km of CO2. It will achieve 0-60mph in 11.9 seconds with the petrol engine, continuing to 109mph, while the diesel will go marginally faster to 60mph in 11.7 seconds, reaching 111mph.
from the entry- level Visia to the top spec Tekna. The base-spec car is priced at £11,995 and this will give you a fairly basic array of extras. It’s predicted that the mid-range Acenta spec with the 0.9-litre petrol engine will be the most popular model, which is priced from £14,995. This adds 16-inch alloys, cruise control, body-coloured trim and a seven-inch touchscreen infotainment system. From this grade, buyers will be able to add the Bose PersonalSpace sound system for £500, which is standard on top spec cars. The system delivers high-quality surround sound via speakers built into the front headrests.
WHAT’S THE SPEC LIKE?
WHAT’S IT LIKE TO DRIVE?
The Micra does offer plenty of options, ranging
The Nissan Micra is a pretty poky little car to
COMFORT
The interior of the Micra has been drastically updated with a stylish and sleek dash, using soft-touch materials and comfortable seats.
EXTERIOR
The spoiler on the back of the Micra (see below left) is for more than stylish looks. It disguises a floating roof that creates more space inside.
THE KNOWLEDGE
ENGINES
Improved engines have been added to the line-up, which offer a good mix of power and economy.
supermini – but how will it fare in a crowded sector? drive in both petrol and diesel guises, although you’ll get marginally more out of the little turbo petrol. The car’s centre of gravity has been lowered, which means it clings to the road better than ever before. It’s still a small car with a small engine, so don’t expect a life-changing driving experience, but it offers more than you’d need on a daily basis. The car’s handling is its redeeming feature, as it corners with absolute ease even on the tightest of bends. There’s more clever kit under the car’s skin to keep the car planted on the road.
WHAT DO THE PRESS THINK? Autocar says: ‘You should definitely give it chance. After a regrettable hiatus, the Nissan Micra is back to its very best as a small car presented and
executed to an apparently high European standard – and in almost every way that matters.’ Recombu said: ‘Nissan has gone overboard with the 2017 Micra. This is no mid-life facelift with tweaked headlights and a bigger cup holder.’
WHAT DO WE THINK? The new Nissan Micra is finally a great alternative to the cars that have become the staples of the small hatchback market. It’s got the looks, the drive and the economy to become a serious rival worth considering. For those customers focused on music and infotainment, the options available on the Micra make it an extremely appealing – especially if they’re not particularly concerned about an inspiring driving experience, that is.
Model: Nissan Micra Price as tested: £17,296 Engine: 0.9 IG-T three cylinder turbocharged petrol Power: 89bhp Torque: 140Nm Max speed: 109mph 0-60mph: 11.9 seconds MPG: 64.2mpg Emissions (g/km): 115g/km
TARGET BUYERS: Young families who need tech plus small-car convenience and older drivers who need easy but practical driving.
THE RIVALS: Ford Fiesta, Volkswagen Polo, Citroen C3.
KEY SELLING POINTS: 1. Infotainment system is excellent for this class. 2. Range of personalisation options. 3. Special Bose sound system.
DEAL CLINCHER: Excellent value for the amount of tech toys and personalisation. CarDealerMag.co.uk | 43
FORECOURT. DESIGN THROWBACK
Triangular design at rear mimics that of the Suzuki Whizzkid of the 1970s, but does restrict visibility.
LIGHTING THE WAY
Full LED headlights are a classy touch for a car of this price point, though only available on top trim level.
OFF-ROAD ACTION
Suzuki Ignis
Not only can the Ignis hold its own on a muddy track, but its 180mm ground clearance is also best in class.
Latest offering from Japanese manufacturer has rivals from Fiat and Vauxhall in its sights. But is it any good? Jon Reay reports WHAT IS IT? It’s been nearly 10 years since the last of the previous-generation Ignis rolled out of Suzuki’s UK showrooms, and what a difference a decade has made. While the old car managed to whip up a (relatively) decent number of loyal customers over the seven years it was on sale, it’d be fair to say that it was a dull-but-worthy creation. Suzuki is hoping that this distinctivelooking new car can provide a properly desirable alternative to European rivals from the likes of Vauxhall and Fiat.
WHAT IS IT? There’s just the one engine option: a 1.2-litre four-cylinder petrol borrowed from the Swift. It’s not as perky as the 1.0-litre turbocharged ‘Boosterjet’ unit you’ll find in the Baleno, but it’s more than enough to propel the subone tonne Ignis along with ease. As in the Swift, it needs some revving to really get going, but if anything that adds to the Ignis’s honest appeal. Some cars get an SHVS ‘mild’ hybrid 44 | CarDealerMag.co.uk
system too – effectively a way of regenerating the power used when you brake.
the larger 16-inch alloys, and things are remarkably stable at motorway speeds too. Off the beaten path, things are similarly impressive. The WHAT’S THE SPEC LIKE? Ignis’s optional four-wheel-drive It’s hard to fault the Ignis on value for system should be more than enough money – even entry-level SZ3 cars get to get it across a muddy field or up a plenty of toys. Air conditioning, front rutted track with ease. electric windows and a DAB radio with USB and Bluetooth connectivity WHAT DO THE PRESS THINK? are all thrown in. SZ-T cars get some Autocar says: ‘It doesn’t quite live up added street cred thanks to 16to any of its rivals’ on-road dynamics, inch alloy wheels, roof bars and a interior quality or infotainment touchscreen sat nav with reversing systems. Yet if you bear in mind camera, while top-of-the-range SZ5 the Ignis’s very generous standard trim brings LED headlights, keyless equipment and outstanding space entry, climate control and more. and practicality, it certainly has something they don’t.’ WHAT’S IT LIKE TO
DRIVE?
The Ignis has undeniably been set up for comfort rather than outright sportiness – and that seems about right for a car of this type. The steering, clutch and gearbox are all light to the touch, and make herding the Ignis around city traffic a piece of cake. Ride quality is good even on
WHAT DO WE THINK? Whatever segment the Ignis fits into – city car or mini-crossover – there’s no doubting that it’s an appealing little thing. It’s not the most accomplished car in its segment – as ever, that honour goes to the Volkswagen Up – but the Ignis isn’t far off.
THE KNOWLEDGE Model: Suzuki Ignis SZ5 SHVS Price (as tested): £12,995 Engine: 1.2-litre petrol Power: 88bhp Torque: 120Nm 0-60mph (est): 11.2 seconds Top speed: 106mph Economy: 65.7mpg Emissions: 97g/km
TARGET BUYERS: City car buyers who want a car that isn’t afraid of a muddy track.
THE RIVALS: Fiat Panda 4x4, Dacia Sandero Stepway, Vauxhall Viva Rocks
KEY SELLING POINTS: 1. Cute-yet-rugged styling. 2. Generous equipment levels. 3. Well-proven four-wheel-drive system available.
DEAL CLINCHER: The Ignis is just as at home in the city as it is on a muddy track.
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CarDealerMag.co.uk | 45
FORECOURT. BMW vows to do autonomous technology ‘right, not first’ BMW says it won’t rush autonomous cars to market and will only implement the technology when it’s confident that it’s ready, regardless of pressure from other manufacturers. The new BMW 5 Series, which will hit dealers’ forecourts in February, features semi-autonomous driving aids that allow the driver to take their hands off the wheel for short periods of time. But speaking at the launch of the new 5 Series, Albert Maier, project manager of driving dynamics for the premium saloon, told us: ‘There’s no incentive for us to rush autonomous technology to market. ‘It’s better for our brand image if we take our time and make sure that when we do bring fully autonomous cars to the market, they work to
the kind of standards that people have come to expect from BMW. ‘If you look at our testing regime for our current cars, they undergo millions of miles of testing. So just imagine how much more we need to do for cars that drive themselves. So you can understand why this takes time.’ With the Model S, Silicon Valley-based
CHASSIS
The underpinnings have been renewed, with the extensive use of lightweight materials contributing to the car’s 100kg weight saving.
electric car maker Tesla has proved that there is an appetite for electric vehicles and advanced technology in the premium executive car segment. The company has pushed forward with testing its ‘Autopilot’ feature in customer cars – a practice that has drawn criticism from some.
INFOTAINMENT SYSTEM
One of the best in the business. It’s easy to use, screen quality is crisp and gesture control works almost flawlessly.
BMW 5 Series
Overhaul sees evolution rather than revolution in the looks department, while new
WHAT IS IT?
WHAT’S IT LIKE TO DRIVE?
According to BMW, the 5 Series is the car most people associate the brand with. So when it’s time for a new generation of the vehicle that everyone in the premium executive segment has to beat, it’s a pretty big deal. With this in mind, it’s no surprise to see that BMW has overhauled the outgoing car without changing its character much at all. The exterior styling is now more taut and muscular, while the technology on display in the cabin is second to none. The bits you can’t see are totally new, too. For example, the chassis has been renewed and the extensive use of lightweight materials contributes to an overall weight saving of 100kg, while the front axle is a new double-wishbone set-up.
For such a big car, the BMW 5 Series doesn’t half handle well, and that’s all down to improvements in the chassis – we reckon the engineers have nailed it. The 5 Series’ bread and butter is devouring motorway miles, and here it excels. The ride quality is unparalleled, meaning drivers will always feel relaxed at their destination, while parking is made easy thanks to a suite of driver assists that use the central touchscreen to give both a bird’s-eye view of the car’s surroundings and a nifty rear-view camera.
it keeps both the taxman and fleet manager happy. With 185bhp and 400Nm of torque it’s no slouch, but comes with claimed economy figures of 68.9mpg and 108g/km of CO2. However, those who can get away with it should go for the 530d. The 3.0-litre diesel makes 258bhp, but it’s the way the 620Nm of torque is so deliciously delivered that delights. Around town there’s not a great deal of difference between this and the smaller engine, but find a fun road to exploit the surprisingly capable chassis and the extra punch is welcome.
WHAT’S UNDER THE BONNET?
WHAT’S THE SPEC LIKE?
46 | CarDealerMag.co.uk
The most popular engine variant will be the 2.0-litre four-cylinder unit in the 520d because
The base 5 Series is hardly spartan, but buyers will have to tick a lot of boxes for the full
When questioned on Tesla’s aggressive strategy for bringing semi-autonomous technology to market, Maier said: ‘I guess it’s just a different outlook with different goals. ‘For Tesla, it comes from a technology background where this kind of testing happens,
and it wants to show the world that it is capable. We won’t react to that, we’ll do things our way, the way we want to do it, and then we’ll see.’ Earlier this year, BMW board chairman Harald Krüger said the company wanted to have a fully autonomous vehicle ready for production by 2021.
‘We’ll do things our way, the way we want to do it, and then we’ll see.’
SEMI-AUTONOMOUS TECH
The Driving Assistant Plus package is a £2,250 option and allows the car to drive itself for brief periods.
THE KNOWLEDGE
model gives unparalleled ride quality, says Darren Cassey experience of technology and comfort. It packs better standard kit than before, including a fully digital instrument display, LED headlights and widescreen navigation, which makes it competitive with rivals in this segment. However, our car came with a long list of optional extras, including automatic, four-zone air conditioning (£695), a brilliant head-up display (£995) and ‘comfort seats’ (£1,705). The new infotainment system is one of the best on the market, too.
WHAT DO THE PRESS THINK? Car Magazine said: ‘It’s so smooth and so supple from a
ride quality perspective it out-luxes the 7 Series.’ Auto Express commented: ‘This latest model is a technical tour de force, plus it delivers classleading refinement and comfort.’
WHAT DO WE THINK? The BMW 5 Series has long been the premium executive segment’s sales leader, and we see no reason why that should change with this new iteration. It’s best in class to drive, and offers excellent levels of quality and comfort. True, it may lack some of the Mercedes-Benz E-Class’s extrovert luxury but it’s beautifully put together and drives like a dream. Top marks all round.
Model: BMW 5 Series 530d xDrive Base price: £43,835 Engine: 3.0-litre six-cylinder diesel Power: 258bhp Torque: 620Nm Max speed: 155mph 0-60mph: 5.2 seconds Economy: 56.5mpg Emissions (g/km): 132g/km
TARGET BUYERS: Businessmen and women who do many miles.
THE RIVALS: Mercedes-Benz E-Class, Audi A6, Jaguar XF.
KEY SELLING POINTS: 1. Best in class to drive. 2. Brilliant interior. 3. Great inegration with phone.
DEAL CLINCHER: Drives like a smaller saloon but still has the space and equipment a premium executive car should have. CarDealerMag.co.uk | 47
FORECOURT.
Mercedes-Benz E-Class All-Terrain Product manager Leonhard Gebel discusses the background and appeal of this unconventional estate The past year and a half has been a busy one for the E-Class. How has that gone? Very good. The feedback has been awesome. We’ve had quite a lot of innovations and the year was busy – we had the sedan launch in the beginning of the year and the estate and now the E63. Lots of work, but it has been great. So, how long has the All-Terrain been in the pipeline? Well, it was in the pipeline roughly really from the beginning of the E-Class development. It’s an essential part of the E-Class family and we’ve evolved it right from the start because we had to develop new suspension for the car, new front bumpers, rear bumpers and exhaust system. You don’t get that in one year, it takes some time.
differentiation in their models and they want a car that expresses their personality. So, we saw that we have some people that want to really go off road – they go for SUVs – we have some people that want to have an estate, but we also have customers who want to have the versatility and all the comfort and safety of the E-Class but still sometimes want to go off road, and this is where the idea came from. In real-life use, how frequently do you think it’s going to be taken off road? Well, we predict two kinds of customers. On the one hand, we’ll have the people who sometimes go recreationally off-roading, to go skiing or mountain biking and want to have that
Where did the inspiration for the All-Terrain come from? Over the past few years we’ve seen that customers want more and more
capability in their estate. We then expect to have the customers who buy the car mainly for the looks and the design. Do you think the All-Terrain is capable enough to provide for the needs of people who go more frequently off road? It’s not a G-Class but it’s not just an off-road look, either. The car really has some great features and some great capability and you can do a lot of interesting things with it. Can we expect to see this speciallydeveloped All-Terrain mode on any other models in the future? I can’t tell you about future models but we have similar driving modes in other cars already, for example the GLE. But this drive mode has been designed especially for the E-Class and I will leave it at that for the moment.
on test
Laura Thomson tries the ‘Swiss utility knife among estates’ for size and finds the
WHAT IS IT? The All-Terrain is an entirely new model for the Mercedes range, due for delivery by summer 2017. It is effectively the carmaker’s new, sixthgeneration E-Class, clad in heavy-duty plastics, with a raised ride height and boasting its 4Matic all-wheel-drive system. Designed to compete with the likes of Volvo’s V90 Cross Country and the Audi A6 AllRoad, it’s a rugged, capable estate, with the looks to boot. In Mercedes’ own words, it is the ‘Swiss utility knife among estates’.
WHAT’S UNDER THE BONNET? Despite coming in two potent diesel options, the UK will only benefit from the larger, yet-to-bespecified 3.0-litre in-line six-cylinder diesel. A 48 | CarDealerMag.co.uk
pleasant powertrain in its own right, the E350 d produces 255bhp and gives 0 to 60 acceleration in six seconds, a top speed of 155mph, combined mpg of 51.4, and CO2 emissions of 151g/km. But these figures are for the standard E-Class Estate with the same engine. With the extra weight of the All-Terrain’s off-roading equipment, 4Matic all-wheel-drive system and air suspension, the speed, mpg and emissions are all expected to be significantly different.
WHAT’S THE SPEC LIKE? It’s yet to be confirmed, but the All-Terrain is expected to be offered in one, highly specified trim for the UK market. The reasoning behind this is that if buyers are already paying for the
higher-performance engine, then they’ll want the trim to match. Climb into the cabin and you could be in a standard E-Class. While interior trim is yet to be specified for the model, all of the elements of the award-winning saloon and estate models are there. The E-Class Estate’s optional advanced safety and driver assistance systems will be available on the All-Terrain. This includes the Lane Tracking Package, which features blind spot assist and active lane keeping assist, and the Driving Assistance Plus package, which boasts both those plus a host of other safety aids.
WHAT’S IT LIKE TO DRIVE? Given its heavy off-road kit and raised ride height, you’d be forgiven for thinking that the E-Class
INTERIOR
LOOKS
The model is just as practical as its standard sibling, boasting the same load capacity of 640 litres and the 40:20:40 rear seat split.
Styling cues from Mercedes’ SUV family feature, such as the two-louvre radiator grille, matte silver air inlets and three-section bumper with a chrome simulated underguard.
THE KNOWLEDGE RIDE HEIGHT
In All-Terrain mode and travelling at under 19mph, the ride height of the E-Class will raise by 20mm for better ground clearance.
new model delivers on every level imaginable All-Terrain may lose some of the on-road finesse for which the E-Class Estate is famed. However, the car is sure-footed on both road and snow, body roll is minimal, and cabin and engine noise remain low at high speeds. Power is transmitted through Mercedes’ delightfully smooth nine-speed 9G-Tronic torque converter automatic transmission, which doesn’t lag whatsoever, despite the model’s increased weight, and provides a spread of torque throughout the rev range.
WHAT DO THE PRESS THINK? Auto Express gave the car four stars, writing: ‘Taller, more supple suspension might allow the E-Class All-Terrain to venture off-road, but the benefits it brings to the on-road comfort are
equally, if not even more, attractive.’ Evo writes: ‘An exercise in niche-filling that feels more useful than tokenistic and hardly puts a foot wrong.’
WHAT DO WE THINK? It’s everything an adventurer would look for – as long as they have more than £50,000 to spare. But thanks to its luxury trim, it’s more likely to be seen in the city, only occasionally venturing out into the wilds in the hands of an on-holiday businessman. The added equipment brings exceptional performance and comfort both on road and off, and will really allow owners to make the most of whatever terrain they find themselves upon. At the end of the day, there’s just something exciting about a sleek estate wearing SUV shoes.
Model: Mercedes-Benz E-Class All-Terrain Price as tested: £52,000 to £53,000 (approx) Engine tested: E350 d Power: 255bhp Torque: 620Nm Max speed: tbc 0-60mph: tbc Economy: tbc Emissions: tbc
TARGET BUYERS: Long-distance drivers who occasionally go recreationally off road.
THE RIVALS: Volvo V90 Cross Country, Audi A6 AllRoad.
KEY SELLING POINTS: 1. All-Terrain driving. 2. Air suspension. 3. Ground clearance of up to 156mm.
DEAL CLINCHER: Increased performance and comfort for the ultimate smooth Merc enjoyment. CarDealerMag.co.uk | 49
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Source: ComScore MMX, Media Trend, Apr-Sep 2016 + Auto Trader internal metrics
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CarDealerMag.co.uk | 51
FEATURE.
The Automotive Influencers It’s time for our annual date with the Automotive Influencers. Over the following pages, manufacturer bosses, dealer group chiefs and key executives from some of our leading and best-known automotive suppliers answer our questions about the year ahead.
Industry chiefs say it’s time for scrappage to return...
