Oct p1_Oct p1 07/10/2014 15:54 Page 1 125 AUTO RETAIL Bulletin ISSUE NO. OCTOBER 2014 BE BETTER INFORMED AFTERSALES IN A DIGITAL AGE A comprehensive report focusing on changes in the UK aftersales market See page 7 for details IN THIS ISSUE Retailers Benfield Billa Caffyns Cambria CarMax Group 1 HR Owen Inchcape Nationwide Accident Pendragon TrustFord p14 p9 p8 p8 p9 p9 p8 p8 p8 p8 p22 Brands Ford Honda Lexus Seat Subaru Volkswagen Volvo p2 p2 p16 p2 p4 p4, p8 p3 Suppliers ACEA Anomaly42 Arval ASE Auto Trader BCA Carwow CDK CECRA Deloitte KeeResources Mapfre MSXi NFDA SMMT Trend Tracker Urban Science p18 p3 p12 p10 p6 p3, p5 p5 p15 p18 p22 p17 p11 p19 p22 p22 p9 p14 AUTO RETAIL NETWORK w w w . a u t o - r e t a i l . c o m SME FLEET SALES RISE PREDICTED C ar and van retailers look set to benefit from a more optimistic outlook in the company car market. Figures from the 2014 edition of the respected Corporate Vehicle Observatory Barometer, by leasing firm Arval, show a marked increase in the likelihood that smaller businesses will grow their fleets in the next three years. The growth rate for larger businesses has eased. With smaller businesses more commonly buying or leasing direct from car retailers and larger firms typically using lease companies or going direct to car makers, the swing from 9% looking to increase fleets in 2013, to 17% in 2104 for SMEs is positive news for UK franchised dealers. Growth potential from larger fleets is still positive, with a balance of 15% predicting growth in the next three years. This figure stood at 18% last year. more on p12 CRAZY ECONOMICS IN AFTERSALES T here are underlying issues of viability in the aftersales market, but the digital age brings with it new opportunities, according to speakers at Auto Retail Network’s conference on Aftersales in the Digital Age. Providing the morning session’s keynote address, Mark Squires, chief executive of Benfield Motor Group spoke on the topic of building an aftersales strategy. His thought provoking presentation looked at the dramatic changes that have already impacted on profitability, insisting that these were issues the industry needed to discuss. Among the issues he brought up was ‘crazy economics’, questioning the value of offers such as free vehicle health checks and service plans. “Of course we have a duty of care,” he said, “but a free vehicle health check is not free for the dealer.” more on p14 BCA TO LIST ON STOCK EXCHANGE B CA will float on the London Stock Exchange later this year, with the aim of raising in excess of £200 million. The initial public offer will comprise an issue of new and existing shares. The directors and current owner, private equity firm Clayton Dubilier & Rice, believe the flotation will help position BCA for the next phase of its development by providing an appropriate long-term ownership structure, which is intended to support management’s growth plans. The announcement comes off the back of strong first-half results for 2014 showing continued revenue and growth. Chief executive Jon Olsen said: “BCA comes to the market with an excellent track record of growth in revenues, earnings and strong cashflow generation. more on p5 Oct p2_Oct p2 07/10/2014 15:54 Page 8 NEWS FORD NETWORK COMMITS TO MEGA-STORES F ord says over half the dealerships identified as potential sites for its new Ford Store concept have now committed to the project following an investors meeting to view the pilot showroom in London last month. Ford of Britain managing director, Mark Ovenden, speaking exclusively to Auto Retail Bulletin, said the company had identified 65 sites, mainly in major urban areas that would be suitable for Ford Stores, which he described as “the ultimate Ford retail experience.” He said: “We took the owners and investors in our possible would be handled “exactly the same as all over Europe.” There will be Vignale lounges in all Ford Stores and, most likely, a Vignale relationship manager in the dealership who will be responsible for customer contact. There will also be a suite of service offers to “make the Vignale experience special.” Mr Ovenden insisted there would be no local compromises on either Ford Store or Vignale standards. “If there is a delay, it will be where we know we have the right partner in the right town but the location is preventing what we want. In those cases we will have to work with the dealer to find the right location. There will be no Ford Store or Vignale Lite.” HONDA IS FIRST WITH ANDROID DASH locations down to Edgware Road (a Ford Retail site); we showed them the concept and explained what it was all about. We’re getting on for about 30 dealers who have already said ‘yes, I definitely want one’ and have committed to have it implemented by March of next year. “We’ve got some others who, for pragmatic reasons, probably can’t do it quite so quickly. So I reckon we’ve probably got 35 to 40 dealers now who have said ‘I will do a Ford Store with you’.” Mr Ovenden said Ford Stores would be the exclusive outlets for the new Mustang and also for the premium-specification Vignale experience. Discussion about the Vignale strategy is closed and he emphasised that Vignale in the UK Honda is the first carmaker to reveal a dashboard infotainment system based on Google’s Android operating system. NEW LOOK FOR SEAT The new Honda Connect system will be standard equipment in Europe on Civic, Civic Tourer and CR-V models from next year. It will likely also be an option on the new Jazz which is scheduled for the UK market in summer 2015. The Android operating system allows touchscreen gestures such as pinch, zoom and swipe and provides customers with the same experience that they expect on their smartphones and tablets. It also gives access to Google Play apps, and drives on-board systems such as navigation, radio, rearview camera and vehicle display. Honda is one of the founding members of the Open Automotive Alliance which launched earlier this year to bring the Android platform to cars. Most of the world’s carmakers and brands such as Google, Delphi and Panasonic are now members. S eat is asking its network to invest in a new corporate identity programme as the brand seeks to bring its retail experience up to speed with the current model line-up. The showroom upgrade is the first refresh of showrooms and signage in 14 years. The first new-look dealership has opened at Caffyns, Tunbridge Wells and franchise holders were given details of the programme at recent roadshow events. Seat UK has said it will meet the costs of all signage and half of all internal work, leaving individual dealerships to pick up a bill of around £40,000. Neil Williamson, now two years into his role as Seat UK director, said response to the plan had been enthusiastic and he hoped that it could be implemented across the network by 2016 when the product range will expand with the launch of an SUV. Mr Williamson admitted there is some frustration in the network at the speed of introduction of new models and said the focus in future will be in “the more fun segments, not the A4/A6 segment.” He commented: “The dealers have said they want it tomorrow and, if we had our time again, we’d have it a bit sooner.” The brand currently has around 12 open points but, despite a recent low NFDA rating, Mr Williamson said he has a “long list of people” wanting either more dealerships or to get into the brand. The Bulletin is circulated to members of the Auto Retail Network. For membership details, see page 24 EDITOR EDITORIAL PANEL SALES EXECUTIVE Tristan Young [email protected] Tel: 01276 855556 Neil Philpott, PricewaterhouseCoopers [email protected] Caroline McBain [email protected] Guy Liddall, managing director, Motor Trade Selection [email protected] ACCOUNTS MANAGER David Chittenden, head of automotive, Colliers International [email protected] MEMBERSHIP DIRECTOR DEPUTY EDITOR Mark Simms [email protected] CONTRIBUTING EDITORS Steve Banner, Hugh Hunston, Chris Oakham 2 Peter Stevens, partner, TWM Solicitors [email protected] DATA ANALYSIS OFFICE MANAGER Nicola St Clair Rosalind Marshall [email protected] DESIGN AND PRODUCTION DATA ADMINISTRATOR Concept Creatives [email protected] Frances Tatlow [email protected] OCTOBER 2014 Photocopying these pages may break copyright law Angie Wilderspin [email protected] Francis Marshall [email protected] Tel: 01572 724687 Published by: Automotive Retail Ltd, 21 Midland Court, Station Approach, Oakham LE15 6RA ISSN 1755-4292 Managing director: Rupert Saunders Chairman: Fred Maguire www.auto-retail.com Oct p3_Oct p3 07/10/2014 15:54 Page 1 NEWS MEASURE DATA TRENDS TO CUT FRAUD I nformation across a broad spread of data sources could be used to spot both fraud in businesses plus positive customer trends, according to mature start-up company Anomaly42. Anomaly42, which operates primarily in the retail and finance sectors, uses its software to analyse multiple data streams and find anomalies that aren’t easily or quickly spotted by people. “We deal with data in all sorts of areas. For example databases, emails and accounts systems,” said Mark Jones, Anomaly42’s chief data scientist. “There has been a vast increase in data creation in the past few years. Regulation has driven an increase in data points too. “Anomaly42 is a culmination USED CAR VALUES SOFTEN IN SEPTEMBER Used car values fell in September from the record levels achieved over the summer months as volume began to return to the marketplace, according to BCA’s latest Pulse report. The average value fell by £572 (7.1%) to £7,429, with performance against CAP Clean falling slightly to 97.5%. Model mix was a significant factor in the drop in the headline figure, as there was a notable percentage increase in the share of dealer part-exchange cars sold over the month, compared to higher value fleet and lease cars. However, year-on-year values remained ahead by £422, equivalent to a 6.0% uplift, with both average age and mileage falling over the period. Simon Henstock, BCA’s UK operations director, said: “As expected, there was some price pressure in September as a result of rising volumes and a shift in the balance between part-exchange cars and fleet and lease vehicles. These factors typically exert some pressure on average values and conversion rates, although demand remains strong and the best quality cars continue to achieve often exceptional prices.” www.auto-retail.com of the idea that enables businesses to look at all these disparate data sets to show anomalies.” The software platform can be cloud-based or on the business’s premises and harvests all sorts of data. “We use optical character recognition software so that any data is fully searchable and linkable,” said Mr Jones. “We can also bring in other data sets, for example from Companies House. We then apply rules to the data to find patterns. “These patterns could be positive, such as buying trends in certain conditions. Or it could be negative trends, such as a salesman who’s manipulating unit stocking. Another possibility is that the system could ‘see’ a single phone number against several addresses in a CRM system. The system handles this and supplies the details to the right people at the right time. “Lots of companies have a fraud team, and auditor or a finance director. Anomaly42 provides big button technology.” Anomaly42’s system takes a historic load of data to start, for example the past 12 months’ accounts, CRM and email. It then runs regular checks every day or week depending on what works for a company. “We look a lot at online retailing including competitor analysis, and we can look at blogs and forums too. For instance we can spot people complaining about things. That could be a car with a fault. “We like to provide help to people and that could be about positive or negative trends. “We’ve existed for 10 years but only as a stand alone operation for the past two years.” VOLVO PLANS NEW MODEL SALES GROWTH V olvo’s strategy to gain premium franchise status across its range will involve an integrated model naming approach as the brand’s UK head of product and pricing Iain Howat admitted: “We want to put behind us a period where we chopped and changed, messed around and were all over the place in terms of range naming and not aligning it with the rest of the market.” With the S60, V60 and XC60 providing a recognisable upper medium portfolio Volvo will launch the new S90 large saloon to replace S80, and a V90 estate car. Plus Volvo will launch a Cross Country counterpart to complement the upcoming new XC90 SUV. The V90 and S90, using the company’s variable format SPA platform technology, will come to market in quick succession within 20 months. Mr Howat also revealed the Photocopying these pages may break copyright law next-generation V40 will have an all-wheel-drive, and frontwheel-drive XC40 equivalent, which is already in concept model form and based on a new platform, funded by the parent Chinese company Geely Automobiles. He said: “I believe that within the next three years our brand will be transformed and premium perception will apply from V40 upwards. We need to be more robust and consistent in defining our nameplates and positioning. To be honest one generation of V40 a premium product does not make.” Mr Howat denied Volvo had forced volume through fleet or thrown money at the corporate sector, which during the first eight months of this year accounted for 70% of sales, up 20% overall. He claimed the registration rise was double internal targets and fleet was only 2% above its share last year. DECEMBER 3 OCTOBER 2014 2007 Oct p4_Oct p2 07/10/2014 15:55 Page 8 NEWS SUBARU TO REAWAKEN NETWORK By Tristan Young S ubaru it aiming to grow its network to 100 retailers by the end of 2015, up from the current 60 franchises. By the end of this year the IM-owned distributor will add a further 18 retailers but reach a total of just 70 as some retailers lose the brand, according to managing director Paul Tunnicliffe. The network growth is part of a wider