SMTA Monthly Bulletin December 2021

BULLETIN Your monthly news round-up of the Scottish Motor Industry

DECEMBER 2021

The approved insurance broker to the Scottish Motor Trade Association

ELECTRIC AND COMPACT VEHICLES IN FAVOUR WITH LEASING CUSTOMERS IN NOVEMBER Consumer data from Leasing.com has shown that compact and electric vehicles (EVs) topped motorists' new car wish lists in November. Demand for EVs grew by 87% quarteron-quarter during Q3 as the UK leasing market demonstrated an appetite for a “rapid transition” to net zero emissions, Leasing.com said.

Top 10 Personal Enquiries - November 2021*

The Volkswagen Golf retained its number one position in Leasing.com’s top 10 league table of most enquired about vehicles, in November, the Mini Hatchback jumped from seventh position in October to second in November off the back of several strong offers for the Mini Electric variant, according to Leasing.com, as Tesla's Model 3 and the Volkswagen ID.3, continue to appeal to leasing customers.

There was a new-entry in the Leasing.com top 10 from the Volkswagen T-Cross, a small SUV, in amongst the Nissan Qashqai, Hyundai Tucson and Volkswagen Tiguan.

Among the trends said to have fed into the popularity of EVs in 2021 was the September ‘fuel crisis’, which resulted in some customers seeing the benefit of not having to visit a petrol station forecourt, and the impact of COP26 debates on climate change.

In the manufacturers league table, the popularity of the ID.3, Tiguan and T-Cross meant that Volkswagen was the most enquired about manufacturer for personal leasing in November on Leasing.com, with BMW and Hyundai rounding out the top three.

Article courtesy of AM Online Top 10 Manufacturers - November 2021

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**

* Based on volume of enquiries on Leasing.com ** Based on volume of personal enquiries on Leasing.com

JOHN CLARK MOVES VOLVO FRANCHISE INTO FORMER BMW DUNDEE DEALERSHIP John Clark Motor Group has completed a multi-million refurbishment to transform its former BMW Tayside dealership into a new home for its Volvo Car UK franchise.

The Swedish premium brand was introduced to The AM100 group's new Volvo Retail Experience (VRE) site, off Rutherford Road on the Dryburgh Industrial Estate, Tayside, following the creation of a new BMW dealership in the city earlier this year.

John Clark’s new showroom features six EV charging points with 1,200kw fast charging as well as an expanded showroom and additional space for Volvo Selekt approved used cars on its forecourt.

Bryan Muir, head of business at Volvo Cars Dundee, said: “We are delighted to

officially open the doors to our new home, not least because this impressive new development reflects our commitment to improving customer experiences and efficiency.

We look forward to welcoming prospective and current customers down for a cup of coffee, to discuss their purchasing and servicing needs and the future of electrification.”

After the record-breaking successes of our new Volvo models over the last year, we felt this was the perfect time to invest in an impressive new showroom that puts electrification at the forefront of our approach, with six EV charging points and an ultra-modern interior, the future of motoring has certainly arrived at Volvo Cars Dundee.

Completion of the development of Volvo Tayside is the latest in a series of dealership openings for Volvo franchisees.

Article courtesy of AM Online

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OBLIGATIONS TO BE RESPECTED WHEN CHOOSING AN AGENT CONTRACT For more than 100 years, the automotive wholesale model has remained mostly unchanged.

The automotive manufacturers build cars and sell them to their selected network partners ‘dealers’. Dealers, investing in sales and repair infrastructures complying to their manufacturer(s) corporate identity, take care of all the sales and service activities.

New vehicle architectures, technologies, changing customer behaviours and new mobility concepts are transforming the entire automotive ecosystem and this wholesale model is about to change.

agency contract, vertical price fixing is not allowed. This genuine agent model consists of appointing a ‘sales agent’, who acts in the name of and on behalf of a manufacturer called the ‘principal’.

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.

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’, whereas prior, within the distribution model, the financial risks and investments were to a great extent supported by the dealers.

