APRIL 2010WWW.MOTORTRADER.COM
MOTORTRADER
5-A-SIDE HEROES: Your last chance to enter Castrol Professional’s national football championship for franchised dealers 40
March new car sales
Meet Citroen’s DS3
The fi nal countdown
Plate change powers bumper month
Old name for brand new model range
The low down on the 2009 market
BEHIND THE HEADLINES 06
161220
42
LAUNCH REPORT
USED CAR SALES
Roland Bouchara on a revitalised Renault in the UK
THE AWARD-WINNING VOICE OF THE CAR RETAILING SECTOR
39
24
WINNER Best Trade Publication of the Year
GM’s Nick Reilly in conversation
31
TOP2OOFRANCHISED DEALER UPDATE
SPONSORED BY
HPI Driveaway cover from Aviva is underwritten by Aviva Insurance UK Limited. Registered Office: 8 Surrey Street, Norwich NR1 3NG. Registered in England No. 99122. Authorised and regulated by the Financial Services Authority. For the purpose of the Data Protection Act 1998, the data controller in relation to any personal data you supply is Aviva Insurance UK Limited. For our joint protection calls may be recorded and/or monitored.Cover not available in N. Ireland. Age restrictions apply. Aviva may decline to quote for the annual policy in some circumstances, meaning that the 7 days’ complimentary cover cannot be given. Only one 7 day free policy is permitted per customer per vehicle registration number. Calls will be charged at local rate and may be recorded and/or monitored. HPI and the HPI logo are registered trademarks of HPI Limited. HPI is a Solera company. * Dependent on volumes.
DW_AD_0410
Only available
through HPIFree 7 day insuranceThe key to speeding up sales
hpi driveawayThe free 7 day insurance
Make the most of every sale...Call us now
0845 301 1813
HPI Driveaway will:
Increase the speed of stock turnover
Increase customer satisfaction
Help you close the deal
HPI Driveaway benefi ts both you and your customers.With HPI Driveaway your customers get 7 days’ FREE motor insurance underwritten by Aviva, and you get a covernote within an hour so you can tax the car and complete the sale.
Citroen DS3Old name but new quirky car has big ambitions
Used Car Sales ReportHow the fi nal quarter of 2009 performed
Dealer SystemsRetailers are profi ting from having good DMS systems
Finance & InsuranceHow showroom staff can compete with direct lenders
Talking HeadsUK car bosses detail plans for used car sales in 2010
Motor Trader Top 200 UpdateIn-depth analysis of the top UK dealer groups
Dealer InsightFollowing an MBO Foray has grown its Ford business
Pick of the MonthDealer news from www.motortrader.com
Dealer SurveyFranchised dealers’ views on the fi rst quarter
Hutton ReportsNick Reilly on how he’s restructuring Opel/Vauxhall
TrainingWhy dealer managers need to be trained
Last WordDiary, top websites and the 10 question interview
2024 The MT InterviewRenault’s UK boss Roland Bouchara is striving to bring the UK sales operation back into profi t
New Car Sales ReportScrappage powers March new car registrations
Ford PricingBlue oval cuts prices to tackle ultra-tough fl eet sales
Network Q RevampVauxhall invests in website, TV and new warranties
Q1 Used Car TrendsFranchised dealer footfall is up but can it last?
Sold & hired across the UK for 14 years. oNLY genuine CarStages interlockwith ALL upgrade kit at other UK dealerships. ** Guaranteed best price **
Buy or Hire GENUINE Industrial Quality CarStages!
CARSTAGES.CO.UKSeeSaw stages from £10pw 01205 760016
talktoyourcustomers.com
Highly recommended automotive staff
specialising in extended hours interactive
customer calling & relationship
building.Fulfilment of
essentials such as verbal
reminders, enquiry management
& lost sales feedback, customer
satisfaction, promotional offers
or event follow up. Plus more!Email: [email protected]
or call Keith today on 07887 562 228
Mention This AdvertFor A FREE Gift!
Sell non-franchise cars fast!
Sell 60 day cars fast!
24
DEALER ANALYSIS
Keep up to date with all the latest news at www.motortrader.com
6
16
18
51
46
8
10
12
22
42
31
55
48
61
39
DEALER INTELLIGENCE
DEALER CONFIDENTIAL
REGULARS
THIS MONTH 03
www.motortrader.com APRIL2010
48
WE MAKEIMPORTING SIMPLE.
Importing
Importing with DHL
Regulations, middlemen, paperwork and so many other details can leave you tied up in knots. Why not rely on DHL IMPORT EXPRESS WORLDWIDE to untangle your imports? One company door-to-door.
One competitive price. One invoice in one currency. That means fast delivery without excuses or hidden costs. It’s that
simple. Sign up on simplydhl.com/uk and start simplifying your imports today.
Entry is only valid after completing all required fields on the website registration form. Closing date for entries is 30th June 2010. Full terms and conditions available on simply.dhl.com/uk
Win an Apple iPad.Register to open a DHL IMPORT EXPRESS account before 30th June 2010, and we will enter you in to a prize draw to win one of 5 iPads. Just visit simplydhl.com/uk to register today!
Win an Apple iPad.Register to open a DHL IMPORT EXPRESS account before 30th June 2010, and we will enter you in to a prize draw to win one of 5 iPads. Just visit simplydhl.com/uk to register today!
COMMENT 05
www.motortrader.com
to long termY
ou don’t have to dig too deeply into the March plate-change stats to see the fragility
of the recovery in the car market.On paper the 26.6 per cent rise
in sales looks encouraging and to some extent it is (page 7). But rewind the clocks to March 2009 and you fi nd a pre-scrappage new car market that had slumped by 30.5 per cent.
Clearly gains made this March, and throughout Q1, need to be weighed against a huge shortfall last year. Even with over one in 10 new cars sold this March subsidised by the scrappage scheme, the market was still 12 per cent down on March 2008; the spring before the economic downturn began to hit its stride.
Scrappage has now run its course. The new VED rates, including the so-called “showroom tax” for new registrations, are in place and VAT has returned to its pre-recession level with the possibility of a further rise after next month’s election. On top of all this many manufacturers welcomed in the new year with price rises. These factors are hardly conducive to retail car buyers.
But not all is gloom and doom. What the new car fi gures also reveal is a market less dependent on fast churn and unprofi table daily rental deals which have distorted the market for decades as carmakers ignored the basic rules of supply and demand.
While retail will now slow down fl eet and, more importantly for dealers, local business sales are showing signs of increasing their upwards momentum. With cars being operated beyond their normal three year cycles these buyers will be considering change this year and that really is good news for dealers.
MT’s Car ComparatorWe’ve launched an online tool to make dealer websites even more engaging for car buyers.
Our Car Comparator provides prices and data of every mainstream car on sale in the UK, which means visitors to dealer websites can run their own comparisons without searching elsewhere on the internet.
The tool is available to readers at a 20 per cent discount (using the MT101 code). Further details are available from Daniel Stas on 01483 546 500.
View our weekly news digest at www.motortrader.com.
EDITORIALEditor Curtis Hutchinson - 020 8253 [email protected] Deputy editor John Kirwan - 020 8253 [email protected] editorJames Young - 020 8253 [email protected]
CONTRIBUTORSAndrew Charman, Ray Hutton, James Dallas
DISPLAY ADVERTISINGGroup sales managerAlan Toogood - 07952 [email protected] managerMike Traylen - 020 8253 [email protected] ed salesTony Welch - 020 8253 [email protected] assistantTracy Knight 020 8253 8717 Fax 020 8253 [email protected]
MARKETINGMarketing ManagerMathew Smith - 020 8253 [email protected]
PUBLISHINGPublisherHelen Lyons - 020 8253 [email protected]
SUBSCRIPTIONSAlliance Media - 020 8950 9117Email: [email protected] year UK £95One year Europe/rest of world £130
Motor Trader is published by Metropolis Business Publishing, a division of Metropolis International Group LtdRegistered Number 2916515Registered offi ce: 140 Wales Farm Road, London W3 6UG
Issue number 5301
First published: 1904Printed by Headley Brothers Ltd, The Invicta Press, Queens Road, Ashford, Kent, TN24 8HHISSN number 0027 2043© 2010 Metropolis International Group LtdYou must obtain the editor’s permission to reproduce any article
MOTOR TRADER From fast churn
Curtis HutchinsonEditor
Pendragon bounces
back into the black
3 MARCH 2010
ISSUE 39MOTOR TRADER
THE VOICE OF THE CAR RETAILING SECTOR
ONLINE WEEKLY
UK’s biggest franchised group reverses
£194m losses with £1.3m pre-tax profi t
Curtis Hutchinson
Pendragon, the UK’s biggest
dealer group, has returned
to profi t after turning pre
tax losses of £194m in 2008
into a £1.3m profi t in 2009,
albeit on signifi cantly reduced
revenues.
In its preliminary results
for the year to 31 December
2009 revenues dropped from
£4.2bn to £3.2bn, although
underlying pre-tax profi ts
for the period leapt from a
£33.6m loss into a £10.1m
profi t.
The group said its underlying
gross margins for the year
rose from 13.2 per cent to
15.4 per cent and net debt
was reduced by £41.9m from
£357.3m to £315.4m.
Pendragon chief executive
Trevor Finn said the return to
profi tability put the group in
a strong position for what he
said will be another diffi cult
year for the car retailing
sector.
“The group has successfully
dealt with the most
challenging market conditions
experienced since the nineties.
We acted swiftly to implement
signifi cant cost saving and
debt reduction actions.
During 2009 we concluded
a successful refi nancing to
3 MARCH
MOTORTRADER ONLINE WEEKLY
JCT buys Audi sites
Group 1 expands
Vertu’s good year
Manheim rebrands
Renaultsport sites
02
02
03
03
04
THISWEEKsecure the long term future of
the group,” he said.
“Consequently, we are now
in sound shape and have
returned to profi tability.
While we anticipate our
market will remain diffi cult in
2010, we are well positioned
to focus on the profi t
opportunities that will drive
our core business forward.”
Buoyed by the scrappage
scheme the group sold
106,000 new cars over the
course of the year, which it
said equated to 5.3 per cent
FINN: “We are
now in sound
shape”
of the UK new car market.
It described its used car
business as “resilient” with
107,000 units sold, equating
to 5.3 per cent of the total
market. It also confi rmed
it had moved outside its
traditional stocking of three
to four year old cars and has
moved into the older used car
market which it has targeted
as an area for growth.
The group’s new van sales
fell by 49.6 per cent in a
market down 36.2 per cent,
a consequence, it said, of
moving away from low
margin fl eet business.
The group also closed or
sold 26 showrooms in 2009,
which it said had combined
operating losses of £8.6m
and said it has identifi ed nine
further sites for closure this
year.
Pendragon 2009
results at a glance
Revenue £3.2bn (2008: £4.2
bn)
Underlying gross margin
15.4 per cent (2008: 13.2 per
cent)
Underlying profi t before tax
£10.1m (2008 loss: £33.6m)
Profi t before tax £1.3m
(2008 loss: £194.0m)
Underlying earnings per
share 1.1p (2008: (3.5)p)
Basic earnings per share
0.1p (2008: (24.4)p)
Cash generated from
operations £93.3 m (2008:
£53.6m)
Net debt reduced by £41.9m
Vauxhall revamps Network Q franchise
17 MARCH 2010
ISSUE 40
MOTOR TRADERTHE VOICE OF THE CAR RETAILING SECTOR
ONLINE WEEKLY
Vauxhall to overhaul its approved secondhand car programme
as it moves to double sales to 240,000 units a year
John KirwanNetwork Q, the approved
used car scheme for Vauxhall
dealers, is to re-launch in mid-
June.Vauxhall has invested
£500,000 in search optimisation for the Network
Q website while £450,000 is
being spent on a TV campaign
to promote the relaunch.From 1 April the scheme will
include longer 10 year/100,000
mile warranties, refl ecting the
general trend in the used car
business to cater for older cars
with high mileage. Currently
the maximum on offer is fi ve
years/60,000 miles.According to Karl Howkins,
used vehicle sales, marketing
and operations director,
Network Q in the past has
lost out on sales because it
excluded high mileage cars.
He added that the market
is currently suffering from a
shortage of nearly-new cars.
The investment in search
optimisation refl ects changes
in the way consumers research their car buying
purchase.Howkins said the website
has been designed to be
very simple to use. Search
optimisation has been used
on 100 brand terms and 100
model terms.
17 MARCH
MOTORTRADER ONLINE WEEKLY
MT’s new web toolGreat Wall’s UK boss January fi nance dipsFinance conferenceUsed van prices rally
02
03
03
04
04
THISWEEK
Research carried out by the
company found feeling secure
was the most important
aspect of buying cars for
consumers at Network Q,
followed by quality and price.
“The majority want peace of
mind, “said Howkins.Howkins said last year
Network Q sold 119,000
ANNIVERSARY: Twenty years after its launch
Network Q gets its fi rst major revamp
vehicles in the network and
the company expects this to
“probably double” with the
relaunch.Network Q has sold 2 million
used cars in the 20 years it has
been in existence.There are no changes to
Network Q branding in the
re-launch.
VauxhaVVNetwork
ISSUE 40
MOTO
Vauxhall to oas it moves to
John KirwanNetwork Q, the approved
used car scheme for Vauxhall
dealers, is to re-launch in mid-
June.Vauxhall has invested
£500,000 in searchoptimisation for the Network
Q website while £450,000 is
being spent on a TV campaign
to promote the relaunch.From 1 April the scheme will
include longer 10 year/100,000
mile warranties, reflecting the
general trend in the used car
business to cater for older cars
with high mileage. Currently
the maximum on offer is five
years/60,000 miles.According to Karl Howkins,
used vehicle sales, marketing
and operations director,
Network Q in the past has
lost out on sales because it
excluded high mileage cars.
He added that the market
is currently suffering from a
shortage of nearly-new cars.
The investment in search
optimisation reflects changes
in the way consumersresearch their car buying
purchase.Howkins said the website
has been designed to be
very simple to use. Search
optimisation has been used
on 100 brand terms and 100
model terms.
MOTORTRADER ONLINE WEEKLYLL
Research carried out by the
company found feeling secure
was the most importantaspect of buying cars for
consumers at Network Q,
followed by quality and price.
“The majority want peace of
mind, “said Howkins.Howkins said last year
Network Q sold 119,000
ANANNANNIVERNNIVERSANNIVERSRSARY:Y:RR T TwweweTT
Network Q getswork Q gets
ork Q getsrk Q gerk Q gets it its its fififi
vehicles inthe compan“probably dorelaunch.Network Q hused cars in thebeen in existencThere are no chNetwork Q brandre-launch.
unces
black
3 MARCH 2010DDEEEEEEEER
s
fit
3 MARCH
JCT buys Audi sites
Group 1 expands
Vertu’VV
s good year ’
Manheim rebrands
Renaultsport sites
02
02
03
03
04
THISWEEK
UK new car market.
cribed its used car
ess as “resilient” with
000 units sold, equating
.3 per cent of the total
rket. It also confirmed
had moved outside its
aditional stocking of three
o four year old cars and has
moved into the older used car
market which it has targeted
as an area for growth.
The group’s new van sales
fell by 49.6 per cent in a
market down 36.2 per cent,
a consequence, it said, of
moving away from low
margin fleet business.
The group also closed or
sold 26 showrooms in 2009,
which it said had combined
operating losses of £8.6m
and said it has identified nine
further sites for closure this
year.
Pendragon 2009
results Pendrd at a glance
Revenue £3.2bn (2008: £4.2
bn)Underlying gross margin
15.4 per cent (2008: 13.2 per
cent)
Underlying profit before tax
£10.1m (2008 loss: £33.6m)
Profit before tax £1.3m
(2008 loss: £194.0m)
Underlying earnings per
share 1.1p (2008: (3.5)p)
Basic earnings per share
0.1p (2008: (24.4)p)
Cash generated from
operations £93.3 m (2008:
£53.6m)
Net debt reduced by £41.9m
Tustain launches
acquisitive group
7 APRIL 2010
ISSUE 41
MOTOR TRADERTHE VOICE OF THE CAR RETAILING SECTOR
ONLINE WEEKLY
Ex-Bristol Street Motors boss John Tustain returns to trade
with new dealer group and ambitions to grow to 15 sites
John Kirwan
Ex-Bristol Street Motors chief
executive John Tustain has
launched his own dealer
group, Tustain Motors, with
the purchase of two Vauxhall
sites.
The motor trade veteran has
bought a Vauxhall dealership
in Ashington from Milburn
Motors Garages and another
in Alnwick, from Willis of
Alnwick for an undisclosed
sum.
Tustain, who is planning to
have up to 15 dealerships,
wants to expand in the
North and Midlands and is
particularly interested in
acquiring Ford branded sites.
Tustain owned 27 per cent of
Bristol Street Motors, a £500m
turnover business, before it
was sold to Vertu Motors in
2007 for £40m.
Tustain Motors directors
include managing director
Brian Baxter and fi nancial
director David Storey.
Tustain said: “With these
acquisitions Tustain Motors
marks the start of its wider
strategy to acquire and
improve motor retail sites
across the Midlands and
North. Our aim is to build
the group with further
acquisitions over the next few
years.”7 APRIL
MOTORTRADER ONLINE WEEKLY
Used 4X4 price hike
Golden Garage win
HR Owen review
Ford cuts prices
02
02
04
04
THISWEEK
Simon Bursell of Midlands-
based business advisers
Dains, along with law fi rm
Geldards, worked to conclude
the transactions on behalf of
Tustain Motors with Lloyds
Bank, which provided debt
funding.
Simon Bursell, corporate
fi nance partner, Dains, said:
“John and the team have
an outstanding track record
of building sales at motor
dealerships.
“The decision to buy
back into the car retail
sector and their plan to
acquire an additional 10-15
franchised dealerships is a
real demonstration of their
Si Bu ll f Midla d
confi dence
in the sector and
consumer spending.”
The Tustain move marks a
busy time generally for the
car trade. Earlier this month
Gilder Group secured a £4m
funding package from Lloyds
TSB Corporate Markets. The
bank agreed to provide the
Sheffi eld-based business,
number 36 in the Motor
Trader Top 200, with a £4m
working capital facility to
fund its growth plans. It will
also provide the group with its
day-to-day banking needs.
Also in April, Wayside Group
bought Peterborough Audi for
an undisclosed sum bringing
the number of Audi sites it
operates to four.
The dealership had been
owned by the Cook family and
run by Jonathan Cook for 30
years.
In March Vertu Motors
bought Peugeot dealer
Johnston of Renfrewshire in
Paisley, Scotland for £2.1m,
bringing its total number of
Peugeot outlets to seven.
The deal included a long
leasehold property valued at
£1.4m.
In the year to 31 May 2009
it made an adjusted pre tax
loss of £100,000 on turnover
of £5.5m.
Also in March Volvo
recruited Snows Motor Group
in Poole and North City in
Chigwell to its dealer network.
The latest signings bring the
network to 106 outlets with
Volvo planning to grow it to
110 by the end of the year.
The new Poole dealership has
opened under Snow’s Kings
Volvo trading name and is the
fi fth Volvo site operated by
the group.
confi dence c
BACK IN BUSINESS:
Tustain has returned
and wants to grow
his group in the North
and MidlandsBest Trade Publication of the Year
APRIL2010
From arm barriers to bollards, parking posts and so much more, we’ve built our business on supplying great quality, affordable products to the motor trade and local government for over 12 years. We can guarantee the same high standardsof service, easy online ordering and fast, free delivery across all of the products we sell. So, throw away your old catalogues and go direct. Barriersdirect! Or call our helpline 0800 0288010.
GET YOUR BARRIERS DIRECT!
.co.uk.co.ukCHECK OUT OUR
SALE ITEMS!
Free Delivery
in England & Wales terms & conditions
apply
BEHIND THE HEADLINES: March car sales06
www.motortrader.com
John Kirwan
It looked good. New car sales during the March plate-change, the most important sales month of the year, rose
26.6 per cent to 397,383 cars compared to March last year.
The problem is March 2009 was a particularly bad month and fl atters the 2010 March performance. If you look back to March 2008 and make a comparison then you can see the market was down 12 per cent.
Furthermore the scrappage scheme accounted for 12.2 per cent of the March market. Strip that out, too, and compare like-for-like sales, then March 2010 was 22.6 per cent adrift of the performance in 2008.
According to the SMMT the ending of the scrappage scheme in March will dent sales in the future.
“The loss of the incentive and continued uncertainty over the economic setting are expected to result in a marginal decline in volumes over the remainder of the year,” it said.
Hyundai turned in the best performance of the 10 volume players in March with sales up 145
per cent on the back of scrappage. It was followed by Renault, which has made a strong start to the year after a lacklustre 2009.
Renault’s private sales rose 77 per cent for the month and its fl eet sales rose 187 per cent year on year. The fi rm achieved 5.2 per cent market share for the month, up 1.8 percentage points on last year.
Nissan also turned in a strong performance with sales up 68.2 per cent and Peugeot was in fourth slot, up 22.2 per cent with 107,207, 308 and 3008 models doing particularly well.
In fourth place was Volkswagen with sales up 19.5 per cent for the month.
Toyota, which has been hit by serial recalls, saw sales rise 15.4 per cent over the month, somewhat adrift of the overall
market. The impact
of scrappage was felt in all areas of the market with a consumer surge to smaller cars, more - cheaper
- petrol variants. The retail sector benefi ted as a result. First small cars. The Mini segment rocketed 90 per cent in March and all of the top 10 cars were in the B- or C-segments. Ford’s Fiesta and Focus took the number one and
c
Sales of luxury cars continue to fall, down 10.7 per cent
Scrappage accounted for 12 per cent of new car sales in March but dealers now have to face up to life after the scheme with registrations for 2010 set to take a dip
APRIL2010
Staying the course
A great place for your business.
LEEDS Tuesdays at 11am & Fridays at 10.30am
LIVINGSTON Wednesdays at 11am
BIRMINGHAM NORTHERN Opening IRELANDAugust 2010 Coming Soon
KINROSS Thursdays at 1.30pm
NEWCASTLE Thursdaysat 10.30am
Find out how SMA can help you. Contact Michael Tomalin: 07584 211880 or email: fl [email protected]
Brand Change %
1 Hyundai 145.11
2 Renault 104.55
3 Nissan 68.18
4 Peugeot 22.26
5 Volkswagen 19.51
6 Ford 18.72
7 Audi 17.76
8 Toyota 15.42
9 Vauxhall 7.80
10 BMW 5.26
Brand Change %
1 Hyundai 182.74
2 Renault 104.46
3 Nissan 47.56
4 Volkswagen 32.53
5 Peugeot 31.54
6 Audi 19.64
7 Ford 14.20
8 BMW 12.16
9 Toyota 6.87
10 Vauxhall 3.23
Top 10 volume brands in March
Top 10 volume brands in year-to-date
TEN PLATE FOR SUCCESS: The March plate-change is biggest sales month of the year
www.motortrader.com
BEHIND THE HEADLINES: March car sales 07
Hyundai 43,947
Ford 42,465
Kia 29,997
Fiat Group 29,749
Volkswagen 29,678
Toyota 27,950
Vauxhall 24,504
Peugeot 15,775
Nissan 15,154
Renault 13,095
Honda 12,522
Suzuki 12,152
Skoda 11,659
Mazda 11,280
Citroen 9,958
Seat 6,639
Volvo 6,594
MINI 6,563
Audi 4,298
Chevrolet 3,991
BMW 3,706
Mitsubishi 2,214
Mercedes-Benz 1,830
Smart 1,701
Land Rover 1,443
Daihatsu 675
Subaru 423
Jaguar 327
Saab 312
Perodua 295
Proton 293
LTI 292
Dodge 278
Jeep 210
Chrysler 185
MG 104
Lexus 83
Porsche 32
Cabdirect Taxis 26
Ssangyong 2
Total 372,401
two slots in the best seller charts followed by Vauxhall Astra and Corsa and Volkswagen Golf.
But, while small cars prospered, sales of D-segment cars fell 2.2 per cent in March while F-segment luxury saloons fell further, 10.7 per cent.
On the fuel side, sales of petrol cars rose 32.2 per cent in March and accounted for six-in-ten cars sold in the market. Diesel sales rose by 18.8 per cent during the month and account for 41 per cent of the market.
Scrappage also boosted the retail sector with sales up 33.5 per cent for the month while fl eet sales rose 21 per cent. Sales to business users, small companies with up to 25 cars on their books, saw a rise of just 9 per cent for the period.
In the fi rst quarter retail sales were up 35.1 per cent and fl eet sales were up 28 per cent.
SMMT chief executive Paul Everitt said: “The coming months will remain challenging and headline registration numbers are expected to dip, but underlying demand continues to improve slowly.”
John Leech, partner in KPMG’s automotive group, said the fi gures revealed a “small glimmer of real consumer-led growth” and there were “grounds for cautious optimism” which, he said, extended to the fl eet segment.
RMI director Sue Robinson said cars ordered on the scrappage scheme would keep the market relatively strong in coming months.
“However there is still fragility in this market, particularly in the non retail sector where fl eet and business buyers have only recently returned.”
