SMTA Auto Insight – Issue 09

ISSUE

009

FEMALES IN FOCUS Join us for this special event

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OVER 800 QMS’ PER ANNUM EXCEEDS DVSA STANDARDS

1. In-depth examination of all aspects of the MOT scheme 2. Structured to suit individual business needs 3. Assist Authorised Examiners to maintain DVSA standards 4. QMS site assessments exceeds minimum requirements as set by DVSA for quality control 5. Protect your income for less than the price of one MOT per month

Why use SMTA QMS? Currently we carry out over 800 QMS surveys per annum! Participation in the QMS programme and adhering to its standards should also substantially reduce the likelihood for DVSA to consider taking disciplinary action against a Vehicle Testing Station.

However, if an incident necessitating this was to occur, then evidence of measures taken by Authorised Examiners to apply standards that exceed DVSA’s minimum standards would be taken into consideration and could lead to a reduction in the severity of any sanction imposed. SMTA members also benefit from free representation and appeals assistance, others will charge you additional costs for this service.

Ask about our QMS service today! E: david.innes@smta.co.uk T: 0778 9264 228

SMTA is proud to support:

CONTENTS COX AUTOMOTIVE Uncertain 12 months ahead

FEMALES IN FOCUS 22 Book your ticket at our females focused lunch

LOW EMISSION ZONES What it means for Scotland

MEMBER PROFILE SMTA speaks to owner Mark O’Malley

COVID-19 STAFF ABSENCES Challenges for employers

MARSH COMMERCIAL Insurance requirement for electric fleet vehicles

LATEST CAR FIGURES Results from April and Quarter 1

TECHNICAL INSIGHT Common faults and checking brake disc run out

WELCOME...

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If you would like to take advantage of advertising in Auto Insight which reaches all SMTA members and beyond to approximately 5,000 sites across Scotland, or have an article you would like to discuss for publication contact: Wendy Hennessy Email: wendy.hennessy@smta.co.uk For details of all up and coming SMTA events please contact: Karen Thompson, Events & Media Manager Tel: 0131 331 5510 or Email: karen.thompson@smta.co.uk

...to the latest edition of the SMTA’s AutoINSIGHT magazine, you will no doubt be wondering about the rather unusual front cover design! We have chosen to highlight Westminster as we have undertaken to challenge the UK Government on recent announcements made by the Secretary of State for Transport Grant Shapps, to the Cabinet about abolishing the need for the annual MOT test and moving the process to a bi-annual one!

This was in response for a round table “how can we save the electorate money” question! It was extensively reported and there was lots of noise around the media about it at the time and whilst it has gone quiet for now, we must keep the pressure on them to ensure that they do not consider this foolhardy move, or at least not without fully understanding the true impacts of the savings which would simply be eroded completely with increases in repair bills to the UK vehicle owners as a direct result of them moving to the two-year option.

I have written to Mr Shapps and Alister Jack the Secretary for State for Scotland requesting an opportunity to educate them as to the challenges faced by MOT testers on an annual basis never mind a bi-annual one, in doing so I have suggested that they may wish to attend a MOT Testing Station with me to see a number of tests being carried out and allow them to experience some of the component failures that exist on vehicles using our roads, I await a response from both!

Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS SMTA Ltd Tel: 0131 331 5510 | Scotsure MBI Ltd Tel: 0131 331 5512

www.smta.co.uk

Sandy Burgess FIMI Chief Executive, SMTA sandy.burgess@smta.co.uk

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MARKET INSIGHT

by Philip Nothard Insight & Strategy Director, Cox Automotive

FURTHER HEADWINDS AS SECTOR FACES UNCERTAIN 12 MONTHS Philip Nothard, Insight & Strategy Director for Cox Automotive, reveals the headwinds the industry is facing this year, how this is impacting the new and used markets, and what this means for sales.

The sector has had a tough time in recent months. However, industry experts – Cox Automotive included – were optimistic for a slow but steady recovery throughout the year, with supply returning and price rises settling down. Still, as we learned with COVID-19 and now the distressing conflict in Ukraine, you can never truly predict what will happen.

Setting geopolitical issues aside, the first quarter of 2022 has shown that vehicle volumes will not return to pre-pandemic levels any time soon as semiconductor and raw material shortages continue to grip manufacturers worldwide.

And even if supply improved, would the consumer demand be there?

The rising cost of living is having a profound effect on millions of people across the UK. Rising inflation, energy prices, and interest rates create a perfect storm that will leave most households with less money to spend.

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Cox Automotive predicts that the automotive market may never return to pre-pandemic levels as new and used vehicle sales continue to be hit by several headwinds. As a result, we have downgraded our new and used car forecasts to reflect the current state of the industry and ongoing challenges.

I believe businesses should look to adapt and transform existing operations to meet changing customer requirements and demonstrate flexibility. And while profit opportunities still exist from the manufacturer to the end retailer, businesses must be operating very smartly to seize them.

ANOTHER BLOW TO NEW CAR RECOVERY HOPES We entered the new year knowing that new car supply would remain constrained for the foreseeable future but hopeful of a smooth and progressive recovery throughout the year as semiconductor and raw

material supplies steadily returned.

However, with the appalling conflict in Ukraine impacting the automotive supply chain and the entire logistics and distribution network, that recovery looks murkier than ever.

None of us foresaw the Ukraine conflict at the start of the year, but it’s added an additional layer of risk to the market, and as a result, Cox Automotive’s predictions for the year must be revised.

But even without the Ukraine crisis, Cox Automotive would have been looking at a revision to the forecasts.

At the same time, there have been anecdotal reports that manufacturers have begun to fulfil orders from a supply-starved leasing sector and even reports of tactical registrations (albeit nowhere near pre-pandemic levels), supply has not picked up in the volumes anticipated.

Much of the registration activity in quarter one came from the longawaited fulfilment of orders made 12

or even 18 months ago, which is likely to be the case going into quarters two and three. However, there are also reports of this year’s order books already being full, so it’s clear the backlog of orders will only grow, and new orders won’t turn into actual registrations until at least H2 2022 or even into 2023.

Many of the cars eventually rolling off the production line are missing specifications such as touch screens, heated seats, and sat-nav.

This workaround is a short-term solution many manufacturers are implementing due to the ongoing semiconductor shortage but means consumers are often compromising on what they initially wanted in order to receive a car they ordered over a year before. The effect of this on residual values is as yet unknown. Still, there will inevitably be a consequence when cars manufactured during this period compete with correctly specified cars in the used market several years from now.

REVISED NEW CAR FORECASTS As a result, Cox Automotive has adjusted its new car forecasts for 2022, with the latest projections published in AutoFocus. Its baseline scenario sees Q2 2022 end on 436,286 registrations, a reduction of -9.9% down year-on-year, while Q3 2022 is now predicted to end on 483,433 registrations, a +22% increase yearon-year. In addition, Cox Automotive expects the baseline scenario for the full year to end on 1.65 million registrations, a +0.2% increase yearon-year, but a -13.8% downgrade on its previous forecast at the start of the year.

IS THE USED CAR BUBBLE ABOUT TO BURST? For two years now, the used car market has enjoyed a period of unprecedented performance.

Consumers who have grown tired of lengthy wait times on their new car

orders have increasingly turned to the used market, driving record demand levels and, in turn, trade values.

However, a market like this can’t last forever, and although we do not expect performance to drop off a cliff, could the bubble be about to burst?

Current signs indicate it could be.

Consumer confidence is weakening, with the UK consumer confidence index showing a five-point drop to -31 index points in March, its lowest reading in 17 months. This indication that consumer spending appetites are waning should come as no surprise: inflation, soaring energy costs and national insurance hikes are causing a massive rise in the cost of living.

The knock-on effect on the used car market is inevitable.

The used vehicle market remains crucial at a time when new car supplies face further pressures.

Dealers will continue to rely on their used car programmes to support their businesses while they simply cannot

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get the new cars they need. The used market remains a crucial area of growth and investment for many, whether from current players or new disruptive entrants.

As always, used car supply relies heavily on the new vehicle market.

But while today’s used car market is demand-driven, there remains continual pressures on new car supply, and this is having an impact on the used vehicle parc. The result could be a supply-driven used car market that sees prices maintain their current record levels or increase further.

But for the time being, the market is coping extremely well and has demonstrated resilience to these external pressures, with 7.5 million used car transactions in 2021. Although this may not have necessarily been a result of strong retail demand, nevertheless it’s a positive result compared to 2020.

