MILESTONE: WE CELEBRATE 10 YEARS OF QASHQAI WITH EPIC ROAD TRIP
Issue 109 | April 2017 | CarDealerMag.co.uk | £3.50
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TOP 10 SHOW STARS
USIVE INTERVIEWS CL EX F O G N RI ST IN LL A L FIGURES REVEA LEADING CAR INDUSTRY
VAUXHALL DEAL BRITISH BRAND SOLD TO T FRENCH – PLUS: BAGGOT NAMED AS NEW CHIEF?
M PEOPLE
BMW BOSS ON V12S, BREXIT AND BUILDING IN BLIGHTY
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EDITORIAL HEAD OF NEWS AND FEATURES Rebecca Chaplin
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is well known for WELCOME. GENEVA being the motor show at which car makers will unveil something a bit special, and where the odd surprise is often announced on the eve of the event – or at the show itself. This year, completely unexpectedly, one of the Car Dealer team was taken to hospital on the morning of the show’s press day. I’ll start with the news that they’re almost back to full health now (although I’m sure any sympathy you want to send their way will be greatly appreciated), but having a colleague drop out of what is a minute-by-minute plan was not something I had expected at all. On our return from the show, all seemed well, but that didn’t prove to be the case. As I was driving my colleague – who was assured they were safe to fly by Swiss doctors – away from Heathrow and they began to writhe in pain, it became clear everything was not OK. With the help of the team at 111 we managed to get to A&E in good time. Why am I telling you this and potentially embarrassing said colleague in the process? Because I got to be an ambulance driver. Yes, because I was apparently classed as an ‘emergency vehicle’, I was allowed to drive our Skoda Superb longtermer right up to the main gates, run in and ask ‘can anyone help my friend?’ before someone rushed (strolled) out with a wheelchair. It was just like being in a Hollywood movie, expect I was in Surrey driving a Skoda estate. That said, there was some other important stuff which took place at Geneva – but the only thing close to being as dramatic as that ordeal was the unveiling of the Lamborghini Huracan Performante. Fortunately there was a team of five Car Dealer writers at the Geneva Motor Show, checking out the latest cars so you don’t have to, and speaking with manufacturer bosses. During our interviews, it became clear that the way we sell cars is changing drastically and the industry must react.
In short, there has been a huge shift in the way the industry works, but your fate is in your hands. Do you embrace change or stick to what you know? That starts with the very basics of communicating options to customers, and I know I don’t have to teach you to suck eggs, but a recurring theme in our conversations was the vast array of choices buyers have when it comes to fuel options these days. For those selling new cars, the fuel landscape seems to be changing fast, but where does this leave used car dealers? With online car sales on the table for most manufacturers, not to mention car sharing, the way customers buy and own cars is changing dramatically too. We’ve got full coverage of the motor show from p30, so take a look. We’d love to hear what you think of our reports – and the cars at the show! This month, we’ve also got an exclusive interview with one of the most important figures in the automotive world: Dr Ian Robertson, who sits on the BMW Group board and is arguably the most senior Brit in the car industry. Our CEO James was fortunate to be in Palm Springs to try out the brand’s new M760Li and spoke to Dr Robertson during his trip. This month you may have heard that a very important car has received an update. Yes, the Nissan Qashqai is back and we’ve been piloting first and current-generation models in a mammoth road trip around the UK. Also this month, I bought a new car. I report that things went far from smoothly on p27. Enjoy the issue.
Rebecca Chaplin Head of News and Features
CarDealerMag.co.uk | 03
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INSIDE. ISSUE 109 I APRIL 2017
Dashboard
06 Vauxhall sold to PSA 12 Around the UK 14 CDX: Looking ahead to May 23 16 Car Dealer Power latest 20 Lookers’ transformational year 21 Rebecca Chaplin 27 Geneva Motor Show special 30 Around the World 55 Finance 56 Big Mike 61 Feedback
We put the new Mercedes-Benz E-Class Coupe to the test
10
113
A Swedish long-termer joins the fleet
Why the Rolls-Royce SRH is such a special car
Forecourt
‘‘
Alfa Romeo Stelvio Seat Leon Cupra 300
The boss man over the Channel has already said even the Vauxhall name isn’t sacrosanct.
61
Big Mike... on the spiralling values of so-called classics
114
James Baggott
Volkswagen Golf Mercedes E-Class Coupe
Feature Data File
The Statistics Market Insight Taking Stock Auctions Money Talks
80
Key Notes with Traka Long-termers A special road trip to mark 10 years of the Nissan Qashqai
70
Doctor’s orders
Car Dealer Club
James Baggott
62 64 65 66
94 96 99 101 102 106 107 111 114
OUR EVENTS... As voted for by dealers, Car Dealer Power is unique. Turn to page 20 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. Turn to pages 16-17 for the lowdown on this year’s event. CarDealerMag.co.uk | 05
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I don’t know anyone in the trade who enjoys it AFTER 40 years as a small independent dealer (5ft 7ins), I am hanging up my Glass’s Guide – well I would if I had one. You see, it’s all part of my demise in this techsavvy, social media, virtual world. Not all of us generate enough money to spend on Auto Trader adverts so you rely on local ads, repeat custom, word of mouth and reputation. A customer of many years, via the net, recently decided to travel 200 miles to buy a ‘bargain’ and then brought it to me to bail him out. This is just part of the whole problem with the trade that used to be fun, exciting and profitable all at the same time. Now I don’t know a single person in the trade who enjoys it. Then there is the problem of getting good, honest stock at sensible money. The auctions are filling up with rubbish or cars that they already own so you are paying third party profit before you start. The cars are sometimes locked so you don’t know if they stink of vomit or spilt milk and the keys are handed to a driver who tries to shut the door on your fingers while you appraise it. Don’t ask about the buyer’s fees because they are higher than Cuba’s national debt. The auctions seem to have forgotten about the dealer who drives a 150-mile round trip to stand for three or four hours in winter to buy stock. Some of us still like to see, touch and smell what we are buying. If you do manage to acquire some good retail stock, you can rest assured you will have too much money in it and your potential customer has decided to lease. Quite often, you would get the chance of a car off the street from somebody emigrating, giving up motoring or whose wife has run off with a salesman but that’s all gone too. When a TV ad tells you you could have got more for your car if you could be bothered to get off your arse, you know the job is knackered. I come from a generation of ‘in it for life’ dealers who have dedicated a lifetime to providing a service in a small community while trying to keep body, soul and family together. So now it’s ‘my time’ so if you see a fellwalker with a sandwich made from tin trade plates, say hello. I’m out. Anon
Tweets of the month We’re really loving the balloon arches across @Marshall_VW for the #LoyaltyEvent. Here’s a bird’s eye view of the arch at #SouthOxford! Marshall Volkswagen @Marshall_VW 4 Interviews done for #apprenticeship – Well impressed. #punctual #smart – ALL made great efforts – difficult decisions ! Umesh Samani @specialistcars1 I can now say that Chris, Rory & Matt are in the same league as Jezza & co. #TopGear Peter Henry Todd @Peter_H_Todd 06 | CarDealerMag.co.uk
Picture of the month Go on holiday to France, we said. Share a room, we said. It’ll be fine, we said. You may recognise those distinctive eyebrows and perfectly coiffured quiff of this burritowrapped bedfellow as belonging to the former editor of this parish, James ‘Now Appearing On YouTube’ Batchelor. He and boss man Baggott decided to use two days after the Geneva Motor Show to grab some time on the slopes – but little did they know that those of us back here at Car Dealer Towers would be booking their room. Thankfully the message ‘beds as close as possible to each other’ got through...
Diesel’s had its day
There are fantastic opportunities for the motor industry and car dealers from a transition away from diesels – but it need to happen. Take myself as an example. For my sins, I currently drive a range Rover Evoque 9 Speed Auto Diesel with the old Ford engine. I discovered in April that in real-world tests it produces as much NO2 as 25 petrol cars! If I swapped it for an average Euro 6 diesel it would emit about as much as eight petrol cars on average. Funnily enough, in the case of my car, the newer Evoques have improved but are still equivalent to three petrol cars (improved thanks to an Ingenium engine and an Ad Blue tank). Here’s the rub. I live in London which is suffering from terrible air pollution. If I switched to an average Euro 6 diesel my NOx drops by 68 per cent, a new Evoque diesel by 88 per cent or almost any petrol I’d reduce my pollution by 96 per cent. And the petrol’s faster! So for now, the petrol Audi Q5 or a Skoda Kodiaq will be top of my list. I think diesel for cars has had its day. David Nicholson River Gecko
There has been loads of media scaremongering lately about diesels and I wondered if any of you have noticed a change in buyers’ choices because of it? I am definitely finding buyers want petrol again. We have 40-odd cars in stock and a couple of years ago it was a 50/50 split but now we only really stock diesel SUVs and a couple of hatches. Punters pretty much all seem to turn up bemoaning diesels (even if I think they would benefit from one) and I can only assume this is because of the media coverage. Personally I only drive diesel because it suits my driving and journeys. For me that’s the thing... it’s about buying the right tool for the job. I think a part of the problem with diesels is simple mis-selling of new cars. The number of people I get turning up in 12-plate Jukes or Kugas saying they have had to replace/regenerate the DPF more than once already is bordering on silly. When probed though, this always seem to be through mis-use... school runs and stop-start trips etc. grant8064 Slightly, some customers recently have bought petrol and clearly stated to me they do not want diesel, then there are the others who will only ever buy diesel mainly due to the lower tax bracket. I only drive petrol and have never actually owned a diesel car I could call my own. Tom I always seem to have a decent margin in diesels, high or low mileage, but they then either need more prep or they come back with problems and they are never cheap fixes. I now try to stay away from diesels or just have a couple that I know inside out. I just want cars with less headaches and half-decent margins. David Gott
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DASHBOARD. ASE
£2,600 average profit for dealers
THE average UK car retailer made a profit of £2,600 in January, beating the result from January 2016 when they scraped above break-even, according to figures from profitability specialists ASE. Chairman Mike Jones said: ‘While it is certainly too early to start celebrating, this is clearly a good start to the year. We will only get a full picture of performance once we have closed the first quarter. However, initial indications are good.’ In many cases, Jones said, the ASE saw a continuation of 2016’s trends in January. Registration levels were pushing ahead, with new car sales lagging behind and genuine retail sales falling, while self-registered cars continued to be remarketed as used cars. ‘There is no sign yet of excessive pricing pressure on used cars as a result of this,’ said Jones. ‘The first quarter of 2017 looks like it will produce a record registration quarter, which should bring a boost to profits. We will wait to see whether it is one last hurrah or if the temptation to continue to push UK market registrations proves too great.’
‘Irresponsible’ Jaguar XE ad plugging car’s hands-free tech banned by ASA A
n ‘irresponsible’ ad for the new Jaguar XE car’s handsfree mobile technology has been banned for encouraging unsafe driving. The advertorial for Jaguar Land Rover, which appeared in The Guardian, described new in-car features such as wi-fi connectivity and smartphone-integrated apps, allowing the driver to ‘organise your next meeting and stay in touch with colleagues and family on the move’. It said: ‘For busy executives, the car is increasingly becoming an extension of the work place. ‘What was once a cocoon of time in limbo is being transformed into productive reclaimed time.’ Defending the ad, Jaguar Land Rover said it had specifically stated that any of the described functions of the car should be
Successful month for manufacturing
08 | CarDealerMag.co.uk
The banned advert
Guardian thought article was helping promote road safety, but advertising watchdog disagreed
FIGURES
UK CAR manufacturing had a successful start to 2017, with output in January up 7.5 per cent compared with the same month last year, according to figures published by the SMMT. A total of 147,922 cars were produced in the month – the best January performance since 2008. Export demand proved to be particularly strong, increasing by 10.8 per cent.
First Bugatti Chiron customer cars delivered. bit.ly/bugatti-109
The Jaguar XE
by DAVE BROWN @CarDealerDave
used without compromising safety. The car-maker believed that its hands-free features ergonomically benefited the driver and reduced the risk of distraction, allowing them to keep their eyes on the road. Guardian News and Media believed that the advertorial did not condone or encourage unsafe or irresponsible driving, but instead placed an emphasis on safety. Upholding two complaints, the Advertising Standards Authority (ASA) said it accepted that driving while using a hands-free mobile phone kit was not illegal. However, it noted that the Highway Code stated that using hands-free equipment was likely to distract drivers and advised stopping to make
or take calls, while satellite navigation systems, congestion warning systems, PCs and multimedia could also be dangerous. It pointed out that drivers could be stopped by police if they were considered not to be in full control of a vehicle because of being distracted, which could result in a motoring offence. The ASA said: ‘Whilst we understood that work-related activities and communicating with family could be carried out in the car via handsfree technology, we considered that they were likely to distract a driver’s attention from the road, therefore preventing them from having full control of the vehicle. ‘We concluded that the advertorial was irresponsible because it was likely to encourage unsafe driving practices.’ The advert cannot be published again.
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CarDealerMag.co.uk | 09
DASHBOARD.
Lookers gets the world’s best badminton players on the road. bit.ly/badminton-109
TOP GEAR
Show is back on track, say fans
TOP GEAR returned to our TV screens early in March with a trip to central Asia and a Hollywood star to kick off its new series. The BBC Two motoring show featured former Friends star Matt LeBlanc in the driving seat and Chris Harris and Rory Reid joining him as co-hosts, following the departure of Chris Evans. The last series was savaged on social media, with much of the criticism levelled at Evans’s hosting style, and many wondered whether Top Gear had many miles left in the tank. But the first instalment, which featured a trip to Kazakhstan and an interview with Scottish actor James McAvoy, fared much better, with viewers saying on social media that it was a ‘massive improvement’. ‘Top Gear is back how it should be!’ enthused one viewer on Twitter. ‘Top Gear was so sweet I could have licked it,’ said another. LeBlanc, 49, was called ‘a natural’ as a presenter and several people said the programme was better without Evans, who quit after the last series saying he gave it his best shot but that it was ‘not enough’.
AUTO TRADER
Toyotas top of the fastest sellers list FEBRUARY was a strong month for Toyota, with the 2014 Prius hybrid automatic, and the 2014 Yaris petrol automatic topping the list as the UK’s fastest selling used cars on Auto Trader, taking an average of just 20 and 21 days to sell, respectively. This is the second consecutive month an alternatively fuelled vehicle (AFV) has been included in the top three. The 2016 BMW i3 was the UK’s third fastest selling used car in January. 10 | CarDealerMag.co.uk
Very special Rolls-Royce for hospital’s young patients Project showcases ‘amazing levels of skill and technology’ by ANDREW EVANS @snavEwerdnA
Y
oung patients needing surgery at a hospital in West Sussex can now drive themselves to the operating theatre – in a special Rolls-Royce! The car has been handed over to the paediatric day surgery unit at St Richard’s Hospital, Chichester, the home town of Rolls-Royce Motor Cars. It’s hoped the experience will reduce the stress of young patients, and the corridors between the wards and the operating theatre have even been lined with traffic signs! The famous manufacturer recently welcomed two test drivers from the paediatric unit at St Richard’s, Molly Matthews and Hari Rajyaguru, to the Home of Rolls-Royce at Goodwood. Their visit served as final validation and pre-delivery inspection of the car – the Rolls-Royce SRH – ahead of the official handover to the patients, their families and the day surgery team at St Richard’s. In true Rolls-Royce style, the two children and their families enjoyed VIP hospitality, with one notable addition to the usual customer experience. Molly and Hari both enjoyed first drives on the Rolls-Royce production line, an exceptionally rare privilege
Hari Rajyaguru was lucky enough to get behind the wheel of the car! usually reserved for the marque’s chief executive during the validation process for new model families. Torsten Müller-Ötvös, CEO of Rolls-Royce Motor Cars, said: ‘We are a proud member of the community here in West Sussex. The paediatric unit at St Richard’s Hospital does vital work in providing essential care to young people and their families. ‘We hope that the Rolls‑Royce SRH will serve to make the experience for young people during treatment a little less stressful.’ Created from the ground up by Rolls-Royce’s bespoke manufacturing team, the car is specified with a two-tone paint-scheme of Andalusian White and Salamanca Blue and finished with a hand-applied St James Red coachline. The interior space is appointed with the same finesse and attention to detail afforded to every Rolls-Royce patron, with the two-tone steering wheel, seats and self-righting wheel
centres perfectly colour-matched to the St James Red coachline. A top speed of 10mph is achieved courtesy of power derived from a 24-volt gel battery that propels the car with the same quietness as RollsRoyce’s V12 engines. The bespoke manufacturing team devoted more than 400 hours of their own time to developing and handcrafting the car. Lawrie Mewse, project leader of the Rolls-Royce SRH, said: ‘I am immensely proud of what the team has achieved. This project showcases the amazing skills and technology that exist in the bespoke manufacturing team and across every area at the Home of Rolls-Royce.’ Marianne Griffiths, chief executive of Western Sussex Hospitals NHS Foundation Trust, said: ‘The RollsRoyce SRH is simply priceless. ‘It is a very special gift. I would like to say a heartfelt thank you to RollsRoyce Motor Cars.’
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CarDealerMag.co.uk | 11
DASHBOARD.
PSA boss reveals future plans for newly acquired Vauxhall and Opel Executive director of PSA Europe Maxime Picat talks to Rebecca Chaplin about the future for two famous names after the brands’ transfer from General Motors
H
aving plants in both the UK and continental Europe will be a major bonus for the enlarged PSA Group in the case of a ‘hard Brexit’, according to its executive director for Europe, Maxime Picat. The agreement reached between PSA, the owner of Peugeot, Citroen and DS Automobiles, and General Motors to buy Vauxhall and Opel offers new opportunities in what is an unpredictable time for businesses around Europe. In a wide-ranging and open interview at the Geneva Motor Show, Picat also revealed that PSA plans to sell Vauxhalls alongside Peugeots and Citroens in European dealerships and hasn’t ruled out killing the Vauxhall name off completely. Picat believes his company will be able to build a ‘European champion’, and there’s even the possibility that PSA cars could be built at Vauxhall’s Luton or Ellesmere Port plants. He said: ‘If we get a soft Brexit, nice. We could be OK and production costs in euros will allow us to make a decent margin and we’ll be fine. ‘If the Brexit is harder, maybe to have plants in the UK will be an opportunity because we will still be able to produce Opel Vauxhall cars, but maybe we can introduce a Peugeot or Citroen if it makes sense.’ The PSA boss revealed that his company’s intention is to run the newly acquired car manufacturers alongside its existing brands. Vauxhall and Opel will continue to operate as they did before the transfer of ownership. Picat described this as ‘having a status quo’ and added: ‘We will keep to all of the agreements we have signed.’ When asked if there would be job losses, Picat said he did not believe there would be but the idea of closing plants was very much still on the table. On the job losses question, he said: ‘Honestly, I don’t think so. There are a lot of questions about R&D and manufacturing. ‘We know that Opel Vauxhall has already closed a plant – we did the same in France – but
12 | CarDealerMag.co.uk
Vauxhall’s Luton plant now the European market has recovered a lot. ‘The situation has improved and making plants more efficient is key. Year after year we are improving the efficiency of our plants, it’s something we’ve succeeded with in PSA and it’s something it will be important to do in Opel Vauxhall. It doesn’t always take closing a plant to have a strong impact.’ With brand loyalty strong for the manufacturers in different regions, the intention is to keep the same names for the foreseeable future, although Picat hinted this could change. He said: ‘For now we will keep the same names. In the future we will see.’ He also confirmed that Vauxhall and Opel will continue to produce the current range of cars in their existing forms but that when the time comes for models to be renewed they will move on to PSA platforms. What this will mean for UK factories in the long run is unknown, but there is hope in the short term. Picat explained that the Opel-Vauxhall-PSA relationship was attractive to PSA because it was confident that there could be synergies between the car makers. He said: ‘Last year Opel Vauxhall produced competitive cars, Astra was car of the year. That, from my external point of view, has a clear positioning and everything else that we are going
‘Opel Vauxhall offers us an opportunity to grow outside of Europe.’ Executive director of PSA Europe Maxime Picat to build is about having a European champion, having a portfolio of brands that are very well positioned with very limited cross-shopping. The cross-shopping depending on the countries is very low, between three and five per cent. ‘For PSA today, though, this relationship and the increase in market share to 17 per cent in Europe means that it is ‘‘back from the dead’’. ‘I’ve already had feedback from people who say ‘‘wow, Peugeot is really back in the race’’,’ Picat said. ‘There is a sense of pride within our
The current and previous European cars of the year: Peugeot’s 3008 and the Vauxhall Astra
Could Peugeot kill off the Vauxhall brand? bit.ly/brandname109
Ford boss: They’re interesting partners and merger will be a challenge for them
organisation and it gives a strong signal. Even if you are almost dead, if you’ve got the will and good management and have the chance to have Carlos Tavares, you can change the game in a very short period of time.’ He added: ‘That’s a very positive message and one that we want to send to the people of Vauxhall. After years of loss, there is a way. Your situation today is not far from our situation two to four years ago. There is a way out.’ The PSA executive director was not worried
about any clash between their product line-ups and explained that the plan now was to make Vauxhall and Opel profitable by 2020. The collaboration will also offer more possibilities for the PSA Group both in Europe and globally. ‘By being together on the sales and marketing area, tomorrow I can propose to a French dealership to open an Opel dealership,’ he said. ‘They would be happy to develop their business. They would be reassured because now they know it’s within our area and the same thing in Germany, for example. ‘We are small in Germany and maybe I can use the Opel network to develop more Citroen and Peugeot dealerships and we can help one another.’ He added that the deal offered more farreaching opportunities too. ‘Opel Vauxhall offers us an opportunity to grow outside of Europe. Definitely, we have plans to grow in Ireland, in India, in China, South America and even North America. The world is open to us and we need to grow to balance our footprint.’ James Baggott, p114
VAUXHALL’S impending sale to PSA Group doesn’t worry the boss of Ford – its biggest rival in the UK – in the slightest. Talking exclusively to Car Dealer Magazine, Andy Barratt, chairman and managing director of Ford of Britain, said that despite the bitter rivalry between the two biggest-selling UK manufacturers, new owners for Vauxhall were the least of his worries. ‘Genuinely, hand on heart, I don’t even think about competition,’ he said. ‘They’ve got a product, they’ve got their own routes to market. We have five million customers in the UK and my worry is whether I am serving those customers right. That consumes my day, to be honest.’ Barratt explained that the news didn’t shock him at all when it broke – especially after the announcement was made that the two parties were in talks. ‘Once the news broke, I expected it to go through,’ he said. ‘It’s not a shock. I think it’s inevitable there will be consolidations in any industry. ‘They’re an interesting pair of partners and it’ll be an interesting challenge how they merge two very big brands. I wish them all the best.’ Barratt refused to be drawn on whether his firm would be using the period of uncertainty that will engulf Vauxhall and its dealers between now and the sale going through as an opportunity to pounce. ‘That would be churlish,’ he said. He added: ‘I’m really confident in the product we have. We’re just about to launch the next generation of Britain’s bestselling car. I’m really excited about what we’ve got going on and that’s just the focus of our attention. It’s not a very good news story, but it’s a fact.’ Ford at Geneva, p32
Andy Barratt: ‘There will be consolidations in any industry’
CarDealerMag.co.uk | 13
14 | CarDealerMag.co.uk
LEICESTER: Sturgess Motor Group has won a Feefo Gold Trusted Service award, an independent seal of excellence that recognises businesses for delivering exceptional experiences and is rated by real customers. Trusted Service is awarded to businesses that use Feefo to collect genuine ratings and reviews. Sturgess Motor Group collected more than 700 reviews between January 1 and December 31, 2016, achieving a Feefo service rating of between 4.5 and 5.0 during that period. Chris Sturgess, Sturgess Motor Group chairman, said: ‘It’s a real honour to receive this award.’
‘Feefo award is a real honour for us’
CUMBRIA: B&H Motors has relocated to new premises in Lillyhall, Workington, after receiving a funding package from Clydesdale Bank. The Seat dealership, which previously operated out of rented premises in nearby Whitehaven, has been in business for more than 50 years and won Seat Dealer of the Year in 2007, 2008 and 2012. The new site in Lillyhall is three times larger than the previous dealership and will carry three times more used car stock. B&H Motors has employed a further four people from the local area to support the increased scale, with plans to continue hiring.
B&H Motors recruiting after relocating CASTLEFORD: Car supermarket Motorpoint has helped a young footballer realise his dream by flying off to Spain to train with Real Madrid. Jake Proctor, who attends Castleford Academy, has been playing football since the age of five and is currently playing as an attacking midfielder for Robin Hood Athletic JFC. He was offered the opportunity through the club to participate in the coveted Coerver Performance Academy at Real Madrid. Motorpoint paid the cost of Jake’s return flights from Manchester to Madrid as well as his accommodation during the five-day trip.
Motorpoint’s support for young footballer
What’s been hitting the headlines on the home front? Here’s a round-up of stories
BOSTON: Vertu Honda is preparing for an exciting 2017, as it celebrates the opening of its new showroom in Boston, Lincolnshire. The dealership, which has been on the same site in Marsh Lane since 2000, has seen its showroom transformed into a modern retail store, offering an enhanced customer experience. The growing company has invested significantly in the outlet. Work on the premises started in October 2016 and was completed in January. As well as the showroom itself being bigger, the building now boasts a host of new facilities.
New facilities and a bigger Honda home!
MIDDLESBROUGH: A member of staff at Jennings Seat, part of the multi-award-winning Jennings Motor Group, is pursuing a career in car sales after successfully passing his practical driving test. Callum Batkin, 20, from Stockton, had always wanted to work in car sales but there was one thing stopping him – the fact that he couldn’t drive. Staff at the Jennings Seat dealership in Cargo Fleet Lane took the ambitious youngster under their wing and appointed him as a service advisor with the aim to transfer to the sales department as soon as he passed his practical driving test. And now he’s done it!
Callum moves to sales after test success
News from around the UK DASHBOARD.
CarDealerMag.co.uk | 15
NEWPORT: Car supermarket Motorpoint has appointed Chris Brown as general manager in Newport. Brown, below right, who until recently was the sales manager, will oversee the 50-strong team based at the company’s branch near the Newport Retail Park. He replaces Russell Louth, who has been promoted to the position of head of group operations at the company. Brown, who is married with two young children, has worked for the company in a variety of customer-facing roles since early 2007. He said: ‘I am thrilled to be given the opportunity to lead the team.’
New general manager ‘thrilled’ at new role
GLOUCESTER: Pendragon has opened a new Car Store in Gloucester. Following the launches of 10 other Car Store sites around the UK, and with many more to follow, the new site follows the closure recently of the company’s car supermarket in Cheltenham, with the majority of team members transferring to the new facility at Barnwood Point. Rob Miller, regional director for Evans Halshaw Car Store, told the Gloucestershire Live website: ‘This latest addition to the Car Store network is exciting for us.’
‘Exciting’ addition to CarStore network
SOLIHULL: Jaguar Land Rover managers are thought to be under investigation after they allegedly shared a nude image of a female colleague on a WhatsApp group chat. The Birmingham Mail reported that two male managers at the manufacturer’s Solihull plant were suspended while an internal investigation took place. A third is under investigation, while an additional two men are thought to have been cleared of any wrongdoing. The disciplinary investigation was launched following a complaint from a worker who was allegedly shown a mobile phone image of a naked co-worker.
Probe over ‘naked image’ at JLR plant
Nissan puts self-driving Leafs to the test
DORSET: Horizon Honda has celebrated the opening of its refurbished showroom in Christchurch. The privately owned Dorset dealership, which has represented Honda in Poole, Bournemouth and Christchurch for more than 40 years, has transformed its Christchurch showroom into a state-of-the-art retail store, and a special VIP event was held to mark the new look. The growing company says it invested significantly in the new outlet. Work on the Stony Lane premises started in mid-November. The showroom has been remodelled to display all vehicles in the range, and there are another 20 used car display spaces.
Showroom can now display whole range
EAST LONDON: Self-driving cars have been tested by a major manufacturer on UK public roads for the first time. Nissan tested prototypes of its Leaf model with enhanced autonomous driver technology on busy routes in east London. The Japanese company clocked up more than 300 miles as it develops fully autonomous vehicles with the aim of making them widely available by 2020. Three Leaf cars were taken on 25-minute round trips from the ExCeL exhibition centre to Beckton. This involved a number of challenges, including roundabouts, lane changes, pedestrian crossings and speeds of up to 50mph.
CDX17.
Register for your free tickets at CarDealerExpo.co.uk
Great advice will give your dealership a shot in the arm At CDX17 we’ll be bringing you a host of workshop forums, to broaden the capacity of your dealership across four key areas. Throughout the day you will be able to visit the RAC Customer Care forum, iVendi Finance forum, GForces Technology forum and GardX Profit Clinic. Each of these will accommodate a series of speakers, carefully chosen for their expertise within these areas. Those attending CDX17 will have access to all of these sessions, completely free of charge, along with a range of speakers, panels and the biggest expo area yet! We can now reveal some of the key speakers who will be leading seminars on the day and imparting their specialist knowledge.
CDX17 HIGHLIGHTS
RAC Customer Care forum
iVendi Finance forum
GForces Technology forum
GardX Profit Clinic 16 | CarDealerMag.co.uk
UNMISSABLE INSIGHTS
Being chosen: A powerful reputation is crucial, says former John Lewis and Virgin Atlantic customer service expert
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ow do you engage your customers? How are your staff relevant to that? And how can the customer-centric ethos of major businesses such as John Lewis and Virgin Atlantic help your dealership, whatever its size? That’s exactly what you’ll learn from topflight consultant Andrew McMillan, who’s on board with us for a customer service workshop at CDX17. McMillan spent 28 years with John Lewis, the last eight of which saw him responsible for customer experience across the department store division, where he developed the company’s market-leading culture and attitude towards customer service and sales. While he was at John Lewis, it won awards from Which?, Verdict and Retail Week for its customer service. He subsequently formed his own company, advising organisations on customer service strategy, specialising in employee engagement and customer experience, and becoming recognised as an expert in the field. He has worked with a number of high-
Andrew McMillan
profile private-sector clients, including Virgin Atlantic. In demand internationally for his skills and expertise, McMillan is coming to CDX17 at Silverstone on Tuesday, May 23 where, as part of the RAC Customer Care forum, he’ll be
Silverstone, Tuesday, May 23, 2017 CDX17 to bring true innovation to dealers with the Discovery Zone
giving top tips to dealers about ensuring positive customer activity. His presentation – entitled ‘Being Chosen’ – will be full of powerful insights on creating a distinct customer experience, leading teams and engaging employees, and will answer highly relevant questions such as why would customers choose your business over others, and what attitudes and behaviours should your business be adopting to ensure potential customers always choose you? McMillan told us: ‘In essence, we’re talking about a philosophy and a belief in engaging people in a way that you want your customers engaged, and that will work in any organisation. It’s a general principle that I’m talking about and not something that can just be done in John Lewis or Virgin Atlantic.’ He added: ‘Creating a powerful reputation so that you are proactively chosen by your customers is critical for long-term success.’ McMillan’s broad experience, which includes advising the automotive sector, will ensure that dealers find his workshop a compelling and must-attend part of CDX. ‘I’m very much looking forward to being there,’ he said. ‘I love the scale of CDX. It’s phenomenal!’
‘I’m very much looking forward to being at CDX. I love the scale of the event. It’s phenomenal!’ Andrew McMillan
THIS year, you’ll find a unique offering at CDX17 called the Discovery Zone, uniting the best new brands and products in one place. Featuring more than 20 exhibitors, this area of CDX is unrivalled in the industry, offering delegates the opportunity to discover brand new products in the market before they’re seen anywhere else. The Discovery Zone will house hand-picked businesses that you won’t have seen before with innovative products or technology, either fresh to market or in the early stages of adoption. At Car Dealer, we believe it’s vitally important to keep our readers up-to-date with the latest innovations in the industry. In this way, we aim to help dealers continue to improve their businesses, deliver great customer service and improve profit. For suppliers, the Discovery Zone provides a great way for them to showcase their latest ideas, giving you the opportunity to transform your dealership and keep one step ahead of the competition. Delegates will be greeted by a host of pioneering businesses, which offer advanced solutions for issues that are sometimes tricky to resolve. Already, these include web technology specialists and those
offering big data analytics, while businesses offering 360-degree imagery and connected car technology will also be available to talk to. Managing director of Blackball Media, publishers of Car Dealer and organisers of CDX, Andy Entwistle explained: ‘We know what it’s like to be faced with all of these businesses at CDX. With so many exhibitors in one place, all vying for your attention, it’s easy to be drawn to the brands you recognise. ‘By introducing the Discovery Zone, we’re giving delegates access to the newest and most innovative brands that are working on products you likely won’t have tried yet. ‘This is just one more reason why every dealer needs to make sure they attend CDX.’