APRIL2010
UK New Car Sales: March 2010MARCH YEAR TO DATE
2010 market share %
2009 market share %
change%
2010 market share%
2009 market share %
change%
Abarth 287 0.07 228 0.07 25.88 388 0.06 308 0.06 25.97
Alfa Romeo 1,364 0.34 1,114 0.35 22.44 1,962 0.32 1,608 0.33 22.01
Aston Martin 230 0.06 232 0.07 -0.86 309 0.05 313 0.07 -1.28
Audi 19,136 4.82 16,250 5.18 17.76 29,985 4.90 25,063 5.22 19.64
Bentley 175 0.04 125 0.04 40.00 282 0.05 196 0.04 43.88
BMW 16,478 4.15 15,654 4.99 5.26 24,837 4.06 22,144 4.61 12.16
Cadillac 14 0.00 11 0.00 27.27 20 0.00 14 0.00 42.86
Chevrolet 2,729 0.69 2,237 0.71 21.99 4,341 0.71 3,436 0.72 26.34
Chrysler 259 0.07 399 0.13 -35.09 398 0.07 548 0.11 -27.37
Citroen 13,025 3.28 10,755 3.43 21.11 20,675 3.38 16,527 3.44 25.10
Corvette 1 0.00 10 0.00 -90.00 1 0.00 16 0.00 -93.75
Daihatsu 51 0.01 510 0.16 -90.00 100 0.02 663 0.14 -84.92
Dodge 169 0.04 205 0.07 -17.56 220 0.04 269 0.06 -18.22
Fiat 10,709 2.69 8,001 2.55 33.85 16,433 2.69 11,461 2.39 43.38
Ford 62,075 15.62 52,289 16.66 18.72 94,118 15.39 82,415 17.16 14.20
Honda 14,076 3.54 13,005 4.14 8.24 20,070 3.28 19,889 4.14 0.91
Hyundai 15,241 3.84 6,218 1.98 145.11 25,520 4.17 9,026 1.88 182.74
Infi niti 6 0.00 0 0.00 0.00 19 0.00 0 0.00 0.00
Jaguar 3,054 0.77 3,018 0.96 1.19 4,361 0.71 4,551 0.95 -4.17
Jeep 558 0.14 278 0.09 100.72 818 0.13 397 0.08 106.05
Kia 12,277 3.09 6,346 2.02 93.46 20,673 3.38 8,580 1.79 140.94
Land Rover 10,514 2.65 6,027 1.92 74.45 13,836 2.26 8,116 1.69 70.48
Lexus 1,372 0.35 1,705 0.54 -19.53 2,107 0.34 2,264 0.47 -6.93
Lotus 63 0.02 64 0.02 -1.56 107 0.02 110 0.02 -2.73
Mazda 10,384 2.61 7,734 2.46 34.26 14,833 2.43 12,320 2.56 20.40
Mercedes-Benz 13,943 3.51 12,231 3.90 14.00 20,037 3.28 16,746 3.49 19.65
MG 52 0.01 26 0.01 100.00 82 0.01 51 0.01 60.78
Mini 7,919 1.99 5,976 1.90 32.51 11,027 1.80 8,474 1.76 30.13
Mitsubishi 2,254 0.57 1,577 0.50 42.93 3,192 0.52 2,059 0.43 55.03
Nissan 14,780 3.72 8,788 2.80 68.18 22,631 3.70 15,337 3.19 47.56
Perodua 163 0.04 76 0.02 114.47 249 0.04 132 0.03 88.64
Peugeot 21,288 5.36 17,412 5.55 22.26 33,200 5.43 25,239 5.25 31.54
Porsche 930 0.23 930 0.30 0.00 1,496 0.24 1,432 0.30 4.47
Proton 153 0.04 132 0.04 15.91 270 0.04 233 0.05 15.88
Renault 20,919 5.26 10,227 3.26 104.55 30,321 4.96 14,830 3.09 104.46
Saab 1,158 0.29 2,444 0.78 -52.62 1,370 0.22 3,335 0.69 -58.92
Seat 6,386 1.61 5,069 1.61 25.98 9,582 1.57 7,483 1.56 28.05
Skoda 6,754 1.70 4,030 1.28 67.59 11,182 1.83 6,471 1.35 72.80
Smart 1,474 0.37 1,093 0.35 34.86 2,234 0.37 1,673 0.35 33.53
Ssangyong 102 0.03 86 0.03 18.60 133 0.02 115 0.02 15.65
Subaru 1,090 0.27 617 0.20 76.66 1,377 0.23 801 0.17 71.91
Suzuki 5,430 1.37 5,778 1.84 -6.02 7,269 1.19 7,102 1.48 2.35
Toyota 18,033 4.54 15,624 4.98 15.42 28,818 4.71 26,966 5.61 6.87
Vauxhall 43,119 10.85 40,000 12.74 7.80 67,072 10.97 64,972 13.53 3.23
Volkswagen 29,209 7.35 24,440 7.79 19.51 51,308 8.39 38,715 8.06 32.53
Volvo 7,683 1.93 4,624 1.47 66.15 11,707 1.91 7,379 1.54 58.65
Other British 127 0.03 122 0.04 4.10 288 0.05 224 0.05 28.57
Other Imports 167 0.04 181 0.06 -7.73 287 0.05 315 0.07 -8.89
Total 397,383 313,912 26.59 611,548 480,358 27.31 Sour
ce: A
ll da
te s
uppl
ied
by t
he S
MM
T
sma-group.co.uk
A Selection of over 100 quality contract hire vehicles. Can’t Make the Sale? LiveBid - See web for details. sma-group.co.uk
NOW AT SMA LEEDSSMA proudly introduces a further new vendor...
Sales Start: Tuesday 13th April 11.30amCross Green Business Park, Leeds
M1 North or South exit at Junction 45 take the sign for Leeds and SMA is the 1st building on the right hand side.
EVERY Tuesday at 11.30am
Car scrappage sales 2009-10
BEHIND THE HEADLINES: Ford prices08
www.motortrader.comAPRIL2010
Ford has changed its pricing strategy to try and grab more company car sales and fi ght off accusations it’s no longer a value brand for buyers
John Kirwan
This perception that we have someway moved away from value is wrong. We need to make
sure we communicate this. It is absolutely essential to get that message across.”
Ford Britain managing director Nigel Sharp was speaking as the UK sales arm announced price cuts on its large cars and fended off criticism that the blue oval had pushed too hard in 2009 in raising its prices four times and by an average of 14 per cent.
Glass’s Guide said Ford “arguably” had gone too far with its price increases. Sharp said Ford raised prices to compensate for the weak pound.
“We pressed the pricing button. In order to make the business sustainable we put the prices up. In the last one in December virtually no one followed. At the end of the day we have to make sure we are pricing competitively and value is something that is very important,” said Sharp.
Ford’s renewed assault on the recovering fl eet market marks the beginning of what is widely expected to be something of a
bloodbath in 2010 with the end of scrappage and carmaker excess capacity chasing fewer buyers.
The D-segment in which Mondeo operates fell 16.7 per cent in 2009, hit by the downturn and a growing trend for downsizing. This was bad enough but the Mondeo itself, a well received car when revamped in mid-2007, saw sales decline 22 per cent. 2010 is not going to be any easier, hence Ford’s switch to a new pricing strategy for fl eet which accounts for the majority of D-segment volumes.
The new recommended list price of a Ford Mondeo Zetec will be £18,445, an S-Max Zetec will be £20,645 and a Galaxy Zetec £22,945. This compares with list pries of £20,836, £22,677 and £26,355 for outgoing models.
Ford is now targeting company car drivers with a round of price cuts on the new S-Max, Galaxy and new engined Mondeo. Combined with the lower CO2 ratings, the lower recommended prices will lower P11D tax ratings for company car drivers.
Although list prices have been lowered, there will be less movement on transaction prices as dealer discounts have been
cut. Ford, historically had high UK prices and big discount levels.
Ford said it had talked with fl eets, contract hire companies, dealers and Glass’s Guide and Cap to see if the new pricing strategy would work. It claimed the new scheme offers better residuals and lower emissions, service, maintenance and repair costs and benefi t-in-kind tax.
The so called ‘Blue Tag’ scheme is being launched for bigger cars fi rst as they are the most popular with fl eets. Ford said it will follow suit with the rest of the range.
Even though Ford has cut prices, fl eets will still continue to demand their traditional volume discounts.
“Let’s be true. There are always going to be some fl eets that, frankly, want the large rebate and we are gong to have to manage those. We will give them a compelling reason and explain the benefi ts to them and every single driver,” said Ford Britain fl eet director Kevin Griffi n.
What price value?
I f you would like to increase your capacity for carrying out smart-repair work, valeting, or
servicing but have put it off due to cost, a firm in Warwickshire has just the solution. Especially if you’re looking to minimise your capital outlay.
The firm, Smart-Space will create all the space you need with none of the usual delays you get with building because with their range of ‘instant’ buildings, they do not lay a single brick! As long as you have a level hard standing surface, there is no ground preparation required either.
So whether you have a short-term need for just a few weeks or months, or you are looking for a semi-permanent or perma-nent construction, they have a range of buildings which meet British Standards for wind and snow loads, immediately avail-able for hire, or you can specify your own brand new building, which they will make for from just 250sq ft to 25000sq ft.
Free Information And Quick Quote. Go to www.smart-space.co.uk/motors to see their range of ‘instant’ buildings, or call 01827 330000 for a courteous prompt reply, and to get a no-obligation ‘quick’ quote, or to arrange to view their display buildings without obligation .
“To People Who Want More Valeting, Workshop, Showroom Or Smart-Repair Space…...But Think They Can’t Afford It”
“The ‘Instant’ Building System Which Costs A Fraction Of Building And Extending - In A Fraction Of The Time”
e 22 be
h fleet ty of
ec
anyce
tw
fiw
fl
r buyers
ysfl eets that,
y, want the large rebate and we are gong to have to manage those. We will give them a compelling reason and explain the benefi ts to them and every single driver,” said Ford Britain fl eet director Kevin Griffi n.
ng, Workshop ShThey C
CUT BACK: Ford’s prices reduced after rises
“
Whatever size your business is, we’ve got the
vehicles you need.
Whether you’re an independent retailer or a national chain, looking for 1 or 100 vehicles, we can provide the service and stock you need. You’ll have a named account manager who’ll work tirelessly to understand your business and find the right stock. Not to mention easy access to our entire stock list online 24-7 so you can search when it suits you. All things considered, why not try us out for size? Welcome to the easy way.
Call 01743 281 818 or visit www.grs.co.uk
Network Q
BEHIND THE HEADLINES: Network Q10
www.motortrader.comAPRIL2010
With sales in decline, Network Q is being revamped with a new website, longer warranties and TV advertising support
John Kirwan
Ford clones Network Q.” The headline said it all. Back in 1994 Motor Trader had learnt that the
Blue Oval was going to start up a new used car scheme following the successful launch of Vauxhall’s Network Q four years earlier.
Vauxhall was fi rst to market with the idea of an approved used car scheme into which it could funnel cars coming off fl eets and daily rental operators. Customers got peace of mind motoring with a carmaker-backed warranty and dealers benefi ted with increased sales. Winners all round and every carmaker duly took note and followed suit with their own schemes.
Fast-forward two decades and the market is transformed with the web playing a major part in the buying experience. The impression you get from Karl Howkins, used vehicle sales, marketing and operations director for Network Q since the back end of 2009, is that in such a hyper competitive used and new car market, Network Q needs to be doing more to help Vauxhall dealers in tough circumstances.
With its future ownership in
doubt, Vauxhall’s new car sales fell 20.4 per cent in 2009 and its market share shrank to 11.9 per cent compared to 14 per cent in 2008. Network Q sales also fell to 105,000, the worst performance for eight years.
The strategy Howkins has adopted for Network Q is threefold: get a better website, go on TV and provide longer warranties. So, Vauxhall has invested £500,000 in search optimisation for the Network Q website, £450,000 is being spent on a TV campaign to promote the re-launch and from 1 April the scheme will include longer 10 year/100,000 mile warranties, refl ecting the general trend in the used car business to cater for older cars with higher mileage. Currently the maximum on offer by the network is fi ve years/60,000 miles.
The new website goes live in mid-June and has been designed to be simple to use.
The investment in search optimisation refl ects changes in the way consumers research their car buying purchase. Search
optimisation, for example, has been used on 100 brand terms and 100 model terms so when consumers go looking for a Vauxhall, Network Q is high up the page.
“With 93 per cent of consumers doing their research on the web we recognise it as pivotal. We are spending £500,000 on search for 2010, just search. That’s how important it is for us,” said Howkins.
“You can have a great website but if nobody is directed to it, it will not add any value to us. We now want to go to a wider audience.”
The new website will enable the consumer to do a comparison with up to seven models and save the search to return to at some later stage. Vauxhall is also planning a mobile site, which, according to Howkins, is in the next phase of development
The new longer warranties will, according to Howkins, attract more people to Vauxhall dealerships. Network Q in the past, he said, had lost out on sales because it
excluded high mileage cars. “We missed a lot of opportunity
to support used Vauxhalls, things like ex-leasing cars that have done 60,000 miles in two to three years.
“We have got this warranty now up to 100,000 miles. We have reduced the warranty cost to all of our dealers who have the Network Q brand and the knock-on effect is a reduced cost to the consumer.”
The TV advertising is a departure for Network Q as it has been doing radio for the past three years.
“Maybe that approach has been lost a little bit. So we are going to run a specifi c TV campaign, a 30 second ad on Channel 4 and ITV just on Network Q. That will focus on Network Q as the best place for used Vauxhalls.”
Research carried out by the company found feeling secure was the most important aspect of buying cars for consumers at Network Q, followed by quality and price. The peace of mind aspect and the brand’s 20-year heritage will be refl ected in the TV advertising. Although Vauxhall supplies Network Q with all the quality cars coming off fl eets and rental, in some cases demand exceeds supply.
“There are a couple of cars we are starting to run out of. That is a big challenge for us. It is great to get the entire network turned on to Network Q but we have to keep the car supply available.
“Our dealers are our customers and we have to show we are adding value to them when we launch anything. And that is all about lead generation and having the cars available,” he said.
Searching times for
Cost of TV campaign
£450k
“
TAKING STOCK: Network will have older cars
Year Network Q sales
2000 111,349
2001 100,084
2002 122,709
2003 130,730
2004 140,405
2005 136,005
2006 127,109
2007 116,633
2008 114,438
2009 105,901
We are spending £500,000 on search optimisation this year
Sour
ce: N
etw
ork
Q
When you really need to stop.Full stop.
ww
w.c
ont
i-o
nlin
e.co
.uk
Auto Express Best BuyContiPremiumContact 2 205/55 R16H
BEHIND THE HEADLINES: Q1 used trends12
www.motortrader.comAPRIL2010
Curtis Hutchinson
While the growth in new car sales in Q1 was welcome it was mostly
fuelled by punters making the most of scrappage. Now with the government scheme having run its course the jury is out on how the market will fair without a subsidy.
A more accurate barometer of the wellbeing of the franchised car retailing sector could be the turnover rate of used stock.
With total used sales, across retail and private, down by 5.7 per cent last year will the sector see increased activity over the coming months as buyers possibly switch from new to used?
Dealers, from market leader Pendragon downwards, are certainly looking beyond three year old cars to meet the demand for good quality used cars.
“With the ending of scrappage, our franchise dealer clients are renewing their focus on used cars sales,” said Malcolm Thixton, an audit partner at BDO.
Dealers got off to a miserable start to the year with snow hitting many parts of the country, burying stock and keeping customers at home. But, according to the latest showroom activity research from
Manheim Retail Services, interest in used cars and sales are on the up.
“Following the slow start in January, caused by the adverse weather, used car sales increased through the remainder of Q1 with a signifi cant rise in February. Used car sales actually rose from an average of 10.1 sales per dealer in January to 15.5 in March, the highest sales fi gure since March 2009,” said John Simpson, Manheim Retail Services’ managing director.
Each month the company uses its sales lead management database to track used buying trends in franchised sites across the country.
The research shows showroom enquiries during Q1 rose from
18.7 to 27.9 per site while test drives increased from 15.2 to 23.1 per site. The conversion rate of test drives to sales was also up in Q1 from 31.9 per cent to 36.3 per cent. Meanwhile the average number of online enquiries in March remained fairly static at 14.9 compared with 15 in February but still up on January’s 12.8.
While this is all welcome news for dealers Simpson urged caution with the economy still fragile and a general election in May.
“Dealers can’t sit back on their laurels. We’re entering a period of retail stagnation. The imminent election, continuing uncertainty over the speed of the economic recovery and the forthcoming
Traffi c news
Used sales per dealer in January
Used sales per dealer in March
Fall in used sales during May 2005 general election
10.1
15.5
10%
WIN A FANTASTIC TRIP TO THEWORLD CUP FINALS
Visit www.dealtrak123.co.ukfor further details
summer holiday period may cause interest among potential retail buyers to wane over the coming months,” he said.
“We’re encouraged by these fi gures but we don’t want to get too excited as there is the danger of a double dip. History tells us there is consolidation either side of an election. The key is to continue to stimulate these positive trends.”
Glass’s Guide also pointed out that late spring, with its infl ux of part-exchanges from the March plate-change, usually sees a slowdown in used car sales and this will be compounded by the election.
“In the weeks before and after the May 2005 general election used car sales fell by around 10 per cent, and we anticipate a similar lull in 2010,” said Adrian Rushmore, managing editor at Glass’s.
Over the past fi ve years prices have dropped by 3.5 per cent making the imminent infl ux of used stock particularly unwelcome.
“The market will have to absorb a signifi cant number of part-exchanges and ex-fl eet cars in the second quarter, but there will be less dealer appetite to buy them. The relative stability experienced by the market so far in 2010 will soon end,” he said.
Q1 saw an increase in used sales at franchised dealers but the election and seasonal trends could produce a slowdown in Q2
BEHIND THE HEADLINES: OFT used car report14
www.motortrader.comAPRIL2010
The Offi ce of Fair Trading has probed the used car market and found it wanting on many fronts
John Kirwan
Last year Brent and Harrow Trading Standards Services successfully prosecuted two rogue car dealers
who were jailed for 27 months each after the UK’s biggest car clocking case. It involved 320 clocked cars worth £1.5m, netting the perpetrators £250,000 profi t.
Peter Stratton, the Trading Standards Institute’s lead offi cer for the motor trade, speaking at the launch of a new Offi ce of Fair Trading’s (OFT’s) report into the used car market last month, said clocking is organised and lucrative. The OFT estimates it is worth £560m a year.
“The people who are clocking cars are not doing it in a casual way. Each car they clock is worth a substantial amount of money and they will go to great lengths
to remain anonymous to complete the whole deception of selling a clocked car, falsifying the service history and at times falsifying records held by DVLA.”
The OFT report, The Secondhand Car Market, found one-in-fi ve of the 3.6 million people buying a used car each year experienced a problem.
There were 650,000 complaints about used vehicles bought from dealers to complaints line Consumer Direct and nearly 30 per cent said they did not have the problem rectifi ed.
The majority of problems with a used car come to light in the fi rst three months and so fall within the Sale of Goods Act, which says the supplying dealer should solve any issues with a repair, refund or replacement if the vehicle was defective at the point of sale.
The report found one in 11 dealers relied on illegal disclaimers such as “sold as seen” about the cars history and condition.
The OFT acknowledged that the level of service offered by dealers may vary depending on their size and whether they are franchised or independent.
“However, at the very least they will expect a dealer to provide the
basic level of service required by law. This is often not the case in practice,” it said.
There was some good news for franchised dealers. The report found, for example, the sector performed better than their independent counterparts.
“Consumers are signifi cantly less likely to get a problem satisfactorily resolved by an independent dealer compared to a franchise dealer. Independent dealers are also less likely to resolve a problem completely and more likely not to resolve a problem at all.”
The OFT said many dealers pose as private buyers to evade their legal obligations to consumers, often to sell unsafe or clocked cars.
Tackling unfair practices in the second-hand market is now an “enforcement priority,” it added.
What does that mean for UK car dealers? The OFT and Trading Standards already work closely together and share many enforcement powers, with the OFT taking on high profi le cases to maximise publicity and impact.
But it has now issued more detailed guidance to Trading Standards Services on how to proceed with the Consumer Protection from Unfair Trading
Regulations (CPR), which only came into force in 2008. Basically, under this legislation, if a used car trader misleads, behaves aggressively or otherwise acts unfairly towards consumers, then the trader is likely to be in breach of the CPRs.
“The OFT looked closely at used cars and put together really useful guidance for us,” said the TSI’s Stratton.
“We would much rather to be in a position to advise business of the proper road to take, for us to then identify those dealers who are not going to take that advice and then, if appropriate, to take enforcement action against that small minority.”
How successful have Trading Standards been in prosecuting dealers.
A total of 69 Trading Standards units responded to the OFT survey, saying they launched 4,000 investigations into used car dealers in 2008. The most common result was informal resolution, that is offering advice to the dealer.
The OFT looked at used car dealers prosecuted under CPRs and found that since its introduction in 2008 there had been 10 successful prosecutions, 24 ongoing proceedings and eight formal cautions.
With Trading Standards armed with guidance it is likely these fi gures will grow.
shameThe
game
QUICKREAD Britain’s biggest clocking
scam involved 320 cars
Some dealers still rely on illegal disclaimers
The OFT is arming Trading Standards with more detailed advice
The majority of problems are encountered in the fi rst three months
Type of unfair practice
Posing as private seller
16%
Other false or misleading statements
20%
Unroadworthy vehicles
3%
False mileage37%
Fail to provide material information:
11%
Other13%
Part of
STAY AHEAD
You want your website to shift gear and put you in front. But to do that, it needs to rank highly with Google and other search engines. And be easy to use.
We’ve been building bespoke websites exclusively for the motor industry since 1999. A number of our sites for dealerships have won awards. And being automotive professionals ourselves, we know what your site needs to help you sell more cars.
Find out more by calling 0845 2508820 or visiting www.ukwebsites.netEmail: [email protected]
LAUNCH REPORT: Citroen DS316
www.motortrader.comAPRIL2010
Instant
The all-new DS3 range has revived an iconic name from Citroen’s past for a car aimed very much at the future
Curtis Hutchinson
C itroen’s gone quirky again. The DS3 might be using a name from the carmaker’s
illustrious past but there’s nothing retro about the all-new model which the brand hopes will provide it with an alternative to the Mini, Alfa MiTo and Fiat 500.
The car is already on sale through Citroen’s 191-strong UK dealer network and is the fi rst in a series of aspirational cars which will see the debut of the DS4 in 2011, based on the High Rider concept shown at Geneva in March, and DS5 in 2012.
Despite the backing of a high profi le TV campaign – featuring John Lennon arguing the anti-retro cause in a bizarrely anti-authentic rendering of his voice – the brand is tight lipped about sales expectations for the range, although it did concede that UK orders are second only to France.
Before the car entered
showrooms in mid February dealers had already sold the fi rst units as part of Citroen’s 100 Club online and direct marketing campaign. This offered 100 buyers the opportunity to customise their individually numbered cars and even supply personal doodles for roof designs. A nice touch for a brand which is reinventing itself.
The car has road presence. A three-door which is closer in size to the Clubman than the regular Mini, its design tour de force is
a B-pillar modelled on a shark’s fi n above which the roof appears to fl oat. The vertical line of LEDs in the front bumper is a further cheeky design feature which adds to its distinctive good looks.
The interior is every bit as fresh with an attractively designed and functional dashboard. For a small car there’s also ample space in the
front and adequate room in the back for short hops.
Prices start at £11,700 undercutting both the entry level Mini and MiTo. Citroen has kept the specifi cation levels nice and simple with just four trims – DSign, DStyle, DStyle 99g and DSport – but customers are expected to personalise their cars with a formidable list of optional extras taking in different coloured door mirrors and gear knobs and 38 body and roof combinations.
Power is delivered through a choice of fi ve engines: three petrol units, which were developed with BMW, and two in-house HDi diesel powerplants (see fact fi le).
A popular choice is likely to be the DStyle 99g which, as the name suggests, emits 99g/km and therefore qualifi es for free road tax. The model is powered by a 1.6 90bhp diesel engine and retails for £13,700.
Fixed price servicing will be offered for £199 covering three years/35,000 miles. A more comprehensive Freedrive package is also available for buyers desiring to tailor their servicing, repair and replacement requirements.
Citroen is keen for the DS3 to stand out in showrooms and has instructed dealers to provide a dedicated area, which will be used for successive DS models.
Prior to launch the brand sought to win over the hearts and minds of dealer staff by letting them test drive the car against its main competition at the Rockingham.
“It was important to show them they had nothing to fear from the Mini,” said Marc Raven, Citroen’s communications director.
While the Mini will remain a tough car to compete against in terms of overall volumes, the DS3 is ideally placed to chip away at its customer base.
karma
Fact File Citroen DS3 Prices: £11,700-£15,900
Trim levels: DSign, DStyle, DStyle 99g, DSport
Engines: Petrol 1.4 VTi 95bhp, 1.6 VTi 120bhp, 1.6 THP 150bhp. Diesel 1.6HDi 90bhp, 1.6HDi 110bhp
Rivals: Mini, Mini Clubman, Alfa Romeo MiTo, Fiat 500
On sale: now
We tested the current range topping DSport powered by the potent 1.6-litre 150bhp which proved to be hugely impressive around town, across quiet country roads and at speed on the motorway.
This model comes with a short throw six-speed gearbox which adds merit to the car’s sporty aspirations. Power delivery is quick and the car remains reassuringly sure footed into and out of bends when pressing on. Optimal gear changes are also helpfully fl agged up by a dashboard display.
The driving position is extremely comfortable and not dissimilar to the model it hopes to bother the most: the Mini.
While this model is engaging to drive its costly price tag (£15,900) will limit its appeal, while hothatch enthusiasts will probably wait for the 200bhp DS3 Racing which goes on sale at the end of the year.
Behind the wheel
CO2 emissions of the VED-free DS3 DStyle 99g model
99g/kmopes will lternative
g
al
cthinerob
thtoM
AD FAB? John Lennon in the
DS3 advertising campaign
Car Care Plan Limited is authorised and regulated by the Financial Services Authority.