Consumer demand still exists, but the effect that reduced consumer

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confidence will have on the market remains to be seen. At least for now, retailers are seeing increased stock turn and a desire from consumers who are not prepared to wait the lengthy lead times to buy a used vehicle instead – but this could all be about to change.

REVISED USED CAR FORECASTS Due to a combination of the headwinds mentioned previously, Cox Automotive has also adjusted its used car market forecasts for 2022, as first seen in the latest edition of AutoFocus. Its baseline scenario sees Q2 2022 end on 1.91 million used car transactions, a reduction of -11.9% year-on-year, while Q3 2022 is now predicted to end on 1.95 million transactions, a -4.2% decrease yearon-year. In addition, Cox Automotive expects the baseline scenario for the full year to end on 7.41 million transactions, a -1.6% decrease yearon-year, and a -1.3% downgrade on its previous forecast.

MORE INSIGHT FROM COX AUTOMOTIVE At Cox Automotive, we are firm believers that businesses must be well informed of the market dynamics in order to make the best decisions for the future. That’s why we’re committed to bringing you the insight you need to make better business decisions through the likes of our annual Insight Report and our quarterly AutoFocus.

To keep up to date with the latest Cox Automotive insight, visit: www.coxautoinc.eu/fuel

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DISAPPOINTMENT

We are delighted to be able to hold our second Females in Focus lunch this year at Grand Central Hotel in Glasgow on Friday 19th August 2022.

This lunch aims to bring together women (and men!) from all across Scotland all with an interest in the Scottish motor trade to listen to our panel of inspiring women and also enjoy a delicious lunch.

We are excited to confirm that Heather Dewar, sports journalist, tv and radio presenter will once again host our event.

Guest panellists include Louise Aitken-Walker, former British rally driver. Louise’s career began in 1979 when she was entered in Ford’s ‘Find a Lady Rally Driver’ competition, without her knowledge, by her two brothers and was a winner from 2000 entrants. It spanned fourteen years up to 1993 when she retired to have a family. During those years she was the first woman to win a National Rally outright, survived a horrific crash in Portugal and became the first, ever British driver to win a world title – FIA Ladies World Rally Champion.

Cat Treanor a Certified Automotive Engineer who now works for Electude UK, Cat is very passionate about encouraging diversity in the automotive industry and regularly presents at industry events worldwide to showcase the importance of equality in the trade and sharing her experience.

At this event we will present the ‘Nan Lindsay Award’, an award set up in the memory of our first and only female President of the SMTA. This award is for an inspiring female in our industry who has made a positive contribution to the automotive industry.

If you work beside an inspiring female who you think deserves recognition for her success, please visit our website for a nomination form.

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BOOK YOUR TICKETS

SPONSORSHIP OPPORTUNITIES

Tickets are now available at £60 per person with reductions available for tables. Please email:

If you would like to support this event or would like the details of all SMTA sponsorship opportunities contact:

karen.thompson@smta.co.uk

wendy.hennessy@smta.co.uk

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MARKET INSIGHT

NON GENUINE AGENCY CONTRACTS ARE POTENTIALLY AN ANTI-COMPETITIVE PRACTICE Many automakers are turning towards agency sales models, this to combine the strengths of their widespread network of independent dealers with the benefits of more tightly managed sales processes and direct customer access.

In theory, manufacturers are free to decide upon which distribution model to unroll, however, they shall respect and comply to contractual obligations of that particular distribution model put in place.

In other words, they are not allowed to combine different models and taking advantage out of each particular system.

CECRA notices a trend towards manufacturers opting for an agency model. This agent model consists of appointing a ‘sales agent’, who acts in the name of and on behalf of a manufacturer called the ‘principal’. The role of the agent consists essentially in taking orders from customers and forwarding them to the manufacturer who then delivers directly to the customers at the price fixed by the principal. All financial risks and investments are borne by the ‘principal’ (manufacturer).

This model also labelled as genuine agency contract. Called genuine because of them being outside of the scope of the competition legislation which is designed for regulating business conducts of independent parties. A ‘genuine’ agent is not independent from the manufacturer Should the agent’s responsibilities go beyond an ‘insignificant’’ financial and investment risk (also known as ‘nongenuine’ agency contract), the position being exempted from competition legislation will be lost. Consequentially, under such a ‘non-genuine’ agency contract, the manufacturer is not allowed to fix the end-customer price. In this

aspect the non-genuine agency is very similar to a distribution model, where the financial risks and investments were to a great extent supported by the dealers and the dealers were basically free to set the final end-customer prices.

CECRA warns manufacturers, they shall be fully aware of this and take into account all the aspects and obligations an agent contract implies. Although, as said, there are strict rules to comply with, we see some manufacturers becoming imaginative and a number of scenarios are emerging.

We are informed that some manufacturers try to play a ‘cherrypicking game’. Some manufacturers have ‘proposed’ to their actual dealers to switch to non-genuine agent contracts by which the ex-dealers would have to continue bearing significant investments and risks, and the final price would not be entirely fixed (e.g. letting the final price to the customer fluctuate by a few dozen euros, this being the possible waiver of commission from the agent to the final customer). This amount would obviously be derisory and would certainly not make it possible to consider that the manufacturer does not control the sales price to the final customer and can therefore dispense with assuming the commercial and financial costs and risks.

In the absence of an effective possibility for “agents” to give up a significant part of their commission, there is a risk that the competition authorities will consider that

there is a de facto situation of imposed resale price, which is a black clause in the current Block Exemption Regulation and will remain so in the future draft regulation as well. The European Commission is well informed about these practices and is following it up closely.

CECRA therefore considers that from a legal point of view, this system of “false” agent contracts does not hold water and presents serious risks both for manufacturers who would like to follow this path and - even if to a lesser extent - for distributors who sign “false” agent contracts who could thus become (against their will since the distributors would have been forced to sign these contracts under penalty of termination of their relationship with the brand concerned!) stakeholders in an anticompetitive practice and thus potentially exposed to fines!

Economically, manufacturers should not ‘offer’ contracts to their partners if they know that the proposed business model is not viable. CECRA is not per se opposed to the use of genuine agent contracts which can have positive elements for both manufacturers and current dealers but: “Whatever distribution model manufacturers will unroll, one fundamental aspect is that whether it is a distributor or an agent, they need an economic viable business model, otherwise the future of distributing, repairing and maintaining cars will be disrupted”. www.cecra.eu/news

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THE LOW DOWN ON SCOTLAND’S LOW EMISSION ZONES From 2022, LEZs will be introduced in Aberdeen, Dundee and Edinburgh, and extended in Glasgow to include all vehicles as part of the Phase 2 scheme design.

Glasgow will apply a 1-year grace period however, which means that practical Phase 2 enforcement will not start until 1 June 2023.

The Scottish Government is committed to introducing Low Emission Zones (LEZ) in Aberdeen, Dundee, Edinburgh and Glasgow to improve air quality and to meet the requirement of both domestic and European air quality legislation. The Transport (Scotland) Act 2019 provides legislation to create and enforce the LEZs. The Low Emission Zones (Emission Standards, Exemptions and Enforcement) (Scotland) Regulations 2021 and, The Low Emission Zone (Scotland) Regulations 2021 both came into force on the 31 May 2021.

The local authorities for each city will use these regulations to design, introduce and operate LEZ specific to their own requirements.

It is confirmed that: ● Low Emission Zone entry will be based on the Euro emission engine classification standards – the confirmed minimum criteria is: ● Euro 4 for petrol cars and vans (generally vehicles registered from 2006*) ● Euro 6 for diesel cars and vans (generally vehicles registered from September 2015*) ● Euro VI for buses, coaches and HGVs (generally vehicles registered from January 2013*)

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Mopeds and motorcycles are out with the scope of the current LEZ for Glasgow, Edinburgh, Dundee and Aberdeen *These dates are only indicative - please check with your vehicle manual or the manufacturer to confirm.

When planning a vehicle journey to one of the four Scottish LEZs, please check your vehicle against the Scottish vehicle checker, available here.

Low Emission Zones operate continuously, 24 hours a day, seven days a week, all year round (including all Public Holidays such as Christmas Day and Boxing day).

compliant vehicle is detected a Penalty Charge Notice (PCN) is issued on the registered keeper of that vehicle: The initial penalty charge for all noncompliant vehicles is set at £60, reduced by 50% if it is paid within 14 days.