plan for Subaru to hit 5000 registrations in the next few years, according to Mr Tunnicliffe. “We’re on target for 2800 this year and we hope to sell 3500 next year. But it dipped to 2000 in 2012. We want to get that back north of 5000 eventually,” he said. “We’re 24% up this year thanks to the improved exchange rate. It’s now Yen180 to the Pound WHY SUBARU DROPPED ETCo “We ran the ‘Everything Taken Care of’ for three years but it was over-burning,” said Subaru’s UK managing director. “People were coming in with any little thing to repair such as a stone chip. Customers found it difficult to understand and there were some exclusions so we were upsetting customers. The five-year warranty is much easier to understand and because of our reliability it costs a lot less than ETCo.” and it was at 120. That kind of change transforms a business.” While the exchange rate was working against the brand, Mr Tunnicliffe said that some retailers lost interest in Subaru, even though they retained the franchise. “A lot of our dealers just went to sleep for a few years. We’ve been taking the time to get them reconnected with the business. “Some took on Kia or Hyundai in that time. Now they are coming back to us because of the CI costs that those brands are asking them to invest. “We are targeting other ex-Kia and ex-Hyundai dealers too – the ones who were local retailers and were asked to move to out-oftown glass boxes, but opted not to. We’re also looking to those that ran Proton or Daihatsu.” Mr Tunnicliffe said he was still after owner-operator businesses and wasn’t not looking for groups as they are “hungry investors.” He said: “We don’t phone at the end of the month and offer £5000 off to register cars. Everyone’s on the same terms. “We look for the best local operators; those that do county shows and point to points and get into the community. “The network average return is nearly 2%, and that’s going up. We aim to keep costs low; corporate cuff links costs are low and we don’t have any plasma screens. The focus is on the cars. “The Forester, Legacy and XV are the only incentivised cars. It’s just basic for the rest. That keeps the dealers focused.” He added that Subaru was asking retailers to sell on engineering integrity and vehicle capability, because price and efficiency weren’t the brand’s strongest points due to the increased costs and weight of four-wheel drive. Mr Tunnicliffe pointed out that Subaru is an SUV franchise with the STI and BRZ as the cherry on the cake, not defining the brand. However, he pointed out: “New pricing has reinvigorated things. The XV is £2300 less than last year due to the Yen, the BRZ now starts at £22,495 and the new WRX STI is £4000 less than the old one – and it’s sold out for the rest of the year. That’s all due to currency changes. “In terms of product, there’s a new Outback on the way and the Levorg estate is under discussion for Europe. This will probably come to the UK in the second half of 2015 and add between 600-800 units.” ‘DATING SITE’ FOR CAR BUYERS V olkswagen of America has launched a new configuration website at vw.com which it claims revolutionises purchasing new cars on the US market. It gives both the manufacturer and retailers a high level of integration in the production and sales processes. Importantly for US car buyers, they can now find exactly the car they want via a ‘matchmaking’ 4 OCTOBER 2014 function. To date, while customers in the US have been able to configure their favourite VW online, their final choice depends on which models their dealer has in stock – the 'best-match’ principle. The new configuration engine lets customers make an online selection from stock that's actually on the dealer's forecourt. If the desired vehicle is not Photocopying these pages may break copyright law obtainable locally, the search is extended to other dealers. Customers can see online exactly the car they’ve chosen before visiting the retailer. Build to order isn’t standard practice in the US as it is for many brands in the UK, but the idea of being able to see the actual car is certainly something that has been identified as a key element of the buying process here. www.auto-retail.com Oct p5_Oct p3 07/10/2014 15:55 Page 1 NEWS BCA TO LIST ON STOCK EXCHANGE B CA will float on the London Stock Exchange later this year, with the aim of raising in excess of £200 million. The initial public offer will comprise an issue of new and existing shares. The directors and current owner, private equity firm Clayton Dubilier & Rice, believe the flotation will help position BCA for the next phase of its development by providing an appropriate long-term ownership structure, which is intended to support management’s growth plans. The announcement comes off the back of strong first-half results for 2014 showing continued revenue and growth. Chief executive Jon Olsen said: “BCA comes to the market with an excellent track record of growth in revenues, earnings and strong cashflow generation. “We have a proven business model that allows us to help buyers and vendors maximise value, liquidity and choice in the used vehicle market through their preferred channel, be it physical or digital.” With more than 900,000 vehicles sold in 2013 through its vehicle remarketing division, BCA can lay claim to being the leading used vehicle marketplace in Europe, helping buyers and vendors to maximise value, liquidity and choice. Further, BCA said it had established itself as the partner of choice in the European professional used vehicle sales market, having provided services to more than 55,000 buyers and more than 1,000 vendors in 2013. This has included some of the largest dealer groups, leasing companies, manufacturers and rental and vehicle buying companies in Europe. BCA, which was bought by Clayton Dubilier & Rice in 2010, also offers vehicle buying services through its Webuyanycar online brand, which purchased more than 120,000 vehicles in 2012. BCA acquired Webuyanycar in August 2013, and the online vehicle buyer has continued to expand rapidly in the UK. It has also expanded into the continental European market, entering the Netherlands this year. In the three year period to 31 December 2013, the Group grew revenues by 74% to £442.3 million (from £254.3 million for the year ended 31 December 2011), with Adjusted EBITDA up 27% to £62.5 million (from £49.4 million for the year ended 31 December 2011). CONSUMERS ARE STRUGGLING TO GET THROUGH TO DEALERS At Carwow, we’re constantly analysing data to help our dealers keep a competitive advantage. From calls to response rates, to the reviews of the dealers that buyers leave: the data all points to the same conclusion – people buying cars want a response, and they want it quickly. Now, I’m sure most of you reading this will say this is nothing new – we all know this. But to what depth do you understand the critical need to have a call answered? The data we collected was from more than 400 UK franchised dealers in Q3 2014. During this period we tracked 6,988 phone calls from Carwow users, of which 1,643 lead to a sale – a 24% conversion rate. Of these calls, only 15% lasted longer than two minutes, which means that the vast majority of potential customers aren’t able to reach the salesperson they’ve been dealing with. We analysed a sample of these 300 short calls, and found that only 64% of consumers left their names and numbers over the phone to be called back. Of the users who didn’t reach the first dealer they tried to call, almost half of them then rang a different dealer within an hour of making the first call. Tellingly, only 12% of people who did get through to the first dealer they called then called another dealer. Missing that first call costs dealers a lot of potential sales. www.auto-retail.com What we’d recommend, and would like to see, is either calls being diverted to a personalised voicemail for each salesperson or, even better, to a salesperson’s mobile. The most successful dealers on Carwow divert to mobile phones, and they find it gives consumers confidence that their messages will be picked up. What is worse is that a significant percentage of calls to a dealership’s main phone line were just never answered. On aggregate we see that 6% of calls aren’t answered. Interestingly, there are clear differences between dealers representing different brands. Generally, the more premium the manufacturer the worse the trend. The vast majority of these calls weren’t outside of working hours either, and Saturdays and Sundays are the worst days. What we’d like to see is voicemail activated after a set number of rings – a solution we see very few dealerships using. Ultimately, if people can’t make contact with someone they have already been dealing with then many will simply move on to another dealer. Can you afford to miss those calls? Author James Hind is the CEO of Carwow a commercial partner in Auto Retail Bulletin. Find out more at carwow.co.uk Photocopying these pages may break copyright law DECEMBER 5 OCTOBER 2014 2007 Oct p6_Oct p2 07/10/2014 15:55 Page 8 PEOPLE PERRY OFFERS LESSONS FROM THE USA by Mark Simms “ Click and buy fails because the car deal is too complex “ 6 OCTOBER 2014 W ith the multitude of web-based and software tools that have come to the market, the way car retailing is done has changed enormously. But as far as we’ve come to date, we have even further to go in embracing the power of these tools. So says Chip Perry, the former president and CEO of AutoTrader.com and Kelly Blue Book in the United States, and now a non-executive board member of Auto Trader in the UK. Mr Perry brings with him a wealth of insight from the US market. Because of its larger scale, the US auto industry has tended to be a faster adopter of new tools and new ideas. With his experience, Mr Perry is ideally placed to inform on what has and hasn’t worked, and to look at the direction in which tools might develop. Notably, Mr Perry has identified that trends in the US are coming to UK increasingly quickly, with less and less lag. One set of tools Mr Perry identifies as being critical are the intelligence tools being brought to dealers. “Intelligence tools such as inventory management software enable dealers to use the power of real data to guide their decisions,” he says. “They can see which cars on forecourts move most quickly, and how factors such as price shape the time on the forecourt. “The tools also show them which models are in greatest demand, and help them match their inventory to meet market demand, and how to change the price of the vehicle during its time on the forecourt.” He continues: “The tools also help dealers manage what they pay for a car, because they can closely study current retail asking prices rather than rely simply on wholesale guide books.” Mr Perry asserts that in the US, 80-90% of all new cars are now searchable online, and that this meets the needs of a large segment of consumers who want to see real-time inventory. The third party websites thus meet the needs of consumers who want to cross-search between new and used cars. He is clear that consumers want to see the actual car and see where it is before they start the buying process. They want to see the inventory at the dealership before they visit the dealer. Consumers also want to see real prices for vehicles, not just the sticker price. By advertising a real asking price, Mr Perry says retailers are giving a signal of their willingness to compete. And with this has come a trend toward greater transparency. “Consumers are information seekers,” says Mr Perry, “so this trend is irreversible. In the US, dealer invoice pricing has been visible since 1996, so consumers can see how much the retailer paid the manufacturer for the car.” It might be expected that this would lead to consumers haggling harder and profits falling, but Mr Perry asserts that US dealership pre-tax profit margins have remained largely unchanged, with gross profit maintained at around $2000 per car. The thinking is that if consumers have an appreciation of real prices, they will treat dealers more fairly. At the same time, Mr Perry says, even with this greater transparency, there is enough ‘noise’ in the data that the retailer can talk their way around what the consumer thinks he knows so that everyone comes away thinking they got a good deal. Mr Perry is also clear on why models such as ‘click and buy’ have always failed, and why they are unlikely to succeed even when there are improved tools and ever greater transparency. “Click and buy fails because the car deal is too complex,” he says. “There are elements of price, trade-in values, monthly payments, car specification and trim levels. A consumer will come into a dealer based on a search for a particular car, but not all people actually end up buying the car they think they want to buy.” While a segment of consumers will always want to try and complete the whole deal online, Mr Perry’s view is that most consumers want to go into the dealership, look at the vehicle, touch it, and negotiate face to face. Indeed, he says research shows that while 90% of consumers search online, two thirds will walk into the dealership. This has implications not only for way dealers market themselves and their vehicles, but also for the way in which they are monitored and measured. “Even today manufacturers are trying to measure dealers’ performance using metrics such as how they respond to email,” says Mr Perry. “But email represents only 10% of deals. You can’t just focus in that way on what’s easily measurable, because in this industry that’s not the main way consumers interact with the dealers.” On his role at Auto Trader, Mr Perry concludes by saying the company must remain balanced fairly between the consumers and dealers, but that there is an opportunity to improve the car buying process in the UK. “I am extremely excited to join the board of Auto Trader,” he says. “We have a strong position among consumers, dealers and OEMs in the UK, and