Everyone’s looking to boost their company’s performance. And choosing the right
warranty partner can do just that. At Car Care Plan our warranties are designed
to enhance customer retention levels with no ‘new for old’ charges on replacement
components. We can also help you create new revenue streams with innovative
products and services. As the UK’s market leader we’re already helping some of
the biggest names maximise profits. See what we can do for your business.
Call 0844 573 7591 or visit www.carcareplan.co.uk
BECAUSE OUR WARRANTIES CAN KEEP YOUR BUSINESS IN EXCELLENT WORKING ORDER TOO.
TALKING HEADS: Used car initiatives18
www.motortrader.comAPRIL2010
Motor Trader asks senior car manufacturer executives what measures they are currently taking to boost their networks’ used car business over the coming months
Forecasting what the used car market is going to do is a risky business if recent history is anything
to go by. In 2008, for example, the values of vehicles plummeted and dealers had to dispose of cars at a loss, causing a sea of red to envelop dealer balance sheets across the board.
But, by the beginning of 2009, a remarkable recovery was underway and values began to rise, month after month, so by the close of the year, Glass’s Guide was able to report they had surged 30 per cent over the 12 month period. It was, said Glass’s, a market “without parallel”.
That said, dealers were faced with a lot of diffi culties. There were fewer cars sold in 2009 due to an acute shortage of stock. There was less daily rental business as carmakers stayed away from low-profi t, fast churn business and dealers had fewer demonstrators in stock.
Carmakers and dealers have adopted to a changing market, actively targeting customers through their CRM programmes, focusing more attention on customers through their used car offerings,
stocking a wider range of older vehicles, offering longer warranties and providing attractive fi nance options.
The result in 2009 was good for margins on used cars. But what re UK carmakers doing to ensure their dealers see a signifi cant return from their used operations in 2010? Motor Trader posed the same question to a number of UK brand heads. “What will you do to
stimulate used car sales across your network in the next quarter?”
Jonathan Goodman, managing director, Peugeot Motor Company, said the state of the used sector is in total contrast to what it was a year ago. “Twelve months ago we had too much used stock, which we were
pushing out to dealers, now we have less than a month’s stock, we are in a very healthy situation.”
According to Goodman the used market is far more complex for dealers. “We’ve had two very diffi cult months, less traffi c with stock not moving as quickly in January as people expected. So we are seeing more marketing going into used cars, but we won’t throw any big used volumes at dealers to exacerbate any issues they’ve got.”
Peugeot’s French management has had much discussion about used cars but have publicly admitted they do not need to do much about the UK market, where Peugeot’s Lion used car programme is already well established. In fact other markets are looking at Peugeot’s UK programme.
“Used cars have to function well if the new cars are to function well, but I’m not ringing any alarm bells at present,” Goodman added.
Andrew Humberstone, managing director of Alfa Romeo UK, said demand is high for his cars with residual values increasing, especially on the MiTo launched last year.
“Used car opportunities have become even more appealing as dealer ex-
Talking headsdemonstrator MiTos start to hit the market with residual values stronger than BMW’s Mini.
“MiTo’s residual value forecasts have been strong since launch, with recent sales actually outperforming even those strong forecasts. It is interesting to note the massive improvements in residual value performance Alfa Romeo has benefi ted from across most of its range in the last 12 months or so. Of particular importance has been the strong performance of 147, which has seen an improvement of around 25 per cent in its resale value.”
Alfa Romeo already runs an approved used car programme for its delaers using low mileagae ex-manufacturer stock in forecourt-ready condition.
From April the brand plans to start offering Alfa
Romeo wholesale stock through the alfaromeo.co.uk website, direct to customers to purchase
from their chosen dealer.The approved programme
also offers a strong warranty and benefi ts package and to ensure the measure gets to customers a new
suite of forecourt point-of-sale material has recently been launched for dealers to make use of.
Within the website is a stock locator tool which allows customers and prospects to view dealer-owned used car stock, with specifi cation, technical and pricing details all included along with quality imagery.
r
f d
stim
JmPCostais wh“Twwe t
m
staprowsppralo
d two very
rses
BRADLEY: “Focused”
What will you do to stimulate used car sales across your network in Q2?
GOODMAN: “Healthy”
HUMBERSTONE:
“Greater trust”
Used car event weekends, benefi t both new and used
car sales
We won’t be throwing any big used volumes at our dealers to exacerbate
any issues they’ve already got
19
www.motortrader.com APRIL2010
confi dence in the market just as with its new cars. “We are still a
bit of an unknown quantity with customers,” he said.
Bruce Greenwood, used car programme manager at Volvo UK, is
another carmaker reporting strong
demand for stock from the start of the year. “Judging by the activity on the offi cial Volvo dealer used car locator, interest in our used cars was at an all time high during January and February,” he said.
Despite this demand Greenwood said the Volvo dealer network had been able to maintain a comprehensive range of used cars, with a higher percentage of two, three and four-year old Volvos than consumers might think, all offered through the brand’s Selected Used Car
programme. Greenwood said Volvo is also ramping up its
used car efforts in coming months, bringing in new support facilities for its dealers to help
them source a wider range of used vehicles.
“Additionally, during Q2, Volvo will be launching an
online marketing campaign to ensure customers are aware that
the Offi cial Selected Used Car Locator is the best place
to look for any used Volvo,” he added.
Geoff Bland, head of company
vehicle operations, Honda UK, said
Honda’s efforts to support used cars sales have
included promoting and supporting a near four-fold increase in used car event weekends, which benefi t both new and used car sales.“They have been proven to sell roughly 50 per cent used cars and 50 per cent new cars mainly because our high residual values mean
customers often choose to stretch the ‘cost of change’ to a new car.”
Honda is also trying to improve its use of the web with the launch of a new dealer used car on-line tool. This will help dealers obtain cars from other franchise outlets,
including non-Honda dealers, and from leasing companies.
Due for launch next month, the system also promises to become an outlet for dealer to dealer sales, with minimal administration
required and door-to-door deliveries.
“We continue to stress to our dealers that Honda’s much lower supply of ex-manufacturer cars – we’ve more than halved it from 12,000 a year to under 5,000 a year – is helping used desirability and is increasing used values down the chain,” said Bland
“Hence, we are actively looking for ways to support and promote the selling of slightly older and higher mileage used Hondas. This can only be good for our used values, and will therefore help our corporate sales effort.”
Richard Balshaw, sales director, Toyota (GB), said used sales are a key focus.
“In conjunction with our Toyota centres, we have now established a network council for used cars, the objectives of which are to explore revenue maximisation and cost reduction opportunities,” he said.
Balshaw added that a new range of Toyota approved used car point-of-sale material would be made available to the Toyota centre network during May.
Lance Bradley, managing director of Mitsubishi Motors, said there is no need to stimulate used car sales. “There is massive demand for used cars and not enough used cars. We can’t do anything about that because we make new, not used, cars.”
He added: “I could register a load of cars but that just generates pre-reg cars, not true used cars. The answer, which we have discussed with our dealers, is to generate more used cars by selling more new ones.”
Andrew Sellars, Kia head of fl eet and remarketing, said that while the brand had been a big winner in the scrappage programme, this had not resulted in any less focus on used sales.
For three quarters now Kia has been running an approved used car programme for its dealers with such customer attractions as 0 per cent fi nance over four years on nearly-new Cee’ds.
“There is no dealer subsidy there so dealers don’t have to worry about eroding their margins in order to make a profi table sale. The Cee’d seven year warranty is topped back up on a used vehicle and comes with two years European assistance, too.
“The fi nance and low deposit give customers a way into buying a nearly-new Kia while the warranty, assistance and the 60-day exchange programme gives customers confi dence in Kia’s product. At the same time dealers can remain profi table.”
Kia allows its dealers to have an element of Cee’d stock on sale or return. “They get all the incentives and no risk, so as a result they are getting behind the programme.
Sellars does not believe the used market needs stimulating but said Kia needs to constantly build
inclusupfoldevebeus“Tp5cnb
me
vo UK, is
y
inclHoanco
Dnethatotw
requir
BLAND: “Proven”
BALSHAW: “Revenues”
SELLARS: “Margins”
Sponsored by
GREENWOOD:
“Strong”
ny help and support offered by manufacturers will
be welcomed by the retail network, but each retailer must seize the initiative themselves and ensure their stock is highly visible, especially on the web and that their service and speed is fast, effi cient and courteous.
With continuing concerns over credit availability, retailers must also ensure that the availability of fi nance at the point of sale is obvious to all, on-line and in the showroom.
There can be little question that the availability of fi nance has been a concern for many buyers. Media coverage for loans has suggested increasing interest rates and lower acceptance levels; whilst in reality most motor retailers have had good access to fi nance. Retailers must ensure that consumers browsing online know that fi nance is available and competitively priced; visit www.carloanadviser.co.uk to see how Carlyle is working to make dealer fi nance easier for customers to understand and buy from our dealers.
Success in selling more used cars will be a key part of the equation in the months ahead. Prices appear to have stabilised and indeed may harden because of the recent fall in new car sales.
The market will remain competitive and consumers will be tentative, but with around 6.5 million used cars being sold this year, opportunities are there for those who make their stock easy to fi nd and easy to buy.
Seizing the initiative
Mark Standish CEO, Carlyle Finance
SPONSOR’SCOMMENT
A
The fi nance and low deposit give customers
a way into buying a nearly-new Kia
We have now established a
network council for used cars
We are actively looking for ways to
support and promote the selling of slightly older used Hondas
PICK OF THE MONTH20
www.motortrader.comAPRIL2010
Former Bristol Street Motorsboss launches new networkEX-BRISTOL Street Motors chief executive John Tustain has launched his own dealer group, Tustain Motors, with the purchase of two Vauxhall sites.
The motor trade veteran has bought a Vauxhall dealership in Ashington from Milburn Motors Garages and another in Alnwick, from Willis of Alnwick for an undisclosed sum.
Tustain, who is planning to have up to 15 dealerships, wants to expand in the North and Midlands and is particularly interested in acquiring Ford branded sites.
Tustain owned 27 per cent of Bristol Street Motors, a £500m turnover business, before it was sold to Vertu Motors in 2007 for £40m.
Tustain Motors directors include managing director Brian Baxter and fi nancial director David Storey.
Motor trade sees fl urry ofacquisitions and openingsTHE past month has been busy for the motor trade with a raft of acquisitions and dealer openings.
In April Gilder Group secured a £4m funding package from Lloyds TSB Corporate Markets. The bank agreed to provide the Sheffi eld-based business, number 36 in the Motor Trader Top 200, with a £4m working capital facility to fund its growth plans.
Also in April, Wayside Group bought Peterborough Audi for an undisclosed sum bringing the number of Audi sites it operates to four.
In March Vertu Motors bought Peugeot dealer Johnston of Renfrewshire in Paisley, Scotland for £2.1m, bringing its total number of Peugeot outlets to seven. Also in March Volvo recruited Snows Motor Group in Poole and North City in Chigwell to its dealer network.
Pick of the
Any opportunity to add to the flexibility and accountability of the after-sales headcount, especially of those with technical skills such as VOSA qualifications must be welcome to virtually everyone in charge of an after sales operation, regardless of size. Taking a best practice from the energy sector, that is exactly what growing numbers of automotive businesses are realising.
An absence of a suitably
qualified VOSA technician at
the right time can mean both
lost income and reputational
damage; but an imaginative, cost
effective solution that delivers an
impressive ROI is now proving
itself to be a very viable option.
Franchised retailers of all
marques, independent
workshops and national fast fit
operations are benefitting from
access to qualified technicians
who work only ‘as and when’
required. This simple, yet highly
effective formula is provided
by RIG Automotive - and it
really works, as businesses from
Inverness to Truro are realising.
Business peaks and troughs,
holidays, sickness and training
are some of the reasons that
the after-sales area can need
qualified and competent support
for short periods. Alternatively,
demand for full time MOT
expertise may be limited; or
franchise trained technicians may
‘On Demand’ VOSA Staff - Now that Really is a Good Idea
WORKSHOP ‘BEST PRACTICE’ ALERT
be better utilised in specialised
higher yielding areas of work. In
all events bringing in an MOT
expert to focus upon this generic
activity makes sense.
Rig Automotive combine in-
depth motor knowledge with
experience in providing qualified
engineering expertise on a
contract basis to other industries
including the energy and utility
markets It is a ‘best practice’
automotive managers are now
benefitting from.
As one happy client observed; “it
works brilliantly, I get someone
only when I need them; for
example only on the 2 days per
week when I need to undertake
MOTs. This flexibility means that
potentially I can earn 3 times the
cost of the contractor by taking
on MOT work and I don’t need
to worry about justifying a full
time employee, where the cost/
benefit of MOT work would be
marginal. And if there’s no work
I don’t book them - perfect!”
Rig Automotive Recruit,
494 Midsummer Boulevard,
Milton Keynes, Buckinghamshire,
MK9 2EA
Tel 0845 3028260 [email protected]
www.rigauto.co.uk
GAVIN WHITENational Sales Manager
Advertisement feature
Catch up on a selection of industry news stories published on www.motortrader.com
MONTH
MOTOR TRADER.com
Cap warns of used4x4 price infl ationUSED car guide Cap Black Book has cautioned dealers to be wary of overvalued off road vehicles in the used car market. It said the sector was “overheated” after values had “consistently” risen ahead of the rest of the market.
“Remarkably a three year old example of the typical large off-roader now costs as much as a two year old model at this point a year ago.It said the weak new car market,
lack of short cycle business an ending of the scrappage scheme could lead to a “Signifi cant shortage of late stock” which would push up prices.
Kinghams wins garage accoladeKINGHAMS of Croydon has won the Golden Garage competition organised by Motor Codes, the body which operates the largest UK consumer code for motorists.
Kinghams also received a prize fund valued at over £6,000.
Consumers voted for their preferred garages at the Garage Finder at www.motorcodes.co.uk.
Having whittled down thousands of garages to the UK top 50, a further round of public voting identifi ed the UK’s top 10 service and repair centers. A panel of expert judges chose the winner.
BOSS: Tustain
PICK OF THE MONTH 21
www.motortrader.com APRIL2010
ANY OLD IRON: Nissan took the opportunity to build and show off this 36 ft “static sculpture” made out of scrapped car parts to announce the extension of its trade-in scheme. It is offering £2,000 off list prices of British built Nissans for cars over seven years old. Meanwhile the Renault-Nissan Alliance and Daimler have signed a far reaching three-way partnership which includes an immediate plan to collaborate on future cars and vans and an equity exchange. Renault-Nissan gets a 3.1 per cent stake in Daimler and Daimler a 3.1 per cent in Renault and a 3.1 per cent stake in Nissan. The next generation Smart and Twingo will be built on the same rear wheel drive platform.
PIC OF THE PICS
Insurance against
scuffsdents
scratches and chips
Make the SMART move
Proven new F&I product
Incremental earnings potential
Compliment your sales portfolio
Enhance your brand
Simple policy features
Clear customer benefits
Minimal financial investment or risk
Quick to launch
Dedicated account management
Fully FSA compliant
To learn moreabout SMARTInsurance talk to us direct on 0800 012 1830 or visit us atwww.smartinsurance.uk.com
Geely buys Volvo
Cars for £1.2bn
GEELY, the Chinese carmaker, has acquired Volvo from Ford for $1.8bn (£1.2bn).
Geely said the loss-making Swedish brand’s fortunes will be turned around with a new focus on the Chinese market.
“China, the largest car market in the world, will become Volvo’s second home market. Volvo will be uniquely-positioned as a world-leading premium brand, tapping into the opportunities in the fast-growing China market,” said Li Shufu, chairman of Zhejiang Geely Holding Group.
BMW revamps demonstratorsBMW dealers will not be required to purchase demonstrator models of the new 5 Series, now arriving in showrooms, saving them thousands of pounds.
The programme sees each dealer provided with vehicles owned and run by BMW. Cars remain with the dealers for six months before being replaced. The programme allows BMW to closely control the specifi cation of its demonstrators.
Small is beautiful
in new car sales
NEW generations of small cars due to be launched by premium and luxury brands mean size is no longer a measure of how prestigious a car is, according to Network Automotive.
It said the arrival of cars like the Aston Martin Cygnet, Audi A1 and a potential sub-1-Series BMW will signal a major shift in attitudes.
Managing director Colin Bruder said: “Manufacturers and customers have almost always linked a car’s size with its prestige. However, we are seeing real efforts to overturn that thinking.”
First UK car parc fall since WW2THE number of cars on UK roads has fallen for the fi rst time in 64 years. According to the SMMT the UK car parc stood at 31,035,791 cars in 2009, a year-on-year fall of 0.7 per cent and the fi rst peacetime decline.
The SMMT attributed the reduction to the impact of the recession, more vigorous licence enforcement and the success of the scrappage scheme.
HR Owen to undergo major ‘strategic review’HR Owen is to carry out a “fundamental strategic review” of its operations.
The announcement was made by newly appointed chairman Jon Walden who announced pre tax profi ts from continuing operations of £6.2m for the year to 31 December 2009 compared to £1.4m in 2008. Turnover from continued operations fell 13 per cent to £125.4m for the period.
“It is clear from my initial discussions that the business needs to develop and execute a strategy for profi table growth if it is to sustain itself as a public company.
“It is equally clear that the outcome of this strategic reinvention needs to deliver a fl ow of profi ts and cash fl ow that is more robust and less volatile than that provided by the current business,” he said.
RMI gears up for launch ofmileage clocking campaignTHE Retail Motor Industry Federation is looking to launch a campaign to stop car clocking.
It wants the sale of mileage correction equipment to be regulated to help clocked cars from being fed into the system.
RMI director Sue Robinson told Motor Trader: “A large number of offences are done by the public, they buy the clocking equipment and that has always been a problem. That is something we really want to start campaigning against.” Robinson said she was surprised the government had not moved to regulate the sector.
MOTORTRADER DEALER SURVEY: Spring 201022
www.motortrader.comAPRIL2010
Toughing it outThe majority of franchised dealers do not think the car retail sector will emerge from recession until 2011 or 2012 at the earliest
John Kirwan
So far 2010 has posed a lot of challenges for dealers with the end of scrappage, higher VED
on cars, the return of 17.5 per cent VAT and the introduction of showroom tax. There is also election uncertainty with the prospect further ahead of rising interest rates, higher taxation to reduce government borrowing and the likelihood of public sector job cuts.
This, perhaps, explains why the majority of dealers, 77 per cent,
do not think the car retailing sector will pull out of recession until 2011 or 2012.
Despite this the latest Motor Trader and Baker Tilly Dealer Retailing Survey, carried out in March, fi nds UK dealers in pragmatic mood as they consider their prospects for the year ahead.
We asked dealers on a scale of one to fi ve how confi dent they were of the viability of their business following the end of the scrappage scheme in March. The market has polarised since the survey was last carried out in October. This time around 24
per cent of dealers are low on confi dence, compared to 20 per cent, in October. But 56 per cent of dealers were more confi dent compared to 47 per cent in October (table 1).
A clear majority, 80 per cent, of dealers said their business had been profi table in 2009. (table 2). Looking ahead the same percentage expect 2010 to be profi table (table 3).
We asked dealers what was their number one priority for 2010 and used cars emerged as the clear winner cited by 54 per cent of respondents.
Dealers were asked what were the causes for lost car sales? Whereas in October, 34 per cent of those polled said lack of
fi nance was the cause, this had improved to 29 per cent in March poll. Back in October two-thirds cited lack of buyer demand as the root cause of lost car sales
and this had increased to 71 per cent by March (table 4).
The impact of scrappage on sales varied quite dramatically. More than a third of dealers (36 per cent) said it had a low impact
Dealers are pragmatic as they consider their prospects for the year
Restructuring and RecoveryReal people, real solutions
0
5
10
15
20
25
30
54321
4%
20% 20%
30%
26%
On a scale of 1 to 5 (1 low, 5 high) how confi dent are you in the viability of your business following the end of scrappage?
01
0
10
20
30
40
50
Declining significantly
Declining slightly
StrongVery strong
12%
44%
31%
13%
How would you describe your used car demand?
08
0
10
20
30
40
50
60
Don't KnowNoYes
22%24%
54%
Do you think the new VED rates and showroom tax will negatively affect new car sales?
09
0
10
20
30
40
50
60
70
80
NoYes
20%
80%
Was your business profi table in the 2009 fi nancial year?
02
0
10
20
30
40
50
60
70
80
NoYes
80%
20%
Do you expect to end the 2010 fi nancial year in profi t?
03
0
10
20
30
40
50
60
70
80
NoYes
28%
72%
Has your manufacturer partner or partners proposed any post-scrappage fi nancial support for your business?
07
Sour
ce: B
aker
Till
y/ M
otor
Tra
der
Helping steer clients through the rough Expert advisers to the motor retail sector
23
www.motortrader.com APRIL2010
0
5
10
15
20
25
54321
16%
20%
25% 25%
14%
On a scale of 1 to 5 (1 low, 5 high) how much did the extended scrappage scheme generate Q1 sales?
05
0
10
20
30
40
50
60
Later20122011Q4 2010Q3 2010Q2 2010
4%7% 5%
52%
25%
7%
When do you think the car retailing sector will pull out of recession?
11
0
20
40
60
80
100
NoYes after 2011Yes, in 2011Yes, by the end of 2010
4% 4% 7%
85%
Do you or your business plan to exit car retailing?
12
0
5
10
15
20
25
54321
17%
24% 24%
14%
21%
On a scale of 1 to 5 (1 low, 5 high) how much will the removal of the scrappage scheme reduce retail sales?
06
0
10
20
30
40
50
60
70
80
NoYes
36%
64%
Would you consider taking on a new franchise over the next 12 months?
10
0
10
20
30
40
50
60
70
80
Lack of demandLack of finance
29%
71%
What is the most common cause of lost car sales in the current climate?
04
wonder when dealers say that they think that the recession will end in 2011/2012 if they are really saying
“actually it’s tough now and I’m not sure I can see an end to it”?
The survey shows the polar effects that the scrappage scheme has had on dealers depending on where their manufacturer was positioned in the market. You can almost hear the disappointment of the 71 per cent of dealers as they answered in the negative as to whether their manufacturer had proposed any post-scrappage support and the majority who are less than happy with their manufacturers’ post scrappage retail programmes.
As for the future, whilst many of the larger players in the market are stressing the need for focus on customer retention and aftersales, the respondents to this survey are looking to concentrate their efforts on used cars. What’s certain is that there will not be many second chances going forward.
No second chances
Graham Bushby Head of Motor Restructuring & RecoveryBaker Tilly
SPONSOR’SCOMMENT
I
whereas 39 per cent said the effect on sales was high (table 5). This probably refl ects the fact that some carmakers, like Kia and Hyundai for example, had key budget models that sold well while other carmakers simply did not have the models or supply to cash in on the scheme.
What is going to happen to dealers’ businesses with the removal of scrappage? Again the market was polarised with 38 per cent saying it would have a low impact and the same percentage saying it would have a high impact (table 6). Separately, the majority of dealers, 70 per cent, thought scrappage vehicles were less profi table per unit compared to cars sold before the scheme was introduced.
A minority of dealers, 28 per cent, said their carmaker had proposed post scrappage fi nancial support with the balance saying they had not offered anything (table 7). Kia and Hyundai emerged strongly when it came to their post scrappage schemes with Toyota and Vauxhall also doing
well among survey respondents. Used cars continue to be critically
important for dealers and 43 per cent said demand was currently “very strong” or “strong” whereas 57 per cent said it was declining “slightly” or “signifi cantly” (table 8). Demand is greater now than it was back in October when just 25 per cent though it was “very strong” or “strong” and 75 per cent “declining” or “declining strongly”.
There has been much speculation as to whether the new VED tax and showroom tax would hit car
sales and almost half of those polled (54 per cent) said it would (table 9).
Looking to the future, a third of dealers would consider taking on a franchise over the coming 12 months with the balance not keen to do so. (table 10). This is largely unchanged since the last survey in October. That said, a large majority, 77 per cent, believe the car retailing sector will not pull out of recession until 2011 or 2012 (table 11) and over 10 per cent plan to exit car retailing in the next few years. (table 12).
FUTURE PROSPECTS: Where now for dealers post scrappage?
terrain Contact:Graham Bushby on 0121 214 3100 www.bakertilly.co.uk
Sponsored by
y
MENT
QUICKREAD Roland Bouchara has a
Masters degree in fi nance but started working for Renault as a salesman off the Champs-Elysees
He was the marketing director of Renault UK in the early 1990s at the time of the Papa and Nicole campaign
Before returning to the UK in 2006 he launched Renault in South Africa
Since 2007 he has signifi cantly cut back on daily rental and Motability volumes
He aims to increase sales this year to win a 5 per cent market share
R naQUICKR
Roland Masters dbut starteRenault athe Champ
He was tdirector ofthe early 1of the Papacampaign
Before retin 2006 he lain South Afr
Since 2007signifi cantly daily rental avolumes
He aims tothis year to wmarket share
24 THE MOTORTRADER INTERVIEW: Roland Bouchara
Re-engine
www.motortrader.comAPRIL2010
24 THE MOTORTRADER INTERVIEW: Roland Bouchara
MAN WITH A PLAN: Roland Bouchara, managing director Renault UK, Maple Cross, March 2010
Curtis Hutchinson
It’s a daunting prospect. You’re about to interview a carmaker boss, you’ve done your homework and have
quickly noticed that new car sales under his watch have halved plunging the brand’s market share to just 3.1 per cent in 2009.
You’re warmly greeted by your host who gamely poses
for our photographer on a grim day in late March when spring seems to be rewinding back into winter and a downpour is imminent. You’re shown to the well appointed
ult25
We are keeping the front end of the business absolutely separate
board room, which shows signs of a brainstorming session involving advertising campaigns from rival manufacturers, you’re offered a coffee and you realise you can’t avoid the elephant in the room so you take the plunge and ask your fi rst question about why new car volumes tumbled by 29.5 per cent last year in a market that was bad but not that bad.