By introducing the Discovery Zone, we’re giving delegates access to the newest and most innovative brands Andy Entwistle
LIVE STAGE
How will Brexit affect the motor trade? Your questions answered! MIKE Hawes has found himself centre stage into question, changes to vehicle emissions since the seismic Brexit vote last year. duty are introduced and the expected All things automotive have been at the downturn in sales of new cars plays out. top of the agenda since UK voters decided Earlier in the year, Hawes spoke exclusively to leave the EU, and, as the head of the to Car Dealer about new car sales falling SMMT, Hawes has frequently been in 2017, but said that a scrappage approached for his insight and scheme would not be necessary. expertise in recent weeks. He told us: ‘If the market were This year at CDX he will to fall dramatically, there could be addressing the Live Stage be an argument for it, but we audience on topics of vital are not predicting Armageddon. importance to our sector and I think sales would have to drop outlining the changes we can 20-25 per cent below their current expect to encounter as we move ever record levels for it [a scrappage Mike Hawes closer to the negotiations that will scheme] to be justifiable.’ see us go it alone. Hawes will be available to take Our discussions on May 23 at Silverstone your questions on the day, but to get in ahead will offer a key insight into the future of of the pack, you can contact the CDX team on automotive businesses in the UK. 023 9252 2434. It’s clear that 2017 will be a major turning One thing’s for sure, Mike Hawes is always point, as diesel emissions continue to be called worth listening to. Don’t miss him at CDX. CarDealerMag.co.uk | 17
DASHBOARD. REMARKETING
HR Owen and BCA in new deal HR OWEN has agreed a deal with BCA that will see high-end luxury vehicles sold at Blackbushe as part of a regular ‘Top Car’ event. HR Owen is one of the world’s largest retailers in Rolls-Royce, Bentley, Ferrari, Lamborghini and Bugatti brands. The company is headquartered in London and operates 14 sales and 17 aftersales sites. The vehicles will be sold on alternate Wednesdays at Blackbushe. Around 20 high-value vehicles will be on offer in each sale, with all cars fully pre-sale prepared to retail standard. BCA is supporting the sales with a marketing plan that includes branded e-marketing and online awareness through its website, Auction View bulletins and the company’s Showroom feature.
Toyota reveals £240m plan to boost UK car production But company emphasises need for easy access to European markets
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oyota is to invest £240m in its plant in Derbyshire – but the car giant’s boss has called for continued tariffand barrier-free access between the UK and continental Europe. The Japanese firm said the investment at its plant in Burnaston will see the centre upgraded with new equipment and technology. Johan van Zyl, president and chief executive of Toyota Motor Europe, said the cash injection was a sign of confidence in its employees and suppliers, but he warned: ‘Continued tariff- and barrier-free market access
between the UK and Europe that is predictable and uncomplicated will be vital for future success.’ His comments come as the government faces intense pressure to secure tariff-free access to the EU’s single market for car manufacturers following Brexit. The Toyota spending plan will improve competitiveness and enhance the car maker’s ‘supply chain efficiencies’, as well as enable the production of vehicles on the Toyota New Global Architecture (TNGA) platform, the group said.
Van Zyl added: ‘We are very focused on securing the global competitiveness of our European plants. The roll-out of TNGA manufacturing capability is part of this plan. Our investment demonstrates that we are doing all we can to raise the competitiveness of our Burnaston plant in Derbyshire.’ The money will be backed by up to £21.3m of government investment, subject to independent assessment, to support skills and training, research and development and innovation. Business and energy secretary Greg Clark said: ‘Toyota is one of the world’s largest car producers and this inward investment underlines the company’s faith in its employees and will help ensure the plant is well positioned for future Toyota models to be made in the UK.’
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Email automotive@traka.com or call 0845 225 2910 traka-automotive.com 18 | CarDealerMag.co.uk
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ANDY ENSTONE RAC Approved Dealer, Hertfordshire CarDealerMag.co.uk | 19
SURVEY.
Have you voted yet? Rate manufacturers and suppliers you use Awards give you the perfect opportunity to shine a light on the best (and the worst) operators in the automotive world
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ur Car Dealer Power survey has grown over the years to become a hugely important fixture on the automotive industry’s calendar. The annual survey lets dealers give their forthright opinions about the suppliers and manufacturers they work with, and because we don’t ask for any identification of the people making the nominations, there can be absolutely no fear of reprisals. And your opinions really do count, because we make sure that they reach the people who really need to see them. All you have to do is give marks out of 10 and honest views in our straightforward, no-nonsense Q&A survey, now online at CarDealerPower.com. So, we want you to tell us which manufacturers and suppliers are the absolute best and how good they are at helping you. For example, what parts do you use, who do you go to for advice, and who makes sure you get the most out of the internet? We also want to know, though, which are the ones that are not so hot! Your votes and views will be carefully collated to provide the eventual list of winners, as well as compile a warts-and-all picture of those companies that just aren’t coming up to scratch. The findings will be shared, so it’s entirely feasible that manufacturers and suppliers will change how they operate because of YOU!
Last year, Car Dealer Power winners included Plan Insurance (Trade Insurance Provider of the Year); First Response Finance (Sub-prime Finance Provider of the Year) and Manheim (Auction House of the Year). If you’re a supplier to the motor trade, you can get your customers to nominate you, which means that, with enough support from them, you could be taking home one of our prestigious gongs on our awards night.
CAN I BE COMPLETELY HONEST? Make no mistake – we really want you to shoot straight from the hip and we’re giving you the full protection of anonymity as you do so. We’ll be letting the suppliers and agencies know what we found but we will not – repeat, NOT – tell them who told us. You have our absolute word on that. The magazine team will only be looking at the answers – we can’t emphasise that enough. Once everything has been decided, we’ll be holding our glamorous, glitzy awards night at the fabulous venue that is the Spinnaker Tower in Portsmouth, Hampshire, and it’ll be taking place on Thursday, July 6, 2017. So don’t delay, nominate today! Head over to CarDealerPower.com and fill in the questionnaire. We look forward to receiving your responses!
The closing date for nominations is June 1, 2017. That might seem like a long way off but it’ll be here before you know it, so make sure you take part soon!
GO ONLINE TO CARDEALERPOWER .COM With its majestic views, the Spinnaker Tower in Portsmouth will be the venue for the awards ceremony on July 6
There’s always a party mood at the Car Dealer Power Awards! Guests last year had a great time
TAKE PART ONLINE TODAY! GO TO CARDEALERPOWER.COM 20 | CarDealerMag.co.uk
SMMT steps in to defend diesel in air quality debate. bit.ly/diesel-109
‘Expansive and resilient’ Lookers sees profit levels hit new heights for 2016 Revenue breaks £4bn barrier and underlying profit is up to £77.1m by DAVE BROWN @CarDealerDave
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ookers enjoyed its eighth successive year of turnover and profit growth in 2016. The company, which has more than 160 franchise dealerships representing 31 manufacturers, saw revenue top £4bn and reported profit before tax hit £91.8 million for 2016 – up 46 per cent on the previous year. The figure was enhanced by an exponential profit of £28m from the sale of its parts division in November. Adjusted profit before tax increased seven per cent to £77.1m (2015: £72.1m) and adjusted operating profit increased 10 per cent to £94.7m (2015: £85.9m). Earnings per share were up 59.2 per cent at 20.51p (2015: 12.88p) with adjusted earnings per share up four per cent at 15.87p (2015: 15.24p). The company certainly had a busy time of it in 2016 and reported that after the acquisition of Knights BMW/Mini and Drayton MercedesBenz, the companies had been successfully integrated. Andy Bruce, Lookers chief executive, said: ‘Our profit is at record levels and has increased for the eighth consecutive year – evidence of both an expansive and a resilient business model.’
NIGEL McMINN ON FIRM’S SUCCESS
‘We should try to be optimistic and upbeat’ THE chief operating officer of Manchester-based Lookers has hailed 2016 as a ‘transformational’ year. And Nigel McMinn said it was important to remain ‘upbeat and optimistic’ for the future – even with the issues and challenges ahead. As we report on the left, Lookers reported profit before tax of £91.8m for 2016 – up 46 per cent on the year before. Chief executive Andy Bruce described the results as ‘excellent’, and COO McMinn said two particular highlights of the results were the fact that the company had broken through the £4bn revenue barrier and that underlying profit had risen, from £72.1m to £77.1m. Speaking to Car Dealer, McMinn said: ‘People always talk about a very challenging market and tend to focus on the difficulties – and there’s no doubt some of those are there – but we’re pleased that our underlying profit grew again. ‘We have achieved quite a lot in the last 12 months, with wellcontrolled working capital, good cash generation, an increased dividend and a big reorganisation to make the company more orientated around premium brands.’ He said it had been a ‘transformational’ year with the sale of the company’s parts division in November and the replacement
of that income stream with the acquisition of Knights BMW/ Mini and Drayton Mercedes-Benz, adding: ‘We had been coveting that BMW franchise for a long time.’ Asked if Lookers was seeking to take on other brands, McMinn replied: ‘Not particularly, no, it’s all about consolidation with our key partners now. We’ve got the key partnerships that we would like – it’s a question of steady growth with them if the right opportunity presents itself.’ One of the 31 manufacturers that Lookers works with is Vauxhall, which is being sold off by General Motors to the PSA Group. Lookers has 10 Vauxhall dealerships in England and four in Northern Ireland, but McMinn doesn’t predict any drastic changes once
Nigel McMinn: ‘We achieved quite a lot during 2016’
the new owners have fully taken control. However, asked what he thought would happen, he said: ‘It’s impossible for any of us to know. We’re seeing the same public statements as everybody else. ‘These things have a habit of moving very slowly and PSA have committed to not making any changes before 2020, and even then the changes are likely to be quite modest. Vauxhall represents about 10 per cent of our turnover and about five per cent of our profits. It’s not that material in the scale of things.’ Turning to the market in general, he said: ‘We think the market will perform a bit more strongly than the SMMT is predicting. ‘It’s noticeable that in private and fleet the premium brands continue to drive share. ‘Part of that is that they have very strong offerings in SUV.’ One of the reasons why Lookers can look to the future with confidence is that a lot of exciting new models are on the way from various manufacturers. ‘On the back of strong markets, all of the manufacturers poured a lot of money into product development,’ McMinn told us. ‘We’re expecting a strong year partly on the back of a lot of new product coming out. It’s a good market, it’s an exciting market to be in. We shouldn’t be downbeat about it, we should try to remain optimistic and upbeat.’
Marshall’s impressive performance ‘significantly ahead of the marketplace’ MARSHALL Motor Holdings plc saw revenues increase by 54.1 per cent to £1.9bn during 2016, the company reported in its annual results. Growth in aftersales revenue was the strongest, up 58.4 per cent, while new car sales remained healthy, with revenue up 54.2 per cent compared with 2015. Used cars were also well ahead, with revenue growth of 56.4 per cent. Underlying profit before tax was up by 60.4 per cent to £25.4m, compared with £15.4m in 2015, in the company’s figures for the 12 months to
December 31. Speaking to Car Dealer Magazine, CEO Daksh Gupta explained that Marshall had seen its sales continue to grow despite the market reporting a downturn towards the end of the year. ‘It’s the complete opposite to what the market did,’ he told us. ‘The market in the first half was up 3.2 per cent, in the second half post-Brexit it fell by 1.2 per cent, so our performance was significantly ahead of the marketplace. ‘We’ve got some real momentum in the business, and a lot of the investments we have
made around training, operational improvements around technology and sales executive recruitment are having a really positive effect on the business in terms of reducing staff turnover.’ Gupta explained that the group enjoyed strong organic growth throughout 2016 but also a full year of trading since the acquisition of SG Smith and seven months of ownership of the Ridgeway Group. It has now finished constructing three new flagship Jaguar Land Rover dealerships, too. More online at: bit.ly/Marshall-109 CarDealerMag.co.uk | 21
DASHBOARD.
Up to 75,000 UK Mercedes cars face recall over fire risk Manufacturer received reports of ‘thermally damaged’ current limiters
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ercedes-Benz is to recall a million cars and SUVs worldwide – including up to 75,000 in the UK – because a starter part can overheat and cause fires. The recall includes certain C-Class, E-Class and CLA cars and GLA and GLC SUVs, all from 2015 through to 2017. The German carmaker reported 51 fires worldwide, with about 30 in the United States. The company has no reports of any injuries. Mercedes said in recently released US government documents that if for some reason the engine and transmission will not turn over, a current limiter in the starter motor can overheat from repeated attempts to start the vehicles. That can cause the current limiter to overheat and melt nearby parts.
Mercedes began investigating the problem last June after getting field reports of ‘thermally damaged’ current limiters. Owners will be notified when replacement parts are available in July. It will take about an hour for dealers to install another fuse to prevent the problem. The repair will be carried out free of charge. Outlining the position in the UK, Mercedes-Benz told Car Dealer: ‘There are potentially 75,000 cars in the UK which will be affected by
the recall. This is a recall which is yet to be issued.’ The manufacturer ‘couldn’t comment’ on whether any UK owners had actually been affected by the issue. And in a statement, the company added: ‘Daimler AG [Mercedes’ parent company] has discovered that on certain A-/B-/C-/E-Class as well as CLA, GLA and GLC vehicles, the starting current limiter could overload under unique conditions during the starting procedure. ‘In situations where the vehicle’s engine is damaged and cannot crank (eg. when the engine has hydro locked), and the customer repeatedly attempts to start the vehicle, a very high electric current can flow through the starting current limiter causing it to overheat.’
PENALTIES
Tougher laws on mobile phones PENALTIES and fines for drivers who use their mobile phones behind the wheel have been doubled to six points and £200. The measures are being introduced following a series of high-profile cases and research suggesting the practice is widespread. New drivers can have their licences revoked if they get six penalty points in their first two years on the road – so sending a single text message could now mean they’re banned from the wheel. More experienced motorists can lose their licence if they receive 12 points in a three-year period. Twenty-two people were killed and 99 seriously injured in accidents on Britain’s roads in 2015 where a motorist using a mobile was a contributory factor, latest figures show.
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22 | CarDealerMag.co.uk
Buyers could get a BMW M3 for the price of 720S carbon options McLaren’s recently launched online configurator lets customers specify their own cars by JAMES BAGGOTT @CarDealerEd
we’ll then let them drive the car in the summer and if they like it – and why wouldn’t they? – we’ll ask for a further £20,000 deposit.’ Buyers who opt for the £218,020 McLaren 720S Performance base model and then tick everything on the options list will be asked to cough up a whopping £316,070 – that’s a staggering £98,050 on options, or the equivalent of a new Porsche 911 GTS. The most popular choices on the 720S order
“ Kay looks after calls when our team is busy. The result? More sales, outstanding service levels.” Moneypenny client since 2015
Moneypenny will support your existing team by looking after overflow calls, or by providing a fully outsourced switchboard facility.
sheet, said the dealer, so far included the £2,070 Vehicle Lift, which stops the nose grounding out on bumps, the £2,220 Gorilla Glass roof, a 360-degree camera system for £2,480 and electric seats at £2,730. Carbon-fibre extras for the truly decadent buyers include door mirrors (£2,220), front splitter (£5,990), rear bumper (£4,480) and diffuser (£5,990). More conventional extras don’t come cheap either, with a fire extinguisher costing £150, branded mats at £330 and a fitted luggage set for £810. And if you want a strap to secure said luggage, that’ll cost you another £510. The cheapest option on the list is an ashtray for £50, while the most expensive, carbon-fibre door mirrors, costs £5,990 – just £5 less than a new Dacia Sandero! The McLaren 720S will be launched in the summer. 720S a significant step forward, p50
Kay, Moneypenny Receptionist.
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uyers of the new McLaren 720S could have a BMW M3 plus change to insure it for the price of the carbon-fibre extras on the new British supercar. While the iconic M3 will set you back a ‘mere’ £57,355, buyers who tick all of the lightweight options on the 720S order sheet will add £58,900 to the car’s £208,600 base price. The British supercar manufacturer recently unveiled the online configurator for the 720S and potential buyers were immediately able to specify their own unique supercar. The global system currently doesn’t have any prices online, but we managed to secure a price list from a McLaren dealer. ‘If you place an order for a 720S today you’ll be expecting delivery in March 2018,’ explained the dealer. ‘We expect clients to put down £5,000 when they sign,
moneypenny.co.uk 0333 202 1005
OUTSOURCED SWITCHBOARD
DIGITAL SWITCHBOARD
SPECIALIST TEAMS
CarDealerMag.co.uk | 23
DASHBOARD. INCHCAPE
Healthy revenue growth reported
INCHCAPE plc has reported 14.7 per cent revenue growth, up by £1 billion in 2016. In its annual results announcement, the dealer group revealed that revenue is now up to £7.8bn from £6.8bn in 2015. Operating profit for the group was up by 0.8 per cent to £277.5m. Overall, Inchcape reported a resilient profit performance in the UK which it said was achieved despite higher overheads caused by investments in dealerships and operational processes to strengthen the long-term positioning of the business. A lower new vehicle margin due to the competitive market environment also put pressure on the group, but it remains highly focused on outperforming its competitors. Group CEO of Inchcape plc Stefan Bomhard, above, commented: ‘I believe our 2016 results demonstrate the strength of our business model. ‘Looking forward, we are well-positioned to continue to leverage our global scale, drive growth and benefit from our positions across a unique spread of markets.’
SSANGYONG
Another three dealers recruited THREE more dealers have joined SsangYong’s UK network, bringing the total to 59. The trio of appointments are the Charters Group in Reading, Clarion Cars in Worthing, and the Marriott Motor Group in Kings Lynn. SsangYong is actively looking for dealers to represent the brand in several other locations, with current open points including Aberdeen, Blackpool, Bristol, Cambridge and Dundee. 24 | CarDealerMag.co.uk
Peer wants roads readied now for autonomous cars (but he doesn’t think self-driving technology will be ready for two decades)
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member of the House of Lords has called for Britain to begin readying its roads for autonomous vehicles now, despite predicting the technology will not be ready for at least 20 years. Tory peer the Earl of Selborne, who is chairman of the Lords science and technology select committee, made the comments following the release of a report by the committee entitled ‘Connected and Autonomous Vehicles: The future?’ The document goes so far as to suggest that motorists should take another test before using driverless vehicles. ‘It’s anyone’s guess when fully autonomous vehicles will be seen on our roads,’ said Lord Selborne. ‘In my own opinion, it’s at least 20 years away. But that doesn’t mean we shouldn’t be bearing that in mind when we design our roads now, because the roads are still going to be
by LAURA THOMSON @lauramayrafiki in place in 20 years’ time, so we need to understand and anticipate what the requirements will be then.’ However, he emphasised the important role the government will need to play in updating the infrastructure, which will see widespread 4G connectivity, sensors added to roads, and the creation of special lanes for convoys of autonomous cars. ‘We make a plea that the government gets together with the highway authorities and the local transport authorities to ensure that everyone is kept up to speed with this fast-moving technology,’ he said. ‘The last thing you want is for local authorities to spend money on traffic management systems which will be redundant within a short time.’
The Lords’ report outlines recommendations for the government to ensure that Britain remains a leader in the development of autonomous technologies. And it says motorists should have to take a separate driving test for autonomous vehicles, so they learn not to become too complacent behind the wheel. Professor Neville Stanton, from the University of Southampton, added his voice to the debate, saying: ‘As vehicles become fully autonomous, even the most observant human driver’s attention will begin to wane. “Their mind will wander, and they may start to mentally switch off from the job of driving.’ The Lords’ report will now be passed to the government, which is expected to produce a written response within two months. Peers will then debate it.
Going driverless: Ford seems to be winning most support IT COULD be several years before UK car buyers are browsing driverless cars for sale, but research released by Auto Trader reveals that Ford is currently winning hearts and minds with UK motorists interested in a driverless future. Auto Trader’s Market Report, released in March, unveiled desirability ratings across 15 car manufacturers and tech companies, covering most brands that have shared intentions to deliver fully-autonomous cars. Of the motorists surveyed, 49 per cent indicated they were not interested in a fully-autonomous car, but of those that were, Ford was ranked as the most desirable brand,
People would appear to have faith in Ford’s autonomous technology followed by Audi in second place with new car maker Tesla and MercedesBenz in joint third. Auto Trader editor-in-chief Jon Quirk said: ‘It’s undeniable that we are headed towards a fully-autonomous future. There is major progress being made by car makers and tech
companies, but consumers are also becoming more attuned to owning cars that are more fuel-efficient, technologically savvy and better connected, as the car evolves. ‘UK motorists picked Ford due to positive past experiences with the brand, which led them to think positively about its delivery of cars in the future, despite drastic changes to how they will be built and, more importantly, used by motorists.’ Existing car manufacturers are more desirable when it comes to a fullyautonomous future, with nine of the top 10 most appealing brands being recognised car makers rather than tech firms such as Apple.
CarDealerMag.co.uk | 25
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5, 4, 3, 2, 1... I’ve just bought a Thunderbird (instead of pyjamas!)
O
ne Monday recently, I went on eBay looking for pyjamas. I’ve probably told you before, but when it comes to shopping, if I can’t get something online, I probably won’t buy it at all. Particularly if I could buy it through the aforementioned popular online auction site or Amazon. Over the weekend, I had been chatting to my partner about the old days and how we had been obsessed with buying things as cheaply as possible on eBay. We were sometimes willing to wait a whole week for an auction to end, at the risk of missing out on something at the last minute – not that we usually did. I think that was why I had returned to my old friend to see what there was to buy. How I got from pyjamas to cars, I’m not quite sure, but it happened. The world of American classics was where I ended up this time. Ford Thunderbirds are cars that I’ve always loved and I tend to check the listings every now and then, just to torture myself with how unattainable they are. So imagine my surprise when an example from 1966 appeared before my eyes for a little over £2,000. It had been freshly imported from America, was not yet registered, and was residing in Abergele, Wales. It wasn’t my first choice in terms of colour, generation and bodystyle, nor was it in particularly good shape. From the photos, it was clear that it would need a respray at some point, as there were large areas of grey primer where blue paint should have been. Some minor bits of trim were missing too, but at least the amount of rust seemed to be minimal. Inside, the carpets were torn but the rest of the leather upholstery and dash seemed to be up-together – despite the shoddy camera work that appeared as part of the listing. Mind you, the words were equally vague. They read: ‘Just imported from America. Some rust but generally solid. Put a battery on it and it runs. Moved it backwards and forwards. Viewings available, call me.’ Long story short, I ended up throwing a bid into the mix, imagining that I was going to be desperately disappointed, but I ended up with a new car! There was a short period of excitement before I reached the pass-me-a-bottle-of-wine stage as I realised I wasn’t quite sure how I would be able to afford it. I ‘womaned up’ though, as there was no chance I was going to be one of those people who backs out of winning an eBay auction. This only led to more problems.
Rebecca
I contacted the seller and my new pal ‘Dave’ (at least he claimed to be called Dave despite sending me bank details for someone called William). Dave wanted me to pay all of the money into his bank account, plus the delivery fee. I’d never had a car delivered before, but I didn’t have any other way to transport the purchase from his neck of the woods to mine. I also wasn’t keen on paying all of that money into his bank account but did so anyway. Dave had been kind enough to tell me that if I was uncomfortable paying all the loot direct to him, he would do it through PayPal – but I soon found out that PayPal wouldn’t protect me in any case when buying a car. I looked up William and his wife (both of whose names were on the bank account) and they did in fact live in Abergele. They were real people and as it turned out, William’s middle name was Dave. We’d been chatting a lot by text about how the car would
Chaplin ‘If I can’t get something THE VIEW FROM BEHIND THE SCENES
online, I probably won’t buy it at all.’
arrive but once I’d sent him the money it was radio silence. Yes, for two days, nothing. I had sent thousands of pounds to a man I’d never met, for a car I’d never seen, and all I could do was sit and wait for it to arrive. I barely slept on Thursday night, working out how I would distract myself until the car hopefully arrived, but it was on Friday morning at 7am that a man with a thick Scouse accent called me to say he was lost near Gosport with my car. I jumped out of bed and set off to find him somewhere near the town centre. I’d been led to believe that this delivery driver would have a transporter full of cars, but as I drove across Gosport that was not what I found. Travelling the other way at 15mph was a burgundy Discovery pulling a trailer with my car exposed in the rain. It looked ridiculous, but I was ecstatic. I then turned around to guide him to Car Dealer Towers, in what must have looked like a very bizarre procession. I can now officially say, however, with some pride, that I’ve bought a car online and had it delivered to my door. The system does work but it’s terrifying and stressful.
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 | 27
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Top locations for used car bargains
Just 17: March plate change day arrives Dagenham dealership one of many to stage midnight handovers
THE best deals for consumers in the used car market are in Merseyside, a study has found. Liverpool has the lowest prices at 2.3 per cent below the national average, according to analysis of more than 200,000 UK listings by car classified ad website CarGurus. The research shows that cities located in close proximity to other major conurbations, such as Manchester, Nottingham, Sheffield and Birmingham, generally have lower prices than more isolated places, including Plymouth, Norwich and Bristol. Plymouth was ranked as the most expensive city for used cars in the UK, with sellers typically asking five per cent above the national average. The market price of a 2013 Volkswagen Golf is £11,777 in Plymouth, compared with just £10,755 in Liverpool. CarGurus spokeswoman Sarah Welch said: ‘Prices for comparable used cars do vary quite a bit across the nation. ‘Although not all consumers will be willing to travel afar for a deal, this research shows that motorists can sometimes benefit from expanding their search radius.’
by DAVE BROWN @CarDealerDave
T
rustFord welcomed more than 200 drivers to dealerships across the UK as part of a midnight handover event, allowing customers to be the very first to get their hands on the new 17-plate vehicles. Staff were on site to greet customers and hand over the keys to their new Ford vehicles as the clock struck midnight at the start of March 1. The excited customers were amongst the first in the county to own a vehicle with the brand new 17 plate. Similar handovers took place at Ford Stores across the country including TrustFord’s Dagenham, Epsom and Edgware dealerships. Mark Scammell, general manager at TrustFord Dagenham, who welcomed 56 customers to his dealership on the night of February 28/March 1, said: ‘The plate change every March is always a hugely exciting time for both the automotive industry and new customers looking to pick up cars with the brand new licence plate. ‘We were delighted to welcome so many customers and colleagues.’ TrustFord is the world’s largest dedicated Ford dealer group. Lots more plate-change coverage online at bit.ly/platechange-109
When you’re an MOT tester short, trust us to provide temporary cover. Fast.
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Just one of the many happy TrustFord customers who picked up their cars early on March 1, and, left, a vehicle is prepped for collection
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Ask Auto Trader
Have a question, or a suggestion for next month’s topic? I’d love to hear from you: marc.thornborough@ autotrader.co.uk
The future of car ownership At the beginning of March we launched our latest Market Report, a biannual review of the UK’s new and used car market, consumer buying and selling behaviours and data and observations taken from activity on Auto Trader. In this latest edition we wanted to better understand what impact new and emerging technologies and mobility solutions are going to have on not only consumers, but also our industry as a whole. Fundamentally, with all of these potentially disruptive elements, we wanted to know whether consumers are going to want to continue owning a car in the future. Ownership of course is a subjective concept – like with our homes, we don’t need to have bought it outright to feel that we actually own it, but we do want to have exclusive access to it. Whilst it is a loose idea, as the market accelerates and the purchase cycle becomes shorter (on average four years) as a result of more accessible and personalised financing options, the concept of ownership is becoming even more ambiguous. Low rate finance and new car desirability are often described as the key drivers to recent market growth, but we have found that the overpowering desire to own cars is a big factor in the growth we are seeing, providing a different angle to the much publicised forecast decline in car ownership driven by new disruptive models. The car has been a loyal servant to consumers for almost a century, but despite the improvements in public transport and the continued rise of the commuting class, owning a car is still crucially important to UK consumers. Levels of car ownership are currently high in the UK, with 85% of driving licence holders claiming to own at least one car. But will consumers always want to own a car? That’s all very well, but with all the new developments will consumers actually want a car in the future? Well it appears yes, they will: a very significant 81% of the thousands of motorists we spoke to, told us they intend to continue owning cars in the future. In fact, just 5% said they intended to stop owning a car in the future. This is very positive news for the automotive industry as it instils a healthy confidence in the future of car
buying. Interestingly, our Report revealed that physical ownership, and importantly, exclusive access to a car, is important to us for a variety reasons, and it seems the largest drivers may not be an economic calculation but the independence it offers, and our sheer love of driving.
Won’t new mobility initiatives change that? Over the years, there have been lots of new and disruptive models emerge that challenge consumers’ conventional attitudes to car ownership. But actually none of these models have ever come close to substituting car ownership or achieving wide-spread adoption by consumers. Quite simply because the very nature of these models conflict with the most important factors for consumers when considering car ownership.
What role will autonomous cars play?
Ah but what about autonomous cars, I hear you say. After all you can’t open a paper these days without seeing some exciting news about autonomous vehicles; how will they impact the market? Well the findings suggest the impact might not be as dramatic as some might think. In our research, nearly half (49%) of consumers said they would not be interested in a fullyautonomous vehicle. Personally I’m passionate about cars. So much so I often go for a drive just for the love of it. I personally don’t want to become a passenger; for me the journey you decide to take is just as important as your destination. Some people see a car as a tool that does a job. Clearly like millions of other people, I see my car as a
passport to go wherever I want, when I want. So for me personally, semi-autonomous – perhaps, fully autonomous – no thanks. We can learn a lot from the challenges that electric and hybrid vehicle makers face in raising levels of confidence with consumers, as well as desirability. Examining the challenges for consumer awareness, confidence and even desirability, we can envisage that fullyautonomous vehicles are likely to see a progressive adoption similar to that of electric vehicles, where adoption rates increase in line with infrastructure development and general confidence and desirability levels with car buyers.
What does this mean for me and the dealer community?
With consumers considering car ownership paramount to their future driving lives, it appears that car buying and ownership will likely continue for some time, even while the model of ‘ownership’ may evolve as we have seen with the rise of finance offerings that are increasingly moving the ownership of cars towards a monthly payment. Yet, with more paramount changes to the car buying process, and the cars consumers buy, the fundamentals of trust in retailers and manufacturers garnered through increasing levels of openness and transparency will continue to be crucially important factors in the future, just as they are today. What is more likely is that, with increasing choice and complexity, these factors are likely to move beyond being just a competitive advantage, but a crucial and central part to business in the automotive sector.
Find out more at: trade.autotrader.co.uk For the latest news, views and insight from the automotive retail community, follow @ATInsight on Twitter CarDealerMag.co.uk | 29
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From supercars to shockers, we have got it all covered for you
Honda Civic Type R
The new generation Honda Civic has been given the Type R treatment and this time development was carried out at the same time, so we’ve got our fingers crossed for an even more impressive model than the previous generation. This time with 315bhp, peak torque of 400Nm and an array of fins and air vents, it’s definitely worth getting excited about. See p42
by REBECCA CHAPLIN @believebecca
T
his year’s Geneva Motor Show offered up all of the treats you’d expect – some iconic cars, some dealership staples, some surprises and some absolute shockers. The ones that stole the show were, of course, the supercars. McLaren served up a real treat in the form of the 720S. It’s more powerful than the usual 3.6-litre engine, bored out to four litres, and has broken away from what has become the norm stylistically. It wasn’t alone, with Ferrari offering up the new 812 Superfast on their stand and Lamborghini releasing a special-edition Huracan called the Performante. There were also some everyday heroes at the show in the form of the new Volvo XC60, a facelifted Nissan Qashqai and the new Kia Picanto – not to mention the phenomenal Fiesta ST. There were some key themes – autonomous technology, changes to car ownership and what this means for car sales, plus the move to alternative fuels and electric power. Of course, diesel was still very much a talking point. Car Dealer Magazine was on the ground at the show reporting tirelessly especially for you. So, if a trip to Switzerland wasn’t on the cards this year, fear no more, we have everything you could need to know over the next 24 pages. Start off with our top 10 show cars and follow it up with more than 20 interviews with key manufacturer bosses, all covered in this section. Happy reading!
Nissan Qashqai
Nissan pulled the wraps off the new Qashqai in Geneva, which it hopes will reassert its dominance of the crossover market in the face of the competition. The key addition to the range is semi-autonomous driving technology. This makes the updated SUV one of the first mainstream cars to come with self-driving abilities – it will be able to steer, accelerate and brake in a single lane on highways. See p34
Stars of show The Geneva Motor Show is Lamborghini Huracan a hugely significant event Performante unveiled its track-focused in the automotive calendar Lamborghini Lamborghini Huracán Performante at the and the Car Dealer team Geneva Motor Show. Powered by a 5.2-litre V10, the Performante can reach 60mph in just 2.8 were there in full force seconds, accelerating to a top speed of 201mph. A redesigned exhaust system should mean it sounds just as dramatic as it looks. See p44
MAZDA Our stepping stone to the next generation of cars p41 30 | CarDealerMag.co.uk
MITSUBISHI Exciting possibilities in our tie-up with Nissan p49
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Aston Martin Valkyrie
The partnership between Aston Martin and Red Bull Racing has created a truly elegant beast in the form of Valkyrie. This dynamic car is a far cry from other classy but traditional Aston Martins, and although we know very little about what kit Valkyrie will get, we’re anticipating enough bells and whistles to keep James Bond happy. The name comes from Norse mythology, by the way.