U
K car industry bosses have called on the government to bring back a ‘scrappage scheme’ to cushion against Brexit uncertainties and help take ‘dirty diesels’ off the road. Peugeot UK managing director David Peel believes a scrappage scheme, which would give drivers of older cars a financial incentive to trade them in for new models, is needed to halt sales nose-diving this year. At Car Dealer Magazine’s annual Automotive Influencers event, Peel said: ‘I think the market is going to be very unpredictable this year. I think a scrappage programme would be a way of securing the position for 2017. ‘I can see the overall market declining, but I certainly feel that from experience of the last scrappage schemes, the cost to the government is quite neutral, so I can’t see it’s a huge risk on their part to think of doing something in similar vein this year.’ His comments were echoed by Kia UK president and CEO Paul Philpott, but with the proviso that any scrappage scheme introduced targeted older, high-polluting diesel-engine cars. Philpott said it would be difficult to call for government support after car sales in 2016 hit record levels, but that such a plea would have more sway if it cleaned up the UK car parc. At our event, he said: ‘I think it’s far easier to rationalise the need for a scrappage scheme on diesel. There’s been some calls for diesel scrappage schemes to get some of the older, more emitting diesel engines off the road, because, if you look at Euro-6 diesel engines, they emit a fraction of what a 10-year-old diesel car does.’
by JAMES BAGGOTT @CarDealerEd
Ken Savage, chairman of dealer group Perrys, added: ‘I think if the government were to introduce a scrappage scheme, perhaps on dirty diesels, that would be a good thing. ‘The previous scrappage scheme worked well. It worked well for the dealers, for the manufacturers, for the general public and for the economy because it was a stimulation. ‘The actual value of the contribution from the government, in reality, was quite modest.’ The last scrappage scheme was introduced in 2009 and ran for 10 months. It saw the government incentivise owners of 10-year-old cars to trade them in for a new model with a £2,000 contribution, with half coming from the car manufacturer. The older cars were then destroyed. Car Dealer Magazine founder James Baggott said: ‘The last scrappage scheme was hailed as a huge success and came when the car market was in a desperate position, deep in recession. ‘It actually worked out well for the government, with VAT receipts and registration fees thought to have easily covered its contribution. ‘Some 396,000 buyers took up the offer and it helped support the retail car industry at a time it desperately needed it. ‘However, with 2016 having been a record year, it’s hard to argue a small dip in sales caused by potential Brexit uncertainties is a good enough reason to reintroduce a scrappage scheme.’ Check out our Influencers’ views on video – go online to bit.ly/new-scrappage
...oh no it isn’t – not yet anyway, says SMMT A SCRAPPAGE scheme to bolster the UK car industry is not needed – not just yet anyway. That’s the verdict of Mike Hawes, the SMMT chief executive, who told Car Dealer Magazine that with sales predicted to fall between five and six per cent in 2017, an ‘expensive scrappage scheme’ is still ‘very hard to justify’. In an exclusive interview, Hawes said: ‘Scrappage had a big impact on the public purse. 52 | CarDealerMag.co.uk
‘With a 5-6 per cent drop forecast, it is still a high market predicted in 2017 and a scrappage scheme would be very expensive for the Treasury. ‘However, if the market were to fall dramatically, there could be an argument for it, but we are not predicting Armageddon for new car sales. I think sales would have to drop 20 to 25 per cent below their current record levels for it [a scrappage scheme] to be justifiable.’
Our Automotive Influencers event is held every year at the RAC Club in Pall Mall, London
WITH THANKS TO THE RAC CLUB, PALL MALL ROYALAUTOMOBILECLUB.CO.UK PICTURES: JONATHAN FLEETWOOD
BREXIT VOTE EFFECT COULD BE DRAMATIC THE IMPACT of Brexit – if and when it is triggered by the government – will have a dramatic effect on car sales in 2017. That is the damning verdict that was delivered by some of the most important UK car industry bosses at Car Dealer Magazine’s annual Automotive Influencers event. The panel – which included bosses from seven UK car manufacturers and two dealer groups – said Brexit could see sales fall significantly as uncertainty about the economy steers buyers away from dealers. Bek Hassan, of Citroen UK, added: ‘I would say the market will be down overall, maybe in retail terms down slightly more. ‘It’s difficult to be precise, but I would imagine the market might be something like three or four per cent down.’
Some dealer group bosses seemed to be thinking along the same lines. Lookers CEO Andy Bruce said his firm has estimated a drop in new car sales in 2017, perhaps of around five per cent. He said: ‘I think if I’m going to be surprised, I’ll be surprised on the good side. It might not drop at all.’ Meanwhile, Ken Savage, chairman of Perrys, said he agreed that the new car market will be down in the next 12 months. He said: ‘2016 was a very, very strong year, perhaps too strong, as perhaps there’s been too much of a push from the manufacturers. ‘A bit less might be good for the dealers. I think we’re going to see that.’ Check out our Influencers’ views on video – go online to bit.ly/Brexit-views
March will be a record breaker, say influencers A SALES flurry driven by buyers looking to beat the new vehicle tax changes will push March sales to record levels, believe industry bosses. In April, the VED system changes to a more flat-rate approach – most notably it will penalise buyers of cars worth more than £40,000 and only offer a zero-rate fee to electric cars. That means buyers of new hybrids and lowemitting diesel- and petrol-engined cars, which currently enjoy free VED, will no longer benefit from a discount, instead paying a flat rate of £140 per year. Andy Barratt, chairman and managing director of Ford, says this March could be huge. His views were echoed by SMMT chief executive Mike Hawes, who believes we will see a sales surge in March the likes of which the industry has probably never seen before.
‘We expect to see sales of cars costing more than £40,000 pulled forward as well as some others that will no longer benefit from free VED,’ said Hawes. The tax changes are likely to also see a glut of pre-registrations take place as manufacturers and dealers look to register cars to beat the changes. ‘These would then be held in stock and sold as ‘‘nearly new’’, mitigating the expensive changes – especially on cars costing more than £40,000. Hawes added that he was disappointed with the VED changes as they had failed to incentivise buyers into swapping for lower-emitting vehicles. ‘We were disappointed with the proposals when they were announced two years ago, because the incentive for ultra-low emission vehicles was effectively removed,’ he said.
FIND OUT WHAT OUR INFLUENCERS THINK 2017 WILL HAVE IN STORE – OVER THE PAGE CarDealerMag.co.uk | 53
FEATURE.
David
Peel
PEUGEOT: Manufacturer is ready to progress through 2017 with confidence and momentum.
Job title and company: Managing Director, Peugeot Motor Company. Lives: Kenilworth, Warwickshire. Drives: Peugeot 308 GTI until new 3008 SUV GT arrives soon! Family: Married with two daughters aged 21 and 23, and two stepchildren aged 11 and 13. Education: Studied 3D Design and Technology at University of Wales.
MINI CV
What opportunities will 2017 present? 2017 will be interesting as new cars have never been so accessible but the economy remains fragile. At Peugeot UK we now have some ‘game-changers’ with the new 3008 SUV and new Expert Van, as well as a re-engaged network, ‘Stronger Together’, and ready to enter 2017 with confidence and momentum that will set us apart from our competitors. What do you regard as the biggest threat to the motor industry in 2017? Forex (foreign exchange) will have a huge influence on trading terms and consumer pricing for the majority and will definitely put pressures on the industry in 2017 with inevitable price rises.
decide on dealer collection or delivery and pay a deposit to finalise the purchase. 2016 was another year of strong new car sales – do you see this continuing? We know that the 2016 market has been inflated and masked the true market. At Peugeot UK we have made a conscious decision to move away from the tactical ‘pre-registered’ approach to support dealer profitability and our future residual values. For the Peugeot brand, we have realigned our business model and see 2017 as a real opportunity for retail growth.
Are there any reasons to be cheerful at the start of this new year? Certainly at Peugeot UK! Our new Expert Van has just won the What Van? Light Commercial and Medium Van of the Year 2017 and our brand new 3008 SUV – a true game-changer – is the winner of Car Buyer Best SUV and Car of the Year 2017.
Do you think the motor industry needs to change? If so, in what way? Yes – every business needs to continue to adapt. General retailers continue to make the customer experience more enjoyable and efficient. But does every dealer engage in an efficient digital way and respond to digital leads as efficiently as the best retailers? Shopping mall digital stores and online retailing supplied through the network is the answer.
What are you most excited about right now? At Peugeot UK we are about to launch the first truly online sales website. We will offer our customers the ability to build a car online with real-time delivery, receive a guaranteed p/x valuation, apply for instant finance approval,
What should dealers be focusing on to ensure growth and a sustained future in 2017? Great customer satisfaction delighting every customer. Dealers who manage the detail of their businesses every day and put themselves in the customer’s shoes will prosper.
Bigger shock of 2016, Trump or Brexit? Brexit. We’re buying. What’s your poison? Islay Malt Whisky. Again, our treat. Pick any box set as a late Christmas present. Game of Thrones. Is there any habit that dealers should leave behind in their working lives? Yes – how they used to operate! Today’s world is moving faster than ever – stand still and you will die. Customer satisfaction is not just a manufacturer target; it is the most important investment a dealer can make. If you had a final word of advice for our readers, what would it be? Believe in yourself, think digital and think how many salespeople you would employ if all of your digital leads walked through your showroom door. Focus on maximising every hour of every day and treat every customer lead as if it was a member of your family.
‘Today’s world is moving faster than ever – stand still and you will die.’ 54 | CarDealerMag.co.uk
Alex
Smith NISSAN: By focusing on new product and quality service, we can have another great year. What opportunities will 2017 present? Across the industry there is a big return to market opportunity following extraordinarily strong growth in the UK car market in 2014/15. At Nissan, we have a massive aftersales service and parts growth opportunity in our network following incredible parc growth over the last five years and I look forward to working with our dealers to make the most of this opportunity. What do you regard as the biggest threat to the motor industry in 2017? For the UK, it has to be dealer cost base. With today’s regulatory environment and the ongoing economic uncertainty that we face, we have to be very conscious of the ongoing cost of franchise. This is certainly something that we will be looking at very closely throughout 2017 in our bid to drive up overall dealer profitability. Are there any reasons to be cheerful at the start of this new year? There are lots of reasons to be cheerful and – compared to historical averages – the outlook for the car market in 2017 is very strong. This, and the size of the service opportunity that Nissan has, means we can be very optimistic of substantial growth within our network during 2017. What are you most excited about right now? Launching the new Micra. This is a gamechanger for Nissan in the UK and brings a new level of design, style and technology to B-segment car buyers. 2016 was another year of strong new car sales – do you see this continuing? The underlying demand in new car sales is robust and the return to market opportunity means we have lots and lots of customers who we can look to for brand loyalty. With an exciting year of product ahead, 2017 is shaping up to be another strong year for Nissan in the UK. Do you think the motor industry needs to change? If so, in what way? The motor industry is constantly innovating, but customer expectations are accelerating at an ever increasing pace. We have a customer journey in the motor industry that hasn’t changed much in a long time when compared with other sectors and we need to embrace consumers’ evolving
Job title and company: Managing Director, Nissan Motor (GB). Lives: Oxford. Drives: Storm White Juke Nismo RS. Family: Charlotte, 15; Caitlin, 13; Oliver, 11. Education: BA in Geography, Leeds University. Career: I joined Nissan in September 2016, following nine years at Volkswagen UK. Prior to that, I worked at Kia Motors, GM Daewoo and Ford of Britain.
MINI CV
Bigger surprise of 2016, Trump or Brexit? No comment. We’re buying. What’s your poison? Espresso. Again, our treat. Pick any box set as a late Christmas present. Any Ashes victory – I could watch that over and over again. The 2005 Ashes box set would be my ultimate favourite. We hadn’t won it since 1986/87 and it was on a knife-edge until the final evening. sales and service expectations. Therefore, we need to innovate and ensure we utilise technologies that other industries are using extremely effectively to give customers a more rewarding and unique experience. What should dealers be focusing on to ensure growth and a sustained future in 2017? Put simply, it’s brilliant, consistent processes. The ability to deliver this for all customers, at every
touchpoint, is the key to success for our dealers. Is there any habit that dealers should leave behind in their working lives? Don’t assume previous performance is the best indicator of future opportunity. Basing expectations for the future on what has gone before can be a self-fulfilling prophecy – that’s a habit we need to break. A final word for our readers? We’ve had a fantastic five years, which delivers good renewal and service opportunities, and we need to make sure we capitalise on that. Add to this the all-new Micra and other new product coming in 2017, plus our continued focus on quality of service, and we can look forward to another great year ahead.
‘Don’t assume previous performance is the best indicator of future opportunity.’ CarDealerMag.co.uk | 55
FEATURE.
Lance
Bradley MITSUBISHI: Manufacturer is well-placed to take advantage of two fast-growing segments. What opportunities will 2017 present? The continued growth of the plug-in vehicle market is a great opportunity for Mitsubishi. Our Outlander PHEV led the way in providing affordable hybrid technology and will continue to do so in 2017. We also have two brand new SUVs to launch, taking our SUV range to five, so we’re in a great position to take advantage of two fastgrowing segments of the car market. What do you regard as the biggest threat to the motor industry in 2017? We need a better plan from the government on the electric vehicle charging infrastructure. The market shows that currently, customers very clearly favour PHEVs because they offer real running-cost savings without compromising practicality. Few people are in a position to drive a pure EV as their sole vehicle – the costs, combined with the range anxiety caused by the inadequate charging infrastructure, mean they’re simply not feasible yet. The government is favouring pure EVs going forward but is not backing up its strategy with an infrastructure plan. If the infrastructure is left to ‘the market’ you end up with the kind of chaotic situation we currently have where the sole provider of charging stations at motorway service stations is actively discouraging many users. That cannot help the promotion of low-emission electric vehicles. Are there any reasons to be cheerful? Of course. The car market is at record levels and our economy is generally strong. From our own point of view, we plan to launch a couple of new SUVs, incremental to our current line-up, which will further boost our sales. What are you most excited about right now? The opportunities presented by Mitsubishi joining the Renault-Nissan Alliance are considerable. We’re likely to see some major benefits from that over the next couple of years. 2016 was another year of strong new car sales – do you see this continuing? Yes. Although Brexit is causing some uncertainty, and some price rises, the fundamentals which led to strong sales in 2016 are still there. Do you think the motor industry needs to change? If so, in what way?
Job title and company: Managing Director, Mitsubishi Motors in the UK. Lives: Near Newbury. Drives: Mitsubishi Lancer Evo FQ-600 during the week, Jaguar E-Type on summer weekends. Family: Wife, step-daughter, dog. Education: Mechanical Engineering degree from Salford University. Career: Twelve years at Ford Motor Company and now 16 at Mitsubishi Motors, seven as MD.
MINI CV
Bigger shock of 2016, Trump or Brexit? Brexit, because it came first. I was in Tokyo at the time and watched it unfold via Twitter and various newsfeeds. We’re buying. What’s your poison? I gave up drinking beer earlier this year, so a nice glass of red please. Again, our treat. Pick any box set as a late Christmas present. A box set of England Rugby’s unbeaten 2016 games, please. The motor industry is continually changing. Ten years ago 4x4s were being demonised as ‘gas guzzlers’, now the Outlander PHEV 4x4 is the UK’s best-selling electric vehicle. We’re also seeing changes in the way customers want to buy and/or own vehicles, and it’s important to stay ahead of those expectations.
What should dealers be focusing on to ensure growth and a sustained future in 2017? Dealers need to focus on where they can add value to the vehicle purchasing and ownership experience. Having the right staff, with appropriate remuneration, skills and training, is essential. Is there any habit that dealers should leave behind in their working lives? The vast majority of our dealers do a great job, and we work with them to keep moving our service to customers forward. One or two could maybe take a look around and see what our best dealers are doing (and how much money they’re making as a result). If you had a final word of advice for our readers, what would it be? Don’t over-complicate things. Selling cars is a simple business. You just have to provide excellent service and add value to the customer.
‘Our Outlander PHEV led the way in providing affordable hybrid technology.’ 56 | CarDealerMag.co.uk
Andy
Barratt
FORD: Opportunities are always out there, no matter what the conditions seem like.
Job title and company: Chairman and Managing Director at Ford of Britain, and vice-president of the SMMT. Lives: Essex. Drives: Ford Mondeo Vignale, Mustang and ride-on mower. Family: Married with two sons. Education: Accountancy. Career: Bank of England from 1978. Joined Ford as a finance trainee 1980. Most recent roles include district sales manager, customer service director, sales director.
MINI CV
What opportunities will 2017 present? We launch the next-generation Fiesta – Britain’s best-selling car for eight successive years – with an expanded range that will include the upscale Vignale and an Active crossover. It will be the world’s most technically advanced small car, offering consumers greater choice and more personalisation, including the first Ford vehicle to feature a premium B&O PLAY sound system. What do you regard as the biggest threat to the motor industry in 2017? The continued uncertainty around Brexit remains the biggest challenge. We’ve seen pressure on pricing as a result of exchange rate weaknesses, and with financial uncertainties, there is the risk of suppressed consumer confidence. But I’m an optimist and see opportunity everywhere – the breadth of our range means that whatever your budget and needs, there’s a Ford for you! Are there any reasons to be cheerful at the start of this new year? The Ford dealer network has had a great sales year as a result of a strong product line-up – especially CVs. They are also looking at new aftersales growth as Ford continues to roll out mobile servicing. In 2017, we’ll see the same strengths as we continue to invest in new products, technologies and services. Our SUV range will be strengthened with the arrival of
the new Kuga and Edge Vignale models, not to mention the Fiesta range to look forward to. What are you most excited about right now? The launch of FordPass, a smartphone app that gives us the opportunity to engage with consumers in a new way, to offer new products and solutions that improve the retail experience. FordPass will provide convenience for users as we add more functionality and features, effectively creating a one-stop shop for consumers’ transportation needs. For example, the app will enable customers to locate parking spaces, check their vehicle’s service status, and access and manage their Ford Credit account. 2016 was another year of strong new car sales – do you see this continuing? Depends on consumer confidence – see my response to the question about the biggest threat to the industry in 2017. Do you think the motor industry needs to change? If so, in what way? The challenges from the evolution of online sales, as an alternative to sales via dealer networks, will put a greater focus on delivering customer service. That mission is already under way as dealers embrace consumer empowerment deservedly heightened by the Consumer Rights Act. What should dealers be focusing on to ensure growth and a sustained future in 2017?
Bigger shock of 2016, Trump or Brexit? Brexit. We’re buying. What’s your poison? Darjeeling. Again, our treat. Pick any box set as a late Christmas present. Lovejoy. Checking that their customer-first culture, team and metrics are where they need to be to succeed. In return, dealers are being rewarded with the Vignale range – our most luxurious Mondeo, S-MAX, Kuga, Edge and new Fiesta models. Is there any habit that dealers should leave behind in their working lives? Time spent on activities or processes that do not prioritise or benefit the customer. If you had a final word of advice for our readers, what would it be? Whatever the trading conditions or headwinds, there are always opportunities to be had. My glass is always half full!
‘The continued uncertainty around Brexit remains the biggest challenge.’ CarDealerMag.co.uk | 57
FEATURE.
Andy
Bruce
LOOKERS: Opportunities lie ahead as trend for consolidation shows no signs of abating. Job title and company: CEO, Lookers plc. Lives: Glasgow. Drives: Range Rover Vogue 4.4 Autobiography. Family: Wife (Fiona), daughter Shona (18) and son Scott (15). Education: Graduated from Strathclyde University in 1986 with BA (Hons) in Business Administration, majoring in marketing. Career: He joined the motor industry from university, starting with Land Rover in fleet sales and culminating in 2000 as UK sales director. That led to a change to the retail side of the business when he joined Lookers, initially running their substantial operations in Northern Ireland before joining the board after 18 months. A few years as operations director led to his becoming managing director, then COO and, in 2014, CEO.
MINI CV
What opportunities will 2017 present? For our business, I think that the industry trend for consolidation will bring many opportunities. The influences on people wanting to sell their businesses are still very much in play. Demand for investment, lack of succession and increasing regulation are only a few of them. What do you regard as the biggest threat to the motor industry in 2017? The uncertainty around Brexit is the biggest unknown. The effect on sterling is already being seen. On one level, it will increase inflation and reduce real incomes and, on another level, it may directly and adversely impact car pricing. It remains to be seen how profound these effects will be, though. Are there any reasons to be cheerful at the start of this new year? At the risk of being too philosophical, there are reasons to be cheerful at all times! We are very lucky to live and operate in a functioning democracy and in a first-world economy. If you have your health, that is all the better. It’s important to keep things in perspective. What are you most excited about right now? I’m most excited about the many brilliant initiatives we have around our ambition to lead the retail sector in customer experience. The work our teams are doing around people, technology and brand will power us forward to this goal and I expect to see significant progress in 2017.
2016 was another year of strong new car sales – do you see this continuing? In the longer run, I believe that new car sales will continue to rise with GDP and population growth. Inevitably, however, it will not be linear growth. Brexit has introduced some uncertainty and I would expect new car sales to fall back modestly in 2017. The long-term growth pattern will resume as the economy fixes itself. Do you think the motor industry needs to change? If so, in what way? We need to improve our image in the employment market. We are seen as too maledominated, with an overly aggressive sales culture and unsociable hours. If we are to attract and retain people from a more diverse talent pool, these issues will need to be addressed. What should dealers be focusing on to ensure growth and a sustained future in 2017? Invest in the things that will improve the business in the long run. At the same time, have a relentless focus on the ‘day job’ of managing the many KPIs to upper quartile performance. And finally, deal with the issues that are holding you back. Is there any habit that dealers should leave behind in their working lives? Everyone is different and, therefore, has different habits. In general, however, some of the more stereotypical habits that have existed in our sector should be left behind. Catching people making
Bigger shock of 2016, Trump or Brexit? The bigger shock to me was Brexit. We’re buying. What’s your poison? My favourite drink is Mersault white wine. Again, our treat. Pick any box set as a late Christmas present. I’m afraid I can’t find the time to watch box sets but if I could, it might be House of Cards. mistakes and publicly rebuking them is amongst the worst. Do the opposite. Catch them doing something good and publicly praise them. If you had a final word of advice for our readers, what would it be? I try to find as many opportunities to say ‘thank you’ as possible and if I make a mistake I’m happy to admit it and say ‘I’m sorry’.