The question is still being asked as the response comes. “I don’t want to talk about last year.” It’s a heart stopping moment. This is a major interview and could fall at this hurdle. But after the briefest of pauses the interviewee adds. “I want to talk about the last three years”. We’re back on track.
Meet Roland Bouchara. The urbane managing director of Renault UK.
Bouchara rejoined the UK business as managing director
Roland Bouchara CV
Born: 1958
1977-1982: Masters degree in fi nance, University of Provence
1982-1985: Ernst and Whinney, based in Paris and working in fi nance
1985-1988: Gillette Boston, working in fi nance
1989: Started a home shopping business (“It was like Ocado but before the internet was being used”)
1989: Joined Renault. Worked as a sales executive in a site off the Champs Elysees for eight months before becoming sales manager
1993-1998: Marketing director, Renault UK
1998-2000: Regional director Renault France, northern area
2000-2002: Marketing director, Renault France
2002-2003: European pilot for Renault-Nissan Alliance
2003-2006: Managing director, Renault South Africa.
2006-present: Managing director, Renault UK
Favourite book: Humain et raisonnable by Axel Khan
Film: Cinemoi (the French movie channel in English on Sky TV)
Newspapers:Le Monde and The Independent
Music: African Jazz
in late 2006, after successfully launching the brand in South Africa. He was previously marketing director here from 1994-1998 (“I didn’t know anything about marketing,” he deadpans, although during his tenure Renault enjoyed perhaps its most memorable TV campaigns with the Nicole and Papa Clio adverts). Having returned he set about turning around a business which had become too dependent on unprofi table daily rental and Motability sales to give it a market share of over 7 per cent.
Bouchara said his priority at the beginning of 2007 was improving the profi tability of the business and its dealer network, two elements which he sees as being inextricably linked. Central to this was a plan to improve customer satisfaction, which had been dented by poor reliability.
eering Despite last year’s dramatic sales fall to just 63,174 units, over 130,000 less than 2002’s volumes, Bouchara is confi dent the brand is on track to maintain profi table sales and take a fi ve per cent share of this year’s new car market.
Although there’s no direct criticism of previous UK bosses you can’t help but think that Bouchara inherited a bit of a mess, with volume the name of the game as Renault chased the big boys for market share at any cost.
Quality controlWhen he took the top job Bouchara was unimpressed with what he saw as the brand’s UK image and which he said encompasses quality, in terms of the products and the way customers are being served, as well as running costs associated with maintenance expenditure and residual values.
“When you combine all these elements and move up the perception of your brand to the public then voila – you sell more cars, ” he said.
Bouchara also knew that 2007 marked the bottom point in the brand’s product cycle and the new generation Megane, launched in November 2008, had the potential to help raise Renault’s somewhat tarnished image for the quality and reliability of its new products.
He fi rmly believes that the Megane, and the latest Scenic, have helped improve the brand’s
standing in the quality and reliability stakes although he concedes that with a large car parc of older models it will be some time before these improvements fi lter through to
JD Power and Which? surveys.Renault, like other
manufacturers, sees a breakdown of warranty claim work across different marques and Bouchara said this has signifi cantly improved with new generation cars.
“We know these cars have good product quality. That kind of perception is not with the general public yet, but we know they are amongst the best quality in the
THE MOTORTRADER INTERVIEW: Roland Bouchara
www.motortrader.com APRIL2010
On paper Renault’s dramatic drop in new car sales last year looked disastrous. But, according to its UK boss, Roland Bouchara, the fall was part of a programme to exit unprofi table business and it’s paying off
UK. Warranty costs within our dealerships have been reduced by more than 30 per cent. When you speak to our multi-franchised dealers they will tell you we are now one of the best in terms of quality,” he said.
Dealers will also reap the future quality benefi ts of the newly signed alliance between Renault-Nissan and Daimler with Mercedes technology and quality fi ltering through to the next generation Twingo.
SALES POINT: Renault is moving to trim its UK network from 260 to 201 sites by the end of 2011
Practical are looking for new franchisees in many locations
across the UK - call Jenny Turner on 0121 703 6108
or email: [email protected] and ask for your free fact pack now!
Do you want to drive more traffic to your business?
In today’s challenging economy, many are finding that their core business is grinding to a halt. If you really want to boost sales, it could pay to add a new opportunity to your business.
Joining the Practical Car & Van Rental network is a recession-proof way to take advantage of the UK’s multi-million pound vehicle rental market. We offer a franchise opportunity that will provide you with a profitable new revenue stream to bolster turnover and help you stay on track during these difficult economic times.
26
www.motortrader.comAPRIL2010
THE MOTORTRADER INTERVIEW: Roland Bouchara
Residuals reviewBouchara admitted that quality improvements, while vital to long term credibility, are not suffi cient to regenerate a brand as it takes time to shake off a negative image. A major target was improving poor residual values to make cost of ownership more attractive for retail and fl eet buyers.
“Quality is not enough. We also wanted to signifi cantly increase our residual values. RVs are a key element of running costs and customer image. To do it we had to review our mix of sales through the different channels. What we decided to do was reduce, signifi cantly but gradually, our volume through the expensive channels – short term rental, Motability and self-registrations,” he said.
This proved to be a signifi cant and timely decision as Renault began to cut back on these areas
before the economic downturn began to bite and before the exchange rate made it painful to import cars from the Eurozone. Renault didn’t know it but it was getting its house in order during the lull before what would have proved to be a more damaging storm.
“We started to gradually reduce our market share. I’m not saying all our losses are because of that but two-thirds of it was because we decided to do it. In 2008, with the crisis coming, we amplifi ed this strategy and further reduced our volumes through these channels,” he said.
“We decided to reduce our market share and improve our residual values. If the number of used cars you have coming back is greater than your retail market share then you will never be able to absorb it; which is what
happens to many brands. You can buy a market and achieve a 7 or 8 per cent share but it’s a one shot strategy,” he said.
The move has paid off. With supply under control Renault’s cars now command better RVs, which is good news for retail and fl eet buyers and, of course, dealers.
Glass’s Guide said the improved quality of the new Megane had resulted in stronger RVs but warned it will take continuous improvements to change the market’s perception of the brand.
Jeff Paterson, Glass’s Guide’s chief car editor, said: “Providing Renault can keep a tight lid on fast-churn rental and leasing volumes over the next few years, the brand could lift itself up the RV pecking order. But a rationalised model line up and a
continued focus on build quality and reliability will be paramount for it to make up lost ground.”
Dealer focusDealers play a vital role in Bouchara’s plan to turn the UK
business around. He has a better understanding than most carmaker bosses of what makes dealers tick as his fi rst job with the company was on the showroom fl oor off the Champs-Elysees selling cars. With
When you move up the image of your brand then voila, you sell more cars
Pict
ures
by
Jam
es Y
oung
THE MOTORTRADER INTERVIEW: Roland Bouchara 27
www.motortrader.com APRIL2010
Dealer Option Ltd is a new company founded to provide the Motor Industry with an exceptional paint & fabric protection system.
Platinum Protection.Platinum Protection comes with a fully transferable lifetime guarantee from date of application on all paintwork, fabric upholstery, leather and carpets.
Managing Director Seb Belardo is so confident of the Platinum Protection formula that he is offering a no nonsense promise to car dealers
“Should our product not fulfil your customer’s expectations then we will happily re-treat the whole vehicle free of charge or in the event of their further dissatisfaction then a full refund will be given!”
There is even a free trial period with no purchases necessary.
Other benefits include: No weekly/monthly
maintenance programme required; the customer simply washes their vehicle either by hand or carwash.
Protecting the vehicle against environmental hazards including bird lime.
Full Sales & Product development training module (also available as ‘e’ training).
On-line registration of guarantee.
Valeter application materials supplied in application pack.
Comprehensive Kit range; Dealer Entry Level (sub £15 UK), Standard & Deluxe (comes complete with safety related items in customers aftercare holdall).
Bespoke dealer branding available (no additional cost).
‘No quibble’ money back guarantee.
One stage application process. Dedicated account
management. Free of charge point of sale
material. Total customer satisfaction
guaranteed
Don’t settle for second best
www.dealeroption.co.uk [email protected] Tel: 01367 246011
The first Paint Protection option to offer ‘transferable lifetime guarantee’
Advertisement featurewas before we knew about the recession. I told them we needed to work on residuals and that it was going to be tough as we would reduce our market share. I told them some would suffer but we would help where we could,” he said.
Consequently 2009 was a tough year with market share dipping to just 3.2 per cent. According to Bouchara Renault invested money in the network last year to “keep it in good shape” and worked closely with the dealer council to ensure transparency.
What will surprise non-Renault dealers is that during this apparent period of misery the network returned to profi t last year after losses in 2008, according to Bouchara.
“Last year our network was able to generate a profi t of 1.2-1.3 per cent. Why? We signifi cantly reduced distribution costs through our Renault 20 programme over the last 18 months. By improving our RVs by eight to 10 points we have seen benefi ts in monthly
fl eet rentals and used car profi t. We have been very focused on retaining our retail market share which tracks at around 5 per cent and hasn’t really decreased by much. We have
moved away from expensive sales channels and increased the number of models we have for sale,” he said.
This quiet turnaround probably explains why Renault enjoyed a reasonable showing in the most recent RMI National Franchised Dealers Association Dealer Attitude Survey with the brand around average in many categories.
Its network currently stands at 201 dealers, including 23 run by the factory-owned Renault Retail Group, with a number of sites working through their termination notices.
Turning pointBouchara is philosophical about 2009 and sees it as a turning point for the brand, pointing out that the painful decision to reduce
a Masters degree in Finance and having held senior managerial jobs with blue chip companies, he was probably the most over qualifi ed car salesman in Paris. The position may have been a stop gap before he hit the fast track but Bouchara said he enjoyed the job and was good at it.
Back in December 2007 as part of his plan to improve the brand’s image he introduced the Renault Network Regeneration Plan.
A fl uent and highly articulate English speaker Bouchara deliberately uses the word “re-engineering” when describing the process of change, pointing out that while reducing sites was an essential element it was not just about terminations but how to get the remaining dealers into mutually benefi cial levels of profi tability.
“Three years ago we reviewed our business plan in order to improve our network profi tability. I use the term ‘re-engineering the network’ because it was also about reducing distribution costs, looking at representation and changes of management in order to help our network be more profi table because the network is part of the marketing mix – it wasn’t just downsizing,” he said.
The plan was presented to the network at a dealer conference at St Andrews in December 2007. Bouchara told them he was going to improve the profi tability of Renault UK and the network. That was the good news. Many of the dealers there would have been braced for the bad news, which entailed a shrinking of the network from 260 to 201 sites by the end of 2011.
“I explained we had too many dealers because the market was only going to decrease and this
We had too many dealers; and this was before we knew about the recession
Car sales
Mktshare
Van sales
Mktshare
2000 161,140 7.3% 12,735 5.3%
2001 181,629 7.4% 15,124 6.0%
2002 194,664 7.6% 19,467 7.3%
2003 189,414 7.3% 19,601 6.5%
2004 189,342 7.4% 21,693 6.6%
2005 174,750 7.2% 21,322 6.6%
2006 138,094 5.9% 20,912 6.4%
2007 126,816 5.3% 20,934 6.2%
2008 89,570 4.2% 16,693 5.8%
2009 63,174 3.2% 9,689 5.2%
Renault UK car and van sales 2000-09
ANIMATED: Bouchara is
confi dent reduced volumes
will boost profi tability for
Reanult and its dealers
Sour
ce: J
ato
DY
NA
MIC
S
28
www.motortrader.comAPRIL2010
THE MOTORTRADER INTERVIEW: Roland Bouchara
BUDGET DUST-UP: Dacia will debut in the UK in 2012 with the Duster mini SUV priced from around £10,800
sales had been made before the downturn impacted the new car sector. When combined with the brand’s internal research on reduced warranty claims on newer models, Bouchara is confi dent the mission to raise network profi tability and improve the brand’s image has gained traction.
As if to prove the point Renault has been on a gentle roll since the second half of 2009, which it does not attribute solely to demand through the scrappage scheme. It has also enjoyed a strong fi rst quarter to 2010 with sales up by 104.5 per cent, a 4.9 per cent market share, making it the fi fth biggest seller after Ford, Vauxhall, Volkswagen and Peugeot.
Curiously Renault’s increase in sales have been boosted by it dipping its toes back into the daily rental and Motability sectors but Bouchara maintains these sales are very much on Renault’s terms.
“Because we have improved our profi tability and RVs we have been able to come back into these
channels but make more profi t than before,” he said.
Bouchara is adamant that levels into these channels will be strictly controlled to refl ect the same volumes by model which are being bought by retail customers. “We want to be able to absorb the used cars at a normal level. This is our strategy,” he said.
According to Bouchara Renault’s standing in the fl eet sector is also growing with its improved RVs which help to drive down company car running costs. “We’re seeing a recovery in fl eet this year. There’s an organic growth opportunity there as we have a better product proposition than before, especially on the back of the Megane,” he said.
Renault believes the pain it has gone through since 2007 puts it in a good position for future growth but on a profi table basis. In October 2009 Renault launched Destination 5 aimed at moving the regenerated business up a gear by targeting a 5 per cent share of the
new car market.“It has to be a 5 per cent with
profi t. Anyone can achieve 10 per cent without profi t,” he joked.
Post-scrappageWith last orders having being called on the scrappage scheme, Bouchara is in the camp that believes a 1.9 million car market is likely this year. If the brand succeeds in its aim to take a 5 per cent share of the new car market then that will mean generating sales of around 95,000.
So where will these new sales come from? The brand will not be missing scrappage too much as it only registered 13,773 car and van sales under the scheme, losing out, along with many mainstream players, to the emergent Korean brands. Last year Renault’s retail share ended at just 3.7 per cent but he believes the removal of scrappage will give the brand an opportunity to win sales from the Koreans and increase its retail share to 5 per cent.
No.1 in the handling &disposing of motor vehicles
www.hbc.co.ukCall us today on: 01268 696444
Fax: 01268 510087 or Email: [email protected] Vehicle Services HBC House, Charfleets Road, Canvey Island, Essex, SS8 OPQ.
BRITISH VEHICLE
SALVAGE FEDERATION
THE SAFEST
HANDS IN
SALVAGE!
Visit our website:
The handling and disposing ofmotor vehicle salvage is aconstant drain on financial andadministrative resources.
HBC reduce this by providingan unrivalled service
We are prompt, efficient andfully in accordance with
current industry guidlines andenvironmental legislation.
We require minimum administrationto collect and dispose of yourvehicle salvage.
Continued investment andsystems development enable usto set the standards that othersstruggle to achieve.
0161 430 5390 / 01173 167 810
Bulk waste oil & oil filters Part washers, brake cleaners
& spray gun cleaners Mixed & contaminated fuels Environmental agency
registration Waste thinners, paints & inks Waste anti-freeze Waste aerosols Bodyshop booth filters Batteries
Every business needs sustainable, totally reliable waste management solutions that minimise waste and cost. As a hazardous environmental agency licensed waste management company and UK industry leader, Pure Clean Environmental meets that need.
Go Green With Pure Clean
www.pureclean.co.uk
THE MOTORTRADER INTERVIEW: Roland Bouchara 29
www.motortrader.com APRIL2010
A day in the lifeBouchara said he likes to spend as much of his time as possible out in the network.
“I need to be able to talk to sales executives and sales managers to get precise feedback on what’s happening. I probably spend 20 per cent of my time with dealers,” he said.
“I spend a lot of time with fl eet customers as well. It’s important to understand them,” he said.
At least once a month he visits Renault’s head offi ce in Paris and has regular video conference calls with the management team.
His working day in Rickmansworth tends to start at 8am and fi nish at 7pm and he commutes in his Laguna Coupe GT.
t
tart hi L C GT
Dacia debutRenault’s ambition to boost its retail business will be helped by some forthcoming product. This summer sees the launch of the eye-catching Wind, a two-seater coupe-convertible which will be pitched against the Peugeot 207CC. Next year the brand moves into new territory with the ambitious launch of four all-electric vehicles, while 2012 will see the company fi nally bring its successful Dacia budget brand to the UK.
“Dacia will give us a substantial market share increase as has been the case for Renault in many countries,” he said.
Renault has owned the Romanian brand since 1999 and originally intended it for emerging markets but it proved to be a surprise hit in major European markets, particularly France and Germany. Dacia sales across a depressed Europe grew by a remarkable 95 per cent to 187,701 units last year with
the fl edgling brand outselling Chevrolet, GM’s budget brand. The fi rst model on sale here will be the Duster mini-SUV, which, based on the current value of the euro, would retail for around £10,800 in its 4X2 guise.
Dacia will be sold through selected Renault dealers where the market potential and the economic equation stacks up.
“We’ve been watching Dacia’s remarkable success closely over the last few years, so naturally I’m thrilled that we’ll soon be able to start showing the British public what all the fuss has been about,” he said.
More imminent is the introduction of the four model all-electric plug-in ZE (short for zero emission) range. These will start to reach the UK in mid 2011 with the fi rst model set to be the Fluence saloon, followed by a Kangoo Van and then a two-seater based on the Twizy concept. A supermini will complete the line-up in 2012.
“It’s diffi cult to know precisely
what size this market will be but one thing for sure is that electric vehicles will be signifi cant. Our challenge is to be in a leadership position when the market begins to develop,” he said.
All Renault dealers will be expected to sell and service the electric vehicles.
“We will use the full network to sell ZE. We need to review our business plan with the network.
We have four mass-market vehicles and are in no doubt about the way the market will develop. This is a big revolution for the car industry,” he said.
Used salesBy reducing its daily rental volumes and self registrations (“We do zero now, not even one”) dealers have fewer good quality low mileage cars coming back into
Mixed signs?
to www.mfldirect.co.uk
For a forward and low mileage, single owner
THE MOTORTRADER INTERVIEW: Roland Bouchara30
www.motortrader.comAPRIL2010
LCV sales pick upWith light commercial van registrations diving by 35.6 per cent last year every single van brand lost sales, with Renault feeling the downturn more than most with a 42 per cent fall.
However, 2011 is looking better with year to date sales up 17.6 per cent and a new generation of its popular Master (pictured) range going on sale this month.
“The market is picking up. It’s better than our expectations – which is a good sign,” said Roland Bouchara.
While all dealers can sell LCVs the brand has started to roll out a network of 20 specialist Pro+ retailers who can cater for the specifi c needs of corporate customers.
“Every dealer sells vans and every one is expected to deliver their share. Vans are profi table for dealers in terms of sales and aftersales. We have some very good products in the market and in some ways it’s easier to conquest vans than cars,” he said.
the network. While the reduction in Motability sales has yet to fi lter through to used forecourts as the cars are run for longer periods.
“It has been tough. The number of used cars has reduced. I don’t want to push cars [into used sales]. Cutting out zero mileage self registrations has had a big impact on the network because the profi tability on those cars was less than legitimate used cars so the profi t per unit improved.
“Last year our return on investment on used cars across the network was over 100 per cent, the industry average is about 80 per cent. It was a good profi t stream for the network,” he said.
Supply became an issue mid way through last year when the reduced daily rental volumes began to be felt with reduced availability for suitable models for the network’s Renault to Go approved scheme. However, with the brand re-entering daily rental it expects availability to improve during the second half of the year.
Nissan collaborationThe signifi cance of the 11 year old Nissan-Renault alliance comes into sharp focus when visiting the brands’ joint UK head offi ce in Maple Cross, Hertfordshire, where they occupy identical adjacent buildings.
Although the brands compete with each other across many sectors, with Renault pitched head to head against Nissan in the future electric market, they maximise on synergies behind the scenes, including a shared head offi ce IT department.
At a retailing level, with many cars sharing parts and platforms, it makes sense for dealer partners to represent both brands wherever possible.
“The biggest dual franchise partner we have is Nissan; the two brands compete but also complement each other very well. We will approach certain markets as a joint effort which is a powerful proposition to a lot of retailers because together they
represent close to a 10 per cent market share and not many brands can offer that.
“Also at the back of house there are a lot of synergies which represent effi ciencies for the dealership,” he said.
Profi t centreBack in February 2009 Thierry Moulonguet, Renault’s international chief fi nancial offi cer, admitted that the brand lost money on every car it sells in the UK because of the pound/euro exchange rate which at the time had fallen to 1.08.
I ask Bouchara if with all the cost effi ciencies he’s implemented the brand is now making money on the cars being sold in the UK.
“The pound is in a better position than a year ago. We have signifi cantly improved our level of profi tability,” he said.
It’s not an unequivocal yes but with aftersales revenues factored into the equation he is confi dent the brand is back in the black.
www.ukcarexchange.com
SELL MORE CARS...NO SALE, NO FEE, NO CONTEST
0845 519 [email protected]
UK Car Exchange is a revolutionary new online car auction website. Using our unique daily price drop auction, we bring your stock to 1000’s of trade & retail buyers. Giving you the opportunity to sell more cars, faster than ever before.
� List as many cars as you like – FREE
� Sell cars whilst they’re still on your forecourt
� Sell part exchanges & overage/surplus stock
� Source cars that you need
Contact us today for details of how to register as an approved seller.
REQUEST A FREE
BROCHURE
APRIL 2010WWW.MOTORTRADER.COM
SPONSORED BY
THE AWARD-WINNING VOICE OF THE CAR RETAILING SECTOR
TOP2OOFRANCHISED DEALER UPDATE
MOTORTRADER
New Rank
Previous Rank
Company Latest turnover
(£'000)
1 1 Pendragon plc 4,162,400
2 3 Sytner Group 2,300,000
3 4 Arnold Clark Automobiles 2,210,191
4 2 Inchcape Retail 2,055,700
5 5 Lookers plc 1,749,000
6 6 Mercedes-Benz Retail Group 1,200,000
7 7 Jardine Motors Group 920,914
8 8 Ford Retail Group 906,002
9 9 Vertu Motors plc 760,800
10 10 Greenhous Group 689,519
11 11 Listers Group 641,460
12 13 JCT 600 (e) 571,588
13 16 Marshall Motor Group (e) 521,000
14 12 Robins & Day 482,841
15 14 Renault Retail Group 465,000
16 15 Perrys Group 434,195
17 17 Agnew Group 359,425
18 18 Marubeni Auto Investments 341,816
19 19 Pentagon Motor Group (Reeve Derby) 332,500
20 20 Hartwell plc 322,487
21 21 Eastern Holdings 298,210
22 22 Helston Garages Group 295,000
23 23 Parks of Hamilton 292,893
24 24 Benfi eld Motor Group (Addison) 287,504
25 25 Ridgeway Group 282,620
26 26 John Clark Motor Group 257,174
27 44 Cambria Automobiles Holdings 255,466
28 27 Citroën Retail Group 250,850
29 28 Allen Ford (Camden Ventures) 248,112
30 30 Williams Motor Co (Holdings) 244,418
31 31 Dick Lovett Group 244,000
32 32 Co-operative Motor Group 237,000
33 29 Rybrook Holdings 231,661
34 33 Harwoods 227,683
35 34 TC Harrison Group 216,615
36 36 Gilder Group 214,628
37 35 GK Group 214,457
38 37 Vindis Group 208,520
39 106 Group 1 (Chandlers Garages) (e) 207,697
40 38 Hendy Holdings 207,182
41 39 Mon Motors Group (JD Cleverly) 206,844
42 40 Wayside Group 202,949
43 41 Drive Motor Retail 201,859
44 43 Lloyd Motors 201,854
45 69 Johnsons Cars (e) 181,000
46 45 Donnelly Bros Garages (Dungannon) 180,778
47 46 Porsche Retail Group 180,006
48 48 Halliwell Jones 176,948
49 49 Vospers Motor House 175,114
50 51 City Motor Holdings (e) 171,000
MOTOR TRADER
TOP2OOFranchised Dealer Update
www.mobil1.co.uk MANY DRIVERS. ONE OIL.
The latest update provides a vivid picture of the pain felt by the country’s biggest dealer groups since the downturn began to hit bottom lines from 2008
Toby Procter
It was an extraordinary year. The downturn in the economy began to hit the car retailing sector from
the summer of 2008 and started to grab headlines when the September plate-change tumbled 7.5 per cent.
Since then franchised dealer groups have been forced to address the way they do business and make some diffi cult decisions.
This Motor Trader Top 200 Update collates the most recent group results for 2008 and into 2009. Clearly dealers took a savage beating in 2008, which is refl ected in our survey.
A quarter of the companies from the 2009 Motor Trader Top 200 have reported new fi nancial results since our autumn report, bringing the picture fully up to date in showing dealer performance during 2008, and in some cases, into the fi rst quarter of 2009.
Back in 2008, individual groups showed a great variety of responses to the tough conditions they experienced with varying degrees of pain. Most statutory
accounts made at least some reference to declining demand and its origins in the fi nancial crisis, but few private companies provide more than the minimum information required by law; let alone annual sales or aftersales volumes.
What might surprise some commentators is that there was as much fi xed cost to remove as there proved to be during 2008. So that when sales picked up in the fi rst quarter of 2009, many dealers were able to send more of their improved top lines to their bottom lines than might have been the case without the previous year’s crisis conditions.
However, one common thread running through the accounts we have surveyed this time is a substantial loss of shareholder value. On a like-for-like basis – comparing the 184 entrants common to both this and the spring 2009 Motor Trader Top 200 – shareholders’ funds fell by 6.5 per cent, leaving few business owners in a good position to reduce debt in the face of bankers’ reluctance to extend lending.