The penalty amount doubles with each subsequent breach of the rules detected in the same LEZ. The penalty charges are capped at £480 for cars and light goods vehicles and £960 for minibuses, buses, coaches and HGVs. Where there are no further breaches of the rules detected within the 90 days following a previous violation, the rate is reset to the base tier of charge i.e. £60.

Automatic Number Plate Recognition (ANPR) cameras will be used, which are linked to local and national vehicle licencing databases, to monitor all vehicles driving in a Low Emission Zone.

They will detect vehicles which do not comply with the minimum Euro emission standards.

Some categories of vehicles will be exempt from Low Emission Zone requirements. These include:

The design, implementation and operation of Low Emission Zones will include grace periods for commercial fleet operators and private vehicle owners to give vehicle operators and owners time to prepare before the enforcement stage commences.

● Military vehicles

Low Emission Zones will be enforced using a penalty notice approach, to discourage non-compliant vehicles from driving into the zone. When a non-

Vehicles for disabled persons (including Blue Badge holders) ● Police, Fire, Ambulance and other emergency service vehicles

● Historic vehicles ● Showman’s vehicles Each year, local authorities will publish a report on the effectiveness of Low Emission Zones.

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S E N S O R S & VA LV E S

THE GES COMPETITION WINNERS ARE: John Russell and Mark Young of ‘Russell & Young Auto Specialists’ at Unit 2, 184 Clydesdale Street, New Stevenston, ML4 2RS. Established in 2020, these local and experienced mechanics guessed the correct answer – “European On-Board Diagnostics” – which won them the most expensive prize yet, worth a whopping £799.

Pictured left to right: Mark Young, Norman Stirling, Niall Farmer and John Russell

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ADESA UK AND AUTOMOTIVE TRANSFORMATION GROUP COLLABORATE TO HELP DEALERS SELL OVERAGE STOCK ADESA UK, a digital remarketing specialist, has collaborated with omnichannel, data, insight and technology provider Automotive Transformation Group, to deliver a digital aged stock solution that will make it faster and more efficient for dealers to sell their overage stock online.

UK dealers using Automotive Transformation Group’s services now have the option of listing used vehicles from their retail inventory on ADESA UK’s digital-only UPSTREAM platform, in a move to help them trade-out overage stock.

Automotive Transformation Group’s analysis of dealers using its NetDirector® Auto-e platform found 46% of used stock is sold in the first 30 days of being listed.

However, this percentage drops to 25% for 31-60 days, 16% for 61-90 days and just 13% for over 90 days.

“In a changing retail landscape, the need to implement an overage strategy for cars listed over 30 days is paramount, so we’re delighted to be working with

Automotive Transformation Group to deliver a digital solution to help dealers achieve this,” said Jonathan Holland, Managing Director of ADESA UK. “By making these vehicles available to other dealers, at the same time as retail customers, they are able to maximise their sales opportunities, make their cash work smarter and improve stockturn.

The service is already being used by franchised dealers and is enabling them to carefully manage their overage pricing and stocking strategies – with strong results,” he said.

Commenting on the partnership, Paul Hilton, Sales Director at Automotive Transformation Group, said: “We are pleased to be

working with ADESA UK to provide our customers with an automated solution to support their remarketing strategy. The integration delivers a technology-led solution to overage disposals, enabling dealers to improve inventory management and focus on their core retailing activities.”

ADESA UK, a subsidiary of KAR Global, is a specialist online vehicle remarketing provider for OEMs, fleet and leasing companies and dealers, using a combination of industry expertise and cutting-edge digital technology to transform the way used vehicles are bought, sold and processed.

To find out more visit www.adesa.co.uk or call ADESA UK on 0344 2255 477

About KAR - KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services, including the sale of nearly 2.6 million units valued at over $40 billion through our auctions in 2021. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in about 75 countries. For more information and the latest KAR Global news, go to www.karglobal.com and follow us on Twitter @KARspeaks.

MARKET INSIGHT

AUTOMOTIVE AFTERMARKET UNITES TO FIRE UP THE TALENT SHORTAGE CONVERSATION AT TALENT RECHARGE In March, over 200 senior leaders from OEMs, dealer groups, independents and the tyre, paint and body sectors united alongside automotive industry trade bodies and representatives from the education sector at the inaugural Talent Recharge: ‘How to gain, train and retain talent’ event.

Representatives from across the UK descended upon the world class Red Bull MK-7 in Milton Keynes for the event, which was hosted by Autotech Group.

The aim? To kick start the industry’s talent shortage conversation and tap into the shared desire to shift up a gear to successfully attract and develop the workforce of the future.

interactive roundtable and panel discussions to help delegates devise and deploy successful long term talent strategies. Speakers included former McLaren Formula 1 team mechanic and seasoned automotive broadcaster, Marc ‘Elvis’ Priestley, who spoke about the need to create a culture which is welcoming, inclusive and energising.

With competition for staff and skills intensifying across the labour market, the timing of the event was auspicious as the need to unite as an industry to create solutions has never felt more urgent. In fact, an interactive poll which ran during Talent Recharge 2022 revealed that current talent strategies are not fit for purpose.

Recruitment advisor and entrepreneur, James Osborne facilitated the event and commented: “We need to think differently if we want to stand out from the crowd.” Easier said than done in the automotive industry – but we are working within a rapidly depleting pool of talent so unless we begin to think differently in our efforts to attract and retain talent, we will continue to lose talent to other industries, and struggle to create opportunities for a new generation.

Over 75% of employers felt that recruitment had become even more difficult following the pandemic, and 45% admitted that the skills shortage had cost their business over £100k in the last 12 months alone.

The venue, charged with the energy of the 200 plus delegates who attended, provided the ideal surroundings for the event, which saw a line-up of influential speakers, along with

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While the morning focused on the trade, the afternoon session brought together senior leaders from the automotive industry with the education sector, specifically people who are responsible for their college’s automotive offering.

During the afternoon, VW Commercial Vehicles’ Paul Anderson joined Ford UK’s Sarah Brettle, Fix Network World’s David Lingham, Kevan Wooden from Euro Car Parts, and Catherine Treanor CAE MIMI from Electude to run a panel debate. This provoked discussions and provided some inspiring ideas on how the automotive industry and FE colleges could work together to “rewrite the playbook” and step up their efforts in securing future talent for the industry.

Essentially, greater cohesion is needed between the automotive industry and FE colleges.

While workforce challenges may get worse before they improve, what was noticeable from Talent Recharge was the united realisation across the aftermarket that SOMETHING needs to be done. For too long, the industry has been held together with a precarious sticking plaster which now needs to be torn off. In the words of Autotech Group CEO, Gavin White, “The future starts today.” www.autotechgroup.co.uk

D V S A U P D AT E

REVIEWING THE AUTHORISED EXAMINER DESIGNATED MANAGER (AEDM) ROLE The role of a trained person to manage MOT garage activities was first introduced in 1995 and became known as the Authorised Examiner Designated Manager (AEDM) in 2005.

The AEDM’s role is really important, as they make sure that garages have the right approach and checks in place to maintain MOT test standards and procedures. After consultation with the MOT industry, we’ve been working to make the responsibilities of the AEDM clearer.

As part of these changes, we’re also going to make the Authorised Examiner Principal (AEP) a formal role on the MOT testing service (MTS). New AEPs will get access to MTS for the first time and be able to see data relating to their Authorised Examiner (AE) and Vehicle Testing Station (VTS) records.

MAKING THINGS CLEARER We’re making changes to the AEDM position so it’s clearer what the AEDM is responsible for. This will help people that carry out the role to be more effective. By making these changes, we’re recognising the importance of the AEDM role in the MOT service.

We know there is currently some confusion about who manages the AEDM role in a garage. It may be that the wrong person in the company has been trained for the job, or they’re not clear about what the role involves.

Some AEDMs are not accessing MTS, which means there are times when they’re not monitoring the MOT activities or they’re delegating the AEDM work to others.

This can lead to a lack of engagement

by AEDMs, which affects the level of

management and supervision in the MOT station.

EXPANDING WHO CAN BE AN AEDM To address this, we’re changing the eligibility of the AEDM role.

It can now be held by either: ● An AEP ● A senior manager in the business This means that the AEDM no longer has to be an AEP, opening opportunities for more people to perform the AEDM role.

BETTER EXPLANATION OF THE AEDM ROLE We’ve updated the MOT testing guide to define the tasks and responsibilities of the AEDM role, as well as other roles in the MOT testing service.