‘Some of the more stereotypical habits in our sector should be left behind.’ 58 | CarDealerMag.co.uk
Paul
Philpott KIA: Your best staff need to be ‘locked in’ – create a culture that no-one wants to leave. What opportunities will 2017 present? Brands with new products will prosper. At Kia, we are right at the top of our product cycle. We launched three new products in 2016 (Optima, Sportage and Niro) and have four more new products to launch in 2017. Two thirds of our range will be brand new. That’s a BIG opportunity. What do you regard as the biggest threat to the motor industry in 2017? The demonisation of diesel cars. Diesel cars are now being banned from major cities around the world, yet it’s wrong to tar all diesels with the same brush. Yes, older diesels emit too much NOx and PM, but I understand it would take 42 million Euro 6 diesel cars to generate the same amount of NOx as one UK coal-fired power station. Cars contribute only 14 per cent of the UK’s overall NOx emissions, and we have invested millions in clean, efficient diesels to reduce this further yet our industry is under attack. Ultraclean EVs and hybrids are coming, but let’s make sure we have an orderly transition over a sensible period of time. Perhaps it’s time to replace older diesel cars with new Euro 6 diesels to drive down emissions in cities – should we be lobbying for a diesel scrappage scheme? Are there any reasons to be cheerful at the start of this new year? What, besides seven new Kias in less than two years? We have momentum, our 2016 sales were up 13 per cent, the network is profitable, we have just opened our new flagship dealership on the M4, and we have a great partnership with our dealers. That gives me reason enough to be cheerful. What are you most excited about right now? The very first Kia sports car. 2016 was another year of strong new car sales – do you see this continuing? It would be naïve to think a car market of almost 2.7m can continue when as a nation we have just taken the enormous plunge to leave the EU. But I think 2017 will still be one of the five biggest car markets on record. Do you think the motor industry needs to change? If so, in what way? Our industry is changing rapidly; just talk to the powertrain engineers! After 100 years of
Job title and company: President & CEO, Kia Motors UK & Ireland. Lives: Dorking, Surrey. Drives: Kia Sorento. Family: Married to Julia with two children: Georgie (13) and Jonathan (12). Education: BSc (Hons) in Finance from Loughborough University. Career: 1988-97: Ford Motor Company Ltd – variety of sales and marketing roles; 1997-06: Toyota GB plc – marketing director, commercial director; 2007-09: Kia Motors UK Ltd – managing director; 2009-12: Kia Motors Europe GmbH – chief operating officer; 2012-present: Kia Motors UK & Ireland – president and chief executive officer.
MINI CV
Bigger shock of 2016, Trump or Brexit? Brexit – its implications are potentially massive. We’re buying. What’s your poison? Gin and tonic (please!). Again, our treat. Pick any box set as a late Christmas present. Sherlock. the ICE, customers are already offered a range of alternatives: electric, hybrid, plug-in hybrids, range extenders, and fuel cell is not far away. And the pace of change is only going to accelerate. The very heart of our product is changing and this has
big implications for everyone in our industry. What should dealers be focusing on to ensure growth and a sustained future in 2017? New product launches and manufacturer marketing activities will drive new customers to the brand into dealer showrooms. So the primary focus of all dealers must be on retaining every customer for the long term by giving them unparalleled service in all departments. Is there any habit that dealers should leave behind in their working lives? Allowing staff turnover of 30 per cent or more to continue. Take steps now to lock in your best staff and build a great culture that no-one wants to leave. If you had a final word of advice for our readers, what would it be? If your customers love the service you offer, why would they ever consider going anywhere else?
‘Our industry is changing rapidly; just talk to the powertrain engineers!’ CarDealerMag.co.uk | 59
FEATURE.
Bek
Hassan CITROEN: The world around us is changing and we must be ready to change with it. What opportunities will 2017 present? For Citroën it’s about the launch of new products – the new C3 and a replacement for the C3 Picasso. Also the continuing evolution of the new DS brand as we work towards separation of the Citroën and DS brands in 2018. We have also launched our first DS Urban project at Westfield London, giving us an additional channel to market. What do you regard as the biggest threat to the motor industry in 2017? The potential risk of a slowdown in the economy post-Brexit and the subsequent knock-on effect it could have on the car industry. Also, rising oil prices and the effect that has on petrol prices could be a risk to sustained growth.
What are you most excited about right now? The new C3 will be the most important car we have launched in recent history – I’m really excited about the opportunity that this gives the Citroën brand in the UK. This is supported by the fact that our current performance in the B segment is poor, giving us real potential to grow in the largest segment of the market. 2016 was another year of strong new car sales – do you see this continuing? Yes, as consumer confidence remains high and the demand for products and services shows little sign of slowing. Do you think the motor industry needs to change? If so, in what way? The motor industry is already changing – customer behaviour is changing, providing information digitally is now of paramount importance and things will continue to evolve (eg e-commerce or online selling). Our DS
Job title and company: Managing Director, Citroën & DS UK. Lives: Royal Leamington Spa. Drives: DS5. Family: Married with three grown-up daughters. Education: Graduated from Stationers’ Company’s School. Career: Twenty-eight years in the automotive industry – last 24 years working for PSA (the last 11 years as a director).
MINI CV
Are there any reasons to be cheerful at the start of this new year? The fact that our industry continues to prosper despite the uncertainty over what the future will look like. Remember that the UK is the second largest market in Europe and it will continue to play a significant part in Europe and beyond.
Urban Store at Westfield shows that we are evolving our business model to adapt to the ever-changing environment. What should dealers be focusing on to ensure growth and a sustained future in 2017? Dealers need to focus on good-quality business – strong retail sales will help them with sales in the short term and better retention in the long term. Is there any habit that dealers should leave behind in their working lives? Dealers can often be too short-term in their approach to customers. They need to acknowledge that customers are at different points in the purchase journey and some dealers need to learn how to better cultivate customers during the earlier stages of that journey – i.e. ensure that they are keeping the customer well informed about product developments and the introduction of new services.
Bigger shock of 2016, Trump or Brexit? Brexit, as it came first. I was less surprised by the Trump victory as it seemed anything was possible. We’re buying. What’s your poison? I’m teetotal, so I would probably say a Diet Coke! Again, our treat. Pick any box set as a late Christmas present. Definitely Planet Earth! If you had a final word of advice for our readers, what would it be? We need to understand that the world around us is changing and that we must be ready to change with it. Customer expectations are changing – they want more flexibility, easier access to information at times that suit them and, of course, great customer service.
‘The new C3 will be the most important car we have launched in recent history.’ 60 | CarDealerMag.co.uk
Philip
Crossman
HONDA: More engagement with customers is needed to improve loyalty rates.
Job title and company: Managing Director, Honda (UK). Lives: Coventry. Drives: Honda CR-V. Family: Son and daughter and a common-law stepson and daughter. Education: Chartered Management Accountant Career Apprentice at Triumph Motor Co 1973, joined sales and marketing in 1980 (by then it was British Leyland). In 1982, joined Peugeot (originally Talbot) for nine years, then joined the start-up team at Nissan GB during the takeover from Nissan UK. Finally, joined Honda in 2000, ending up as MD in March 2013, after heading up dealer development and the car operation twice. All roles have revolved around business management, regional sales and dealer operations, while the time at Nissan included being MD of their retail dealer group Aprite.
MINI CV
What opportunities will 2017 present? There will be a market for those who are inventive, agile and responsive to customers’ needs and habits, and a lot of people will be coming to the end of PCP and lease deals. The market is there for those who proactively hunt the opportunities. What do you regard as the biggest threat to the motor industry in 2017? The motor industry itself... lack of investment in bringing bright young talent into the retail industry and creating a solid training and career growth plan. This is a great industry – we do not sell it well enough or attract enough new talent. Are there any reasons to be cheerful at the start of this new year? Every new year brings new opportunities. There will still be a great market for those who look for it. The level of new product coming to market is outstanding. Those who have the energy and resource to maximise it will be very profitable. What are you most excited about right now? The industry is about to enter a very exciting new stage – autonomous developments, new power sources such as electrification and hydrogen becoming mainstream and new materials – it’s going to be a great next 100 years. I get very inspired by the talent of the young people on our graduate development programme – they can have a wonderful career in this business.
2016 was another year of strong new car sales – do you see this continuing? There will be a slowdown in demand but the market won’t stop – the market level will be governed by how much product is forced into the market. The biggest threat is the used car market and its ability to grow and absorb two- to threeyear-old cars. If we are not careful, retail prices will fall, making new cars less competitive. Do you think the motor industry needs to change? If so, in what way? The industry has to adapt to changing customer habits. More engagement with customers is needed to improve loyalty to both the dealer and brand. There is too much investment in expensive showroom facilities and not enough in relationship building or staff recruitment and development. What should dealers be focusing on to ensure growth and a sustained future in 2017? Retention of customers through first-class aftersales management, creating lifetime loyalty with the dealership. Invest in customer-facing staff who are genuinely interested in solving customers’ issues. The biggest cause of customer complaints is ‘no-one called me back’. Is there any habit that dealers should leave behind in their working lives? Stop recycling the same sales people around the industry, develop new talent and make
Bigger shock of 2016, Trump or Brexit? Brexit. If the referendum was held tomorrow we would get the opposite result. If the US election was re-run, Trump would win by a greater majority. We’re buying. What’s your poison? Pint of Guinness, please. Again, our treat. Pick any box set as a late Christmas present. Coventry City’s greatest games – it would be a small box set! your business one of the best and most vibrant businesses to work in, in your town. Also lose the habit of not phoning customers back and not following them up. If you had a final word of advice for our readers, what would it be? Concentrate on retaining customers, put energy into recruiting new talent and be ruthless on kaizen (continuous improvement) in aftersales. There is a massive source of untapped profit opportunity out there.
‘The market is there for those who proactively hunt the opportunities.’ CarDealerMag.co.uk | 61
FEATURE.
Ken
Savage
PERRYS: The disciplines of good marketing, stock control and debt collection are still key.
Job title and company: Chairman, Perrys Group Ltd. Lives: Milton Keynes. Drives: Ford Focus RS. Family: Married, two sons. Education: Manchester Polytechnic. Career: KPMG, Quicks Group plc, Perrys Group Ltd.
MINI CV
What opportunities will 2017 present? In 2017, new cars are likely to become more difficult with higher prices and less manufacturer support. We will have to ensure we have a strong used car business. What do you regard as the biggest threat to the motor industry in 2017? Exchange rates will drive up inflation both for cars and general goods; people will have less disposable income. Are there any reasons to be cheerful at the start of this new year? I’m always cheerful in January, a new year brings a new start. Perrys is well-placed to have a good year. What are you most excited about right now?
We have been working on some new initiatives in 2016 – we should start to see the benefit in 2017. 2016 was another year of strong new car sales – do you see this continuing? The new car market will almost certainly soften in 2017. Hopefully it won’t stall. Do you think the motor industry needs to change? if so, in what way? It needs to evolve. We need to work with our manufacturer partners to become more efficient. What should dealers be focusing on to ensure growth and a sustained future in 2017? Just the normal disciplines of good marketing, stock control and debt collection. If we do the basics well, everything will fall into place. Is there any habit that dealers should leave
What was the bigger shock of 2016, Trump or Brexit? Brexit. We’re buying. What’s your poison? G&T. Again, our treat. Pick any box set as a late Christmas present. Suits. behind in their working lives? Dealers need to understand they can’t sell their way out of problems, problems should be recognised early doors and dealt with. This is not just referring to used car stock, it applies across the business. If you had a final word of advice for our readers, what would it be? Do what you do well.
‘The new car market will almost certainly soften in 2017. Hopefully, it won’t stall.’ 62 | CarDealerMag.co.uk
The Automotive Influencers
in pictures
CarDealerMag.co.uk | 63
64 | CarDealerMag.co.uk
FEATURE.
Stefan
Voloseniuc
AUTOVOLO: Some great innovations are coming for 2017 which will make people take notice.
What opportunities do you think 2017 will present? For the industry, there is so much new technology to help us – and consumers – get the best deal and make life easier and more profitable. For me personally, 2017 is the year we will build on our growth. There’s an appetite for change and we will feed it.
the established players to feel the heat of serious competition. We also have some great innovations coming which will really make people take notice.
What do you regard as the biggest threat to the motor industry in 2017? Uncertainty. When you don’t know what’s going to happen you don’t want to invest – whether you are a business or an individual who is buying a car.
2016 was another year of strong new car sales – do you see this continuing? I think there will be a dip in the new car market as the effect of exchange rates finally starts to bite. The UK is no longer such a profitable place to dispose of excess production. The record sales of the past few years will also mean there is much more supply in the used market, pushing down residuals and making it more expensive to finance a new car.
Are there any reasons to be cheerful at the start of this new year? Well, business is buoyant in the industry and cars are moving at the right price. It’s going to be an interesting year in so many ways but those who are bold and read the situation right will not only survive, but thrive. This is clearly a time when established giants can be toppled – whether it’s in politics or business.
Do you think the motor industry needs to change? If so, in what way? I think used car PCPs will change the shape of the market. Finding homes for the glut of used car stock coming off lease and finance will be crucial. Currently buyers see that they can finance a new car on PCP for less than it costs to take HP on a used car. Once used car PCPs become widespread the natural balance can return.
What are you most excited about right now? Our growth and the support we are receiving from the industry. There’s a clear need for
What should dealers be focusing on to ensure growth and a sustained future in 2017? Customer service. The dealers who survive and
Job title and company: CEO, AutoVolo. Lives: London. Drives: Bentley Continental GT. Family: Married, three children. Education: Civil engineer. Career: Successful businessman.
MINI CV
Biggest shock of 2016, Trump or Brexit? Brexit, I think. It proved that anything could happen. We’re buying. What’s your poison? Guinness. Again, our treat. Pick any box set as a late Christmas present. Waste of Time.
thrive are the ones who return calls and behave in a trustworthy manner. It constantly amazes me that businesses will invest so much money in advertising and then not call back a hot lead. Is there any habit that dealers should leave behind in their working lives? It’s easy just to do things the same way. But times, and technology, are changing. You need to get out there and talk to people to stay ahead. If you had a final word of advice for our readers, what would it be? Pay attention to where your customers are coming from and what they want.
‘Those who are bold and read the situation right will not only survive, but thrive.’ CarDealerMag.co.uk | 65
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FEATURE.
Victor
Coutin GARDX: Don’t pre-judge the customer and remember – profit is not a dirty word. What opportunities will 2017 present? The motor industry continues to be one of the best industries to work in. This year will have its challenges, especially with the Brexit influence, but I am convinced GardX will enjoy further growth, especially in our insurance business and our new Advantage 360 platform. Our international sales in the Middle East and Asia show significant opportunities and the Russian market beckons. What do you regard as the biggest threat to the motor industry in 2017? Profitability on new cars could be an issue due to the tighter margins on chassis profit that is driven by manufacturers and consumer offers. It is becoming increasingly difficult on new cars to maintain PPU and this in turn affects used cars by making them seem less attractive to a consumer. Stock turn is therefore affected and write downs on used cars is becoming more of a problem. Equally, weak sterling could prompt price increases for some manufacturers. Are there any reasons to be cheerful at the start of this new year? There are always lots of reasons to be cheerful. We finished 2016 almost 40 per cent up on 2015 and I am confident we will continue to grow. A new year brings new opportunities and a chance to focus on our key objectives for 2017. GardX is set for an exciting year ahead. We have made some great additions to the team and attracted some important dealer acquisitions during 2016. This year is going to be another big year for us. What are you most excited about right now? Our ever-growing product portfolio and our new Advantage SPIN 360 product which is a game-changer for any dealer that takes it on. This exciting new product is generating massive interest within the industry wherever we show it and overwhelming consumer acceptance. It’s proven to increase vehicle sales. 2016 was another year of strong new car sales – do you see this continuing? Although consumer confidence is falling, we believe new car sales will continue to grow in the first quarter but perhaps not at the rate we have experienced in the last few years and may slow down as the year progresses. A new scrappage
Job title and company: Managing Director, GardX International Ltd. Lives: Dubai, UAE. Drives: BMW 7 Series. Family: Three boys and two daughters. Education: Chichester College; Henley Management College. Career: Motor industry through and through, oil in my veins and sales in my DNA.
MINI CV
Bigger shock of 2016, Trump or Brexit? Trump. The world’s gone mad! We’re buying. What’s your poison? Gin, lots of it! Again, our treat. Pick any box set as a late Christmas present. Game of Thrones, Season Six. scheme would be a welcome initiative during 2017 and could counter any drop in the market. Do you think the motor industry needs to change? If so, in what way? The industry is constantly changing, with new products, new ideas and new technology. It’s vitally important dealers keep up with the pace of change in all departments if they are going to keep ahead of the game. What should dealers be focusing on to ensure growth and a sustained future in 2017? Maintaining their existing consumer database with key touchpoints throughout the year –
repeat business is vital. Encouraging dealers to work within a strong sales process ensuring that all opportunities available to them have been explored. Given the pressure on chassis profit, it is more important than ever to promote the sale of add-ons that can increase profitability but more importantly these products can help retain the customer and provide vital income into the aftersales departments. Is there any habit that dealers should leave behind in their working lives? Pre-judging the customer. It is all too easy to make a judgment on behalf of a consumer on what they may or may not buy. The days of the hard sell are behind us and we must start to have a more consultative approach and not forget the consumer has a choice. If you had a final word of advice for our readers, what would it be? Embrace change, especially new technologies. The motor trade is a vibrant, evolving industry. Take every day as a new opportunity and remember, profit is not a dirty word especially when coupled with exceptional customer satisfaction!
‘2017 will have its challenges but I am convinced GardX will enjoy further growth.’ CarDealerMag.co.uk | 67
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FEATURE.
Philip
Nothard
CAP HPI: Consumers today are information-hungry – grasp that, and you will retain more of them.
Job title and company: Retail and Consumer Specialist, Cap HPI. Lives: Rishworth. Drives: Audi A3. Family: I’m lucky to live with Sarah, who is also in the motor trade, which helps. And I have a car-mad 18-year-old son. Education: In the automotive industry. Career: DC Cook, Lancaster, Minster Jaguar, Carland, Lythgoe Motor Group, Arnold Clark.
MINI CV
What opportunities will 2017 present? Uncertainty around the UK economy and sterling will likely make the coming year more volatile. Dealers of all sizes have proven to be resilient in a rapidly changing market and highly adaptable to trends like the growth of PCP and tactical registrations. We expect values to continue to be affected by the seasonal market into 2017. Pressure will remain on nearly new city cars and superminis as supply continues to exceed used demand. What do you regard as the biggest threat to the motor industry in 2017? Strong demand characterised a market that supported record used volumes in 2016. The market was set to hit 7.6m vehicles in 2016, beating the figure of 7.2m for the year before. Although we have seen larger used volumes, values have tracked established seasonal trends. Demand will be key to supporting used values over the coming 12 months. Are there any reasons to be cheerful at the start of this new year? A strong final quarter of 2016 has supported unseasonably strong demand, and as we move into 2017, there is no evidence that demand is weakening in the used market. The last 18 months have seen continual growth and acquisitions across the sector, and we will no
doubt see this continuing through 2017. What are you most excited about right now? The UK’s love affair with the car continues to reach unprecedented levels. Both the new and used car markets are up in 2016 on last year’s record figures. 2016 was another year of strong new car sales – do you see this continuing? The availability of cheap finance and a growing acceptance of ‘cost to drive’ over ‘cost to own’ models of ownership in the new and used markets are driving up the frequency of purchase. While the weakness of the pound will put pressure on price increases, various finance models have the ability to absorb some of the shock. It is worth keeping in mind that a five per cent drop in the market, mooted by the SMMT, would still make 2017 the sixth biggest year on record for new car sales. Do you think the motor industry needs to change? If so, in what way? Data creates a more transparent relationship between dealer and buyer, and this should be embraced. Understanding that consumers are information-hungry will improve transparency, customer service and customer retention. What should dealers be focusing on to ensure growth and a sustained future in 2017? Buyers and sellers are using the internet to both
Bigger shock of 2016, Trump or Brexit? I don’t do politics (or football). We’re buying. What’s your poison? A nice single malt. Again, our treat. Pick any box set as a late Christmas present. The Old Grey Whistle Test. I’m always on the hunt for new ideas to add to my vinyl collection.
research and transact purchases. The abundance of information and pricing data is driving retailers to become more efficient. A digital strategy should sit at the heart of every business. Is there any habit that dealers should leave behind in their working lives? Embrace any technology and innovation that improves efficiency and inevitably performance and profitability. If you had a final word of advice for our readers, what would it be? Use data to understand your buyers and match what you are selling to what they are buying.