McLaren 720S
The UK performance car manufacturer has been teasing us about its new Super Series model for ages, but we finally got to see it in the metal at the Geneva Motor Show. McLaren’s traditional 3.8-litre V8 engine has been bored out to 4.0 litres and undergone some serious upgrading to achieve 710bhp. A totally new design language was also introduced, with a bubble-like cabin and ‘eye sockets’ for the headlights. See p50
Alpine A110
Alpine has finally returned to motoring – with the A110. Founded in 1955, the manufacturer was bought by Renault in 1973, but production ended in 1995. Compact in design, the two-seater takes design cues from classic Alpine models. At just 1,080kg, it’s incredibly light, and the 44/56 weight distribution should mean that it handles just like a two-seater sports car should. See p46
Volvo XC60
Volvo has pulled the wraps off the new version of its massively successful XC60 SUV – calling it one of the safest cars ever. The SUV that it replaces has been a sales hit for the Swedish manufacturer and accounts for 30 per cent of Volvo’s global sales. Volvo reckons the new XC60 is ‘one of the safest cars ever made’. Steer assist is a new addition to the City Safety system. See p48
Ferrari Superfast
Electrification and hybridisation dominated the Geneva show, but one of the biggest crowdpleasers was the catchily-named Ferrari 812 Superfast. And it’s sure to live up to its name with a 6.5-litre V12 that makes 789bhp and 718Nm. It’s a timely release, as this year marks the 70th anniversary of the first Ferrari V12 road car.
Ford Fiesta ST
The Ford Fiesta ST was debuted to the public at the Geneva Motor Show, despite being officially unveiled at an exclusive viewing the night before. Headline figures show that power has increased by 17bhp over the previous ST to 197bhp, now on a par with the limited-run ST200 as standard. It takes 6.5 seconds to go from 0-60mph making it slightly faster than the outgoing model. See p32
Range Rover Velar
Range Rover was looking to fill a gap in its line-up and give its loyal customers a car to move up from Evoque into. The Velar is the fourth member of the Range Rover family and its exterior design is familiar from the rest of the range but inside is a revelation. The minimalist dashboard incorporates two high-definition touchscreens that have removed the need for all but a few switches. Definitely one to be excited about. See p36
ALFA ROMEO We’re planning hybrid models across the range p52
SUBARU Aiming for the space Land Rover have left behind p52 CarDealerMag.co.uk | 31
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Blue Oval plotting RS versions of its SUVs FORD: Customers want performance and that’s an opportunity ripe for exploration, says global director by JAMES BAGGOTT @CarDealerEd
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ord’s global director of performance has revealed the brand is seriously considering making hot RS versions of its SUVs. In the clearest hint yet that the Blue Oval is planning performance versions of its 4x4s, performance chief Dave Pericak said he feels there’s definitely ‘an opportunity’ to be explored. Asked if an RS badge could ever work on a Ford SUV, he said: ‘If you did what you needed to do to make it perform the way that an RS should, the answer would be sure. ‘I think customers love performance. I think the definition of what that means for an SUV might be different than what it means for a Focus or for a Fiesta. But I think that we’ve seen, even in the US and globally, that people like aggressivelooking cars, they like sporty, they want the power and pick-up and engine improvement, so I think the answer is yes. SUV customers would appreciate performance, for sure.’ Audi has ventured into the performance SUV market with its SQ5 and SQ7 models, while the likes of Porsche has offered hot versions of its Macan and Cayenne models for years. However, Pericak isn’t impressed with the current performance SUV offerings – hinting further that if Ford were to do an RS version it would be a true performance car. Most likely to get the RS treatment would be the Kuga, its underpinnings especially capable of a performance upgrade. The Edge and EcoSport models could follow suit. ‘If you look at the SUV market right now, there aren’t too many credible performance SUVs out there,’ he said. ‘There are people who have made partial attempts at it and there are different things that have happened, but there are no real credible ones. So, I think that’s an area of some opportunity, for sure.’ Pericak explained that extending the RS brand even further across the Ford range was not an impossibility and that even models such as the Fiesta could once again wear the fabled badge. 32 | CarDealerMag.co.uk
Could we ever see an RS version of the Edge? ‘What RS stands for could be applied to other products, for sure,’ he said. ‘I think that RS can be applied to many different products, it just has to meet certain criteria.’ When asked if the new Fiesta ST was as hot as it was going to get, Pericak explained that it was ‘as hot as it gets to date’, strongly suggesting a more powerful version is being considered. Many fast Ford fans would love to see an RS version that takes design cues from the firm’s Fiesta-based rally car. Andy Barratt, chairman and managing director of Ford of Britain, went as far as to suggest the firm was planning on mocking up a Fiesta, based on the rally car, for the road. ‘We’re experimenting with the idea of building a running show car that can be demonstrated on the road,’ he said.
Ford chief: Fiesta will FORD of Britain boss Andy Barratt has defended the looks of the new Fiesta and declared: It’s the car that’ll keep us on top. The Fiesta has been Britain’s best-selling car for eight years on the trot – selling more models than some car brands by itself – but now the refreshed model has a tough job on its hands to maintain the momentum. Ford has cut the price of the new model by £1,000 and introduced new, more affordable editions as it looks to keep its city car in first place in the sales charts. ‘For me, Fiesta’s really exciting,’ said Barratt, chairman and managing director of Ford of
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Ford director: New, exciting powertrains coming to hot cars
Ford GT’s hybrid tech could filter to other cars
‘If you look at the SUV market right now, there are not too many credible performance SUVs out there.’
keep us on top Britain. ‘It’s a really exciting time for Ford and for those people that love Fiestas, so the only way is up. ‘We’re launching Fiesta at a lower entry price than the outgoing one and it’s the most technologically advanced ever. I think it is different enough. When you put it side by side, you can see a lot of differences. ‘The interior’s all new, it’s got new
powertrains, new styling, new dynamics, it’s brilliant to drive and puts a real marker down for the competition. It sets a new benchmark.’
WHEN Ford installs a hybrid powertrain in an RS or ST model, it will only be done to boost performance – that’s the bold claim of the brand’s global performance director. Dave Pericak, the man in charge of the Blue Oval’s performance cars across the globe, said that the manufacturer was looking at a variety of technologies to enhance its hot models. ‘I think if we electrify performance vehicles, it will be to enhance the performance of those vehicles. You may get a fuel economy benefit as a result, but it won’t be geared towards that, it will be geared towards enhancing performance. Electrification can be used to do that,’ he said. Pericak said current technology was restricting Ford – but that may change in the future. ‘If you’re going to look at electrification, you want to push the boundaries of what you can do today,’ he said. ‘So, we know we can accelerate a car pretty darn fast with electrification, we can do a lot of things, but we can’t sustain it. The issue is that the technology isn’t ready yet to sustain high levels of performance. You can only get bursts.’ One thing is for sure, though – new and exciting powertrains are key to Ford’s performance future. ‘We’re going to be open to all powertrains and all different technologies, and that’s going to be part of how we continue to evolve performance products, get them better and, at the same time, improve fuel efficiency and CO2 emissions, so we’ll see where we go. We’ve got a lot in the works,’ he said. CarDealerMag.co.uk | 33
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The trouble with autonomy NISSAN: Varied regulations and environments make Europe a difficult market for self-driving vehicles, says management
by LAURA THOMSON @lauramayrafiki
Front end The Qashqai has been given a revised front end with the V-motion grille, bringing it in line with other cars in Nissan’s line-up.
N
orth America could see autonomous vehicles on its roads well before Europe, according to Nissan. Speaking shortly after the reveal of the new Qashqai at the Geneva Motor Show, the company’s European vice-president, Ponz Pandikuthira, said he was aiming to offer vehicles capable of autonomously navigating urban environments in just three years’ time. ‘Our target by 2020 is for level-three autonomy,’ he said. ‘This is where the vehicle can navigate intersections in an urban section. ‘That’s a global target, but it all depends on how the regulations progress. So if we get the required support from a government we could see these timelines get pulled ahead very quickly.’ However, Nissan Europe’s product communications manager, Steve McLennan, said the need for European cars to cater for different driving environments and rules made the introduction of an autonomous car more complicated. ‘Europe, in fact, is the most complicated place to introduce autonomous technology,’ he said. ‘Our job is to master well over 30 different individual markets, with different regulations, different road cambers and other variants. ‘So Europe is, in many ways, more difficult than North America or Japan.’ But while full autonomy is still a while off, Nissan is leading the charge for change. In the first quarter of 2018, the new Qashqai will be offered with the manufacturer’s ProPilot suite of autonomous technologies, including intelligent emergency braking with pedestrian recognition and rear cross-traffic alert. The preexisting aids of traffic sign recognition, blind spot warning and lane departure warning will feature as well. The Japanese company has also become the first to test a fully autonomous vehicle on Britain’s roads, and the governments of both Spain and Russia have approached Nissan with similar intentions. Qashback, p80 34 | CarDealerMag.co.uk
Looking to reassert its market dominance NISSAN hopes the new Qashqai will reassert its dominance of the crossover market in the face of the competition. The key addition to the range is semiautonomous driving technology. This makes the updated SUV one of the first mainstream cars to come with self-driving abilities – it will be able to steer, accelerate and brake in a single lane on highways. The system will be fully updateable, with improved capabilities such as changing lanes and navigating junctions to be added later. Qashqai started the crossover boom when it was launched in 2007 and has sold more than 2.3 million units globally over the past decade. However, other manufacturers have
since entered the playing field, with capable rivals such as the Seat Ateca, Volkswagen Tiguan and Kia Sportage trying to steal the Qashqai’s limelight. Nissan has modernised the crossover’s styling with a more angular appearance, while the interior gets a new-look infotainment system and steering wheel. A more premium option will also be offered in the form of a top-level trim called Tekna+. These cars will come with new alloy wheels, nappa leather upholstery and ‘3D quilting’ on centre panels. The car goes on sale from July 2017. Prices are yet to be confirmed but are expected to be a minor increase on the current starting cost of £18,795.
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Infiniti Q60 Black
Headlights New ‘boomerang headlights’ have been added to the Qashqai to give it a more striking look, while the carmaker says that new adaptive front lighting will improve night-time safety.
Top tech The updated NissanConnect infotainment system now features a new user interface, making it easier to use than ever before.
INFINITI: Brexit won’t have a major effect on us, says the luxury marque’s vice-president by JAMES FOSSDYKE @JFossdyke
I
Improved ride quality The suspension, damping and steering have all been improved on the new Qashqai to create a more refined experience on the road.
Autonomous capability The new Qashqai will feature ProPilot, via which the car can control the steering, acceleration and braking in a single lane on highways.
nfiniti doesn’t think Brexit will have a major effect on the Sunderland factory that it shares with sister brand Nissan. Speaking in Geneva, the luxury marque’s vicepresident for Europe, Africa and the Middle East, Raoul Picello, said he didn’t expect any significant changes after Brexit. ‘We are perfectly integrated in Sunderland, which is a key factory for Nissan,’ he said. ‘I don’t see any major issues with the future. We would not expect any major change and we’ve been assured about what’s going to happen in order to confirm our investments.’ The future of the plant had been in doubt after Britain voted in favour of leaving the European Union, but an apparently successful meeting between chairman Carlos Ghosn and prime minister Teresa May eased concerns. ‘We have always had a very good relationship with the British government,’ said Picello. ‘It’s been confirmed after Mr Ghosn’s visit to the prime minister last October, and we don’t expect any major change.’ Employing around 7,000 people, the Sunderland factory currently builds Infiniti’s Q30 and QX30, as well as producing the Nissan Qashqai, Leaf and X-Trail models. That gives the factory an important role in Infiniti’s success, because while the Qashqai is a pivotal car for Nissan, the Q30 and QX30 make up a huge proportion of Infiniti’s European sales. ‘Q30 and QX30 combined make 70 per cent of our market in Europe and actually that’s a key element of our success,’ said Picello, reiterating the importance of the models. ‘We need to grow our awareness in a territory dominated by premium brands, and Q30 and QX30 are consistent with what we want to project as our brand image.’ CarDealerMag.co.uk | 35
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SHOWSTOPPER IN DETAIL
Range Rover Velar Rebecca Chaplin finds out how this new luxury SUV compares against its siblings as it takes its place in an expanding family
All-new infotainment system The Velar has been given a completely rebuilt infotainment system, navigated using a touchscreen. 36 | CarDealerMag.co.uk
Stunning silhouette The latest member of the Range Rover family has been given a striking look with an updated outline, developed from the much-loved shape.
Enhanced performance and agility Thanks to the light and stiff aluminium body, Range Rover claims that it has improved both performance and agility in this new model.
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Safety first There is a full suite of advanced safety systems, including autonomous emergency braking with pedestrian detect, reverse traffic detection and driver condition monitoring.
Animal-free materials For those earth-conscious Range Rover drivers – who knew they existed? – there is now the option unique to the segment of a textile material as an alternative to leather.
Spacious interior The interior of the Velar has been carefully designed to maximise space for passengers and their luggage, with an impressive 632 litres of bootspace.
All-terrain capability The off-road capability of the Velar is impressive, with Intelligent Driveline Dynamics and optional active locking rear differential.
Powerful acceleration There are six powertrain options to choose from, but with the V6 diesel, customers will enjoy 700Nm of torque, creating effortless acceleration for such a large car. This is paired with 375bhp, meaning it can reach 60mph in 5.3 seconds.
RANGE ROVER: This ‘white space filler’ drew 12,000 expressions of interest within a few days RANGE Rover unveiled its next luxury SUV – Velar – at an exclusive event ahead of the motor show and it’s predicted to be a huge seller, with 12,000 inquiries in the first six days. The fourth member of the Range Rover family will be its second smallest, sitting between the Evoque and Sport models in the luxury carmaker’s line-up. The mid-sized SUV will be available with six powertrains, ranging from the 178bhp 2.0-litre Ingenium diesel to the potent 375bhp supercharged 3.0-litre V6 petrol. The British manufacturer describes the Velar, which will cost from £44,830, as ‘filling the white space’ that it sees between the two. This is certainly true pricewise – the Evoque costs from £30,600, while the Sport is priced from £59,700. Speaking with Car Dealer, the UK managing director of Jaguar Land Rover, Jeremy Hicks, said: ‘Now you’ve got Evoque, which starts at £30,000 and goes up to £50,000, and the Sport, which starts at £60,000 and goes up to £100,000 with SVR – there’s clearly a space between those. ‘And we could see Evoque being compared against bigger, more expensive cars, and it was clear there was a space in our line-up for something else, so it became almost a no-brainer.’ He added: ‘We’ve become very good at identifying white space in the market – in 2009 we sold under 200,000 cars, we’re at 600,000 now, so the business is growing and we have ambition to keep going. So we can’t comment on expanding the model range, but there is always space to grow.’ Hicks said: ‘After we released the teaser and the name, six days later 12,000 people had gone online and given us their details to say, “keep me informed”. Compare that to Evoque, and we had 3,000 names down in the same period.’ CarDealerMag.co.uk CarDealerMag.co.uk | 37 | 37
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Swift is a key piece of the jigsaw for Suzuki
50,000 UK sales a year? We’ll get there, thanks to new Swift SUZUKI: Third-generation car will go on sale from June, offering less weight, more power and better fuel efficiency
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uzuki unveiled its new Swift at the Geneva Motor Show – a smaller, lighter model than its predecessor, promising evolved engine technology and a better drive. As the model that made the Japanese manufacturer famous for its small cars, the new Swift is an important evolution, and one that Dale Wyatt, director of automobile at Suzuki, believes could see the company’s sales break the 50,000-a-year barrier in the UK. ‘We’ve had a strong period of sustained growth recently, going from 20,000 to 40,000 units,’ he said. ‘The Swift is the piece of the jigsaw that will put us on to 50,000 units and a two per cent market share. Suzuki’s always been good at small cars, and we’ve now got a much stronger small car range than we’ve ever had before.’ The brand has seen UK sales double in the past five years – finishing 2016 at 38,190 units (3,700 more than the previous year) and with a 1.42 per cent market share.
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by LAURA THOMSON @lauramayrafiki
Despite his optimism, Wyatt remains realistic on the delivery of his 50,000-a-year target, adding: ‘I don’t like to put a date on it, but I think we’ll get there by 2020.’ The third-generation Swift will go on sale in June this year, offering a 10 per cent weight reduction, 19 per cent power hike and eight per cent improvement on fuel efficiency over the outgoing model. It will be available with Suzuki’s 109bhp 1.0-litre Boosterjet turbo engine, and is the third
‘We’ve now got a much stronger small car range than we’ve ever had before.’
of the manufacturer’s models to receive Suzuki’s Smart Hybrid Vehicle system, which gives additional power under full throttle and also implements regenerative braking. Although this mild hybrid technology is being introduced across the model range, Wyatt believes that a fully hybrid Suzuki is still a while off. ‘We’re probably three to four years away from a full hybrid,’ he commented. ‘We’re concentrating at the moment on highefficiency petrol engines, lightweight platforms and mild hybrids. ‘There’s no need for our cars to have very high power outputs, as we’ve got the 1.0-litre turbos, and the car’s light weight alleviates the need for massive power. ‘So we’ve got less mass to move, lower emissions and better fuel consumption. ‘We’re not ignoring hybrids, because it’s very important to get our cars on as low emissions as possible, but we’re concentrating on the Boosterjet and mild hybrid technology at the moment.’
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New models looking good... but that’s just part of the story CITROEN: With all-new cars and services on the cards, French manufacturer is aiming to stay ahead of the curve
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itroen’s new cars at the Geneva Motor Show demonstrated a continuation of the brand’s already successful new look – with bold colours and ‘air bumps’ prominent in the designs. The most eye-catching new car was the C-Aircross concept – soon to become the new C3 Picasso – and CEO of Citroen Linda Jackson hinted that the next model to follow will be a C-segment SUV called the C5 Aircross. A spokesperson for the brand revealed that the C-Aircross Concept seen on the stand was close to being production-ready, although features such as the cameras on the doors and rear of the car would be replaced with standard mirrors. The new look and fresh model line-up represent the first steps in how Citroen is changing the way it works. Jackson told Car Dealer: ‘We know that we want to evolve when it comes to all of the services we add to mobility. ‘It’s something we’ve seen across the board as the face of car sales transforms and manufacturers attempt to offer a new form of car ownership – accepting that one size doesn’t
Online CarStore on its way to the UK? CITROEN could soon start selling cars online in the UK – it’s already something the PSA Group is trialling in France. Linda Jackson said: ‘We already have buying online in certain markets across Europe. It’s called Citroen CarStore although it doesn’t exist in the UK yet. At the moment we’re testing and it’s live on Peugeot.’
by REBECCA CHAPLIN @believebecca
fit all.’ Jackson went on to explain that Citroen is trialling several initiatives in what is a relatively unknown area of the market. ‘How do you cater for people who live in cities and who may not necessarily want to own a car all the time? We’ve got a couple of initiatives that we’ve launched in France which will come across to the UK, for example Citroen Rent & Smile where you rent a car from a dealership,’ she said. ‘Or Earn & Drive, where you park your car and go on holiday but in those two weeks when you are away, we take your car and rent it to somebody else. When you come back, you’ve earned money. That’s the way I believe things will evolve, in terms of firstly launching all of the
products that we know of and then exploring how we develop the services that go with them.’ The idea of car sharing or hiring a car from the brand is also being trialled elsewhere in Europe – but whether these initiatives could eventually turn into new ways for dealers to make money in the UK is, as yet, unknown.
The C-Aircross, which is soon to become the new C3 Picasso CarDealerMag.co.uk | 39
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Hydrogen hero ‘needs investment from government’ HYUNDAI: FE Fuel Cell concept is one of 14 cars focused on the environment that manufacturer vows to bring out
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yundai is back with a new hydrogen fuel-cell concept – and as CEO and president of Hyundai Motor UK Tony Whitehorn told Car Dealer, this model is close to what we’ll be seeing launched as a production model next year. The futuristic FE Fuel Cell concept took centre stage on the brand’s stand at the Geneva Motor Show. ‘FE’ stands for ‘Future Eco’ and it’s one of 14 environmentally focused cars that Hyundai has pledged to bring to market. Now on the fourth generation of its fuel-cell technology – a progression from the existing ix35’s powertrain – Hyundai is well on its way to establishing itself as the leading manufacturer when it comes to hydrogen-powered cars. It’s just one of the benefits of being first to market, as Whitehorn explained. ‘I think that if you are first to market there are a lot of positives and lots of negatives, because you are doing all of the learning,’ he said. ‘However, I think if you talk to most people,
The FE Fuel Cell concept 40 | CarDealerMag.co.uk
by REBECCA CHAPLIN @believebecca
they would go with us first. When you are first to market, you are always at the front of mind. ‘We want to be about innovation and this is a great opportunity to show that.’ The existing hydrogen range has seen limited sales, but Whitehorn said: ‘I do think that hydrogen will, and I do mean in years’ time, be an absolutely viable alternative. ‘What is interesting is it is all to do with infrastructure. That’s the issue. At the moment, the cost of an ix35 is £52,000. Will that ever come down to the price of a “normal car”? Absolutely, but it’s all to do with economies of scale. As soon as you start to produce, say, 100,000 vehicles, then the price comes right down.’ When it comes to improving said infrastructure though, Whitehorn doesn’t think that it’s down
From rational to emotional HYUNDAI dealers have a lot to be excited about in 2017 as the brand develops its emotional side. No, Hyundai isn’t getting all teary-eyed, but it has a new model line-up to get customers’ hearts racing and keep them with the brand for longer. That started with the unveiling of the Hyundai i30 Wagon at the Geneva Motor Show, with three more variations to come, including the N and Fastback. Hyundai UK boss Tony Whitehorn said: ‘So you’ve actually got a family of vehicles and within that you’ve got two – N and Fastback – which have emotion.’
The i30 Wagon to Hyundai, explaining that it needs to be a government initiative. ‘We’re quite definite in terms of our responsibility – that is, to bring cars to market. ‘I’ll be honest with you, I think this is very much a government initiative. The government needs to ensure that the infrastructure is enabled through incentives or whatever it has to be in making sure that those people like the ITM [Institute of Travel Management] can actually make a proper infrastructure in the UK.’
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MAZDA: Fully electric Mazda could arrive by 2019, says vice-president
The Kia Picanto
Don’t tar all diesels with the same brush, says Kia UK chief KIA: More powertrain proliferation is predicted as the issue of air quality grows in importance, but there’s confusion . . .
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ike carmakers across the board, Kia is fighting an onslaught of customer confusion as more powertrain options come to market. Diesel is currently being attacked from all angles, and while Kia UK boss Paul Philpott believes a scrappage scheme is a good idea, he also thinks it’s become a case of tarring all diesels with the same smog. ‘If you look at a modern Euro-6 diesel, it’s a very different proposition to a Euro-3 diesel. I am a supporter of some sort of diesel scrappage scheme, to get older diesels off the road, but tarring them all with the same brush that diesels are bad? They’re not. Modern diesels are highly efficient powertrains,’ he said. ‘Of course, if all you’re going to do is 10-mile runs in city centres then it’s less efficient than if you do 200-mile trips on motorways. The point here is about having the right powertrain for the consumers’ needs. But is diesel bad? No.’ Rather than retreating away from diesel, Kia is updating its powertrain offering to appeal to the varying needs of customers, and it’s something Philpott expects to see across the industry. ‘I think you’ll see more powertrain proliferation. We’ve unveiled Niro plug-in hybrid today and Optima Wagon plug-in hybrid. Picanto
by REBECCA CHAPLIN @believebecca
picks up the new 1.0-litre turbo GDI engine. ‘So there are lots of powertrain developments to keep pace. Clearly, air quality is a bigger and bigger issue and we need to provide the right range of product offering for both rural consumers and city centre consumers.’ This presents a whole new challenge for manufacturers, Philpott continued, as they attempt to communicate that certain powertrains will be a better option depending on how you use a car. ‘There are a lot of consumers that are beginning to be a bit confused about powertrains,’ he said. ‘For 100 years they’ve had the choice of petrol or diesel, now suddenly they’ve got the choice of electric. ‘Hybrid? Well, hybrid looks interesting because I don’t have to do anything differently. We’ve seen with Niro, since we launched it last year, that demand has been really strong. In fact, we’re now sold out for March and we’ve got a nice order bank to take forward into second quarter.’ However, for now, Philpott believes that convincing customers of the benefits of a plug-in hybrid will take time.
MAZDA is exploring new electric and rotary powertrains, which could be seen in its range as early as 2019. Speaking at the Geneva Motor Show, Matsuhiro Tanaka, vice-president of the Japanese carmaker’s European Research & Development Centre, revealed plans to introduce an electric model, potentially with a conventionally fuelled range extender, within three years. ‘We’re looking at introducing a fully electric vehicle, but also at an electric vehicle with a range extender,’ he confirmed. ‘We will introduce such a vehicle in the future – the near future. By 2019 or 2020.’ He declined to say in which car the electric powertrain would be seen, adding simply: ‘It could be a new model.’ Tanaka referenced a current Mazda 2 electric concept car, which uses a rotary-powered range extender to double the battery capacity. ‘We are now considering how to apply the rotary engine,’ he said. ‘There are several opportunities to apply the rotary engine in the future.’ A Mazda UK spokesman said that while the Mazda 2 had proved itself to be a suitable base for an EV, its first fully electric vehicle in the UK was still open to various options. Meanwhile, Mazda’s new CX-5 made its European debut at Geneva, having been unveiled at the Los Angeles Auto Show last November. Jeremy Thomson, Mazda’s UK managing director, told us the SUV was ‘a stepping stone’ to the next generation of Mazdas. ‘The CX-5 is a very important car for Mazda,’ he said. ‘It’s not just a facelift of a car that came out in 2012, but it hints at a design language that will flow through all our cars in the next few years.’ The new CX-5 has a bold new grille, smoother lines and sharp new lights. It is due to arrive in showrooms this summer and is likely to help increase sales from its current 9,000-a-year UK tally.
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Why 2017 is year of the HONDA: It needs to be our number-one selling car in the UK because we build them here, says MD
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he Geneva Motor Show was a momentous occasion for Honda. At the Swiss show, the Japanese manufacturer pulled the covers from its latest generation Civic Type R, in what is the performance badge’s 25th anniversary year. The dramatically re-styled car has been revealed less than two years after the previous model, in a bold move by Honda to align it with the rest of the Civic range. The petrol Civic was launched at the beginning of 2017, the Type R will go into production this summer, and the diesel model will follow at the end of the year. The new Type R will boast a revised version of the 2.0-litre VTEC TURBO engine that made the previous generation an award-winner. Coupled to a six-speed manual transmission, it will produce 316bhp, with a peak torque of 400Nm and boast three driving modes. ‘2017 is the year of the Civic,’ commented Phil Webb, head of cars at Honda,
by LAURA THOMSON @lauramayrafiki
explaining the reason behind the decision. ‘Type R has never been launched within a year of the main mass-production Civic before and so it had a shorter life cycle than the main car, which is typically about four to five years. You’d generally get three or four years of a Type R. ‘But then the last generation Type R was launched really late because Honda, following the recession, didn’t want to really push on with sports cars as they thought everybody would go back to driving economical cars.’ However, the brand is determined to make the
most of this opportunity, and plans to use the new Type R to sell the sporty styled Civic. ‘We’ll be educating our dealers on how to use Type R to sell new Civic, as the new Civic’s styling very much follows on from the Type R,’ continued Webb. ‘They’ll use the Type R to grab the customer’s attention, and put a new Civic alongside it. So if they can’t afford a new Type R, can we get them into a new Civic?’ David Hodgetts, managing director of Honda UK, added: ‘Civic needs to be the numberone selling car in the UK for Honda
‘We’ll be educating our dealers on how to use Type R to sell new Civic, as the new Civic’s styling very much follows on from the Type R.’ 42 | CarDealerMag.co.uk
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Civic because we build them here, and all the other cars will eventually not be built here. So I think we need to drive the Civic up, and all the other models can look after themselves, really. ‘In 2016 we sold just under 60,000 cars in the UK. With Civic, we’re aiming to sell 15 to 20,000 units when the whole range is available from early 2018. At least a third of our sales need to be Civics.’
Helpful HANA, your in-car companion HONDA had a key theme at Geneva: electrification. By 2025, two thirds of its European sales will be electric or hybrid vehicles, CEO Takahiro Hachigo promised, with worldwide sales to follow suit five years later. A small, simplistic concept known as the NeuV (New Electric Urban Vehicle) was the visual representation of this target. The NeuV is a pure-electric vehicle, offering the ultimate in usability, thanks to its ‘emotion engine’ – a helpful AI assistant known as HANA. That word means flower in Japanese – and the letters stand for Honda Automated Network Assistant.
Jarad Hall, lead group designer for Honda in Los Angeles, explained. ‘HANA is there to make your driving experience more pleasurable. She can pick up on your emotion through cameras reading your facial expression, while sensors in the seats measure your temperature to find out if you’re stressed or if you’re happy. ‘HANA can pull data from the Cloud onto your smart device, so she will know what your preferences are, what temperature you want the car, what your favourite music is, and she will also learn from your daily schedule.’
The Type R will go into production this summer
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What’s in a name? Perfect performance on track and road LAMBORGHINI: New model represents ‘a 360-degree approach to creating class-leading super-sports cars’
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amborghini’s track-bred Huracán Performante went down a storm at the Geneva show, breaking cover with dramatic styling and a Nurburgring lap record already in the bag. The V10-engined supercar managed to smash the record for production cars, sprinting round the 14-mile ‘Green Hell’ in 6 min 52.01 sec and smashing the previous record – held by the Radical SR8 – by more than four seconds. The power required for such a feat comes from a 5.2-litre naturally aspirated 10-cylinder engine, which produces a massive 631bhp and 600Nm of torque. As well as a rapid lap of one of the world’s most dangerous race tracks, the power also permits a 2.7-second 0-60mph time and the ability to get from a standstill to 120mph in less time than it takes a BMW 3 Series to hit 60mph. And the Performante will keep accelerating until it’s doing a massive 201mph. It sounds as brutal as those figures suggest, too, thanks to the high-mounted exhaust pipes. Inspired by sports motorcycles, these not only look special but also reduce exhaust back-pressure and produce a more visceral soundtrack.
by JAMES FOSSDYKE @JFossdyke
Keeping all this in check is a four-wheel-drive system and a mechanical locking rear differential, plus huge carbon-ceramic brake discs gripped by immense six-piston calipers at the front and fourpiston units at the rear. Stefano Domencali, former Ferrari Formula 1 team boss and now Lamborghini chairman and CEO, said: ‘The Huracán Performante is the convergence of technological developments to produce a car delivering perfect performance. ‘This new car represents the powerhouse of Lamborghini DNA and innovation, and a 360-degree approach to creating class-leading super-sports cars. ‘It illustrates the pinnacle of Lamborghini V10 production car performance to date, on both track and road, and is perfectly exemplified by its name: Lamborghini Huracán Performante.’
Putting his art into it
CAR designers are often a slightly kooky, left-field bunch, and spending time with them can be quite an experience, but like the brand he works for, Mitja Borkert doesn’t conform to the stereotypes. The German does, however, have an infectious passion for cars and car design, and he was delighted to tell us just how his team turned the already dramatic Huracán into the even more striking Performante. In fact, he got so enthralled in his narrative that he put pen to paper just for us, explaining the company’s design DNA in an incredible personal drawing. ‘The proportions of the car are what makes a Lamborghini a Lamborghini,’ said Borkert, sketching out a Countach. ‘This silhouette means you can recognise a Lamborghini wherever you are, and we wanted to keep this essence of the car. ‘You want to keep the good shape of the Huracán, but you want to emphasise, and of course you are looking for a differentiation. It has to look different to the basic design.’
The Lamborghini Huracán Performante won many fans at Geneva
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Style and value from a halo car that will boost sales still further VOLKSWAGEN: Brand is being realigned, making it ‘much more competitive and future-oriented’
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he carmaker may be facing challenges but Volkswagen sales are on the rise, according to chairman of the board for passenger cars – and the latest addition to the model line-up is expected to extend that. Volkswagen unveiled the Arteon – an all-new model positioned above the Passat – at the Geneva Motor Show as it attempts to change the way the public views the brand after its period of upheaval. The car maker explained that it aimed to offer the design elements of a sports car paired with the ‘elegance and space of a fastback’. Speaking at the show, Herbert Diess said: ‘As you are well aware, our brand is facing quite some challenges. But we are making good progress, creating a new and even stronger Volkswagen. Sales are rising. In 2016, worldwide deliveries increased by 2.8 per cent to six million vehicles. The regions are recovering. In the United States and in South America we are growing, with double-digit figures in the recent months. ‘Profitability is making progress, too. Although we had to deal with pressure on margins, we have kept our operating results in 2016 stable, mainly by cutting costs. In Germany alone, we cut fixed
by REBECCA CHAPLIN @believebecca
costs by about 300 million euros [£260.7m] – the first decrease since 2007.’ The Arteon will be the top-end model for Volkswagen – a halo product that the brand has been lacking until now – and the VW boss hopes it will challenge premium car makers. He explained: ‘The Volkswagen brand is on the move. We are moving forward with new, emotional products. And we are realigning the whole brand, making it much more competitive and future-oriented.’ Diess added: ‘The Arteon has the proportions of a Gran Turismo; the sleek roofline makes it absolutely beautiful. At the same time, there’s plenty of room for up to five people – plus their luggage. Beautiful and functional: that’s a winning combination. ‘And of course, the Arteon offers the very latest in infotainment and semi-automated driving. ‘It’s the perfect car for people who appreciate both great style and great value for money.’