I’m excited about the things the company is doing to help its customers accelerate the adoption of online tools and software solutions.” Author Mark Simms is deputy editor of Auto Retail Bulletin. Photocopying these pages may break copyright law www.auto-retail.com Oct p7_Layout 1 07/10/2014 15:55 Page 1 Aftersales in the Digital Age Aftersales is a vital revenue stream for franchised auto retailers and critical to the success or failure of most businesses. Yet it is often overlooked as the rest of the business ‘goes digital’. This exclusive Auto Retail Network report sets out to correct that imbalance. It’s a best practice guide to adapting your aftersales department to the digital age. The report tackles both sides of the rush to digital. The first is the change in consumer behaviour and the way in which customers now expect businesses to respond to their needs. The second is the role of digital as an enabler – offering us tools to do our business better. Aftersales in the digital age looks outside the auto retail industry and features case studies of some of the world’s most successful online retailers. The report features the results of Auto Retail Network aftersales research carried out with senior executives from the industry during June 2014. It also draws heavily on the opinions of an executive panel of industry experts. Core content includes: Understanding the market & the sector Working within European regulation Planning cost-effective marketing Using digital to boost retention The potential of the connected car Digital and the business model Aftersales in the digital age will help senior auto retail executives understand the changes that the digital revolution is bringing – and offer some practical, realistic answers to the questions that arise. PRICE: ARN members £245 (plus p+p) Non-members £345 (plus p+p) To order your copy of Aftersales in the digital age: go online to: www.auto-retail.com or call: 01572 724687 Oct p8,9_Oct p4,5 07/10/2014 15:55 Page 8 FINANCIAL SHARE DROP ON GROWTH RATE FEARS “ Cambria Automobiles told shareholders that it expects to be ahead of current market forecasts S tock markets love growth; indeed, companies which fail to deliver yearon-year growth (however profitable they may be on an underlying basis) are generally marked down. So, signs of a slowing growth rate – even from unsustainably high levels – are bad news for share prices. That would appear to be the cause of September’s ‘red ink’ across global auto retail stocks as both the UK and US sectors took a tumble. The industry continues to deliver good sales, sub-three year old car parc is growing and used car values are stable; but investors are nervous and auto retail has always been seen as a high risk stock. The figures also need to be seen in the context of falling values across the wider market. Our benchmark of the FTSE 350 Retail index also fell by 4.7% in the month. In a quiet month for solid news, Pendragon appeared to be supported by a cash injection from GMT Capital which bought around 1.7 million shares to take its stake over 5%. It was unclear if there was a single large seller. “ AUTO RETAIL STOCKWATCH: EUROPE & US CURRENCY CLOSING PRICE CLOSING PRICE % CHANGE 31/08/2014 30/09/2014 Source: Houlihan Lokey EUROPEAN RETAILERS Bilia AB D’Ieteren Inter Cars Kesko Mekonomen Stern Groep SEK EUR PLN EUR SEK EUR 186.0 31.5 205.0 27.7 162.5 13.1 194.0 30.7 214.0 28.4 156.5 12.8 4.3% -2.3% 4.4% 2.3% -3.7% -2.3% US RETAILERS Asbury Automotive AutoNation CarMax Group 1 Automotive Lithia Motors Penske Automotive Sonic Automotive ($) ($) ($) ($) ($) ($) ($) 69.7 54.3 52.4 80.2 87.4 48.0 24.7 64.4 50.3 46.5 72.7 75.7 40.6 24.5 -7.5% -7.3% -11.4% -9.3% -13.4% -15.4% -0.8% -4.7% FTSE 350 General Retailers AUTO RETAIL STOCKWATCH: UK CURRENCY CLOSING PRICE CLOSING PRICE 31/08/2014 30/09/2014 % CHANGE Source: Houlihan Lokey UK RETAILERS Caffyns Cambria Automobiles Inchcape Lookers Pendragon Vertu Motors (£) (£) (£) (£) (£) (£) 575.0 51.5 673.0 140.3 31.0 57.5 555.0 51.3 644.0 134.0 33.0 56.0 -3.5% -0.5% -4.3% -4.5% 6.5% -2.6% UK SERVICE COMPANIES AA Halfords Group Nationwide Accident Redde (£) (£) (£) (£) 281.5 480.6 67.0 59.8 322.5 474.5 85.0 74.0 14.6% -1.3% 26.9% 23.8% FTSE 350 General Retailers 8 OCTOBER 2014 News of the departure from Inchcape of Andre Lacroix as chief executive came right at the end of the month and too late to affect our Stockwatch table. Speculation in the industry is that the multi-national group will, once again, look outside the industry for a replacement though Joe Doyle (who resigned from HR Owen earlier in the month) would be available. In a trading statement ahead of results for the year ended 31 August 2014, Cambria Automobiles told shareholders that it expects to be ahead of current market forecasts and trading in the first 11 months of the 2013/14 financial year has been substantially ahead of the corresponding period in 2012/13. Meanwhile, Caffyns announced that it had exchanged contracts with Perth Securities for the sale of an unwanted listed building and land adjacent to its Land Rover dealership in Lewes for £858,000. UK SERVICE SECTOR Maiden interim results for the AA to the end of July, following the accelerated IPO in June, showed that group revenues increased by %CHANGE 12 MONTH 1.6% to £491.7m RELATIVE HIGH LOW TO INDEX (2013: £484.1m) while underlying earnings were up, increased by 9.0% 222.0 136.8 3.9% to £211.8m, 2.4% 37.7 29.5 driven by roadside 9.1% 222.0 161.7 assistance. 7.0% 33.3 21.6 The group said 1.0% 221.0 148.8 underlying margins 2.4% 16.6 12.2 improved to 43.1%, supported by -2.9% 72.0 45.4 operational cost -2.6% 61.2 46.8 efficiencies and that it -6.7% 53.7 42.9 -4.6% 87.3 60.3 had recently won the -8.7% 96.4 54.2 contract to provide -10.7% 51.2 38.2 roadside assistance to 3.9% 27.8 21.3 Volkswagen Group in the UK. It has also retained business from Lloyds TSB Autolease. %CHANGE 12 MONTH Shares in Redde RELATIVE HIGH LOW TO INDEX responded well to last month’s strong halfyear results while 1.2% 650.0 430.0 Nationwide Accident 4.2% 58.0 38.0 also announced a 0.4% 695.5 556.5 successful half-year of 0.2% 150.0 115.3 growth. 11.1% 2.1% 39.8 66.5 27.3 51.5 19.3% 3.4% 31.6% 28.5% 326.3 511.5 90.5 N/A 229.8 370.5 60.5 N/A -4.7% Photocopying these pages may break copyright law EUROPEAN RETAILERS For once, continental European auto retailers proved more stable than their UK or US counterparts as the www.auto-retail.com FINANCIAL markets continued to show some signs of a slow recovery. The introduction of scrappage in Russia is also affecting groups which trade in used cars across the border. Swedish-based group, Bilia, took advantage of a jump in new car sales in August to upgrade its sales forecast for the year. Analysts said outlook for the balance of 2014 is good with stable consumer confidence, low interest rates and declining used car inventories are likely to support new car registrations going forward. The group will report Q3 results this week. US RETAILERS US retailers suffered the same fate as their UK counterparts as share values fell sharply across the board; this despite light vehicle sales in September coming in 9% ahead of the same period last year. Once again the issue would appear to be worries about slowing growth rate. The September results were slightly below forecasts and the seasonally adjusted annual sales rate hit 16.4 million, also just below analysts’ forecasts in the 16.5 million range but well above September last year. Typical was the reaction to CarMax, the largest used car retailer in the market, which reported an 11% rise in Q2 revenue to $3.6 billion as easier availability of credit boosted sales. Net income rose 10% compared with a year earlier to $154.5 million, or 70 cents per share. However, this was below expectations and there were also concerns about falling sub-prime penetration and high per-vehicle expenses. Fallout from upheavals in Brazil continue to affect Group 1, despite the company continuing to expand with the acquisition of the Munday Chevrolet and Mazda businesses in Houston. The group is viewed as ‘positive’ on a long term basis but short term estimates have been cut. BEYOND ECONOMIC REPAIR by Chris Oakham A recent test drive of a hybrid car awoke the engineer in me and I found myself marvelling at the ingenuity of the designers. That afternoon, I visited an independent garage where a technician was changing the coil pack on a P-reg Peugeot 106. The problem had been simple to diagnose, the fix equally simple, and the happy owner drove away having parted with £110. I then started thinking about what would happen 18 years hence when the hybrid developed a fault. At the end of 2013, the average age of the UK car parc was 7.7 years – having increased from a low this century of 6.69 years in 2004. While this increase has a lot to do with the 25% fall in new car sales between 2003 and 2011, cars are lasting longer and 20-year-old cars are a fairly common sight on our roads. According to the Department for Transport, there were 3.5 million licensed cars over 13 years old in 2013 compared to 2.5 million a decade ago. Proof, if it were needed, of the longevity of modern motor cars. Proof too that when things do go wrong, the cost of repairs aren’t always excessive, and generally don’t cost more than the car is worth. But will this continue to be the case? In 2013, the most expensive jobs carried out by professional providers were on gearboxes, clutches, transmission and drivetrain – on average over three-and-half times the cost of a routine service. Fortunately for motorists, however, such jobs were relatively few in number compared to servicing, tyres and brakes (see graph below). COST PER RETAIL JOB AND NUMBER OF JOBS (2013) – PROFESSIONAL PROVIDERS Nationwide Accident, the UK’s largest bodyshop and repair operator, reported a substantial improvement in the underlying trading results in the half-year to June 30, 2014. The group said underlying profit before tax was up 86% to £2.5m (2013: £1.4m) and underlying earnings per share up 91% to 4.4p. Other Battery/ alternator Servicing Number of jobs index Source: Trend Tracker Cost per job index Brakes Tyres Engine/ cambelt/ cool/fuel Exhaust Susp’n/ steering/ wheel brg Elecrical (incl. engine management) PROFIT RECOVERY AT NATIONWIDE ACCIDENT Gearbox/ clutch/ trans/drive Stockwatch benchmarks listed auto retail companies against the FTSE 350 General Retailers index The fact that drive-train jobs represent 10% of the number of routine services is, of course, self-limiting because the high cost means owners of older cars scrap them when repairs far exceed the car’s worth. In the same way, insurance companies write off cars when accident damage is ‘beyond economic repair’. The group has expanded with the acquisition of Exway, in July 2013, Howard Basford in February 2014 and, last month, Derek Gladwin in the East of England. The acquisition of Gladwins is anticipated to be earnings enhancing in the first full year following the acquisition. So what happens when our present crop of highly complex cars are 20 years old? I have no doubt that vehicle technicians are more than capable of keeping up with the technology. And the build quality of cars improves every year pushing back the possibility of failures. During the six months, group revenue of £90.0m (2013: £79.1m) included £7.1m relating to Howard Basford and approximately £3.0m from Exway. Insurance revenue, which comprises 73% of the group’s activities, grew by 12% and fleet revenue grew by 22%, which was almost entirely organic. However, when things do go wrong in the future, prohibitive repair costs could be a factor leading to a decline in the number of older cars on our roads, which some people would say is a feature rather than a bug. The company has plans to extend its presence in the higher margin retail market. www.auto-retail.com So as I drove home that day, I wondered if that truly amazing hybrid would make it to 18-years-old like the Peugeot. Somehow, I doubt it. Author Chris Oakham is a director of Trend Tracker (www.trendtracker.co.uk) Photocopying these pages may break copyright law DECEMBER 9 OCTOBER 2014 2007 Oct p10,11_Oct p8,9 07/10/2014 15:56 Page 8 ANALYSIS MID-YEAR SUFFERS PROFITABILITY JITTERS by Mike Jones “ T he average UK motor Anecdotally KEY PERFORMANCE INDICATORS (NATIONAL AVERAGE) retailer made a marginal Rolling 12 Rolling 12 we know of a Bench-mark Key ratio months June ‘14 months June ‘13 profit during July of number of SALES £3,800. While this is better than dealers who making a loss, it is significant in Used: New Sales 1.5:1 Minimum 0.91:1 0.87:1 performed that it represents a step Vehicle Sales Expenses significant self backward from the prior year 61.68% 50% Maximum 63.2% as % Gross profitability, with the average registration dealership making £6,400 in July Sales Per Salesman exercises in 197 150 198 2013. (Annualised) June This is beginning to become a Used Vehicle Stock Turn recurring theme, with profits being 45 days 56.4 54.73 In Days lower than their prior year comparatives in three of the seven Used Car Profit Return on 80.8% 100% 82.0% months making up the year-toStock (Annualised) date. AFTERSALES It should be noted they were 80% Minimum Overhead Absorbtion 56.4% 56.6% small, mid-quarter months and performance has been significantly Overall Workshop Efficiency 82.0% 80.8% 100% ahead once target bonuses are 75.8% 75% Minimum Gross Profit on Labour Sales 75.9% brought into the equation, Service Expenses as % of however it does show that retailers 40% Maximum 56.6% 57.3% Gross are selling significant volumes of cars at decreasing margins as they Hours Per Retail Job Card 1.65 2.5 Hours 1.65 strive toward hitting the PARTS manufacturer targets. 