‘The UK’s love affair with the car continues to reach unprecedented levels.’ CarDealerMag.co.uk | 69
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FEATURE.
Michael
Buxton COX AUTOMOTIVE UK: It’s important to ensure that people’s interaction needs are being met. What opportunities will 2017 present? No matter what sector they are in, I think most businesses are realising that they are really a customer service business. In our increasingly connected world, there has never been a better opportunity to build deeper and more meaningful relationships with customers. The opportunities in our digital world to improve the customer experience through data and better understanding are enormous. What do you regard as the biggest threat to the motor industry in 2017? The biggest threats are certainly external, outside influences. Specifically in 2017, despite parliamentary support for the government’s timetable to trigger Article 50, there is still debate about whether we will actually leave the European Union. As the UK is a net importer of cars from a retail perspective, if exchange rates are overly impacted, this could have a negative effect given the wider economy is largely supported by consumer debt and credit. Are there any reasons to be cheerful at the start of this new year? The economy is strong, and unemployment and interest rates are both low, which can only be good things for any business. From our perspective, despite the economic challenges in recent years, we have experienced 20 years of successive business growth, with fantastic growth seen in 2016 and more to come in 2017. What are you most excited about right now? The shift from the traditional customer model to a more connected customer experience. Bridging physical operations and the digital world is really exciting and presents incredible opportunities for all businesses – including Cox Automotive. Data is helping us understand our business better, as well as helping our customers to better understand and grow theirs. 2016 was another year of strong new car sales – do you see this continuing? Through our own analysis and conversations with our customers, we think the overall market will remain robust with strong performance in 2017. The actual numbers could go either way, but we are expecting to see fairly limited movement in any case.
Job title and company: CEO, Cox Automotive UK. Lives: Sheffield. Drives: Porsche Macan. Family: Married with three children (two daughters and a son). Education: University of Liverpool, economics. Career: Since 1994, he has been the finance director, chief financial officer, chief operating officer and then chief executive officer of Cox Automotive UK.
MINI CV
Bigger shock of 2016, Trump or Brexit? Brexit. We’re buying. What’s your poison? Argentinian Malbec. Again, our treat. Pick any box set as a late Christmas present. Cold Feet. Do you think the motor industry needs to change? If so, in what way? The motor industry is ultimately all about products that don’t stand still, and neither do its customers, so the core change required is the ongoing imperative to adapt to their changing requirements. Customers are increasingly influencing when, where and how they interact
with businesses, so we all need to ensure that we are meeting their needs. What should dealers be focusing on to ensure growth and a sustained future in 2017? As always, dealers should be focused on the customer, capitalising on opportunities to deliver efficiency and added value wherever they can. Digital presence and experience continues to be a priority. Is there any habit that dealers should leave behind in their working lives? It doesn’t just apply to dealers, but I’m personally not a fan of being asked for my personal details too early in any conversation, especially when I may just have asked a simple question. If you had a final word of advice for our readers, what would it be? A key part of business is enjoying it, so remember to have fun.
‘We think the overall market will remain robust with strong performance in 2017.’ CarDealerMag.co.uk | 71
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72 | CarDealerMag.co.uk
FEATURE.
James
Hind
CARWOW: You’ve got to evolve to offer what customers really want, so don’t be left behind.
Job title and company: Founder & CEO of carwow. Lives: London. Drives: Mercedes-AMG C63 S Coupe. Family: Partner. Education: University of Nottingham, finance. Career: Ski guide, carwow.
MINI CV
What opportunities will 2017 present? There’s lots of appetite from most manufacturers and dealers to adopt new methods of selling cars and we’re excited by this enthusiasm and positive attitude. We’re looking forward to working with new partners, working closer with existing partners and watching how this fascinating industry adapts to a changing world. What do you regard as the biggest threat to the motor industry in 2017? Consumer confidence impacting car sales. It’s an uncertain world out there. Are there any reasons to be cheerful at the start of this new year? The latest cars are better than ever, and the innovation and technological evolution mean consumers have a huge range of amazing models to choose from, which will massively help sales. What are you most excited about right now? We have lots going on – but I’m especially excited about our huge new advertising campaign. It launches in February 2017 across TV, radio and outdoors, and will aim to increase awareness and
understanding of carwow with consumers. 2016 was another year of strong new car sales – do you see this continuing? It all depends on how desperate manufacturers are to push cars through the UK. We don’t see true consumer demand increasing at all, thanks to the diminishing of consumer confidence, upcoming price hikes and rising interest rates. Do you think the motor industry needs to change? If so, in what way? Completely. Car dealers are still portrayed by the general public as untrustworthy, which is usually grossly unfair, but that feeling creates a real barrier they feel they have to overcome to buy a car, which leads to fewer sales. What should dealers be focusing on to ensure growth and a sustained future in 2017? Invest more in hiring, training and retaining great people. People are at the heart of every business and are critical to adapting to change and providing outstanding customer experiences. While digital plays an increasingly large role in the sales process, it still requires an excellent
Bigger shock of 2016, Trump or Brexit? Trump. We’re buying. What’s your poison? Just a beer thanks. Again, our treat. Pick any box set as a late Christmas present. House of Cards. team to run those processes and interact with potential buyers. Is there any habit that dealers should leave behind in their working lives? The scepticism about change. Just because the car industry hasn’t been as affected by the internet as much as most other industries, and that big companies have tried and failed to change it, doesn’t mean that change won’t happen, and happen swiftly. If you had a final word of advice for our readers, what would it be? Many once-successful companies have been left behind by being too slow to evolve to offer what customers really want. Don’t be one of them.
‘People are at the heart of every business and are critical to adapting to change.’ CarDealerMag.co.uk | 73
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FEATURE.
Alan
Graham SUPAGARD: Make sure you sell the benefits of products as well as simply majoring on price. What opportunities will 2017 present? The SMMT’s member survey in 2016 reported that 77 per cent of their members said that remaining in the EU was best for their business, particularly among their large members with 88 per cent being in favour of remaining part of the EU. While the ultimate outcome of Brexit is unclear, I think that despite the outcome of the vote, there could still be opportunities to maintain and perhaps grow the market a little in 2017 and not follow the predicted doom reported in much of the media. Fantastic opportunities also exist around the continued adoption of digital strategies. What do you regard as the biggest threat to the motor industry in 2017? The uncertainty around Brexit and in particular the volatility we are seeing with exchange rates. From a supplier perspective across the industry it presents a challenge to maintain necessary margins and the same impact could be seen with vehicle prices increasing. I’m not convinced we’ll see much demonstrable difference to consumers post-Brexit, with the biggest challenges being faced by companies with a B2B core, although the cost of fuel and food is likely to rise. Are there any reasons to be cheerful at the start of this new year? Absolutely, there is a plethora of fantastic new model launches planned throughout 2017 and we expect the total new car market to still be around the fifth or sixth largest in UK history. Consumer offers remain attractive and in terms of value for money, I don’t think the consumer has ever had it better when it comes to purchasing a vehicle. What are you most excited about right now? 2017 is going to be an amazing year for Supagard with us launching in a number of new international markets as well as some fantastic enhancements to our product line-up and dealer support platforms. 2016 was another year of strong new car sales – do you see this continuing? Predictions from our main dealer and OEM clients are variable regarding their 2017 expectations, with an average of the data we have received showing a largely stable 2017, maybe just down a little from 2016. The competitiveness
Job title and company: Global Head of Sales at Supagard Ltd. Lives: Stirling. Drives: Mercedes-Benz E-Class. Family: Two sons. Career: Worked with US insurance brokers Marsh before joining Supagard in 2000. Started as a regional BDM in Scotland, then area manager, UK key account manager, international head of sales then appointed as head of sales for Supagard’s full global sales operation.
MINI CV
Bigger shock of 2016, Trump or Brexit? Brexit. We’re buying. What’s your poison? Joker IPA, produced by Williams Bros. Brewing Co in Alloa, close to where I live. Again, our treat. Pick any box set as a late Christmas present. Billions. among brands and the attractive consumer offers available should ensure a strong performance albeit, as I’ve mentioned, there does need to be a slight cautionary note around the impact of the value of the pound on consumers’ spending habits, most notably as a result of the anticipated increase in fuel and supermarket prices. Do you think the motor industry needs to change? If so, in what way? I think the continued adoption of more and more digital platforms and initiatives is vital and runs through all aspects of the industry, from suppliers to retailers. The way consumers interact with retailers is constantly evolving and as suppliers we need to recognise this and provide our dealer customers with the tools and platforms necessary
to embrace this. We also need to ensure that our staff are competent and knowledgeable in this area of the business. What should dealers be focusing on to ensure growth and a sustained future in 2017? I’m a firm believer in focusing on the quality of staff and the training, coaching and support provided to ensure that they (a) can deliver exceptional levels of service, and (b) are adequately coached to deal with the changing approach to retail from consumers. Is there any habit that dealers should leave behind in their working lives? At times we see some dealers focusing almost exclusively on the purchase price of supplier offerings and largely ignoring the quality of the offering and value for money presented to the consumer. Whilst purchase price is obviously an important part of any offer, it needs to be carefully balanced with the value and benefit given to the end consumer. If you had a final word of advice for our readers, what would it be? Maintain the continued focus on staff development and in particular their ability to deliver exceptional customer service. [CD]
‘Fantastic opportunities exist around the continued adoption of digital strategies.’ CarDealerMag.co.uk | 75
FEATURE. 100 DAYS OF TRADING UP
Blags, begs and borrows pay off We’ve finally completed our 100 Days of Trading Up challenge – handing over a whopping great cheque to Great Ormond Street Hospital. JAMES BAGGOTT reports
A
fter an intense period of buying and selling for our 100 Days of Trading Up challenge, you might be wondering why things went very quiet all of a sudden. Well, that’s mostly my fault, but finally I can report some good news – we’ve sold the last car. For those of you feeling a little in the dark – and to be honest I can’t blame you, as my last update was way back in Issue 103 – indulge me a little as I recap. You may recall that to celebrate our 100th issue I decided to embark on 100 Days of Trading Up to try to make as much money as possible for Great Ormond Street Hospital. When I say ‘trading up’, what I really meant was begging as many dealers as possible to let me have a part exchange for a lot less than it CAPCleaned at, so I had the biggest chance possible to add as much cash to my pot after each move. To start our challenge, those lovely people at Lookers promised to find me the first car. Very soon, MD Nigel McMinn called to say he’d set me up a beauty at his Northern Irish outpost, Charles Hurst. A few weeks plus a budget airline flight later and I was sat chatting to the site’s boss, Colin McNab, about the starting motor. After a tour of the amazing facility he oversees, he handed over the keys to my first car in exchange for 100 of my pounds. That sturdy silver Lexus LS430 was packed with gadgets and enough buttons to keep even me entertained for many, many minutes. It had cooling seats, blinds and a sat nav that made Windows 95 look modern. But everything worked, it was comfortable and, most
importantly, was worth a hell of a lot more than the 100 quid I paid for it. After a very strange night crossing back from Ireland to Liverpool – a journey I don’t wish to repeat any time soon – I was already on my way to my first trade. The good people at Perrys had offered to take the Japanese Mercedes in exchange for a 10-plate fridge-like car. By fridge, I mean it could have frankly been anything, purely a commodity to be traded on as quickly (and I mean as quickly) as possible. The deal was a good one. For the Lexus, the kind Perrys people gave me £3,500 and I drove away the 69k-mile car, which shall remain nameless, worth around £4,300. CarShop answered my call for assistance to take it off my hands quickly and told me to drive from the Perrys Preston site straight to their sprawling dealership in Northampton. So that I did and before the day was out I’d turned my Lexus, worth £100 to me, into a 13-plate Peugeot 208. After that, the Trading Up game slowed, and the little French car sat unloved in our office car
park for a few more weeks than it should have done while I desperately tried to find another swap. Eventually, one materialised. Richard Hollis of Jardine told us to head to his firm’s Porsche centre in east London. Waiting for me was a stunning trade – they whisked away my Peugeot and swapped it for a 56-plate Mercedes E Class 320 CDI Estate. Not wanting to slow the process down – and knowing I’d got a cracking trade with the Merc – I decided to head straight to BCA Blackbushe with the German and get it through the block as quickly as possible. Blackbushe boss James Gibson did us proud, getting the wheels refurbished and the parking dents sorted by Penningtons, followed by a class valet from on-site experts Motorclean. The results were incredible and it showed in the return – I banked a whopping £7,100, a full £1,100 more than it booked at. With a wedge of cash burning a hole in my pocket I knocked on several virtual car dealer doors and eventually Marshall Motor Group CEO Daksh Gupta answered. He scoured his group’s extensive collection of used cars and came up with a winner – an Audi A1 on an 11-plate. With just 36k on the clock, the little Audi was up for sale at the group’s Wimbledon outlet for £10,990, but we were going to move it on at trade prices. I offered the Audi to a few contacts but came up short, so with the 100-day deadline looming, I decided to stick it through the block again at BCA. With its owner’s manuals and two keys all still present, it sold for £8,450. The race was now on to find a final car to buy at trade – but this time I planned to flog it retail to make
Vauxhall Astra
Peugeot 208
Buying the BMW at Too Good To Auction
THE ONLY WAY IS UP Lexus LS430
Handed Lookers £100 for Lexus. CAP Clean value £3,500 76 | CarDealerMag.co.uk
Perrys takes Lexus and hands over Vauxhall Astra Diesel. CAP Clean value circa £4,300
CarShop exchanges Vauxhall Astra and hands over Peugeot 208. CAP Clean value £5,000
Too Good To Auction’s Patrick Worth, left, hands over the 61-plate BMW 325D M Sport to James the most possible for GOSH. Enter, stage left, Snows Group director Neil McCue serving up a lovely BMW 325D M Sport. With just 66k on the clock and an impressive spec, it was the ideal last car. I picked it up from the group’s used car set-up in Southampton, Too Good To Auction, where sales manager Patrick Worth had cleaned it especially. The 61-plate car owed the group £9,250, but we bagged it for the cash left in the pot – while retail was estimated to be more than £10,500. Scratching my head as to how to get the most money for it, I decided to head back to where it all began and chat to McMinn at Lookers. His firm had recently snapped up the Knights BMW and Mini Group for £27.2m, so I thought they’d be perfectly placed to retail the 3 Series for us. And being the true gent he is, McMinn duly obliged and sent our BMW for sale at his Stafford site, where it went for a whopping £11,000! Not bad going from £100, I’m sure you’ll agree. By the time the cheque had been issued and
Mercedes E Class 320 CDI Estate
Jardine’s Porsche Centre East London takes the keys to the 208 in exchange for the Merc. Sells at BCA auction for £7,100
cleared it was Used Car Awards time, so we decided to try to top up our grand total for GOSH with a charity raffle at our big event. The welloiled award-goers gave generously – adding £3,209 to the pot on the night. So, after six months of blagging, begging and borrowing, I made my way to Great Ormond Street Hospital to hand over a rather comedy-sized cheque for the grand total of £14,209. When I got there, fundraising executive Jenny Pearce told me: ‘Thank you for all your hard work. I’ve reserved your donation towards some replacement theatre equipment so that our surgeons can continue to provide word-class care.
The cheque for £14,209 is given to a delighted Jenny Pearce at Great Ormond Street Hospital ‘For GOSH to continue to provide a safe and efficient surgical environment, the operating theatres urgently need new equipment. The money you have raised will go towards this.’ Thanks to everyone for their help with this worthy cause – and if you’ve got any ideas about what we should do next, get in touch. You can email me at james@thebaize.com or tweet me @CarDealerEd. [CD]
GOING FROM NOTHING TO A PORSCHE IN AID OF BEN FOR those long-term readers of Car Dealer, you’ll know this isn’t my first rodeo. In 2011 I embarked on trading up from nothing to a Porsche 911 – on that occasion for automotive industry charity Ben. It was something I managed – albeit some 18 months later – buying a Porsche 911, 996 model, which I eventually sold for £12k. Now, what shall I do next?
Audi A1
Buy Audi from Marshall’s Wimbledon Audi for £7,100. Sells at BCA auction for £8,450
BMW 3 Series
Buy BMW from the Snows Group for £8,450 Sells at Knights BMW, Stafford, for £11,000 CarDealerMag.co.uk | 77
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FEATURE.
SOME LIKE IT HOT... JAMES FOSSDYKE and LAURA THOMSON put models from Nissan and Ford to the test in the sands of the Sahara and the freezing conditions of the Arctic Circle.
C
ars aren’t purely tested in the environment they will experience every day any more, they need to be pushed to their absolute limits. Manufacturers go to extreme lengths to ensure that their cars can handle more than we would ever expect of them, testing every component to the highest temperature, exposing them to corrosive liquids and the brightest UV lights. Even in the UK, cars go through far more than we give them credit for. Many will spend their days outdoors in sunlight, or exposed to water, and temperatures can drop below zero Celsius or reach over 30 (very, very occasionally). Car Dealer Magazine has been given the opportunity to put two cars – and two of our willing writers – to the test in some seriously extreme environments. We sent Laura Thomson north to Norway, where she would be testing Ford’s everyday family 4x4 the Kuga in some freezing, snowy and perilously icy enviroments. And we transferred James Fossdyke south to Africa where he would drive a Nissan Navara pick-up across the dry and sandy Sahara. Kuga has been doing incredibly well since its UK launch in 2005. The European market
80 | CarDealerMag.co.uk
has been calling for small soft-roaders and demand for the Kuga is increasing every year. In 2016, 35,476 were registered in the UK. Luke Parksby, new car sales executive at Hendy Ford Fareham, feels the Kuga is up to the challenge thanks to its fully-adaptive suspension and said: ‘It’s probably one of the comfiest vehicles we offer. Having not been off-road in it myself, I couldn’t give you a fully accurate representation of what it is capable of, but it can face all the potholes and every kind of bump that you’d expect from a wonderful British road.’ With the average Kuga buyer in the UK being in his or her early-50s, it doesn’t sound like the Kuga will often be put through its paces like this, but we’ll do it anyway! Managing director of Wellington Motor Group, Michael Finn, who holds a Nissan franchise in Taunton, is confident about the Navara’s rugged, off-road capabilities too. He said: ‘We’ve got people who use it as a commuter vehicle and it’s very popular as a family vehicle now also, but at the same time we have a lot of people who really do work them. ‘The majority of the vehicles we do sell tend to be the high-spec ones, but it is tough and will do the work – people are working them! It’s moved more and more into a lifestyle vehicle, and that’s a good benefit for us in regards to pure sales volume. It will do both jobs, definitely.’
...SOME LIKE IT COLD CarDealerMag.co.uk | 81
FEATURE.
Feel the heat: Nissan Navara in Morocco JAMES FOSSDYKE reports from North Africa.