We hope this will give you a clearer description of the roles and how they fit into the MOT testing service.

It’s important you have a look at these descriptions and familiarise yourself with them.

Doing this will give the AEP access to MTS, which is a new feature we’re adding. AEPs will get to see data relating to their AE and VTS records.

FURTHER CHANGES We’ll soon be consulting with the industry on further proposals for the development of the AEDM role. This will cover: ● Appropriate and proportionate sanctions ● Restrictions on the number of AEs an AEDM can represent ● Annual training and assessments for AEDMs We’ll also look at how we can improve the other role descriptions in the MOT service.

We’ll blog more about these upcoming changes in the next few months. In the meantime, please leave any questions you might have below and we’ll get back to you.

Courtesy of DVSA

ACTION YOU MAY NEED TO TAKE MOT garages who make a change to their approval (for example by adding or removing an AEP, or changing their AEDM) will need to complete a VT01 form. Each AEP will also need to create a personal account on MTS.

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MARKET INSIGHT

by Nona Bowkis, Legal Advisor at Lawgistics

LIFE AFTER LOCKDOWN: DISTANCE SELLING & SECRET COMMISSIONS The Scottish motor trade has been through a challenging time with the various COVID-19 lockdowns and, are now pretty much through and out the other side.

At the time of writing, face masks in indoor retail environments will be no longer mandatory as of 18 April 2022.

This will put Scotland in the same position as the other UK nations, i.e. with mask wearing in indoor retail areas as guidance only. It will be for individual dealerships to decide if they want members of the public to continue wearing masks.

Another feature due to COVID-19 has been the increase in Distance Selling and many dealers have decided to carry on advertising and selling vehicles under these rules. The Distance Selling rules emanate from The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. These Regulations basically give a consumer 14 days to change their mind about an item they have agreed to purchase before physically setting eyes on it. For dealers, this means that if a deal is agreed over the phone or via a website, the customer can change their mind and get their deposit, and any other money paid, refunded. Of course, these Regulations, like other consumer laws are not really fit for purpose within the motor trade. However, dealers can make the Regulations work for them by

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setting terms and conditions such as making a deduction for each mile driven beyond that of test drive mileage and making it the consumer’s responsibility to return the vehicle if they choose to seek a refund under these rules. Such terms need to be given to the consumer at the time of the deal and Lawgistics have a free template available on request for any dealer who wants to use a motor trade friendly set of terms which will help them minimise any losses on any transaction deemed a distance sale.

Of course, during these times where economic conditions for households have taken a dip, it won’t just be dealers who are looking to minimise outlay and increase income. We do expect to see more consumers try and get refunds based on plain and simple “buyer’s remorse” and also looking for dealers to pay for repairs. Point of sale MOTs, predelivery check paperwork, and getting feedback from customers once they have had the vehicle for a few days are all helpful ways to help prove that any later reported issue, was not present at the point of sale. If an issue wasn’t

present at the point of sale, a dealer shouldn’t have any liability.

One final way consumers are currently trying to get some more cash in the bank is by putting in claims for “secret commissions” on finance deals. We are now seeing hundreds of these type of claims being sent to our dealers and currently, we have successfully fought off every single claim. Many are speculative, and in most cases, it will not be the dealer who has to pay anything back as dealers are more likely to be the broker and not the finance provider. However, as we defend each point thrown at our dealers, the Claims Management Companies, who some may call “ambulance chasers”, try and come up with new points for their arguments. So far, we have kept our dealers away from having to make any payments and we expect it to stay that way. So, if a letter of this nature hits your desk, do take advice before paying off any of their demands.

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MARKET INSIGHT

by Richard Gardiner Partner at Thomson Cooper

THE END OF THE ROAD: READY TO EXIT THE BUSINESS? As we move from the uncertainty of COVID to an increase in the cost of living and a global economy struggling to cope with the war in Ukraine, some motor dealers may be considering their exit strategy or retirement plans.

In a previous article we explored the valuation of the motor dealers’ business.

Here we consider the next stage where you are selling your business and, in particular, how to extract your hardearned cash in a tax efficient way. Tax is calculated based on either receipt of capital or revenue with both having distinct tax treatments. If you are selling your business or retiring and closing the business you may benefit from capital treatment through Business Asset Disposal Relief (BADR) (previously known as Entrepreneurs’ Relief (ER)).

WHAT IS BADR? The relief was designed to be an incentive for entrepreneurs to start a new business by reducing the amount of capital gains tax payable when the time came to dispose of the business. The capital gains tax rate when you dispose of any ‘qualifying asset’ is 10%. This is a reduction in the rate of capital gains tax rather than a capital gains tax exemption and is a very attractive proposition. There is no limit to the number of times you can claim BADR but the relief is subject to a £1m lifetime limit on gains.

WHO CAN CLAIM IT? The relief is available to individuals disposing of their personal businesses or interests in a partnership, as well as

20 WWW.SMTA.CO.UK

directors and employees selling shares in the limited company they work for.

QUALIFYING CONDITIONS Three conditions usually apply when it comes to disposing of any shares or securities, for the two years leading up to the date of disposal. ● the company’s main activities need to be a trading company or a holding company of a trading group. ● you need to be employed by the company or hold an office within the company to qualify. ● you must hold at least 5% of both the shares and voting rights in the company.

If the company stops trading, you must dispose of the shares within three years to be eligible for BADR.

THE CALCULATION Where the only profit you make in a tax year arises from the disposal of any business asset or your business itself, and qualifies for BADR, only one capital gains tax rate applies. The gain is calculated and the annual capital gains tax allowance, which is £12,300 in 2022/23, is deducted which further lowers your tax bill. Once this allowance has been applied, the capital gains tax bill will be 10% of that final figure.

By way of an example, we were approached by a husband and wife, who each held 50% of the shares in a company which operated a garage. They had sold the shares held in their company. The sale proceeds of the shares were £250,000. All qualifying conditions were met and both husband and wife qualified for BADR. CAPITAL DISPOSAL: 50% share of proceeds Annual CGT exemption Amount taxable Tax payable at 10%

£ 125,000 (12,300) 112,700 11,270

Both husband and wife received £125K and have tax payable of £11,270.

This is a very effective tax relief and is widely used. However, it is essential to ensure that all qualifying conditions are met and to seek advice prior to any thoughts about selling or retiring from the business.

When limited companies are being sold, often the new owner purchases the trade and assets from the company. This leaves the shareholders with a company that is no longer trading and has assets available to distribute. Can the shareholders still gain the tax advantage of having the proceeds received being taxed as capital?

The answer is more than likely yes, but will involve putting the company into a Members’ Voluntary Liquidation (MVL).

WHAT IS AN MVL? An MVL can only be carried out by a Licensed Insolvency Practitioner and the company needs to be solvent and capable of paying all creditors within 12 months. Although the formalities of an MVL need to be met this is a common process for Insolvency Practitioners.

The Directors are initially responsible for calling a Meeting of Directors to resolve to wind the company up and agree that a Declaration of Solvency (DOS) should be signed in front of a Solicitor. The DOS is a statement disclosing the assets and liabilities of the company and should demonstrate that the company is solvent. A majority of the Directors are required to sign the statement to declare that the company is solvent and that all creditors will be paid within 12 months.

The Directors are then responsible for calling a General Meeting of the Members (shareholders) in which the shareholders resolve to wind the company up and appoint a liquidator.

This meeting is generally called on 14 days’ notice, but this can be waived and held at short notice if sufficient shareholders agree. The Insolvency Practitioner will guide the Directors through the process.

to retain the garage personally and rent to a new dealer who doesn’t have sufficient funds to buy the property at the same time as the trade.

The Liquidator will require to seek tax clearance before the liquidation is brought to a close.

AND FINALLY Selling a business or deciding to cease trading is a complex area. Taking professional advice and having a plan is essential to ensure that full advantage is taken of the tax planning opportunities that may exist.

www.thomsoncooper.com Richard Gardiner is a Licenced Insolvency Practitioner and a partner at Thomson Cooper with offices in Dunfermline and Edinburgh. He is head of their corporate recovery and debt solutions department. He manages a team of managers and support staff who offer the complete spectrum of personal and business debt solutions available under Scottish legislation.

Once the Insolvency Practitioner is appointed, they will ingather the company assets, which are typically cash at bank but could also include stock, property, investments etc.