22.2% 21% - 23% 22.3% Parts Gross Profit on Sales While profits were lower, turnover has continued to rise, Parts Expenses as % Gross 44.7% 40% Maximum 44.7% with average dealership sales up Parts Stock Turn 7.84 8 times 8.15 11% in the month compared to 3% 1.35% 1.51% Net Profit as % of Total Sales July 2013. While this bodes well for the achievement of quarter three targets, and a significant amount of vehicle sales bonus as a positive momentum we were reporting result, it does reinforce our belief about earlier in the year appears to have abated. dealers merely shifting metal to hit targets. Looking in more detail at the statistics we Indeed, while we have seen some months see that aftersales contribution is increasing, fall behind profitability levels earned in 2013 however it is being slightly exceeded by the as noted above, this has not been the case rate of increase in overheads. Given the level for turnover. This has been on a relentless of facility investment currently taking place increase since December 2012 and, with we expect overheads to continue to rise. We many dealers producing record delivery are also seeing dealers starting to take on numbers in September, shows no sign of additional admin and accounts staff to stopping. process increased volumes of transactions Although it has fallen back slightly from further pushing up back page expenses. the June high, net profit as a percentage of Service department volumes are increasing overall sales has remained over 1.5% and with the volumes of hours sold on the rise. average profit per site has stabilised at This is clearly being positively impacted by £225,000. It will be interesting to monitor the increase in the vehicle parc and the these ratios as we move through the next volume of internal work. While labour months. efficiency has only risen to 82% on a national We will gain an indication from August, average basis we are starting to see however it will only be once the September technicians being poached by competitors statistics are compiled (and the bonuses for the first time since the recession. This recognised) that we will see whether dealers will inevitably produce wage inflation. are generating additional profit from all the One matter which is being continually additional turnover. raised as we visit dealerships is the virtues of Overhead absorption has been static at service plans. At ASE we are strong 56% for the past three months and the advocates of service plans as the businesses OCTOBER 2014 Photocopying these pages may break copyright law www.auto-retail.com Source: ASE plc “ 10 Oct p10,11_Oct p8,9 07/10/2014 15:56 Page 9 ANALYSIS which we visit who have the highest level of new and used car customer retention, have a very high service plan penetration. We are, however, currently seeing a large differential in the sales process among dealerships and brands. The top performers are achieving high levels of penetration without having to discount their retail labour rate. This is achievable with the right sales process. Convenience and certainty over costs is enough to convince customers to sign up. Unfortunately we see too many businesses going for the discounted sale which is going to eat into gross profit margins, particularly if we see significant wage inflation. In line with our expectations we have seen a rise in used car average stand-in-values in June, which are now back above £9,000, a 7% increase on the comparative value in July 2013. The increase in value appears to be down to general price increases in the used car marketplace allied to retailers holding newer vehicles in stock. Anecdotally we know of a number of dealers who performed significant self registration exercises in June, which could see the dealers in significant difficulty as we close the year. Used car gross profits have not kept up with the increase in prices and have remained static. We are therefore seeing gross profit margins at their lowest level for two years and on a downward trend. From investigations we have performed with a number of concerned dealers in the past quarter the reason for this is that they are putting the same amount across the vehicle and achieving a consistent level of gross profit. The problem is that the asset is now worth significantly more. This is accentuated among the luxury car dealers where we frequently see used car return on investment at 30% to 40% as a result of low comparative margins and slow stock turn. August typically is the largest loss making month of the year for the average UK motor dealer being a mid quarter month which is affected by a significant volume of holidays. We do not expect 2014 to be any different and are forecasting losses to be greater than those made in 2013. This will, however, all be caught up in September once the quarterly bonuses are introduced. Profitability looks to be remaining strong for the remainder of the year as the market is forced by the brands to achieve their desired registration targets or market shares. The most profitable dealers will be the ones who can successfully find end-customers for those vehicles. Author Mike Jones is chairman of profitability specialist ASE plc (www.ase-global.com) WHY YOU SHOULD KEEP YOUR FOCUS ON GAP With competition in the GAP insurance market currently under the scrutiny of the FCA, it’s important not to lose sight of the positives. Firstly, let’s keep in perspective that the FCA acknowledged within their market study report there isn’t anything fundamentally wrong with GAP insurance as a product and that it does provide valuable cover for consumers. In addition, they also turned up very little evidence to suggest there were any issues with the sales processes employed by retailers in relation to GAP. No doubt, you’ll also be able to recount many cases when one of your own customers has unfortunately had to call on their GAP insurance following a write-off – I bet they were very happy with their purchase decision weren’t they? To further illustrate the point, the Financial Ombudsman Service (FOS) recently released their latest complaints data and complaints relating to GAP that reach the FOS are, relatively speaking, few and far between. In the past full year, there were 247 new GAP complaints referred to the FOS compared to 309 the year before. To put that into perspective, in the past full year FOS received 477 new personal accident insurance complaints, 551 relating to mobile phone insurance, 7,190 for motor insurance and, perhaps not surprisingly, close to 400,000 in relation to PPI. While ideally there would be even fewer GAP complaints reaching the FOS, it is encouraging to see such a relatively www.auto-retail.com low number. It should give retailers confidence that GAP insurance products continue to meet an important customer need and the processes involved in selling it are robust and working properly to deliver the right consumer outcomes. The FOS quarterly report also revealed the continuing trend in the reduction of the number of GAP complaints being upheld in the favour of the consumer. For the period between April and June this year, just 16% of FOS complaint cases relating to GAP were upheld in the consumer’s favour. In the past full year that figure was 25%, the year before that it was 28% and the year before that 44%. This trend indicates GAP providers do, on the whole, have good complaints management processes that, in the majority of cases, lead to the correct decisions being made. It’s important this is recognised as a positive for GAP insurance. If you compare the 16% uphold rate for GAP in the most recent quarter with, for example, motor insurance where it was double that at 32%, you can feel confident that GAP is a good product with good levels of customer satisfaction. Author David Parrondo is deputy managing director at MAPFRE ABRAXAS, a partner in Auto Retail Bulletin. You can contact them on 0845 6838795 or by email: [email protected] Photocopying these pages may break copyright law DECEMBER 11 OCTOBER 2014 2007 Oct p12,13 _Oct p4,5 07/10/2014 15:56 Page 8 FLEET SME COMPANY CAR RISE PREDICTED “ What is clear is that the role of the traditional fleet manager is changing, becoming broader and more complex C ar and van retailers look set to benefit from a more optimistic outlook in the company car market. Figures from the 2014 edition of the respected Corporate Vehicle Observatory Barometer, by leasing firm Arval, show a marked increase in the likelihood that smaller businesses will grow their fleets in the next three years. The growth rate for larger businesses has eased. With smaller businesses more commonly buying or leasing direct from car retailers and larger firms typically using lease companies or going direct to car makers, the swing from 9% looking to increase fleets in 2013, to 17% in 2104 for SMEs is positive news for UK franchised dealers. Growth potential from larger fleets is still positive, with a balance of 15% predicting growth in the next three years. This figure stood at 18% last year. “ MOBILITY Retailers also need to be aware that the role of the mobility manager (rather than simply fleet or car manager) is becoming a more popular one in the UK. The CVO Barometer suggests that for a number of larger companies (100+ employees) the modern fleet manager has much wider scope than just company vehicles. For around a third of larger companies, there is a function that manages travel as well as the vehicle fleet. This could encompass things like train travel, flights and taxis alongside the normal responsibilities of a fleet manager. This trend is even stronger in other European countries surveyed than it is in the UK. Mike Waters, Senior Insight & Consultancy Manager at Arval explained: “Traditionally the model within most large companies has been to employ a specialist fleet manager to manage all aspects of the vehicle fleet while outsourcing non-vehicle travel to specialist providers. This may still be the case but it may also be that the fleet manager has taken responsibility for these supply arrangements. What is clear is that the role of the traditional fleet manager is changing, becoming broader and more complex.” Balance = Fleet growth will increase - Fleet growth will decrease. Base: companies with corporate vehicles = 100% FLEET GROWTH POTENTIALIN NEXT THREE YEARS. % WHICH THINK THAT THE TOTAL NUMBER OF VEHICLES OF THEIR COMPANY FLEET WILL... Decrease Increase Balance 2014 Balance 2013 Balance 2012 Balance 2011 + 17% + 9% + 17% + 12% + 6% + 4% + 4% + 4% + 15% + 18% + 10% + 14% + 12% + 10% + 7% + 14% % OF COMPANIES WITH A FUNCTION THAT COVERS BOTH CORPORATE FLEETS AND TRAVEL 36% 27% 12 OCTOBER 2014 41% 39% UK Europe Photocopying these pages may break copyright law SMEs The new report shows that when it comes to managing company vehicles, small businesses continue to lag behind larger companies which could be costing them money at a time when they can ill afford it. Across a number of key areas, larger companies are much more active on management techniques. Less than 10% of companies with fewer than 100 employees are buying cars for low fleet CO2, reporting on environmental performance, communicating with drivers to reduce costs or reporting for accounting purposes. Fewer than 5% are reporting on vehicle reliability, utilising expert consultancy, or using pool cars and no UK SME reported implementing eco driver training. Only 1% of small companies have tackled grey fleet usage, an area that not only has the potential to lower cost but also poses a significant duty of care risk. In contrast, more than a quarter of larger companies optimise and report on vehicle CO2, communicate with drivers to encourage cost saving and report www.auto-retail.com Oct p12,13 _Oct p4,5 07/10/2014 15:56 Page 9 for accounting purposes. While these larger companies can still do more to PERCEIVED EVOLUTION OF AVERAGE DURATION. % WHICH THINK THAT DURATION OF USAGE IN THE COMPANY HAS… better manage their fleets, many demonstrate sound practices that smaller companies could benefit from. “Smaller businesses could clearly 2013 2014 2013 2014 2013 2014 2013 2014 benefit from accessing the very same external resources that help larger Passenger Cars fleets to optimise performance. Increased Many large fleets work in partnership with a leasing or fleet management Decreased 2013 2014 2013 2014 2013 2014 2013 2014 provider and reap the benefits of access to this specialist resource. Fleet size does not preclude any Light Commercial company from working with fleet Vehicles policy and management experts,” said Mr Waters. “It is understandable that a small business will have CONTRACT HIRE less in-house resource to allocate to the running of The majority of UK fleet professionals expect vehicle the vehicle fleet, but in neglecting their fleet policy resale values to fall this year while at the same time they may be exposing themselves to a higher degree the take-up of contract hire is expected to grow. of risk and additional costs. Increased certainty and a reduction in fleet risk “While not all of the policies that larger companies exposure are the key drivers for this. have in place are practical for their smaller The majority of the fleet professionals surveyed equivalents, by taking a pragmatic approach, there are expect vehicle resale values to fall this year and fleet definitely initiatives that they can quickly implement professionals in the UK are generally more pessimistic which would make a significant difference. in their outlook than their counterparts in other “Poor fleet practises cost small businesses money, European countries. expose them to risk and potentially damage their This view comes as no surprise with economic reputation. In the current economic climate, they conditions remaining difficult but also reinforces the can’t afford to get things wrong.” case for fleets to turn to contract hire. Removing a company’s exposure to the risk of VANS selling vehicles on the second hand market, it replaces New research shows the length of time that companies are running their light commercial vehicles this exposure with a fixed monthly cost for their vehicles. for is increasing. Indeed, the research shows fleet