D
eep in my psyche lies a very intense kind of hatred. Normally it’s reserved for really bad things – the M25, football referees, Christmas in November – that kind of thing. This morning, however, it’s aimed squarely at an exceptionally irritating noise. I’m sure you know it; the bubbly jingle devised by the makers of a popular type of smartphone to be the morning call of weary travellers. Now, as the upbeat tones pierce the darkness to interrupt my dreamless sleep, the luminous hands of my watch point at the ungodly hour of 4:30am. Still half asleep, my right arm flails wildly, searching in vain for the bedside table and the snooze button, before I realise that I’m not in my warm, comfortable bedroom, but 1,200 miles away in south-eastern Morocco. Split in two by the legendary Atlas mountain range, the north African kingdom features areas of lush greenery, jagged peaks and barren desert. It’s the latter I’ll be visiting today, my Nissan Navara taking me across the rocky wilderness to the shifting sands of the Erg Chebbi dunes. I eventually drag myself out of bed and call on the freezing water of the less-than-luxurious shower facilities to bring me to my senses. Suitably awoken, I shoehorn myself into my dusty clothes and head down for breakfast. Running on nothing but outrageously strong coffee and a dry pain au chocolat, I clamber into the Navara, give the starter button a tired prod and crawl out of the hotel car park in convoy. Apparently, though, we aren’t the only ones to have risen early this morning. Cruising through town, the market appears to be in full swing. There are people everywhere, and almost all of them turn and wave at the big, orange trucks that pass through. Eventually, the town gives way to the desert, the tarmac road surface cutting through the barren landscape. But after a few miles, I turn off the road, following a well-worn but unsealed track into the wilderness. When you say ‘desert’, most people think of the pale sands of Arabia, but this part of the Sahara is more Martian than that. Small, sharp stones and jagged rocks sit on a bed of rusty red sand, and they pepper the underside of the Navara as it races through the desert, clicking and clanging as they hit the solid metal of the chassis and running gear. Sometimes the track, which is well worn by the passing of so many 4x4s before me, meanders around an outcrop of rock the size of a bungalow, and I turn in, bury the throttle and feel the Navara’s back end come into play. In my mind, I’m going full Ken Block, but I suspect the rest of the convoy just sees a Navara having a little
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‘Ahead of me, the dunes seem to grow even larger, their wind-sculpted peaks reaching into the blue-grey sky.’ ‘moment’ in the middle of every corner. As the stones grow a little sparser, and the sand turns slightly less red in colour, my fun is cut short. The surface is getting softer, so I reduce my pace and engage the four-wheel-drive system. My drifting days are over, for now. Nissan says the Navara I’m driving is a standard Spanish-spec vehicle, and a quick poke around the engine bay and suspension suggests that the company is more or less telling the truth. That the truck can tackle deep, dried-up river beds so easily, then, is mightily impressive. Of course, it’ll face greater challenges than this later today, but it just doesn’t bat an eyelid as it plunges down what was once a river bank and cheerfully negotiates the sandy ‘oued’ floor without so much as a quarter-turn of wheelspin. On climbing back out of the dusty river bed, I see my first dune looming. At maybe 30ft tall, it looks pretty sizeable, but the view from the top confirms my fears: this is a tiddler compared with what I’m about to face. Ahead of me, the dunes seem to grow even larger, their wind-sculpted peaks reaching into the blue-grey sky, and the sand I’m driving over becomes deeper and clingier. The wind, which had previously gone unnoticed, whips up a thin mist of sand, and that combines with the dust thrown up by the other half-dozen vehicles in the convoy to dramatically reduce visibility. It causes problems inside the car, too, where a film of yellowish-grey sand has made camp on the Navara’s cabin plastics and nestled into the stitching of the seats – I can feel its grit between my teeth and toes. With little to see besides the awesome but foreboding dunes beside us, we let almost all of the air out of our tyres, switch the gearbox into
low-range and set off. Driving on sand dunes isn’t especially difficult, but once it starts to go wrong, it can become very tough to recover. Deflating our tyres not only gives us more grip, it also spreads the vehicle’s weight more evenly, hopefully preventing it from sinking into the sand. The real trick, though, is to settle into a rhythm – using power on the approach and gradually easing off towards the crest. It sounds simple, but it’s actually something of a balancing act. Go too fast and you jump over the crest, risking damage to the vehicle, but go too slowly and you’ll end up beached halfway up the dune. My attempts are, to my surprise, very successful, and as the dunes grow, so does my confidence. On one occasion, though, my
Just deserts.. tackling sand dunes requires a skilful balancing act – and a capable car such as the Nissan Navara
confidence flirts dangerously with arrogance and I almost overcook it, sending the Navara into a four-wheel drift at about 50mph. After that small near-mishap, I tone it down a notch, and that proves to be my downfall. As I approach the centre of the dunes, I meet with a relatively minor crest. For a moment, all I can see is sand as the Navara cruises towards the dune, but a nanosecond later the windscreen is filled with sky. The tyres start to claw at the loose surface, progress slows, and I realise what’s happening. This dune is outrageously steep, and I’ve used too little power. Instantly, I lift off the throttle and let the Navara come to its natural
halt, before reversing ignominiously back down the dune, ready for a second attempt. Giving myself what looks like a suitable run-up, I take a deep breath and gun it. The Navara hurtles towards the dune. The wall of sand looms, there’s a loud crack, a plume of sand drenches the vehicle and my windscreen is once more full of sky. As I climb, I don’t move my foot away from the firewall – even a millimetre. The tyres slip about half a turn, but the torque pulls me over the crest. Just. On the other side I stop to see how my truck has fared. A glance at the underside reveals a sheet of protective plastic has been torn clean
away from its position in front of the axle. It’s no worse than a paper cut as far as the car’s concerned, but with less underbody protection at my disposal I might have to be a little more careful from now on. The trip back to civilisation was a far easier experience, with the dunes getting smaller before giving way to the rockier Martian desert. Forgetting about my new lack of underbody protection for a moment, I switch back to reardrive and start swinging the back end about like a Labrador’s tail, as do the rest of the convoy. But even with our wildly fishtailing two-tonne trucks, all that marks us out as more than a speck on this enormous landscape is the huge dust cloud that engulfs us. Despite the scale of this inhospitable wilderness, the sharp stones that have peppered the car’s now-vulnerable underside, the sand that has covered the car’s cabin in an uncomfortably gritty coating, and the immense heat, the car has come through practically unscathed. Its only moment of hesitation (and damage) was as a result of my incompetence, and the only fault I can find is a slightly noisy air intake. Pratting about in the Sahara isn’t a comprehensive test of a pick-up truck – but if you’re wondering whether a Navara’s going to cope with traversing a muddy field or snowy pass, the answer is yes. CarDealerMag.co.uk | 83
FEATURE.
Chill ride: Ford Kuga in Norway LAURA THOMSON reports from the Arctic Circle.
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e hadn’t seen the black ice. It had blended into the asphalt as easily as a pickpocket vanishes into a crowd, and by the time we noticed that anything was amiss, it was too late, and we were on top of the slippery surface. The steering went first, as the car dipped into the road’s downward camber, heading for the fragile barrier and the frozen lake below. Panicked, my driving partner wrestled with the wheel, but to no avail. The car was twisting into a spin, and there was nothing we could do. Just when all hope seemed lost, the car’s All-Wheel-Drive system kicked in, redistributing power through the wheels and straightening our course. Panic over, for the time being. I was in deepest Norway, and many miles into a panScandinavian road trip in Ford’s facelifted Kuga. This wasn’t the first time the car had saved our bacon, nor was it the first time that I had pondered my sanity in agreeing to the trip. Drive 230 miles into the Arctic Circle in an SUV normally seen on the school run? Why, of course! Either Ford had it in for us, or they had something seriously impressive to prove in the
Although the conditions were treacherous, the Kuga kept us safe
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small SUV. As it turned out, it was the latter – thankfully – and soon enough I found myself behind the heated steering wheel ready to take on the trip. But first, after an overnight stop in a surprisingly quaint airport hotel, we were to tackle the treacherous terrain in something slightly more suitable. Boasting 55bhp, two skis up front and a track on the rear, the Polaris snowmobile was more than appropriate for the conditions. Winding through Lapland’s fir trees in the twilight, the torquey model had plentiful power and was wellbalanced, thanks to its low centre of gravity. But the ride soon came to an end, and it was with a sigh that we dismounted the vehicle, enjoying a warming snack in a traditional tepee before setting off on the real adventure. Upon arrival in Scandinavia, a member of the Ford team had informed us that only one Kuga had crashed on the region’s icy roads so far. However, he had added, that had been the other driver’s fault, so we had nothing to worry
about. This less-than-reassuring thought played on my mind that first day, as we headed north towards that night’s destination of Karaskjok, a traditional village in Norway. Eating away the miles, the Kuga was coping remarkably well in the icy conditions, until an emergency stop, or an attempt at one, gave us our first moment of worry. Spotting a picturesque lakeside layby, my co-driver suddenly suggested a photo break. After checking my mirrors, I liberally applied the brakes, momentarily forgetting the dubious nature of the road we were on. The Kuga’s ABS immediately kicked in, and managed to rescue the car from the slide it was heading for. After coming to an eventual stop farther along the road, we continued on our journey, content with finding another picture opportunity. Ice driving lesson one learnt: forget about sudden braking. The rest of the morning passed without incident, as we passed through miles and miles of snow-covered countryside, the white stuff increasing incrementally the farther north we got. A late lunch brought a traditional Scandinavian sausage to the table, atop a mountain of chips and relish. Twilight had become a shade darker by the time we left the restaurant. The outside temperature was well below zero,
and fell even further as we continued into the Arctic Circle. By the time we arrived for a visit to the Engholm Husky Lodge, on the outskirts of Karaskjok, it was a nippy eight below zero. Shivering inside our jackets, we admired the traditional craftsmanship of the farm. The huskies had no such qualms, however, with their thick fur coats keeping all but the iciest of chills at bay. From the husky farm, we continued further into Karasjok, stopping only to visit a knife-making workshop. The Sami are an indigenous people from Lapland. Blades of all shapes and sizes were being crafted in front of our eyes, traditional tools used by the Sami people. The simple knives lasted decades, we were told, and came in many different guises. That evening, we continued to experience their culture, in a traditional restaurant, housed in a building of timber and turf construction. A hearty meal of reindeer was served, while a young herder of the very same animal serenaded us with a selection of her people’s ‘yoicks’. Due to the low temperature and our northerly position, the potential of seeing the Aurora Borealis was high that night. However, cloud cover meant that, by the end of the evening, the famous display had not yet made an appearance. All hope was not lost though as the cloud was
‘Upon arrival, a member of the Ford team informed us that only one Kuga had crashed so far.’ expected to clear later. Placated with the promise of a wake-up call should it appear, we retired to our rooms. Day two brought a disappointing realisation. The Northern Lights hadn’t shown, and with our homeward flight scheduled later that day, any hope of seeing them was gone. Within an hour of departing the hotel for Alta, our final destination, we’d diverted from the road down a snowy track, having spotted an unmissable photo opportunity. The Kuga easily rose to the challenge, conquering the snowy mounds with surprisingly little difficulty, while I struggled knee-deep in the stuff. Another hour passed and we had already stopped twice more. As we continued west in this stop-start manner, we realised that we were in danger of missing our flight, and so we persisted, bypassing numerous beautiful backdrops. A seaplane stationed in front of a frozen lake was enough temptation to pull off the road once
more, and as we did so the already-dusky sky began to attempt a sunset. Despite having not seen the sun yet that day, the streaks and swirls that surrounded us were enough to make up for the elusive Northern Lights – almost. After this lakeside break at Kautokeino, we pushed north once more, determined to arrive at Alta on time. From there on, any sightseeing was to be done from the moving vehicle, and photo stops were out of the question. It was while on this mad rush to the airport that we came across the aforementioned black ice. It wasn’t the first, nor the last, of the trip. However, the Kuga hit this patch as it turned into a slight left-hand bend, making creating the perfect conditions for a wheel-locked skid. This terrifying near-miss was enough to warrant one final break, and as we caught our breath we relished our surroundings. On a narrow mountainside road overlooking a tree-lined frozen lake, we really couldn’t have picked a more picturesque spot to almost crash. Once we were back in the Kuga, we pushed on, this time at a more reserved pace. If we were to miss our flight, so be it, but at least we would do so intact. Views of the dramatic cliffs, adorned with frozen waterfalls on the approach to Alta, provided the perfect end to our adventure. [CD]
There were various fascinating stopovers on our travels into the Arctic Circle
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Great partners to work with during a busy year ahead W
ith so many great companies to work with to expand your business this year, it can be difficult to choose between them, so we’ve picked out six of the best suppliers and products for 2017 that we really think you should be working with to make the most of the next 12 months. The RAC is looking to expand its Dealer Network over the course of 2017, but it’s only searching for the best dealers. The network sold more than 170,000 cars last year and increased its dealer footprint by 15 per cent with its approach of putting quality first. The company’s own figures suggest that more than three-quarters of customers who buy a car from a member of the wide-ranging RAC Dealer Network do so because of their confidence in the RAC brand, with nearly 80 per cent swayed by the unique RAC BuySure used car proposition. Finance provider iVendi brings the latest online technology directly into dealers’ hands. The newest version of the iVendi platform is the most sophisticated online motor finance tool anywhere, bringing together all the different aspects of each dealer’s motor finance offerings to manage the entire finance proposition in one place. With an aggregator that collates all types of online and showroom inquiries from a prospective customer, and a comparator that shows the products and risk options available from the dealer’s own panel of lenders, the iVendi platform allows a sales person to match a customer to a finance package – or they can even leave the customer alone with the tablet, laptop or PC to decide for themselves. A relative newcomer to the UK classifieds market, CarGurus has taken the USA by storm and is set to make the same impact over here. After just a year in the business, the company already reports more than a million monthly users on the website, with 250,000 cars in stock from around 5,000 dealers. These figures are well beyond the target the company set itself for 2016, but
by ANDREW EVANS @snavEwerdnA
it continues to push the brand to as many dealers as possible, guiding product development with input from the dealer community itself. Crucially, dealers can sign on and test CarGurus for free, and the company’s experience in the USA suggests that most dealers will convert to the paid programs because of the value offered. When it comes to warranties, WMS Group is the first choice for many. The products the company offers are vital to car dealers and it has recently expanded its team to give a better and broader service to customers, while refining its offerings to stay at the head of the pack. The Safe and Sound product is available at 300 select dealerships around the UK and is endorsed by Sir Stirling Moss and former Top Gear ‘Stig’ Ben Collins. It gives customers a 60-point safety inspection, a full provenance check, a warranty that covers wear and tear, countrywide breakdown recovery and a buy-back promise. Automated processes are supposed to make
life easier and quicker, but too often a workplace can become a mass of seemingly disconnected, application-specific software systems that employees put up with rather than appreciate. Reduced efficiency, falling profitability, software support issues and delays in fulfilling customer expectations all harm your business to some extent. eDynamix offers dealers a connected aftersales solution. Using a single supplier for all of the core aftersales processes, with a single login to connect them all, one support channel and just one invoice for licensing provide a more efficient solution for dealers using it. Despite the uncertainty of 2016 looking to carry on into 2017, GardX is optimistic for the prospects of its dealers continuing to turn a profit. The company itself has seen a significant increase in its product portfolio, not least the paint and interior protection system following the acquisition of the BMW and Mini UK partnership for Protect X. With profits per vehicle sale being squeezed despite market growth, it’s more important than ever to focus on the sale of add-ons, and GardX promises that 2017 will be another exciting period of new initiatives.
CarDealerMag.co.uk | 87
Proud to be working with the best dealers in the country Becoming an RAC Approved dealer means you have access to Becoming an RAC Approved Dealer means you have access the power of one of the UK’s most respected motoring brands. to the power of one of theWith UK’sover most respected motoring 8.2 million members inbrands. our network, Approved With over 8.2 million members, Approved Dealer can to your forecourt. Dealer status can helpstatus drive them help drive them to your forecourt. Call us today and harness the power of RAC Approved status. Call us today and harness the power of RAC Approved status.
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Seeking the right dealers RAC DEALER NETWORK
W: rac.co.uk/getapproved T: 0330 159 1111
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ealers that place the customer at the heart of their business are being sought to help power further growth of the RAC Dealer Network in 2017. Last year, the network – which is now larger than many manufacturerapproved used car programmes – grew from fewer than 1,000 to more than 1,150 dealers, and saw 170,000 vehicle sales. Three levels of dealer are part of the RAC network. Those at the entry level simply sell RAC Warranty products. The second, RAC Dealers, supply a minimum mandatory three months of warranty and 12 months of breakdown cover. The highest are RAC Approved Dealers, now numbering almost 300, who are authorised to take part in the RAC BuySure used car initiative. Sean Kent, RAC account director, said: ‘There is potential to grow the network further still, but it will only happen if we can recruit the right dealers. Our approach with the RAC Dealer Network has always been to put quality first.’ Research has shown that more than threequarters of customers who have bought a car from the RAC Dealer Network did so because of their confidence in the RAC brand. Kent said: ‘Essentially, the dealers with which we work are already great dealers. What we do is allow them to use the RAC brand to underline that fact, to provide the most credible third-party approval available to any independent.’ At the heart of the RAC Dealer Network is RAC BuySure, the unique used car proposition offered by RAC Approved Dealers that is designed to fully meet consumer expectations of the RAC brand. Kent said: ‘RAC BuySure sets very high standards, and being part of the scheme means additional
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There is potential to grow the network further still, but it will only happen if we can recruit the right dealers.
OUR CONGRATULATIONS GO TO… ...these RAC Dealer Network members who were winners in the Car Dealer Used Car Awards! St Albans Car Centre Trade Price Cars Wright’s Motors Used Cars of Bristol Imperial Cars Springfield Autocare and Car Sales Noble Cars Saxton 4x4 McCarthy Cars
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work for dealers. However, they are then rewarded with leads and customers who are prepared to pay more for a vehicle of this quality. Our research indicates additional unit chassis profits of £200-300.’ A key element of the RAC’s proposition to its Approved Dealers is the marketing strength
of the brand. Dealers can access highly effective resources through a sophisticated central dealer marketing portal. They are also highly visible on the rac.co.uk website, which has more than a million unique visitors every month. Sean said: ‘We believe that becoming part of the RAC Dealer Network has huge appeal for dealers and their customers. If you believe you are the kind of high-quality used car retailer who could meet our standards, we’d be very pleased to hear from you.’
WHAT OUR CUSTOMERS SAY • 75.8% of people who bought a vehicle from the RAC Dealer Network in the past 12 months did so because of their confidence in the RAC brand • 79.9% of buyers felt more confident about their vehicle purchase because it came with RAC BuySure • Our overall Net Promoter Score – an industry standard tool used to gauge customer relationships – is an impressive 70.4 for the past 12 months
CTSI APPROVAL FIRST FOR RAC The first-ever used car code to be approved by the Chartered Trading Standards Institute has just been announced by the RAC – and will apply to the almost-300 dealers in the RAC Approved Dealer Network. Externally and independently accredited, it gives motorists in the market for a used vehicle certainty that the car they choose is dependable – and full recourse in the unlikely event that something goes wrong. CarDealerMag.co.uk | 89
JOURNEY
MANAGE YOUR
CONSUMER digital
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Contact us to discuss how we can help you manage your consumer’s journey 0845 226 0503 info@ivendi.com www.ivendi.com/CD 90 | CarDealerMag.co.uk
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Get outstanding results IVENDI
W: ivendi.com T: 0345 226 0503
ABOUT IVENDI With offices in Manchester and Abergele and more than 7,000 connected dealers throughout the UK, iVendi has received awards across the industry for its technologies, including a highly commended placing in the Dealer Management System category at the 2016 Workshop Power Awards, run by Car Dealer’s sister publication. • The iVendi Platform provides a complete online motor finance solution for dealers, motor finance providers, car portals and manufacturers. To find out more, visit ivendi.com, e-mail enquiries@ivendi.com or call 0345 226 0503.