Peter Daeninck, Chairman of CECRA’s European Car Dealers' Division says that: “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.

We will not accept this kind of cherrypicking!”

Bernard Lycke, Director General, adds that: “We notice a trend towards manufacturers opting for an agency model. We are speaking about genuine agency contracts. Called genuine because of them being outside of the scope of the competition legislation. In a ‘non-genuine’

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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, having resigned their actual distribution contracts with their network and appointing agents, are requesting the latter to transform their business and to make the necessary investments. The

European Commission is well informed about these practices and is following it up closely."

Another aspect of changing distribution models is the issue of customer database, an important asset built up over the years by independent dealers. Within the agency model, manufacturers will be in direct contact with the end customer. The customer database is therefore a crucial aspect in order to be able to unroll this model successfully.

“Indeed” says Lycke, “In the course of changing dealer contracts into agent contracts, the issue of customer transfer must be addressed prior to signing the agent contract! However, we do not hear anything about it. As it is clearly specified within the European Commission’s guidelines, this shall be respected and compensated!”, he reacts.

CECRA’s President Jean-Charles Herrenschmidt concludes: “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."

LATEST CAR FIGURES

FUEL TYPE

REGISTRATIONS BY REGION

NOVEMBER 2021

YEAR TO DATE Petrol

81,422

Diesel

18,991

9,721 426

17,728

Petrol/Electric

Diesel/Electric

222

Petrol/LPG

200

=

923

486 Strathclyde

127,915

5,500

116 184

11,000

10,781 8.43%

Volkswagen

2,750

Volkswagen Polo

Ford

9,744 7.62%

Kia Sportage

8,766 6.85%

Toyota

BMW Kia Mercedes Hyundai Peugeot

8,019 6.27% 8,007 6.26% 7,269 5.68% 6,081 4.75% 5,566 4.35% 5,376 4.20%

TOP SELLING

MARQUES YTD 2021

Borders

5,046 2,821 2,631 2,530

Ford Fiesta

2,464

Mini Mini

2,404

Mercedes A-Class

2,313

Ford Puma Toyota CHR

2,166

Toyota Yaris

2,005

Volkswagen Golf

Lothian

5,500

Vauxhall Corsa

10,532 8.23%

Fife

Dumfries & Galloway

0

Vauxhall

Tayside

4,669 1,397

1,538,585

Audi

689

831

Central

TOTAL UK CAR MARKET:

0

Highlands

Grampian

9,352

Electric

Summary

Total Scotland

1,914

YEAR TO DATE

TOP 10 CARS

Figures courtesy of the SMMT (Scottish Motor Manufacturers and Traders)

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DRIVING LICENCE CHANGE In November 2019 Thales were awarded the new card contract for DVLA. Since then new designs for the driving licence, tacho card and driver qualification card (DQC) have been developed.

These have been extensively tested by both Thales and DVLA over the last 18 months.

Full GB Driving Licence: ENGLISH

Provisional GB Driving Licence: ENGLISH

Full GB Driving Licence: BI-LINGUAL

Provisional GB Driving Licence: BI-LINGUAL

All versions of the GB driving licence (Full English/Bi-lingual and Provisional English/ Bi-lingual) will change. Some of the more notable changes to the driving licence design are as follows:

y The Union flag has moved to the top right corner of the front of the licence y The Royal Crest is visible on the front y The driver number has been left justified and is now in line with the other text y The secondary image of the licence holder is now located on the front of the card y The OVI (colour shifting ink) design has been reinstated and updated to the back of the licence y New Hologram has been added (the shape is now a circle & the design has changed)

IMPORTANT: Existing photocard and paper licences will remain valid. They will be replaced with the new version in due course when drivers apply to renew, update or replace their current licence. Customers do not need to apply for a new-style Driving Licence card before their current card expires. In fact, to avoid unnecessary additional workload we would discourage early application.