professionals at This trend is most prominent among the largest larger companies intend to develop the use of businesses where companies seeing an increase in contract hire at a stronger rate than other finance duration far outweigh those seeing a decrease. options, a move that is likely to have been influenced Mr Waters explained: “It is not unusual for by current economic conditions. companies to run their vans for longer than cars. Mr Waters added: “These are clearly things that Because they are predominantly a business tool and provide benefit to companies at any time, but often not part of a salary package, essentially van drivers take on even greater significance during an economic have very little if any say over the vehicles that they downturn when as the research shows, cost pressures drive. are at their peak and organisations crave stability. “It is important to remember that while extending “The risk of the second hand vehicle market is a the period of the contract may look like an attractive major reason why organisations opt for operational option because it is perceived to be cheaper, it may not be in the longer term. Running costs can escalate leasing packages rather purchasing vehicles themselves. In recent years the used vehicle market as a vehicle gets older which is why it is important to has been volatile and we have seen significant consult with fleet management experts on the fluctuations in used vehicle values. optimum time for replacement. “In our experience, the main concerns surrounding “For companies of all sizes, contract hire is a smart longer contracts relate to the condition of the vehicle option to take because of the stability and certainty that it provides.” as it is more likely to pick up damage, the company perception that using dated or damaged vehicles Extracted from the 2014 Corporate Vehicle creates, an increase in vehicle downtime and Observatory Barometer, from Arval. More information maintenance costs and the potential increase in end at www.arval.co.uk of contract charges.” www.auto-retail.com Photocopying these pages may break copyright law DECEMBER 13 OCTOBER 2014 2007 ‘Don’t know’ and ‘Remained the same’ not displayed. Base: companies with Light Commercial Vehicles or Passenger Cars / Excluding second. FLEET Oct p14,15 _Oct p4,5 07/10/2014 15:56 Page 8 AFTERSALES AFTERSALES IN THE DIGITAL AGE “ If we're not careful, we'll end up offering businessclass services for Ryan Air prices T here are underlying issues of viability in the aftersales market, but the digital age brings with it new opportunities. Importantly, we mustn’t let price become the battleground. These were among the points discussed at Auto Retail Network’s conference on Aftersales in the Digital Age, held in partnership with Total and EMaC. Providing the morning session’s keynote address, Mark Squires, chief executive of Benfield Motor Group spoke on the topic of building an aftersales strategy. His thought provoking presentation looked at the dramatic changes that have already impacted on profitability, insisting that these were issues the industry needed to discuss. “ CRAZY ECONOMICS Among the issues he brought up was ‘crazy economics’, questioning the value of offers such as free vehicle health checks and service plans. “Of course we have a duty of care,” he said, “but a free vehicle health check is not free for the dealer.” With a typical health check taking 20 minutes or more, Mr Squires said the free vehicle health check actually represents a 15-20% drag on efficiency and is costing real money. “Is it an intelligent use of time?” he asked. “There is potential, but there are also lots of issues. What is the net marginal yield?” He went on to describe service plans as a potentially expensive tactic for customer retention. “It’s often offered on new cars – either free or at discounted prices – so it’s not surprising there’s good uptake, but what are we actually trying to achieve?” Arguing that new car buyers and loyal customers would probably have their cars serviced at the franchised dealer anyway, Mr Squires said: “It’s certainly difficult to make a case for service plans based on retention alone.” Further, he questioned who controls the pricing. “We have unwittingly deferred decisions to the people coming off the line, or the manufacturers have taken control of pricing,” he said, questioning whether either of these was in the best interests of the dealership. “Are the manufacturers ready for that responsibility, and do they understand the impact?” His discussion on ‘crazy economics’ went on to look at issues such as service interval confusion, how price match guarantees simply meant giving away margin, and the ‘courtesy car conundrum’. He concluded: “If we’re not careful, we’ll end up offering business-class services for Ryan Air prices. We can’t accept price as the battleground for aftersales. What we need is more innovation, particularly in digital, to highlight quality and promote differentiation.” 14 OCTOBER 2014 GEN Y Mr Squires was followed at the podium by Paul Dillamore of Urban Science, who began a session on ‘the changing marketplace’ by looking at demographics and customer expectation. Among the issues he noted were the changing habits and perceptions among Gen Y car buyers, and that women often feel misunderstood by car manufacturers. He also looked at the impact on aftersales of websites such as WhoCanFixMyCar.com, which now claims nearly 50,000 users and 96% recommendation rates. Also talking on the subject of the changing marketplace, Simon Crace, client services director at MB Advertising highlighted costeffective strategies for aftersales marketing. Importantly, he noted that 55% of emails are today opened on a mobile device, and that 98% of texts are viewed within five seconds. This throws up challenges to traditional advertising, but also opportunities for innovative approaches. CUSTOMER LOVE A lively panel session with Mike Jones of ASE, John McGuire, chairman of Phoenix Car Company and Simon Oldfield, managing director of the Customer Services Group of Mercedes-Benz UK, continued the debate into the changing marketplace, before Duncan Watts, property and e-commerce industry head at Google took the floor. Speaking on the subject of ‘how others love their customers’ he highlighted how the ‘human touch’ is the biggest differentiator for companies. “What we have found from Google surveys is that the companies who succeed are ones who do the basics well and who find ways to ‘put the magic in.’ “People will forget what you said. People will forget what you did. But they will never forget how you made them feel.” Looking at new digital marketing tools, Mr Watts argued that it wasn’t enough simply to keep pace with change. “To grow,” he asserted, “your business must exceed the pace of change.” Explaining how you do this, Mr Watts discussed the Google principle of ‘10x thinking’. “You take a problem, disregard all current ideas to address the problem, and you come up with something else. You’re not making something incrementally different: instead you are fundamentally changing something for good.” AFTERSALES REPORT Auto Retail Network’s own research on aftersales in the digital age, presented by managing director Rupert Saunders highlighted that while six out of 10 senior auto retail executives believe digital technology will either ‘significantly’ or ‘totally’ affect their aftersales Photocopying these pages may break copyright law www.auto-retail.com Oct p14,15 _Oct p4,5 07/10/2014 16:07 Page 9 AFTERSALES business, to date few franchised auto retailers have made he step change necessary to become truly digital and omnichannel at a car sales level, let alone an aftersales level. Radical new business models are notably absent, especially in the workshop. “Most of the ideas have been around for a long time,” said Mr Saunders. “Isn’t it time we started to look at something more radical?” Importantly, the report notes that a whole new generation of customers who have grown up in the digital age are almost upon us. The challenge is to adapt to a world in which customers are in charge and digital is a way of doing business. CUSTOMER OWNERSHIP Mike Norridge, international product marketing manager at ADP Dealer Services examined ‘Tools you can use to make it happen’. He not only highlighted a number of software tools and services, but left us with a highly thought-provoking question: “Who owns the customer?” A panel discussion followed, with David Hawkins, founder and director of Loyalty Logistics, Alex Rose, marketing director of WhoCanFixMyCar.com, and Scott Sinclair, industry manager at Google. Focusing on customer loyalty, the panel argued that it was important to reward customers, and to allow them to earn benefits. A key point raised was that it was vital to create ‘barriers to exit’, so that customers were less likely to look elsewhere for services. An important point raised by Mr Rose on the subject of aftersales was that price is not the biggest issue. Highlighting the habits of visitors to WhoCanFixMyCar.com, he said: “People generally have a ballpark window of price that they think is about right. They will generally rule out anything that looks too cheap. Then it’s about customer feedback.” This led on to a discussion among the panel of the importance of capturing customer feedback. “If it’s good, you can use it in your marketing,” said Mr Rose. “If it’s bad, you can do something about it and show that you’re taking action.” The panel also focused on increasingly smart shoppers who are making more informed decisions. It was noted that as many as 17 different touch points are usual, including phone calls, email, texts, websites, social media and many others that the dealer may never know about. Once you know how customers are using these touch points, you can get smarter about how you engage with your customers. LOYALTY LADDER The event was concluded with the day’s second keynote address, looking at why customer care programmes fail without authentic leaders. Julia Muir, lecturer on customer loyalty and relationship marketing at Loughborough University discussed the importance of the ‘loyalty ladder’. She outlined how the customer journey starts at the bottom of the ladder as a suspect. Moving up the ladder, the next stage is a prospect, and then a customer as the sale is made. But Mrs Muir argued that the journey should not stop there. “The relationship has to be developed, so that the customer moves up the ladder to become a client, enjoying perks and rewards,” she said. “But the ultimate goal is to move the customer to the top of the ladder as an advocate, where there is a real emotional involvement.” www.auto-retail.com DECIPHERING BIG DATA We recently sponsored and spoke at Auto Retail Network’s 'Big Data is a Big Deal' event. Harnessing the power of this data is essential to every modern company everywhere in the world and for automotive retail businesses, their approach to, and management of big data could be the difference between success and failure. While the importance of gathering and understanding customer data is nothing new, the internet, mobile phones, connected cars and online retailing offer countless new data sources and channels for doing business. Despite the rapidly growing importance of big data to business success, few automotive retail managers really understand this fairly abstract concept, so fail to harness its potential. In simple terms big data is just a collection of information – in our world, this is primarily about cars and customers. The scale of this data is almost unlimited, hence its description – big data. However, the myriad information sources are only useful, and crucially profitable, if it is closely managed and totally integrated across all dealership functions and then across all sites in a group. This management and integration of data is where most automotive retailers fall down, failing to capitalise on free, business- and relationship-boosting, information that can transform efficiency and boost profits if handled in the right way. Right now, every dealership should be gathering this hugely valuable data about their customers. By understanding everything from the publications they read and their driving profile to lifestyle choices and servicing preferences, dealers can enrich the picture an integrated dealership has of is current and potential customer base. Big data is here now and its importance to automotive retail, aftersales, customer retention and lead generation will only continue to grow in importance. Dealers can no longer rely solely on the size of a customer database or the reach of PR or paid-for marketing. Once initial contact has been made – in any form – the customer relationship should never end. This approach ensures that the data gathered simply grows as customers continue to interact with the dealership (remotely or onsite). While the evolving world of customer relations and management of their data is a moveable feast, one certainty is that the relationship is definitely becoming more fragmented, touch points are fewer and interaction is less personal. I’d suggest that instead of resisting this inevitable shift, dealers and dealer groups should embrace the opportunity. They should identify every opportunity to gather valuable data, record it intelligently, integrate the information across every dealership function and build their world around big data to secure and grow their businesses. Author Neil Packham is UK vice president and managing director for CDK Global a partner in Auto Retail Bulletin. Find out more at www.cdkglobal.co.uk Photocopying these pages may break copyright law DECEMBER 15 OCTOBER 2014 2007 Oct p16,17_Oct p16,17 07/10/2014 15:56 Page 8 BRAND INSIGHT NETWORK GUIDE: LEXUS by Hugh Hunston L exus, marking 25 years in the NETWORK INFORMATION: LEXUS UK market this month, is aiming to double its loyal • Sales last year: 9014 retailer network’s current average • Predicted sales this year: Over 11,000 return on earnings to what brand • New car sales network size 2014/2015: 46 director Richard Balshaw described as • Open points, in numbers and locations: 0 normal premium brand profitability • Authorised repairer network size: 53 levels of at least 2% within two years from what he admitted are frankly • Overhead absorption figure: c.54% insufficient levels. • Network profitability: c.0.9% Mr Balshaw said restoration of • Minimum new car showroom size: (city/rural) 6/4 adequate profitability and morale across • Online customer response time criteria: One working day the 46 Lexus centres marked the continuation down the brand’s recovery “Awareness and consideration remain big tasks path after the challenging post-2008 Lehman Brothers collapse which saw UK Lexus volume go for us so we will invest 25% more on media this year and again next year to match sales growth into rapid decline from a 2007 peak of 15,000 to moving back over the 10,000-unit threshold to 6,000 sales during 2010. 