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hen it comes to online motor finance, iVendi brings the best technology available online directly into dealers’ hands. The company develops e-commerce solutions that make vehicle transactions easier for all, whether dealer, lender or consumer – with the iVendi Platform at their heart. This highly advanced portal, now in its second generation, brings together all the different elements of each dealer’s online motor finance offering, allowing the whole finance proposition to be managed in one place. James Tew, CEO, pictured right, said: ‘The new version of the iVendi Platform is the most sophisticated online motor finance tool available anywhere. As more consumers start their vehicle retailing journey online, it bridges the gap between
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‘There is a culture throughout our people to deliver a first-class service.’
your website and your showroom to enable an endto-end, fully connected journey for your customers. ‘Fundamentally, the Platform automatically aggregates all types of online and showroom inquiries against a prospective customer and records all the quotations presented against each vehicle, while also integrating with all the major dealer website providers and leading motor finance lenders. ‘But there are also a range of advanced features, perhaps the most advanced being a comparator that shows the finance products and risk options available from the dealer’s panel of lenders. ‘This works online, as you would expect, but we are also promoting its
use as part of the in-dealership process. The sales person can sit down with the customer and use this comparator to look at a range of different finance products and offerings for those with varying risk appetites. ‘In fact, the Platform provides such a very structured, convenient way of presenting motor finance and aiding compliance that the sales person can even leave the customer with a tablet, PC or laptop to decide on their own preferred finance solution. We already have dealers on board who are using the product in this way.’ Supporting the iVendi Platform, iVendi’s team is a collection of experienced and enthusiastic people who understand the motor industry, motor finance and the latest technologies. Tew added: ‘There is a culture throughout our people to deliver a first-class service. Our national sales team is experienced within all the disciplines we need – motor finance sector, digital media, online technologies and vehicle retailing – while our staff in Abergele and Manchester are on hand to provide both technical and account management expertise. ‘We believe that it is essential to provide the right product, but also the right level of expert support to ensure that we deliver outstanding results for dealers, lenders and customers.’ CarDealerMag.co.uk | 91
List your stock for free on CarGurus Join the fastest growing auto-shopping site and start receiving quality leads from our informed, ready-to-buy shoppers
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Transparency is key CARGURUS
W: cargurus.co.uk T: 0800 808 5557
C
arGurus is still considered a relative newcomer to the UK classifieds market, but its latest numbers prove what having a product that offers consumers the information they are looking for can achieve. The website has made huge waves in the US, and current trends suggest it could achieve the same over this side of the pond. When Sam Zales, president of international and dealer operations, spoke to Car Dealer, he explained: ‘Things are going phenomenally well – better than our high expectations. ‘We have more than a million monthly users on the website, and approximately 250,000 cars in stock from about 5,000 dealers. ‘Most important to me is the reception we have from the hundreds of dealers that are now partnering with us on our paid subscription products, which we began offering recently.’ Zales said that in 2016 it saw a huge response to its transparency model in the market, and CarGurus is predicting this will be a key factor for dealers signing up for CarGurus services this year. ‘That’s our heritage,’ said Zales. ‘Transparency is the legacy of our founder, Langley Steinert, who co-founded TripAdvisor. We’ve seen that when consumers have access to unbiased information it helps them make smarter, faster purchase decisions. Our site does extensive analysis on price and dealer ratings so consumers can easily see which car is a great, good or fair deal, and consumers are engaging on CarGurus because of this. ‘That’s also taking shape on the dealer side. Dealers are recognising the benefits of providing transparency – even if it’s not always comfortable and it might not be the traditional model to expose so much information about their stock.’ He added: ‘Coming away from our recent Dealer Council meeting, dealer customers are telling us today they’re closing 10 to 20 per cent of the lead volume CarGurus is sending to them, and that’s better than any customer experience we’ve
heard about our competitors in the marketplace.’ Things have progressed drastically, as CarGurus set itself a target that it smashed in 2016 and continues to improve. With the figures now well beyond the expectations set, the team are continuing to push the brand to as many dealers as possible. Its Dealer Council is now well established and made up of large franchises and independents. They will meet regularly to discuss how to improve the products, which Zales explained is shaping the year ahead. But despite the success that CarGurus is currently enjoying, the team are not prepared to rest on their laurels. ‘We guide our product development with input from the dealer community. In 2017, we will continue to develop the consumer user experience so that we can continue to send ready-to-purchase consumers to dealers’ doorsteps,’ he said. ‘We’ll also be expanding the suite of tools we make available to dealers in our Dealer Dashboard. For example, we currently have a pricing tool we offer for free to our subscription dealers that we’ve heard is comparable to the best in the industry that the dealers pay for. Dealers can use that tool to gauge how they will best meet a good deal rating in the market without giving away gross margins, and at the same time get in front of more consumers. ‘In the coming year, we are also planning to roll out new customer acquisition vehicles for our
dealers – including text and chat, as well as new retargeting and display advertising opportunities. We want to give dealers more opportunity to get their brand in front of that engaged consumer.’ Developing relationships and creating new ones is part of the plan for CarGurus in 2017. It is already engaged with the top 10 groups in the marketplace, which keeps them confident about their product, according to Zales. ‘Most importantly, we’re hearing feedback from dealers that they are seeing high return on investment with our programme. ‘We’re thrilled that we’ve made that progress in such a short period of time, when we’ve been in this market for just over 12 months.’ Over the following 12 months, though, CarGurus expects to see growth increase drastically again, with Zales predicting that doubling this year’s increase in visitors will be achievable. ‘We’d love to continue doubling our consumer visitor growth; we think that’s reasonable. We also want to engage more dealers and continue to increase the stock level on the site. The thought would be to approach the market leaders there, which is something not far ahead of us.’ He added: ‘Dealers can sign on and test CarGurus for free. As we’ve seen in the US, most of our free subscription dealers will convert to our paid programme because they see they can get substantial value out of it. We want to continue to be the alternative to a player that’s been in the market for a long time and continue to win dealers’ business.’
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‘We have more than a million monthly users on the website.’ CarDealerMag.co.uk | 93
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W: wmsgroup.uk.com T: 01844 293810
ooking to the year ahead and seeing that business is booming is always a great position to be in. For car dealers, the products that WMS Group offers are vital and, for that reason, it is growing and preparing to extend its team, giving a better and more all-encompassing service than ever before to its customers. Over the past few years, WMS has added some products while refining others, to keep offering exactly what customers are asking for, and as a leading warranty supplier in a competitive industry, it’s important to keep ahead of the game. Already, its Safe and Sound product, which is endorsed by WMS Group brand ambassadors Sir Stirling Moss and former Top Gear Stig Ben Collins, is available in 300 select dealerships around the UK. This is the top-tier product from the company and gives customers every faith that they’ll be covered if something were to go wrong. Eric Stone, business development director at WMS Group, explained that they are the first choice for warranties because they always have the customer in mind. He said: ‘We’re reactive. If a customer or dealer needs an answer to a particular solution, they’re going to have that instantly.’ Stone added: ‘We have support 24 hours a day, 365 days a year, so if the customer wants to get some advice or has an issue, we are contactable throughout the whole of the year. ‘Dealers particularly like that, because if a customer breaks down or has an issue late at night or early in the morning, they do have a number that they can call and they will receive the advice they need. That’s something we know that not every other company offers. ‘We deal with our claims and we pay our claims within 48 hours, which is great for the industry because dealers know that they haven’t got to wait to get paid for the claim.’ The endorsements by Moss and Collins reassure dealers’ customers that this is a warranty that they can believe in. Safe and Sound means customers get a 60-point safety inspection, a warranty that even covers wear and tear, full breakdown recovery wherever they are in the UK, a full provenance and mileage check, plus a buy-back promise – so, really, what does a dealer have to worry about after that? There’s a product for every customer’s need, though. WMS offer warranties that will keep your customers coming back again and again. As Stone elaborated: ‘It’s vital to work with the
right warranty company, because if dealers are looking to retain customers they’ll want customers to be confident in their purchase. ‘If the customer has a bad experience then that could cost the dealer his next sale in two years, three years or four years down the line. ‘That’s why we think it’s vital that the warranty companies become part of the dealer – it’s seen as part of the dealer’s offerings. For that reason, a car dealer would want to be sure that the partners they work with are going to give their customers nothing but the very best service, and that’s why we are an award-winning company.’ There’s more to WMS Group than just warranties, too. The company offers other specialist services, but importantly it is always trying to help its customers get more business. ‘We are actively looking at attracting customers to the dealer’s forecourt, and as a company we are one of the few warranty companies that are not just
there to offer the customer a warranty, but we’re actually looking at getting the customers to find the dealer by visiting our website,’ said Stone. ‘We worked with Auto Trader, and if the customer is looking for a car, one of the first places they’d start their search is on its website. If they’re looking for a dealer that offers a Safe and Sound programme, they can link through instantly to that.’ Stone told Car Dealer Magazine: ‘Our dealers work with us and it’s an opportunity for us to create more web and showroom inquiries for them. We aim in all ways to be a valuable business partner by providing not just an extra warranty programme and customer service but by attracting more customers for our dealer partners. ‘We’re working in different areas, including social media. That’s something that’s happening now. ‘I think, by and large, it’s looking as though 2017 will be even better than last year, which was phenomenal.’
CarDealerMag.co.uk | 95
ONE CONNECTED SYSTEM WITH ONE LOGIN. SERVICE & REPAIR PLANS
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FOCUS ON.
Top suppliers
Time to get Connected! EDYNAMIX
W: edynamix.com T: 0845 413 0000
U
sing several different systems from several different suppliers in aftersales departments can lead to issues such as reduced efficiency, falling profitability, problems with software support and a slowdown in the fulfilment of customer expectations. Monthly bills from various suppliers for their licences and support can quickly mount into potentially large and unnecessary costs, with the burden of reconciling and paying multiple invoices placed with an accounts team. Using one supplier for all of the core aftersales processes – with one login to connect them together and one support channel and one invoice – provides a more efficient and cost-effective solution for dealers. A connected solution helps to improve productivity and staff engagement, but it also increases staff morale, system use and profitability. It makes training new and existing employees more effective, while at the same time helping to reduce staff turnover, with users feeling more confident in their day-to-day job role because they have a greater understanding of one connected system rather than a mediocre appreciation of multiple disparate systems. Data from various dealer management systems, the DVLA and DVSA, tyre distributors, and finance and insurance companies can all be connected into one portal. This can help to reduce errors, through the seamless transfer of data between systems. This then removes customer blindspots that arise because information – such as addresses, mobile telephone numbers or customer email addresses – held in one system is not updated and, therefore, does not match data held in another. eDynamix offers dealers a connected aftersales solution, encompassing (and embedded within) the service core process, with the aim of improving productivities, efficiencies and customer retention.
eDynamix Connect provides dealers with all of the core aftersales functions outside of their DMS: service plans, electronic vehicle health check, proactive follow-up, repairs and finance plans, online bookings, MOT cleansing, VIDEO1st, aftersales surveys and automated confirmations and reminders. Through one portal, dealers can receive centralised, data-rich management reporting using our scheduled push reports, or use our eDynamix Connect app to get an overview of daily, weekly and monthly performance. Not only do dealers’ systems, staff, management and third-party applications become connected, but eDynamix Connect offers multiple online
channels to keep customers connected to dealers through the web and smart devices too: • Online bookings – giving customers the ability to book their service 24 hours a day, seven days a week • Online service plan quote – allowing customers to create a quote for all of their future servicing requirements at their convenience • VHC online authorisation – letting customers view and authorise work needed on their vehicle, anytime, anywhere • VIDEO1st online media and interactive comments – delivering the excitement of the showroom experience to the customer in the comfort of their own home
‘‘
Using one supplier for all of the core aftersales processes provides an efficient and cost-effective solution. CarDealerMag.co.uk | 97
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98 | CarDealerMag.co.uk
E: info@gardx.co.uk
W: www.gardx.co.uk
FOCUS ON.
Top suppliers
Join the GardX revolution GARDX
W: gardx.co.uk T: 01243 376426
‘GardX dealers can make 2017 as profitable as 2016 was’
G
ardX has had phenomenal growth over the course of the last year. The company has seen a significant increase in its product portfolio, not least of all in its paint and interior protection system with the acquisition of the BMW and MINI UK partnership for ProtectX. In addition to increasing its existing product portfolio and market share, it has also developed and launched a new AD-Vantage SPIN 360 imaging solution platform. The insurance product range has also continued to grow, and as a result it finished almost 40 per cent up on 2015, which is a great achievement. This has been set against a very uncertain year for the industry as a whole. New and used car profits have continued to be squeezed, although year-on-year vehicle sales have grown. Finance and consumer deposit offers have been very competitive and as a result margins have dropped. The increased focus on the sale of add-ons has subsequently increased to compensate for this. The company also notes that 2016 has certainly
‘‘
been a year of surprises and, regardless of your thoughts on the outcome, the June referendum was an unexpected result. Just as Brexit came out of the blue in 2016, Donald Trump’s success in the USA was a huge surprise, so it looks like the uncertainty will carry on into 2017! Nevertheless, for 2017 GardX is looking for continued growth in its core product range, and increasing its footprint in the UK, Ireland and international markets is top of the agenda. It’s always looking to add or enhance its product portfolio too. In 2016 the company had many new initiatives, and it certainly doesn’t see 2017 as being any different, noting that the next 12 months will be another exciting period for the company and its partners, so GardX recommends that you ‘watch this space’! For GardX dealers it will be vital to keep hold of repeat business this year. Maintaining and working their existing consumer database with key
It is more important than ever to promote the sale of add-on products that can increase profitability.
touchpoints throughout the year will be crucial. Given the pressure on chassis profit, it is more important than ever to promote the sale of add-on products that can increase profitability, but more importantly these products can help retain the customer and provide vital income for aftersales departments. There will always be outside influences, such as manufacturer marketing campaigns, to contend with, as well as increased consumer knowledge. However, if dealers can stay focused on delivering an excellent service to their customers, then price is not always an issue. By maintaining a strong, disciplined sales process and ensuring the customer is given the opportunity to purchase, GardX dealers can make 2017 as profitable as 2016 was. Too often the decision can be made by the salesperson, who determines whether the customer would or would not be interested to purchase. Keeping the product offering simple and perhaps having a standard pricing matrix can also help. A vital part of the process is finding out as much as you can about the customer and what they use their vehicle for. Qualifying the product benefits to match the customer’s lifestyle is key! [CD] CarDealerMag.co.uk | 99
DASHBOARD. FEATURE.
Ask Lawgistics .com
Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £39.99 a year to get advice like this when you need it
I sold a one-owner car but that one owner was a rental firm – and my customer’s not happy...
Q
I advertised and sold a car as a one-owner vehicle. The customer was very happy with his purchase but when he got the log book, he found out that the one previous owner was a car rental company. He now wants to reject the vehicle and get a refund or some money back as he reckons the car is worth less and will be difficult to sell on. Do I have to give him anything? Under the Consumer Rights Act 2015 (CRA), goods have to be as described. You described the vehicle as having one owner and that is true. Therefore the customer may not have a case against you under the CRA. However, trading standards have been known to take umbrage at dealers not declaring the fact that the previous owner was a lease or rental company. In their view, by not advising the customer of the nature of the previous owner, you may be committing a misleading practice under
A
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Regulation 5 of the Consumer Protection from Unfair Trading Regulations (CPRs). The information may be factually correct but it could deceive the average consumer and cause them to buy a vehicle they would not have otherwise chosen if they’d been aware of the extra detail about the previous owner. Until the CPRs were updated in 2014, it was only trading standards who could take action against you as a dealer in these circumstances. However, the 2014 update opened up the right of the consumer to take action using the Regulations. In this case, if your customer argues that he would not have bought the car if he had known more about the previous owner, he could be entitled to reject it for up to 90 days after the sale. Worse still, in the first month he would be entitled to a full refund. The 2014 CPRs also
A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.
provide for customers to get a discount or money back via a claim for damages. The level of any discount to be given is dependent on the seriousness of the misleading practice. A minor misleading practice attracts a 25 per cent discount and a very serious misleading practice amounts to a 100 per cent discount. The discount rules are different if the car was sold for more than £5,000. In that scenario, the customer is entitled to receive back the difference between the actual market value and the sale price. On top of that the customer could make a damages claim for a bit of the old distress and inconvenience. All in all, arguably, yes, you may need to offer some form of redress if your customer knows of the CPRs which, while not as well discussed or well known as the Consumer Rights Act, do offer the customer some alternative remedies.
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Exclusive five per cent discount on your tailormade trade insurance At Unicom, we’ve been safeguarding our clients with the best protection policies for more than 20 years – so, no matter what role your business plays in the motor trade, we can have you covered for every possible risk. From road risks to legal cover, your motor trade insurance can be tailored to suit your individual needs. It’s our job to make sure that you get the best price for the cover that you want.
Q
We recently made a significant payment to purchase a car from a company we have been doing business with for years. It turns out they had their email hacked and the hackers intercepted our communication and requested we make payment to a different account, which we did. The bank into which we made the payment aren’t interested and the company we purchased the car from want their money. We had no reason to suspect anything was wrong, although with hindsight I wish we had been more careful. Who is liable for the loss? Us for paying into the wrong account or the company for having poor email security? Unfortunately, you still have a contractual obligation to pay the supplier for the goods received. You must report the event to Action Fraud who may open a criminal investigation and you must of course contact the bank involved, who will probably argue they have no liability. Microenterprises with less than a £2m turnover and fewer than 10 employees can complain to the Financial Ombudsman if not happy with the response received from the bank.
WHY I JOINED CAR DEALER CLUB
Buyer told me to sort things out – but the car had been bought a year before IT was a tricky dispute over a Mitsubishi Shogun that convinced Adeel Ahmed of the value of Car Dealer Club, and our invaluable legal partners Lawgistics. Ahmed is the manager of Windmill Motors Ltd, a familyrun used car dealership based on the A15, a few miles north of Bourne, Lincolnshire. The company is over 20 years old and has a monthly turnover of £70,000. It stocks around 100 used cars from manufacturers such as Land Rover, Audi and BMW. Ahmed thought that it would be useful to have some additional legal support for when customers try to make unreasonable claims against his company. He decided that the best way to do this would be to sign Windmill Motors up to Car Dealer Club. At first, legal consultancy Lawgistics, who specialise in motor trade law advice and support a variety of clients within the automotive retail industry, just helped the dealership with general day-to-day affairs. However, Ahmed’s worries about
customers making unreasonable demands eventually proved wellfounded. One of Windmill Motors’ customers encountered problems with a Mitsubishi Shogun they had bought from him. They wanted Ahmed to sort things out – despite having owned the car for a whole year. Ahmed went above and beyond the call of duty to put things right, but the customer still wasn’t satisfied. Fortunately, Lawgistics were there to help Ahmed and thanks to the assistance of the legal advice firm, the dispute was resolved very easily. Ahmed says he would not change the way Windmill Motors sold cars as a result of the incident. ‘We were in the right and do everything like MOTs and inspection reports,’ he said. Nonetheless, he was satisfied with the help his company received from Lawgistics.
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Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is behind the highly esteemed Car Dealer iPhone and iPad apps. It’s an expert in app design and development, and the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to your requirements by the firm’s experts.
At Paragon Car Finance, we’re so confident we can better the deals and improve the service other lenders offer that we want to give £50* to all eligible Car Dealer Club members who book an appointment with us to see how Paragon Car Finance could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777.
A
WANT TO UPGRADE? LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £695) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all areas of legal law and documentation. There really is a package for everyone with Lawgistics.
EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM 2. HIT SUBSCRIBE 3. FILL OUT YOUR PAYMENT DETAILS ON PAYPAL AND HIT SUBMIT 4. WAIT FOR YOUR CAR DEALER CLUB PACK TO ARRIVE IN THE POST 5. OR PHONE 023 9252 2434 AND SPEAK TO ONE OF THE CAR DEALER TEAM
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102 | CarDealerMag.co.uk
RECRUITMENT.
Lookers announces new senior team appointments Nigel McMinn becomes COO and Allan Rushforth is dealer group’s MD
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ookers, one of the UK’s leading motor retail and aftersales service groups, has promoted Nigel McMinn to the role of chief operating officer and appointed Allan Rushforth as managing director – both with immediate effect. The Lookers business has seen significant growth and the appointments are designed to strengthen the company’s senior management team to reflect the increased scale of operations. Since joining in 2013, McMinn has made a substantial contribution in terms of developing the key strategic focus areas of people, technology and brand, while at the same time strengthening important manufacturer and supplier relationships. Rushforth has had a successful
career in the automotive sector, culminating in the role of corporate vice president of global sales for Nissan. Before his time at Nissan, he held a variety of senior roles with Hyundai, including COO of Hyundai Motor Europe, and has held other senior roles both internationally and in the UK. Robin Gregson will become chief financial officer, again with immediate effect. Andy Bruce, Lookers’ chief executive officer, said:
‘Nigel’s promotion is richly deserved and recognises his pivotal position in the progress we have made. ‘I am also delighted that Allan, a true global industry leader, is joining our team and I have no doubt he will prove to be a huge asset to our business in the years to come.’ McMinn, left, said: ‘These changes provide the foundations for the continued growth of Lookers plc, providing our business with the organisational capability to stay ahead of the market, accelerate our strategic ambition and achieve our short-term operational goals.’ Rushforth added: ‘It’s terrific to return to the UK and to join the team at Lookers. I’m convinced we can deliver enhanced stakeholder value, founded on the best customer experience in the business.’
VOLVO
Chris will exploit opportunities VOLVO Car UK has appointed Chris Eady as head of network and distribution strategy with immediate effect. The new position will see Eady take responsibility for exploiting new retail opportunities for Volvo in the UK. He joins from Sunseeker International Ltd, where he held the post of regional business manager, and has previously worked for Porsche Cars GB Ltd, Volkswagen Group and Citroën UK. Buoyed by the success of the recently-launched S90, V90 and XC90, Volvo posted a strong sales year in 2016, with registrations up 7.5 per cent over 2015. With a number of new models to follow in the coming years, annual sales are projected to grow to 60,000 in the UK by 2020. Eady said: ‘Now is an exciting time to be joining the Volvo brand.’