Sedric’s a key part of firm’s strategy VOLKSWAGEN unveiled its new ‘Sedric’ concept – an autonomous car aimed at mobility for all – at the Geneva show. More than just a funny name, the autonomous van is the latest concept that attempts to change the way the public views VW, with a holistic approach to motoring, as the never-ending Dieselgate investigation rolls on. ‘Sedric’ stands for ‘self-driving car’, and the carmaker says this concept offers a concrete insight into an individual mobility solution that can be used by everyone.
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SHOWSTOPPER IN DETAIL
Alpine A110 Rebecca Chaplin gets the lowdown on the sports car that’s come back with some very impressive figures
Historic heritage Based on the original A110 produced in the 1960s and ’70s, this latest model has kept the shape and lines of the classic model while adding modern technology. 46 | CarDealerMag.co.uk
Tough competition The Alpine’s weight and power puts it in a sweet spot to take on the likes of the Porsche Cayman, with a 1,080kg kerb weight as well as 248bhp.
Acceleration That power-to-weight ratio also means 0 to 60mph is achievable in merely 4.3 seconds.
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Special touches Other special additions to the Alpine A110 include carbonfibre accents and ‘Tricolore’ red, white and blue badging on the interior of the car.
Flat floor Alpine’s engineers have taken their inspiration from racing cars to optimise the A110’s aerodynamics, with a completely flat floor and functional diffuser under the rear bumper.
Mighty power The A110 is fitted with a 1.8-litre four-cylinder turbocharged engine, developed by RenaultNissan, paired with a seven-speed wet-clutch DCT gearbox.
Modern touches The rear of the car has been modernised, with the ‘X’-shaped LED lights and sweeping lines.
LED lights Part of the A110’s signature look comes from those four circular lights on the bonnet of the car.
ALPINE: After 22 years away, an icon is reborn as two-seater returns to production ALPINE has finally returned to motoring – with the A110. Founded in 1955, the manufacturer was bought by Renault in 1973, but production of its rally-winning car ended in 1995. Compact in design, the two-seater takes design cues from classic Alpine models. At just 1,080kg, it’s incredibly light, and the 44/56 weight distribution should mean that it handles just like a two-seater sports car should. Importantly, it beats the power-toweight ratio of its closest rival – the Porsche 718 Cayman. The Alpine manages a ratio of 231bhp/tonne, while the Cayman sits at 222bhp/tonne. One element of the car that had remained unclear until now was the A110’s engine. Now, however, it has been revealed that the Alpine will be powered by a 1.8-litre, four-cylinder turbocharged engine developed by the Renault-Nissan Alliance. It has been heavily worked on by Alpine engineers in partnership with technicians from Renault Sport, and is capable of producing 248bhp and 320Nm of torque. This allows the Alpine A110 to reach 60mph in just 4.3 seconds and achieve a top speed of 155mph. The Alpine also uses a Getrag sevenspeed wet-clutch transmission, as well as a single exit active sports exhaust system. Even the brakes are unique. In a world first, the rear brake system incorporates an integrated parking brake actuator – this saves 2.5kg. A limited run of A110 ‘Premiere Edition’ cars will be the first produced, priced initially at €58,500 in France (circa £50,730) – although pricing structures are set to be announced in mid-2017 when formal orders begin. The Alpine A110 has been designed in France and is due to be produced at the Alpine factory in Dieppe. CarDealerMag.co.uk CarDealerMag.co.uk| 47 | 47
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Autonomous, electric future... with a car turning into an office VOLVO: Self-driving cars will allow hours of wasted time to be used in a productive way, but premium customers will still want to retain control
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olvo is planning to introduce an electric vehicle in 2019 and a fully autonomous car in 2021, the company’s boss told Car Dealer at the Geneva Motor Show. Hakan Samuelsson, president and CEO of the Swedish car maker, confirmed that the firm planned to offer a fully electric vehicle before 2020, while a car with fully autonomous features will follow a couple of years down the line. Samuelsson is sure that fully autonomous features would be a highly desirable option for consumers – particularly company car drivers. ‘Autonomous drive will be the most attractive feature in a car that has been released in many, many years. This is because it will suddenly allow you to use hours of wasted time in a more productive way. Suddenly, you can use your car as an office. I think that has a huge value.’ He stressed that Volvos of the future would be capable of driving themselves without any driver
by JAMES FOSSDYKE @JFossdyke
input, but claimed that premium customers would still want the ability to drive the car themselves. ‘You can drive it if you turn off the autopilot,’ he said. ‘I think that is what people want to have from a premium car.’ However, Samuelsson remained coy about details of the electric powertrain, refusing to be drawn on which models would be first to benefit from electric propulsion. ‘We are not just developing one model, so we are developing electrification for the small platforms and the big platforms, and we haven’t revealed so far which the first one will be.’ In the short term, though, Samuelsson still thinks diesel has a role to play. ‘Until 2020, the diesel engine has a very important role to play if
you want to keep those CO2 levels down, but after that, the diesel will be more expensive. ‘We have to invest to bring diesel emissions down because the legislation is coming in already. You need the urea after-treatment, so that investment we will do, but after 2020 I’m quite sure the diesel engine cannot help us.’ Taking pride of place on the Volvo stand at Geneva was the new XC60 premium SUV. The new car replaces Volvo’s highly successful original XC60, which in the nine years since its launch became the best-selling premium midsized SUV in Europe, with nearly a million units sold globally. The XC60 today represents around 30 per cent of Volvo’s total global sales. Samuelsson said: ‘We have a strong heritage in designing stylish and dynamic SUVs that offer the latest in technology. ‘The new XC60 is no exception. It’s the perfect car for an active lifestyle.’
The XC60 is the ‘perfect car for an active lifestyle’ 48 | CarDealerMag.co.uk
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The Eclipse Cross will join the contenders in the everexpanding C-segment
We’re looking forward to the fruits of our tie-up with Nissan MITSUBISHI: ‘Eclipse Cross is an opportunity to deliver a fabulous-looking car to a different type of customer’
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issan’s alliance with Mitsubishi could result in a swathe of new models for the firm as the two companies work out how to share platforms. Mitsubishi Motors in the UK managing director Lance Bradley said a review was currently taking place of both the firm’s platforms and plants to work out how best to make use of shared technologies. ‘There’s a review taking place to work out what is coming and when and where the crossovers are to see if some could be accelerated,’ explained Bradley. The next Outlander is part of that review with Bradley believing production could eventually move outside of Japan. ‘If you start building cars in Europe, some of the exchange rate difficulties we experience start to disappear,’ added Bradley. ‘So it’s very exciting and we could be seeing potentially very big changes, but they’re all positive.’ Bradley said PHEV technology will still play a large part in the success of the next Outlander and he hoped the electric range will increase dramatically on the forthcoming model.
by JAMES BAGGOTT @CarDealerEd
He said: ‘Everything will get better. For the next generation I would expect to see the range more than double from where it is today and then you get a position where if you get a 70 to 75-mile range, that’s quite a lot. There’s not very many people who do that, so then that really starts to change things. It’s exciting.’ At the Geneva Motor Show, Mitsubishi unveiled the Eclipse Cross – a car that will sit between the ASX and Outlander. It’s a car that will appeal to a different type of customer. ‘We think that this is the first Mitsubishi for a long time that people will look at and say, “I want one of those. What is it?”,’ said Bradley. ‘This is a really big opportunity for us to get to people who just want a fabulous-looking car. We’re thinking we may sell as many as 10,000 in a year, which would make it our second best-selling car.’ Bradley believes that most of those sales will be incremental too as it’s a different proposition
to the ASX and Outlander. ‘Sales will almost be entirely incremental, we think,’ confirmed Bradley. ‘We see the vehicle sitting between ASX and Outlander. It’s quite different to both and that’s a good thing.’ Production is due to start in November with cars arriving in January 2018 and Bradley hopes to steal a slice of the C-segment SUV market. Bradley said: ‘If you want to launch a new car, that’s where you want to launch it because the C-segment is a huge sector and crossovers are becoming more and more popular. ‘With this kind of car, people will understand why we’re doing it and they’ll appreciate the “Mitsubishi-ness” of it. ‘There’s good competition out there. Nissan have done an incredible job with their Qashqai – they created the segment with that model – so that would be one of the cars that we looked at very closely.’ CarDealerMag.co.uk | 49
DASHBOARD.
It’s our difficult second album McLAREN: 720S represents ‘a significant step forward’ – but supercar manufacturer won’t be turning its hand to SUVs
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cLaren has absolutely no desire to follow the likes of Bentley or Lamborghini down the SUV route – not with its current shareholders in place, anyway. That’s the opinion of Jolyon Nash, executive director of global sales and marketing for McLaren, who shot down suggestions the British firm could one day make an SUV. ‘I can’t see it ever happening – no,’ he said. ‘Maybe one day, when we’ve got different shareholders, we’ll have a different view, but based on our current shareholders, our current management, it’s just not in our DNA.’ When asked if Porsche’s success with its switch from being a sports car maker that produces SUVs to an SUV manufacturer that makes sports cars might influence McLaren, Nash said he believed that was a change forced upon Porsche when it lost its independence. ‘I can’t see McLaren ever venturing into
Chassis The McLaren 720S has a carbon-fibre chassis – weighing in at just 1,283kg. 50 | CarDealerMag.co.uk
by JAMES BAGGOTT @CarDealerEd
the SUV market,’ he said. ‘Our business plan demonstrates we are profitable and will generate healthy returns for our shareholders as a sports and supercar manufacturer.’ McLaren launched the 720S – the replacement for the 650S – at the Geneva Motor Show. The model will be at the core of its range – one which, Nash is quick to point out, isn’t in any way confusingly named. ‘Naming strategies over time settle in the consciousness,’ said Nash. ‘I think you could look at a lot of other car brands and find more complicated naming strategies that are now understood. So, for us it’s relatively
Aerodynamics The 720S is twice as aerodynamic as its slippery predecessor the 650S.
straightforward. We’ve only been using the naming strategy effectively since 2014, so we have three product families – Sport Series, Super Series, Ultimate Series.’ Put as simply as possible, that’s the Sport Series encompassing the 570 models, the Super Series including the 650 and now 720 models, and the Ultimate Series for the P1 and its eventual successor. ‘I think customers are getting it,’ added Nash. ‘People who are new to the brand take some time to understand it, but other brands are even more confusing.’ Nash has only been with the company a short time, not nearly long enough to know the full
Power The new 4.0-litre V8 engine is twinturbocharged, producing 710bhp and 770Nm of torque.
SPONSORED BY
– but we’ve got another hit extent of Ron Dennis’s reign at the haven’t been there, but Ron was the helm of the firm. visionary who saw a potential car However, he thinks that despite the business for McLaren, so we’re here Jolyon Nash mercurial chief executive’s departure, thanks to Ron for having the courage, the attention to detail he instilled in the and the rest of the shareholders too, to brand will live on. set up a car business. ‘For McLaren Automotive, there’s no difference ‘It’s a highly competitive thing but ingrained whatsoever,’ he explained. ‘Ron is a shareholder in the personality, the character, the culture of of our business, I think he has something in the McLaren Automotive that we have obsessive region of 10 per cent, he’s our non-exec chairman. attention to detail, relentless pursuit of getting Ron wasn’t involved in the day-to-day running of better and better, pioneering technology, that’s our business, so for us it’s business as usual.’ McLaren, that’s what we are. You don’t need one However, surely the brand misses the founder’s individual to drive that.’ presence in the office and the drive that was Now, though, the firm is focused on instilled in the workforce? introducing the 720S and making it a success, ‘Attention to detail is an inherent characteristic said Nash. ‘We’re confident that when anybody of McLaren,’ explained Nash. drives the 720S, they will see it as a very ‘Whether that has originally come significant step forward for McLaren,’ he said. from Ron, I couldn’t say, I ‘However, we talk about this internally as, if we were a rock band, this is our second album. ‘With second albums you’re always under pressure, but we think we’ve got a hit on our hands with this car.’
Speed The 720S hits 60mph in 2.8 seconds and 124mph in 7.8 seconds. Braking from 124mph back to zero takes 4.6 seconds and it will hit 212mph top speed.
Efficiency The 720S has been developed with efficiency in mind – it returns 26.4mpg and emits 249g/km of CO2.
McLAREN: Being British and building in Britain is central to our DNA McLAREN Automotive is committed to manufacturing its supercars in the UK – despite the Brexit uncertainty circling the automotive industry. The British supercar manufacturer – which launched its new 720S supercar at the Geneva Motor Show – believes being British and building in Britain is ‘absolutely core’ to its DNA. Many manufacturers that build cars in the UK have refused to commit to production here until trade deals with the rest of the world are put in place by the Conservative government. However, McLaren, which builds its cars – 90 per cent of which are exported – at its Woking headquarters, won’t be changing its plans any time soon. Jolyon Nash, the company’s executive director of global sales and marketing, said: ‘We are a British company and our intention is to always build our cars in Britain. I do not see a future where that won’t be the case. ‘Our business plans remain relatively unchanged. We have a neutral stance on Brexit. What we want now is certainty – businesses can plan around certainty, whatever that looks like, and that’s what we want.’ Nash added that the supercar maker was hoping trade agreements could be agreed as quickly as possible. ‘Personally, I think the European Union would be shooting itself in the foot if it were not to give us a good deal, such is the size of our car industry,’ he said. ‘We are relatively hopeful the government will get a decent deal. For us, though, nothing changes – we are an exporter and we are not changing any of our plans any time soon. I can’t ever envisage any circumstances that would see us manufacturing in any other country. ‘In fact, we have recently invested further in the UK with our carbon-fibre facility in Sheffield – and that, if anything, shows our commitment to remaining in the UK.’ CarDealerMag.co.uk CarDealerMag.co.uk| |51 51
DASHBOARD. Subaru XV SUBARU sees the XV as one of the few serious 4x4s to populate the mainstream C-segment SUV market, and the all-new model has certainly been set up to tackle the rough stuff. It has 220mm of ground clearance, symmetrical all-wheel drive and something called X-Mode. This is essentially a traction control system that controls power, braking and four-wheel-drive system in a bid to improve grip on slippery surfaces. It should also be safer, with a stronger structure that has increased energy absorption by 40 per cent and the fitment of Subaru’s EyeSight driver assistance system, which uses optical cameras to scan the road ahead. The new XV has fresh panels all round, and has been designed to look sportier than before, while the cabin gets improved seats, orange stitching on the instrument panel and an eight-inch touchscreen in the centre of the dashboard. It has been built to drive more sportily, too, with increased torsional rigidity and more rigid suspension mounts, as well as active torque vectoring.
Who will be the next SUBARU & SSANGYONG: After iconic manufacturer’s move
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he fight to become the next Land Rover is on, after both Subaru and SsangYong laid a claim to the territory left behind by the British brand’s move upmarket. Subaru wants to position itself as the next middle-market off-road brand, sitting below Land Rover in terms of price, but offering the same dependable four-wheel-drive image for those living in the countryside. ‘We’d like to own the territory that Land Rover left – real off-roaders, but affordable off-roading, from £18,000-£32,000. Not everybody wants a beautiful ivory leather Land Rover to put their cocker spaniel in. I see a big role for Subaru in taking over that territory,’ said Subaru’s marketing director, Chris Hawken. Paul Tunnicliffe, the company’s managing
by JAMES FOSSDYKE @JFossdyke
director, believes the new XV, which was revealed at the Geneva Motor Show, would be key to helping the brand achieve this aim. ‘We have high hopes for XV,’ he said. ‘You buy the car for the advantages the technology gives you – if you’re worried about having good grip and good reliability, it’s the car for you. ‘It’s a car bought by people living in the country who do country things – point-to-point, hunting, shooting, towing horseboxes.’ However, the Japanese brand faces competition from elsewhere in Asia, with SsangYong – a company that already describes itself as the
Subaru’s new XV, left, and SsangYong’s XAVL concept, right
ALFA ROMEO: Performance hybrid models are on the way but in the meantime new SUV ALFA Romeo will launch performance hybrid models across its range – but only when battery technology gets lighter and cheaper. Roberto Fedeli, chief technical officer of Alfa Romeo, told Car Dealer at the Geneva Motor Show that he was focussed on putting hybrid models into production that would live up to the brand’s performance reputation. 52 | CarDealerMag.co.uk
‘I can imagine a performance hybrid that drivers could choose to make more exciting when they wanted using the DNA switch in the car,’ said Fedele. ‘Alfa Romeo hybrids will have to be performance models, but weight is currently the issue. When batteries are light enough we will use them to boost performance and excitement.’ He said that lessons learned from Ferrari
LaFerrari were not transferable to Alfa – just yet. ‘The battery in that car was developed by the F1 team and I have no idea of the cost but it shows performance hybrids can work,’ he added. ‘That technology isn’t transferable to us. Cost and weight is the key to us but hybrids will come in the next few years.’ Taking pride of place on the Alfa Romeo stand
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SsangYong XAVL
Land Rover? upmarket, we look at the brands aiming to fill the gap Korean Land Rover – also on a product offensive. The company displayed a seven-seat SUV concept called the XAVL at Geneva, and will show off the new Rexton at the Seoul show later this month. ‘We often call ourselves Korea’s answer to Land Rover, because we only make SUVs and crossovers,’ said SsangYong GB’s CEO, Paul Williams, ahead of the Geneva Motor Show. ‘The SUV market is growing, and growing in a rising market is easier. ‘If the market is expanding and people are being confident, they will go outside the norm, rather than reverting to a safe option. ‘I believe that we’ll get to 10,000 units in the UK by 2020. How’s that going to come? By new product. XAVL is demonstrative of the company’s ambition. We’ve got at least one new car coming
every year until 2021. The fact we’re getting new products all the time now really does put us in a completely different position as a brand. SsangYong wants to punch above its weight.’ Williams’ bullishness is well-founded. The company sold 5,000 cars in the UK last year (significantly more than Subaru managed), it’s a company that’s now in profit and it only expects to grow in the coming years. However, Williams is cautious about the firm growing too much. ‘We don’t want to be all things to all people, because we can’t do it,’ he said. ‘Because people don’t know who we are at the moment, we’re actually selling the product. It’s not a race to the bottom.’ [CD]
SSANGYONG GB had hoped to have the new Rexton in Geneva, but the seven-seat XAVL concept still turned plenty of heads. It points to a smart new design language for the brand, as well as a more premium cabin and a raft of new technologies. At the front, it borrows cues from the smaller Tivoli, while the slanted C-pillar is lifted from the Tivoli XLV. At the back, though, it’s all new, with a horizontal light cluster bar across the tailgate. Despite this rugged look, the cabin has been designed to provide a classy, premium feel. The dash is dominated by a 10.25-inch touchscreen, although ventilation, heating and infotainment can all be controlled via a paired smartphone. Power comes from a 1.6-litre diesel engine or a 1.5-litre petrol engine, and the vehicle is expected to arrive by around 2020, when it will sit alongside the new Rexton at the top of the range.
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‘We’d like to own the territory that Land Rover left – real off-roaders, but affordable off-roading, from £18,000-£32,000.’
Stelvio is in the spotlight
Alfa Romeo Stelvio
at Geneva was the manufacturer’s first SUV in more than 100 years: the all-new Stelvio. Available in three trim levels, it will initially be available with a choice of a 276bhp 2.0-litre Turbocharged petrol or a 207hp 2.2-litre Diesel engine, both combined with an eight-speed automatic transmission and Q4 all-wheel drive. Forecourt, p62 CarDealerMag.co.uk | 53
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DASHBOARD.
Around the world Dealer news from somewhere other than here
RUSSIA
A FURIOUS businessman used an axe to smash the windscreen of his Range Rover after claiming he paid £147,000 for ‘broken British sh**’ and was unable to gain access to the interior to retrieve his key. He claimed faulty electrics were to blame, but Land Rover Russia said an aftermarket alarm might have caused the issue and that the car had never been serviced. ‘He should have used his second key,’ a spokesman added.
AMERICA
IF YOU don’t get behind electric cars, you’ll be dinosaurs in 10 years – that was the gist of a message to American car dealers from Audi America president Scott Keogh recently. In a speech reported on various US websites, Keogh said: ‘All this fright about where am I going to get a charge is going to go away extremely fast. The technology on this front is moving at a staggering pace.’
NIGERIA
THE Mitsubishi brand is on the road to revitalisation in Nigeria with the appointment of Massilia Motors Limited as the sole distributor of the manufacturer’s cars in the west African country. The company has a flagship showroom for the brand in the capital, Lagos, and has launched a new website in a bid to deliver ‘world-class customer service’.
CHINA
CAR buyers in China have a hell of a job knowing whether they have got a good deal or not – with many being discouraged by the fluctuations in price that exist in the vast used car parc of almost 200 million vehicles. However, the rise of car valuation companies with vast databases is helping to change this situation, reports the website ChinaDaily. com. For instance, the Jingzhengu app has statistics for around 46,000 models on China’s roads with information provided by multiple sources, including carmakers, dealer groups and insurance companies.
AUSTRALIA
THE top man in Mazda’s Australian operation is retiring after more than 30 years with the Japanese brand, the past four as managing director. Martin Benders, who has been with Mazda since 1985, oversaw the brand’s steady and sustained growth and worked to extend its national dealer network. Benders’ replacement, Vinesh Bhindi, is promoted from sales director.
www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller
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FINANCE. Close Brothers celebrates 25 years of service in Sheffield CLOSE Brothers Motor Finance is celebrating the 25th anniversary of its Sheffield branch. Despite tough economic conditions over the years, Close Brothers has proved a success in the region, working with more than 2,000 dealers and helping to finance 65,000 cars worth nearly £440m over the course of 25 years. Following the success of its Sheffield and Doncaster offices, Close Brothers Motor Finance expanded the business, bringing the number of offices to 13 across the UK. It now has one of the largest branch and on-the-road networks of local account managers for dealers. The company also has two offices on the Channel Islands, one each on Jersey and Guernsey, as well as a division in the Republic of Ireland.
Mark Wall, branch manager at Close Brothers Motor Finance’s Sheffield branch, pictured, said: ‘Our 25th anniversary is a significant landmark for the business and a testament to our progress and the development we are making across the network. Helping to ensure local dealers are supported and offering face-to-face time is a crucial part of our business. ‘Through our strong local account
management and accessible regional support, we can help dealers with business development while using local knowledge to help cater to their customers’ specific vehicle and financing requirements.’ With the business having a strong Yorkshire heritage, it has many local long-standing dealers that it supports with a specialist and bespoke offering. James Holland, owner of the Car and Bike Specialist, based in Edmund Road, Sheffield, has been a client of Close Brothers Motor Finance since 2006, and he said: ‘Close Brothers Motor Finance has a strong reputation in the Yorkshire region, and for good reason – the support they have offered has been hugely beneficial to my business.’
Accreditation is urged as report highlights mistrust Industry body reveals extent of customers feeling pressured over F&I
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early half of drivers don’t trust a car salesman after being overcharged and missold finance and insurance products when buying from a dealership, according to a new report. Research from the Institute of the Motor Industry (IMI), the professional body for the automotive sector, has found that finance and insurance (F&I) products are added to 60 per cent of all car purchases. However, 45 per cent of 2,000 drivers quizzed said they felt pressured by a salesman to buy addons when they most recently bought a car from a dealership or garage. The Financial Conduct Authority has brought in changes to the Consumer Credit Act to stop drivers2.pdf Car Dealer Advert Horizontal C
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being missold F&I products. Yet 42 per cent of car buyers said they had avoided a dealership because of the lack of trust. According to the IMI research, this mistrust could be avoided, with 64 per cent of the 18-to-55-plus-year-olds who took part saying buying a car would be easier if the people they were buying from belonged to a regulated body. More than half said they would feel more comfortable making financial decisions relating to a car purchase if additional measures were in place to ensure they weren’t overcharged IMI chief executive Steve Nash said: ‘Sadly, our research highlighted that nearly two-thirds (63 per cent) of carbuyers find the process stressful. 01/03/2017 13:37:03
‘This underlines why it’s the right time for the retail motor industry to take more responsibility to ensure anybody selling finance and insurance products has the correct training to be able to help drivers decide whether or not they would like to buy these extras when purchasing a vehicle. ‘The IMI F&I Accreditation helps safeguard customers by ensuring the salesman is giving accurate and truthful information. ‘It also gives the car salesman the knowledge to be able to identify which products, if any, are suitable for that individual customer. This training is just one step further in ensuring the industry is providing a good-quality and honest service.’
TECHNOLOGY
New app aims to enhance broker service CARFINANCE 247 has reimagined its customer service and digital operations by becoming the first online motor finance broker to launch a native mobile app. Created on the back of extensive consumer research and a six-figure investment, the app aims to create richer communications between CarFinance 247 and its customers. Technology director Jonathan Wilson said: ‘The new app is revolutionary for CarFinance 247 and is all about enabling customers to communicate with us in ways that are most convenient to them. ‘Research demonstrated that our customers massively value the personal service that we deliver, via our agents, but they would like this communication to be extended to text and in-app chat as well as the current methods. ‘Customers who download the app can enjoy a self-service platform with a quicker, more streamlined customer journey. They will benefit from push notifications, instant personalised quotes and a live chat facility enabling them to interact with a customer service specialist.’ The app is available to download for iOS and Android devices, and future enhancements will include photographing and uploading documentation, calling agents from within the app, and fingerprint authentication.
IN ASSOCIATION WITH
Watch out for the new ‘Fred’ blowing change through search results I
n 2015 Hurricane Fred was the first to pass through Cape Verde in more than 100 years, growing to a Category 1 with peak winds of 85mph. Now, just when we thought it was safe in the web world, along comes another ‘Fred’ to shake up our current search engine results. Recently, I’ve been reading a number of reports in the search engine optimisation (SEO) community and have seen Google tracking tools showing some significant signs that a Google algorithm update has occurred and that the SEO community has named it ‘Fred’. Up until now, though, this change is still unconfirmed by Google. Google is doing this a lot at the moment, as back in February we believed that there was an update, but this
‘I am happy to see that our domain authority has not changed.’ was never confirmed either. What I can tell you is that it is targeting ‘black hat’ areas such as dodgy links and is more than likely a spam update. ‘Black hat’ techniques are purposely malicious and in this case make sites look better than they actually are. On March 8, online marketing competitive research service SEMrush stated: ‘Webmaster forums have reported numerous position and traffic shifts. The SEMrush sensor is also showing a high level of volatility this day. The main hypothesis is that the update is related to link building, but no official confirmation has been received.’ Luckily for me, all our efforts over the years have been purely focused on being ‘white hat’ – that is, ethical hacking to ensure the security of an organisation’s information systems and to identify places that need repairing – and
Ben
Garside TIME IS MONEY
taking the correct and sometimes lengthy route, while not cutting corners. I’m glad that our digital marketer removed a few links last year from domains we believed to be dubious and dangerous to future marketing efforts. These links could have been very costly and I am happy to see that our domain authority has not changed in the slightest and that in our search engine results page rankings we have seen a little movement in the whole, but they have returned positively and we have not seen much negative movement. For those dealers out there who track their rankings, I’d like to know what movements you have all seen, so feel free to email me or send me a tweet. For those of you who think I have been writing gibberish
Turn over page for more finance stories for the past few hundred words, here’s an overview: When a web user searches Google, Google decides where your web page will be placed in the results. Google does this based on a host of different algorithms (a rule-based response) and within these algorithms it picks out the most likely websites that the user wants to read. One of Google’s key areas of measurement are links from other domains (websites) to yours. It looks for links that are relevant to each other (same type of content, keywords, etc). However, Google also removes or places websites in a lower position if the sites have used ‘black hat’ techniques – for example, linking from spam sites or paying for links from sites. The key learning here is to make sure that your marketers or agency are not cutting corners in SEO or you will get found out!
Who is Ben Garside? Ben is marketing manager for First Response Finance. Call him on 07817 518739 or email ben.garside@frfl.co.uk
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DEALFINDER.
FINANCE. YOUR ESSENTIAL GUIDE TO . . . ROADSTERS AUDI TT ROADSTER THE Audi TT is now in its third generation and has matured into a top-quality coupe and roadster model. The TT Roadster in S Line trim fitted with the 2.0-litre TDI Ultra diesel engine and optional metallic paint is currently being offered for £329 per month on a three-year contract. Following a customer deposit of £7,021.13 and an Audi contribution of £4,500, customers pay the 35 monthly instalments of £329, which total £18,536.13 including the deposit. If the owner decides to hold on to the vehicle, they pay £16,782.21 plus the option-to-purchase fee of £10, meaning an overall cost to the customer of £35,328.34 – which is £696.66 less than the on-the-road price. It has a 10,000-mile per annum agreement, 6.28 per cent fixed rate of interest and 6.3 per cent representative APR.
MAZDA MX-5 SEEN as the quintessential roadster, the Mazda MX-5 is worldrenowned for its accessible performance, feel-good factor and relatively affordable outlay. The newest version – the fourth generation – updated the model, and with Mazda currently offering the top-spec Sport Nav model fitted with the top-end 158bhp petrol engine for £379 per month, the MX-5 is again very affordable. Following a customer deposit of £3,617 and a Mazda contribution of £500, the customer pays 36 instalments of £379 for the 37-month contract. At the end of the contract, the customer can choose to keep the vehicle at a cost of £8,302.38, taking the total to £25,563.38 minus the Mazda contribution. The offer is available on a 9,000-mile per annum agreement and 2.01 per cent per annum fixed interest, 3.9 per cent APR.
Budget comes in for flak from SMMT over funding and rates Industry body says opportunities were missed by chancellor
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he Spring Budget left the SMMT by DAVE BROWN disappointed that chancellor of the @CarDealerDave exchequer Philip Hammond didn’t tackle what it sees as two key points. Here’s what was in the Budget box that was of a detailed draft plan that will set out how the relevance to car dealerships. UK’s air quality goals will be achieved. It will also Fuel duty – Frozen again in 2017. It is the continue to look at diesel vehicles’ tax treatment, seventh consecutive year that there has been no with changes to be announced in the autumn. increase in the tax. Technology – A £270m investment to keep Vehicle excise duty (VED) – From April 1, 2017, the UK at the forefront of technologies such as VED rates for cars and vans registered before April driverless vehicles and biotech systems. 2017 will increase by the rate of inflation. Easing traffic congestion – £90m for the north Corporation tax – The main rate will reduce to and £23m for the Midlands from a £220m ‘jam19 per cent from 20 per cent in April 2017 before busting’ fund that addresses pinch points on the being cut again to 17 per cent in 2020/21. national road network. Air quality – The government will consult on Car Dealer Advert Horizontal 1.pdf 1 01/03/2017 13:36:04 Reacting to the Budget, SMMT chief executive C
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Mike Hawes said: ‘UK Automotive plays a critical role in the country’s economy, but future success will depend upon maintaining competitiveness. ‘It’s disappointing, therefore, that the chancellor hasn’t prioritised additional funding for supply chain development, nor addressed the flaw in business rates that disincentivises investment in plants and machinery.’ He added: ‘There is a limited amount of evidence to suggest that new and used car buyers won’t continue to buy vehicles in historically high numbers throughout 2017 and into 2018. ‘The only caveat is that all of this only applies if the outlook is accurate. However, there is undoubtedly a more generally optimistic mood across the industry.’
Car Dealer Advert Column.pdf 1 28/02/2017 12:08:26
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PORSCHE 718 BOXSTER FOLLOWING a mid-generation update, the Porsche 718 Boxster is both a statement and an excellent vehicle, with the German brand’s reputation preceding this two-seat sports car. Customers can choose between a 2.0-litre, 296bhp engine or a 2.5-litre, 345bhp unit. The quality of the finish is extremely high, and for a premium roadster there are few that can come close to the 718. Dealers can offer the 2.0-litre Boxster for £388.77 per month on a 36-month agreement. Following a £10,800 deposit, the customer pays 35 monthly instalments of £388.77, which at the end of the contract will total £24,406.95. If the driver chooses to hold on to their Boxster, they must pay the £10 option-to-purchase fee and final payment of £22,901.65, meaning a final total of £47,318.60. Both the rate of interest and representative APR are 6.6C per cent, and the agreement is for 10,000 miles per annum.
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Dealers urged to look into complaints fully as deadline is introduced
Point-of-sale figures live up to predictions
THE Financial Conduct Authority has brought in a deadline for new complaints about payment protection insurance. But while supporting the announcement, the National Franchised Dealers Association has predicted that it will result in an increase in claims in the short term. The final deadline for making a new PPI complaint will be August 29, 2019, and to encourage people to decide whether to act before then, the FCA will run a two-year consumer communications campaign, which will be launched this August to help people decide whether or not to make a complaint. NFDA director Sue Robinson said: ‘We urge dealers to fully investigate any complaints they receive to check their validity. ‘The number of claims is likely to increase in the short term, but recent experience suggests that the quality and quantity of these have been falling. ‘Dealers have been facing significant administrative burdens and costs for PPI claims, and we believe the deadline will put an end to the uncertainty previously caused.’