11,300 cars this year.” Despite coming eighth in the recent NFDA Although Lexus does not plan to change what poll on franchise value, behind Land Rover, it calls network density with no open points Mr Mercedes, BMW and Audi, due to relatively low Balshaw said that if geographical challenges come returns according to Mr Balshaw, he forecast that Lexus would achieve up to 16,000 registrations in to light with volume growth one or two new sites might be established. 2016. He said: “We stood by the network in difficult He said: “This year’s total should be up nearly times providing support when it was needed. Part 26% and we plan to repeat that in 2015 with new of that involved maintaining overhead absorption products like the NX SUV coming through. at a 54% industry norm. That was despite our Despite some tough times our network has been parc of up to eight-year-old cars diminishing from patient and loyal, with very few people giving up over 100,000 to 87,000 cars and falling warranty the franchise, as it remained profitable. throughput. We maintain strong retention levels with up to 80% of new car buyers taking service THE ANALYST’S VIEW plans. Dealers can see we are serious about our UK presence.” Lexus in the UK is close to being invisible beyond a loyal and fairly Responding to retailer unrest about allegedly hard-core minority clientele. After nearly 25 years in the British market its inertia remains down to brand awareness or lack of it. It is not about over complex CSI and sales target bonus having a poor image, but having one at all and one that is clearly structures Mr Balshaw said Lexus planned to defined. simplify the system early next year in consultation with the dealer council. The time is ripe for a total brand re-launch, below a corporate He added: “Our dealer council has a major excellence halo, with several new products coming through to fill influence through quite vocal dialogue and yawning gaps, like the NX compact SUV and RC350 coupe. challenging meetings. There is no benefit for The more distinctive new cars embody high technology and have them or us in having over complex programmes Lexus’s cast-iron reliability reputation, having previously lacked identity which only hold back performance.” and suffered from the bland leading the bland syndrome, plus hybrid Addressing the issue that retailers will not technology dependence. generate sufficient funds to invest in a corporate Within our ultra brand-conscious premium sector Lexus’s basic identity refresh programme, due to be applied marketing problem is the ‘not for me’ syndrome. For too long they over the next three or four years, Mr Balshaw said: have been perceived as being USA-centric but even worse many “An average of between £100,000 and £150,000 uninformed people think they are American cars, which is anathema. is a reasonably modest commitment and we will help through in-house leasing finance options.” I would adopt a carefully targeted bout of presence marketing, to bring The head of Lexus since April 2011 said it Lexus onto consideration lists. It needs some subtlety, more below would not compete in the backyard of Germany’s than above the line activity. That avoids the cost, clutter and noise involved in seeking higher share of media and TV advertising voice. dominant premium manufacturers at their own game, but remain a challenger brand with Lexus’s global approach excludes diesels: fine in the USA, but a major consistently improved recognition and European and UK operational handicap. Tougher EU emission consideration levels during the past three years. standards should put diesel under increasing technological and cost He forecast the new NX SUV and CT coupe, pressure, which might help Lexus. Good CSI results generate strong with respective targets of 3,500 and 1,000 units loyalty and re-purchase rates but that does not equate to high annually, would emulate the CT200h’s sustained conquest factors through preaching to the converted. 70% conquest level. A new CSI initiative is also Professor Kevin Morley, Aston University Business School underway, aimed at improving the customer “ The carretailing sector is unique in not knowing how much you make at handover “ 16 OCTOBER 2014 Photocopying these pages may break copyright law www.auto-retail.com Oct p16,17_Oct p16,17 07/10/2014 15:56 Page 9 BRAND INSIGHT journey though applying feedback rapidly LEXUS MODEL REGISTRATIONS and responsively to suit individual centres. 2012 Units 2012 Share 2013 Units 2013 Share 2014 Units 2014 Share Model From a retailer perspective Keith CT 55.97% 4704 46.38% 38.29% 4181 1744 Duncan, managing director of the multi GS 8.13% 683 7.69% 7.40% 693 337 franchise, Edinburgh-based EasternIS 12.45% 1046 21.95% 36.60% 1979 1667 LS 0.24% 20 0.84% Western Group, said the Lexus franchise, 0.66% 76 30 RX 23.19% 1949 23.13% 17.06% 2085 777 which the company has held since 1998, LF-A 0.02% 2 remained a double-edged challenge. Total Lexus 0.41% 8404 0.40% 0.43% 9014 4555 Eastern-Western provides sole Lexus representation in Scotland with Edinburgh average of 0.42%, while BMW and Mercedes account for and Glasgow outlets, turning over £40 million out of the 4.6% and 3.4% respectively in our territories and Audi takes group’s 15-franchise, 25-site £450m annual total and this 5.7% of the Scottish market. Lexus remains something of a year targeting 700 new Lexus sales, 35% up on 2013. rarefied franchise, with pretty thin air up there. We have While the average Lexus UK network return on earnings been doing it for a while and are not bad at it with a good is below 1% this year, with Eastern-Western registering hit rate from a limited line up.” above 1%, Mr Duncan said: “It is a challenge within our Mr Duncan maintained that colossal German ranges group because other premium brands we represent, dictated larger, land-hungry premises, plus more staff and (Mercedes and BMW) plus Audi enjoy higher shares of voice and market presence. You spin the Lexus plates but overheads. Lexus enjoyed the blessing in disguise of smaller the minute one falls off you lose profit centre money. operations, remaining lower-volume viable businesses with “Lexus stands at 0.26% in Scotland versus a British good sales and service hit rates. It is understood that BMW dealerships in Scotland require £20,000 daily revenue break-even levels while EasternKEERESOURCES’ VERDICT Western’s two Lexus sites, are closer to a combined £16,000. Lexus has a genuinely interesting and novel product portfolio but remains confined to niche status, due largely He added: “Pro-rata returns related to working capital are to petrol-hybrid dependence, the technology restricting pretty fair. The franchise lacks that comfortable tipping point business car appeal due to many companies maintaining where volume and scale become self-perpetuating in terms diesel-only policies. of parc and throughput. That is why the new NX SUV is crucial. We are virtually sold out with just 40 cars for This particularly inhibited the CT200h, which has under Scotland. It was delayed from September to October and achieved in sales terms, although Lexus responded rapidly and modified its CVT transmission to counter criticism of there has been a disproportionately strong response. If we an unrefined driving experience under acceleration. get sufficient NX numbers and the rest of the range sustains volume it could represent a step change.” That supposedly breakthrough model has had to run to Commenting on Lexus’s NFDA poll rating, behind stand still as the cost-effective new Audi A3, Mercedes Apremium rivals, Mr Duncan said: “Sadly that over-states class and second generation BMW 1-series landed in network morale out there, reflecting lack of profitability. quick succession. Lexus’s UK management are eminently accessible and Lexus’s great hope is that more stringent Euro6 emissions reasonable but they are requesting heavy new CI regulations put hybrids on more radar screens and the investment.” dominant German premium brands sell more of them, The Lexus veteran argued there was a disconnect between raising awareness and consideration levels. Expect the investing potentially six figures without equivalent annual usual suspects to continue upholding the diesel cause, revenue being generated and any Lexus funding had to be striving to maintain eco credentials and minimise cost increases. offset by sufficiently rapid turnover. Despite running what he described as a specialised and Volume growth of 29% for Lexus looks significant but specialist franchise with dedicated staff, Mr Duncan said leaves it below 0.5% of the market. Network viability, Lexus, in common with other brands, over complicated the particularly overhead absorption, must be challenging for running of franchises through prosaic CSI and sales standalone operations. performance bonus structures. There is nothing wrong with Lexus being perceived as an He said: “Lexus is not unique with systems dreamt up by upmarket complementary Toyota counterpart and there is folk who appear not to understand this business, that make merit in sharing resources and facilities. us jump over hurdles doing deals at an initial loss. Then we claw back via complex mechanisms, schemes within There are great expectations for the distinctive new schemes. Keep it simple; we know how to run our compact NX SUV but with a modest annual target volume businesses. The car-retailing sector is unique in not knowing of 3,500 units it will be limited to worthy minority player status. Along with the RC coupe there are two reasons for how much you make at handover.” dealers to be cheerful. Mr Duncan praised Lexus for becoming less USA-centric in its product portfolio and applying more frequent model We believe the NX can have a stable extended RV refresh and replacement cycles. Ever more reliable products honeymoon, and in whole-life-cost terms it ranks just 0.65p meant negligible warranty income and the predominant per mile dearer than an equivalent BMW X3 X-drive over hybrid powertrain is consistently more reliable than most three years and six months and 1.8p cheaper than an Audi Q5 quattro. diesel counterparts. Mark Jowsey, manufacturer liaison director, KeeResources. www.auto-retail.com Author Hugh Hunston is Auto Retail Bulletin’s new car expert Photocopying these pages may break copyright law DECEMBER 2007 OCTOBER 2014 17 Oct p18,19_Oct p8,9 07/10/2014 15:56 Page 8 EUROPE MAKERS SNUB VOLUNTARY CODE OF CONDUCT by Tristan Young “ It is not ranchised retailers will have to rely on our plan to legislation from the European Commission to clamp down on unfair agree to a trading practices after ACEA, the organisation code that represents European car manufacturers, said it does not intend to agree a post-Block Exemption code of conduct. Speaking to Auto Retail Bulletin at last month’s European Car Dealer Conference organised by CECRA, Marc Greven, ACEA’s legal affairs director, said the organisation wasn’t planning to commit to the code of conduct which is currently on the table. The code of conduct has been worked on by CECRA over the past year as a way of making car makers commit to fair play with retailers following the European Commission’s scrapping of Block Exemption in May 2013. The aim of the code of conduct is to reduce unfair trading practices between manufacturers and retailers. “It is not our plan to agree to a code,” said Mr Greven. “This is because we see this as something that is between individual manufactures and retailers. It comes down to contract level.” He added that it was not ACEA’s job to work on this. “We work on the legal side, that’s our job.” The ACEA stand-point means that retailers across Europe must now rely on a commitment by the European Commission to seek a legislative F “ pop them on your card. solution if a code of conduct isn’t reached by the end of 2014. However, even this is not guaranteed. The EC changed its wording this year from “intends” to “reserves the right” to bring in legislation on unfair trading practices. Speaking at the CECRA conference last week, Carlo Pettinelli, director of industrial innovation and mobility industries, at the EC’s DG Enterprise and Industry said the wording was changed because he couldn’t promise something on behalf of a the next DG. Indeed, the new DG will oversee a larger department also including internal markets. He did, however, add the subject was firmly in the minds of the department. Bernard Lycke, director general of CECRA, said the lack of regulations particularly exposes smaller rather than larger dealer groups. “CECRA predicted there would be more unfair trading practices, due to the lack of regulation,” said Mr Lycke. “And in early 2013 we published a report following lots of dealer feedback.” He recommended that because of the lack of progress with ACEA, individual countries should lobby their governments for local level laws pushed by national organisation, “even if it means a fragmentation of the markets”. Author Tristan Young is the editor of Auto Retail Bulletin Let’s g BCA lets you buy today and pay later. From now on, ADP Dealer Services will be CDK Global. This is just the next step in our journey. And part of our ongoing commitment to drive success for our clients around the world. Here’s what we promise to do. Simplify our products so your job is easier Innovate new ways to connect you with your customers Serve you as a trusted partner We’ve developed a trade buyer finance facility to help you grow your business. Once you’ve been approved, you can buy vehicles in any of our auctions. We will fund the hammer price, fees, VAT and also delivery costs, and you don’t have to pay a penny until you sell the vehicle. Deliver business insights you can act upon. Helping you grow your business. Formerly Dealer Services For more information please visit www.cdkglobal.co.uk bca.co.uk/partnerfinance 18 OCTOBER 2014 Photocopying these pages may break copyright law www.auto-retail.com Oct p18,19_Oct p8,9 07/10/2014 15:56 Page 9 EUROPE RETAILERS WARNED ON DATA SUPPLY C CORE PRINCIPLES ar retailers have been warned to make sure they are aware of data supply 5. Data must not be kept longer than 1. Data must be processed fairly and necessary lawfully agreements within their franchise contracts. 