They would then settle any remaining creditors. Once the liquidator is satisfied that there are sufficient funds remaining, they will make a distribution to the shareholders. It is this capital distribution that forms the basis for BADR. In most cases the Liquidator can distribute an asset ‘in specie’, (in its current form) this could be the premises in which the trade operated or a motor vehicle. The assets must be transferred at market value but it may, for example, allow a motor dealer

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21

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MEMBER PROFILE

M&A Automotive

SMTA SPEAKS WITH MARK O’MALLEY

OWNER OF M&A AUTOMOTIVE (GLASGOW) SMTA How did you come to start up?

MO

Car sales is something I have always done from a very young age normally partnered with someone else but in 2013 decided to go on my own and start looking for premises.

SMTA How has the business grown since then?

MO

Things have progressed well, I started off working from home like most businesses do then quickly over a year, it then progressed into a small industrial unit in Whiteside Industrial Estate, then into two

24 WWW.SMTA.CO.UK

parts needed or dealing with any other repairs needing done. Myself and Jazz would be dealing with customers coming in and out and I would also be on the hunt for new stock. It can be a very busy day for everyone!

units and another two unit, then into small yard. In 2018, we moved into the much larger unit and yard we’re in now.

SMTA Can you run me through a typical day?

MO

A typical day would start with a coffee with the team discussing the day ahead choosing cars in line for preparation. My two sons, Marcus and Callum and ‘Young Ian’ would be busy valeting getting the cars all spick and span. ‘Big Ian’ our in-house mechanic (Young Ian’s Dad) would be checking over sales cars, ordering any

SMTA What’s been the highlight of your business so far?

MO

The highlight of our business is how it’s grown over the years, but most of all is seeing how my two sons have settled into a proper working environment, straight from school and how the garage is a happy and familiar place for them to be.

minuscule in comparison to all the services and partner companies we have been introduced to or are involved with. A few examples are Scotsure Warranty - a wonderful service we issue on average 7-10 warranty’s every week they give reassuring peace of mind to our customers. The team there are fantastic! I’ve used many warranty companies over the years and would highly recommend Scotsure to anyone as they’ve been absolutely brilliant for us.

SMTA What’s the one thing your business couldn’t function without?

MO

Probably the one thing our business couldn’t function without is the staff here, it’s a real team effort and obviously the customers as well as without them we have no business!

SMTA What’s the best thing about working for yourself?

MO

The best thing about working for yourself is you get out what you put in.

Other services we use are, Trading Partners - Viking and Easytyre are impossible to beat, Bestplate for the number plates and key rings. Motor trade and garage insurance, and the supply all the garage equipment - the list goes on and on!

SMTA And the hardest part?

MO

The hardest part I’ve found especially over the last few years is trying to stay competitively priced. I know it’s the same for everyone but as everything from fuel to electricity is going up and most of all the price of second-hand cars themselves - it can sometimes seem almost impossible to see any mark-up sometimes, however it’s better to see a small bit of something rather than a big bit of nothing.

I wish when I first started out that I knew more of the people so I could have some helpful contacts in the business I now know when starting up, it is hard no matter what anyone says. It is both physically and mentally demanding and it’s totally understandable why many businesses only last a few years and why it’s not always associated with cash flow. I think of myself to be extremely lucky to have had the support from everyone around me over the years, so thanks everyone!

SMTA If you could go back and change one thing what would it be?

MO

MO

The SMTA helps us in many ways, it’s not just a membership to us as, the small fee we pay each month is

MO

MO

To be fair, if we can keep going as we are now I would be happy but as the boys are getting more involved they are always bringing fresh ideas to the table, not always the best ideas might I add but mostly really good. They seem very future focused and I’m looking forward to many more exciting years to come.

SMTA How do you maintain customer levels?

MO

We maintain customer levels by treating them as we would like to be treated ourselves, you can’t go wrong with that. People like honesty and someone they can trust and we like to think we give them that.

SMTA What form does your marketing take?

MO

Our biggest challenge in used car sales seems to be sourcing the right cars at the right money and constantly moving with the times, what’s desirable one day that might not be so desirable the next. Also, replacing stock can sometimes seem harder than actually selling it especially over the last year.

SMTA What drives you?

MO

SMTA Where will your business be in five years’ time?

I always wish I started up on my own a lot earlier!

SMTA How does your SMTA membership help?

SMTA What is the biggest challenge in used cars?

The SMTA are probably one of the biggest helping hands along the way from early on, the help and advice we received from all the people involved with the SMTA have been fantastic and has been and still is very much appreciated so keep up the good work everyone and anyone not with the SMTA should be.

SMTA What do you wish you’d known when you first started out?

MO

and via Autotrader, eBay Motors and Gumtree, we also get a lot of repeat business as we have customers and their families that keep coming back year after year and long may it continue.

What I find that drives me is when I see what a lovely happy working environment we have here and seeing how it really matters to everyone working here, not just family members, I mean everyone. It’s definitely a team effort here and that certainly makes all the difference in any workplace even the customers comments pick up on this. In the past I have experienced a lot of not so happy doom and gloom working environments and it can be very unpleasant and never good for moral.

SMTA What’s the most important thing you’ve learned in your career, and how have you made use of it?

MO

I think the most important thing I’ve learned over the years is how to separate work from your own family time, as it’s very easy to let a busy garage or a non-stop car sales pitch like ours, to take over your life and make you lose sight of what’s really important around you. More importantly, I’ve learned not to be obsessed or concerned with what everyone else in similar business to you are doing nearby, you just concentrate and stay focused on what you’re doing and you can’t go wrong!

Our marketing is mostly online

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MARKET INSIGHT

by Pauline Hughes, Solicitor, Just Employment Law

MANAGING ABSENCE DUE TO COVID Since March 2020, the coronavirus has given rise to a number of challenges for employers. Even now, despite there no longer being a legal requirement to self-isolate if someone has coronavirus, suspected coronavirus or has been identified as a close contact of someone who has coronavirus (albeit there is still guidance to do so), employers once again need to decide how to follow public health guidance and manage absences of this nature in practice, whilst bearing in mind their duty of care to employees.

As expected, there is not a “one size fits all” solution and each organisation will need to determine how to interpret the guidance to suit their own workplace. Our view is that if employees cannot work from home, it is within an employer’s power to prevent employees with coronavirus or suspected coronavirus, or who have been in close contact with someone who has coronavirus, from attending the workplace, even though they are not legally required to self-isolate.

In many cases, employers may need to change the employee’s terms and conditions of employment to adopt this approach. To do so, unless these arrangements are permitted under the employer’s sickness absence rules, employers will be required to consult with staff in advance with a view to obtaining their agreement to the proposed changes. In particular,

26 WWW.SMTA.CO.UK

where an employer is proposing to pay their employees less than full pay for any time off for this reason, consultation will be required.

If an employee has coronavirus but has mild or no symptoms, we do not recommend that employers instruct them to attend their workplace. We do not consider that an employer could fairly discipline an employer for refusing to come to work in these circumstances. It may, however, be reasonable to expect the employee to work from home if they are well enough to do so and as long as they have the ability and means to work from home.

To manage absence, some employers may consider asking employees to continue lateral flow testing before entering the workplace. As free tests are no longer available, however, the employer would typically be expected

to bear the costs of any tests and distribute them to employees. Whilst employers can ask their employees to test routinely, whether it would be reasonable to make testing mandatory would depend on the nature of the organisation and the employee’s role. It is also important to bear in mind that there can be data protection implications of retaining information relating to test results.

As one might appreciate, the impact of coronavirus on employers remains significant, and this is an area which will likely continue to throw up questions.

If you have any queries regarding this update, or if you require support or advice on any other employment law matters, please do not hesitate to contact Just Employment Law on 0141 331 5150 or enquiries@ justemploymentlaw.co.uk

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MARKET INSIGHT

INSURANCE REQUIREMENTS FOR ELECTRIC FLEETS The growing presence of electric cars on our roads, as the UK moves toward a total ban on new petrol and diesel car sales, is well known and gathering pace. In fact, electric vehicle (EV) car sales grew by 76.3% in 2021.1 As part of its net zero strategy, the UK government has committed to phase out petrol and diesel cars and vans before a total ban on new sales comes into force in by 2030.2 32

WWW.SMTA.CO.UK

the insurance market will evolve rapidly in response to demand. However, in the medium term, we do not yet know how EV fleet cover will change over time – what risks will emerge and how insurers will respond.

That raises the possibility of diverse electric fleet insurance pricing, cover terms and risk appetites, as well as the likelihood that firms seeking favourable terms will need to work harder in presenting risks to insurers.