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NEW business in the point-of-sale consumer new car finance market grew nine per cent by value and three per cent by volume in January compared with the same month in 2016, according to the Finance & Leasing Association. The percentage of private new car sales financed by FLA members through the point of sale was 86.5 per cent in the 12 months to January, compared with 86.6 per cent in the 12 months to December 2016. The point-of-sale consumer used car finance market also reported new business growth in January of 15 per cent by value and nine per cent by volume. FLA chief economist Geraldine Kilkelly said: ‘The performance of the point-of-sale consumer car finance market in January was in line with the industry’s expectations for 2017 overall.’
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STREAMLINE YOUR SALES PROCESS Discover the power of our Mobile Finance Calculator and Credit Indicator. They’re designed to help you spend more time with your customers and less time at your desk.
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BIG MIKE.
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Crazy days for classics ..and why I still harbour hopes of a yacht T
he world is going potty – or maybe it’s just me. Why, you ask? Well, it seems like the definition of a ‘classic car’ has changed somewhat. Yes, there’ll always be a ready market for Austin-Healeys, E-Type Jaguars and Morris Minors, but it seems that some of the more traditional cherished models are being left on the shelf in favour of cars that, just a few years ago, I couldn’t give away. If you don’t believe me, how about these examples? Just recently, on eBay, I witnessed a Ford Fiesta XR2 reach the heady heights of £11,000. This is the hot hatch that was all mouth and no trousers in its day – but then perhaps that’s reflected in the price? After all, I saw a Peugeot 205 GTi sell for £16,000 the other week, and that was an infinitely better car back in the day. It was also a car that, less than a decade ago, you could pick up a half-decent example of for a grand. At least hot hatches have a certain place in motoring history. A fad of the 80s and 90s, there are many who grew up viewing them as icons. The same can’t be said of the Rover 800 Fastback, which was effectively a big Honda with added British reliability. I sold them when they were new and they were a bit crap, but recently I saw a brown 1989 example sell in an online auction for a shade under £10,000. That was the end-of-auction price, I hasten to add, not a classified ad. Sure, it was immaculate, with less than 20,000 on the clock, but even so… well, it wasn’t even worth 10 grand in 1990. Equally flaky in terms of initial build quality was its predecessor, the SD1. So imagine my surprise to see one for sale recently at £18,995. I had to check the vendor hadn’t slipped an extra ‘9’ into the ad, and apparently he hadn’t. I know of several other examples – a low-mileage Mercedes-Benz 190E that sold at auction for £11,900; a Datsun Cherry that reached an astonishing £5,850; and a pair of Austin Metros that went for four grand apiece.
Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...
Nothing, though, in comparison to the MG Metro Turbo a classic car dealer was peddling recently for £17,995. Try getting that for a Morris Minor… The most ridiculous one of all, though, was a Ford Capri that sold for £47,000. Yep, three large short of £50k for a Cortina in a party frock. The one thing all the above have in common, though, is that they were worth diddly squat a decade ago. They were, by all accounts, ratty old bangers that had little or no redeeming features other than nostalgia (see also: Morris Minor). Indeed, even with the most committed amounts of elbow grease, I’d struggle to raise a grand for even a nice example. So, here’s my plan. At least two-thirds of my forecourt stock is more than 10 years old. I tend not to deal with newer stuff as all these fly-by-wire electronics are beyond my comprehension, so my stock-in-trade is decent, low-
‘...three large short of £50k for a Cortina in a party frock!’ mileage dealer part-exes. Nice, well looked-after cars that are too old for mainstream dealers, but sell really well – and often to wealthy, cash-in-hand returning customers who are too financially savvy to spend their money on a depreciating asset. Except, they may not be able to return. Because if ever I’m going to get the yacht I’ve always dreamed of owning, I reckon the best course of action will be to cram as many of my cars as possible into my showroom, batten down the hatches and lock the place up for 15 years, while I go and do a proper job. Then, when the time is right, book a couple of car transporters and have them shipped off to a classic car auction as low-mileage examples from a ‘cherished private collection’ from a ‘well-known collector’ – not that I spend time with my nose buried in auction catalogues, ever. Then, it’ll simply be a case of watching the cash register ring and ring as the bids rack up for my 32,000-mile Nissan Almera 1.5, or my ‘luxury’ Vauxhall Vectra Elite. And as for the 14,000-miles-from-new Fiat Seicento Sporting I’ve currently got tucked round the back, Heaven only knows.
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 | 61
FORECOURT.
Alfa Romeo Stelvio Trademark Alfa design
Love it or hate it, the Stelvio’s styling is pure Alfa Romeo – with a front end shared with the Giulia saloon.
Four-wheel drive
Stelvio uses same ‘Q4’ system as Giulia, defaulting to rearwheel-drive and shifting power to the front wheels when required.
Low centre of gravity
Stelvio boasts lowest roll centre in its segment, which sounds nerdy, but helps keep cornering fun.
Jon puts Alfa Romeo’s first SUV through its paces... and is suitably impressed by the What is it? This is Alfa Romeo’s first SUV – no pressure – and the Italians certainly aren’t messing around when it comes to showcasing their interpretation of an off-roader. Rather than borrowing some bits from sister company Jeep, Alfa has started afresh with the Stelvio – basing it on the platform of the recently launched Giulia saloon instead. What’s under the bonnet? For the moment there are two engine choices – a 207bhp 2.2-litre diesel, and a 276bhp 2.0-litre petrol – though lower-powered versions of each (177bhp and 197bhp for diesel and petrol respectively) will follow soon. As for the firebreathing Quadrifoglio version that caused a stir 62 | CarDealerMag.co.uk
when the car was first revealed, you’ll need to wait even longer. Unsurprisingly, Alfa reckons the 2.0-litre diesel will be the big seller, and it’s more than capable of hustling the Stelvio’s relatively dainty kerb weight around – hitting 60mph in 6.6 seconds. As with most four-cylinder diesels, its engine note can be a little intrusive – particularly at lower speeds – but it’s no worse than Jaguar Land Rover’s offerings, and perhaps even a little more refined. The 2.0-litre petrol is the sportiest option for now, with a not-unimpressive 0-60 time of 5.7 seconds and a top speed of 142mph. It’s plenty powerful enough and makes
all the right noises – Alfa has manufactured in a nice growl at higher revs – but it’s a shame no characterful V6 is available. What’s the spec like? To keep things simple, there are just three trim levels – Stelvio, Super and Business – and even entry-level cars get an array of standard safety kit, front and rear parking sensors, a 6.5-inch infotainment screen, keyless entry and 17-inch alloys. Upgrade to Super and you’ll get half-leather seats, bigger alloys and so on, while Business bundles in a few options above the entry-level car but only BIK-friendly diesel engines. Most of the usual
THE KNOWLEDGE
These are exciting times for Alfa Romeo, Damien Dally, UK country manager for Alfa & Jeep, tells Jon Reay Two new products in six months – an exciting 12 months ahead for Alfa Romeo? Absolutely – with the exception of 4C we haven’t actually launched a mainstream Alfa Romeo since 2010, now we have two coming along in the same year. Arguably, there’s never been a more exciting time for the brand, certainly in the 15 years that I’ve been at Alfa Romeo.
What are Alfa’s sales hopes for the two new cars? So with Giulia we’re looking at 3,900 cars in the first full year. For Stelvio in the first trimester – because it arrives in September – we’re looking at 1,800 cars. It’s too early to say figures for next year, but probably we’re looking at about 5,000 cars – so a bigger volume than Giulia – and the segment is growing.
Are you backing this up with investment in the dealer network? Obviously we’ve made this investment in product, but traditionally, one of the weaknesses was the dealer network. We’ve worked pretty hard on this, with a number of initiatives. One is that we’re revamping the showrooms with a whole new CI – most dealers now are dual-franchise with Jeep. Having seen what we’ve done with Jeep in the last few years, the dealers are seeing a leap of faith in terms of what we can do with Alfa. Secondly, we’re spending a lot more time on training. We’re very conscious that 80 per cent of customers who are going to be buying these cars will probably be new to the brand, and those customers really come from two areas: one will be the premium segment, but equally we’ll pull some people up from the more volume brands, and they’ll come with high expectations as they’re paying an additional premium. On the aftersales side, we’re starting to be recognised for customer experience, because good product alone is just not enough – we have to do it all.
What would you say to people who think an SUV is a step too far for Alfa Romeo? I remember when I joined Alfa 15 years ago, diesels weren’t even on our agenda for the UK. I think you have to move with the times. Firstly, most of our competitors are already there – even traditional sports car brands like Jaguar and Porsche. What I’d say to people is ‘drive it’, because it doesn’t drive like your typical SUV. When you look at the buying motivation for SUVs, comfort, technology, refinement and driving position are considered, but driving pleasure isn’t. That presents a real opportunity for us.
Which rivals do you expect to see traded in for Stelvios? We’ll be benchmarking against BMW X3, Audi Q5 and the like – I mean it’s Alfa’s first SUV, the SUV segment is really growing, but to the detriment of more traditional segments. So it’s not necessarily the case that people who look to buy a Stelvio are in an SUV already today, so I think it’s probably going to have that pull from D segment and so on too.
At first, the 124 Spider was going to be badged as an Alfa Romeo – do you think this was a missed opportunity for the brand? For a while I did. But I think now I get the decision – when you look at our brand values, all the cars – even those that are going as far away as the US – are made in Italy. For Alfa, that’s part of its DNA – even the logo itself is steeped in Italian heritage. I mean, the 124 is a fantastic car, the Abarth is a fantastic car, but having launched Giulia and Stelvio in the last couple of weeks, I completely understand the decision. Would I like to see another Alfa Spider running alongside a 4C Spider? Yes – but it has to keep within these key Alfa values.
Model: Alfa Romeo Stelvio 2.2 diesel Super Price: £38,000 (est) Engine tested: 2.2-litre diesel Power (bhp): 207 Torque (Nm): 470 Max speed (mph): 133 0-60mph: 6.6 seconds MPG: 58.8 Emissions (g/km): 127 TARGET BUYERS: SUV shoppers not willing to compromise on driver appeal. THE RIVALS: Audi Q5, Porsche Macan, BMW X4. KEY SELLING POINTS: 1. Unrivalled Italian charm. 2. Handling-focused chassis. 3. Impressively low running costs. DEAL CLINCHER: Possibly the best-handling mid-sized SUV on sale.
‘What I’d say to people is ‘‘drive it’’ because it doesn’t drive like your typical SUV.’
way it drives and looks electronic toys such as active cruise control are available too, but don’t expect VW-group levels of sophistication just yet. What’s it like to drive? From behind the modern, flat-bottomed steering wheel you’ll find a car-like driving position and a cabin that’s more driver-focused and enveloping than in a typical SUV. Where the Stelvio really shines is in the way it drives, though. The steering itself is direct, accurate and – although a little bereft of feedback – delicate without feeling over-assisted. Despite its relatively tall body, there’s very little roll around corners – something Alfa’s engineers are rightly proud of – and at 1,660kg for the 2.0-litre
petrol, it’s 100kg lighter than even the daintiest of its German rivals too. Combine those elements and you’ll find an SUV that’s as enjoyable around a set of corners as a well-sorted saloon or estate, and although the trade-off for all that composure is a relatively firm ride, it’s not uncomfortable. Refinement isn’t bad either. We’d like a touch more soundproofing, but beyond that, the Stelvio should make for a comfortable motorway cruiser too. There’s no manual option available, just an eight-speed ZF automatic – but frankly it’s so smooth and quick to change that you won’t miss rowing between gears yourself.
What do the press think? Top Gear says: ‘Alfa has done an admirable job on converting its value into an SUV package.’ Auto Express says: ‘It will provide strong competition to BMW’s soon-to-bereplaced X3, Audi’s Q5, the Jaguar F-Pace and Mercedes GLC.’ What do we think? We like the way it drives, the way it looks and even the way it’s put together. At this price point we’d like to see some characterful engine options and more sophisticated in-car technology, but compared with some rather humdrum-looking SUV rivals the Stelvio is really rather appealing. CarDealerMag.co.uk | 63
FORECOURT.
Seat Leon Cupra 300 Matthias Rabe, Seat’s executive vice-president of research and development, talks to Darren Cassey
Aside from more power and the all-wheel drive system, what else is new? We’ve made some modifications to the chassis and we’ve shortened the time between shifts on the automatic gearbox. It’s also got a nicer noise than the previous version because we changed the exhaust system a bit, which also reduced pressure. We also changed the engine mapping to sound better during upshifts, and the redesigned LED headlights are twice as powerful as before. At £30k, the Leon Cupra rivals some big guns like the Ford Focus RS and Honda Civic Type R. What makes your car stand out? For us, the Cupra is the icing on the cake – it’s at the top of the brand. It combines the design, emotion and sportiness without being too extreme. It’s also comfortable and fully functional
for family life, as well as being easy to drive. You can drive it normally or you can drive it on the race track and really have fun! How much freedom do you have to put a Seat ‘personality’ into cars that share so much with other VW Group competitors? Without access to all those platforms and components, we could not have this level of car. I think it’s the only one now that is front-wheel-drive in this highperformance sector, which I think makes the car more agile. So we share components, but we can also make our own decisions. Do you see 300bhp as the upper limit for front-wheel-drive cars? For me, I feel I have the optimum agility with the front-wheel-drive car with the locking differential
– you can really feel that it’s lightweight. But you are right, sometimes you do come to the limit of what the front wheels can handle but it also has its plus points. The all-wheel-drive car is one second faster to 60mph, but the front-wheel drive car is quicker around a track, for example. I think we’re nearly at the limit of front-wheeldrive performance, but not yet – I remember 10 or 15 years ago people would tell me 200bhp was the limit, but now we have 300! Can you see hot hatches turning towards hybridisation and electrification? We’re facing a fast-changing industry, so when I think about having a plug-in hybrid Cupra, I think ‘why not?’. But it has to be in a way that makes the car fun to drive and you have to have good acceleration. Maybe the top speed will be a little lower, but that’s not usually a problem outside of Germany’s autobahns!
THE KNOWLEDGE Model: Seat Leon Cupra 300 ST DSG 4-Drive Price as tested: £34,170 Engine: 2.0-litre TSI petrol Power (bhp): 296 Torque (Nm): 380 Max speed (mph): 155 0-60mph: 4.9 seconds MPG (combined): 39.2 Emissions (g/km): 164
What did Darren make of the car when he got behind the wheel? What is it? Say hello to the new and very mildly improved Seat Leon Cupra 300. There’s a small jump in power from 286bhp to 296bhp, but the more noticeable figure is the increase in torque, now 380Nm from 350Nm. The other major talking point is the move from front-wheel drive to four-wheel drive for the estate. What’s under the bonnet? To keep it simple, there’s only one engine with one power output. It’s a 2.0-litre TSI unit that makes 296bhp and 380Nm of torque. 64 | CarDealerMag.co.uk
What’s the spec like? Driver-focused aids include a launch control mode for automatic, four-wheel drive cars, while the electronic stability aids can be fully switched off if the driver desires. On the inside, the Leon Cupra 300 gets a sporty, flat-bottomed Cupra-specific steering wheel, sports seats clad in black Alcantara and an infotainment system with an eight-inch touchscreen, DAB radio and mobile phone connectivity. Bucket seats are a £1,290 option, while black leather sports seats can be specced at a cost of £1,370.
What’s it like to drive? We spent the bulk of our time in the four-wheel-drive variant, which offers extra security when accelerating out of corners but is far less characterful than the front-wheel-drive version. What do the press think? The London Evening Standard said: ‘It’s fast, roomy, practical, wellequipped and, now, faster than ever.’ What do we think? As a fun family car, the Seat Leon Cupra 300 is hard to beat.
TARGET BUYERS: Young-ish car enthusiasts looking for performance and practicality. THE RIVALS: Ford Focus RS, Volkswagen Golf R, Honda Civic Type R. KEY SELLING POINTS: 1. Looks great. 2. Super-practical. 3. Good kit levels.
DEAL CLINCHER: VW build quality in a more stylish package and great driving dynamics make it an excellent all-rounder.
Volkswagen Golf
Product manager Joe Laurence has high hopes for tweaked compact, discovers Laura Thomson
Why did VW upgrade the Golf instead of producing a new generation? The Golf’s iconic. It’s always been an evolution, from Mk1 right through to Mk7, so it didn’t really need a full revamp, just a tweak, new alloys, new LED headlights front and back. I think the facelift keeps it where it needs to be. Having been with the model a couple of years, how have you seen sales? They’ve been pretty consistent. I think it was around 60,000 in 2014 – when I inherited the role – 62 or 63,000 in 2015 and then in 2016, year just ended, it was the first year that we outsold the Ford Focus. We sold about 65,000 Golfs last year. It was a really nice end to 2016. The emissions scandal didn’t affect sales at all then? It had a very slight dip early on, in September
2015, so probably for the rest of 2015 and the first couple of months of 2016 we enhanced our offer to stay competitive, but we finished last year I think five per cent down. We stayed competitive. Have the sales for this last year boosted your expectations on how the facelifted Golf will be received? Definitely. If, in its essentially last year before the facelift, it can outsell the Focus, then that puts us in a great position to start 2017 with the new Golf. We’ve absolutely started on the front foot. Gesture control and Apple Car Play are elements that have been seen in bigger models. How do you think this will go down in the C–segment? I think it’ll go down really well. To have gesture control on a 20 or 25 grand Golf is quite groundbreaking and I think it’s a really good nod
to where the technology’s going – a real big step in the direction to driverless. What are your predictions for the new powertrain? We expect a significant proportion of the new Golfs we sell to feature the Evo engine. We’re really excited about it, and, judging by the responses we’ve heard about it already, it’s really good. The VW Group is now the top automaker – how has this been received? It’s really positive news. We’d heard late last year that we were close, but it wasn’t something that we were gunning for, and we weren’t going to push out volume and build the cars just to win an award, so it was genuine demand. It was just a nice surprise to start the year with, which is how it’s been received internally.
THE KNOWLEDGE Model: Volkswagen Golf SE Nav Price as tested: £21,500 Engine: 1.5-litre TSI Evo Power (bhp): 148 Torque (Nm): 250 Max speed (mph): 134 0-60mph: 8.1 seconds MPG (combined): 55.4 Emissions (g/km): 114
... and Laura tries the facelifted Mk7 Golf for herself What is it? While subtle changes can be seen throughout, the Golf retains the iconic styling cues and driving feel motorists know and love. What’s under the bonnet? The new 48bhp four-cylinder turbocharged petrol engine, the 1.5 TSI Evo, can be coupled with the newly developed seven-speed DSG automatic transmission. Otherwise, the current range remains. Also new is the seven-speed dual-speed gearbox transmission, which will gradually replace the six-speed unit.
What’s the spec like? Infotainment systems throughout the range have been updated, with new designs, larger screens and higher resolutions. The stand-out system is the Discover Pro model. In what is a first for the compact segment, it features gesture control. What’s it like to drive? The 1.5-litre TSI Evo powertrain is superb in its own right but improves with the new seven-speed DSG transmission. Power is plentiful at low revs and wanes only slightly in the engine’s upper limits.
What do the press think? The Telegraph says: ‘Volkswagen’s devilishly desirable hatchback just got better.’ What do we think? Subtle updates are just what the Golf needed, bringing it in line with and beyond other vehicles in its class. With low prices – lower than the outgoing model – and a wide variety of options, it’s easy to see why it’s Europe’s most successful car. In this latest guise, and with an expanded range of powertrains, it’s unlikely to lose this accolade soon.
TARGET BUYERS: Families and daily drivers. THE RIVALS: Ford Focus, Vauxhall Astra Audi A3. KEY SELLING POINTS: 1. First in class to use gesture control. 2. New petrol engine. 3. 1.5-litre TSI engine is powerful and fun.
DEAL CLINCHER: Its price is lower than that of the outgoing model. CarDealerMag.co.uk | 65
FORECOURT.
Mercedes E-Class Coupe Plenty of space
Start your engines
Engines range from a 2.0-litre diesel to a 3.0 litre V6.
Raked roofline doesn’t affect headroom as much as you’d think.
Wheel appeal
Cars ride on 19-inch alloys as standard.
Good performance, decent economy and a pillarless, raked design... Jack finds a lot to What is it? Here’s the latest car to slot into Mercedes’ everexpanding line-up – the E-Class Coupe. Coming as a smaller version of the decadent S-Class Coupe but larger than the C-Class Coupe, it aims to give drivers all the luxury associated with the German manufacturer’s highest-specification cars but with a sleek, raked-back design. Inside, the E-Class Coupe uses the same infotainment system as the standard saloon but that’s no bad thing. However, there are some touches that aren’t included in the E-Class. The vents, for instance, are completely new in design and they help to give the interior a bespoke look. The exterior is a real triumph. Pillarless and raked, it’s exactly what you want in a large, executive coupe. 66 | CarDealerMag.co.uk
What’s under the bonnet? We tested the E 220d, which is likely to be the most popular engine thanks to its decent performance and good levels of economy. Make no mistake, it’s quick enough, hitting 60mph in a respectable 7.2 seconds. It should also return 61.4mpg on a combined cycle, meaning that it shouldn’t cost the earth to fuel. Driven to the rear wheels via Mercedes’ latest ninespeed automatic gearbox, it’s a fine engine – although in truth we’d be tempted to wait until later in the year for when the larger E 350d arrives, as it’ll truly offer the best compromise between performance and economy.
What’s the spec like? There’s just one trim – AMG Line – but that does help to keep things simple. All cars come with large 19-inch alloy wheels plus LED headlights and tail-lights, which help give the E-Class a distinctive visual appeal. Prices for the E 220d Coupe start at £40,135. For that, you get parking sensors and a reversing camera, as well as an 8.4-inch infotainment screen with satellite navigation. Though it’s expensive, we’d be inclined to pay £1,495 to upgrade that system to Mercedes’ premium Comand version, which replaces the standard screen with a large 12.3-inch unit. For another £495 on top of that,
THE KNOWLEDGE
Marijan Celig, head of product management for the E-Class Coupe, chats to Jack Evans about the new car With so many crossovers and SUVs on the market, how important is it for Mercedes-Benz to keep making coupes? We have a long history building coupes. We started with the E-Coupe in 1958 – nearly 60 years ago. We also have a long tradition with the S-Class, too. We recognise that we have customers – especially loyal customers – who are interested in this shape of car. How important is design in the overall process of bringing a car to market? It’s the most important thing when you buy a car – especially in the coupe segment. Design is the first thing you think of when you’re asked ‘why did you buy this car?’ The coupes are a bit of a speciality, and you’re showing with them a special way of life, or a special lifestyle. They’re often more expensive than the four-door sedan equivalent, but people buy them because they want them, rather than because they need them. Is this car targeted at a slightly different age group? Are older people traditionally going for these cars? We see a lot of self-employed people choosing our coupes. They want a special design on their car, and they are watching out for a car which represents their inner personality. We have a lot of loyal customers, for sure, but I think we can conquer a lot of people from the saloon segment and customers from other companies, too. The car represents a good offer – it looks great, but there’s lots of space in the car, too. We have around 4.6 centimetres of extra rear legroom compared with the previous car, and when you put it up against the BMW 6 Series it has 14cm more room. If you have taller friends they
may still struggle of course, but you have to remember it is a coupe after all. How important is economy when you’re building a new car? It’s very important, and it’s something we think about each and every time we build a car. Our environment is where we live, and we have to look after it. When we build a car, we want to build it economically and in an environmentally-friendly way. This applies to the whole process, from start to finish. It’s important to be efficient, but it’s not as important as when you’re making a saloon. We have to ensure that the coupe remains a car that is fun to drive. So it’s more about the experience of driving rather than just economy? Yes, it’s not our first topic to have an efficient car here. It is good economy-wise – especially with the 220 diesel where we have 106g/km CO2 – which is tremendous. People will buy the car because you get both – a sporty drive and good economy. Will we be getting an AMG version of this car? Perhaps. We are thinking more of an entry version, so an E 43 rather than an E 63 – but we have a plan. As we know, the coupes are the sportier cars in the range, so we could see it being given the 43 engine.
Model: Mercedes E220d Coupe Price as tested: £40,135 Engine tested: 2.0-litre turbocharged diesel Power (bhp): 191 Torque (Nm): 400 Max speed (mph): 149 0-60mph: 7.2 seconds MPG (combined): 61.4 Emissions (g/km): 119 TARGET BUYERS: Those who want to have the style and quality of the larger S-Class in a smaller body shape. THE RIVALS: BMW 6-Series, Audi A5, Jaguar F-Type S. KEY SELLING POINTS: 1. Premium cabin quality. 2. Relaxing driving experience. 3. Good levels of standard equipment. DEAL CLINCHER: It’s a fine-looking car, and one that’s fine to drive, too.
‘People will buy the car because you get a sporty drive and good economy.’
be impressed by Mercedes will add a second 12.3-inch display, creating a truly widescreen viewing area. It’s an extra that completely transforms the inside of the car, and one that we’d pick in a heartbeat. You also get heated front seats and steeringwheel-mounted touchpads included, adding to a comprehensive equipment list. What’s it like to drive? Large luxurious coupes such as the E-Class have a difficult job on their hands. They need to be cossetting and relaxing to drive but involving and sporty when you want them to be. The E-Class Coupe actually does an admirable job of ticking the vast majority of those boxes. On standard springs, it rides very well. Yes, at
slower speeds it can be a touch jostling, but when up and running it soaks up bumps in the road impressively. The 2.0-litre diesel engine under the bonnet is a crucial part of the Mercedes-Benz range, and you can see why. It’s really very refined and settles down nicely at cruising speeds. There are a few grumbles at lower speeds and around town, but that’s to be expected of a small-capacity diesel. A wider rear track than its predecessor does help the E-Class Coupe corner nicely, although go into the bends too hard and it will be inclined to understeer. That’s understandable, though – it makes no claim to be an out-and-out sports car.
What do the press think? Pistonheads said: ‘The end result is a compelling package, one that brings just the right amount of extra style and dynamism to what was already an excellent saloon.’ The Irish Times said the car ‘manages to be elegant without being too flashy’. What do we think? The E-Class Coupe is just as smart to drive as it is to look at, which means that it should be an immensely popular car. Yes, it may not handle as keenly as sportier rivals, but for comfortable cruising it’s hard to beat. A good range of engines means there’s something for everyone, too. CarDealerMag.co.uk | 67
FORECOURT.
Volvo V90 Cross Country James Fossdyke chats (briefly) to Per Lenhoff, senior project manager for active safety at Volvo
When will we see a Volvo autonomous vehicle on the road? It’s hard to say, because we will not compromise safety. We are doing a research test in Gothenburg with 100 families, where the car is autonomous but it is supervised by the driver, and it all depends on what we learn. We will plan step by step from there. What are you hoping to learn from this test? We are hoping to learn about the interface between a driver and his or her car, but we are being careful all the way. We are really focused on safety – the Volvo way is safety first.
Do you see autonomous cars coming to market in the near future? I think it will be introduced step by step. It will take several steps, but full autonomy is the biggest of all. When you move to full autonomy it’s a huge step forwards from cars with driver aids. Will you be among the first to bring full autonomy to market? We realise we need experience in this field, because this is cutting-edge technology. Of course, we are confident we can achieve this and bring out an autonomous car, but it’s really hard to say exactly when that will be.
THE KNOWLEDGE Model: Volvo V90 Cross Country D5 Powerpulse AWD Price as tested: £43,400 Engine: 2.0-litre turbodiesel Power (bhp): 232 Torque (Nm): 480 Max speed (mph): 140 0-60mph: 7.5 seconds MPG (combined): 53.3 Emissions (g/km): 139 TARGET BUYERS: People who want 4x4 capability without the SUV driving dynamics or fuel consumption. THE RIVALS: Mercedes-Benz E-Class All-Terrain, Audi A6 Allroad, Skoda Superb 4x4. KEY SELLING POINTS: 1. Decent all-wheel-drive performance. 2. Lots of space. 3. Drives better than almost any SUV.
DEAL CLINCHER: There’s almost nothing it can’t do – few cars make better all-rounders.
James finds that the Cross Country treatment works well on the spacious V90 What is it? We’re now familiar with the concept of jacked-up, soft-roading estate cars, but the craze only really set in when Volvo launched the V70 Cross Country in the 1990s. Fast-forward to the present day and the Swedish brand is now offering the Cross Country treatment on most of its estate and hatchback models. The latest to undergo surgery is the stylish and spacious V90. What’s under the bonnet? As with the basic V90, you get a choice of two diesel engines. Both 68 | CarDealerMag.co.uk
are four-cylinder turbocharged diesel units and both come with an automatic gearbox. Where the Cross Country differs, though, is that even the basic D4 model comes with four-wheel drive as standard. What’s the spec like? The standard V90 costs just shy of £35,000, and the Cross Country variant commands a premium of almost £5,000, but an asking price of £39,600 isn’t bad at all for such a well-equipped car. All the usual goodies, such as satellite navigation, climate control and heated seats,
are standard, while better-kitted-out cars add toys such as electric seats. What’s it like to drive? The Cross Country feels little different to the standard V90 on the road. If you concentrate really hard, you might find it a touch more prone to lean through the corners, and you may feel the suspension is a mite less pliant over the more severe bumps. Under normal conditions, though, you won’t notice the difference. No V90 boasts 911-worrying handling characteristics, and the Cross
Country is just as nice a place to be while on the motorway as its less rugged-looking sister. What do the press think? Auto Express wrote: ‘The existing V90 is a capable, refined and comfortable cruiser, and this Cross Country version only goes to better these characteristics.’ What do we think? The V90 was already an accomplished all-rounder and the off-road capability has only served to make it more complete.
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CarDealerMag.co.uk | 69
FEATURE.
DOCTOR’S ORDERS Dr Ian Robertson sits on the BMW Group board and is arguably the most senior Brit in the car industry. At the launch of the firm’s new £132k M760Li, James Baggott managed to grab him for an unprecedented 40-minute chat about the firm’s new hot 7 Series, Brexit and the future of the brand
B
ehind us, V12 engines are on song, pounding around a sun-baked track in Palm Springs, California. Dr Ian Robertson, the man many have labelled ‘the most powerful Brit in the car industry’, is sipping black English tea and in good form, despite just jetting in long-haul from Germany on the company’s private jet. His eyes have the red tint of a man who hasn’t spent the flight drinking champagne, but rather used the 11-hour trip as some bonus time to pore over figures. Robertson, who was awarded an honorary doctorate of science in 2011 by Aston University for outstanding service and achievements in business and engineering, is in charge of global sales and marketing for the German marque and is the brains behind the marque’s ‘i’ electric car brand. He’s also overseen a consistent march up the sales charts for the group’s cars for several consistent years. Relaxed in an M-branded polo shirt with an Austin Reed desert scarf loosely wrapped around his neck, he looks more PR man than BMW board member. A Welshman, originally hailing from Shropshire – ‘My bank is still in Wales,’ he proudly boasts – he has a distinct air of the politician about him. His answers are well thought through and vague enough not to be committal on the tough subjects, while positively gushing when he needs to be about his own products and company. We’re in California to try the brand’s M760Li – a V12-engined 7 Series that will cost £132k and sell just 100 units a year in the UK. It’s a juxtaposition compared with the electric, eco-friendly i models he is usually pushing,
70 70 | CarDealerMag.co.uk | CarDealerMag.co.uk
�
The 7 Series is our flagship car and there should be a pinnacle vehicle within that flagship. It must capture the best of the best. CarDealerMag.co.uk | 71
FEATURE.
which must be a tough sell. Doesn’t that muddy the messages? ‘No, I don’t think so,’ he quickly retorts. ‘We had a very good year on 7 Series last year. It was 30 per cent better than the year before – and that was a record year. The V12 segment is small – it’s a few thousand vehicles in a car market of 19 million-plus. But the 7 Series is our flagship car and there should be a pinnacle vehicle within that flagship. It must capture the best of the best.’ But, as lovely as the M760Li is, it’s not really the car I’m interested in. I’m far more interested in hearing Robertson’s take on the bigger issues affecting the car industry at the moment. I quickly move the conversation away from the luxury saloons that are spreading rubber across the fry-an-egg hot tarmac a few yards behind us on to tougher subjects: tougher subjects such as Brexit. BMW Group might be as German as Oktoberfest, but it has an incredibly large manufacturing footprint here in Blighty. In Oxford, 4,000 employees build thousands of Minis every month and, just two years ago, BMW invested a further £750m in the set-up there, taking its investment to nearly £2bn. The group also makes engines at Hams Hall and has an entrenched production facility for Rolls-Royce at Goodwood, where a further 1,500 employees work. With investments such as this, I wonder if Robertson was invited to a special tête-à-tête with the prime minister, like Renault-Nissan CEO Carlos Ghosn was. ‘I have not had a meeting with Theresa May,’ he explains. ‘I have not been invited to one either. But I have met many ministers recently and they have been reaching out to businesses like ours. ‘Brexit was a surprise to us. At the moment, there is some uncertainty. If I look at our investment profiles in the UK, we have recently invested in Mini in the last two years – it is in the early part of its new cycle – and we have similar positions with our engine plant and in RollsRoyce, so in many respects we now have time to see how things develop. ‘We made our position clear in the run-up to the referendum. But the referendum is behind us, the result is known and now we have to find the best way forward.’ Robertson wrote to all UK employees ahead of the EU referendum laying out the company’s reasons as to why it believed leaving the European Union was a bad idea, but we all know which way that vote went on June 23. The BMW chief is clear that the UK remains a key market for BMW and that he sees ‘no reason’ why that would change post-Brexit. However, he still wants politicians to resolve trade agreements as quickly as possible so that they can get on with business as usual. ‘The solutions and political answers need to be found,’ he explains, still stirring his black tea. ‘We have a period of uncertainty and that means we 72 | CarDealerMag.co.uk
are probably going to be more flexible in things we have done in the past. We hope that there is a trade duty-free environment, but we’ll see. ‘The discussions are now in the hands of the politicians. We’d like to see clarity and that speed of clarity is important. It’s not just a Theresa May issue, it’s a Brussels issue and the other 27 members issue. I really hope that when all things are considered, the propositions, proposals and solutions are in the best interests of everyone.’ Listening back to the interview while writing this piece I have to rewind those sentences a few times. Did he commit to manufacturing in the UK or didn’t he? It’s that politician’s answer that says so much but so little at the same time, so cleverly non-committal. A little later on I ask him again – is BMW committed to the UK? ‘There’s no reason to change that,’ he says, again somewhat cryptically. ‘We will see what happens as things develop. ‘But we are at a very early point in the cycle of this investment, so we have time.’ Clearly, BMW is playing a waiting game. While Robertson explains that it’s the brand’s strategic plan to have manufacturing sites where sales are strongest, it’s obvious that if trade agreements don’t go its way, BMW may still change its plans.