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MARKET INSIGHT.
..in association with ASE-global.com
Quiet end to what was an interesting year
Inflation will be something to watch out for as we move through 2017, says Adam Cottam
I
t was a quiet end to an interesting year in motor retail. Shares in all the listed motor retail groups improved in December compared with November. However, they were all behind their starting positions in January. The FTSE 100 continued its climb, and had broken its all-time closing price record by the end of the year. The UK economy seemed in decent shape, with the anticipated negative effects of the EU referendum result not yet being felt. However, there were warning signs that price rises caused by the weakened pound were beginning to be felt; inflation will be something to watch out for in the new year along with its impact on growth. Cambria Group released its annual report in December, which, as reported in last month’s review of the preliminary results, showed the group was in a strong position as we moved towards 2017. Excellent net profit growth for the year ended August 31 was underpinned by strong performance in all departments and helped by the three acquisitions made in the financial year. While 2016 has generally been a busy one for transactions in the sector, December was not, with no activity concluding the month. The investment appetite among UK motor retailers did not wane during 2016, even postreferendum. During the year, we saw some of the biggest deals ever being completed, and we expect the trend to continue into 2017 despite the inherent uncertainty surrounding the UK’s political and economic future. Share price performance All of the listed motor retailers improved their share price in December, although these gains were by no means significant. The stocks are well behind where they started 2016, which is due to the reduced confidence in the sector shown by investors and the uncertainty caused by the UK’s decision to leave the European Union. The FTSE 100 continued to rise in December, and as Christmas came and went, the ‘Santa Rally’ effect could clearly be seen. Over the Christmas period the index broke historical records, and there was no sign of the growth slowing as we moved into the new year. Generally the signs are good for the UK economy with economic forecasts being outperformed and the predicted negative effects
Share price movement from January 1 to December 30, 2016
Share price movement from January 1 to November 30, 2016
Pendragon
66.8%
65.2%
Vertu
56.7%
52.8%
Lookers
63.4%
56.9%
Inchcape
89.4%
77.5%
Cambria
75.0%
72.5%
Caffyns
96.3%
96.3%
Marshall
74.8%
76.4%
of the referendum not being felt, at least for the time being. Major retailers across all industries are starting to feel the effect of raw material price rises caused by the post-Brexit weakening of the pound. It is believed the majority of car manufacturers have hedged their exchange rate risk, with the true effect expected to be felt in 2017 rather than 2016. It will be interesting to see how these price changes affect the UK car market, and whether consumers are asked to pay more or whether retailers have their margins squeezed. Financial performance There were no Stock Market announcements relating to financial performance in December, other than the release of the annual report for Cambria. This outlined the performance in the year to August 31, 2016, and, as reported in the preliminary results in last month’s article, the
group appears to be in strong shape moving into 2017. PBT was at £10.6m, which was 38 per cent better than the prior year. Growth across all departments contributed to this result, in addition to the benefit of the three Jaguar/Land Rover franchise acquisitions made during the financial year. Generally, it has been another strong year for profitability for many in the sector, although the trading environment has become increasingly difficult. It remains to be seen how dealers will respond to these pressures, but noises are that more and more will focus on used and aftersales to generate profits, rather than chasing the new car market which has underpinned profitability in recent years. Transaction activity December is typically a quiet month in motor retail, and transactional activity was no different with activity non-existent during the last month of the year. As we’ve said, 2016 has been yet another busy year for deals in the sector. Consolidation continues apace, and it is difficult to know where this will stop given the lack of new entrants into the industry. High start-up capital and the significant working capital required to run a motor retail business means young entrepreneurs are likely to look at other industries when setting up their first enterprise. However, given the finite number of territories for each of the franchises, the consolidation we are seeing cannot continue forever.
Who is Adam Cottam? He’s corporate finance executive at dealer profitability specialist ASE plc. You can read ASE’s column here every month. 104 | CarDealerMag.co.uk
TAKING STOCK. Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead
Off to a busy start – and it won’t get any quieter in the run-up to March 1! The importance of appraising vehicles accurately and valuing in line with market sentiment is underlined again, says Simon Henstock, BCA’s chief operating officer
A
verage values fell in December as demand softened in the run-up to the year-end period. While demand for good-quality stock remained high, there was pressure on values for poorlypresented, higher-mileage vehicles. Having reached record levels in recent months, values for fleet/lease and dealer part-exchange vehicles fell during the month. A change in market sector mix also contributed to the decline in the headline value as a larger percentage of dealer part-exchange cars were sold in December compared with the previous month. The average value of a used car sold at BCA in December decreased by £290 (3.3 per cent) to £8,341. Year-on-year, average values were up by £295 (3.6 per cent), with age and mileage falling. December is the shortest trading month of the year and both the market sector mix and model mix tend to change quite significantly. Fleet and lease stock is typically in more limited supply, while dealers continue to sell part-exchange vehicles as a result of their ongoing retail activity. Demand for retail-ready vehicles held up exceptionally well, but it was noticeable that buyers became increasingly price-sensitive on older, highermileage or poorly-presented stock. This underlines the importance of appraising vehicles accurately and valuing in line with market sentiment. The early days of trading in 2017 have been exceptionally busy and, with the new plate on March 1 only weeks away, we are entering one of
the busiest periods for the motor trade. Sourcing and securing those bestquality retail cars will be critical for professional buyers in the weeks ahead and buying the right stock at a good price and in a timely fashion is crucial. Average values in the fleet and lease sector fell for the second month running, from £9,995 in November to £9,665 in December, a fall of £330 or 3.3 per cent. Retained value against original MRP (Manufacturer’s Retail Price) fell slightly to
Average value of a used car sold at BCA
£8,341
41.11 per cent, while year-on-year values were up by just £77 (0.8 per cent), with both age and mileage declining. Dealer part-exchange values also fell for the second month running, declining by £104 (2.2 per cent) to £4,495. However, year-on-year values were ahead by £247 (5.8 per cent), with average age and mileage decreasing. Average nearly-new values rose from £17,412 in November to £21,339 in December with model mix having a significant effect in this low-volume sector, as we always say.
Average values in the fleet and lease sector
£9,665
CarDealerMag.co.uk | 105
AUCTIONS.
Henstock AUCTION STATIONS
Digital + physical equals successful remarketing
BCA and Eden Motor F Group reach a new two-year agreement Joined-up remarketing approach meets firm’s needs
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CA and Eden Motor Group – which operates 18 retail centres throughout the Home Counties, south-west and south coast – have announced a new two-year exclusive remarketing partnership. Eden Motor Group recently announced two new ventures: Eden Approved, their first multi-franchise centre, located in Bicester; and a specialist used car business: Eden Prestige and Performance, located in Fleet, Hampshire. This renewed agreement will cover disposal of non-retail part-exchanges from these businesses as well as the core group. Vehicles from Eden Motor Group will be remarketed at the UK’s largest auction centre, BCA Blackbushe in the south (shown above) and at BCA Bridgwater, a leading auction facility in the south-west. The weekly sales programme will offer around 120 vehicles featuring a wide range of makes and models. Eden Motor Group vehicles will be pre-sale valeted to a high standard and BCA Smart Prepared where appropriate, ensuring stock is always presented to
buyers in the best possible condition. All vehicles will be offered under the BCA Assured scheme and will be available to BCA Live Online buyers nationwide. BCA is supporting the sales programme with a strategic marketing campaign that includes branded e-marketing and online awareness through BCA’s website, Auction View bulletins and the Showroom feature. Graeme Potts, CEO of Eden Motor Group, said: ‘BCA delivered a comprehensive and joined-up remarketing strategy, together with a wide range of complementary services and efficiencies of scale that meet our needs. ‘We will be selling at two prime locations that generate market-leading buying power and we are confident that this partnership with BCA will deliver excellent returns for the non-retail partexchanges we generate.’ BCA dealer sales director Dave Burden added: ‘We are delighted to be working with Eden Motor Group on this exclusive remarketing programme, which will deliver a substantial volume of attractive stock for buyers at BCA.’
rom time to time, a market commentator will suggest that traditional vehicle auctions are losing ground to digital-only marketplaces. Typically, the different remarketing channels are portrayed as being mutually exclusive and in competition with one another. It’s said to be ‘online vs physical’, when the reality is, both have a vital role to play. These routes to market are complementary in delivering an efficient and effective marketplace that meets the needs of sellers and buyers alike. In fact, the quality and average value of vehicles reaching the physical remarketing sector continues to rise, while time-to-sale continues to fall. And when it comes to handling large volumes of vehicles of every age, mileage, model and condition both quickly and efficiently, the physical auction route has no peers. The availability of stock is crucial and while some buyers prefer the convenience of buying online, others like to buy vehicles they have seen ‘in the metal’. The real competition is for the buyer’s wallet and that requires a choice of ways to buy and a wide range of good-quality vehicles. At BCA, the growth of digital sales is supported by an on-going expansion and investment in the infrastructure of our physical auction network. The continued growth of Live Online and other digital channels is underpinned by some significant investments in our imaging, appraisal, payment and platform technology. As reported on the page opposite, there was record bidding activity through our Live Online platform during November, as average monthly penetration reached 27 per cent of sales. You need all the building blocks to deliver the best remarketing service – efficient logistics and defleet capability, a comprehensive physical network and great digital platforms, with a full suite of supporting services. In short, it is all about being easy to do business with – whether our customers choose to use us in the physical or virtual world.
Who is Simon Henstock? ‚
He is BCA UK s Chief Operating Officer – Remarketing. Visit bca.co.uk or call 0845 600 6644.
ROCKINGHAM AUTOMOTIVE DEFLEET & REMARKETING CENTRE VEHICLE REMARKETING SERVICES 1. Logistics Our dedicated collection team are experienced in all forms of vehicle movement from doorstep inspection/ collection featuring detailed damage costings supported by digital images signed by the customer to the more standard movement of single or multi vehicle transporter load. With six strategically positioned UK wide drop off locations we have the ability to cover the England, Scotland, Wales and Ireland regions for all aspects of recovery. 2. Inspection On arrival all vehicles are inspected to the NAMA grading standard, the standard you can trust. This nationally defined scheme will enable the best possible prices to be achieved. Vehicles of specific grades will attract certain buyer groups therefore ensuring that vendors obtain the best audience both physically and online. The transparent grading of used vehicles within the industry has encouraged growth in the online buying practices of major motor retailers at all specialist corporate fleet sale events. 3. Presentation Every vehicle is presented to a retail clean standard to ensure the best possible financial return is achieved. This small investment is an essential ingredient to the overall result for the corporate vendor. The vehicle presentation takes place immediately prior to digital imagery of vehicles which are then uploaded to website and smartphone applications for marketing purposes.
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3 UK wide inspection and collection service at competitive pricing 3 Strategically positioned central hub to provide nationwide single centre sale events 3 Every vehicle presented to a retail clean standard 3 Expert refurbishment programme tailored to your needs 3 300 acres of secure hard standing vehicle storage
3 Established auction programme to suit both corporate and dealer group part exchange 3 State of the art Online Centre to offer vehicles 24/7 direct to marketplace 3 Asset Recovery System – digital platform to track, recover and remarket the asset 3 Fleet Management Department – Experienced, knowledgeable and dependable
For further information please contact Michael Tomalin 07808 791210 or email mt@cityauctiongroup.com
Rockingham Speedway, Mitchell Road, Corby NN17 5AF
www.cityauctiongroup.com
Škoda manufactures its two-millionth car at Kvasiny. bit.ly/skoda-107
Aston Barclay site rewarded for a great three-month spell Prees Heath, Leeds and Westbury centres win high praise from LeasePlan
A
ston Barclay’s Prees Heath site in Shropshire has been awarded with LeasePlan’s Best Service Provider for its strong performance throughout the third quarter of 2016. The Heath Road site achieved the highest score when measured on administration, valeting, sale day line-up, timing and late notifications between July and September, with Aston Barclay’s Leeds auction centre not far behind. Aston Barclay’s Westbury auction centre was also given Gold status for its service provision, performing particularly strongly in the categories of line-up and valeting. This enabled Aston Barclay’s measured sites to achieve an overall Platinum rating for late notifications, with Gold accolades awarded for its performance in admin, valeting and line-up. When measured on value, Aston Barclay’s Leeds and Westbury centres ranked strongly in Q3 2016, with its Prees Heath and Westbury sites also increasing their online sales percentage. More than 30 per cent and 33 per cent of all Q3 2016 sales at Prees Heath and Westbury,
Prees Heath reported an impressively strong performance for Q3 2016 respectively, were through its innovative LIVE online platform, representing double-digit growth when compared with Q3 2015. Looking at 2016 year-to-date value performance rankings, Aston Barclay’s Prees Heath, Leeds and Westbury centres filled the top three places, of all sites measured in LeasePlan’s Q3 analysis. Martin Potter, Aston Barclay’s group operations director, said: ‘Aston Barclay is constantly striving to provide an unrivalled, personal service to its customers. For both
northern centres to perform extremely well in both service and value is testament to not only our staff in Prees Heath and Leeds, but those across the entire Group.’ Paul Mason, LeasePlan’s general manager, added: ‘Aston Barclay’s Prees Heath and Leeds sites continue to set the standard in terms of their service, fully meriting yet another award for Prees Heath in Q3. Thanks to strong overall performances between July and September across all centres, Aston Barclay fully deserves its overall Gold service award.’
Agreement will see weekly sales of BMW and Mini cars at Chelmsford ASTON Barclay has secured an exclusive agreement with Fairfield BMW & Mini, which will see approximately 15 vehicles sold at its Chelmsford site every week. The contract with the Leigh-on-Sea dealer group – which sells a wide variety of vehicles from the German Car dealer new strip ad 3/16 and British brands – will see part-
exchanges and over-age stock offered to Aston Barclay’s growing network of local and national buyers at its popular Wednesday morning sale. Fairfield BMW & Mini will utilise facilities at Aston Barclay’s Chelmsford auction centre, which includes renovated auction Page halls and 26/9/16twin 14:32 1 full inspection, repair and appraisal areas.
THE FLEET AUCTION GROUP - THE UK’S
N1 O
TRADE ONLY AUCTION
It will also have access to cloud-based reporting through Aston Barclay’s Inventory Management System (IMS). Trade buyers will also have access to Fairfield BMW & Mini stock via Aston Barclay’s online LIVE service as usual, allowing them to bid on physical sales in real-time if they are unable to be there in person.
BCA
Digital bids hit a record monthly high BCA has reported record bidding activity through its Live Online platform during November. The digital channel that supports physical auction activity peaked with the highest average monthly penetration seen this year of 27 per cent. The growth of digital sales is supported by ongoing expansion and investment in the infrastructure of BCA’s physical auction network. Commenting on the development, Stuart Pearson, managing director of UK remarketing at BCA, said: ‘The continued growth of Live Online is underpinned by some significant investments; our imaging and appraisal technology provides buyers with a consistent description of a vehicle’s condition. ‘BCA Assured provides buyers with added confidence to bid through an independent mechanical report conducted by the AA. Our market-leading vehicle search capability provides buyers with access to thousands of vehicles via a few keystrokes and Dealer Pro ensures that vehicles are pushed to the market often in advance of them arriving at a physical location.’ BCA says Tuesday is the busiest day for its digital platform.
Purpose built 12 acre auction complex Central UK location Fixed cost buyers premium Fleet Car Sales every Monday & Thursday at 10am Collection of vehicles 24 hours a day, 7 days a week Excellent variety of weekly stock from premium sources Regular Top Car Sales. Vans, Truck & Plant every week Enclosed and heated auction halls and viewing area All new website & stock locator. On-line bidding The UK’s finest auction restaurant Call for account application
The Fleet Auction Group Ltd., Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG Telephone: 01530 833535 Email: info@fleetauctiongroup.com www.fleetauctiongroup.com CarDealerMag.co.uk | 107
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Mercedes Teases The Hybrid Hypercar It’s Going To Make
Grand Tour Trailer Sees Clarkson Poke Fun At Trump
Mercedes is planning a hybrid hypercar to compete with Red Bull and Aston Martin’s attempt from last year. It is designed to celebrate Mercedes-AMG’s 50th anniversary. Go online to: bit.ly/SU-hypercar
As well as mucking around on a beach in Barbados with heavy lifting machinery, a recent trailer for The Grand Tour saw Jeremy Clarkson get a bit of a dig in at Donald Trump. Go online to: bit.ly/SU-trump
Ice Work If You Can Get It! But This Modern Classic Is Our TV Ad Bear Keeps Falling Over New Favourite Motorbike The filming of a car dealership commercial in America took an amusing turn when a chap in a white bear costume fell over on an ice rink. Then he did it again. And again... Go online to: bit.ly/SU-bear
Are you drawn to motorcycles of yesteryear but repelled by their high maintenance and low power? Fear not. Italian entrepreneur and bike enthusiast Fabio Cardoni has the solution. Go online to: bit.ly/SU-fabio
Numpty Driver Runs Out Of Talent In Rented Supercar
Innovative Bike Tech Will Help Riders Keep Their Balance
Think how dangerous a rented supercar would be in the hands of a grade-A numpty. In fact, you don’t have to imagine, because we have found a video that demonstrates it perfectly. Go online to: bit.ly/SU-rented
The thing with two-wheeled vehicles is that they can sometimes be difficult to balance on. But Honda is hoping to banish those problems by introducing ‘Riding Assist’ technology. Go online to: bit.ly/SU-tech
Dashcam Footage Shows Terrifying High-Speed Crash
Footballer’s £5 Reward After Helping With Stuck Bonnet
The horrifying moment a car was almost completely destroyed has been captured by a dashcam. It’s quite a scary impact, and the driver reacts with a slightly colourful response. Go online to: bit.ly/SU-highspeed
Hull City defender Alex Bruce was sent a £5 note by a soldier after coming to his aid at a service station. The serviceman had broken down and was unable to open his car’s bonnet. Go online to: bit.ly/SU-fiver
MONEY TALKS
..in association with Paragon Car Finance
Positives and negatives EVs are becoming more popular but brokers can run into problems with lenders
S
ales of ultra-low emission vehicles in the UK grew strongly in 2016. By November, new registrations were up 23 per cent to more than 82,000 yearto-date, and in Q3 alone used car sales grew by a whopping 34 per cent to more than 21,500. While still a small proportion of the overall UK motor parc, alternatively-fuelled vehicles are clearly on the rise and look set to accelerate. What are the costs? Although upfront costs for motorists tend to be higher than for traditional petrol vehicles, drivers who take the plunge can look forward to lower running costs and less noise, alongside the satisfaction of a reduced carbon footprint. Most of our electricity today is generated using fossil fuel, but even allowing for this, ‘wellto-tailpipe’ emissions for electric vehicles are still considerably lower and falling all the time.
Will 2017 be a breakthrough year? To date, one of the key factors constraining demand for electric vehicles has been their range. Put simply, the range of a vehicle is the distance it can travel before you need to recharge the battery. As range is extended, things get a lot simpler. Even today, an overnight charge at home is more than enough to manage the daily commute for most drivers. For example, the Nissan Leaf hatchback has a range of up to 155 miles in normal driving conditions. This compares favourably with the daily average of 63 miles covered by 80 per cent of Europeans. Extending battery range and taking away the hassle of finding a charging point when you’re out and about will continue to be crucial in encouraging take-up. What finance options are available? Our regular Headlight Survey of the UK’s largest
motor finance brokers confirms that demand for finance for electric vehicles is also on the rise. More than half of brokers (52 per cent) reported strong demand for finance for alternativelyfuelled vehicles compared with last year. While all brokers are supportive of the growth, more than half reported difficulty in arranging finance at least some of the time. Some of the most common problems cited in setting up finance for electric vehicles included uncertainty around battery life and replacement cost, inability to forecast the residual value of the vehicle and the potential for battery obsolescence. However, lenders will not want to be locked out of what is most definitely a growth market in the UK motor parc, and as battery technology and car values both become much more predictable, you can fully expect the availability of finance to increase.
Any questions?
If you have any finance questions relating to the motor industry, please send them to Paragon Car Finance at pcf@paragonbank.co.uk
I love it when a
Finance plan comes together Paragon Car Finance offers lending packages to Light Commercial dealers. With a range of attractive deals, we’re confident your customers will find the right deal for them.