Uncertainty over premiums: Although this may be short term, while the comparative cost of breakdown and maintenance across large fleets remains largely unknown. However, that may change in the near future, with the total cost of ownership of EV fleets expected to reach parity with diesel fleets by 2026.3 It goes without saying that these risks and more should be taken into account by firms planning for an EV future – particularly those leading the way.

ELECTRIC FLEETS: WHAT ARE INSURERS SAYING?

ELECTRIC FLEETS: WHAT ARE THE INSURANCE RISKS? Commercial fleet insurance is an important part of running a successful fleet. As is promoting effective risk management. In an effort to help protect operations and assets, and defending against liabilities.

However, the move over to EV changes the profile of fleet assets and operations, which in turn means insurers will be looking closely at the implications for risk and insurance.

Immature market: The fact that no UK operator yet runs a full-scale EV fleet means that insurers have little to no historical risk and claims information on which to base pricing and underwriting decisions. It also means that specialist cover for EV fleets remains rare compared with traditional commercial fleet insurance – which could prove a barrier for early movers.

Rapid evolution: Given the UK government’s commitment to an EV transition, it seems inevitable that

It may be early days, but insurers are already starting to assess some of the pros and cons of EV fleets from an insurance perspective. Some of these emerging viewpoints, which may impact on insurance, include:4 ● Lower maintenance costs: Electric vehicles are less mechanically complex than their diesel and petrol cousins, which may mean fewer breakdowns and reduced costs for day-to-day maintenance. ● Higher retained value: There is some evidence from the electric car market that EVs may retain more value over time compared with diesel and petrol, which could have implications for the asset value of fleets as they age.

Again, insurer views on electric fleets are likely to evolve quickly as the transition to EV gathers pace, so keeping an eye on developments is likely to be an important consideration.

ELECTRIC FLEETS: CHARGING POINT RISKS Another key risk associated with electric fleets is likely to be around charging points - especially given that this has emerged as

a key risk in the more mature electric car market. As a result, it is likely that EV fleet insurance will need to address issues such as:5 Damage to third party property or injury to third parties: The main exposures here are slips, trips and falls, so operators will need to consider charging locations and how to reduce the risk of people tripping over the charging cable.

Damage to charging points and associated equipment: Charging equipment could be at risk from theft or malicious damage, so risk management and insurance will need to reflect this – thinking in particular about physical security and loss of revenue if vehicles cannot be charged, as well as the likely cost of repairing or replacing EV charging points. Electrical vehicle charging point insurance may need to be considered.

The infrastructure surrounding charging stations: For example, think about how power is supplied to EV charging stations and what happens if it fails.

Cyber risks: It is also important to think about the cyber security of EV charging points, which can be maliciously exploited to seriously harm the equipment, power grid, or both – and could even see personal data fall into the hands of hackers.

Added complexity to daily fleet utilisation: Ensuring vehicles are sufficiently charged for their journeys will be vital to reducing the risk of being stranded and at increased risk on our highways. Technology is available to aid the planning of fleet utilisation for EV’s and thus should be a major part of businesses fleet risk mitigation strategy, as fleets start to be electrified.

Insurance for EV fleets is undoubtedly still in its infancy so, if you are unsure, take advice as part of your planning. If you have any queries about this article, please do not hesitate to get in contact with your usual Marsh Commercial contact.

Sources 1 - heycar.co.uk/blog/electric-cars-statistics-and-projections 2 - theguardian.com/business/2021/oct/20/ambitious-uk-plans-for-electric-vehicles-welcomed-with-reservations 3 - trans.info/en/electric-lorries-in-uk-to-reach-total-cost-of-ownership-parity-with-diesel-equivalents-by-2026-264843 4 - allianz.co.uk/news-and-insight/insight-and-expertise/ev-is-thefuture-but-are-fleet-managers-ready-to-transition-.html 5 - marshcommercial.co.uk/articles/how-to-jump-start-the-switchto-electric-vehicles/

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MARKET INSIGHT

by Karl Werner, Managing Director, MotoNovo Finance

GROW - A NEW MOTOR RETAILING WOMEN’S NETWORK IS LAUNCHED Launched on April 6th, GROW (Generating Real Opportunities for Women) is an all-new network created by MotoNovo Finance to support dealer and broker partners to increase female representation at all levels across motor retailing.

GROW has been created to increase understanding in areas such as unconscious bias, to challenge, support, and encourage meaningful discussions about gender issues in motor retailing when it comes to career development. Above all, it is about encouraging everyone to appreciate the value of providing career opportunities for women at all levels as part of a broader move to embrace diversity and inclusion.

Analysis published by the IMI recently highlighted the importance of diversity and inclusion in meeting an industry skills shortage across the automotive sector. Vacancies at a 20 year high – at more than 23,000. They pointed out that a more diverse workforce is critical to turning the tide, and the lack of role models is a fundamental barrier to achieving that goal.

Focusing on gender disparity, the IMI’s work highlighted a clear industry issue. Just 19% of women are in senior roles compared to 39% in the nonautomotive workforce.

It is this type of gap that GROW aims to address, helping to create a more

34 WWW.SMTA.CO.UK

diverse workforce and inspiring more people to choose the automotive sector as a career choice.

Leading the GROW initiative is MotoNovo MD Karl Werner, an active member of The Automotive 30% Club, whose ‘30 by 30’ strategy aims to see at least 30% of key leadership positions held by talented women by 2030. It is a goal that MotoNovo has already exceeded, with a 50/50 gender structure in place across the business’ Senior Leaders Team. Reflecting on his support for GROW, Karl notes; “Embracing diversity and inclusion in all its guises is central to MotoNovo’s culture.

We want to create a fairer society and have taken big strides to ‘raise our own bar’ as an employer. Broadening this out to support and encourage people and businesses across the motor retailing sector to adopt similar change and feel the benefits we see as a natural extension.”

GROW has received enthusiastic support from Automotive 30% Club founder Julia Muir, who hopes to speak at a future GROW event, voicing her support for the network by noting;

“It’s great that MotoNovo Finance is taking action and launching GROW. There’s strong evidence that women’s networks with a goal of inspiring, developing and supporting women have a significant positive impact on women’s progression.

Something special happens when women see that they are not alone.

Making connections and building relationships with other attendees and speakers helps women form an understanding of their worth, and then they learn strategies to ask for promotions, seek fair pay, and even become mentors to others.

Male members learn that they’re the other half of the gender balance and that they will also benefit from changes.

Involvement should be encouraged and led from the top, as Karl Werner is doing.

Organisations with a predominantly male workforce could also establish a subgroup of their gender-balance network that acts as a friendship group for women across the company to get to know each other, connect and support each other. I hope many more of our members will establish inclusion networks like GROW.”

SMTA ANNUAL DINNER & AWARDS 2022 27TH OCTOBER 2022 GLASGOW HILTON HOTEL WILLIAM STREET

Our guest speaker is none other than the incredible Ann Daniels.

A record-breaking polar explorer and a renowned international speaker, Ann Daniels is the first woman in history, along with expedition teammate Caroline Hamilton, to reach the North and South Poles as part of all women teams.

Headline Sponsor

TICKET PRICES (All prices are exclusive of VAT)

Table of 8

£999

Individual Tickets

£130

For further details about the Annual Dinner and to book tickets/tables contact Karen Thompson on:

07922 079889 karen.thompson@smta.co.uk For all sponsorship opportunities get in touch with Wendy Hennessy on:

07974 380140 wendy.hennessy@smta.co.uk

Supporting Sponsors

WWW.SMTA.CO.UK

35

LATEST CAR FIGURES FUEL TYPE

REGISTRATIONS BY REGION

APRIL 2022

YEAR TO DATE Petrol

30,753

Diesel

5,346

Petrol/Electric

7,005

Total Scotland

10,468 577

Grampian

4,229

Electric

1,170 Central 1,061

95

Diesel/Electric

=

Summary

Strathclyde

47,547

148

536,727 2,750

4,753

Vauxhall

3,680

Ford

7.16%

Kia

3,332

7.01%

Volkswagen

3,203

6.74%

Toyota

2,642

5.56%

BMW

2,607

5.48%

Peugeot

2,149

4.52%

Mercedes

2,128

4.48%

Hyundai

1,774

10.00%

7.74%

3,406

Audi

228

5,500

3.73%

TOP SELLING

MARQUES YTD 2022 36 WWW.SMTA.CO.UK

1,500

3,000

1,168

Ford Puma

1,134

Mini Mini Kia Sportage

895

Vauxhall Crossland

848

Kia Niro

Borders

1,175

Vauxhall Mokka

Volkswagen Golf

Lothian

2,433

Vauxhall Corsa

Peugeot 208

Fife

Dumfries & Galloway

0

Nissan Qashqai

Tayside

4,531 1,359

TOTAL UK CAR MARKET:

0

783 611

119

Petrol/LPG

Highlands

796 789 784 767

YEAR TO DATE

TOP 10 CARS

Q1 2022

SUMMARY – 37,079 STRATHCLYDE

17,526

LOTHIAN

5,088

GRAMPIAN

3,792

CENTRAL SCOTLAND

3,116

TAYSIDE

2,657

FIFE

2,028

HIGHLANDS

1,729

DUMFRIES & GALLOWAY

683

BORDERS

460

Total

37,079

Total UK Car Market

417,560

QUARTER 1 – FUEL TYPE Fuel Type

Energy Source

Year To Date

Year To Date Last Year

PETROL

NORMAL

23,877

21,071

DIESEL

NORMAL

4,081

6,541

PETROL/ELECTRIC

ELECTRIC HYBRID

3,849

2,288

ELECTRIC

PURE ELECTRIC

3,543

2,320

PETROL/ELECTRIC

PLUG-IN HYBRID

1,572

1,482

PETROL/LPG

BI – FUEL

81

23

DIESEL/ELECTRIC

PLUG-IN HYBRID

76

79

Summary

37,079

33,804

Total UK Car Market

417,560

425,525

QUARTER 1 TOP TENS Marque

Range

VAUXHALL

CORSA

2,242

1,589

VAUXHALL

MOKKA

1,046

52

MINI

MINI

831

667

FORD

PUMA

792

690

KIA

SPORTAGE

763

573

OTHER UK

OTHER BRITISH

751

353

VAUXHALL

CROSSLAND

733

327

KIA

NIRO

619

378

VOLKSWAGEN

GOLF

591

419

TOYOTA

YARIS CROSS

583

0

Total Top 10 Scottish Car Market

8,951

5,048

37,079

33,804

Total Scottish Car Market

YTD 2022

YTD 2021

WWW.SMTA.CO.UK

37

S M R C U P D AT E

2021 Newcomers Cup winner - Sam Corson [68]

38 WWW.SMTA.CO.UK

Since its 2019 inaugural season the SMTA Scottish C1 Cup has been one of the most popular championships on the Scottish Motor Racing Club programme. With grids regularly exceeding 20 cars and competitors coming from all over the UK, the series has gone from strength to strength.

The concept was always to have a budget racing series where the cars were very closely matched in performance with very little scope in the regulations for setup changes, with tyre pressures being the main method of tweaking the car. As the first stepping stone into motor racing it would be a mistake to think that this means it’s easy, these are challenging little cars to drive and any mistake or hesitation of the throttle loses momentum and costs lap time.

This is a great way of teaching new racing drivers their craft and allowing them to hone the skill of conserving momentum whilst exploiting mechanical grip. This approach has resulted in very closely packed grids with the top ten cars regularly split by under a second in qualifying.

2021 Champion - Ross Dunn [1]

CITROËN C-FUN 68bhp, a 1 litre engine, front wheel drive with a top speed on track of maybe 100 mph if you’re lucky. You might think this doesn’t sound like a recipe for an exciting racing series, but you’d be wrong.

This is one of the main reasons that the championship has become a firm favourite with the spectators and drivers alike. Having driven in the C1 Cup in 2019 and 2020 I can tell you that behind the wheel it is so much fun to drive these little cars in competition.

When you’re on the grid with 19 plus other cars all of the same performance it doesn’t matter that the power is only 68 bhp, as you all go barrelling into Duffus Dip flat out (and you are flat out down the hill) you feel like a little touring car driver.

On track battles can be intense as the entire field is usually so close together. No matter what position you finish in I can guarantee that’ll you’ll exit the car with a huge grin on your face.

So what is in store for the C1 Cup this year? Well we have already had a great opening round at Knockhill on April 10th. The racing was super

close as always with 2020 and 2021 Champion Ross Dunn beating returning 2019 Champion Finlay Brunton by 0.016 of a second in Race 1 as they drag raced to the chequered Flag. These two champions could be going toe to toe all season for the title but they also need to watch out for up and coming contender Sam Corson who took victory in the 2nd race with Ross 2nd and Finlay 3rd.

It’s shaping up to be a classic season with 3 more rounds at Knockhill in the clockwise direction, an away round to Cadwell Park on July 16th and on June 12th something special.

There will be a 90 minute endurance race at Knockhill in the anti-clockwise configuration for the first time. This will be one not to miss as the reverse direction circuit is fast and flowing but can be difficult to overtake except for at the hairpin.

With a long race ahead for the drivers – who can hold back remembering the old adage “to finish first, first you have to finish”. Will a cool head and playing the long game win over youth, exuberance and raw speed but on limit of mistakes? I guess we’ll just have to wait and see.

One thing is for sure, the Scottish C1 Cup will continue to be one to watch and should be as exciting as ever. The SMRC will have live streaming of the events on their social media channels and youtube so you can enjoy the action from home too.

If you wish to find out more about the Scottish C1 Cup you can get details at: www.smrc.co.uk/championships/ scottish-c1-cup The calendar for this year is available at: www.smrc.co.uk/ championships/scottish-c1-cup/ calendar We hope to see you at the track supporting Scottish Motor Racing.

Article by Glenn Alcock Citroën C1 Photos by Jim Moir

WWW.SMTA.CO.UK 39

BMW DPF PRESSURE TOO HIGH FOR A SUCCESSFUL REGENERATION Diagnostic Time: 30 Mins Repair Time: 30 Minutes Affected Vehicles: BMW – All Diesel models (2005 2017), Mini – All Diesel models (2005 - 2017) Additional Info: This will apply to all diesel engines that have Diesel Particulate Filters fitted but not the the cars with the Add Blue system

SYMPTOMS:

TECH INSIGHT Welcome to Tech Insight created with the support of the IVS 360 OEM-Trained Master Technicians at OPUS IVS and TMD Friction to whom we are very grateful.

Here we highlight some of the more common recent faults that our partners have come across in their workshops and of course provide you with the appropriate fixes.

We are always reviewing our content and please feel free to get in touch if you feel that there is something you would like to see in future editions of SMTA AutoINSIGHT.

PROVIDED BY

1. Lack of power

become blocked if they do not drive the car for long enough journeys.

2. DDE engine management warning light on

REPAIR STEPS:

3. DPF filter check control message displayed in cluster & I-drive Various fault codes can be stored like the ones listed below.

FAULTS CODES: 480A - Particulate filter system Engine - DME 481A - Particulate filter system Engine - DME 452A - Info particulate filter system Engine - DME 41BA - Exhaust backpressure sensor Engine - DME 41BB - Exhaust backpressure sensor Engine - DME 41CD - Plausibilty pressure sensors Engine - DME 245000 - Particulate filter system ash volume in particulate filter above maximum Engine - DME 245C00 - Particulate filter system, flow resistance too high, filter clogged Engine DME

POSSIBLE CAUSES: 1. Backpressure read by the sensor is too high and causes a fault to be stored. DPF regen can no longer take place Other faults in the DDE relating to glow plug operation, throttle operation, swirl flap operation, EGR valve and cooler will prevent the DDE from regenerating the DPF. The customers driving style can also cause the DPF to

40 WWW.SMTA.CO.UK

1. Carry out a quick test and ensure there are no other fault codes stored in the DDE Other faults in the DDE relating to glow plug operation, throttle operation, swirl flap operation, EGR valve and cooler must be addressed and corrected if they are currently present. The DDE needs to be fault free and the engine must reach a minimum of 76 degrees c whilst driving.

2. Go in to the DDE and then diagnostic requests. locate the DPF backpressure diagnostic request.

At idle it needs to be under 35mbar.

At 2000 RPM it needs to be under 65mbar At 4000 RPM it needs to be under 130/150mbar Figures a lot higher than the specified values will cause the fault codes to be entered and will stop a DPF regen 3. Use a suitable DPF cleaner, these are available from various sources. Follow the instructions provided with the cleaner to achieve the desired results.

Stubborn DPF’s can be cleaned by removing the filer and cleaning with an Ultrasonic cleaning machine.