6. Data must be processed in accordance 2. Data must be processed for specified, Speaking at the European Car Dealer with individuals' rights explicit & legitimate purposes Conference Miles Trower, a partner at solicitors TLT, said that retailers must weigh-up the worth 7. Data must be kept secure 3. Data held must be adequate, relevant and not excessive of such agreements. 8. Data must not be transferred outside the “Data laws have been around for a long time, EEA unless adequate protection is in place 4. Data must be accurate and date but data collection is growing faster than ever,” said Mr Trower. “Data is key to growth. Who owns the data; car “However, if a dealer agreement allows for data to makers or dealers? And if it’s supplied to the other pass to the manufacturer then the ‘who owns it’ then can they use it? argument is academic.” “Each customer has control of their data, but they Mr Trower said one solution was to use separate can provide consent for it to be used. But this must databases for different business departments: be clear. However, the database structure can be “Separate databases can be an advantage [particularly owned by a company.” in the sale of a business or the loss of a franchise]. So Mr Trower added that data laws are under review you could have a new car database, used car database and are likely to get stronger. and an aftersales one, not just a single one including “The dealer’s contract with the manufacturer should new cars. cover data, but often doesn’t. There is increasingly “It can be worth it to sign-up to an agreement to broad use of data by car makers. Permissions can supply data to the manufacturer, but the judgment cover new cars – connected cars – aftersales and so on. must be made by retailer.” TAKING ANALYTICS TO A NEW LEVEL Today’s analytics infuses and enhances all areas of automotive retail. It enables OEMs to offer a personal and seamless customer experience. It increases employee engagement and drives more efficient business processes. However, in order to harness its power, OEMs require a KPI-driven implementation strategy that is flexible, scalable and tailored to their business goals. Embracing analytics allows OEMs to create a more differentiated brand experience for automotive consumers. To do this they require a partner capable of offering that rare combination of thought-leadership, deep industry experience and appropriate technology tools. Only then can they transform the vast quantity of available customer and vehicle data into profit-generating insights throughout their organisation. The bottom line is that success hinges on a KPI-driven approach that secures optimal connectivity between the car, the customer and the retail experience. There are three key objectives of a data-driven retail strategy: 1. Turn big data into action by identifying a customer’s DNA – the patterns and factors that lead to sales – and use analytics and data modeling to provide the insights that improve dealer performance. 2. Implement a people@retail program to ensure that sales and service employees have the data, tools and techniques necessary to evaluate and improve customer experiences. 3. Create a connected retail strategy that automatically corrects sales strategies to reflect customer needs so www.auto-retail.com they don’t abandon your brand in favour of a competitor more in tune with their desires. REINVENTING RETAIL IN A BIG DATA AGE In today’s multichannel retail environment, your dealership is only one stop along the customer journey. If you want to maximize the impact of your retail network you have to build your retail strategy around a digitalphysical fusion – achieving excellence at every touch-point. At MSXI we have been researching the impact of big data for some time. We have worked with several global automotive brands to develop integrated and proactive approaches that anticipate customer behavior as well as identifying and preventing customer defection before it happens. In addition to data analysis we provide sales coaching and talent assessment as well as customer retention strategies, mystery shopping, social listening, live chats, call screening and contract labour utilisation. As a result we have discovered that the development of proprietary customer insights combined with distinctive data capabilities not only generates new revenue streams but also accelerates long term business growth. MSX International is the one of the leading global providers of outsourced business and training solutions. With 5000 industry experts globally, we offer solutions and tools based on more than 70 years of hands-on experience in automotive retail network and human capital solutions spaces. Author Felix Serrano is vice president UK, Iberia and Latin America of MSXI (www.msxi.com), a commercial partner in Auto Retail Bulletin Photocopying these pages may break copyright law DECEMBER 2007 OCTOBER 2014 19 Oct p20,21_Oct p19,20,21 07/10/2014 15:57 Page 1 ANALYSIS MANUFACTURER PROMOTED RETAIL FINANCE OFFERS MAKE & MODEL ALFA ROMEO MiTo, Twinair Sprint Giulietta 1.4 Progression 1.4 Progression Quadrifoglio Verde AUDI A1 Sport 1.4 Sportback Sport 1.4 A3 Sport 1.2 Sportback 1.2 A4 Saloon SE Technik 2.0 TDi Avant SE Technik 2.0 TDi RS 4 Avant 4.2 FSI A5 Sportback S Line 2.0 Coupe S Line 2.0 RS5 Cabriolet 4.2 Q3, S Line Plus 2.0 TDi CITROEN C1, VTi C3, VTR+ C3 Picasso, VTR+ DS3, DStyle DS4, e-Hdi 115 C4, Cactus C4 Picasso, Hdi VTR+ Grand C4 Picasso, e-HDi FIAT Panda Pop 1.2 Easy 1.2 4X4, 1.3 Punto Pop 1.2 GBT 1.2 500, Lounge 1.2 500S 1.2 0.9 Twinair 500L Trekking 1.6 MPW Pop Star 1.4 FORD Ka, Studio 1.2 Focus, Studio 1.6 Fiesta Studio 1.2 Titanium 1.0 B-MAX, Titanium 1.0T C-MAX, Zetec 1.6 Kuga, Titanium 2.0 S-Max, Zetec 2.0 HONDA Jazz, 1.4 i-V-TEC Civic, 1.8 SE Plus CRZ, 1.5 Sport CR-V, 1.6 i-DTEC Accord, 2.0 i-VTEC HYUNDAI New generation i10, SE 1.0 i20 Classic 1.2 Active 1.2 ix20 Classic 1.4 Style 1.4 i30 Classic 1.4 Sport 1.6 i30 Tourer, Classic 1.6 ix35, SE 1.6 i40, Active 1.7 CRDi i40 Tourer, Active 1.7 CRDi OFFER OTR OFFER DEPOSIT MONTHLY PAYMENT £18,750 PCP, £1,000 dealer contrib £2,464 48 £18,750 HP, £500 dealer contrib £7,918 36 £30,770 HP, £2,000 dealer contrib £12,102 36 Interest rate down on A1, low rates on RS4 and RS5 Cabriolet FINAL PAYMENT APR OFFER ENDS n/a 0.0% 31/12/14 £209 £287 £463 £5,463 n/a n/a 0.0% 0.0% 0.0% 31/12/14 31/12/14 31/12/14 £16,705 £17,325 PCP PCP £3,311 £3,369 36 36 £219 £229 £8,002 £8,300 7.4% 7.4% 31/12/14 31/12/14 £20,500 £21,120 PCP PCP £3,873 £3,728 36 36 £259 £269 £10,452 £11,001 7.5% 7.4% 31/12/14 31/12/14 £29,620 £30,920 £57,160 PCP, £4,300 dealer contrib PCP, £4,300 dealer contrib PCP, £4,000 dealer contrib £5,810 £5,879 £8,616 36 36 36 £299 £319 £599 £12,439 £13,170 £28,773 7.4% 7.4% 4.9% 31/12/14 31/12/14 31/12/14 £34,425 PCP, £4,000 dealer contrib £6,720 36 £369 £34,675 PCP, £4,300 dealer contrib £6,557 36 £359 £69,505 PCP, £6,000 dealer contrib £13,883 36 £779 £34,600 PCP, £1,000 dealer contrib £5,975 36 £359 Lower deposits required on a number of Citroen models £10,015 PCP £1,557 36 £129 £12,615 PCP, £2,000 dealer contrib £2,077 36 £149 £15,265 PCP, £2,750 dealer contrib £2,279 36 £169 £16,570 PCP, £1,000 dealer contrib £3,285 36 £189 £21,595 PCP, £4,500 dealer contrib £3,265 36 £229 £16,110 PCP £3,295 36 £205 £19,830 PCP, £1,000 dealer contrib £3,903 36 £229 £20,970 PCP, £1,000 dealer contrib £4,194 36 £255 No consistency across the range, but some interesting deals nonetheless £14,884 £15,410 £27,845 £20,032 7.4% 7.4% 4.9% 7.2% 31/12/14 31/12/14 31/12/14 31/12/14 £4,798 £4,116 £5,308 £6,906 £7,145 £6,900 £8,417 £8,473 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 £7,645 PCP, £1,450 off £9,895 PCP, £1,000 off, £500 dealer contrib £15,295 PCP, £1,400 dealer contrib £119 £129 £219 48 48 48 £119 £129 £219 £2,649 £2,790 £4,944 6.4% 2.7% 4.2% 31/12/14 31/12/14 31/12/14 £8,220 £10,320 £11,820 PCP, £1,955 off PCP, £1,455 off PCP, £500 dealer contrib £149 £189 £1,499 48 48 36 £149 £189 £159 £2,792 £3,403 £5,367 8.0% 8.1% 5.5% 31/12/14 31/12/14 31/12/14 £11,970 £13,370 PCP, £500 dealer contrib PCP, £500 dealer contrib £1,499 £1,499 36 36 £159 £179 £5,605 £5,860 5.8% 3.6% 31/12/14 31/12/14 £358 £332 £286 £245 n/a £6,679 n/a £4,468 0.0% 7.7% 0.0% 3.7% 31/12/14 31/12/14 31/12/14 31/12/14 £155 £219 £3,351 £4,975 7.2% 4.2% 31/12/14 31/12/14 £109 £159 £179 £239 £239 £289 £5,193 £6,737 £7,397 £6,605 £13,186 £10,605 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 £189 £423 £305 £229 £415 £6,183 £9,117 £7,178 £12,224 £7,760 0.0% 0.0% 6.9% 0.0% 6.9% 31/10/14 31/10/14 31/10/14 31/10/14 31/10/14 £99 £4,612 5.9% 31/12/14 £19,790 HP, £500 dealer contrib £6,402 36 £19,790 PCP, £1,000 dealer contrib £332 48 £15,840 HP, £500 dealer contrib £5,044 36 £15,840 PCP, £1,000 dealer contrib £245 48 Ford mainains focus on low monthly payments on PCP schemes £8,445 PCP, £500 off, £552 dealer contrib £155 36 £13,995 PCP, £1,950 dealer contrib £241 36 £9,695 PCP, £300 off, £750 dealer contrib £1,659 24 £1,440 PCP, £500 off, £750 dealer contrib £3,833 24 £15,345 PCP, £1,250 off £4,421 24 £17,680 PCP, £500 off, £2,500 dealer contrib £3,603 24 £24,595 PCP, £1,500 dealer contrib £5,466 24 £24,840 PCP, £1,500 dealer contrib £6,933 24 No deposit required on Civic, 0% finance deals available £15,445 PCP, £500 dealer contrib £4,225 24 £24,360 PCP, £500 dealer contrib £0 36 £21,125 PCP £5,302 36 £27,315 PCP £6,846 36 £26,580 PCP £6,704 36 Zero percent finance on i30 Tourer £8,595 PCP £2,262 24 £8,495 £9,595 PCP, £250 dealer contrib PCP, £750 dealer contrib £1,970 £2,174 24 24 £119 £129 £4,037 £4,228 5.9% 5.9% 31/12/14 31/12/14 £12,515 £14,615 PCP, £250 dealer contrib PCP, £500 dealer contrib £2,868 £2,757 36 36 £179 £219 £4,165 £4,930 5.9% 5.9% 31/12/14 31/12/14 £12,395 £15,385 £14,690 £18,600 £19,105 £20,355 PCP, £500 dealer contrib PCP, £500 dealer contrib HP PCP, £1,500 dealer contrib PCP, £1,500 dealer contrib PCP, £1,500 dealer contrib £3,211 £5,240 £7,526 £3,221 £4,010 £5,218 36 36 36 36 36 36 £159 £199 £199 £249 £269 £299 £4,101 £5,057 n/a £6,757 £5,631 £6,290 5.9% 5.9% 0.0% 5.9% 5.9% 5.9% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 MOTOR FINANCE MADE SIMPLE blackhorse.co.uk TERM Zero percent interest rates maintained, dealer contributions up on Giulietta with PCP £15,345 HP £0 36 £438 Finance subject to status. Indemnities may be required. Oct p20,21_Oct p19,20,21 07/10/2014 15:57 Page 2 ANALYSIS MAKE & MODEL MAZDA 2, 1.3 Sport Venture 3, 1.6 SE 5, 2.0 Sport Venture 6, Saloon SE-L CX-5, SE-L MERCEDES-BENZ A Class 180 SE B, 180 SE C, 200 Sport CLA, 180 Sport CLS, 220 BlueTEC E, 220 BlueTEC SE GL, 350 BlueTEC AMG Sport GLA, 220 CDI AMG Line ML, 350 BlueTEC AMG Line S, 350 BlueTEC SE Line SL, 400 AMG Sport SLK, 250 CDI NISSAN Note, Visia 1.2 Juke, Acenta Premium Qashqai, Visia DIG-T 370Z, GT RENAULT Twingo, Play SCe Clio, Expression+ 1.2 Captur, Expression+ TCe90 Zoe, Dynamique Intens Scenic, Dynamique 1.5 SEAT Mii, I-TECH 1.0 Ibiza, Toca 1.4 SC Leon, 1.2 SE Altea 1.6 I Tech XL 1.6 I Tech SKODA Citigo, SE 1.0 Fabia, S 1.2 Rapid, S 1.2 Roomster, S 1.2 Superb, S 1.4 Octavia, Hatch S 1.2 Yeti, S 1.2 SUZUKI Alto, SZ Splash SZ2 1.0 TOYOTA Yaris, Active 1.0 iQ, 1.0 Aygo, x-cite 1.0 Auris, Active 1.3 Verso, Active 1.6 Rav4, Active 2.0 Prius, T Spirit 1.8 GT86, Boxer 2.0 VOLKSWAGEN Up!, 1.0 Polo, SE 1.0 Beetle, 1.2 Golf, S 1.2 Jetta, 1.4 Touran, S 1.2 Passat Saloon, S 1.4 Sharan, S 1.4 Touareg, 3.0 TDI R Line Phaeton, 3.0 TDI VOLVO V40 T2 R-Design Cross Country D2 SE V60, D2 R-Design V70, D4 SE S60, D2 R-Design S80, D2 SE XC60, D4 FWD R-Design XC70, D4 FWD SE OFFER OTR OFFER DEPOSIT MONTHLY PAYMENT FINAL PAYMENT £217 £277 £321 £340 £279 £20,715 PCP, £472 dealer contrib £2,495 36 £269 £22,535 PCP, £1,635 dealer contrib £2,999 36 £289 £29,495 PCP, £2,785 dealer contrib £3,198 36 £329 £2,545 PCP, £679 dealer contrib £3,999 36 £309 £46,500 PCP, £4,879 dealer contrib £6,799 36 £499 £34,915 PCP, £3,884 dealer contrib £4,999 36 £355 £60,750 PCP £9,157 36 £729 £31,035 PCP £4,027 36 £359 £53,930 PCP, £2,694 dealer contrib £8,366 36 £619 £66,910 PCP £10,789 36 £839 £72,500 PCP, £4,537 dealer contrib £7,299 36 £749 £33,795 PCP, £5,629 dealer contrib £4,279 36 £299 Price discount on Note, reduced interest rate on Juke plus higher dealer contribution £9,995 PCP £2,562 36 £115 £16,470 PCP, £1,250 dealer contrib £3,080 36 £199 £18,265 PCP, £750 dealer contrib £3,786 36 £209 £32,015 PCP, £1,500 dealer contrib £7,379 36 £370 Deals continue on selected models £9,995 PCP £2,355 48 £99 £12,495 PCP, £1,250 dealer contrib £1,745 48 £139 £14,195 PCP, £1,000 dealer contrib £1,855 48 £169 £15,195 PCP, £2,750 dealer contrib £2,250 48 £129 £17,732 HP £0 48 £369 Discount on Mii, reduced