What we can offer Hire Purchase Minimum VAT as deposit VAT applicable vehicles only Loans £2,500 to £50,000 120% CAP Retail Maximum start mileage 120,000 Maximum age of vehicle 10 years at end of term
0345 149 7777 pcf@paragonbank.co.uk www.paragoncarfinance.co.uk/lcv Paragon Car Finance is a trading style of Paragon Bank PLC. Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 5390593. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. BPCF13535 (10/2016)
BPCF13535 - LCV Advert - Car Dealer.indd 2
CarDealerMag.co.uk | 109 07/11/2016 09:28
110 | CarDealerMag.co.uk
KEY NOTES
..in association with Traka
Buyers want expertise Dealerships need to employ product geniuses as well as salespeople, says Paul Smith
W
e hear a great deal about changes that are afoot in the dealership world. We know that car buyers take fewer trips to dealerships before making a new car purchase these days. The main reason for this is that a whole lot of online research is going on. So, customers are most likely to arrive in your dealership today to ‘go physical’, test-driving a chosen vehicle, getting an in-depth briefing on some shortlisted options, or to educate themselves better about financing options and interior finishes. After all that online research, they could be a massively qualified lead – if only you could get inside their heads or, more specifically, their web browser history. However, without some very slick marketing automation which feeds their browsing history to your mobile device in the blink of an eye (that could be coming if you listen to some tech futurologists covering this market), you are not going to have access to that intelligence unless they start talking. This new dynamic means your sales agents’ listening abilities are the key to initial engagement. It’s critical that sales agents don’t see pound signs in their eyes and begin selling them that new family estate when they are actually looking for a small car for their daughter who is 21 next month and has just passed her test. It’s the reason why some prestige brands, BMW and Audi most noticeably, have begun changing the mix of staff they have in their dealerships. So out goes the commission-hungry pack of wolves and in come product geniuses for an in-depth look at the car(s) of interest to the customer. This is quite a change for dealerships in HR terms as they need to begin hiring people with attributes that previously they were not looking for. Most DPs know a sales dog when they see
one, but do they know a would-be product genius? It’s much more difficult. It may also mean higher payroll costs as current heavy dependence on commission for salaries has to be reduced for the genius concept to work. This move becomes all the more pressing as cars become increasingly sophisticated. Masses of computing power is now embedded into new cars. For their optimal use, you need to be able to navigate multi-layered on-dashboard menus. In the absence of being able to ask our car directly how to make a set-up change – although this too could be coming down the pipe – we still rely for much of this information on the dealer in the first instance. This is a genuine opportunity for dealers to get and stay close to existing customers – they need to grab it with both hands or leave the OEM to fill the void. No surprise then that we are seeing an increasing shift to imparting that information in a more digestible visual format through online video demonstrations, 3D walk-throughs, and the expensive ‘digital dealership’ big-screen configurator experiences that have been deployed in some of the smaller-footprint, high-value urban sites like Audi City on Piccadilly.
If your dealership does not have all this technology already, you might need to plan for it in your next showroom refresh. In the meantime, beware of information overload at new-car handover point. Watch customers’ eyes glaze over as you talk them through the fifteenth configuration option when all they want to do is get off your forecourt and out on to the open road. Why not offer a post-sale session back at the dealership to answer some of the questions that have cropped up in the first couple of weeks of use? Alternatively, you could offer them an in-depth immersion experience with an expert in their car’s capabilities. This works particularly well for Land Rover – the manufacturer offers Land Rover off-road experience days following the purchase of any of their 4x4s. Porsche also offers all new Porsche owners a session at their driving experience centre at Silverstone. These are not only great talking-points that inspire brand loyalty. They also enable manufacturers to show the full functionality and capabilities of their cars. The message then is that dealers need to help their customers understand more about the vehicle they are considering buying, enabling them to explore its full potential as well as working through the usual discussions about financing options, trim colours and upgrades. Assigning a genius to one new, higher-end vehicle may be one way to start down this road. Some people may still not be interested in the detail but it is important to recognise that a good portion of those arriving in your dealership already know the basics about the models they are interested in, gleaned from earlier internet research, and they are looking to go to the next level by talking to a real expert – you!
Who is Paul Smith?
Paul Smith heads Traka Automotive, part of the ASSA Abloy Group brand Traka. ASSA Abloy bought the electronic key management software provider eTag Solutions, which was founded by him. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.
Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive Email automotive@traka.com or call 0845 225 2910
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CarDealerMag.co.uk | 111 15/12/2016 09:56
THE FLEET.
LATEST FROM THE FLEET... Farewell report:
Second report:
Second report:
Third report:
FordMondeo
MitsubishiMirage
SkodaSuperb
MiniClubman
We’ve so enjoyed wearing Mondeo man’s moccasins over the past six months
Leaping to defend the compact one
Roof rack? Who needs a roof rack?
Fun to drive even if the audio is fiddly
THE longer I spend with my Mitsubishi Mirage, the more I find myself compelled to defend the compact car. You see, I’m discovering that it’s got a bit of a bad reputation. Not for any one thing, but in the eyes of some it just ain’t cool. True, the boot really doesn’t hold a great deal, there’s pretty much no room in the back for people with normal-length legs, and the rear parking sensors are almost paranoid in their sensitivity. But there’s a charm about the Mirage, something loveable. I enjoy driving it, I still enjoy those heated seats and the light handling, I enjoy pootling about town in it, and I enjoy being on the motorway in it. Everyone else keeps telling me I shouldn’t enjoy it at all. Maybe it’s my sense of rebellion or my need to support the underdog, but either way I’m looking forward to driving in my Mirage this year. Go ahead, laugh. We don’t care. Clare Newman (@ClareNewman81)
MAKE no mistake, the Superb is a fantastic car, packed with features that make life easier plus enough space, technology and comfort to make it all the car you could ever need. Three-hour journeys rarely seem a chore in the Skoda and there hasn’t yet been a situation where I’ve thought, ‘That’s too big to fit in the boot’. We ordered the Superb with a roof rack but there’s so much space inside that it’s yet to be taken out of the box. Bike, tyres, trees and even rose bushes have been slotted effortlessly into the luggage compartment. Two Ikea flat-pack drawers fitted in so perfectly I can only imagine they were engineered with the Skoda’s boot in mind. The flexible boot floor is a bit of a struggle to operate. In theory, it allows you to stop things moving around too much in the vast space but in reality it’s such a struggle to use you end up swearing at it. Tom Barnard (@TomBarnardPR)
THE more I drive the Clubman, the more I like it. It’s a prime example of why you should never judge a book by its cover. Under those questionable features lurks an admirable breadth of talent. The seats, for example, speak more of couture than comfort, but it’s the latter they deliver. Tedious motorways, winding B-roads and even city-centre jams all seem to be happily soaked up by the leather. It isn’t just a comfortable cruiser, either; it’s fun to drive. The steering is pretty much spot on, the diesel engine is punchy enough to make overtaking a breeze and it’s efficient, too, managing to top 50mpg without undue effort. One minor irritation, though: trying to change tracks on the stereo. What is simple and functional on other vehicles has, for some inexplicable reason, become more of an issue on the Mini. Other than that, I’m getting on well with the car. James Fossdyke (@JFossdyke)
LET’S be honest, Mondeo man didn’t get off to the greatest start, being used first as a political pawn, then becoming something of a well-worn joke for well-worn motoring journalists talking about a well-worn family car. Oh, wait… Anyway, for six months, we had the chance to slip into Mondeo man’s moccasins, and we loved it. Ford’s big estate may not have the handling dynamics of its forebear but it’s still a hugely competent allrounder, combining space, style and comfort in one easy-to-drive package. First, we fell in love with the looks. You can slate Ford all you like for copying Aston Martin with that downturned grille, but there’s no denying it looks great. Then there are the beautifully judged creases down the side and the narrowed eyes of the headlights. It impressed inside, too, despite the cabin’s well-documented lack of solidity compared with the VW Passat. It feels more personable and more modern than the Passat’s interior, and though it may show its age in a few years’ time, it handled the 26,000 miles it covered in our care with consummate ease. As we waved it away, there was hardly a creak in the cockpit. 112 | CarDealerMag.co.uk
And then there’s the raison d’etre of any estate car – practicality. The Mondeo quickly became the car of choice for anyone in need of something roomy, and in its short time with us it moved house twice, ferried various bulky items around the country and was even used as a camera tracking car. Other plus points included the ride comfort, which was good, and the economy, which managed to top 40mpg without effort. So what didn’t we like? Well, the sport mode was a completely pointless exercise, and the nowdefunct Sync 2 infotainment system suffered the odd glitch, but otherwise it was completely plain sailing. We waved goodbye to EA16 USY with heavy hearts but we look forward to its replacement – a Galaxy. James Fossdyke (@JFossdyke)
THE KNOWLEDGE Model: Mondeo Titanium TDCI Auto Price: £29,375 Engine: 2.0-litre, 6-speed automatic Power: 208bhp, 450Nm Max speed: 142mph 0-60mph: 8.1 seconds Emissions: 134g/km Mpg: 54.3 (combined) Mileage this month: 1,029 THIS MONTH’S HIGHLIGHT Fond memories of a competent, likeable car.
THE KNOWLEDGE Model: Mitsubishi Mirage Price: £13,499 Engine: 1.2-litre, 3-cylinder automatic Power: 79bhp Max speed: 107mph 0-60mph: 12 seconds Emissions: 99g/km Mpg: 65 (combined) Mileage this month: 1,437 THIS MONTH’S HIGHLIGHT Those heated seats again. They do wonders for lower back pain. Bliss!
THE KNOWLEDGE Model: Skoda Superb Estate Laurin & Klement Price: £33,555 Engine: 2.0-litre TDI Power: 148bhp, 400Nm Max speed: 146mph 0-60mph: 7.7 seconds Emissions: 142g/km Mpg: 52 Mileage this month: 1,736 THIS MONTH’S HIGHLIGHT Effortlessly fitting a pair of Ikea flat-pack drawers into the capacious boot.
THE KNOWLEDGE Model: Clubman Cooper SD ALL4 Price: £36,070 Engine: 2.0-litre turbocharged diesel Power: 188bhp, 400Nm Max speed: 138mph 0-60mph: 7.1 seconds Emissions: 126g/km Mpg: 58.9 (combined) Mileage this month: 872 THIS MONTH’S HIGHLIGHT Enjoying the comfort of the seats wherever we are.
LONGTERMERS Sixth report:
Sixth report:
Sixth report:
Seventh report:
Tenth report:
AudiQ7
DS4Crossback
SeatIbiza Cupra
SuzukiVitara
KiaSportage
Wetter times put things in a spin
Time plays tricks but the ride is light
Christmas drive to family is a breeze
AT THE risk of sounding repetitive, the Ibiza Cupra just keeps getting better. I’m now struggling to find aspects that I don’t get on with. It’s fast – much more so than you’d expect – and it’s usable every day. There is one aspect of the car that has become a touch annoying, although this has only come to light as we’ve entered the wetter months of the year – traction. In short, there’s such a lot of horsepower for the Cupra’s wheels to deal with, you find them almost constantly spinning up in the wet, and although this may sound fun initially, it can get a touch annoying on damp junctions. That said, if you’re more gradual with the throttle you can eradicate most of the wheelspin, but it gets in the way sometimes. In other aspects, it excels. For example, it’ll return mpg figures in the upper 30s on a long run, which isn’t bad for a small car with a 1.8-litre turbocharged petrol engine. Jack Evans (@jackrober)
THERE’S a remarkable array of clocks in the Vitara and, curiously, they all seem to be wrong. Along with the digital clock in the driver’s information display panel, there’s an analogue one at the top of the centre console and a third – another digital – on the LCD touchscreen. For much of the time, they disagree with each other – and the actual time too we found when looking to beep in 2017 by a beach. All this despite the touchscreen clock supposedly being set by GPS. Well, you can just set them right, right? Nope. The driver information display is set by a couple of long plastic toggles either side of the binnacle and are pretty vague. This aside, the Vitara’s perhaps not the most refined long-distance ride and the mpg is more like low-to-mid-40s, but it’s light and easy to drive. It may not have been Santa’s sleigh, but it was still a welcome sight over the Christmas season. Andrew Evans (@snavEwerdnA)
WHAT a fantastic Christmas present the Kia Sportage was. Where I live and where I would be having Christmas with my family is only about 100 miles apart, but the slog up the A34 can get quite tedious. I was therefore keen to get my hands on something automatic and fast: credentials that the Sportage fulfilled easily. Once again, I’d gone overboard with the presentbuying, so I knew I’d need something roomy too, and with a big boot, even with the rear seats in place, there was more than enough space for the gifts, plus the great thing about it is the boot floor is flush with the edge, so there’s no extra lip to lift your belongings over. There are a lot of other plus points when driving long distances as well. The First Edition interior is light and airy, plus those seats are really comfortable. The sat nav really impressed, too, and the Bluetooth audio was easy to set up. Rebecca Chaplin (@believebecca)
Boot is up for it – in Long and the short more ways than one of it is... what a pain
GETTING back into the Q7 after the launch of its little sister – the new Q5 – made me realise just how big it is. That space has come in handy plenty of times, most recently on festive duties collecting a Christmas tree. The conifer came in a pot, and with some fiddling with the rearmost set of seats I had it strapped in place quite comfortably. Unfortunately, the Q7 is asking for another six-litre helping of AdBlue. This emissions-lowering solution works out at about two litres per 1,000 miles, which isn’t too costly but is a pain to sort out – especially as if you ignore it the car will simply stop working. I’m also keeping an eye on the engine, which seems noisier, and the phenomenon that is the mysteriously opening powered tailgate. I’ve left the office twice now to find the boot up. I suspect I may have sat on the key in my pocket, but I can’t be sure. James Baggott (@CarDealerEd)
THE KNOWLEDGE Model: Q7 3.0 TDI Quattro S Line Price: £65,250 Engine: 3.0-litre, TDI Power: 268bhp Max speed: 145mph 0-60mph: 6.5 seconds Emissions: 153g/km Mpg: 48 (combined) Mileage this month: 1,237 THIS MONTH’S HIGHLIGHT Getting the Christmas conifer comfortably strapped in.
THE good news – if you can call it that – is that I haven’t grown an irrational dislike for the car. Wondering if perhaps I’d previously been too harsh on the Crossback, I’ve been canvassing opinion among colleagues and most agree that the way it drives is disappointing. Following one colleague’s 700-mile round trip, I asked for a short review. He didn’t have as much issue as I do with the driving position, which had me thinking that perhaps my lanky frame might be to blame. But another colleague who is considerably shorter than both of us had the same complaints as me. The seat might have been fine for him, but his gripes about what it’s like to drive sounded all too familiar. ‘The ride was somehow too soft and wallowy while also being crashy at low speeds,’ he said. The prosecution rests. Darren Cassey (@DCassey)
THE KNOWLEDGE Model: DS 4Crossback BlueHDi 120 Price: £24,045 Engine: 1.5-litre turbodiesel Power: 118bhp, 300Nm Max speed: 117mph 0-60mph: 10.9 seconds Emissions: 103g/km Mpg: 72.4 (combined) Mileage this month: 1,014 THIS MONTH’S HIGHLIGHT Finding out I’m not alone in disliking a number of aspects of the Crossback.
THE KNOWLEDGE Model: Ibiza Cupra Price: £18,900 Engine: 1.8-litre turbocharged petrol Power: 189bhp Max speed: 146mph 0-60mph: 6.8 seconds Emissions: 145g/km Mpg: 45.6 (combined) Mileage this month: 312 THIS MONTH’S HIGHLIGHT Getting fuel consumption figures in the upper 30s on a long drive.
THE KNOWLEDGE Model: Vitara S ALLGRIP Automatic Price: £24,285 Engine: 1.4 Boosterjet Power: 138bhp, 220Nm Max speed: 124mph 0-60mph: 10.2 seconds Emissions: 128g/km Mpg: 51.3 (combined) Mileage this month: 1,100 THIS MONTH’S HIGHLIGHT Ringing – or rather honking – in 2017 by the beach, even if midnight was a bit out.
THE KNOWLEDGE Model: Sportage First Edition 2.0 CRDi (auto) Price: £31,645 Engine: 2.0-litre diesel Power: 182bhp, 400Nm Max speed: 125mph 0-60mph: 9.2 seconds Emissions: 166g/km Mpg: 44.8 (combined) Mileage this month: 874 THIS MONTH’S HIGHLIGHT Not struggling to get the many Christmas gifts I’d bought into the boot. CarDealerMag.co.uk | 113
BAGGOTT.
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Diesel’s in danger – and we need a solution, not scaremongering R
oll back just a few short years and anyone and everyone was buying diesel. It didn’t matter whether you were going to spend most of your time pottering around town or on short runs to the school and back, diesel engines were said to be more economical and cheaper to run and therefore became the default choice for car buyers. But the tide is changing. It doesn’t matter that new diesel engines are cleaner than ever – not to mention the incoming Euro 6 units – diesel is now as welcome as a rattle snake in a lucky dip, and I can’t see the mood changing any time soon. In the last month, it’s been demonised in national newspapers and on television. Only this morning on my way to the airport to Detroit, I listened to a debate on the Today programme where John Humphrys asked another ill-informed politician what she’d do to clean up air quality. Her answer? ‘Ban all diesel cars from the road.’ That’s quite a strong stance, wouldn’t you say? And then a few weeks before, in an article in the Evening Standard, I read a piece by Simon Birkett, the founder and director of Clean Air in London and an advisor to the EU’s environment programme, in which he claimed it was ‘car salesmen who are the problem’. He wrote: ‘Salesmen in car showrooms are contributing to the problem. I despair of hearing stories of people wanting to do the right thing yet being conned into buying a diesel car. ‘One streetwise campaigner tried to cancel their order the following day and was told “tough luck”. Other car showrooms aren’t displaying a single petrol vehicle in case you ask about it and tell you it will cost more than a diesel if you do.’ Now I have no idea who Simon Birkett is, but he’s obviously a plonker. Yet this is the sort of plonker who writes in national newspapers with an agenda to ban diesel cars. And if we’re not careful, people will start taking plonkers like Simon Birkett seriously. Our industry needs to do something radical – and start lobbying the government for a serious solution to what is in danger of becoming a tsunami of misinformation and mistruth. At our Automotive Influencers event at the end of last year – and reported on in this issue – some manufacturers called for a scrappage scheme that targets ‘dirty diesels’. They said not only would it help bolster sales in a falling market, but also help solve a perennial problem. I find it hard to argue that a fall of five to six per
Who is James Baggott?
cent in new car sales this year, as predicted by the SMMT, is enough of a drop to warrant a new scrappage scheme. However, if that scheme was to be targeted at removing poor performing diesel engines from the roads, it would make far more sense. Removing those old diesel-engined cars – the likes of which we see churning out toxic gases in every town and city up and down the country – makes sense. What that berk Birkett, or the ill-informed MP on Radio 4 don’t realise is that banning diesel is not the only answer. Modern diesel engines are by far and away more efficient and less polluting than their counterparts of yesteryear. What if the government offered drivers of diesel-engined cars over 10 years old a £2,000 incentive to buy a new car in exchange for the old one to be scrapped? And that new car
James I have no idea Baggott ‘Now who Simon Birkett is, AGAINST OUR BETTER JUDGMENT, WE GIVE OUR CEO THE LAST WORD EACH MONTH
but he’s a plonker’
had to be a sub-100g/km model or a hybrid, or EV? There’s a particularly strong argument for it to incentivise the latter. Buyers need a kick to adopt electric vehicle technology and an additional carrot to get out of their old habits and into a new one, would make sense. It’s likely such a scheme would eventually make the government money too. The last scrappage scheme certainly did – the VAT receipts the Treasury received far outweighed the upfront cash it put into the initiative. A new scheme targeting dirty diesels could well have the same effect and would have the added bonus of helping ease the pressure of falling car sales. I’m not saying a scrappage scheme is the answer to all our problems. Far from it. We need to work together as an industry to ensure the public have all the facts when buying their next car. I find Birkett’s story in the Evening Standard hard to believe – the thought showrooms don’t display petrol cars is fanciful, but he believes it’s the case and the paper lets him get away with writing it. If we don’t act now, diesel is in danger – and when it makes sense for so many, killing it off completely would be a very sad thing.
He’s the founder of Car Dealer Magazine and chief executive officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us. 114 | CarDealerMag.co.uk
CarDealerMag.co.uk | 115
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