Ian Robertson sees the industry changing more in the next 10 years than it has in the past 100
S
o to more comfortable ground – the brand’s sales success. Last year, BMW and Mini surpassed 250,000 units in the UK for the first time, clocking up 251,577 sales, while BMW was once again the number one premium brand. It beat Audi into second place, selling 5,289 more models, and Mercedes into third, beating it by 12,765 units. So just how important is it to be on top of the podium? ‘It’s not our number one focus, but it’s a subject we often get asked,’ he says. ‘Would we stretch for the final sale and the ultimate volume at the expense of everything else? No, we wouldn’t. ‘We as a company have a very clear strategic goal and that is a return for our shareholders. Of course it is nice to be number one, but it is not our biggest driver.’ However, he agrees that the strong UK presence and its dominance of the sales charts is not something he’d like to give up any time soon. He says: ‘We sold a quarter of a million units for the first time last year. We have a very strong position in the UK and that isn’t recent, that’s been over many decades now. The customer base there is very loyal and we are developing products with the UK in mind. For example, many of the development phases of the new 5 Series were done in the UK.’ That rise in sales came at a time when the industry was awash with scandal. Fellow German manufacturer Volkswagen was embroiled in ‘Dieselgate’ and the toxic fog was in danger of engulfing other makers, with some experts even predicting diesel sales would fall across the board. BMW has a strong diesel line-up and was one
BMW employs thousands of people in the UK of those makers most at risk of consumers turning their noses up at the fuel – so did it affect the group? ‘No, we didn’t see a drop in sales,’ explains Robertson. ‘Governments around the world took our vehicles and tested them and we were always where we were supposed to be. Some other manufacturers didn’t enjoy that position...’ But it isn’t emissions scandals that concern Robertson these days. No, now he’s focused on the brand’s future – and its next 100 years.
”
We made our position clear in the run-up to the referendum. But the referendum is behind us, the result is known and now we have to find the best way forward.
The BMW M760Li is powered by a 6.6-litre twin turbo V12 engine boasting 601bhp and 800Nm of torque ‘We have enjoyed a lot of success,’ he explains, checking his Omega watch as our time together goes on. ‘We are 100 years old – not many companies get to that age. I think we have an exciting period in this industry right now, as I think every element from the design to the manufacturing of products to sales, to the ways customers enjoy our products is going to change. ‘It will probably change more – and this is not a sound bite – in the next 10 years than it has in the last 100. One thing BMW has always done is
push the envelope of technology and innovation. We are focused on looking forward. One of the success factors of BMW is that we don’t celebrate the past, we challenge ourselves more and more. We’d rather say that was a good result but what could we have done better? ‘So now we are focused on the technology race and the next big steps – digitalisation, autonomous driving, electrification and hydrogen fuel cells. The excitement in the company right now is the change that is coming through the
industry and we want to be out there in front.’ Bold words, and words that come from a man who has already spent 38 years in the car business. Robertson certainly doesn’t look to be slowing down any time soon. In fact, even when he’s back in the UK he still takes the time to randomly visit dealers to check up on the service they’re giving to customers. Does he get recognised? ‘Not all the time,’ he chuckles. And what happens when they don’t CarDealerMag.co.uk | 73
FEATURE.
BMW sees the M760Li as its pinnacle vehicle within the flagship 7 Series and will sell 100 of them each year in the UK at a cost of £132,310 each
”
My message to dealers is a simple one: Prepare for change, because it is going to happen. live up to his expectations? ‘I am quick to give them feedback,’ he adds, with a wry smile. That said, he still sees dealers playing a key role in the car sales process, despite moves to take sales online. ‘I talk to dealers all around the world all of the time and I say we are in a change process,’ he explains. ‘I firmly believe the dealer is the backbone of our relationship with our customer and that is the situation going forward. ‘Having said that, the roles and responsibilities are going to change. Look at a simple proposition: 10 years ago, customers went into a dealership three or four times before they bought a car. Now maybe it’s one. That’s because customers are researching their cars online and getting their decision process done in advance. ‘The role of what a salesman used to be is not the role that he will have in the future. We implemented product geniuses three-and-a-half years ago and across the world they are bringing more customer satisfaction and value, rather than what we had in the past where there was a position between a customer and salesman that wasn’t ideal. The roles will change.’ The biggest change he sees will be in the 74 | CarDealerMag.co.uk
workshop – an area he’s highlighted as ripe for a shake-up. ‘If I look at aftersales I see big changes there,’ he says. ‘We, as an industry, have been trying to refine this process which a customer probably never wanted. If I buy a car I want it to run, and I want it to run when I want it to run – do I want to go and have it serviced? Not really. ‘So we will see the invisibility of service in the future. Which means the way in which cars are treated will change – some will be over the air, some will be mobile servicing. Right now I can open the diagnostics for any BMW, anywhere in the world, so why does a customer have to queue up at a dealership in the morning? The roles in the aftersales area will change. But those dealers that are moving forward with the success they have enjoyed will still have that success but they will be doing different things. ‘My message to dealers is a simple one: Prepare for change, because it is going to happen.’ And with that, he drains the final cold swills of tea in his cup and gets up to shake my hand. His personal PR woman has been trying to interrupt me for the past 10 minutes and I know I’ve already got away with far longer than I should
have. Robertson has to be back on his private plane, Munich is calling, as are probably many more sales reports. I can’t resist one last question, though: Does he love his job? ‘Absolutely,’ he says, launching into an answer that makes his time-conscious companion raise her eyebrows once more. ‘I’ve been in this industry for 38 years and I’ve worked through some difficult times. In the UK I can say I saw the demise and then I played a small part in its recovery. I am immensely proud of this industry. It is truly global, there is never a dull moment, the competition is ruthless and the political environment is extremely challenging. ‘That is the excitement. If you don’t want that, if you don’t want that constant challenge, if you don’t want the “I wasn’t expecting that” conversation, then you’re in the wrong industry. I can look back on my almost 40 years and say there has never been a dull moment. ‘Of course, there have been some low points, but the next day they started on the way up again and that’s the fun of it. I wouldn’t have it any other way.’ And you know what? I’m inclined to agree with him.
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FEATURE. FIRSTDRIVE
BMW M760Li James Baggott finds the new Beemer is aimed at people with a split driving personality, but that’s not to say it’s a bad thing. Far from it, in fact...
V12 engine
The M760Li has a whopping 6.6-litre engine under the bonnet but don’t expect an all-out M car.
What is it? Those of you hoping this was BMW’s M7 need to look away now. Although this may be the fastest BMW the German firm has ever made, if you’re after a fire-breathing, full-blooded M car, the M760Li will leave you a little disappointed. You see, it may have that fabled tri-colour badge on its boot, but this isn’t cut from the same cloth as an M2, M3 or M4. BMW says that’s because this is a car for buyers with something of a split personality. One moment they may be keen on a country road assault so they can enjoy the glorious V12, the next they might want to kick back and relax in the massaging seats and just cruise along. What’s under the bonnet? BMW made a lot of noise at the launch about it being 30 years since it installed a V12 engine in its 7 Series. And since that first unit arrived in 1987, the 12-cylinder lump has doubled in power. The 2017 6.6-litre unit now boasts a whopping 601bhp, a staggering 800Nm of torque and is capable of propelling it to 60mph in just 3.6 seconds. That gives it the impressive title of the fastest-accelerating BMW ever – not bad for a model that’s not even a ‘proper’ M car. All that 76 | CarDealerMag.co.uk
Acceleration
This is the fastestaccelerating BMW ever made – hitting 60mph in 3.6 seconds.
grunt does mean you’ll pay at the pumps; the M760Li will return 22.1mpg and emits 294g/km. What’s the spec like? At £132,310, buyers would expect to get some goodies, and fortunately they do. Lightweight 20-inch alloys, a Bowers & Wilkins sound system and Car Play are included, as is an Advanced Parking system, adaptive LED headlights, a headup display and massaging seats. There’s even rear-seat entertainment and a panoramic glass sunroof. How very generous. Naturally, there’s an extensive options list. Executive lounge seating to make rear passengers even more comfortable, night vision and BMW laser headlights are just a few of those you can tick.
What’s it like to drive? The BMW is a true Jekyll-and-Hyde car, with distinct personalities behind the wheel. We tried the M760Li on the track first. Although the long, sweeping bends and snooker-tablesmooth surfaces weren’t going to show off the car in anything other than the best light, it was incredibly swift for such a lump. That V12 makes a pleasing sound, and while there may be some body roll it’s not too intrusive and, for a car of this size, actually rather impressive in the way it’s kept under control. It’s all helped by four-wheel drive that has a rear-wheel drive bias when it’s needed. The steering is a little light in the comfort setting, though, especially for track work, but flick it into sport and it’s far better.
Owners
Buyers in the UK and the US will predominantly drive themselves – in Asia they’ll all be driven by chauffeurs.
THE KNOWLEDGE Model: BMW M760Li xDrive Price as tested: £132,310 Engine tested: 6.6-litre, twin turbo V12 Power (bhp): 601 Torque (Nm): 800 Max speed (mph): 155 (189mph M Driver Package) 0-60mph: 3.6 seconds MPG: 22.1 Emissions (g/km): 294 TARGET BUYERS: In the UK, businessmen who like to drive themselves will account for most of the sales. THE RIVALS: Audi S8, Porsche Panamera Turbo, Mercedes S63. KEY SELLING POINTS: 1. It’s the fastest-accelerating BMW ever made. 2. It’s luxurious and stately. 3. It’s the ultimate 7 Series. DEAL CLINCHER: For some people, nothing less than a V12 will do.
Technology
It’s packed with technology – including Apple CarPlay – but it costs an eye-watering £132,310.
What do the press think? Auto Express gave the big Beemer four stars, saying: ‘Its handling abilities will surprise you given the sheer weight of the package, although the V12 engine’s gentlemanly approach to performance is slightly at odds with the “fastest ever BMW” tag – it just doesn’t feel it.’ However, PistonHeads was quite happy with it, saying: ‘Engine response is mighty, the turbo V12 able to hold a high gear and use the torque but also happy to rev out more than you’d expect of such a sizeable lump.’ What do we think? For petrolheads, the fact that BMW perseveres with a V12 is a revelation. In a world where
Luxury
The interior of the BMW is luxurious and comfortable – there are even reclining, massaging seats in the back.
‘It’s great fun to drive, sumptuously luxurious and wonderfully relaxing when you want it to be.’
downsizing is the buzzword, it seems hard to believe that a manufacturer would launch a 6.6-litre petrol-drinking lump. Although the market for it will be small, we’re still very glad that it’s done so. Okay, so this might not be the M7 that many performance BMW fans crave, but it’s as close to it as we’re going to get. It’s great fun to drive, sumptuously luxurious and wonderfully relaxing when you want it to be – and all in all, a very competent and exciting 7 Series indeed. [CD] CarDealerMag.co.uk | 77
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FEATURE.
QASHB MARKING A DECADE OF SUCCESS FOR
It was the new car – and the whole new concept, in fact – that changed Nissan’s fortunes and paved the way for an impressive era of success. Andrew Evans goes on a rather special road trip. 80 | CarDealerMag.co.uk
I
t’s rare to encounter a vehicle that is truly revolutionary. By and large, car manufacturers know what sells well and make it. Creating something entirely new is a risk that few of them take – one only has to look to the Geneva Motor Show to see that. At the start of the century, Nissan was pretty much ambling along in Europe. It was far from a company in a crisis – the Micra supermini was
doing well for younger and older drivers after an update, the X-Trail and Patrol were taking their fair share of the rural pound and a recent ‘Z’ car revival in the shape of the 350Z gave it sporting credentials. However, its bread-and-butter family offerings were languishing badly. The Primera was crumbling as it lost its early 1990s identity, and the Almera had been rapidly outclassed by huge leaps forward among rivals. An attempt to
PICTURES: JON REAY
”
The car became the first Nissan to enter the annual top 10 sales charts in nearly a quarter of a century
HBACK
NISSAN’S ALL-CONQUERING CROSSOVER
latch on to the car-based MPV market that future partner Renault had created with the Scenic, in the form of the Almera Tino, had not gone well either, while the Serena was widely derided as the slowest-accelerating car on sale at the time. In short, the mid-Noughties saw Nissan needing a serious boost to its mainstream competitiveness, and the solution wasn’t to reinvent its old models but to pioneer a wholly
new market sector. Tapping into the desire for a high-riding lifestyle vehicle but without the overbearing size, post-fuel price protest thirst and high purchase price, Nissan created the Qashqai. No bigger than any other typical C-segment hatchback in terms of footprint and powered by the same frugal engines, the Qashqai was a huge risk for Nissan but one which, on its 10th birthday, looks to have been inspired.
With year-on-year sales growth, the sectordefining car became the first Nissan to enter the annual top 10 sales charts in nearly a quarter of a century. With a pair of Qashqais at our disposal – one a first-generation car and the other fresh off the production line – we visited Nissan dealerships up and down the country to find out why the car has been the success it has. CarDealerMag.co.uk | 81
FEATURE.
D
ay one of our voyage through the Qashqai’s history starts on the banks of the Clyde in Glasgow and at a rather striking Nissan dealership. Macklin Motors’ Nissan Glasgow Central is an almost-brand-new site that can be seen from the neighbouring M8 thanks to its tower, which has seven storeys above ground and one floor below, and which seems to be almost exclusively packed with Qashqais. Alan Simpson, new car sales manager at Macklin, explains: ‘We still have people coming in off adverts, but we’ve had a lot of people due to the fact that they can see the tower and they’re wondering how it works, coming in for demonstrations. ‘We do handovers in the tower, too – we put the customer’s vehicle in the tower and let them bring it down to give it that wow factor. It’s a landmark for us here – it’s something a bit different and looks absolutely fantastic.’ The Macklin tower and the Qashqai have an almost symbiotic relationship, where sales of the car drive the creation of architectural showpieces such as the tower, and, in turn, they’re used to sell the car. It’s a positive feedback loop that almost beggars belief – the Qashqai can’t surely be that big a success? But Simpson says: ‘The Qashqai has been a significant profit opportunity for dealers and for Nissan, and it’s made a great difference. ‘Qashqai is the best-selling vehicle we have in the range now – with about 60 per cent of our sales both at retail and from a Motability point of view. A lot of customers really like the accessibility of the vehicle. ‘Qashqai will be the model that Nissan gets recognised for. Many years ago it was Micra, and if you’d asked people what makes them think about Nissan it would have been Micra, but now it’s Qashqai. ‘It’s a very significant model. I’ve been selling Nissans for a long time now and it was the first car that was really different. For me personally it took the sales levels from very average to above average, so for me it was significant!’ With our two Qashqais sitting in the car park it’s hard to see the significance. Our new Tekna model looks handsome enough, but it’s one of a swathe of similar cars available and the older car, an entry-level Acenta, is almost bland by comparison – but then with a million sold it’s easy to overlook what a groundbreaking vehicle it was. Simpson notes: ‘The original reception was great. It looked different – a lot of people liked it for a few different reasons, from the looks of the car to things like how easy it was to get in and out of. We were selling things like the Primera before, which were pretty low down, and it brought a lot of people in to see it. ‘When you look at the current Qashqai, the looks are fantastic and it makes a lot of difference to the vehicle. The competition began to realise that there was a market there and Nissan had captured it. Everyone else started to jump on to 82 | CarDealerMag.co.uk
the bandwagon and it was time to freshen the car up – it was still very good but it needed to stay ahead of the competition.’
I
t’s a short trip across Scotland to our next destination – albeit one made longer by motorway closures intended to improve them – but it gives us a little time behind the wheels of our Qashqais to appreciate their finer points. While the newer and higher-specification car is notably more technologically advanced (and, as a diesel, more frugal), the two do share the same high driving position and car manners that make the motorway and its diversions a breeze. It’s not long before we’re at our second stop, near Edinburgh Airport. The next dealership photographer Jon and I will be calling at is Eastern Western Edinburgh, a low-slung building under the airport’s flight path – no tower here! Despite diversions, we’ve not had that much time with the Qashqais so far, so we’re still looking for an outside perspective. John La Trobe, dealer principal, explains: ‘People like that SUV/4x4 look, so it looks really appealing. The packaging inside is spacious, so it’s roomy enough for a family, yet it’s not a particularly large vehicle – it’s no larger than a Focus or an Astra. It looks a lot cooler but it doesn’t cost any more to run, so you get the looks, the design, the space but without any downsides. ‘The convenience features that make the car so easy to use day to day, particularly in an urban environment, are massively appealing to the customer. To have usable functionality like that but in a car means that the Qashqai hits the mark with the way consumers think today. ‘Nissan captured the imagination of what the future family car was going to be all about 10 years ago, and has evolved it to become even better since. Customers absolutely love them.’ What’s more, the Qashqai sold the Nissan brand itself to Eastern Western. La Trobe continues: ‘When we took the brand on at the end of 2010, Qashqai was a huge part of the success that drew us to the franchise. ‘It’s really been a phenomenon. The previousgeneration Qashqai was remarkable in that it grew sales in every year of its lifecycle, even its last year, and the new car that came out in 2014 took it to the next level again. ‘Nissan wasn’t content to be complacent and probably knew that a lot of competitors were working on products to take Qashqai on, so it needed to keep pushing forward. Despite being a booming segment, it’s still number one – it’s the original and the best!’
”
It’s a landmark for us here – it’s a bit different and looks absolutely fantastic
Macklin Motors has something pretty unusual
Alan Simpson, new car sales chief at Macklin
A
s we head away from Edinburgh to Sunderland, we get a chance to truly try out Qashqai’s fabled road manners. The roads from the Scottish Borders into Northumberland provide a lot of fun, and both of our cars – the older of which is now affectionately known as ‘The Blob’ in homage to its registration plate – are willing companions.
See that reg plate? That’s why we call it 'The Blob'! Andrew in full flow at Lookers, Leeds
NISSAN QASHQAI (J10) 2007-2014
Design Penned at Nissan’s London design studio, the Qashqai’s looks were a revelation in 2007 compared with its lumpen predecessor, the Almera. Technology Our entry-level ‘Visia'-spec car feels basic today, but a combination of standard air con, Bluetooth and electric windows was rather generous 10 years ago. Engine Our car uses the basic 113bhp 1.6-litre petrol, now absent from the range. It’s freerevving but feels archaic against today’s offerings, including the 1.2-litre turbo. Interior Its attractive and well-laid-out cabin is miles away from the dreary Nissan interiors that had preceded it. The high seat offers an SUV-like driving position.
at its Nissan Glasgow Central dealership – this tower that's quite a local landmark
THE KNOWLEDGE Price (as new): Engine tested: Power (bhp): Torque (Nm): Max speed (mph): 0-60mph: MPG: Emissions (g/km):
£16,700 1.6-litre petrol 113 156 113 11.6 seconds 45.6 144
Andrew interviews John La Trobe, dealer principal at Eastern Western Motor Group What the petrol model lacks in torque it makes up for in verve and the two are much more closely matched than their 0-60mph times might suggest. If it wasn’t for the high driving position that affords better views ahead to safely overtake the occasional lorry, you’d never know you weren’t driving an ordinary hatchback. As a result, Sunderland begins to hove into view – heralded by Antony Gormley’s Angel of the North beside the A1 – sooner than expected. The Nissan factory in the city is home to the Qashqai and is the busiest vehicle production facility in the UK – Sunderland produces a new Qashqai every 62 seconds, including both of our cars. More than three million Qashqais have been produced since 2007, with more than 1.2 million of those ending up on the UK’s roads. However, we don’t hang about for long. The factory itself is closed and on lockdown as, with the 10th anniversary just around the corner, a new Qashqai yet to be unveiled to the public is
being built here. In any case, the light is fading at the end of the first day, so we take a trip down the part-industrial, part-postcard coast of the north-east to our overnight stop, ready to resume at next light.
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he following morning begins with a trip to Lookers in Leeds. Both cars are still proving excellent motorway companions, but it’s the newer car that really shows off its city credentials as we navigate the maze of Leeds city centre and squeeze into the tight parking bays at journey’s end. This centre too is a more recent addition to a dealer group’s portfolio, although our contact, sales manager Matthew Young, is an old hand with Nissan in general and Qashqai in particular. Reminiscing about the launch a decade previously, Young says: ‘I remember the first ones arriving off the transporter and there was a lot of shock, nervousness and excitement.
‘Nissan hadn’t done a great deal of shouting about previous products – it had always been sold on either price, practicality or reliability. ‘This was the first thing other than the sporty stuff where Nissan had really shown a bit of emotion and design focus. ‘Lining up in the showroom against Almera Tino, Primera, Micra and Note, it looked very much out of place. Customer reactions at first were a bit like we later saw with the Juke – people either loved it or didn’t really understand it – and then it started to get traction.’ Like some of our other dealers, Young admitted to a bit of trepidation about the new product, recalling some other attempts at deviating from the norm – such as the Cube – but he was rather more optimistic about the Qashqai because of the concept behind it. ‘The premise was that the car drives like a hatchback, has the running costs of a hatchback, is a hatchback, but has that elevated seating position CarDealerMag.co.uk | 83
FEATURE. NISSAN QASHQAI (J11) 2014-2017
Design Also designed in London, secondgeneration Qashqai builds on its predecessor’s SUV-like stance but adds more sculpted and premium details. Technology Our ‘Tekna’-spec car is loaded with kit, including a 360-degree ‘around view’ monitor, intelligent park assist and plenty of safety-focused technology. Engine Proven Renault-Nissan 1.5 turbo diesel offers up 110bhp, is flexible around town and refined enough for those long motorway schleps. Interior Chunky detailing of old car is gone, in favour of a sleeker look with plusher materials that attempt to steal buyers from more expensive rivals.
THE KNOWLEDGE Price (as tested): Engine tested: Power (bhp): Torque (Nm): Max speed (mph): 0-60mph: MPG: Emissions (g/km):
£29,715 1.6-litre diesel 128 320 118 10.3 seconds 55.4 133
Andrew chats to members of the team at Sandicliffe Nissan Nottingham – main picture above and there was nothing else like it. It appealed to customers’ rebellious side – someone would come in and look at an Almera but we’d show them that the dimensions were similar and it was higher up, more comfortable and a heck of a lot more modern, and it sort of sold itself really! ‘There were a couple of four-wheel-drives trying to imitate being a crossover, but there wasn’t anything that was a true crossover like the Qashqai. I don’t think even Nissan realised the desire for such a model. ‘All of a sudden, the British public had an appetite for this aspirational four-wheel-drive on their driveway with big alloy wheels and technology like integrated sat nav, dual-zone climate control and Bluetooth that you could buy for £14,000 or £15,000. ‘The crossover has taken pretty much 60 per cent of the hatchback market and the Qashqai has dictated the design of the modern family hatchback – and probably for 15 years to come.’ 84 | CarDealerMag.co.uk
In many ways Young hits the nail on the head. It’s something we can’t perhaps appreciate as we’re used to driving all sorts of premium vehicles with otherworldly features, and our 10-year old Qashqai is a little bit of a relic, but the popularity of the car came from not only the hatchback driving manners with an elevated driving position, it also democratised electronic toys and features and appealed to our better-thanthe-Joneses nature. Previously, to get a car like this you had to spend big money, but now you could pay hatchback prices for it. Of course, other manufacturers caught on pretty soon and it wasn’t long before the Qashqai had serious competition. Young notes: ‘The first-generation model aged quite quickly, because of the crossover arms race – every three or four months, someone was bringing out a new car – but the minor facelift in 2010 changed the whole look of the car. ‘Then, in 2014, came the biggest progression
I’ve ever seen in a car. The quality of materials leapt, the technology got better and it also became more user-friendly. It’s one thing I’m quite proud of working with Nissan – the technology they’re bringing out is so much more usable and everything’s obvious. I get in friends’ cars from BMW or Mercedes and they’re unbelievably complex to figure out. ‘Qashqai has all of the features of those cars but you could put anyone from your 80-yearold grandmother to your three- or four-year-old child in the front seat and they’d be able to do stuff with it. The Qashqai doesn’t appeal to one customer; anyone who comes in through the front door could be a Qashqai customer. ‘Ploughing all the money from Qashqai sales into the product change in 2014 was a stroke of genius. A lot of manufacturers would look at how much money the car made them and brought out something just as good. Nissan decided to reward its Qashqai customers by giving them something
PONZ PANDIKUTHIRA, VICE-PRESIDENT, PRODUCT PLANNING AT NISSAN
they’d never expected to have: a crossover with genuine premium feel.’
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Andrew with Matt Bloomfield of Motorline
”
Anyone who comes in through the front door could be a Qashqai customer
ith that endorsement ringing in our ears, we’re off to another appointment – this time with the team at Sandicliffe Nissan Nottingham, where general manager Gary Dighton and sales manager Ben Hodkinson have largely the same feedback. Dighton notes: ‘The initial reception was positive but with some scepticism. It was not only new to the market but also an entirely new thing in the market – here was this new thing that was taller than the ordinary hatchback and a little stranger.’ And strange turns out to be a good thing. Hodkinson says: ‘It took off, though. It did really well – it was a cracking seller! A lot of that was down to the design. The design was pretty cutting edge and very different. ‘As time’s gone on, judging from feedback from people, it’s how they drive, the value for money and the level of technology that appeal the most.’ Dighton adds: ‘And the driving position! The cars of the time were all low, so for a lot of people that extra height that you’d get from the 4x4 market was a bit of a revelation – especially without having to spend premium money. ‘Without a doubt, that still comes into it today. There’s no wallowing around like a 4x4, it’s relatively easy to park and it’s not a gender-biased car either. The demographics suggest that buyers are right the way across the market.’
probably sell fewer than 100,000 units, but it has exceeded our expectations year after year. When we launched the second-generation car, a lot of people said: "Well, you guys kind of defined the segment, but now there are lots of other players. Do you still think this vehicle has the potential to grow?’’ The short answer is yes, we did define the segment and as with any other time you’re successful there will be lots of followers, but we addressed what we perceived to be shortcomings of the original after interactions with dealers and customers. We fixed the design to make it more modern and we added lots of proactive safety features. What we did find was that the customer base wanted upmarket features – and what surprised us with the second generation was how heavy the mix was towards the Tekna. The traditional model of mobility, cars that get you from A to B, is rapidly changing. People are spending a lot of time commuting in their cars, so we have to think about what elements of convenience people are expecting. The human-machine interface needs to be more convenient so people can use functions while they’re driving without compromising safety.
‘
‘
The Almera that we were selling in the mid-2000s wasn’t a superb commercial success and was lacklustre to say the least. So we had to find a new vehicle – and a lot of study went into how we could create a breakthrough vehicle in that segment. There was a trend at that point where SUVs were doing quite well – in fact, Nissan was very successful with the X-Trail, the Pathfinder and the Navara pick-up. So the genesis of the idea was, what if we were able to combine the appeal of an SUV but take away the downsides that come with it? We thought we would need to get rid of the relatively clunky, uncomfortable ride and high fuel consumption and give it the best of what you’d get with a typical C-segment hatch – make it a compact size so it would be easy to park, and include a good-value equation. So we aimed to blend them both, with a car-based platform but a high riding position. Very few SUV owners actually use their cars to their full capabilities, but people have got used to the riding position that gives them the feeling of being in command of the road and more in control of their vehicle. In the beginning, our expectations for Qashqai were average. We were thinking we’d
This is probably the most under-reported aspect of the Qashqai’s success, although Young at Lookers had touched on it earlier. There is no typical Qashqai buyer. Although you might think it’s the preserve of those with children, the fact is the Qashqai is essentially an ordinary hatchback packed with extraordinary features and it appeals right across the board.
O
ur final stop of the day sees us making tracks to Oxford, where Matt Bloomfield, dealer principal at Motorline Nissan, is waiting to speak to us. He echoes the thoughts of his colleagues regarding the Qashqai’s birth, saying: ‘It was a very brave decision – the name was different to what we were used to and there was a lot of scepticism, with people thinking it was a 4x4. But as soon as the Qashqai hit the showrooms it started selling right away, and in volume. Throughout the years it’s just got better.’ Interestingly, Bloomfield tells us of a change in customer behaviour between the two generations, with early buyers not test-driving anything else. Modern consumers, however, with a wide variety of choice, will typically try before they buy. He says: ‘When people first looked at the Qashqai they just bought it, they weren’t going out and driving other things – but now there are so many rivals they do.’ That they still end up buying Qashqais, and in record numbers, is testament to just what a forward-thinking and sector-defining vehicle it is. [CD] CarDealerMag.co.uk | 85
Digital. Automotive. Performance. Nine out of 10 car buyers will visit a dealer’s website before visiting their showroom. In addition, there continue to be challenges around physical footfall, with a dealer survey by cap hpi at the start of the year reporting a dip in the number of dealers seeing a monthly footfall increase compared to the previous year. Darren Sinclair, managing director of Modix at Cox Automotive UK, said: “It’s clear that effective digital marketing for dealers is more important than ever, not just in terms of technology that is innovative and can give dealers an edge, but technology that is easy to use and can deliver immediate results.” Modix is the European leader in automotive digital advertising and provides dealers and manufacturers with a range of powerful digital marketing tools that help them to maximise the latest technology to help bring car buyers onto their website and into their showroom.
“Effective digital marketing for dealers is more important than ever.” Sinclair added: “We are committed to ensuring that our technology-powered tools are easy to use. Dealers need to be able to deploy our digital marketing solutions quickly and easily, without the necessity for adding headcount of getting a degree in rocket science!”
86 | CarDealerMag.co.uk
Modix AdBox demystifies search engine marketing for dealers, with the only inputs required being a budget, running time of the marketing activity and the vicinity in which it should be targeted. Depending on the search terms used by the consumer, Modix AdBox access the dealer’s inventory sitting in its stock management system and sends out dynamic, targeted adverts that are perfectly tailored to the needs of the individual car buyer. Crucially, Modix AdBox requires no Google AdWords knowledge to implement the tool within a dealership, and runs automated bidding a 24/7 on Google AdWords relevant to make and model to maximise the dealer’s marketing budget. For dealers’ vehicle imagery needs, Modix SnapLot enables dealers to produce consistent vehicle imagery. With consumers spending more time online, more often, they expect a high level of details when it comes to vehicle imagery and information. SnapLot is a simple, smartphonebased technology that provides on-screen guides to ensure cars are captured at the best distance and at the best angle. The guides give a dealers’ stocklist a professional and consistent look and feel that is sure to impress prospective car buyers.
Modix LeadTracker allows dealers to track response to – and therefore return on investment – their digital marketing, by using dynamic email addresses and phone numbers in online and offline marketing. Using these means that the most effective channels can be easily identified and boosted, and that the less effective channels can be dialled down, if required. LeadTracker analyses all emails and phone calls to gives dealers a comprehensive, but easy-to-digest summary of their marketing spend and performance. Darren Sinclair said: “There are myriad digital marketing tools out there for dealers to use, so it can be challenging to work out which ones will provide the best results and returns. Our focus is on providing dealers with the best technology – backed up by our strong partnerships with Google and Microsoft – that is easy to use and can be connected with a dealer’s existing systems and processes so it can seamlessly integrate into any dealership.”
Got a question? Get in touch, call 0333 444 0328 or visit modix.co.uk
Digital Forecourt Search Marketing Imagery Solutions Stock Management Dealership Support
modix.co.uk Accelerate your digital performance today.
CarDealerMag.co.uk | 87
FOCUS ON.
Top technology
Embracing digital CODEWEAVERS
T: 0800 021 0888 W: codeweavers.net
l 74 per cent of consumers conduct their car-buying research online. l 71 per cent of car buyers want to start their finance process online. l Successful dealers are over twice as likely to embrace digital marketing than those who do not (41 per cent v 20 per cent).