deposit on other models £9,995 PCP £2,762 36 £65 £12,870 PCP, £2,875 off £2,731 42 £109 £16,935 PCP, £1,000 dealer contrib £3,886 36 £175 £17,345 PCP, £2,000 off £5,188 £18,065 PCP, £2,000 off £5,018 Zero percent deals continue on selected models £9,060 PCP £2,526 £9,945 PCP £2,778 £11,690 PCP, £1,500 off £3,399 £12,105 PCP £3,469 £18,315 PCP, £1,500 off £5,153 £16,310 PCP £6,101 £16,715 PCP £4,794 Good headline monthly figures £5,999 PCP £861 £19,591 £21,212 £29,245 £23,225 £28,045 £31,420 £32,535 £35,110 PCP, £500 dealer contrib PCP, £500 dealer contrib PCP, £500 dealer contrib PCP, £4,250 dealer contrib PCP, £4,500 dealer contrib PCP, £4,500 dealer contrib PCP, £750 dealer contrib PCP, £4,250 dealer contrib £2,374 £3,199 £6,038 £6,344 £6,362 £7,466 £5,891 £8,262 Finance subject to status. Indemnities may be required. APR OFFER ENDS £4,375 £6,317 £6,022 £6,466 £10,240 0.0% 0.0% 0.0% 0.0% 5.9% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 £10,500 £9,600 £14,125 £12,500 £21,125 £16,950 £32,600 £17,950 £25,825 £30,000 £33,700 £16,600 6.5% 5.8% 4.9% 6.4% 5.5% 6.3% 6.1% 6.3% 5.4% 3.4% 0.0% 6.3% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 £4,726 £6,959 £8,511 £12,438 7.9% 6.9% 6.9% 4.9% 05/01/2015 05/01/2015 05/01/2015 05/01/2015 £4,292 £4,528 £5,841 £6,005 n/a 6.9% 6.9% 8.3% 6.9% 0.0% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 £4,957 £4,076 £7,106 0.0% 7.6% 4.9% 31/12/14 31/12/14 31/12/14 36 36 £219 £239 £5,856 £6,134 5.9% 5.8% 31/12/14 31/12/14 36 36 36 36 36 36 36 £65 £105 £129 £145 £169 £149 £179 £4,258 £3,491 £3,775 £3,560 £7,246 £6,413 £6,953 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.9% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 42 £99 £2,221 9.9% 31/12/14 £139 £2,945 9.3% 31/12/14 £188 £177 £183 £254 £308 £344 £408 £436 £3,278 £3,696 £5,148 £4,968 £6,028 £9,263 £9,749 £10,050 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 15/12/14 15/12/14 15/12/14 15/12/14 15/12/14 15/12/14 15/12/14 15/12/14 £95 £145 £185 £199 £255 £279 £305 £345 £539 £745 £3,964 £5,408 £6,009 £7,193 £6,495 £6,375 £6,237 £8,745 £19,598 £12,910 7.5% 7.4% 7.5% 7.2% 7.5% 7.5% 7.5% 7.5% 6.8% 6.5% 05/01/2015 05/01/2015 05/01/2015 05/01/2015 05/01/2015 05/01/2015 05/01/2015 05/01/2015 05/01/2015 05/01/2015 £249 £249 £299 £429 £299 £399 £329 £399 £10,145 £11,094 £10,550 £11,385 £9,157 £8,257 £14,365 £11,812 5.9% 5.9% 5.9% 6.9% 6.9% 6.9% 5.9% 6.9% 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 31/12/14 £7,999 PCP £853 42 Monthly payments down on most models £9,995 PCP, £1,000 off £1,000 36 £11,100 PCP, £1,000 dealer contrib £1,110 36 £11,595 PCP £1,160 36 £13,995 PCP, £950 off £1,400 36 £16,995 PCP, £775 off £1,700 36 £22,495 PCP, £1,000 dealer contrib £2,250 36 £25,295 PCP, £1,000 dealer contrib £2,530 36 £26,605 PCP, £1,000 dealer contrib £2,661 36 Interest rates and monthly payments reduced on selected models £8,635 PCP £2,372 36 £12,435 PCP, £1,000 dealer contrib £2,460 36 £14,835 PCP £4,121 36 £16,975 PCP, £750 dealer contrib £4,060 36 £18,815 PCP, £2,000 dealer contrib £3,504 36 £19,565 PCP £5,595 36 £20,375 PCP £5,698 36 £25,060 PCP £7,103 36 £47,500 PCP £14,232 36 £48,055 PCP £13,581 36 Hefty contributions on most models MOTOR FINANCE MADE SIMPLE blackhorse.co.uk TERM Prices creep up, but zero deposit and zero percent interest maintained £14,015 PCP, £500 dealer contrib £0 42 £17,955 PCP £0 42 £21,015 PCP, £1,500 dealer contrib £0 42 £21,755 PCP, £1,000 dealer contrib £0 42 £25,055 PCP £6,124 42 Increased dealer contributions 36 36 36 36 36 36 36 36 oct p22, 23_Oct p22, 23 07/10/2014 15:57 Page 8 ANALYSIS REGISTRATION GROWTH LEVELS OFF N Source: SMMT Source: SMMT Source: SMMT. Detailed analysis available from smmt.co.uk “ 22 OCTOBER 2014 Photocopying these pages may break copyright law www.auto-retail.com Source: SMMT. Detailed analysis available from smmt.co.uk “ TOP 15 BRANDS FLEET/RETAIL REGISTRATIONS, SEPTEMBER 2014 ew car MONTH END MONTH END MONTH END MONTH END LAST YEAR LAST YEAR registrations in PRIVATE FLEET PRIVATE FLEET September were FORD 27,240 27,082 54,322 26,358 24,726 51,084 at their highest level for VAUXHALL 18,085 23,090 41,175 18,087 23,223 41,310 10 years, hitting 425,861 VOLKSWAGEN 19,174 18,678 37,852 16,763 16,341 33,104 units, a rise of 5.6% on the AUDI 13,668 11,867 25,535 13,425 12,404 25,829 same month last year, BMW 12,579 12,312 24,891 12,244 15,064 27,308 according to the SMMT. MERCEDES 10,202 13,180 23,382 9,122 12,134 21,256 NISSAN 10,287 12,263 22,550 9,853 10,266 20,119 The third-best all-time PEUGEOT 10,890 6,975 17,865 9,326 9,834 19,160 September was close to the TOYOTA 8,091 9,141 17,232 9,254 7,658 16,912 430,763 units registered in HYUNDAI 6,203 8,662 14,865 6,290 8,189 14,479 September 2004 but still CITROEN 7,168 7,102 14,270 6,526 6,156 12,682 below the best-ever KIA 7,485 5,807 13,292 6,704 6,024 12,728 September, in 2003 when RENAULT 7,504 5,489 12,993 5,160 3,885 9,045 439,365 units were sold. FIAT 7,650 4,497 12,147 7,911 3,756 11,667 New car registrations in SKODA 5,885 5,106 10,991 5,419 4,961 10,380 March this year were also figures: “It brings great news September’s bumper volumes. close to 2004 levels. “Demand for the new 64-plate that the 64-plate change this The figures mean that has been boosted by intensifying month is the best performing registrations for the year-to-date month since September 2004. reach 1,958,196, up 9.1% on the confidence in the UK economy, The market remains significantly with consumers attracted by a same period last year, and high with increased footfall and wide range of exciting, indicate that growth is levelling interest from consumers which increasingly fuel-efficient, new off. show that the sector is stable and cars.” Mike Hawes, SMMT chief growing.” Senior automotive executives, executive, said: “September’s David Raistrick, UK speaking to Auto Retail strong performance underlined Automotive Leader at Deloitte, Network, said they were very the continuing robustness of the happy with the performance and added that company car sales UK new car market, particularly were also a good indicator of the had anticipated the slight in the context of last broader economic picture: “If slowdown in growth rate in the RETAIL REGISTRATIONS BY AREA, SEPTEMBER 2014 the new car sales are final quarter of the year. The % CHANGE AREA MONTH MONTH representative of the market had been growing by END END LAST YEAR performance of the UK 10% on a year-to-date basis. LONDON 32,991 31,256 5.55% economy, there are further signs As expected, demand in WEST MIDLANDS 26,186 24,420 7.23% that confidence within the September has been led by the NORTH WEST 25,335 24,197 4.70% business sector is improving. retail market (up 5.9% in the SCOTLAND 21,865 20,321 7.60% month) but there are clear signs Fleet and business car sales are SOUTH 19,131 17,968 6.47% of tactical registration by certain now seeing the sort of growth EAST 18,976 17,597 7.84% that has been provided by private brands. Auto Retail Bulletin YORKSHIRE 15,137 14,548 4.05% sales over the past two and half understands the September NORTH EAST AND CUMBRIA 13,759 13,396 2.71% years. This contributed to diesel market was 1.5% behind the WALES 10,972 10,246 7.09% sales exceeding petrol sales at the same period last year with two SOUTH EAST 8,475 7,801 8.64% end of August, and the private days to go to the month end. WEST 7,025 6,735 4.31% buyer continues to be attracted However, franchised dealers EAST MIDLANDS 6,882 6,786 1.41% SOUTH WEST 6,509 5,976 8.92% by the lower fuel consumption that Auto Retail Bulletin spoke EAST YORKSHIRE/LINCOLNSHIRE 4,546 4,468 1.75% levels offered by diesel power.” to were broadly positive, with NORTHERN IRELAND 3,357 3,149 6.61% many hitting targets and Summary 221,146 208,864 5.88% deliberately pushing Author Tristan Young is the registrations into October. editor of Auto Retail Bulletin SALES BY CUSTOMER TYPE TrustFord’s operations director SEPTEMBER TOTAL PRIVATE FLEET BUSINESS John Leeman said that 2014 425,861 221,146 178,771 25,944 consumer confidence was high TOP 10 BEST SELLING MODELS 2013 403,136 208,864 170,535 23,737 and that as a result the group 1 Ford Fiesta 106,930 % change 5.60% 5.90% 4.80% 9.30% was experiencing increased sales: 2 Ford Focus 67,015 Mkt share '14 51.90% 42.00% 6.10% “During the last three months 3 Vauxhall Corsa 62,693 Mkt share '13 51.80% 42.30% 5.90% 4 Volkswagen Golf 58,664 we have seen a 15% increase in 5 Vauxhall Astra 47,482 retail sales volume on the same Year-to-date '14 1,958,196 956,381 904,772 97,043 6 Nissan Qashqai 38,920 period last year.” Year-to-date '13 1,794,924 869,436 842,223 83,265 7 Volkswagen Polo 36,772 Sue Robinson, NFDA director, % change 9.10% 10.00% 7.40% 16.50% 8 Audi A3 35,596 Mkt share '14 48.80% 46.20% 5.00% agreed about the strong retail 9 Fiat 500 35,032 Mkt share '13 48.40% 46.90% 4.60% element to the registration 10 BMW 3-series 29,655 There are further signs that confidence within the business sector is improving oct p22, 23_Oct p22, 23 07/10/2014 15:57 Page 9 ANALYSIS NEW CAR REGISTRATIONS, SEPTEMBER 2014 SEPTEMBER 14 YEAR TO DATE MARQUE 2014 SHARE Ford 54,322 12.76 Vauxhall 41,175 Volkswagen 37,852 Audi BMW % MARKET SHARE CHANGE 51,084 12.67 6.34 9.67 41,310 10.25 8.89 33,104 8.21 25,535 6.00 25,829 6.41 24,891 5.84 27,308 6.77 Nissan 22,550 5.30 20,119 Mercedes-Benz 23,382 5.49 21,256 Peugeot 17,865 4.20 Toyota 17,232 Citroen Hyundai % MARKET % MARKET SHARE 2013 262,754 13.42 249,017 13.87 -0.33 210,357 10.74 200,357 11.16 4.99 14.34 168,662 8.61 154,536 8.61 9.14 -1.14 126,487 6.46 114,261 6.37 10.70 -8.85 113,520 5.80 105,313 5.87 7.79 4.99 12.08 106,890 5.46 94,541 5.27 13.06 5.27 10.00 99,096 5.06 86,624 4.83 14.40 19,160 4.75 -6.76 85,418 4.36 86,019 4.79 -0.70 4.05 16,912 4.20 1.89 76,055 3.88 72,831 4.06 4.43 14,270 3.35 12,682 3.15 12.52 66,542 3.40 63,773 3.55 4.34 14,865 3.49 14,479 3.59 2.67 65,564 3.35 61,210 3.41 7.11 Kia 13,292 3.12 12,728 3.16 4.43 62,538 3.19 58,307 3.25 7.26 Skoda 10,991 2.58 10,380 2.57 5.89 60,386 3.08 49,576 2.76 21.80 Fiat 12,147 2.85 11,667 2.89 4.11 53,781 2.75 47,587 2.65 13.02 Renault 12,993 3.05 9,045 2.24 43.65 50,732 2.59 32,320 1.80 56.97 Land Rover 10,915 2.56 9,531 2.36 14.52 45,483 2.32 43,916 2.45 3.57 Honda 9,642 2.26 10,442 2.59 -7.66 44,102 2.25 45,494 2.53 -3.06 Seat 9,594 2.25 8,498 2.11 12.90 42,611 2.18 35,468 1.98 20.14 Mini 9,996 2.35 10,382 2.58 -3.72 36,584 1.87 40,264 2.24 -9.14 Suzuki 8,070 1.89 7,037 1.75 14.68 31,431 1.61 27,187 1.51 15.61 Mazda 8,066 1.89 7,189 1.78 12.20 31,373 1.60 26,027 1.45 20.54 Volvo 7,230 1.70 5,258 1.30 37.50 30,784 1.57 24,851 1.38 23.87 Dacia 3,523 0.83 2,759 0.68 27.69 18,583 0.95 11,631 0.65 59.77 Jaguar 3,173 0.75 3,183 0.79 -0.31 14,627 0.75 13,256 0.74 10.34 Mitsubishi 3,527 0.83 1,813 0.45 94.54 11,162 0.57 7,416 0.41 50.51 Lexus 2,131 0.50 2,013 0.50 5.86 8,629 0.44 7,050 0.39 22.40 Porsche 1,022 0.24 1,248 0.31 -18.11 6,483 0.33 6,021 0.34 7.67 Alfa Romeo 1,014 0.24 1,192 0.30 -14.93 4,464 0.23 4,496 0.25 -0.71 Smart 802 0.19 913 0.23 -12.16 4,016 0.21 4,316 0.24 -6.95 Jeep 762 0.18 326 0.08 133.74 2,844 0.15 1,458 0.08 95.06 3 0.00 2,083 0.52 -99.86 2,764 0.14 9,982 0.56 -72.31 Subaru 617 0.14 522 0.13 18.20 2,140 0.11 1,757 0.10 21.80 MG 357 0.08 104 0.03 243.27 1,840 0.09 273 0.02 573.99 Chrysler 390 0.09 630 0.16 -38.10 1,673 0.09 2,237 0.12 -25.21 Abarth 331 0.08 276 0.07 19.93 1,286 0.07 1,114 0.06 15.44 Ssangyong 363 0.09 161 0.04 125.47 1,215 0.06 505 0.03 140.59 Bentley 206 0.05 147 0.04 40.14 1,160 0.06 941 0.05 23.27 Maserati 158 0.04 28 0.01 464.29 921 0.05 239 0.01 285.36 Aston Martin 144 0.03 119 0.03 21.01 695 0.04 725 0.04 -4.14 Infiniti 214 0.05 25 0.01 756.00 591 0.03 305 0.02 93.77 Lotus 27 0.01 10 0.00 170.00 180 0.01 141 0.01 27.66 Perodua 2 0.00 13 0.00 -84.62 27 0.00 193 0.01 -86.01 Mia 0 0.00 0 0.00 0.00 5 0.00 0 0.00 0.00 Proton 0 0.00 3 0.00 -100.00 1 0.00 18 0.00 -94.44 Saab 0 0.00 0 0.00 0.00 1 0.00 3 0.00 -66.67 Other British 63 0.01 76 0.02 -17.11 624 0.03 644 0.04 -3.11 Other Imports 157 0.04 92 0.02 70.65 1,115 0.06 724 0.04 54.01 5.64 1,958,196 Total www.auto-retail.com 425,861 403,136 Photocopying these pages may break copyright law 1,794,924 SHARE % 2014 Chevrolet 2013 % CHANGE 5.52 9.10 DECEMBER 2007 OCTOBER 2014 23 Source: SMMT % MARKET Oct p24_Oct p24 07/10/2014 15:57 Page 1 you compare these online We’re the insurance experts that give you more..... why not new cars? PRODUCTS SYSTEMS SUPPORT TRAINING If it’s a compliant sales process, the systems to need - then we’ve got it covered letting people buy brand new cars the way they want 0845 6838795 [email protected] www.mapfreabraxas.co.uk carwow www.carwow.co.uk/dealers Who’s Where in auto retail 2014 WHO’S WHERE IN UK AUTO RETAIL is the definitive guide to every major auto retailer in the country. TURN BIG DATA INTO ACTION. MSXI leverages leading-edge data and analytics tools and processes to help companies enhance their retail network performance. MSXI’s Big Data platform identifies a customer’s DNA – the patterns and factors that lead to sales – and uses analytics and data modelling to provide the insights needed to improve the customer experience, improve sales, customer retention and most importantly, the bottom line. Visit www.msxi.com/bigdata to find out more or call us on 01206 202000. It lists all significant new car franchised retailers by name, town and postcode including unique key contact details such as dealer principal name and dealership phone number. It also lists franchises held, multi-franchise sites and business ownership, where available. The 100 leading auto retail groups are profiled in detail with head office addresses, contact details for senior personnel, trading names and franchises held for both sales and authorised repair locations. PRICE: ARN members £289 (plus p+p) Non-members £389 (plus p+p) To order your copy of WHO’S WHERE IN UK AUTO RETAIL 2014: go online to: www.auto-retail.com or call 01572 724687
© Copyright 2024