Plc performanceNinth-placed Vertu recently reported at the end of its fi nancial year on, 28 February, that trading in the period to 31 January 2010 had remained ahead of budget and prior year levels after a strong fi rst half. Consequently, Vertu expects its performance for the full year to exceed market expectations. The group noted that scrappage incentives had taken market share from its traditionally high market share franchises, but it had nevertheless achieved high
Table notes: 1. JCT 600 bought Bramall & Jones in March 2010 and turnover has been estimated based on JCT 600 + Bramall & Jones.2. Marshall Motor Group supplied estimates for 2009 including their acquisition of Francis Motor Group and opening of Nottingham Volvo.3. Marubeni includes RRG and Norton Way.4. Co-operative Motor Group was formerly Sunwin.5. Group 1 bought Barons Group in March 2010 and turnover has been estimated based on Group 1 + Barons.6. Johnson Cars bought Motorworld in January 2010 from the MidCounties Co-operative Society - except two VW dealers acquired by Ridgeway. Turnover for Johnson Cars has been estimated based on this acquisition but Ridgeway has not.7. Stephen James now trades as an LLP hence profi ts and shareholders’ funds are perhaps not comparable to limited companies. The previous MT200 estimated turnover during this transition, which can now be seen to be overstated.8. We are told by Lindsay Cars that they are accounted for separately from Ford Retail Group.9. Silver Street Automotive Group’s turnover, pre-tax profi t and employees for year ending 12/07 were incorrectly stated as the sum of Silver Street and Audi SW in previous Top 200.10. Foray Motor Group acquired the Shaftesbury-based Hine Motors. It is too soon to factor this into its turnover.11. Baylis made an exceptional profi t of £2.1 million in 2008 on disposal of fi xed assets.12. Jacksons of Bournmouth is for UK mainland only.13. The turnover for W Grose includes some discontinued operations.14. Hawkins Motor Group made an exceptional profi t of £3.2 million on the sale of assets.15. Regent bought four Volvo dealerships from HR Owen.16. (e) indicates an estimate.17. n/a indicates data not available or not supplied.
www.motortrader.comAPRIL2010
MOTORTRADER TOP 200 UPDATE32
New Rank
Previous Rank
Company Latest turnover
(£'000)
51 52 Sandicliffe Motor Group 167,539
52 53 Stoneacre 166,107
53 54 Robinson Motor Group 163,874
54 50 Sinclair Motor Holdings 161,294
55 47 Stephen James 159,777
56 55 Caffyns plc 158,653
57 56 Lomond Motors 157,663
58 57 CEM Day 156,000
59 58 TG Holdcroft (Holdings) 155,768
60 72 Swansway Garages 153,184
61 59 Drayton Motor Group (Meteor) 151,900
62 61 Hodgson Automotive 149,944
63 62 W Brindley Garages 148,897
64 64 Currie Group 144,600
65 77 Glyn Hopkin 143,456
66 66 Westover Group 143,016
67 42 John Martin Group 141,780
68 63 Phoenix Car Company 139,939
69 68 The Harratts Group 139,601
70 70 Beadles Group 139,000
71 71 S Jennings 137,532
72 67 Guildford Portfolios T/as Vines 136,356
73 73 Colborne Garages 135,028
74 75 Peoples 132,910
75 74 Macrae & Dick 129,210
76 65 HR Owen plc 125,406
77 78 The Verve 123,166
78 79 Jemca 122,503
79 80 Lindsay Cars 120,446
80 81 John Grose Group 117,446
81 76 Yeomans 117,247
82 82 SG Smith Motor Group 116,847
83 83 Colebrook & Burgess Motor Group 113,947
84 84 Thurlow Nunn (TNS) 113,679
85 86 Snows Motor Group 113,109
86 91 Bedfordia Motor Holdings 111,240
87 89 West Way Nissan 110,287
88 92 Spire Automotive 110,192
89 93 Peter Vardy 107,605
90 90 WJ King (Garages) 106,898
91 88 John R Weir 106,230
92 95 Motorline 103,366
93 97 Fish Brothers 102,000
94 98 Essex Ford Group 101,556
95 85 Barretts Motor Group 101,062
96 128 Specialist Cars Group 100,741
97 99 Lifestyle Europe 100,597
98 94 FG Barnes & Sons 99,243
99 96 FRF Motors 98,475
100 101 Wood Group 97,799
New Rank
Previous Rank
Company Latest turnover
(£'000)
101 60 Silver Street Automotive Group 97,257
102 102 McLean & Appleton (Holdings) 96,715
103 110 Clare James 96,241
104 103 Bestodeck 95,597
105 105 Blue Bell Wilmslow 95,000
106 108 Gates Group 92,877
107 109 Gordon Lamb Holdings 91,223
108 104 Drift Bridge Garage 89,545
109 111 Thompson Motor Company 88,842
110 113 Citygate Automotive 87,253
111 115 Foray Motor Group 85,374
112 116 Cotswold Motor Group 84,953
113 112 SG Petch 84,313
114 117 Marriot Motor Group 82,267
115 118 Heritage Automotive 81,827
116 121 L & L Automotive 79,278
117 122 Eden (GM) Ltd 79,043
118 123 Gordons Bolton 78,742
119 107 WH Bowker 78,104
120 124 Hughes of Beaconsfi eld 77,607
121 125 Springfi eld Motor Group 77,497
122 138 Furrows Group 75,351
123 120 Collier Motor 75,141
124 126 Uphill Motor Company 74,571
125 127 Howard Garages 74,297
126 144 Wilson & Co 73,281
127 114 Greenoaks (Maidenhead) 70,192
128 130 Underwoods Garage 68,869
129 131 Renrod 68,860
130 132 Desira Group plc 67,888
131 119 Central Garage (Uppingham) 67,035
132 139 Murkett Brothers 64,075
133 141 Chorley Nissan 63,873
134 142 Loders Motor Group 63,613
135 143 Blade Motor Group 63,317
136 146 Ocean Group (Grevan Cars) 62,730
137 147 DJ Cox 61,399
138 148 Meridian Motor Group 61,336
139 150 Squire and Furneaux 60,978
140 151 J Toomey Motors 60,610
141 152 Wessex Garages 60,440
142 154 Horizon-Magna Motor Group 59,882
143 155 WR Davies (Motors) 59,112
144 134 Waters Retail 58,860
145 149 Colt Cars Midwest 57,730
146 145 West London Motor Group 57,595
147 158 SP Broughton 57,112
148 159 City and County 57,041
149 161 St Leonards Motors (e) 57,000
150 163 EMG Holdings 56,326
New Rank
Previous Rank
Company Latest turnover
(£'000)
151 164 Boroughbury Holdings 56,121
152 157 Baylis (Gloucester) 56,117
153 140 Pilling Motor 55,846
154 166 Shields Automotive 55,362
155 156 Seward Group 55,221
156 167 Hylton Group 55,000
157 168 Nidd Vale Group 54,882
158 153 Frosts Cars 53,658
159 169 Tanner Automotive 53,061
160 170 Pentagon Toyota (Burrows) 52,789
161 171 Hampshire Motor Group (Tony Purslow) 52,573
162 172 Slaters of Abergele 52,239
163 136 Jacksons Bournemouth 52,051
164 160 Sherwoods 51,053
165 174 Charters of Aldershot 50,799
166 162 Bolton Car Centre 50,697
167 137 W Grose (Northampton) 49,815
168 177 Sutton Park Motor Company 49,737
169 179 West Riding Motor Group 49,372
170 178 Saab City 48,374
171 182 Hodgson Newcastle 46,076
172 173 South Hereford Garages 46,039
173 185 JCB Medway (e) 45,000
174 165 Cameron Group 44,954
175 186 Fairfi eld 43,749
176 187 Bussey & Sabberton Bros 43,392
177 188 Carco Group 43,363
178 189 Cathedral Motor Co 43,313
179 200 Chapel House Holdings 43,097
180 176 William Lewis Cars 42,537
181 181 Holden Motors 41,667
182 183 Thames Honda (e) 41,000
183 190 M53 Motors 40,996
184 184 Hawkins Motor Group 40,578
185 NEW Regent Automotive Ltd (e) 40,000
186 192 Hawco & Sons 39,635
187 193 Southgate Group 38,740
188 194 Trust Group 38,647
189 195 Holiways 38,466
190 196 RMB Automotive 37,787
191 198 Gravells 37,462
192 NEW Whitmores of Edenbridge 36,947
193 NEW Picador plc 36,402
194 NEW Pentraeth Holdings 35,631
195 NEW Ancaster Group 35,569
196 175 Octagon Motor Company 35,568
197 199 Barnetts Motor Group 34,820
198 NEW Peter Cooper Group 34,223
199 NEW Mitchell North West Ltd 34,116
200 NEW Now Vauxhall 33,133
www.mobil1.co.uk MANY DRIVERS. ONE OIL.
www.motortrader.com APRIL2010
33Sponsored by
volume bonuses and better-than-expected new car margins.
Pendragon, Britain’s biggest dealer group, released its preliminary results in late February and said its underlying pre-tax profi t stood at £10.1m for 2009, representing a recovery of £43.7m over the group’s underlying loss of £33.6m in 2008.
The cost of refi nancing Pendragon’s debt reduced net pre-tax profi t to £1.3m, but to stay within banking covenants when 2009 revenue dropped by £1 billion (to £3.2bn) was no mean achievement for the group.
Pendragon increased its underlying gross margin from 13.2 per cent to 15.4 per cent, generated nearly £40m more cash than in 2008 from much lower turnover, and cut net debt by £41.9bn. These preliminary results are not refl ected in this Motor Trader Top 200, but will clearly have an impact in the autumn 2010 edition.
Meanwhile Pendragon is expected to close at least nine more dealerships this year, after
closing or selling 26 franchise outlets last year and cutting its staff numbers by 879.
Main movementsFour groups were involved in acquisitions of note: JCT600, Group 1 Automotive, Marshall Motor Group and Johnson Cars. Because of the impact on the turnover of these groups we have provided estimates for ‘latest turnover’ and relegated 2008 to ‘previous year’.
JCT600 (number 13 in last year’s Motor Trader Top 200), bought Hull and York Audi in August 2009. Then in March 2010 it acquired three more Audi dealerships from 100th-placed Bramall & Jones, effectively taking over the vendors’ business.
The deal brought JCT600’s franchise outlets to 47 selling 20 car brands. We estimate that these changes will add around £100mto the 2008 turnover of JCT600 and elevate it one place to number 12 in the Motor Trader Top 200.
Also in March 2010, US-based
Group 1 Automotive acquired two BMW/Mini dealerships from Barons in Farnborough and Hindhead. The four franchises are expected to generate over £100m in annual revenues and will complement Group 1’s three existing BMW/Mini franchises. Group 1 shoots up from 106 to 39, making it the biggest mover in this edition of the Motor Trader Top 200.
In February 2010, Top 20 Marshall Motor Group acquired the £35m turnover, Leicestershire-based Francis Group (180 in the autumn 2009 rankings), which comprised two Honda outlets, one for Seat, and one Suzuki business. Daksh Gupta, Marshall’s chief executive, noted his group had added 12 new businesses in the previous 12 months (including a Volvo outlet in Nottingham), and now had seven Honda sites, following its acquisition of de Vries Honda in 2009.
Gupta told us that adding the Nottingham Volvo and Francis Group acquisitions to Marshall Motor Holdings’ turnover gives an estimated turnover of £521m, bringing Marshall up the Motor Top 200 rankings to number 13, with a pre-tax profi t of £5.78m and 1,771 employees. Marshall is still on the acquisition trail.
Five of 10 Motorworld-branded outlets of the Midcounties Co-operative, the UK’s second largest co-op group, were sold to Johnsons Cars, bringing the latter’s outlets total to 23, and adding new Volvo, Mazda and Mitsubishi franchises. We estimate that this will add at least £42m to Johnson Cars’ turnover and move
it from 69th place (in November 2009) to 45th place.
Midcounties Co-operative sold two VW sites to Ridgeway Group, bringing the total sites it runs for the brand to fi ve, and adding 90 employees, to reach a total of 740. We have not estimated the effect of this acquisition on Ridgeway. Three further Motorworld outlets in Berkshire were acquired by former Motorworld general manager Richard Shepherd. Midcounties Co-operative has now exited the sector.
Meanwhile, Inchcape Retail’s drop from second to fourth spot
Annual turnover (£'000)
Percentage of total
Average turnover per group (£'000)
Top 10 groups 16,954,526 41.8% 169,545
No's 11 - 25 5,928,539 14.6% 395,236
No's 26 - 50 5,343,815 13.2% 213,753
No's 51 - 100 6,454,114 15.9% 129,463
No's 101 - 200 5,925,749 14.6% 59,257
Total MT 200 40,606,743 100.0% 203,129
Company Latest rank
Regent Automotive 185
Whitmores of Edenbridge 192
Picador plc 193
Pentraeth Holdings 194
Ancaster Group 195
Peter Cooper Group 198
Mitchell North West 199
Now Vauxhall 200
ROS rank
Top 200 rank
Company Latest turnover (£'000)
Latest pre-tax profi t (£'000)
Return on sales %
1 174 Cameron Group 44,954 1,517 3.4%
2 176 Bussey & Sabberton Bros 43,392 1,440 3.3%
3 199 Mitchell North West Ltd 34,116 1,042 3.1%
4 94 Essex Ford Group 101,556 2,744 2.7%
5 52 Stoneacre 166,107 4,321 2.6%
6 179 Chapel House Holdings 43,097 1,104 2.6%
7 47 Porsche Retail Group 180,006 4,356 2.4%
8 97 Lifestyle Europe 100,597 2,212 2.2%
9 171 Hodgson Newcastle 46,076 931 2.0%
10 20 Hartwell plc 322,487 6,412 2.0%
11 58 CEM Day 156,000 3,004 1.9%
12 172 South Hereford Garages 46,039 880 1.9%
13 23 Parks of Hamilton 292,893 5,016 1.7%
14 198 Peter Cooper Group 34,223 567 1.7%
15 18 Marubeni Auto Investments 341,816 5,633 1.6%
16 3 Arnold Clark Automobiles 2,210,191 36,202 1.6%
17 90 WJ King (Garages) 106,898 1,696 1.6%
18 115 Heritage Automotive 81,827 1,290 1.6%
19 2 Sytner Group 2,300,000 33,800 1.5%
20 35 TC Harrison Group 216,615 3,157 1.5%
POWER OF THE SUPERGROUPS
NEW DEALER GROUPS TO THE TOP 200
TOP 20 RETURN ON SALES
Companies just outside the Top 200
All Electric Garages Group plcBirchwood Motor GroupBrayley HondaColin AppleyardDanetre HoldingsFreebornMasters of BeckenhamRichmond GroupSimon BailesSky FordSpirit Motor HoldingsWhitequay
BUBBLING UNDER
www.motortrader.comAPRIL2010
MOTORTRADER TOP 200 UPDATE34
5.5%
77%
8
fall in Top 200 turnover
fall in Top 200 pre-tax profi ts
4% fall in Top 200 staff
new entries to Top 200
www.mobil1.co.uk MANY DRIVERS. ONE OIL.
may be a temporary placing as the other large groups catch up with their 2009 results.
A late result as we went to press was HR Owen plc. Its turnover fell from £145million in 2008 to £125million in 2009. This demoted HR Owen from 65th to 76th.
Key ratiosThe latest fi gures essentially bring the Motor Trader Top 200 up to date to the end of 2008 and it is instructive to compare the situation now with spring 2009, which refl ects the pre-recession year of 2007. Data for last year – 2009 – will be available in the
Rank Company Latest rank
Previous rank
Improvement in rank
1 Group 1 (Chandlers Garages) 39 106 +67
2 Specialist Cars Group 96 128 +32
3 Johnsons Cars 45 69 +24
4 Chapel House Holdings 179 200 +21
5 Wilson & Co 126 144 +18
6 Cambria Automobiles Holdings 27 44 +17
7 Furrows Group 122 138 +16
8= EMG Holdings 150 163 +13
8= Boroughbury Holdings 151 164 +13
10= Swansway Garages 60 72 +12
10= Glyn Hopkin 65 77 +12
10= Horizon-Magna Motor Group 142 154 +12
10= WR Davies (Motors) 143 155 +12
10= St Leonards Motors 149 161 +12
10= Shields Automotive 154 166 +12
10= JCB Medway 173 185 +12
Rank Company Latest rank
Previous rank
Fall in rank
1 W Grose (Northampton) 167 137 -30
2 Jacksons Bournemouth 163 136 -27
3 John Martin Group 67 42 -25
4 Octagon Motor Company 196 175 -21
5= Greenoaks (Maidenhead) 127 114 -13
5= Pilling Motor 153 140 -13
7= WH Bowker 119 107 -12
7= Central Garage (Uppingham) 131 119 -12
9 HR Owen plc 76 65 -11
10= Barretts Motor Group 95 85 -10
10= Waters Retail 144 134 -10
Rank Top 200 rank
Company Latest turnover (£'000)
Latest pre-tax profi t (£'000)
Return on sales %
1 3 Arnold Clark Automobiles 2,210,191 36,202 1.6%
2 2 Sytner Group 2,300,000 33,800 1.5%
3 5 Lookers plc 1,749,000 11,500 0.7%
4 11 Listers Group 641,460 6,709 1.0%
5 20 Hartwell plc 322,487 6,412 2.0%
6 13 Marshall Motor Group 521,000 5,780 1.1%
7 18 Marubeni Auto Investments 341,816 5,633 1.6%
8 23 Parks of Hamilton 292,893 5,016 1.7%
9 47 Porsche Retail Group 180,006 4,356 2.4%
10 52 Stoneacre 166,107 4,321 2.6%
11 9 Vertu Motors plc 760,800 3,500 0.5%
12 10 Greenhous Group 689,519 3,178 0.5%
13 35 TC Harrison Group 216,615 3,157 1.5%
14 24 Benfi eld Motor Group (Addison) 287,504 3,082 1.1%
15 58 CEM Day 156,000 3,004 1.9%
16 31 Dick Lovett Group 244,000 3,000 1.2%
17 94 Essex Ford Group 101,556 2,744 2.7%
18 25 Ridgeway Group 282,620 2,635 0.9%
19 22 Helston Garages Group 295,000 2,506 0.8%
20 27 Cambria Automobiles Holdings 255,466 2,331 0.9%
21 97 Lifestyle Europe 100,597 2,212 2.2%
22 90 WJ King (Garages) 106,898 1,696 1.6%
23 43 Drive Motor Retail 201,859 1,615 0.8%
24 8 Ford Retail Group 906,002 1,611 0.2%
25 88 Spire Automotive 110,192 1,523 1.4%
26 174 Cameron Group 44,954 1,517 3.4%
27 74 Peoples 132,910 1,506 1.1%
28 64 Currie Group 144,600 1,472 1.0%
29 81 Yeomans 117,247 1,457 1.2%
30 46 Donnelly Bros Garages (Dungannon) 180,778 1,452 0.8%
31 44 Lloyd Motors 201,854 1,443 0.7%
32 51 Sandicliffe Motor Group 167,539 1,442 0.9%
33 176 Bussey & Sabberton Bros 43,392 1,440 3.3%
34 34 Harwoods 227,683 1,414 0.6%
35 103 Clare James 96,241 1,360 1.4%
36 115 Heritage Automotive 81,827 1,290 1.6%
37 66 Westover Group 143,016 1,284 0.9%
38 106 Gates Group 92,877 1,259 1.4%
39 179 Chapel House Holdings 43,097 1,104 2.6%
40 63 W Brindley Garages 148,897 1,103 0.7%
41 199 Mitchell North West Ltd 34,116 1,042 3.1%
42 48 Halliwell Jones 176,948 993 0.6%
43 171 Hodgson Newcastle 46,076 931 2.0%
44 172 South Hereford Garages 46,039 880 1.9%
45 70 Beadles Group 139,000 829 0.6%
46 65 Glyn Hopkin 143,456 801 0.6%
47 32 Co-operative Motor Group 237,000 800 0.3%
48 111 Foray Motor Group 85,374 763 0.9%
49 124 Uphill Motor Company 74,571 743 1.0%
50 157 Nidd Vale Group 54,882 685 1.2%
COMPANIES MOVING UP THE RANKINGS
COMPANIES MOVING DOWN BUT STILL IN THE TOP 200
TOP 50 BY PRE-TAX PROFITS
www.motortrader.com APRIL2010
35Sponsored by
autumn Motor Trader Top 200 and are likely to show an upturn, boosted by scrappage sales volume, and better average profi ts to boot.
The combined turnover of the Motor Trader Top 200 in this update has declined to £40.6 billion from £43.5 billion in March last year. However, 184 companies in this 2010 update were listed in the Motor Trader Top 200 a year ago. In all cases except one - where accounts are overdue - the following effectively compares the 2007 and 2008 years:
Total turnover of the 184 companies is down by 5.5 per cent
www.mobil1.co.uk MANY DRIVERS. ONE OIL.
Rank Top 200 rank
Company Latest turnover (£'000)
Previous turnover (£'000)
Improvement %
1 89 Peter Vardy 107,605 36,798 192.4%
2 39 Group 1 (Chandlers Garages) 207,697 94,587 119.6%
3 124 Uphill Motor Company 74,571 45,198 65.0%
4 27 Cambria Automobiles Holdings 255,466 187,916 35.9%
5 13 Marshall Motor Group 521,000 395,000 31.9%
6 45 Johnsons Cars 181,000 139,338 29.9%
7 77 The Verve 123,166 98,978 24.4%
8 88 Spire Automotive 110,192 89,327 23.4%
9 12 JCT 600 571,588 472,615 20.9%
10 55 Stephen James 159,777 132,551 20.5%
11 111 Foray Motor Group 85,374 72,462 17.8%
12 41 Mon Motors Group (JD Cleverly) 206,844 176,649 17.1%
13 59 TG Holdcroft (Holdings) 155,768 133,347 16.8%
14 126 Wilson & Co 73,281 62,842 16.6%
15 28 Citroën Retail Group 250,850 218,681 14.7%
16 58 CEM Day 156,000 136,000 14.7%
17 65 Glyn Hopkin 143,456 127,624 12.4%
18 9 Vertu Motors plc 760,800 677,200 12.3%
19 60 Swansway Garages 153,184 137,526 11.4%
20 191 Gravells 37,462 33,816 10.8%
21 179 Chapel House Holdings 43,097 38,943 10.7%
22 101 Silver Street Automotive Group 97,257 88,899 9.4%
23 192 Whitmores of Edenbridge 36,947 33,837 9.2%
24 43 Drive Motor Retail 201,859 185,320 8.9%
25 51 Sandicliffe Motor Group 167,539 154,585 8.4%
26 44 Lloyd Motors 201,854 188,620 7.0%
27 103 Clare James 96,241 90,226 6.7%
28 8 Ford Retail Group 906,002 849,773 6.6%
29 3 Arnold Clark Automobiles 2,210,191 2,083,889 6.1%
30 134 Loders Motor Group 63,613 61,007 4.3%
31 34 Harwoods 227,683 219,762 3.6%
32 169 West Riding Motor Group 49,372 47,858 3.2%
33 143 WR Davies (Motors) 59,112 57,443 2.9%
34 122 Furrows Group 75,351 73,416 2.6%
35 178 Cathedral Motor Co 43,313 42,223 2.6%
36 37 GK Group 214,457 209,266 2.5%
37 97 Lifestyle Europe 100,597 98,202 2.4%
38 130 Desira Group plc 67,888 66,275 2.4%
39 190 RMB Automotive 37,787 37,040 2.0%
40 193 Picador plc 36,402 35,697 2.0%
41 132 Murkett Brothers 64,075 63,068 1.6%
42 92 Motorline 103,366 101,744 1.6%
43 118 Gordons Bolton 78,742 77,523 1.6%
44 52 Stoneacre 166,107 163,565 1.6%
45 84 Thurlow Nunn (TNS) 113,679 112,196 1.3%
46 36 Gilder Group 214,628 213,019 0.8%
47 165 Charters of Aldershot 50,799 50,456 0.7%
48 133 Chorley Nissan 63,873 63,479 0.6%
49 35 TC Harrison Group 216,615 215,810 0.4%
50= 149 St Leonards Motors 57,000 57,000 0.0%
50= 173 JCB Medway 45,000 45,000 0.0%
TOP 50 BY IMPROVEMENT IN TURNOVER In the latest year (effectively 2008), 45 per cent made a loss compared to 16 per cent in the previous year
Excluding Pendragon’s substantial loss in 2008, the total of pre-tax profi ts for the remainder is down 77 per cent from £350m to £82m
Shareholders’ funds have fallen by 6.5 per cent
The number of employees has fallen by 4 per cent
Consolidation slowsCompared to autumn 2009, there are eight new entries in the Motor Trader Top 200. At 200 in the main rankings is Now Vauxhall with its latest reported turnover of £33.1m marking the current entry point for the league table – some £6m less than the entry-level of £39m in spring 2009.
In a sector where surprisingly few groups went out of business during the recession, the market penetration of the largest groups is little changed from a year earlier. The groups in the second-largest quartile of the Motor Trader Top 200 – in rankings 26-50 – account for 13.2 per cent of total Motor Trader Top 200 turnover, against 12.1 per cent a year ago, with their latest combined turnover of £5.34bn.
Profi tabilityGrowth-hungry operators might refl ect on the fact that the group at 199 in the overall rankings achieved a return on sales of 3.1 per cent, the third-highest in these rankings and way ahead of the return on sales ratios achieved by the bulk of the entrants in this table.