PARTS REQUIRED: DPF cleaner

RENAULT CLIO 2 NONSTART / JUST CRANKS OVER

BMW OXYGEN SENSOR TESTING - BMW FAULT CODE 2C9F OR P0161

Make: Renault Models: Clio 2 (2003-06) | All D4F 712 petrol engines

Covering how to diagnose BMW Fault code 2C9F or P0161 - Oxygen sensor behind catalytic converter 2, signal using a DVOM and an Opus IVS PicoScope. This test can be used on most vehicles with a duty cycle controlled unit.

8. Insert terminal test adapters into the heater circuit terminals

SYMPTOMS: 1. Non-start just cranks over.

Engine warning light may display on IPC.

FAULTS ● 1. No communication with engine ECU. ● Possible Causes ● 1. Possible corroded or broken wire to the fuel pump relay from the engine ECU. The output from this relay powers fuel pump and ignition coil.

May not hear fuel pump priming when ignition is turned on.

No spark at ignition coil.

REPAIR STEPS

See manufacturers wiring information.

3. Check for ignition live at relay B. Fuel pump relay is designated relay B and is in engine bay fuse/relay box.

4. Check for battery feed at relay B. 5. Check for switched ground at relay 6. If no switched earth check wiring from relay back to the engine ECU. See manufacturers wiring for the above information.

Usual issues are corrosion on this wire causing a high resistance and therefore a decrease in current or this wire is open circuit.

1. Locate the electrical connector for the oxygen sensor with the heater circuit fault codes

9. With your DVOM in Ohms, zero the meter, then connect it to the test adapters 10. Measure heater circuit resistance

2. Disconnect the electrical connector

The sensor without a fault code has about 10 ohms resistance, indicating a good heater circuit.

3. Using a wiring diagram, identify the terminals for the heater circuit

11. To test the circuit with a scope, reconnect sensor electrical connectors

4. Insert terminal test adapters into the heater circuit terminals 5. With your DVOM in Ohms, zero the meter, then connect it to the test adapters 6. Measure heater circuit resistance The heater circuit on our subject vehicle is Open, indicating a faulty heater. The heater circuit should have no more than 60 kOhms.

12. Then, insert back probes into the heater circuit terminals and the sensor signal terminal 13. Connect the scope test leads to the backprobes

7. Repair or replace wire depending on the damage.

14. Connect the scope ground to chassis ground

If no communication or intermittent communication proceed as below;

8. Scan engine ECU with diagnostic tool ensure communication and no faults.

15. Set channel A to 20v DC with 200 ms per div

2. Check fuses in engine bay fuse/relay box.

Test vehicle and ensure it starts.

1. Scan engine ECU with diagnostic tool and attempt communication.

7. To confirm a good reading, disconnect the second rear oxygen sensor connector

16. Set channel B to 1v DC 17. 1Start and idle the vehicle

WWW.SMTA.CO.UK

41

TMD EXPLAINS HOW TO EFFECTIVELY MEASURE RUN OUT Checking disc brake run out is a key part of the brake replacement process. It’s a vital check to ensure the safety of the driver and other road users, as measuring the run out can determine if the discs have issues or have been incorrectly installed. All technicians are aware of the importance of this check and routinely carry it out, but how can this be made easier and more concise in garages?

Scott Irwin, head of technical training at TMD the company behind Textar and Mintex, discusses how discs should be fitted to provide accurate run out measurements.

Although brake replacement is a daily task for many technicians, there are certain elements of the process that require extra due care. It is always good for garages to take part in refresher courses to ensure that everyone is up to date with best practice techniques.

This is something we take very seriously and we carry out regular garage visits to ensure best practice is utilised. However, one process that is often overlooked is testing lateral run out.

To accurately test run out, a DTI gauge is required to give a precise reading on how much movement there is once the brake disc has been fitted back onto the hub.

Placing the gauge around 15mm below the outer edge of the disc is recommended to achieve a more reliable measurement. Run out should not exceed 0.07mm, as any reading above this can have damaging consequences to the entire braking system and cause vibrations through the steering wheel and brake pedal – something that could result in a returning, unsatisfied customer if they’re experiencing this when driving.

It’s essential a run out test is conducted

42 WWW.SMTA.CO.UK

with diligence. The hub must be cleaned down properly for the disc to sit flush and all rust and build up should be removed. The disc must be secured to the hub using the manufacturer’s torque settings, and it’s here some problems may arise.

The bolts need to be tightened to make sure there’s as little movement in the disc as possible, but most technicians will reach for spare bolts to do this.

These can damage the wheel bolts and cause scoring on the brake disc itself too, which can lead to problems when the wheel next needs removing. These bolts need to be kept in good condition as they’re playing a key part in holding the braking system together.

One way to eradicate this danger is to reach for a conical washer as opposed to a spare bolt. The shape of these washers encases the wheel nut to avoid causing damage to the bolt head, and they are the perfect form to lay flush against the disc too.

They provide the ideal solution to measure run out as accurately as possible, with the disc sitting as tight to the hub as it can. Then a DTI gauge can be utilised to check lateral run out effectively.

occurs when the thickness of the brake disc is not even.

This can stem from improper practice when it comes to cleaning the braking system. A hub cleaner should be used to remove any deposits away while taking care not to damage the hub itself.

Taking the time to properly clean the system to remove any braking and road debris can prevent a number of faults and flaws and utilising a DTI gauge along with conical washers can provide an accurate run out reading.

These more specific measurements can save an abundance of time for a technician. Instead of a trial-and-error approach where it’s hard to tell if poor results are based on the tools used or uneven surfaces, this can be eliminated as a cause so the mechanic can quickly get to the root of the problem.

In an industry where downtime can cause issues with backlogs of jobs and consequently income loss, it’s imperative that technicians are made aware of these specially designed tools and processes so they can continuously perform to a high standard, ultimately helping with customer loyalty and retention.

For any garage, it’s essential to conduct a thorough job when undertaking tasks such as brake replacement. While these jobs may appear simple, planning them properly will save time and ensure vehicles are leaving and not returning with complaints.

Another key problem technicians encounter when working on this area of a car is brake judder, usually caused by disc thickness variation (DTV), which

WWW.SMTA.CO.UK 42

4,400 REASONS WHY SMALL BUT MIGHTY. OUR FRICTION HAS THE ABILITY TO STOP A 40-TONNE TRUCK IN A 3 SECONDS EMERGENCY STOP WHICH REQUIRES A BRAKING POWER OF 4,400 HP. AN UNBELIEVABLY HIGH STRESS FACTOR FOR THE RATHER SMALL BRAKE COMPONENT. Safety is paramount, we never compromise on quality. That is why we take up to 3 years to develop the perfect friction material specifically for the vehicle, its braking system and purpose.

This is one of the many reasons why Textar is trusted by vehicle manufacturers, distributors and workshops globally.

LEADING FRICTION ENGINEERING MANUFACTURING TESTING

FRASERBURGH

ELGIN

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INVERNESS

ABERDEEN

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PERTH

KIRKCALDY

STIRLING DUMBARTON

FALKIRK

GLASGOW

GREENOCK

DUNFERMLINE LEITH

BATHGATE PAISLEY

GYLE

BELLSHILL EAST KILBRIDE

KILMARNOCK

FRASERBURGH

ELGIN

GALASHIELS PETERHEAD

INVERNESS

AYR

ABERDEEN

DUMFRIES

NOW OPEN IN

MONTROSE ARBROATH

STRANRAER

WORKINGTON!

WORKINGTON KIRKCALDY

STIRLING DUMBARTON

GLASGOW

CARLISLE

DUNDEE

PERTH

FALKIRK

DUNFERMLINE

Contact your local DINGBRO branch LEITH

GREENOCK

GYLEof automotive component distribution.

Since 1973 Dingbro have become synonymous with excellence inBATHGATE the field BELLSHILL PAISLEY With over 1500 employees in 33 sites throughout ScotlandEASTand North West England, Dingbro is one of the largest KILBRIDE www.dingbro.com independent motor factor groups in the UK. Servicing an area from Shetland and GALASHIELS the Faroe Islands down to the KILMARNOCK Scottish borders andAYRNorth West England.

Dingbro are also a member of the Parts Alliance which further enhances our service.

DUMFRIES

Combined with strong supplier partnerships, OE quality products, stock availability and a fast and reliable service, this makes NOW Dingbro the leading company in its field in Scotland. CARLISLE STRANRAER

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