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he above figures are just some of the latest research findings from Google and Auto Trader. They point to the importance of not just using digital media, but of embracing it. Shaun Harris, sales director at leading financial services software provider Codeweavers, shares some practical pointers on how used car dealers can increase the value of their online presence by giving car buyers the ability to complete more of their purchase journey online and doing this without spending a fortune... Currently, options for car buyers wanting to buy online are largely limited to a small but growing number of manufacturer websites, or through an online broker. The focus is largely on new cars. That said, it seems many used car buyers would like to at least reserve their selected car online before making that final physical check of both car and dealer. The reality of online consumer activity is already clear; forecourt traffic volumes have fallen, but the quality has risen. When a customer comes on to your forecourt they are in buying mode. Now, how can you get more of them? The answer is to make your online presence even more appealing. One key development that we see as useful to used car dealers is ‘click & collect’. Adding a ‘click & collect’ reservation capability to your website could increase the number of leads and the amount of showroom traffic. After all, if potential buyers had the ability to reserve their perfect car through you, it would mean capturing a sale that may otherwise have been missed. The functionality car buyers value Two areas of functionality are vital in online retailing and they apply to car sales as well as any other online selling: 1. Ease of use 2. Trust – arguably even more important 88 | CarDealerMag.co.uk
for used car sales given the values and used nature of the product.
reservation. It all means a lot of the admin is done for you! It’s very much the ‘click & collect’ approach consumers like!
So, a few ‘top tips’ to build these attributes and gain an unfair competitive advantage! Add a smart edge to your digital presence l Convenience – make it easy for A little science can help you refine your customers to like you and your stock. site and make it more appealing and l Use fixed and transparent pricing. appropriate to your target audience. l Demonstrate affordability – cost Monitoring tools such as Google per month. Analytics can help you to determine l Build trust with information on how effective your website is in items such as warranty cover and engaging customers. include reviews. It will help you to identify how far l Make it easy to buy – add the they delve into the information presented opportunity to reserve a car that suits them, and what road blocks might be making Shaun Harris subject to a final physical confirmation. them leave. If the roadblock ‘bounce rate’ is high, it suggests that you haven’t captured your Refine your current approach – ‘embrace’ digital car buyer’s attention. As such, spend time refining Keen to step up to a higher level of digital and the content to make the customer’s journey easier embrace some new tools? and more appropriate. At Codeweavers, we are currently finalising a Change one area at a time and test the impact. solution, perfectly positioned for both franchise and Affordability, pricing, reviews and the quality used car dealers. This is in addition to our awardof information about the cars on offer and the winning range of finance calculator tools. dealership are all good starting places. We never ‘Calcs’ should be on every dealer site. After all, cease to be surprised at the way small things often more than 80 per cent of customers need finance to make the greatest difference. In summary, I hope buy that car from you! this helps to de-mystify some of the emerging The principle for the car-buying tool is simple: digital dealer world. We are happy to help and to the car buyer finds their ideal car online, they keep things simple and practical to help improve can reserve the car, paying a deposit if they like, your customers’ journeys to you. and then they receive a confirmation of their Best wishes, Shaun
More Sales With Codeweavers Used Car Offers Top Tips for your website offers
1
Personalise your offers
2
Create offers specific to a vehicle
www.codeweavers.net
3
Ensure your offers are easy to discover
4
Your customers should be able to adjust your offers easily
contactus@codeweavers.net
5
Make sure your offers are easy to manage
CarDealerMag.co.uk 0800 021 0888 | 89
FOCUS ON.
DealerTrade
Platform where dealers can DEALERTRADE
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W: dealertrade.co.uk E: sales@dealertrade.co.uk
new online avenue for obtaining stock that’s free to use? That lacks any of the hassle of the traditional auction model? And works hard to eliminate any malpractice and mischief? If you think that all sounds too good to be true, we wouldn’t blame you for a second – but it’s definitely not in this case! DealerTrade is a new vehicle trading website and online community. And as it is funded purely by advertising, it’s completely free to use. There’s no joining fee, no membership fee and no catches whatsoever. The company was set up by Dean Miles, Wayne Ryder and Simon Smiddy, all three of whom have vast experience in the motor trade. All three are former senior employees of one of the biggest names in the automotive auction world – and their understanding of the industry told them that a new approach was needed when it comes to buying and selling cars. Having spent part of his career ensuring dealers were satisfied with auction services, Miles is well aware of the main challenges they face. He says that their biggest concern is the cost of
Dean Miles, Wayne Ryder and Simon Smiddy 90 | CarDealerMag.co.uk
buying and selling cars at auction. ‘The aim is for dealers to create a community between themselves,’ said Miles when we caught up with him recently. ‘Instead of sending cars to the auctions and going to buy cars and pick up fees, with our system, they build up relationships through the site and trade cars between each other. We’re trying to save dealers money. ‘We’re a premium service that’s free of charge. The biggest remark we get from dealers is: ‘‘What’s the catch?’’ Our answer is: ‘‘It is free and it’s staying free. We will get revenue from the advertising partners.’’ ’ Some other sites charge dealers approximately £200 for each £10,000 car they sell, as well as a typical membership fee of up to around £100 per month. As we’ve said, DealerTrade gets all of its revenue from advertising, meaning dealers can sign up and use the service without forking out at all. In terms of recruiting those advertising partners, Avis, Budget and United Rental System are already on board, and the company says there’s big news coming soon about another massive ally they’re currently in talks with. This policy is hugely beneficial to members of the site as well, as DealerTrade uses its advertising partners to offer benefits to its users. Dealers who use the service can get discounts on a variety of items and services they need, such as tyres, warranties and insurance. Another problem that is perceived to be all too frequent on other vehicle trading sites is a lack of policing. Many dealers complain that those among their competitors who are dishonest and act questionably in regards to their business dealings are rarely dealt with appropriately. DealerTrade is absolutely determined to root out this issue by introducing a new way of protecting its users. ‘We operate with a three strikes and you’re out rule,’ says Miles. ‘If somebody makes a complaint against you, it will be put on record. ‘If somebody gets three complaints, they are off that site and they will not join again. We are the only ones doing that. It’s going to be heavily policed, because the frustration with our competitors is nobody polices it.
‘We’re all from a motor trade background – we know what goes on. We’ve all heard horror stories in the past from sites like this and we’re determined for them not to happen on our site. ‘We have already removed cars for being too expensive on there, because it’s a trade-only platform. We want people actively trading
trade for free with no catch ‘‘
Feedback from dealers is they’re glad we’re here, they’re glad we’re making a change and reducing the cost of buying a car. Dean Miles
cars with genuine money, rather than people being greedy. Complaints can be misdescribing a car, wasting people’s time – we won’t put up with things like that because some of our competitors are notorious for that kind of behaviour. ‘We want a fair community for everybody.
We’re built by motor dealers for motor dealers.’ DealerTrade has been live since October 2016 and has accumulated more than 1,800 members so far. This number is constantly on the rise, at a rate of about 15 dealers joining every day. Everyone who has signed up so far has only had positive things to say. ‘Feedback from dealers is, they’re glad we’re here, they’re glad we’re making a change and reducing the cost of buying a car,’ says Miles. ‘They’re glad to have a new avenue for stock. It’s as simple as that. They’re saying there’s room for you and we want you here. Everybody we’ve spoken to, and that’s a lot of people, not one person’s said it’s a bad idea. Not one. ‘There won’t just be a benefit of buying cars on the site. We want people to benefit the other sectors of the motor trade as well, just for being a member. As long as you’re a motor trader, you can sign up for free. That’s the biggest USP we’ve got – there are no catches. ‘Other services seem to have been built by computer bods who don’t understand the motor trade. We understand the pitfalls of the motor trade. We understand what goes on. We are trying to change people’s behaviour on these sites.’ Having been built from the ground up with the needs of dealers in mind, Dealer Trade is well on its way to becoming one of the key go-to places for buying and selling cars. No other service offers the same membership benefits and trading security. Combined with the fact that all this comes at absolutely no cost, DealerTrade stands out from its competitors. So, when you’re next looking to sell a car or get some new stock in, you’ll have a choice – stay with the same systems you’ve been frustrated by previously, or join an ever-expanding community of dealers on a trailblazing platform. The decision should be a no-brainer. by Tristan Shale-Hester @tristan_shale CarDealerMag.co.uk | 91
92 | CarDealerMag.co.uk
FOCUS ON.
Divido
Beyond car finance DIVIDO
W
T: 020 3773 9510 W: divido.com
hilst it is widely accepted in our industry that offering competitive and flexible finance options for new and used cars increases sales, the same logic has not traditionally been applied to increasing aftersales volumes, until now. It’s clear the UK car market in general, and the used car market in particular, is on the rise, and to capture the full potential of the price-conscious customer, dealers and manufacturers are now looking for new ways to upsell other products and services to maximise revenue. Starting to offer flexible payment plans for things they traditionally haven’t offered finance on, such as services and accessories, is helping with just that. As some manufacturer bosses like to observe, ‘if there’s one place dealers should focus on in their business to make more money, it’s aftersales’. It’s something we hear time and again from dealer groups, too. If they could give one piece of advice to their dealers, it would be to grow their aftersales business. A few independent dealers already work with providers such as Auto Service Finance and Payment Assist to offer customers the ability to
spread the cost of a service, paving the way for making this something customers will come to expect from everyone. This year BMW will also follow suit, starting with a few dealers this spring thanks to a new service provided by Divido. Mike Dennett, CEO at BMW Group Financial Services UK, explained: ‘The key trend I see driving automotive financial services and aftersales is all about the customers. Making it easier for the customer to do business with us and making it all affordable.’
Why is Divido unique? Holloman explains that there are three things that make Divido unique.
More lenders ’First of all, we are a multilender platform. That means we can plug in any lender (manufacturer or independent) and each dealer can choose what combination of lenders they want to work with. That means we offer more accepts, lower costs and a much broader range of finance options,’ he said. Divido has plans ranging from six to 60 months, those that are completely Christer Holloman free to the end consumer, free to the Who are Divido? dealer, and even plans that pay a commission Divido is a ‘finance as a service’ provider; a to the dealer. This novel approach has earned platform for dealers, lenders and intermediaries Divido recognition from the British government’s that want to offer instant new credit as a innovation agency, Innovate UK. payment option to their end consumers for any product or service. Works online, over the phone and in-store The company is very new to market and Companies choose to partner with Divido therefore you may not have heard of it before. because its platform is omni-channel. The whole However, with backing from the people behind process is paperless and instant – nothing to Skype, Worldpay and TransferWise, it’s one to print, sign or post – and the dealer gets paid in watch. After only 18 months of trading full within three days, guaranteed. it has more than 300 partners who Holloman explains: ‘The modern consumer are already using its solution, and will touch multiple sales channels before, Car Dealer Magazine got a chance to during and after getting a quote for a product or catch up with its CEO and co-founder, service. We want to help our dealers convert that Christer Holloman. customer wherever, whenever they want to go ‘It was clear to me that ahead and pay with finance.’ manufacturers, large dealership groups and finance companies have Wherever you are in the world The third thing better things to worry about than that makes Divido truly unique, according to how to build and support a tool Holloman, is the fact that its solution works in which lets end consumers pay for multiple countries. For a manufacturer or large anything in monthly instalments dealership group that means one integration, one – so we did that for them,’ says unified customer experience across all markets. Holloman. Holloman elaborates: ‘We’ve been focusing on the UK for the last three years, but by the end of this we will be live in eight more countries across Europe, and that’s just the beginning.’ Car Dealer spoke to Wayne Berry, MD of Berry BMW, a dealership already using Divido. ‘We need to be innovative in aftersales to make sure we have programmes that meet our customers’ needs, because our competition won’t stay still,’ says Berry. ‘We believe our opportunity to upsell with Divido will be much greater. ‘This is a really good solution for the customer and a really good opportunity for us.’ CarDealerMag.co.uk | 93
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
We’d all be better off without this salesman
Q
I have a salesman on my team and we are thinking of parting company with him. His performance is below what we require and he drags down his whole team. What can we do? It is not an uncommon situation when employees are not performing as required, but at the same time there is nothing to suggest they are so grossly and manifestly incompetent or negligent that a dismissal is warranted. However, the Employment Rights Act 1996 states that capability and conduct are both potentially fair reasons for dismissal. Poor performance falls under capability in the eyes of law and could be a valid reason for dismissal, provided the correct procedure is followed and the rights of the employees are not infringed. The correct procedure is outlined in the ACAS Code of Practice on Disciplinary and Grievance Procedures, which can be accessed online at acas.org.uk. The two key requirements that underpin the performance procedure are putting your employee on notice of lacking performance and providing a reasonable opportunity to
A
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improve. As long as you explain to your employee what targets or what level of performance is expected, how the demonstrated performance falls short of the expected targets and what improvement is required, the employee will be required to achieve the necessary improvement and hit the targets, provided they are reasonable, realistic and non-discriminatory in nature. The employee will then have to be given a reasonable opportunity to improve. The opportunity to improve includes identifying any training and support requirements. You would explain to your employee that performance will be closely monitored over a specified period of time and feedback provided. The length of the time for performance monitoring largely depends on the length of service: it would be unreasonable to dismiss an employee with five years of good service and an unblemished performance record if the performance dipped and improvement was not achieved within one month. Normally you would
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.
devise a performance improvement plan, which would specify precisely the areas lacking in performance, the necessary improvement, the timescale for improvement, how improvement will be measured and any training or support requirements. You would then put the written plan to your employee. This brings me to a point of crucial importance: written evidence. Too often an employee is taken to the employment tribunal and would have a strong defence but lacking dismally is any documentary evidence to prove their case. In any employment matters, document the steps you have taken and make sure you have written records. Even very brief bullet points could form the evidence on which your case will be decided. If you follow the correct procedure, the issues of performance can form the basis for disciplinary proceedings, with typical sanctions in the absence of the required improvement escalating from a warning, to a final written warning, and dismissal.
ADVICE
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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.
Not happy!
Q
I am not happy with how the judge determined my small claims dispute – how can I appeal? It is very difficult to appeal against small claims hearings. Unless you requested and obtained permission to appeal at the end of the hearing, you need permission to appeal. Your documents need to be with the court within 21 days of the judgment you are challenging. You cannot challenge on a point of fact but only if the judge fundamentally misapplied the law or procedure. As well as having to pay the £120 fee, you will also be expected to obtain (and pay for) a transcript of the original hearing so an assessment can be made as to whether there are grounds to appeal. Your opponent will also be sent a copy of your papers and ask whether they consent to the granting of an appeal or oppose it. A 30-minute hearing will then take place to determine whether the case is to be sent back to the court for a rehearing. In this regard, getting permission to appeal only allows you a rehearing and not an automatic victory.
A
WHY I JOINED CAR DEALER CLUB
A safety net for dealers? Definitely... and Lawgistics have really helped us! STEVE Hearn is the director of Harley Motors Ltd in Cambridgeshire, and Lawgistics came to his rescue when a customer stopped paying the finance on a car. Two years ago, a customer went to Harley Motors wanting to buy a car on finance. She only needed a family runabout but immediately set her heart on a high-mileage, firstgeneration Land Rover Freelander. ‘The car wasn’t suitable for her at all,’ said Hearn. ‘We tried telling her that but she wouldn’t have it, and no sooner had she had the car than she had loads of problems with it.’ The real trouble started when the customer decided she didn’t want to talk to the dealer about the car’s issues. ‘She went straight to the finance company and was trying to give the car back to them,’ said Hearn. ‘If that had happened, they’d have come to us for the money back.’ Having seen Lawgistics’ advertisements online, Hearn contacted
them in order to get advice to help deal with the situation. ‘What I thought was very fair of them was how, instead of charging me for one-time legal advice, they told me about their membership and told me I’d be much better off paying the £69 than a massive bill for legal advice.’ Now that Harley Motors was a member of Car Dealer Club, it had the full support of Lawgistics. A few well-written letters later and the finance company repossessed the car because of non-payment, lifting any potential legal obligations from Hearn’s shoulders. In another, more complicated matter, Hearn appreciated Lawgistics’ willingness to give a detailed explanation in person. ‘They were quite happy for us to go down to their offices with all the paperwork and see one of their legal team, who went through it with us.’ Hearn says that he’s ‘100 per cent’ satisfied with the help he’s received from Lawgistics and would ‘most definitely’ describe them as a safety net for dealers. Tristan Shale-Hester (@tristan_shale)
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 relevant legal areas and documentation. There really is a package for everyone with Lawgistics.
EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM 2. HIT SUBSCRIBE
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Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs, and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.
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.
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
* Terms, conditions and eligibility rules apply. Visit cardealerclub.com/#benefits for more details.
Dragon2000 CarDealerMag.co.uk | 95
DATA FILE.
Thestatistics
n
SMMT Sales Data
n
Taking Stock
Calm before storm as registrations dip, but only marginally ‘Consumers aren’t simply browsing for new cars, they are still buying’
T
he UK new car market remained steady in February, dipping just 0.3 per cent, according to figures released by the SMMT at the start of March. A total of 83,115 vehicles were registered in traditionally one of the quietest months of the year ahead of the number plate change. Fleets drove the market, with 45,699 cars registered, up 3.3 per cent, while private demand fell by 4.4 per cent to 36,018 units and business registrations declined by 5.3 per cent to 1,398. Following January’s strong performance, buyers registered a record 3,308 alternatively-fuelled vehicles (AFVs) in February, a 48.9 per cent uplift on 2016, taking a four per cent market share. This was partly driven by new AFV models going on sale, a result of major investments by manufacturers into cutting-edge, fuel-efficient technology. Petrol registrations experienced an increase – rising 5.8 per cent to 42,826 units – while demand for diesel cars fell by 9.2 per cent compared to the same month in 2016.
Mike Hawes, SMMT chief executive, said: ‘February is traditionally one of the quietest months of the year and a steady performance was expected following another year of record growth in 2016. ‘We expect to see the market bounce back in March as buyers take advantage of the new 17 plate, as well as the last chance to buy a car eligible for current lower VED rates.’ Jon Maycock, managing director of asset finance at Hampshire Trust Bank, said: ‘With many waiting until March’s new registration plates, this slight drop in numbers is not surprising. ‘While many are predicting that vehicle prices could rise at some point in 2017, there are still plenty of attractive finance packages out there.
‘Small business owners who are looking to invest in a vehicle this year should focus on partnering with brokers and lenders who can give them the key to the best asset finance deal.’ James Hind, founder and CEO of car buying site carwow.co.uk, added: ‘We’ve seen a record level of interest in new cars during the month of February, and whilst some of this rise is a direct result of our national advertising campaign, we are seeing inquiries passed to Carwow dealers continue to grow month-on-month. British consumers aren’t simply browsing for new cars, they are still buying. ‘One particularly interesting trend to emerge from the past couple of months is consumers’ move away from purchasing diesel cars. Comparing February 2017 to the previous year, the proportion of petrol engines purchased over diesel engines on Carwow has grown by 11 per cent. ‘The media’s demonisation of diesel and the government’s recent comments asking people to have a ‘‘long, hard think’’ about buying diesels is clearly having an effect.’
Kia looks set to hit its 91,000 sales target for 2017 KIA hit another top score in February with 3,243 new vehicles delivered to the brand’s ever-growing band of customers and 10,904 sales recorded for the first two months of the year. The February total eclipsed last year’s performance of 2,889 – a 12.5 per cent increase – and the two-month figure was up almost 38 per cent on the 7,955 vehicles sold in the same period in 96 | CarDealerMag.co.uk
2016. The performance in February was led by Sportage with Rio and Picanto completing the marque’s top three bestsellers. In the first two months of the year, the same vehicles led Kia’s charge with them accounting for 4395, 1399 and 1394 sales respectively. Paul Philpott, president and chief executive of Kia Motors (UK) Limited, said: ‘We are delighted that so many
savvy British motorists recognise the style, reliability and value of Kia products and that they appreciate the excellent service provided by our 188 dealers. Together our customers and dealers have delivered our strongest ever start to a year and we are indebted to them for that. ‘I am optimistic about hitting our target of 91,000 sales in 2017.’
SMMT sales data Feb/year to date
5
Top
Most-improved manufacturers in February
Infiniti +337% Aston Martin +63% Maserati
+48%
Land Rover +39% Suzuki +27%
5
Bottom
Worst-performing manufacturers in February DS -54% Mitsubishi -50% Lotus -38% Subaru -35% Jeep -34%
VAUXHALL -19%
SMART +25%
Marque Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Citroen Dacia DS Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda McLaren Mercedes-Benz MG MINI Mitsubishi Nissan Peugeot Porsche Renault SEAT Skoda smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total
February 2017 2017
130 196 31 5,237 60 6,119 0 2,120 439 369 1,426 9,909 2,126 3,009 118 869 227 3,243 1,778 206 24 46 1,164 14 6,099 111 2,045 354 5,033 3,273 202 2,092 1,728 3,236 294 105 48 1,587 3,095 6,299 7,326 1,077 17 234 83,115
% market share 0.16 0.24 0.04 6.30 0.07 7.36 0.00 2.55 0.53 0.44 1.72 11.92 2.56 3.62 0.14 1.05 0.27 3.90 2.14 0.25 0.03 0.06 1.40 0.02 7.34 0.13 2.46 0.43 6.06 3.94 0.24 2.52 2.08 3.89 0.35 0.13 0.06 1.91 3.72 7.58 8.81 1.30 0.02 0.28
February 2016 2016
112 165 19 5,384 48 5,760 0 3,046 512 807 1,917 11,513 2,050 2,685 27 769 345 2,889 1,275 232 39 31 1,411 0 5,196 103 1,721 710 4,634 3,469 206 1,948 1,594 2,902 234 153 74 1,248 2,478 7,868 6,694 1,030 15 82 83,395
% market share 0.13 0.20 0.02 6.46 0.06 6.91 0.00 3.65 0.61 0.97 2.30 13.81 2.46 3.22 0.03 0.92 0.41 3.46 1.53 0.28 0.05 0.04 1.69 0.00 6.23 0.12 2.06 0.85 5.56 4.16 0.25 2.34 1.91 3.48 0.28 0.18 0.09 1.50 2.97 9.43 8.03 1.24 0.02 0.10
% change 16.07 18.79 63.16 -2.73 25.00 6.23 0.00 -30.40 -14.26 -54.28 -25.61 -13.93 3.71 12.07 337.04 13.00 -34.20 12.25 39.45 -11.21 -38.46 48.39 -17.51 0.00 17.38 7.77 18.83 -50.14 8.61 -5.65 -1.94 7.39 8.41 11.51 25.64 -31.37 -35.14 27.16 24.90 -19.94 9.44 4.56 13.33 185.37 -0.34
2017 353 480 220 16,913 223 14,608 0 5,370 2,433 1,028 4,647 32,687 6,136 9,396 300 3,563 955 10,904 7,205 1,006 49 211 3,991 63 19,147 316 4,325 1,683 16,411 9,225 889 6,112 5,582 8,667 1,045 403 226 5,349 10,531 20,169 20,293 3,872 69 624 257,679
Year-to-date (YTD) % market share 0.14 0.19 0.09 6.56 0.09 5.67 0.00 2.08 0.94 0.40 1.80 12.69 2.38 3.65 0.12 1.38 0.37 4.23 2.80 0.39 0.02 0.08 1.55 0.02 7.43 0.12 1.68 0.65 6.37 3.58 0.35 2.37 2.17 3.36 0.41 0.16 0.09 2.08 4.09 7.83 7.88 1.50 0.03 0.24
2016
313 469 88 16,897 168 14,025 1 7,620 2,179 1,896 5,475 33,548 6,570 8,566 132 3,021 1,149 7,955 5,884 1,233 55 113 5,692 0 16,996 416 3,652 2,245 15,354 10,782 1,033 6,093 4,713 7,895 937 413 281 3,602 9,307 23,130 18,749 4,020 63 343 253,073
% market share 0.12 0.19 0.03 6.68 0.07 5.54 0.00 3.01 0.86 0.75 2.16 13.26 2.60 3.38 0.05 1.19 0.45 3.14 2.33 0.49 0.02 0.04 2.25 0.00 6.72 0.16 1.44 0.89 6.07 4.26 0.41 2.41 1.86 3.12 0.37 0.16 0.11 1.42 3.68 9.14 7.41 1.59 0.02 0.14
% change 12.78 2.35 150.00 0.09 32.74 4.16 0.00 -29.53 11.66 -45.78 -15.12 -2.57 -6.61 9.69 127.27 17.94 -16.88 37.07 22.45 -18.41 -10.91 86.73 -29.88 0.00 12.66 -24.04 18.43 -25.03 6.88 -14.44 -13.94 0.31 18.44 9.78 11.53 -2.42 -19.57 48.50 13.15 -12.80 8.24 -3.68 9.52 81.92 1.82
Figures supplied by SMMT
CarDealerMag.co.uk | 97
The next stage in the future of feel good car buying and selling with ďŹ ndandfundmycar.com is here!!! We want our dealers to be a part of this from start to ďŹ nish - we are looking for children between the ages of 2 and 8, as well as dogs of all shapes and sizes, to be our stars! All you need to do is send in your video of your dogs or kids*. If your child and/or pooch really knows how to work it on the dance oor, loves to be in the car, and is great at taking direction, we would love to hear from you**.
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MARKET INSIGHT.
..in association with ASE-global.com
Sector will surely feel the effect of slowdown March will undoubtedly prove to be a month to watch, says Adam Cottam
V
ertu equities showed the biggest rise in February, but it was a mixed month overall. The wider UK economy was starting to show signs of slowing as the predicted inflationary pressures began to take effect on businesses and households. Although there has been no evidence the motor retail sector has been directly affected, it seems only a matter of time, given the industry isn’t immune to the consequences of a weaker pound. We saw a solid set of results from Pendragon, with the key driver being the performance of used cars. This is further evidence the sector is offsetting the expected softening of the new car market with a focus on used. It was another quiet month on the transaction front, with the only deal of any note being the Marshall purchase of Scratch Match, an accident repair business in Grimsby. Share price performance Only Caffyns is now behind where it was at the turn of the year, meaning in 2017 so far the overall trend is growth in motor retail equity prices. There was very little notable activity in the month to influence share prices other than the release of the Pendragon final results for 2016. UK manufacturers exporting abroad were seeing their biggest growth for three years as the effect of the weaker sterling made imports cheaper for foreign markets. The pound saw a mini revival at the start of February, but as the month drew to a close those gains were lost and we were more or less where we started at the end of January. This has helped UK export businesses in tandem with the growth and recovery of the core EU economies, which has fuelled demand and filled order books. However, there were increasing signs the economic growth was about to slow. Inflation was starting to affect input costs for businesses and household budgets across the UK. In particular, food prices were starting to creep up, which ultimately could lead to less money in the bank to fund big purchases such as houses and cars. For the UK car market the impact of the exchange rates, Spring Budget and Brexit negotiations will be extremely important in March, as a weaker pound may lead to price
Share price movement from January 3 to February 28, 2017
Share price movement from January 3 to January 31, 2017
Pendragon
108.8%
111.2%
Vertu
109.8%
99.4%
Lookers
105.1%
106.2%
Inchcape
106.9%
102.2%
Cambria
108.3%
102.5%
Caffyns
96.2%
99.0%
Marshall
119.6%
114.1%
increases for the consumer and/or lower margins for retailers. The Brexit negotiations may well make it more difficult to move cars across Europe in a commercially efficient manner as import levies are imposed and the pound potentially weakens further if the outcome of the negotiations is deemed negative for the UK. It will be very interesting indeed to see the impact of each as we move through the month. Financial performance Pendragon released its results to December 2016 which were, on the whole, positive. Revenue was up 1.9 per cent year-on-year and underlying operating profit was up 0.7 per cent. The major component of the growth was used where likefor-like sales rose by 9.5 per cent. Pendragon has said in recent communications that it expects the focus in 2017 to be on used cars, given the likely slowing of the new car market. In these results, we could clearly see the
start of this strategy being implemented, and its commentary reaffirmed that used car growth was a strategic goal of the company for the shortto-medium term. The business outlined plans to realise this strategy by buying more sites to sell used cars from and by expanding its ‘Sell Your Car’ initiative, where it guarantees to better webuyanycar.com’s price. This will see more used customers on the company website and through the doors of its dealerships, as well as improving access to used car stock. March saw the 2016 final results for Lookers released, as reported elsewhere in this issue – the group has been active in acquiring new businesses and rebalancing its brand portfolio. Transaction activity The only activity involving the listed motor retailers was Marshall’s purchase of an accident repair business in Grimsby. Scratch Match was established nearly 20 years ago, and the deal includes the freehold for the 3½-acre site from which it trades. Marshall will redirect work from its BMW and Mini dealership in Laceby, while the showrooms are redeveloped into a new facility near the A46. Recent months have seen a quietening of the transaction activity that has been so prevalent in recent years. We are expecting this to pick up in the coming months, however, as the appetite for the ‘right’ opportunity still appears to be there along with an appetite from smaller operators to sell.
Who is Adam Cottam? Adam is corporate finance executive at dealer profitability specialist ASE plc. You can read his column here every month. CarDealerMag.co.uk | 99
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Fast & Furious Dodge Charger Is Going Under The Hammer
R.I.P. Motorsport Legend John Surtees
It’s not every day that a car from a multimillion-dollar film franchise hits the market, but in Pennsylvania that rare opportunity has just come around. Find out more! Go online to: bit.ly/SU-furious
Along with many others, we are mourning the death of ex-Formula One and motorbike world champion John Surtees at the age of 83. He was one of the most talented racers of all time. Go online to: bit.ly/SU-Surtees
Supercar Vlogger Mr JWW Ultra Rare DeltaWing Race Goes Drifting In The Batmobile Car Goes On The Market In one of his latest posts, supercar vlogger Mr JWW goes to Sweden to drive a recent Gumball Rally icon, the Galag Batmobile, on an ice lake alongside some super-powerful cars. Go online to: bit.ly/SU-Batmobile
The motorsports world watched with intrigue back in 2012 when the DeltaWing debuted at the 24 Hours of Le Mans – now you can buy one of the three cars built to the design. Go online to: bit.ly/SU-Delta
Student Shows He’s Driving Sober By Juggling For Cops
Aston Martin Names Its Upcoming Hypercar Valkyrie
When student Blayk Puckett was stopped by police after they spotted that one of his brake lights wasn’t working, he ended up proving his sobriety in a rather unorthodox way. Go online to: bit.ly/SU-juggle
Remember SuperUnleaded telling you about the rather epic-looking Aston Martin and Red Bull Racing creation the AM-RB 001? Well, it’s now been given a name with more impact. Go online to: bit.ly/SU-Valkyrie
Australian Driver Causes Stupid Accident With Truck
Driver Overcorrects – And Lands On Roof Of House
If there’s one type of vehicle you don’t want to mess with on the road, it has to be a lorry. Unfortunately, one bull-headed driver in Australia didn’t seem to agree recently. Go online to: bit.ly/SU-truck
The last place you’d want to find yourself in a car is on the roof of someone else’s house. Unfortunately, that’s where one man ended up after losing control of his Honda CR-V. Go online to: bit.ly/SU-roof
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
Values keep rising with a richer mix of product and strong competition February recorded the highest headline figure since Pulse began reporting in 2005, writes Simon Henstock, BCA’s chief operating officer for UK remarketing
D
espite volumes remaining high, values climbed again in February with the headline average value reaching a record figure. Year-on-year, average values rose by more than 11 per cent as BCA offered a richer mix of stock with a lower age and mileage profile. Buyers continued to compete strongly for stock across the board with well-presented vehicles in ready-to-retail condition being strongly sought after. Average values for fleet and lease stock rose to the second highest point on record, while price performance for dealer part-exchange vehicles remained at near-record levels. February recorded the highest headline figure since Pulse began reporting in 2005, with values rising by £203 (2.3 per cent) to £8,822. Year-on-year values were up by 11.2 per cent (£893), with average age and mileage falling by five months and 4,500 miles respectively. There were strong levels of demand in February, with plenty of interest in retail-ready cars. February was a good trading month. However, the increase in the average selling price is only partially driven by the market. The richer mix of product offered by BCA, along with the lower average age and mileage profile, is also impacting positively on values. Buyers still have a lot more choice and vehicles requiring repair and refurbishment need to be sensibly valued to compete. There is a noticeable and appreciable improvement in sales performance when vehicles are presented in ‘ready-to-retail’ condition, for the professional buyer to take away and sell without delay.
For cars with cosmetic damage, SMART repairs are a cost-effective option for sellers. The market is anticipating increased partexchange business and greater volumes from fleet and contract hire sources over the coming weeks. With Easter imminent – often a watershed in demand – this could impact on residual values in the weeks ahead and BCA is recommending that volume vendors appraise their sale stock closely to ensure it is valued in line with market expectations. Average values in the fleet and lease sector rose marginally, reaching £10,179, the
Average values in fleet and lease sector
£10,179
second highest point on record. Retained value against original MRP (Manufacturer’s Retail Price) improved by a half a point to 42.5 per cent, while year-on-year values were up significantly, rising by £517 (5.3 per cent), as both age and mileage continue to decline. Dealer part-exchange values were effectively static in February, falling by just £11 to £4,568 over the month. Year-on-year values were ahead by £313 (7.3 per cent), with average age and mileage little changed over the period. Average nearly-new values fell to £17,247 in February, with model mix having a significant effect in this low-volume sector.