The disappearance of Pendragon from the upper ranks of the biggest profi t earners – in terms of sheer pre-tax profi t compared to a year ago - speaks volumes about the diffi culties faced by groups in 2008. So does the sharp drop in Arnold Clark’s still-leading pre-tax profi t, which has virtually halved with pre-tax
Research and methodologyFor the companies that declined to take part we referred to Companies House for the latest data and applied estimates where applicable. All estimates (marked ‘e’) are based on previously recorded information and refl ect average changes in market conditions. If information was unavailable we have entered ‘n/a’.
• Only new car franchise businesses with two or more sites are included.
• LCV sites are included within groups where the main activity is cars.
• Turnover emanating from other activi-ties – used car sites, bodyshops, leasing companies – is usually included because it cannot be separated out.
• The key data for companies are taken at the fi nancial year end. However if Companies House data had to be used, it is possible that some key data might be out of step with the turnover.
Responsibility for how the Motor Trader Top 200 information is used rests entirely with the user.
www.motortrader.comAPRIL2010
MOTORTRADER TOP 200 UPDATE36
profi t as a percentage of sales down from 3.4 per cent a year earlier to just 1.6 per cent.
Sales and profi t per employeeGreenhous Group, which operates a fl eet remarketing business, tops the sales-per-employee ratings, with its fi gure of £913,000. Greenhous would probably have topped this table in spring 2009 but did not include its employee numbers in its response.
The more important profi t per employee fi gures show Porsche Retail holding on to its position at the top of the table, with its £14,281 average nevertheless halved from its spring 2009 fi gure of £28,143. With over half in this table making less profi t in 2008 than 2007, cutting staff numbers was clearly a key strategy and 60 per cent took this path. Most of the top performers in this ratio’s rankings are associated with ‘prestige’ franchises but not all. Fourth-ranked Essex Ford, a prime mover in forming a dealer grouping to facilitate scale economies via joint purchasing, proves that there’s no single recipe for success where franchise portfolios are concerned.
Sales are obviously crucial, whether these are high-end new sports cars or used cars sold in volume.
www.mobil1.co.uk MANY DRIVERS. ONE OIL.
Rank Top 200 rank
Company Latest turnover (£'000)
Latest employees
1 10 Greenhous Group 689,519 755 913
2 19 Pentagon Motor Group (Reeve Derby) 332,500 444 749
3 6 Mercedes-Benz Retail Group 1,200,000 1,937 620
4 48 Halliwell Jones 176,948 299 592
5 47 Porsche Retail Group 180,006 305 590
6 109 Thompson Motor Company 88,842 158 562
7 55 Stephen James 159,777 285 561
8 119 WH Bowker 78,104 141 554
9 31 Dick Lovett Group 244,000 442 552
10 88 Spire Automotive 110,192 203 543
11 170 Saab City 48,374 91 532
12 57 Lomond Motors 157,663 307 514
13 59 TG Holdcroft (Holdings) 155,768 317 491
14 2 Sytner Group 2,300,000 4,800 479
15 116 L & L Automotive 79,278 167 475
16 36 Gilder Group 214,628 460 467
17 63 W Brindley Garages 148,897 324 460
18 72 Guildford Portfolios T/as Vines 136,356 297 459
19 7 Jardine Motors Group 920,914 2,020 456
20 147 SP Broughton 57,112 129 443
21 183 M53 Motors 40,996 93 441
22 83 Colebrook & Burgess Motor Group 113,947 260 438
23 73 Colborne Garages 135,028 310 436
24 89 Peter Vardy 107,605 248 434
25 39 Group 1 (Chandlers Garages) 207,697 479 434
26 50 City Motor Holdings 171,000 396 432
27 11 Listers Group 641,460 1,491 430
28 86 Bedfordia Motor Holdings 111,240 259 429
29 112 Cotswold Motor Group 84,953 198 429
30 30 Williams Motor Co (Holdings) 244,418 573 427
31 60 Swansway Garages 153,184 360 426
32 113 SG Petch 84,313 203 415
33 34 Harwoods 227,683 550 414
34 87 West Way Nissan 110,287 267 413
35 69 The Harratts Group 139,601 338 413
36 100 Wood Group 97,799 244 401
37 65 Glyn Hopkin 143,456 358 401
38 41 Mon Motors Group (JD Cleverly) 206,844 517 400
39 26 John Clark Motor Group 257,174 649 396
40 15 Renault Retail Group 465,000 1,174 396
41 169 West Riding Motor Group 49,372 126 392
42 44 Lloyd Motors 201,854 517 390
43 25 Ridgeway Group 282,620 724 390
44 61 Drayton Motor Group (Meteor) 151,900 390 389
45 99 FRF Motors 98,475 253 389
46 140 J Toomey Motors 60,610 156 389
47 132 Murkett Brothers 64,075 165 388
48 151 Boroughbury Holdings 56,121 147 382
49 46 Donnelly Bros Garages (Dungannon) 180,778 475 381
50 182 Thames Honda 41,000 109 376
Rank Top 200 rank
Company Latest Pre-tax (£’000)
Latest employees
Profi t per employee (£’000)
1 47 Porsche Retail Group 4,356 305 14,281
2 174 Cameron Group 1,517 142 10,682
3 199 Mitchell North West Ltd 1,042 106 9,827
4 94 Essex Ford Group 2,744 312 8,794
5 88 Spire Automotive 1,523 203 7,503
6 179 Chapel House Holdings 1,104 151 7,312
7 2 Sytner Group 33,800 4,800 7,042
8 176 Bussey & Sabberton Bros 1,440 207 6,954
9 171 Hodgson Newcastle 931 134 6,951
10 31 Dick Lovett Group 3,000 442 6,787
11 20 Hartwell plc 6,412 961 6,672
12 58 CEM Day 3,004 485 6,194
13 172 South Hereford Garages 880 147 5,986
14 18 Marubeni Auto Investments 5,633 1,044 5,396
15 97 Lifestyle Europe 2,212 425 5,204
16 52 Stoneacre 4,321 866 4,989
17 23 Parks of Hamilton 5,016 1,055 4,755
18 35 TC Harrison Group 3,157 665 4,747
19 103 Clare James 1,360 288 4,723
20 11 Listers Group 6,709 1,491 4,500
21 3 Arnold Clark Automobiles 36,202 8,421 4,299
22 81 Yeomans 1,457 343 4,248
23 10 Greenhous Group 3,178 755 4,209
24 182 Thames Honda 437 109 4,005
25 106 Gates Group 1,259 317 3,972
26 90 WJ King (Garages) 1,696 433 3,917
27 157 Nidd Vale Group 685 180 3,806
28 183 M53 Motors 343 93 3,688
29 25 Ridgeway Group 2,635 724 3,640
30 191 Gravells 356 100 3,558
31 140 J Toomey Motors 553 156 3,546
32 74 Peoples 1,506 425 3,544
33 115 Heritage Automotive 1,290 378 3,413
34 63 W Brindley Garages 1,103 324 3,404
35 48 Halliwell Jones 993 299 3,321
36 13 Marshall Motor Group 5,780 1,771 3,264
37 64 Currie Group 1,472 467 3,152
38 27 Cambria Automobiles Holdings 2,331 758 3,075
39 46 Donnelly Bros Garages (Dungannon) 1,452 475 3,057
40 22 Helston Garages Group 2,506 827 3,030
41 125 Howard Garages 577 201 2,869
42 44 Lloyd Motors 1,443 517 2,791
43 24 Benfi eld Motor Group (Addison) 3,082 1,107 2,784
44 122 Furrows Group 656 237 2,770
45 178 Cathedral Motor Co 446 162 2,752
46 165 Charters of Aldershot 514 190 2,705
47 116 L & L Automotive 451 167 2,699
48 34 Harwoods 1,414 550 2,572
49 109 Thompson Motor Company 405 158 2,563
50 170 Saab City 230 91 2,527
TOP 50 COMPANIES BY TURNOVER PER MEMBER OF STAFF TOP 50 COMPANIES BY PROFIT PER EMPLOYEE
www.motortrader.com APRIL2010
37Sponsored by
Turnover per employee (£’000)
www.mobil1.co.uk MANY DRIVERS. ONE OIL.
© 2009 Exxon Mobil Corporation. Mobil, Mobil 1, and the 1 icon are trademarks of Exxon Mobil Corporation or one of its subsidiaries.
Mobil 1. The best oil is the one that answers
all your questions.
With a proven track record for performance, Mobil 1 is the world’s leading synthetic engine oil. But leading in technology is only one thing. As our partner, we also provide you with the right answers and support regarding product technology, marketing sales or pricing related questions. By explaining why Mobil 1 is the best choice, we’ll help you make convincing sales to your customers. Mobil 1: the surest way to get the most out of your lubricant business. To learn more, visit www.mobil1.com
HUTTON REPORTS 39
www.motortrader.com APRIL2010
Car dealers in the UK remember Nick Reilly as the affable rugby-playing chairman of
Vauxhall Motors in the 1990s. Car industry workers are more likely to recall that Reilly was the man who closed the Luton car plant. Today, he has the task of restructuring General Motors’ operations in Europe and restoring confi dence in the Vauxhall and Opel brands.
Sensitive jobsReilly is clearly the right man for this sensitive job. After the Luton episode he handled the diffi cult negotiations in the GM takeover of the Daewoo car business in Korea and more recently, as the head of international operations in Shanghai, secured fi nancing for new ventures in India and
Thailand. He was previously vice president for sales and marketing at GM Europe and is one of only two senior executives to survive last year’s GM bankruptcy and US government bail-out.
Perhaps most important of all, he is a Brit. When, at the very last moment, GM changed its mind about selling Opel and Vauxhall to Magna, the Germans were furious. The Opel workforce and local management looked forward to independence from their American overlords and the German government was actively behind the takeover by Magna and its Russian partners. Reilly was not involved in the sale process and was able to come back to a business he knows in the spirit of conciliation.
He has had to do a lot of that
Europe; he is chief executive of both Opel and Vauxhall. This is to speed up decision-making and give more responsibility to managers lower down the chain of command.
The company will, he insists, have more autonomy than before: “The relationship with GM in America has changed. It had swung too far towards centralisation.
“Future Opels (and Vauxhalls) will be decided at Opel. Development of all new products will go through Russelsheim. We will either engineer the whole project, as in the case of the Delta platform (Astra) for which we have global responsibility, or, if the architecture originates elsewhere, we will bring it in at early stage to ensure it carries Opel DNA.”
Twelve new models will be launched in 2010 and 2011. The most recent is the new Meriva, which made its debut at last month’s Geneva Motor Show.
Mini A-carReilly has called for the development of a conventionally-powered mini A-car which should appear in 2013. Initial ideas of making this as a shortened version of the Corsa have been rejected in favour of a unique platform. Reilly wouldn’t say where that will come from but admitted that it is not all-new, so it seems it will be shared with another manufacturer, likely from Asia. In former times that might have been Suzuki, which supplies the Vauxhall Agila, but Suzuki’s new partnership with Volkswagen makes the continuation of that contract unlikely.
Ray Hutton
in the past few months, shuttling from his headquarters in Germany to meetings with unions and the governments of countries where GM has factories. Opel/Vauxhall, as it is now called, needed to raise €3.7bn to keep the business afl oat during the restructuring.
Last month it was announced that the parent company (60 per cent owned by the US taxpayer) would contribute €1.9bn, effectively halving the loans that the governments are being asked to guarantee.
The British government will cover €300m and, at the end of March, Reilly was cautiously confi dent of imminent agreements with Spain, Poland and Austria. Germany has been slow to respond, although it had been prepared to back Magna with €4.5bn Euros.
The loans will be on commercial terms from a variety of banks including the European Investment Bank. Reilly expects them to be repaid by 2014; he said that Opel/Vauxhall should break-even next year and make profi ts in 2012 and thereafter.
Smaller entityOpel/Vauxhall will be 20 per cent smaller when the restructuring is complete, with a capacity to make 1.6 million cars a year. The axe has fallen on the plants in Antwerp, Belgium and Bochum in Germany; Ellesmere Port, the lead plant for the new Astra, has been spared further cuts.
Reilly has taken out a layer of management that existed in GM
General Motors’ European boss Nick Reilly in conversation with Ray Hutton about the restructuring of Opel/Vauxhall
MORALE BOOSTER: Reilly
is tasked with restoring
confi dence in the Vauxhall
and Opel brandsReillyLife of
The future is electric THE Ampera plug-in hybrid (pictured) will be imported from America and supplied in limited numbers to fl eets next year, and sold or leased more widely from 2012.
Nick Reilly said he is “pretty convinced” that eventually the Ampera will be made in Europe. He is not sure where but describes Ellesmere Port as “a strong contender”. The decision will be made next year.
Reilly’s recent experience in Asia makes him bullish on electric cars. Incentives in China in particular could mean a rapid increase in electric car production. While the general view is that plug-ins of various kinds might take up to 10 per cent of the European market by 2020, Reilly thinks the electrics could reach 20 per cent by then. So, as well as the Ampera and its future derivatives, Opel/Vauxhall is working on a pure electric city car.
SOsc1fBEtf
m
could mean a rapid on.
l is car.
PROMOTION: 2010 Castrol Professional 5’s40
www.Castrol5s.co.uk
To celebrate its sponsorship of the 2010 FIFA World Cup™, Castrol Professional, in association with Motor Trader, is running an exclusive 5-a-side football challenge with the fi nals taking place on 30 May
at Leicester City’s Walkers Stadium.At the time of going to press, 22 teams
have entered the tournament. That leaves just two places up for grabs, and they will be awarded on a fi rst-come-fi rst-served basis.
All you need to do is assemble a team of fi ve to seven players and nominate a captain who will be our point of contact for all correspondence.
The captain will need to register all your team’s details online at www.Castrol5s.co.uk.The one off joining fee is just £100 (+ VAT) per team which is payable online when you register at www.castrol5s.co.uk. If you
miss out on those remaining two places and would like your team to be placed on a reserve list in case of any
cancellations, please email [email protected], just like the professionals, you’ll need optimum teamwork and sustained
motivation to deliver maximum performance and achieve success.
As well as being crowned the 2010 Castrol Professional 5’s Champions, the victors will also be Castrol Professional’s guests in Billingsgate, London at a live screening of England’s 2010 FIFA
World Cup™ match against Algeria, with food, drinks and nearby accommodation
in central London all included. And, the Champions will win an exclusive 2010 FIFA
World Cup™ table football table for their dealership
Further detailsIf you have specifi c questions about the 2010 Castrol Professional 5’s please contact the Castrol Professional 5’s team: Mike Stainton – [email protected] or Lee Probert – [email protected]
Castrol Professional 5 The Castrol Professional 5-a-side football challenge for UK and Ireland franchised dealers takes place in Leicester on 30 May. So, let’s meet some of the teams
APRIL2010
Dealership: Pentraeth GroupLocation: Menai Bridge AngleseyTeam captain: Aled OwenIt’s a fact: Pentraeth Group has sponsored Bangor City for 22 yearsStar Player: Team captain holds record for fastest goal in Welsh Cup history, nine secondsPredicted fi nish: Pentraeth is “in it to win it!”
Dealership: Donnelly BrosLocation: Dungannon, Co Tyrone, Northern IrelandTeam captain: Stephen Hughes
Dealership: Western GlasgowLocation: GlasgowTeam captain: Colin Gilbey
Dealership: Donnelly BrosLocation: Mallusk, Northern IrelandTeam captain: Chris Donnelly
Dealership: Lillis O Donnell Motor Co (Ford)Location: Dublin, IrelandTeam captain: Sean Curran
Dealership: Donnelly BrosLocation: Enniskillen Co FermanaghTeam captain: Michael HynesIt’s a fact: “We never stop working”Star player: Barry Fee, parts advisor has the “reactions of a cat”Predicted fi nish: Winner or runner up
Dealership: SaltmarineLocation: Dungannon, Co Tyrone, Northern IrelandTeam captain: Robbie SilcockStar player: Simon Wilson, workshop manager who used to play for Meadowbank ThistlePredicted fi nish: “Settle for anywhere in the top two”
team to be placancellatio
Thenneed
mope
Cvgli
Wfoo
in ceChamp
World Cupdealership
STOP PRESS
Latest entrants Barons of Farnborough
Marshall Kings LynnHadley Green
Sytner Birmingham
PROMOTION: 2010 Castrol Professional 5’s 41
www.Castrol5s.co.uk
’s heads for the fi nals
APRIL2010
Dealership: Alex LawrieLocation: AngleseyTeam captain: Tony BaylissIt’s a fact: Alex Lawrie is putting together a go kart team and is looking for sponsorsStar Player: Teamwork is “the secret weapon” for this teamPredicted fi nish: Final
Dealership: Hartwell Land RoverLocation: NorthamptonTeam captain: Tim England
Dealership: Warrington VolkswagenLocation: Liverpool Team captain: Craig WilliamsIt’s a fact: The team is the current Castrol ChampionsStar Players: Team has a few ex-pros and current semi-pros. Star striker Mick Stantangelli played in the same youth team as Wayne RooneyPredicted fi nish: Winners
Dealership: Evans HalshawLocation: StourbridgeTeam captain: Stuart Ashford
Dealership: Norton WayLocation: Chiswick MiddlesexTeam captain: Bradley OctaveIt’s a fact: Norton Way is biggest Honda dealership in EuropePredicted fi nish: At the top
Dealership: Marshall HyundaiLocation: CambridgeTeam captain: Wayne SeymourIt’s a fact: Marshall celebrated its centenary last yearStar Player: Dominic Free, trialed with Ipswich Town FC as a schoolboyPredicted fi nish: First
Dealership: Cecil and LarterLocation: Bury St EdmundsTeam captain: Adam HorrexIt’s a fact: Cecil and Larter has been running as a business for 85 yearsStar Player: Ronald Wright, also known as Ronaldo. Many people have compared him to a cross between Vinnie Jones and Lionel Messi,” says the teamPredicted fi nish: To win the tournament if team plays “to full potential”
Dealership: Marshall Peugeot Location: PeterboroughTeam captain: Liam Parkin
Dealership: SG PetchLocation: Belmont. DurhamTeam captain: Simon ReesIt’s a fact: The fi rm claims to be the number two in Great Britain for sales of Hyundai carsPredicted fi nish: “Numero uno”
Dealership: Mercedes-Benz of EdinburghLocation: EdinburghTeam captain: Colin Nicol
Castrol Professional 5’s FINALWalkers Stadium,Leicester
USED MARKET: Q4 sales42
www.motortrader.comAPRIL2010
lowUsed car sales may have helped to keep dealers in profi t in 2009 but overall the UK market dipped to its lowest point since 2000
Curtis Hutchinson
Here’s an irony. Demand for used car sales kept the wolf from franchised dealers’
doors in 2009 but the market for secondhand cars tumbled to its lowest point since 2000.
There is a simple explanation. When the bottom fell out of new car sales, during the fi nal quarter of 2008, those buyers who remained in the market either switched to used cars or returned to the new sector after the mid-May 2009 launch of the scrappage scheme. Since then there has been a well documented shortage of stock which has bumped up prices, while the jury is out on what happens next to the new and used sectors now that scrappage has run its course.
Used sales for the full year fell by 5.7 per cent from 7,157,982 to 6,798,864 used cars.
The fi gures in our Q4 used car sales survey, collated by Experian, are based on the DVLA’s change of ownership records and include
A new
Take note
PRODUCTS
Our F&I solutions provide the most comprehensive and innovative solutions on the market.FOR FURTHER INFORMATION CALL:Mike Macaulay, National Sales & Development Manager: 0871 384 3507 or email: [email protected] register interest: www.autoprotect.net/motortrader
all retail and private sales.The data shows used car sales
had been falling during each quarter of the year, with Q4 seeing a drop of 5.9 per cent compared to the same period in 2008. Q4 sales were also down 15.7 per cent compared with Q3.
“The recession and the scrappage scheme have had a big impact on the used car market,” said Kirk Fletcher, managing director for Experian Business Information and Automotive.
“Consumers who would have normally bought a used car were now considering a cheaper new car through the scrappage scheme. This resulted in smaller new cars moving into a price range that had previously been occupied by used cars.
“The scrappage scheme has also affected the number of used cars available for sale. Normally, when a new car is bought, a used car inevitably comes onto the market. However, with the scrappage scheme, the part-exchange vehicles have been scrapped.
“Furthermore, the recession has
resulted in people holding onto their cars for longer, which has also affected the choice of used cars on the market,” he said.
Segment salesSales of the used cars in the mini segment, such as the Fiat Seicento and the discontinued Daewoo Matiz, saw the biggest drop over the course of 2009 falling 9.1 per cent.
During Q4 the upper-medium sector, the mainstay of traditional family sized cars, fared the worst
when compared with Q4 2008, seeing a drop of 10.3 per cent. When comparing Q4 sales to Q3, the specialist sports sector, which includes models such as the Audi TT and the Mazda MX-5, came off the worst with a 23.2 per cent slump. This was in stark contrast to the year-on-year Q4 results where the specialist sports segment was the only sector to see an increase in sales with a 5.7 per cent growth, albeit from a low base.
With buyers on the look out for affordable cars it was hardly
FORECOURT APPEAL: Used sales rallied when the downturn began to bite
5.7%
15.7%
2009 used sales down
Q4 sales down
43
www.motortrader.com APRIL2010
Take note
PROCESSES
Our market-leading I.T. solutions can add real value to your business.
FOR FURTHER INFORMATION CALL:Mike Macaulay, National Sales & Development Manager: 0871 384 3507 or email: [email protected] register interest: www.autoprotect.net/motortrader
Q4 2009 Q4 2008 Q4 2007 Q4 2006 Q4 2005
Diesel 399,888 400,128 400161 387586 371556
Electric 392 285 181 20 15
Petrol 1,053,298 1,146,233 1259428 1331589 1385771
Petrol electric 2,932 1,336 1109 836 264
Others 3,112 2,796 3118 2869 2616
Total 1,459,622 1,550,778 1663997 1722900 1760222
Used car sales fuel types Q4 2005-2009
Used car sales 2005-20092005 2006 2007 2008 2009
January 608,119 623,168 611,822 600,581 592,289
February 639,230 647,381 621,436 655,230 578,685
March 683,655 712,603 693,506 660,691 642,614
April 723,759 675,526 653,800 660,642 608,840
May 690,121 697,296 672,906 656,376 606,037
June 685,450 659,433 660,794 602,338 578,677
July 688,292 672,787 666,723 614,980 601,441
August 690,866 691,015 673,107 610,101 573,460
September 673,075 676,907 632,734 596,383 557,199
October 669,103 659,511 640,246 604,525 569,778
November 611,703 603,329 589,679 534,204 504,008
December 479,416 460,060 434,072 412,049 385,836
surprising that the supermini segment remained the biggest sector.
Fuel typeThe alternative fuel market bucked the downward trend with sales almost doubling in 2009 with hybrid models becoming increasingly popular and the market leading Prius, which is now in its third generation, fi nally making an impression on the used stage.
Although the overwhelming majority of used and new cars being sold are still petrol run, it is the only fuel type to see a drop in sales during 2009, with an 8.7 per cent fall compared to 2008.
Vehicle ageWith the boost in new car sales due to the scrappage scheme, the sub-three year-old sector suffered the most with sales dropping by 15.4 per cent when compared with Q4 2008.
Cars over nine years old were the only age group to see any form of increase, albeit a marginal 0.4 per cent improvement on Q4 2008 fi gures while a large proportion of cars aged over 10 years disappeared from the market altogether as they made their fi nal journey to the scrapyard.
Auction valuesAgainst this backdrop used auction values spent much of 2009 recovering from the falls seen in 2008, before levelling off during the back end of the year as more traditional market forces and seasonal trends came into play during Q4.
“The end of the year often sees a surge in prices as professional dealers acquire stock in readiness for the new year. While average values did rise in December it was due to a changing mix of higher value nearly-new cars in an active market saw average prices rise for the fi rst time since
Sponsored by
August,” said Tony Gannon, BCA’s communications director.
“However, average values in the bigger volume fl eet and part-exchange sectors continued to decline towards the end of the year, although this was arrested and reversed early in 2010.
According to BCA’s Pulse report part-exchange values remained
stable in the fi nal quarter of the year – at around £2,600. Supply remained limited and demand for budget vehicles remained strong. It also pointed out that the slow new car market meant a continuing shortage of part-exchange cars.