SMTA & DVSA MOT SEMINARS 2022 SMTA is looking to hold our MOT seminars across the country in the first couple of weeks in March 2022 in conjunction with the DVSA. Edinburgh, St Boswells, Perth, Aberdeen and Inverness.

Full details will be available early next year!

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USED CAR PRICES REACH NEW HIGH IN NOVEMBER, SAYS EBAY MOTORS The average advertised price of used cars hit a new high for the year in November, according to the latest Market View from eBay Motors Group.

Despite a seasonal slowdown, dealers continued to hold firm on pricing during November. The average prices for the top 50 makes and models on Motors.co.uk increased by 4.7% from October.

The biggest monthly increase in prices was in the independent sector where the average jumped 9.2% from £10,724 to £11,715.

Car supermarkets were up 2.7% to £18,176 and franchised dealers were up 2.3% to £19,541.

Auto Trader has reported that the average price of a used car has risen by £3,000 since May.

on their pricing in November even as the winter slowdown began. This prompted some strong price performances, even on mainstream cars, which will provide a welcome boost to fourth quarter profitability,” said Dermot Kelleher, head of marketing and research at eBay Motors Group.

One of the standout performers was the Ford Fiesta, with three years/30,000 miles examples averaging £19,137 – up 39.4% in the last six months.

“Having paid high prices to source cars, dealers acted strategically and held firm

Read the full AM Online article

TRADE SNIPPETS Car finance recovery 'hampered' by new car supply in October, reports FLA Read the full article here

Dealers have ‘pivotal role’ to play in selling EVs and hybrids Read the full article here

Ford scraps diesel versions of Kuga SUV

Read the full article here

UK records best November new van sales in history Read the full article here

Cox warns of a possible “revised benchmark” for used vehicle values Read the full article here

Nissan reveals plans for 15 new EVs by 2030 as part of vision for future Read the full article here

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OUT NOW! SMTA AUTO INSIGHT ISSUE 7 READ IT HERE

SMTA CONTACTS

MEMBERSHIP ENQUIRIES/ TRADING PARTNERS: Norman Stirling – 07917 095014 Membership Development Manager Marcus Lawrence – 07375 057561 Territory Account Manager, Western Region Stuart Kennedy – 07375 057560 Territory Account Manager, Northern Region

MOT QMS ENQUIRIES

WOULD YOU LIKE YOUR GARAGE TO FEATURE IN SMTA’S MAGAZINE? SMTA produces a quarterly magazine to all our members, if you haven’t got one yet our Territory Account Managers will be visiting your garage soon with a copy for you.

If you’d like your garage to feature please contact: karen.thompson@smta.co.uk

David Innes – 07789 264228 Operations Manager, Support Services Colin Meldrum – 07917 042576 Support Services Consultant Gordon Laing – 07799 732124 Support Services Consultant

APPRENTICE TRAINING ENQUIRIES Fraser Miller – 07789 264229 Apprentice Training Manager Kevin Millar – 07593 800386 Kickstart Gateway Project Manager

EMPLOYMENT LAW ENQUIRIES

FESTIVE OPENING HOURS SMTA AND SCOTSURE OFFICES WILL CLOSE AT 5PM ON THURSDAY 23RD DECEMBER AND RE-OPEN AT 9AM ON WEDNESDAY 5TH JANUARY 2022

This bulletin is kindly supported by

Moira Gaynor – 0141 331 5150 Company Secretary/Finance Manager

SCOTSURE WARRANTY: Lynn Greig – 07597 581335 Scotsure Account Manager, Scotland Claims and Enquiries – 0131 331 5512

EVENTS & MEDIA ENQUIRIES: Karen Thompson – 07922 079889 Events & Media Manager

ADVERTISING/SPONSORSHIP ENQUIRIES: Wendy Hennessy – 07974 380140

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

www.smta.co.uk

SMTA is proud to support:

Disclaimer: Whilst we endeavour to ensure the information in this bulletin is up to date and correct, we make no representations of any kind, express or implied, about the completeness, accuracy, reliability and suitability. Any reliance you place on such information is therefore strictly at your own risk.