Average nearly new values:
£17,247
CarDealerMag.co.uk | 101
AUCTIONS.
Henstock AUCTION STATIONS
Be in the know, don’t just hope for the best! ONE of the iconic 1970 Dodge Charger R/T hero cars, which shared screen time with Vin Diesel and the late Paul Walker in The Fast and The Furious series, was going under the hammer at Manheim Pennsylvania – the world’s largest wholesale vehicle auction – as
Car Dealer went to press. The Charger, which appeared in the fourth and fifth instalments of the famous film franchise, was being offered during a special section of the sale, featuring a consignment of rare classic cars and more modern vehicles listed at $200,000 and above.
Three-year-old ex-fleet stock in high demand Ever-growing buyer base at Shoreham Vehicle Auctions
T
hree-year-old ex-fleet stock remained extremely strong throughout 2016 and into Q1 2017 at Shoreham Vehicle Auctions, because of the continued high demand in the used market. The Lancing-based auction house witnessed consistent demand for threeyear-old models from all manufacturers throughout the past year, which has continued into January and February, despite the ever-increasing pressures from new and pre-reg volume. Shoreham attributes the strength of its typical three-year-old, 60,000-mile used fleet stock in the auctions halls to its established network of vendors, helping to build trust among its current and evergrowing buyer base. As a result, Shoreham has regularly featured at the top of the 2016 conversion tables for three-year-old product, achieving an average conversion
rate of 92 per cent throughout the year, regardless of seasonal fluctuations. The large amount of fleet volume coming to the market has been well received by buyers looking to fill their forecourts with stock after an abovenormal retail period around Christmas. ‘We’ve seen no dip in the three-yearold market for over two years,’ said Alex Wright, managing director at Shoreham. ‘With buyer demand, residual values of three-year-old stock are very strong and far enough away from the price of new vehicles sold through PCP to affect used sales of defleeted models. ‘Despite rising PCP pressures forecast during the plate-change period, and before the planned vehicle excise duty increases in April, we expect the used three-year-old, ex-fleet market to remain buoyant, even with an influx of stock expected soon after,’ added Wright.
T
he plate-change period inevitably sees volumes rise substantially in the wholesale markets, and stock levels traditionally remain high until at least early May. Typically, the market experiences some post-Easter price pressure as consumer finances focus on the summer holidays rather than changing the family car. The dynamics of the wholesale market change as a result and volume sellers should be planning for this with their remarketing partners. From the dealer’s perspective, now is a great time to appraise any over-age stock and get it sold (clearing the decks, as it were). BCA’s Dealer Pro tool can help in this respect, bringing clarity and objectivity to the appraisal and valuation process. Dealer Pro also improves the customer’s experience, increasing confidence with a professional appraisal process that they can see and understand, and giving credibility to the part-exchange value they are quoted. Incoming part-exchange vehicles can be processed fluidly, and allocated to retail or trade as appropriate. It also integrates with other dealer systems to improve overall dealer efficiency, and enables all data captured to be used in any sales channel. The dealer-to-dealer function plugs into existing dealer systems and allows details of incoming part-exchange vehicles to be shared with dealers within a group in real time. As well as helping car dealers standardise their vehicle appraisals, it provides accurate market valuations, captures retail-quality photographs to be used across various sales channels and manages a dealership’s part-exchange inventory and vehicle disposals. All stock appraised on the system can be revalued at the press of a button, using real-time, condition-adjusted market values based on industry-leading data. When market conditions are changing, it is better to be ‘in the know’ than hope for the best!
Who is Simon Henstock? ‚
He is BCA UK s chief operating officer for 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.
102 | CarDealerMag.co.uk
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
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Dragon2000 explains how to handle negative online reviews. bit.ly/reviews-109
Baby, you can buy my car : Porsche’s link to The Beatles Up for auction, a very special motor once owned by George Harrison
A
rare black Porsche 928 S owned by George Harrison was set to fetch £20,000 or more at auction just as Car Dealer was going to press. The ex-Beatle bought the supercar new in August 1980 from Maltin Car Concessionaires in Henley-on-Thames – the Oxfordshire town where he lived – and owned it for four years. The coupe is rare in that it is a ‘base’ black colour with black stitching on its leather interior instead of the more usually seen black/red or black/cream combination. It is being sold by Raj Sedha, from Leeds, who bought the car in 2003 – but didn’t realise the significance of its former owner. He said he got the car – registration JUD 800W – for spare parts but then his wife looked at the paperwork and saw Harrison’s name on the log book. Sedha said: ‘It didn’t click with me. She said it is George Harrison’s. ‘I said, “That’s what the man who I bought it off said. Who is he?” She said, “He’s the Beatle. You can’t take the car apart for spares.”’ The 4.7-litre car, which isn’t
Raj Sedha didn’t at first know the car had been owned by a Beatle MOT’d but does run, has had some restoration work done on it and was expected to fetch upwards of £20,000 at Omega Auctions’ Beatles-centred sale at its Warrington auction room in mid-March. Auctioneer Paul Fairweather said: ‘For anybody that’s into cars and The Beatles, this is a must-have. ‘The 928 is an absolute classic and the fact that it was owned by George for four years from new will ensure that it roars off the auction block.’
Car enthusiast Harrison, who died of lung cancer in November 2001 at the age of 58, was passionate about motor racing. He went to the Goodwood Festival of Speed, and his song Faster – which appeared on his eponymous 1979 album and was released as a single – was inspired by his friendship with drivers including Jackie Stewart, as well as the time he spent with the 1977 Formula One World Championship series.
Vindis sticks with Manheim after ‘consistent performance’ VINDIS has signed a new two-year exclusive remarketing deal with Manheim, continuing a five-year relationship that has seen around 4,500 vehicles sold per year. Vindis Group is a family-owned business with a network of Audi, Bentley, Skoda, Seat Volkswagen Car dealer new and strip ad 3/16 retailers across six counties. In 2016,
the company announced the launch of two Ducati stores. Its part-exchange disposals are sold through Manheim’s Northampton centre. Vindis group sales manager Peter Toop said: ‘Manheim has delivered consistent performance for us. We look forward 14:32 to the next two years of 26/9/16 Page 1 our relationship.’
THE FLEET AUCTION GROUP - THE UK’S
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TRADE ONLY AUCTION
Tim Hudson, managing director of Inventory Solutions, including Manheim, at Cox Automotive UK, said: ‘Continued commitment from our clients is a great testament to our success. Vindis provides a diverse range of quality stock and we are delighted that it is continuing its exclusive sales programme with us.’
MOTORLINE
Group agrees remarketing deal with BCA MOTORLINE has agreed an exclusive remarketing deal with BCA across its 43 sites. The group will remarket more than 200 vehicles a week at BCA’s Paddock Wood site in Kent, with all stock available to BCA Live Online buyers. Motorline is one of the largest motor groups in the south of England, representing 11 car brands including Volkswagen, Toyota, Lexus, Renault, Dacia, Hyundai, Peugeot, Skoda and Infiniti. The managing director of Motorline Group, Thomas Obee, said: ‘BCA offers unrivalled resources and an innovative, joined-up approach to remarketing. ‘We look forward to building an effective remarketing programme that will support Motorline Group’s continued growth.’ The vehicles will be sold every Wednesday at Paddock Wood and will be pre-sale prepared and offered under the BCA Assured scheme with V5, and often a service history and warranted mileage. BCA’s dealer sales director, Dave Burden, added: ‘Motorline Group is a fantastic multi-franchise business that will offer a broad range of attractive stock to our buyers.’
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 | 103
104 | CarDealerMag.co.uk
RECRUITMENT.
VW are true diversity trailblazers One of project’s aims is to inspire young women to consider careers with Volkswagen Group
T
he Volkswagen Group is taking another positive step forward in driving its diversity agenda, spurred on by a successful kick-off event at its head office in Buckinghamshire. One element of a diverse workforce is, of course, an equal balance of men and women. There has been specific focus on inspiring young women to consider a career within the Volkswagen Group; developing and keeping those it already has; and increasing the number of women in senior roles. To boost awareness and engagement, the event, entitled ‘A Day in Their Shoes’, showcased the importance of gender diversity in the organisation, with a number of high-profile guest speakers visiting the Volkswagen Group’s headquarters to talk about the different approach that men and women have in business. Human resources director Penny Burnett said: ‘When an organisation has a truly diverse workforce, it’s more innovative, better at responding to customer needs and ultimately more successful. We’ve been trying to respond to
this for some time now, but change won’t happen fast enough organically. We need to do more to accelerate change and that’s why events like ‘‘A Day in Their Shoes’’ are so important.’ During the day, employees had the chance to listen to speakers and learn more about the different parts of the diversity project. These cover how the organisation is inspiring young women to consider careers in the Volkswagen Group, from schools, colleges and through apprenticeships; developing people to take on more senior roles in future; and keeping employees within the organisation. Speakers included Julia Muir, CEO of Gaia Innovation and Founder of the UK Automotive 30% Club, a voluntary group of MDs and CEOs working to
Penny Burnett: ‘Change won’t happen fast enough organically’
achieve a gender-balanced workforce within the automotive industry. Muir said: ‘I’m delighted to attend the event and to see so many women and men keen to learn more about the importance of a diverse workforce. It is evident that the Volkswagen Group fully understands the business benefits of a gender-balanced workforce.’ Following the event, the Volkswagen Group launched a ‘Take a Step in Their Shoes’ initiative, allowing women and men to pair up and spend some time working with each other to gain a wider understanding of each other’s strengths and skills. The Volkswagen Group will be the main sponsor of the UK Automotive 30% Club Inspiring Women in Automotive event, one of the highlights of CDX17 at Silverstone on May 23, also providing keynote speakers and employees to talk to girls from local schools about the industry. Looking ahead to CDX, p16-17
Available on iPad FREE app download free subscription interactive content Powered by
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MONEY TALKS
..in association with Paragon Car Finance
A tale of two markets New car sales could be heading for saturation, while used cars may well be rejuvenated
J
anuary saw record new car registrations, according to the SMMT, and our own data indicates that the market for new cars over the past six months has been buoyant. This has been a surprise to many, especially given the political uncertainty that dominated the headlines throughout 2016. The question now is: Will this growth continue? Headwinds A number of factors are likely to dampen demand for new car finance through the remainder of 2017. Firstly, it should be remembered that the market cannot continue to grow exponentially and will eventually hit saturation. If we haven’t yet reached this point, then it’s likely we are not far from it. Beyond this, a series of wider, more systemic issues are likely to impact the market. Despite economic indications since the Brexit
Any questions?
vote having been much better than expected, the UK still has a long way to go in negotiating new trading arrangements with the EU and the wider world. The car market is inherently international and until agreement is reached on future trading arrangements, uncertainty will weigh upon the market in 2017. This is likely to be compounded by major eurozone elections this year in both France and Germany. Prices on the up While the UK remains locked in negotiations with the EU, sterling is likely to remain weak. Given that many new cars are imported, a weaker pound will inevitably lead to higher costs. Low interest rates will ensure that any price rises have a limited impact on monthly repayments. However, it is likely that rising prices will contribute to a contraction in the new car
market of between five and 10 per cent in 2017. Silver lining? While a diminished new car market may be bad news for some, the upside will likely be further rejuvenation of the used car market. The strong growth we have seen recently in new car finance is not business as usual and in fact reflects artificially low new car costs created by low interest rates, smaller deposits and a healthier-than-expected post-Brexit economy. With these factors changing in 2017, increasing numbers of people will turn to the used car market. This will be good for brokers as used cars tend to be their bread and butter, with most new cars going via official dealerships. When demand decreases for new cars, however, supply is restricted to the used car market, which could, in turn, put upward pressure on used car prices.
If you have any finance questions relating to the motor industry, please send them to Paragon Car Finance at pcf@paragonbank.co.uk
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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.
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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.
106 | CarDealerMag.co.uk
BPCF13937 (2/2017)
KEY NOTES
..in association with Traka
Avoiding a divorce
Manufacturers and dealers need to work at getting along in 2017, says Paul Smith
L
ike all steady, strong relationships, manufacturer-dealer relations need to be continually nurtured, or pretty soon the cracks of neglect begin to open up. Never is this truer than in tougher times when people are under pressure to perform and have their backs against the wall. There is no doubt that UK dealers start 2017 with a great deal on their plates. Some will seek to innovate their way out of trouble. Others will look to their manufacturers for additional help to grow or protect margins. Will they get that support from their manufacturers this year or instead end up feeling like their chosen manufacturers are batting for the opposition? The jury is out. Some of those dealer pressures are, in no particular order: l Manufacturers bringing in tougher sales incentive schemes, in some cases setting dealers unrealistic sales levels to gain access to bonuses. l Product range expansion: often meaning sales staff are struggling to keep up with an array of different models, trims and options packages. l Confusing mix of technology and digital marketing offerings designed to help increase sales leads, speed up sales pipeline processing and close sales. l Increasing regulation of F&I product sales. l Increasing transparency around pricing in every aspect of the deal. l Increasing penetration of online intermediaries such as Carwow, who can get in between consumers and your dealership – potentially diverting customers elsewhere. l Hugely expensive, technology-heavy, product ‘genius’-staffed dealerships, underwritten by larger or more well-financed groups, often supported by prestige manufacturers, which can potentially take the gloss off the smaller, more
‘regular’ dealership customer experience. l Sales margins remaining low with net profit margins generally well below two per cent I could go on. Dealers are, by and large, working harder for the same or slightly less money each year. So, the one thing franchise dealers should expect and hope to depend on is their chosen manufacturers. Right? However, what has become clear in the past couple of years is that manufacturer-led pressure to sell more stock and/or increase market share has led to tensions. Take the growth of Nissan’s percentage of the US car market – up from six per cent to nearly 10 per cent last year. While impressive, it appears to have come at the expense of pushing some of its franchisees a little too hard. Some have even been forced out of business, according to US trade magazine reports. Could this sales pressure lead to similar sharpelbowed tactics by some manufacturers over here? It is a question that is well worth asking, especially as, after a run of new car sales growth year-on-year for five years in the UK, it looks like we are finally heading for a slow-down. So, if the sales outlook looks to be tightening a little in 2017, could dealers’ prospects be worsened further by manufacturers’ online
sales successes, especially as these will surely take them into more direct relationships with the customer, cutting the dealer out of the loop? In short, will manufacturers’ increasingly slick ‘clicks’ offerings start to do damage to dealerships’ higher-cost ‘bricks’? One example of a new online offering is Hyundai’s new Click to Buy initiative. The worry for one Hyundai dealer I spoke to recently was that over time, these sorts of online activities must take a percentage of their regular sales away. Further disquiet stems from manufacturersponsored ‘new retail’ initiatives, most notably supporting the building of swanky new techdrenched, digital showrooms. Transparency of these manufacturer-sponsored initiatives may be the key to preserving relations here. In short, it is important for manufacturers to explain what level of investment they are offering and perhaps even put in systems for enabling their dealers to apply for some funding of new (and perhaps more experimental) retail offerings. Without this transparency around manufacturer support packages or ‘sponsorships’ being handed out to the chosen few, the seeds of division and dissent will inevitably grow. So, what do both parties need to do to avoid a messy divorce in 2017? Manufacturers may need to be more transparent about their plans, especially when there are potentially negative implications for some dealers unless they make changes to the way they operate. Similarly, dealers may choose to get a little closer to their manufacturers to find out what pressures they are feeling and what online plans they have. They may even be able to help each other find a route to the next stage of growth by leaning a little closer into each other as the winds of change blow in.
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
traka-auto 1-6pg.indd 1
CarDealerMag.co.uk | 107 15/12/2016 09:56
DATA FILE.
James Litton
TRADER TALES
Dangers of a diesel scrappage scheme
I
was recently horrified to discover that we had been ordering the Daily Mail for our customers to read in the waiting area. While I am confident that many of our traditional Volvo buyers subscribe to either the Mail or the Express, our new range of class-leading hybrids appeals to a much wider spectrum of people. We now offer a balance of newspapers with contrasting political views: Telegraph for the Brexiteers, Guardian for the Remainers. My dislike for the Daily Mail was furthered last week when a customer called to ask me what the nitrogen oxide emission level was for his 2015 XC70. I had to ask him why he wanted to know. ‘I don’t want the government taking my car off the road,’ was his reply. I asked him directly: ‘Did you read this in the Daily Mail?’ ‘Yes,’ he replied. ‘I am waiting for my wife in John Lewis and someone has left a copy of it on the café table.’ I would like to think that the general public have become more environmentally-conscious and concerned for the air quality welfare of our children, but to me it seemed like the VAG emission scandal was finally a catalyst (excuse the pun) for the UK’s car buyers to move from diesel to cleaner petrol or alternatively-fuelled vehicles. Whatever the reason, there is real impetus behind the trend we are seeing in which buyers are seeking alternatives to diesel – particularly when it comes to smaller city cars. I would bet that were the XC90 plug-in hybrid more aligned in price to the diesel, we would have a much more balanced order take for this traditionally diesel model group. So what can the government do? Plug-in grants for hybrid or electric vehicles barely offset the premium that manufacturers charge for the technology. Increasing diesel duty at a higher rate than petrol is a very attractive option for the government; it gives them an immediate opportunity to raise taxes while maintaining the premise of environmental considerations. This is fraught with political danger, however – voters will not be very happy with a cynical action such as raising fuel duty. Perhaps the most logical, and most mooted, methodology would be a diesel scrappage scheme. While we may get excited, reminiscing about the last scrappage scheme could be foolhardy. That was introduced as a shot in the arm for the car industry and it had no real negatives. With a diesel scrappage scheme, we have to contend with serious residual value drop-off, used car supply and – as proven above – negative public sentiment.
‘Buyers are seeking alternatives to diesel – particularly city cars.’
Who is James Litton?
James is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 108 | CarDealerMag.co.uk
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W: edynamix.com T: 0845 413 0000 E: enquiries@edynamix.com Info: Our web-based applications provide a connected and simple platform via which dealers can manage a customer throughout the service lifecycle.
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To have your details included here call (023) 9252 2434 and ask for Suppliers Guide listings
guide
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Car Care Plan
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W: trade.autotrader.co.uk T: 0345 111 0002 Info: Auto Trader is the UK’s largest digital automotive marketplace. The marketplace brings together the largest and most engaged consumer audience.
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W: centurionwarranties.co.uk T: 0800 368 7420 E: enquiries@centurionwarranties.co.uk Info: Protection for the road ahead. Are you protected? More than 35 years’ experience in the industry.
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How I got away with a bad bonnet scratch
A
s a manager in a – we’ll keep it unnamed – dealership, I knew which customers would be the big hitters. I’m sure you know them too, the ones who time and time again walk through the doors and part with a fair amount of cash whenever they call in. Once such customer – let’s call him Mr Green – came strolling into the dealership one morning with a seemingly simple problem. The main bolt attaching the windscreen wiper arm to the motor on his £80,000 saloon had come loose, meaning that he – understandably – couldn’t see where he was going in the rain. I quickly resolved the issue by telling Mr Green that I would personally sort out the offending part – I’d spent a while in the servicing department, you see, and felt more than experienced enough to get the job done. Socket set at the ready, I sent Mr Green off in one of our best courtesy cars for the day, confidently assuring him that all would be fixed upon his return two hours later. Settling to the job in hand, I quickly chose the correct socket, and began tightening the problem bolt. However, in my haste to get the work done as swiftly as possible, I lost grip on the socket. It fell and rolled down the entirety of the bonnet, leaving deep scratches along the length of the panel. Worse still, the car had black metallic paint, so the marks were even more apparent. I quickly remembered that in the servicing bays sat an identical car, one which had been dropped off by its owner for a standard service. I drove Mr Green’s car around to the workshop and quickly got two of our mechanics to swap the bonnets over. With the pair fitting the new bonnet as quickly as they could, I nervously sat at the main desk in the showroom, awaiting the arrival of Mr Green. If they couldn’t get the problem sorted in time, there would have been no other option but to ’fess up and lose a valued customer. However, the mechanics did me proud. By the time Mr Green arrived, his – now fixed – motor was sat proudly at the front of the dealership, bonnet completely unmarked. Handing back the keys, I walked Mr Green to his car. ‘Oh, did you polish the bonnet after the work was completed?’ he asked. ‘All part of the service, sir.’
‘The car had black metallic paint, so the mark was even more apparent.’
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LONG-TERMERS. LATEST FROM THE FLEET...
Audi Q7 We say goodbye to a mighty SUV – and come to a conclusion about the car and its competitors. by JAMES BAGGOTT @CarDealerEd
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ost SUVs spend their life hammering up and down the motorway, the closest they ever get to off-roading being when they bump up the kerb outside a school. So before ‘my’ Audi Q7 finally went back to the manufacturer to be de-fleeted and sold on to a new owner, who’d more than likely be doing exactly that, I thought I’d give KU16 MOF a fitting send-off with a challenging trek up the Alps while it was still ski season. As an avid snowboarder, the winter doesn’t mean duvet days and hibernating for me. Instead, I’d rather embrace the chill and throw myself down the side of a large mountain on what can only be described as a tea tray with straps. This strange sport requires copious amounts of kit too, and if you’ve ever been, you’ll know that flying there makes little sense. The weight limits for luggage coupled with the sheer unpleasantness of budget airline flights makes driving to European resorts a far more agreeable option. And what better car to do it in than a Q7? I chatted to the friendly people at Audi and they offered to fit some winter tyres and a ski rack. Sadly, the latter made the Audi just a little too tall for the 185cm height limit stipulated by the Chunnel for my Flexiplus tickets, so I ditched them. The fact the centre seat folds flat meant my ‘tea tray’, plus one of my holiday companions, easily slotted in. The Q7’s boot is huge and swallowed three men’s kit plus supplies for the horrendous one-star apartment we’d booked (another long story) with ease. The 1,500-mile round trip flew by without drama – the comfortable seats, brilliant multimedia system and cruise control all helping the miles fade away. As the flat, boring middle ground of France made way for the glorious snow-capped mountains, the Q7 really came into its own. The Quattro four-wheel drive and winter tyres combination made it simply unstoppable, and with a metre of the cold, wet stuff falling from the sky we were incredibly thankful for that. Back in Blighty, the Q7 resumed normal duties including lugging a bale of straw from a farm to keep the family chickens warm. I have a few grumbles, though. One strange one is an intermittent issue with the Bluetooth,
The Audi Q7 wasn’t fazed by the weather conditions in the French Alps or domestic duties
when it randomly cuts out mid-song. It’s nothing to do with how close my phone was to the system – because believe me, I tried putting it everywhere in the cabin – and was only solved by turning the car off and resetting my phone. It also devoured another 10 litres of AdBlue, its appetite for the mysterious, emissions-improving liquid still residing at around two litres every thousand miles. I honestly think, though, having lived with the Q7 for six months, that it’s the class leader in the large SUV category, beating the once overlord of the sector, the mighty Range Rover. That’s impressive and a real testament to just how accomplished this gigantic Audi is.
THE KNOWLEDGE Model: Audi 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 (combined): 48 Mileage this month: 13,531 THIS MONTH’S HIGHLIGHT Finally realising this is the best large SUV you can buy. CarDealerMag.co.uk | 111
LONG-TERMERS. LATEST FROM THE FLEET...
Lexus NX300 Although some of this car’s clever features seem unnecessary, they’ll soon prove their worth! by REBECCA CHAPLIN @believebecca
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etting hold of the keys to the Lexus NX300h was a real treat and its interior is packed with gadgets and gizmos in our top-spec F Sport model. And that’s why having a handover from local Lexus retailer Snows was a godsend. Who knows how many features might have gone undiscovered if I’d been left to my own devices? Dan Palmer, used car controller for Snows Lexus at Hedge End, near Southampton, showed me all of the features available on the NX. There are plenty of elements that may come across as unnecessary but you’ll soon find you can’t live without them. It’s the little things, such as keyless entry. I’ll admit that even I thought this was pointless previously, exclaiming ‘how lazy can people be?’ As it turns out, I am extremely lazy, and now struggle to function when faced with a car that doesn’t have this feature. For the past few days I’ve been testing a different car where I have to take the key out of my pocket – once I’ve worked out which one it’s in – and press the button before I can get in. It’s been an absolute nightmare... The thing about the Lexus is, unlike some other cars with keyless entry, you don’t even need to touch the door handle or press a button on it to unlock the car. It just knows when you’re near and unlocks itself. If you want to lock it again, all you need do is tap the door handles. Clever! The NX300h is a hybrid and, although that comes with its own virtues and issues, one problem can be the lack of noise. Palmer showed me that this can be altered in the NX with the flick of a switch, enhancing the noise to create a sportier feel. Honestly, this doesn’t drastically improve the quality of the sound though, so I tend to leave it off. One of my favourite features, however, is the 360-degree cameras. The Lexus is covered in them, meaning that you can alter your view by scrolling through the different options. Press the button to the left of the steering wheel and you’ll see a 3D image of the NX300h appear on the screen, turning to show you what is around the car. Continue to press the button and you’ll be able 112 | CarDealerMag.co.uk
Little things mean a lot and the Lexus’s keyless entry is just one of its many fabulous features
THE KNOWLEDGE
to view from the rear, or from all sides of the car – all for varying tight spaces. A final trick that Palmer showed me was the text alerts. By connecting my phone via Bluetooth, my texts can now be read out by the car. Handy in some situations, but I fear that this would tempt most people to respond. That is just a snapshot of what the kit on board can do – particularly those elements that were too well hidden for me to spot. We’ll see over the coming weeks how handy they become!
Model: Price: Engine: Power: Max speed: 0-60mph: Emissions: MPG (combined): Mileage:
Lexus NX300h £38,890 2.5-litre petrol hybrid 141bhp, 210Nm 112mph 9.0 seconds 119g/km 54.3 4,282
THIS MONTH’S HIGHLIGHT Getting the extra-special Lexus treatment from Snows Group!
REST OF THE FLEET
Mitsubishi Mirage
Skoda Superb
Mileage: 5,750
Mileage: 9,340
The best things come in small packages, they say – and although the Mirage might not be the top performer in the compact car stakes, it’s definitely in contention.
This month we’ve been appreciating just how refined the Superb is on long journeys – if not its overly floaty ride quality. Still, for half the price of a similarly roomy Audi A6, it’s hard to complain.
Volvo S90 A super Swede joins the ranks – with a semi-autonomous system that’s been a revelation. by MAL HAY @MalcolmHay
I
t’s little wonder the Swedes consistently rank among the happiest and most content people in the world. As anyone who’s ever been to their country will testify, everything makes sense. The buses and trains always run on time and things just work as they should. Having collected our new Volvo S90 longtermer recently and spent a month or so behind the wheel, many of those national virtues – perfection, precision, common sense – shine through everywhere. And they’re leaving me feeling as happy and contented as, well, a Swede. We collected the new model – an S90 D4 Momentum Automatic in Twilight Bronze – from Poole Volvo, which is one of the brand’s new generation of dealerships. Here, too, everything worked seamlessly and made perfect sense, including the way the cars were displayed in a perfect line to make it easy for customers to compare the range. After arriving and enjoying a freshly brewed coffee, we were taken outside and introduced to the latest addition to our long-term fleet and familiarised with the controls. Having specified a list of options as long as your arm, this took some time. In standard spec, our model would retail at £32,955 but we added around £6,000 of extras,
including a Winter Pack (heated windscreen, steering wheel and washer nozzles and headlight cleaning system), Volvo On Call with App, and a huge variety of safety and comfort features. Laid out like an iPhone, the control interface is simple and intuitive and, once you understand the commands, the voice recognition system works brilliantly. The drive is exceptional, too. The 187bhp diesel engine pumps out oodles of power in an instant and the eight-speed automatic transmission is smooth and responsive. Selecting one of the three drive modes (Economy, Comfort and Dynamic) is totally effortless using the gloriously tactile scrollbar or voice recognition. And the best feature of all – Volvo’s Pilot Assist semi-autonomous drive system with adaptive cruise – comes as standard on every S90 and has been a revelation. It takes a bit of getting used to – you first need to build trust – but on
DS4 Crossback
Seat Ibiza Cupra
Mazda MX-5 RF
Mileage: 7,967
Mileage: 11,177
Mileage: 2,771
A minor recall saw the DS4 pay a visit to a local dealer. It was very brief and the coffee was great! It’s now left the fleet – so this will be its last mention in Car Dealer.
The Cupra has proved to be an able companion on a number of cross-country trips. Its fuel consumption is still a bit of an issue, but that’s a small fly in a very large pot of ointment.
Meeting the latest addition to our long-term fleet has mostly been great, but a cracked windscreen and spine-bending levels of headroom have spoiled the fun slightly.
The Volvo S90 D4 has already proved a popular addition to the Car Dealer long-term fleet motorway journeys and in traffic, having a car that effectively drives itself is a godsend. A few weeks in to having this car on the fleet and I still find myself grabbing every opportunity to take it for a spin.
THE KNOWLEDGE Model: Volvo S90 D4 Momentum Automatic Price: £38,905 Engine: Four-cylinder twin turbo-charged diesel engine Power: 187bhp Max speed: 140mph 0-60mph: 7.9 seconds Emissions: 116g/km MPG (combined): 64.2 Mileage: 1,636 THIS MONTH’S HIGHLIGHT Getting up close and personal with one of Volvo’s latest models.
CarDealerMag.co.uk | 113
BAGGOTT.
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My first day as the new boss of Vauxhall? Here’s what I’d do...
I
magine for one strange, glorious moment, that I am the newly installed boss of Vauxhall. The sale of the second biggest car brand in the UK to its new French owners has finally gone through and Carlos Tavares, PSA Group impresario, has decided change is needed and he’s installed me as the new MD to mix things up. I confused Tavs in my interview by asking why he didn’t get a massive discount for pre-registering the deal 12 months ahead of it going through, so while he’s kicking his financial team for missing that, and the amazing PCP agreement he could have secured, he’s told me to crack on. The delights that lie ahead of me are vast and my to-do list extensive, but plans have had to be made from afar. Obviously, up until this point, I’ve been about as welcome in Luton as a particularly nasty nasal infection, so my hit list of targets has been planned from the outside, looking in. Or, as it’s otherwise known, France. Big Carl has given me an open remit – he’s far too busy weighing up the pros and cons of fabric protection for the factory carpets and ignoring the Vauxhall salesman’s offer of GAP to care. He’s told me to mix things up – create a fusion ‘reminiscent of frogs’ legs and deep fried pizza’ I think he said – referring of course to the famous national dish of Luton. But before I go rogue and drive an Adam into the sea (where it belongs), I need to educate the naming department that they’ve not only spelt Mokka wrong, but that drink names should never, ever, ever be used on cars. Unless you’re Japanese, called Suzuki, and are making another Cappuccino. In fact, I soon realise I could spend a few weeks in the naming department. I’ve never understood why most of them end with an ‘A’ – it makes it sounds like it’s meant to be a question. Astr-a? Cors-a? Mokk-a? Cascad-a? Of course, the answer to all of the above being: No. But before alienating the entire workforce, I need to implement some radical and populist moves. Monster Munch Monday, Turkey Twizzler Tuesday and Wagon Wheel Wednesday will be closely followed by Spam Thursday. I know the last one needs some work, but I’m using it to make a point to the naming department. Friday’s treat is yet to be decided, but I may just give everyone the day off. Because, let’s face it, most of the hard work will now be done in Europe. Next up will be how and what to share across the two companies. Red wine at lunchtime, yes; anything to do with the Crossland X, no. Croissants and cheese, affirmative; anything to
Who is James Baggott?
do with burning Zafiras, absolutely not. More Peugeot 3008; less Meriva. More old-school DS influences, a dash of Citroen Airbump and lashings of French flair. On a serious note there’s a workforce to reassure. The boss man over the Channel has already said even the Vauxhall name isn’t sacrosanct, so there’ll be plenty of worried people out there. While I can’t see a problem ditching a name that’s as tarnished as the railings outside head office, there’ll be a few people that won’t want to see it swapped for Opel, as much as that makes sense. I’ll try to tell them the money we’ll save only making one badge will be spent on Frazzles Friday and we’ll see if my crispbased bribe can’t win them over. I’m sure it will. Over at the factories, I’ve been tasked with working out
James ‘Before alienating Baggott the entire workforce, AGAINST OUR BETTER JUDGMENT, WE GIVE OUR CEO THE LAST WORD EACH MONTH
I need to implement some radical and populist moves.’
how to make ‘efficiencies’. I’ve been told increasing the working day to 10 hours is ‘not allowed’, neither is removing lunchtime, so instead, sharing platforms across the group is pushed up my to-do list. I’ve argued with Big Carl already about shutting the plants down and shifting production to France – I told him it makes far more sense to keep the Opelbuying Brits onside and sharing the love here. He’s on the fence, but when he sees my sweeping changes elsewhere, I’m sure he’ll come round. I love a good challenge, and there’s no doubt Vauxhall is one. It has a lot going for it – well, at least that’s what Carlos thinks – and with a well-documented second-place position in the sales charts, it can’t be denied it sells a few cars. Amazing, I know, so just imagine what things could be like with some fresh thinking, new products and added French flair. Anyway, while you ponder that one, I must dash. I’ve got a to-do list as long as my arm and my PA says I need to head to the press office for a leaving do. For some reason, one of them has found a new job...
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
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