Meanwhile at Manheim overall average values fell in Q4 by 4.1 per cent (£298) to £6,875. Signifi cantly
Sour
ce: A
ll da
ta s
uppl
ied
by E
xper
ian
DEALS ON WHEELS: Used stock was in heavy demand in the trade throughout 2009
USED MARKET: Q4 sales44
www.motortrader.comAPRIL2010
Top 10 sales by segment Q4 2009SUV Units
1 LAND ROVER FREELANDER 11095
2 LAND ROVER DISCOVERY 9704
3 HONDA CR-V 4863
4 LAND ROVER RANGE ROVER 4710
5 TOYOTA RAV4 4701
6 BMW X5 3695
7 MITSUBISHI SHOGUN 3214
8 VAUXHALL FRONTERA 2711
9 MERCEDES-BENZ M CLASS 2609
10 SUZUKI GRAND VITARA 2592
MPV Units
1 VAUXHALL ZAFIRA 15733
2 RENAULT SCENIC 13616
3 FORD GALAXY 5680
4 VOLKSWAGEN SHARAN 2205
5 VOLKSWAGEN TOURAN 1982
6 RENAULT ESPACE 1857
7 RENAULT GRAND SCENIC 1829
8 KIA SEDONA 1498
9 FORD S-MAX 1361
10 TOYOTA COROLLA VERSO 1335
EXECUTIVE Units
1 MERCEDES-BENZ C CLASS 14582
2 BMW 5 SERIES 11919
3 MERCEDES-BENZ E CLASS 7795
4 AUDI A6 5614
5 VOLVO V70 3551
6 VAUXHALL OMEGA 3163
7 MERCEDES-BENZ CLK CLASS 3047
8 JAGUAR S-TYPE 2497
9 SAAB 9-5 2424
10 VOLVO 850 1322
MINI Units
1 DAEWOO MATIZ 3258
2 FIAT SEICENTO 2372
3 SMART FORTWO 2189
4 VAUXHALL AGILA 1876
5 ROVER MINI 1486
6 AUSTIN MINI 1471
7 SUZUKI ALTO 1414
8 FIAT CINQUECENTO 1243
9 SUZUKI WAGON R+ 1181
10 CHEVROLET MATIZ 946
LOWER MEDIUM Units
1 VAUXHALL ASTRA 60570
2 FORD FOCUS 54067
3 VOLKSWAGEN GOLF 45392
4 HONDA CIVIC 20027
5 RENAULT MEGANE 19274
6 FORD ESCORT 17840
7 PEUGEOT 306 16626
8 PEUGEOT 307 13530
9 AUDI A3 10959
10 ROVER 200 9481
SUPERMINI Units
1 FORD FIESTA 65137
2 VAUXHALL CORSA 64939
3 RENAULT CLIO 38379
4 PEUGEOT 206 28359
5 FIAT PUNTO 25578
6 VOLKSWAGEN POLO 25395
7 FORD KA 24979
8 NISSAN MICRA 23596
9 PEUGEOT 106 14770
10 CITROEN SAXO 14236
LUXURY Units
1 BMW 7 SERIES 1749
2 MERCEDES-BENZ S CLASS 1383
3 JAGUAR XJ6 970
4 JAGUAR XJ 906
5 AUDI A8 714
6 MERCEDES-BENZ SL CLASS 649
7 JAGUAR XJ8 513
8 BENTLEY CONTINENTAL 507
9 JAGUAR SOVEREIGN 449
10 MERCEDES-BENZ CL CLASS 273
UPPER MEDIUM Units
1 BMW 3 SERIES 48599
2 FORD MONDEO 47804
3 VAUXHALL VECTRA 44922
4 VOLKSWAGEN PASSAT 20204
5 RENAULT LAGUNA 15499
6 PEUGEOT 406 11810
7 TOYOTA AVENSIS 10794
8 NISSAN PRIMERA 8347
9 HONDA ACCORD 8098
10 ROVER 75 5221
though this was still 34.7 per cent higher than 12 months previously.
Dealer part-exchange values settled down during Q4 averaging £2,253 having peaked in September at £2,413, a good rally from the year low in January of just £1,654.
Fleet values also picked up over the course of the year, starting in January at £5,106, fi nishing in December at £6,249 and peaking in August at £6,681.
“Although demand remained
healthy throughout most of Q4 2009, average wholesale values did fall during October and December in line with seasonal trends but stabilised in November,” said Mike Pilkington, managing director of Manheim Remarketing.
“In October, anticipating the seasonal downturn, vendors were advised to be realistic about price expectations and to invest in vehicle preparation to present vehicles to buyers in the best
Take note
PEOPLE
Our people are acclaimed for their unparalleledconsultancy and support.
FOR FURTHER INFORMATION CALL:Mike Macaulay, National Sales & Development Manager: 0871 384 3507 or email: [email protected] register interest: www.autoprotect.net/motortrader
Sour
ce: A
ll da
ta s
uppl
ied
by E
xper
ian
possible condition. “During November, despite
falling retail demand, wholesale purchasing activity was vigorous as some dealers anticipated rising values and stock shortages in the new year. Meanwhile December seasonal falls
were offset to some extent by an increase in the values of 4x4s as dealers stocked up in anticipation of the expected demand in January,” he said.
Pilkington remains reasonably optimistic about trends for the rest of 2010 with the used sector starting in a much stronger position than it did in 2009.
“I do expect both prices and demand to remain robust but to be constrained in line with seasonal trends,” he said.
Auction values spent much of 2009 recovering from the falls seen in 2008
45
www.motortrader.com APRIL2010
Top 10 used sales by region Q4 2009GREATER LONDON
1 BMW 3 SERIES 6130
2 VOLKSWAGEN GOLF 5947
3 VAUXHALL ASTRA 5075
4 FORD FOCUS 4872
5 FORD FIESTA 4602
6 VAUXHALL CORSA 4409
7 VOLKSWAGEN POLO 3801
8 NISSAN MICRA 3344
9 MERCEDES-BENZ C CLASS 3155
10 RENAULT CLIO 2774
SCOTLAND
1 VAUXHALL CORSA 6363
2 VAUXHALL ASTRA 5855
3 FORD FIESTA 4413
4 FORD FOCUS 4021
5 VAUXHALL VECTRA 3423
6 VOLKSWAGEN GOLF 3266
7 RENAULT CLIO 3210
8 BMW 3 SERIES 3031
9 FORD MONDEO 2596
10 VOLKSWAGEN POLO 2154
BIRMINGHAM
1 FORD FIESTA 1202
2 VAUXHALL ASTRA 1018
3 VAUXHALL CORSA 996
4 FORD FOCUS 891
5 BMW 3 SERIES 706
6 FORD MONDEO 667
7 VOLKSWAGEN GOLF 656
8 NISSAN MICRA 615
9 VAUXHALL VECTRA 611
10 RENAULT CLIO 565
NORTHERN IRELAND
1 RENAULT CLIO 524
2 VAUXHALL CORSA 463
3 VAUXHALL ASTRA 423
4 BMW 3 SERIES 398
5 FORD FIESTA 366
6 FORD FOCUS 349
7 VOLKSWAGEN GOLF 340
8 RENAULT MEGANE 298
9 VAUXHALL VECTRA 284
10 PEUGEOT 206 278
ENGLAND
1 FORD FIESTA 56165
2 VAUXHALL CORSA 54618
3 VAUXHALL ASTRA 51118
4 FORD FOCUS 47207
5 VOLKSWAGEN GOLF 39875
6 BMW 3 SERIES 36123
7 FORD MONDEO 33261
8 RENAULT CLIO 32532
9 VAUXHALL VECTRA 28234
10 PEUGEOT 206 24829
WALES
1 FORD FIESTA 4559
2 VAUXHALL CORSA 3958
3 VAUXHALL ASTRA 3594
4 FORD FOCUS 2839
5 RENAULT CLIO 2636
6 VOLKSWAGEN GOLF 2251
7 BMW 3 SERIES 1915
8 FORD MONDEO 1830
9 FORD KA 1818
10 VAUXHALL VECTRA 1709
he fi rst quarter of 2010 has seen a continuation of the lower margins on new car sales due to the impact of the
government scrappage scheme and this has led to dealers focussing on used car sales, incremental income streams and customer retention programmes.
Feedback from AutoProtect’s dealer network is that it is still diffi cult to source the “right vehicles for the right price”. This is impacting on the level of stock of used vehicles held by dealerships but both the stock turn and profi tability on used vehicles remains very good.
The end of scrappage is causing some uncertainty in the market with both manufacturers and dealers seeking ways of maintaining the footfall in dealerships through innovative advertising campaigns and customer propostions.
AutoProtect has seen a signifi cant increase in enquiries from both the franchised and non franchised dealerships requesting incremental income products and assistance in implementing the sale of these products into the dealership sales process
One thing that is certain for the rest of 2010 is that all dealerships are working towards ensuring that all incremental profi t streams are maximised
For more information on how AutoProtect can help you call Mike Macaulay on 0871 384 3507
Incremental income streams need attention
Mike MacaulayNational Sales & Development Manager,AutoProtect
SPONSOR’SCOMMENT
Take note
PROFITS
Our products, processes and people can help youmaximise your businesspotential and profits.
Mike Macaulay, National Sales & Development Manager: 0871 384 3507 or email: [email protected] register interest: www.autoprotect.net/motortrader
FOR FURTHER INFORMATION CALL:
T
Sour
ce: A
ll da
ta s
uppl
ied
by E
xper
ian
Sponsored by
original management team, said: “Members of the Edwards family decided to sell up when the owner retired and Ford also asked us to take over dealerships in Taunton, Bridgwater and Yeovil that had gone into receivership. So we became a fi ve-outlet business that we owned ourselves in one day.”
Yoxon described the backing from Ford as “a massive vote of confi dence from the UK’s leading car franchise”.
Foray bought two dealerships in Poole and Dorchester from Pendragon, formerly the UK’s biggest Ford dealer, in 2008, so now operates eight sales points for the brand as well as a servicing and parts centre in Chard and a standalone Rapid Fit centre in Taunton.
Vans are also an important part of the business with Foray running dedicated LCV centres in Salisbury, Poole and Yeovil.
Yoxon is open to continued expansion if the opportunities arise and said the business has good
The Insurer is MAPFRE ASISTENCIA Compañia Internacional de Seguros y Reaseguros Sociedad Anónima (”MAPFRE”). The administrator is ABRAXAS
Call 0845 1368430, Email info@mapfreabraxa
Wherever and when
Providing the missin
DEALER INSIGHT: Foray Motor Group46
www.motortrader.com
James Dallas
The Salisbury-based Foray Motor Group celebrated its 10th anniversary this year by snapping up
another Ford dealership to add to its network of blue oval sites stretching across the south west of England.
The latest addition is Hine Motors in Shaftesbury. It has become the ninth outlet for a group that has grown briskly over the last decade and shown little inclination to interrupt its expansion plans during the recession.
Foray was established in 2000 as the result of a management buyout
of the family-run Edwards Ford in Salisbury, which also operated a Ford dealership in nearby Andover. At the same time the manufacturer persuaded the fl edgling business to breathe new life into three other under-performing sites in the region.
Managing director Chris Yoxon, who still leads the
Ten years
APRIL2010
stretching across the south west of England.
the result of a management buyout Managing director ChrisYoxon, who still leads the
Formed out of an MBO in 2000, Foray has benefi ted from a close relationship with Ford to build a strong business in the south west
ANDOVER FORD: One of nine blue oval dealerships in Foray Motor Group
after…
Insurance Administration Services Limited (which is a wholly owned subsidiary of MAPFRE) authorised and regulated by the Financial Services Authority.
as.com or visit www.mapfreassistance.co.uk
never you need us....
ng pieces in your business!
FACTFILEThe Foray Motor GroupEstablished: 2000
Franchise: Ford
Sites: Nine
Turnover: 2009 £91m
New sales 2009: 2,500
Used sales 2009: 1,500
Van sales: 1,600
Sponsored by
Working hardfor customers
Nancy RignallCommercial Director,MAPFRE ABRAXAS
SPONSOR’SCOMMENT
F
47
www.motortrader.com
support from its banker, RBS, which he claimed was willing to back Foray in further acquisitions.
“Growth can come in other ways, though,” Yoxon added. “There is plenty of opportunity to develop what we already have organically and we have already moved the Andover, Taunton and Yeovil dealerships to new, purpose-built sites.”
Whatever developments it makes, however, the group is likely to remain rooted in its south west heartland.
“We have created a good regional group and would like to stay where we are established as our management structure suits our current footprint,” Yoxon said.
“But you never say never in business and who knows what new opportunities will come our way?”
He said the dealerships in Salisbury, Andover and Dorchester, together with those serving Somerset, were ahead of what’s expected when judged against Ford’s national share but Yoxon admitted there was still “work to do” in Poole, which is the group‘s
biggest volume dealership.The group sold 2,500 new cars
last year, around 30 per cent ahead of 2008 and is aiming for a further rise in 2010 to 2,750.
Last year Foray also sold 1,600 vans and has targeted 25 per cent growth on this fi gure by the end of 2010.
The group is looking to grow used sales to about 1,750 this year from the
1,500 achieved in 2009, but the main focus is on the new market.
Yoxon said in the long term new sales feed the aftersales business and bring in repeat customers. Used car buyers, he suggested,
tend to be less loyal after purchase, buying service and parts elsewhere.
Parts, however, account for a signifi cant chunk of Foray’s business – contributing £16m of the £91m turnover achieved in 2009. The group runs a fl eet of 40 branded Foray parts vans.
Yoxon claimed the parts business was thriving, with international business driven by the group’s own website and additional sales achieved through eBay and Amazon.
He predicted growth in sales and aftersales would push turnover past £100m in 2010 and also boost profi t, which he claimed was “the best to date” in 2009.
As a volume brand franchise, Yoxon said Foray was committed to driving sales anyway and had not become dependent on scrappage to prop up the business.
“Scrappage was not something we relied on,” he said. “People are still buying cars.”
Retail business dominates Foray’s car division with 90 per cent of sales going to private buyers. The biggest seller is the Fiesta, accounting for about half of its new car volume.
“The Fiesta has always been strong for us and the latest model is bigger than the old one – and better, too. It’s more attractive and hit the market at the right time,” Yoxon said.
Foray’s partnership with the blue oval has proved a good fi t for both parties and looks set to prosper as it enters a second decade.
“This is a good and valuable franchise and Ford seem happy with us,” said Yoxon.
APRIL2010
CHRIS YOXON: “Plenty of opportunity to develop”
There are plenty of opportunities to grow organically
ord must be delighted with Foray Motor Group!
This group is making a continuing success of expanding the business and increasing sales volumes thus strengthening Ford’s market share and fi rmly stamping the blue oval on the south west.
It has a tried, tested and trusted management team who deliver the goods.
Ford’s amazing product range at the moment will certainly be helping all their franchised dealers but the competition is always fi erce.
Times have changed since I worked in the dealer network and now there isn’t really a bad car, so every dealer has to work hard for every customer. Is that a bad thing?
To fi nd out how MAPFRE ABRAXAS can help you maximise the impact of your sales team please call 0845 1368430 or log onto www.mapfreassistance.co.uk
TRAINING & RECRUITMENT: Management48
www.motortrader.comAPRIL2010
topDealer managers tend to be those organising training courses rather than attending them, but this could change thanks to an IMI initiative
Curtis Hutchinson
There’s no doubting that training in the motor trade has shifted up a gear in recent years with
manufacturers and dealers seeing the need for investment in courses for staff at all levels except, curiously, for managers.
For a sector where dealer bosses have to manage a myriad business tasks there cannot be many who rise through the sales ranks to senior roles fully formed with detailed knowledge of health and safety issues and the fi ner points of fi nancial reporting and employment law.
While the sector has consistently improved its professionalism over the past two decades, management training has been widely overlooked with dealership bosses expected to learn on the job.
This is about to change. From May the Institute of the Motor Industry (IMI) is launching a brand new training scheme for dealer managers under the Automotive Management Accreditation banner.
“A growing number of car
retailers are now beginning to address this widely overlooked area of staff training by extending training programmes to cover the management teams in charge of dealerships,” said Steve Scofi eld, IMI’s head of skills development.
Scofi eld admitted that dealer training has tended to focus on
Starting at the
ON COURSE: From May dealer managers will be offered the chance to upskill through training
re you ready for F-Gas Certifi cation? Owing to EU
legislation that will come into force in July 2010, certifi cation in the handling of refrigerants is required by everyone who works in this fi eld, including automotive technicians working with air conditioning systems.
This legislation builds on previous edicts within the European Fluorinated Gases Regulation, which are designed to help EU countries meet the Kyoto Protocol targets by reducing emissions of fl uorinated greenhouse gases, known as F-Gases.
From 4 July 2010 anyone working with Mobile Air Conditioning (MAC) is required to hold the DEFRA approved qualifi cation.
As with any new legislation, there is bound to be a rush for certifi cation in the weeks immediately leading up to the new regulations. Don’t be caught out and end up passing business to competitors because you don’t have the right paperwork. The training is offered by centres around the UK and learning providers such as VT Group are able to deliver training to your team on-site, cutting costs in travel, accommodation and lost man hours.
For more information contact Mark Bowles by email at [email protected] or visitwww.defra.gov.uk/
Are you ready for F-Gas certifi cation?
Gary DavenportVT Group, automotive operations manager
SPONSOR’SCOMMENT
A
Sponsored by
Budget boost for trainingTraining received a welcome boost in the March Budget with a 12 month extension of the government’s scheme which guarantees a job or training for participating 18 to 24 year olds who are out of work for six months.
The Young Person’s Guarantee scheme was due to run out next March but will now run until March 2012.
The extension was welcomed by Gary Davenport, VT Group’s automotive operations manager.
“We’re delighted as another year provides the opportunity for further specialist technician and apprenticeship training which will benefi t the automotive retailing sector,” he said.
Davenport said dealers would welcome the initiative as it will provide a bigger pool of skilled young talent to draw from.
technical and sales staff even though business managers are increasingly being encouraged to develop their management and leadership skills.
“Management and leadership support has been pretty poor in our sector in the past. While there are of course exceptions, overall, it’s not our strongest point. The motor industry needs good leaders and people who can manage others effectively,” he said.
As the fi rst training accreditation scheme for managers in the car retailing sector the IMI’s AMA syllabus will effectively set a much needed benchmark for management training and could prove to be a popular option for those wanting to fast track their managerial career with clear benefi ts for both individuals and businesses.
TM
Disposal Network
01676 571 001call today to register
Join 1link Disposal Network and you’ll get access to a wide range of used vehicles and the ability to deal directly with the UK’s leading fleets.1link Disposal Network is a trade-only online platform with a powerful set of features. All you need is a PC and an internet connection to get immediate access.
- Search and buy from a wide variety of vehicles, view service histories and up-to-date inspection reports
- Easily create alerts that let you know when a vehicle you need becomes available
- Easy to use and no expensive software to buy - Cut out the middle-man, deal directly with fleet
and leasing companies
REMEMBER WHEN YOU THOUGHT ANYTHING WAS POSSIBLE?well, sourcing used car stock directly from fleet and leasing companies is
MOTOR TRADERINDUSTRY AWARDS 2010
CALL FOR ENTRIES
The search is on for the next Motor Trader stars
Deadline for entries extended to 19 April. Visit www.motortraderawards.com
to download your entry form
14 JULY Grosvenor House Hotel
2002 thth Annivvere saaryry MMototoror Tradeed r r AwAwarards
MotorsPro
FOCUS: Dealer systems 51
www.motortrader.com APRIL2010
Goguides service advisers and technicians through the multi-point inspection process and explains to customers the work carried out and what may be required.
Kalamazoo’s Reynolds Vehicle Report Card (VRC), for example, works within the Power dealer management system. It automatically decides, based on the vehicle type, the appropriate card to present on screen.
The VRC helps service advisers through the explanation and up-selling process using the colour signals for “Checked and OK” “Attention Recommended” and Attention Required”.
Once work is approved it is automatically keyed into the job card adding parts and labour and notifying parts department to have the items ready. VRC’s automated follow-ups for work recommended but not done prompts staff to
All systems
Customer care and dealer management systems go hand in hand to help retailers improve effi ciency and boost profi tability
QUICKREAD Inchcape performance
is boosted by customer management programme
Vehicle health checks are increasingly important for up-selling
Dealer operations are becoming more integrated with carmakers systems
Dealers are sharing training costs associated with dealer management systems
John Kirwan
As the UK emerges from recession it is clear that dealers who have good systems in
place are reaping the benefi t. Inchcape, the UK’s second
largest dealer group, turned in a positive performance in 2009 and said it had benefi ted from its global customer management programme, Inchcape Advantage.
The company now interviews 12,000 customers every month, tracks footfall, test drives, leads and conversions and uses a global portal, Inchcapedia, to integrate the data and share best practice across the group.
Inchcape group communications director Ken Lee told Motor Trader: “It really has strengthened our position this year. It means we are very close to what is going on in the marketplace.
“We have real funnel management in place that gives us a signifi cant competitive edge.
overall control. According to
Ken Trinder, Epyx head of business development, the system makes for more effi cient use of resources.
“Having used car stock buyers travelling the country to
auctions and other sales, buying a few cars or vans at each location, is not always an effi cient way of getting used car stock,” he said.
Vehicle healthFor many dealerships the Vehicle Health Check form is an established part of the service department’s daily duties and a key part of the up-selling process.
It shows the customer items and areas checked by the technician,
It also means we are able to get some insight on what is happening in the market.”
Buying toolAmong those fi rms aiming to boost dealers’ performance is Epyx, which has launched a centralised used car and van stock buying tool, Group View.
This allows used car and van stock buyers at different locations within a dealer group to provisionally buy vehicles for sale on Epyx’s 1link Disposal Network e-commerce platform. The platform is used by major fl eets to sell ex-leased company cars and vans.
These purchases are then passed to the nominated central used car buying manager within the dealer group by Group View for approval before the transaction is completed, thus providing more
TECHNOLOGY BONUS: DMS can improve dealer effi ciencies
Vehicle health checks are an important source of profi t for workshops
FOCUS: Dealer systems52
www.motortrader.comAPRIL2010
of ensuring that all potential profi t opportunities are explored as effectively and effi ciently as possible.”
Pinewood has completed several integration programmes during the last year or so – earlier this year with General Motors for its Vauxhall and Saab dealers – and more recently with Renault and Volvo for their networks.
“When it comes to showing a dealer how adopting a new DMS system can deliver immediate results, integration is one of
the benefi ts that can be easily explained and proven.”
Vehicle health checks (VHCs) have been a key tool for many dealer groups during the recession.
Dealer group Pebley Beach, which holds Suzuki and Hyundai franchises in Cirencester and Swindon, is using a new VHC tool recently added to Pinewood’s Pinnacle dealer management system.
Dominic Threlfall, managing director at Pebley Beach said “If a bay is empty, we can look at
re-contact the customer and ensure the work is not lost to your dealership.
According to Kalamazoo the VRC eliminates much of the duplication of work found with stand alone products.
Closer integrationAccording to Pinewood managing director Neville Briggs, closer integration between motor manufacturer and franchise dealer IT is becoming the number one factor in dealer management systems. Carmakers and dealers are looking to pull their IT closer together in order to maximise effi ciency and profi t opportunities in tough conditions.
Briggs said: “The current state of the economy means that manufacturers and their franchise dealers are looking to work together ever more closely.
“Because trading conditions are so tough, dealers are keen to align themselves as closely as possible with manufacturers. It is a question
Pinnacle and identify types of work that will fi ll that particular bay, such as tyres or air con, making the most of our resources.
Pinnacle allows for analysis of how VHCs are being used across the business with accurate reporting.
Dominic said: “Previously, all our VHC analysis had to be done by hand but now it takes place within the DMS automatically.
“We can spot, for example, technicians or service receptionists who are not promoting VHC-identifi ed work as robustly as we would like and provide appropriate training where needed.
“This is not a bolt-on but something that is now very much built into our day-to-day approach to running the business.”
The Pinnacle VHC allows technicians to gather information about each vehicle reviewed in the workshop either on paper or direct on a workstation into the DMS. For further enhanced functionality and ease of use, Pinewood offers
INTEGRATION: There are now closer IT linksbetween carmakers and franchised dealers
FOCUS: Dealer systems 53
www.motortrader.com APRIL2010
optional integration via an iPod Touch.
Dealer softwareFinally MB&G is launching Motor Dealer Software in April, which aims to streamline offi ce admin across a dealership’s sales, service and parts departments, as well as handling VAT returns and general reporting.
Features include unlimited user licences, VRM and postcode fi nder, advertising module, SMS text messaging, telephone support, new version updates, maintenance and remote access. Additional features include CAP/Glass valuations and downloadable repair/schedule times. MB&G operations director Kevin Pearce said: “Our new software is a low cost, easy tool that dealers can use to effi ciently reduce their day to day admin. That enables them to concentrate on selling and servicing vehicles and ensuring their dealership remains as profi table as possible.”
Case study: Birchwood and Dinnages
Two dealer groups in the South East have pooled their resources to cut the cost of adopting a new dealer management system.
Birchwood Ford and Kia, operating from fi ve locations in Bexhill, Eastbourne, Halland and Hastings, and Dinnages, with Ford and Renault sites in Haywards Heath, Burgess Hill and Worthing, have both bought Pinewood’s Pinnacle DMS.
Pete Parker, operations director at Birchwood Ford, said: “Because Pinnacle is charged on a pay-on-use basis, the largest cost of adopting the system is training. Thanks to the fact that Dinnages are geographically near to us and operate a similar business, we have been able to organise joint training sessions for all our staff and will split the cost accordingly.”
Adam Broyd, fi nancial director at Dinnages, said: “We believe Pinnacle will help us make key operational gains across our dealerships while, clearly, working with Birchwood on the training front to reduce the cost of adopting the DMS makes sense.”
Neville Briggs, managing director at Pinewood, said: “This is the fi rst time we can remember having two dealer groups, which are effectively competitors, training together under one roof in this way but given the circumstances it makes sense for all parties.”
h Birchwood on the training front tog the
an ler ely her
es it”
BRIGGS: “Rival groups training
together makes sense”
FAVOURITES WINNERS
The new Black Horse website is now live and offers you the chance to win a Team Building Track Day of your choice for your dealership by playing our online game.
Play online to win at http://blackhorse.d8digital.com
www.blackhorse.co.uk/motorVisit our new website at
FOCUS: Finance & Insurance 55
www.motortrader.com APRIL2010
perception
of time researching the car and the specifi cation they want, when it comes to sourcing fi nance they often do not fi nd out what the dealer has to offer.
Carlyle tries to get around this problem by offering dealers an online tool. It supplies www.carloanadviser.co.uk, which guides buyer towards the POS option.
Having researched the market, Trend Tracker has a few focused ideas on how dealers can grow their fi nance business.
It said the key areas to target are new car buyers aged 35-54 and younger purchasers of used cars who usually go to direct lenders. It also advised dealers to pay particular attention to the 25-44 age group who are a principal market for personal loans from direct lenders.
See the F&I Directory which starts on page 56.
A question of
John Kirwan
Dealer point of sale (POS) fi nance is perceived as too expensive compared
to direct lenders and it needn’t be the case.
That’s one of the conclusions of The Trend Tracker UK Retail Car Finance Report 2009. It also found that the very low APRs being promoted by direct lenders are not in fact offered in the end deal. But the very effectiveness of the direct lenders’ promotions is such that dealers did not even try to compete.
The report argued that POS fi nance is also not made available early enough in the buying process and a “signifi cant” proportion of car buyers are not offered POS fi nance at all by dealers.
That said, there are clear chances opening up for dealers in the downturn with risk-averse direct lenders loathe to lend money.
Black Horse managing director Chris Sutton believes there are opportunities for dealers in the current tough market and that POS fi nance continues to be an attractive proposition for the customer.
“The road leading us out of recession will be long and bumpy, and there are potentially a number of challenges for the industry this year.
“The threat of increasing unemployment, VAT increasing as far as perhaps 20 per cent, the inevitable rise of interest rates at some point and the end of the scrappage scheme. All place even greater pressures on dealers and consumers.”
Black Horse said it had the edge over high street offerings in that
new and used cars. “In both face to face contact
and marketing, especially on-line, dealers must confi dently provide high quality loan advice to ensure would-be buyers know that they can fi nance a car in the showroom, helping buyers to make the leap from browsing to buying.”
Carlyle said that with the scrappage scheme ending, the need to entice buyers into the showroom is even more important and demonstrating that a dealer can help a customer buy a car on fi nance at an affordable price is set to be a vital part of the required approach. According to Carlyle the best car loans are no longer just about interest rates. While it acknowledges that interest rates are important, it said acceptance rates are also important, too.
“The reality is that dealer fi nance has a strong track record in gaining higher acceptance levels than unsecured personal loans,” it said.One big task for dealers is to get to the customers in the fi rst place.
Although customers spend a lot
it can offer a fast turnaround to dealers from proposal through to payment. The company has changed the way it does business and is now more committed to face-to-face relationships.
“These market leading systems help dealers manage their cash fl ow, by enabling them to get a loan approved and have the money in their bank within the same day. You simply won’t fi nd a service like that from a high street provider,” said Sutton
Dealers can also boost business using POS materials and branding for advertisements by joining its Approved Dealer Programme.
According to Carlyle Finance, POS fi nance continues to be a popular option for customers because it offers competitive rates and high acceptance rates.
Karl Werner, Carlyle Finance’s head of sales and marketing, said to grow business dealers needed highly visible POS.
“Dealers of all sizes must ensure that fi nance has an increased prominence to help create sales for
POS fi nance is not made available early enough
Dealers can grab more fi nance business if they promote their offer at every opportunity
FACE LOOK: Point of sale can be a powerful dealership tool
Sponsored by
Sponsored by
MOTORTRADER Finance & Insurance Directory56
www.motortrader.comAPRIL2010
AMS Insurance Services Contact: Richard HubbardEmail: [email protected] Telephone: 01869 238250 Web: www.ams-gap.com
AMS Insurance Services has supplied car, van, motorcycle and scooter GAP Insurance to dealer groups for over 15 years. Delivering exceptional products, innovation and pricing with the reassurance you are in partnership with a company who understand the importance of quality of service, maximising margins and delivering exactly what they promise. These values now extend to the exclusive Easydrive® range of MoT, Tyre, Key, Service plan and Warranty products.
Barclays Partner FinanceContact: Andrew BrameldTelephone: 07860 141745 Email: abrameld@barclayspartnerfi nance.com Web: www.barclayspartnerfi nance.com
Barclays Commercial Bank Motor Retail Team provides a range of fi nancial services to the motor sector. It aims to provide innovative solutions for funding, transactional banking and risk management needs throughout the economic cycle. Specifi c products include working capital fi nance, property fi nance, dealership development/asset fi nance, stock funding, cash management and card services, retail paper, investment services and acquisition fi nance.
Barclays Corporate Motor Retail TeamContact: Keith Parry Telephone: 07775 543742Email: [email protected]
Barclays Corporate Motor Retail Team provides arange of fi nancial services to the motor sector across the UK. Focusing specifi cally on the needs of this dynamic and developing industry, it aims to provide innovative solutions for funding, transactional banking and risk management needs throughout the economic cycle. Specifi c products include working capital fi nance, property fi nance, dealership development/asset fi nance, stock funding, cash management and card services, retail paper, investment services and acquisition fi nance.
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
0845 6076775www.northridgefinance.com
With diminishing numbers of prime finance providers, it’s never been more important to
select the right one. Choose the finance partner…
At Northridge, we believe choice is a good thing. Make the right one. Choose Northridge
diminishing numbers of prime finance
Why take a chance?
Sponsored by
57
www.motortrader.com APRIL2010
Black HorseContact: Mike McPartlinTelephone: 02921 386338 Email: [email protected] Web: www.blackhorse.co.uk
Autoloan, LetsUConnect, eSigs, equips, Q-points, GAP, Warranty and the Approved Dealer Programme. This is a sample of just some of the products and services Black Horse provides dealers to help you maximise and manage your F&I performance. It also ensures your customers can arrange fi nance quickly, easily and conveniently, ensuring they enjoy a great experience. For more information on all our retail, wholesale and marketing facilities please call Mike McPartlin.
Mann Island FinanceContact: John HughesTelephone: 07776 166 111 Email: [email protected]: www.mannisland.co.uk
MIF is a dedicated provider of showroom fi nance. They operate throughout mainland UK, with one of the largest and most experienced teams of development managers. MIF offer an ‘unrivalled’ diversity of fi nancial products to meet the needs of the showroom sales environment. Whether it’s PCP on used cars, leasing, contract hire or a negative equity solution, MIF can give you access to it. Never has the need for a range of products at competitive prices and commissions been more necessary.
Carlyle Finance Contact: Karl Werner Telephone: 0844 770 4438Email: info@carlylefi nance.comWeb: www.carlylefi nance.com
Carlyle Finance is the UK’s leading independent fi nance company totally dedicated to dealer fi nance. Combining in-depth experience, great technology and innovative, energetic people, Carlyle fi nance has grown by over 60% in the last year by working in real partnership with dealers of all sizes right across the UK. Committed to further growth in the years ahead, Carlyle has demonstrated that it has the resources and approach to help make a real difference to the motor retail market.
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
For the best cover,find a broker whocan work on everypart of your business. At Aviva we offer a wide range of business insurance to suit your specificneeds. Simply ask your broker about how to arrange the cover that’s just rightfor your business. To find a broker visitaviva.co.uk/motortrade.
We’re in business to keep you in business.
Sponsored by MOTORTRADER Finance & Insurance Directory
MOTORTRADER Finance & Insurance Directory58
www.motortrader.comAPRIL2010
NiiB FinanceContact: see contact section of websiteTelephone: 0845 6076775 Email: [email protected] Web: www.niibfi nance.com
NiiB Finance is part of Bank of Ireland’s UK Consumer Division. It provides consumer asset facilities throughout Northern Ireland, specialising in the prime market.
The majority of its business is sourced through franchise motor dealers and quality used dealer relationships. It’s Head Offi ce is based in Bangor, Co. Down and they have motor fi eld coverage of 6 Territory Managers, all of which have extensive industry knowledge and remain focused on quality service to the dealer.
SMART Insurance Services Contact: Kim or Leanne Telephone: 01132 515747Email: [email protected]: www.smartinsurance.uk.comAddress: 1200 Century Way, Thorpe Business Park, Colton, Leed DS LS15 8ZA
With a highly regarded pedigree, SMART Insurance Services offer an Award winning insurance product to a customer which helps to maintain a car in showroom condition, whilst protecting it’s residual value.
A proven new F and I profi t centre. Benefi ts include: Simple policy features, acknowledged customer value, FSA compliancy, quick to launch, dedicated Account Management, Training and MI.
Quality of repair is paramount and is delivered by a network of approved mobile repair specialists.
Northridge FinanceContact: see contact section of websiteTelephone: 0845 6076775Email: [email protected] Web: www.northridgefi nance.com
Northridge Finance is part of Bank of Ireland’s UK Consumer Division. It provides consumer asset facilities throughout Great Britain, specialising in the prime market via quality intermediaries.
The majority of its business is sourced through franchise motor dealers. Operating as Northridge since 1999, it has national geographical coverage provided by Territory Managers, all of which have extensive industry knowledge and remain focused on quality service to the dealer.
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
PCP fi nance
Hire purchase
Personal loan
Sub prime fi nance
Prime fi nance
GAP insurance
PPI
F&I sales training
Important AnnouncementAMS Introduce
Free 30 Day GAP InsuranceYou have done it with car insurance so why not with GAP?
Busy in March? Smart AMS dealers gave every customer who didn't purchase a long term GAP policy with their new car a
FREE 30 Day Full Cover GAP Policy.
Why?Because AMS follow up those customers at 14, 28 and 31 days after the policy started, making sure the customer
really has had EVERY chance to buy probably the best GAP Insurance product on the market!
Increase Your GAP Sales By 10% +.....without any extra effort or expense!
An additional 10% more customers decided to buy a GAP policy post the car sale, providing substantial additional income for our dealers.
If you are in any doubt that EVERY customer who visited one of your dealerships was given EVERY opportunity to buya GAP Insurance policy at all contact me NOW!
Richard HubbardSales & Marketing DirectorAMS Insurance Services Ltd.
An AMS Group Company.email: [email protected] TEL 01869 238250
website: www.ams-gap.com
....simply the best since 1992
BB sususyyy in inyy
Sponsored by
READER OFFER: Motor Trader web tool 59
www.motortrader.com APRIL2010
Smart content This month Motor Trader launches its new CAR COMPARATOR web tool, which is now available to readers to run on their websites at a special 20 per cent discount
Curtis Hutchinson
Motor Trader’s new Car Comparator web tool gives you, your staff
and your customers accurate key facts to compare performance, equipment, running costs and prices of every mainstream model on sale in the UK; that’s over 3,500 cars and 300,000 pieces of information, across 80 data categories.
We believe this tool, powered by automotive data specialist DrivenData.co.uk, is a fi rst for UK dealers as it provides all the essential vehicle data, including retail prices, that customers need when considering a new car purchase. At the moment this information is only available from third party websites and is rarely in one place which means a potential customer visiting your site will need to go elsewhere to fi nd it.
The Car Comparator sits on your website as an i-Frame to allow customers to research the
The fastest and most accurate way to compare every new car on sale in the UK
vehicle of their choice, see how it compares with its competitors, and stay on your site while they do it. In short it provides you with a fast and accurate way to compare every new car on sale in the UK and will be invaluable to customers and your showroom sales team.
To give you a clear idea of what the Car Comparator looks like and what it does, just visit our website www.motortrader.com and test drive it at our brand new Price News section. Here
you can see the complete comparator and how it will appear on your website, which you can tailor to include your company’s logo.
Also within the Price News section we will trawl through and report on
weekly changes in new car prices and specifi cations. This will enable you to keep abreast of what’s happening in the franchises you represent and give you the latest intelligence on any changes in competitor brands.
With sticky content the watchword for effective and customer-friendly car retailing sites the Car Comparator will prove to be a cost effective tool. It will help keep customers on your site and provide them with free access to the data they need to make an informed purchasing decision.
To sign up for an annual subscription to the Car Comparator simply email Daniel Stas at DrivenData at [email protected], or call him on 01483 546 500, and quote the code: MT101.
The special rate for Motor Trader readers, which represents a 20 per cent discount, is £40 + VAT per month. (Normal price £49.99 + VAT per month).
STICKY CONTENT: The Car Comparator provides accurate data on new car prices and specifi cations
Price: £12,499
Doors: 5
CO2 Emissions: 116g/km
Fuel: Diesel
Consumption: 48.4mpg
Engine Size: 1798cc
CAR COMPARATOR At a glanceMotor Trader’s brand newCar Comparator is a powerful web tool that:
Seamlessly integrates into your website and is branded with your own logo
Answers customer queries with accuracy, confi dence and speed
Creates valid vehicle comparisons and displays alternative model choices
Is hassle free – the data and images are hosted, maintained and updated on secure servers by DrivenData.co.uk
VIEW NOW
DEALER OFFER 20% OFF
1 What was your fi rst job?I have always worked in the motor industry so it was as an apprentice vehicle technician within the Martin Group in Billingham.
2 What was your fi rst car?My fi rst car was a red Mini with a black roof.
3 What car are you driving at the moment?I drive a variety of Peugeot vehicles to ensure I am always up to date on developments. At the moment I am driving the wonderful Peugeot 308CC GT100
4 Favourite website, newspaper, TV programme, music, fi lm and book?My favourite website is www.harley-davidson.com; newspaper, The Times: TV programme, Dragon’s Den; music, Amy Winehouse, Jim Reeves, Leonard Cohen. For fi lm it is Shawshank Redemption. I am a big fan of the Shardlake series by CJ Sansom. My favourite is Winter in Madrid.
5 Favourite holiday destination? I like long haul holidays and Hong Kong was a favourite short break but I also love Mauritius
6 Which gadget can you not live without?The TV remote control when I get a chance to sit down and watch TV!
7 Best and worst aspects of your job?The best: running a successful team, pleasing my customers and succeeding in business. The worst: it’s not so much a worst aspect but a frustration, the image of the car industry and the current economy is a challenge. Also the speed of change in the motor industry and the apparent game of chess that the global car manufacturers seem to be playing at the moment frustrates me.
8 Best and worst business decisions?The best: buying the business. The worst: not doing it sooner
9 Which individual do you most admire?William Hague one of the most misunderstood politicians in modern politics.
10 When will the market pick up?I believe the third quarter of 2010. We won’t see a rapid growth because consumer confi dence needs to drift back before we see an upturn in the industry.
Simon Bailes is managing director of Simon Bailes Peugeot, which has branches in Northallerton, Guisborough and Stockton-on-Tees.
ARNOLD Clark continues to be the most visited website in automotive dealerships on the web.
The Scottish dealer group, ranked number three in the Motor Trader Top 200, with a turnover of £2.2bn, took 4.43 per cent of dealership web traffi c, according to data from Experian/Hitwise.
Motorpoint was in second slot with a 3.28 per cent market share followed by internet supermarket Autoquake with a 3.11 per cent
APRIL28 Motor Trader & ASE Financial Conference 2010, Hellidon Lakes Hotel, Northamptonshire. Speakers include Trevor Jones, director Panmure Gordon & Co Mike Allen, CDP trainer at ASE Bruce Cowie, tax director with ASE Paul Brown and John O Hanlon of Ridgeway Motor Group. Tel: 0161 493 1930 or email: [email protected]
MAY30 2010 Castrol Professional 5s Walkers Stadium, LeicesterSee page 40 for full details on how to enter.www.castrol5s.co.uk
JULY
14 Motor Trader Motor Industry Awards 2010, Grosvenor House Hotel,Park Lane, London W1 Tel 020 8253 8717
19-25 Hit the Beach for BEN, National BEN Week Events Tel: 01344 294755 www.ben.org.uk/events
OCTOBER21 RMI Annual Dinner, Dorchester. Tel: 020 580 9122
NOVEMBER23 SMMT Annual Dinner, London, Hilton, W1. Tel: 020 725 3000
DECEMBER8 BEN Ball, Grosvenor House Hotel London Tel: 01344 294755 www.ben.org.uk/events
LABOUR strikes were the centre of attention in Motor Trader, 6 March, 1963 with BMC subsidiary Fisher & Ludlow under pressure because of a strike by 140 internal transport drivers.
At Dunlop (Coventry) two shop stewards were dismissed and 500 workers struck. The factory made suspension units for the Mini range and the Morris 1100.
And at Vauxhall (Luton) there was a short stoppage of one hour by nearly 1,000 workers in protest at pay, holidays and hours
These stoppages contain the danger of snowballing into bigger lay off troubles at main works, it was reported.
Elsewhere in the issue Motor
Arnold Clark istop dealer site
Rank Website Market share %
1 Arnold Clark 4.43
2 Motorpoint 3.28
3 AutoQuake 3.11
4 Evans Halshaw 2.70
5 Perrys 2.57
6 AutoExposure 2.45
7 Cargiant 2.13
8 Motorparks.co.uk 1.94
9 buyacar.co.uk 1.77
10 AvailableCar 1.71
DATES FOR YOUR DIARY
market share. Evans Halshaw, the volume car business for Pendragon the number one dealer group with a turnover of £4.2bn, was in fourth position with a 2.7 per cent market share followed by Perrys on 2.6 per cent.
The fi ve companies making up the remainder of the top 10 web traffi c listings were Autoexposure, supermarket Cargiant, Motorparks.co.uk, buyacar.co.uk and AvailableCar.
Trader also featured a Service Data Sheet for the Rover 3-litre Mk11 Saloon and Coupe, which was launched just prior to the Earls
Court Show in 1962.A garage proprietor
was fi ned £25 on three charges of fraud for charging for work not carried out.
Paget Automobiles (Cheam) received planning permission from Sutton & Cheam Council to build a single-storey car
showroom on part of the railway goods yard at Cheam railway station.
And the latest addition to the Triumph Herald was revealed. The soft top version to be known as the Triumph Herald 12/50 retailed for £643 18s 9d (including tax).
Motor Trader, 6 March, 1963
by 140 internal
e
r
ne0 k
CouA
wathrfrafoou
(CpfC
h
Source: Experian / Hitwise UK
MOTOR TRADERINDUSTRY AWARDS 2010
Tel 020 8253 8717
our fi rst job?
10 Questionsfor… Simon Bailes
LAST WORD60
www.motortrader.comAPRIL2010
61
www.motortrader.com APRIL2010
RECRUITMENT
CONTACT
Mike Traylen
T: 020 8253 8716
F: 020 8253 8727
Hartwell has recruited three new managers at its new Nissan and Citroën site in Scunthorpe. Paul Kellett (left) joined as general manager and promoted
ON THE MOVE
Gary Medden (right) to sales manager, while Ian Beckett (centre) replaces him as business manager having joined the business as a sales executive.
David Mills has been appointed as general manager of Harratts Volvo in Huddersfi eld. Harratts claims to be Volvo’s second biggest retailer in the UK. Mills continues in his
position of general manager of Harratts Mitsubishi in Darton. Shaun Harratt, managing director, said: “David is a gifted general manager with a proven track record in successfully overseeing and growing dealerships. He joins with a wealth of experience and expertise that will ensure we build on the dealership’s success.”
Steven Parsley has joined Renault Bolton and Nissan Bolton, as its new branch manager. He has over 18 years experience in the sector having
joined the Renault Retail Group in 1992 and joins from its Liverpool site where he was general sales manager. Michael Gilbert also joins the dual franchise site as aftersales manager, having previously been parts manager at
Renault Bolton.
g
d
th
ld on the
gexperienc
joiGrofrowhesalesGilbfrancmanabeen
PARSLEY: RRG Bolton
at its new
er
appomanVolvHarbe bigin coTRIO: Hartwell’s new team
WHITEHOUSEExperienced Car Sales Executives
This is an ideal opportunity for experienced Car Sales Executives to take their career onwards. The ideal candidates would already be working in a motor dealership environment or possess previous industry knowledge. You also need to be organised and be an articulate team player capable of converting enquiries into sales and delivering exceptional levels of customer service for this fast growing and forward thinking marque. In return, we offer an excellent salary and commission package.Please respond in writing to:
WHITEHOUSE BEXLEYHEATHTrevor Howard, Dealer Principal315-321 Broadway , Bexleyheath, DA6 8DTemail: [email protected] Telephone: 020 8304 8198
Sales Executives RequiredEnthusiastic Sales Executives required to join our busy Citroën dealership in Reading.
We offer potential target earnings of £40K+, industry leading training, a company car from the latest range and above all the opportunity to progress into a long and rewarding career.
For more information please contact [email protected] or call 07971 490245
62
www.motortrader.com
RECRUITMENT
CONTACT
Mike Traylen
T: 020 8253 8716
F: 020 8253 8727
APRIL2010
The Natural Choice in Automotive Recruitment
Recruiting Excellence in the Automotive Industry
“Looking for the next challenge – with the rewards to match”Aftersales Managers Required Major East Anglian Dealer GroupOTE: £60,000 +
Our Client – a major Dealer Group based in East Anglia is currently experiencing major growth and expansion following the development and opening of a state of the art multi-franchise location.
As part of their growth, our client has vacancies for ambitious Aftersales Managers looking to take their career to the next level.
You will have a dynamic personality with a passion for success and the leadership skills to match. Your ability to motivate a large Aftersales Team will be matched by your energy and desire to make things happen. Experience of managing a service and parts operation with a proven track record of growth are preferable requirements for the position.
The position would also suit applications from successful Service Managers, able to demonstrate similar qualities and success.
If you are confident you can meet the requirements, are looking for the next challenge in your career and want the financial benefits to match, please send your CV with covering letter to:
Kevin Curtis, John Gibson Associates, PO Box 908, Ipswich, Suffolk, IP1 9PR
Sales Manager This is an exciting opportunity for someone working for a premium brand and employer in a beautiful part of the UK.
We require an ambitious highly motivated individual to lead and manage our Toyota Sales team. The ideal applicant must be enthusiastic and proactive with a good eye for detail and a passion and energy for delivering the highest standards of customer service as well as superb business results.
You should also have excellent sales and people manage-ment skills and fully understand all aspects of Sales De-partment Processes, Stock Management and Finance and Insurance Sales. Experience of the motor retail industry and the desire to deliver uncompromised performance is essential in addition to effective communication skills at all levels.
We offer an attractive salary structure, company car and an exciting career opportunity for the ambitious. If you can achieve challenging obectives, are innovative, entrepre-neurial and can delight our customers you are the person we are looking for.
Please email CV to [email protected] Paul Doick, Operations Manager Marsh Toyota, Langage Business Park, Plympton Plymouth, Devon PL7 5JY
DEALER
PRINCIPAL
CAMBRIDGE
PORSCHE AND
ASTON MARTIN
OTE £100K
Motor Trade SelectionParkway House
London SW14 8LS020-8392 1818
Has your career with your current employer taken you as far as it can? Do you wantto join a visionary car retailer - one that wants its people to be part of making thatvision and sharing it with all its employees? Would you like to run a high profiledealership with great franchises?
Then we would like to hear from you. Our client, Jardine Motors Group UK, islooking for an ambitious Dealer Principal to take on the running of their Cambridgeoperation. With a staff of over 50 and two of the world's most prestigious brands inPorsche and Aston Martin, they are looking for someone a little out of the ordinary.
Jardine Motors is one of the country’s Top 10 retail dealership groups and operatesa large portfolio of specialist franchises. A subsidiary of the Jardine MathesonGroup, which celebrated its 175th Anniversary in 2008, they have a wide variety ofinterests worldwide, including large scale investments in motor vehicle retail.
They are looking for someone who shares their passion for their people and for theircustomers. For a candidate whose track record shows they have judgement andcomplete integrity, will take ownership of problems and are a proven motivatingleader. Above they will engender passion and enthusiasm in their team. Withprojected volumes of 350 new units, 550 used units and a turnover of over £30million, this is a well established successful operation with great people which needsto build on an already formidable performance.
Rewards reflect their desire to only attracts the best, with a genuinely competitivesalary, bonus and benefits package. Career prospects are excellent in group thatwants to develop and grow itself and its people.
Applications will treated in complete confidence and will only be accepted throughour appointed recruitment consultants, Motor Trade Selection. Call, e-mail or mailquoting reference JM/8823, or apply directly through www.mtselect.co.uk.
63
www.motortrader.com APRIL2010
RECRUITMENT
CONTACT
Mike Traylen
T: 020 8253 8716
F: 020 8253 8727
www.southgateconsulting.comwww.southgateconsulting.comwww.southgateconsulting.comrecruiting excellence
01235 863 525Southgate Consulting, Bakers Yard, Ardington, Oxfordshire OX12 8PT
Business Director, Aid & Development Sector – specialist 4x4 vehicle distributor, AsiaLocation: UK or European based with international travel
Salary: £Competitive salary + comprehensive bonus, benefits and relocation assistance
A unique opportunity has arisen to join a major distributor of 4x4, SUV and utility vehicles to the developing world on a global basis concentrating specifically on government contracts, aid agencies, and major organisations such as the UN.
Our client has a reputation for customer excellence, taking a basic product and modifying it accordingly for use in harsher climates/territories.
Due to the seniority of this new role, we are seeking an industry experienced individual with a minimum of 10 years relevant automotive sector experience, preferably with extensive exposure to Sub-Sahara Africa. Additionally, it is essential that you can show expertise and success in the negotiation of major contracts within the aid and development community, where delivery of bulk vehicle orders and the necessary specialist modification and parts supply is critical.
Please contact David Southgate [email protected]
Regional Business Manager – UK importerLocation: Home based covering East and South East England
Salary: £negotiable basic + bonus + comprehensive benefits
We have been asked to search for a thoroughly experienced individual to cover a territory from Lincolnshire down to the South Coast, and across to Oxfordshire/Hampshire. The key responsibility of this role is to enable and ensure the Franchised Dealer Network in the designated area is performing to plan, financially. Therefore, regular financial ‘health checks’, composite analysis and constructive financial advice on how to maximize dealership performance should come as second nature to the selected candidate.
Our ideal candidate will therefore probably be working as a Financial Controller for a major automotive retail plc, or as a Business Management Manager with an importer. If you are an Importer Regional Manager looking for a career move into this financial area, you would need to persuade our client that your understanding of dealer composite analysis is extremely sound.
Additionally, the successful candidate will have input into potential network development within the territory, and have very sound senior credibility with business owners and Dealer Principals.
Please contact David Southgate [email protected]
General Manager – Motor Retail DivisionLocation: Overseas
Salary: £substantial salary, comprehensive bonus, housing + benefits
This is an outstanding career opportunity for a General Manager – Retail Automotive, with a very sound volume car background. Operating with one of the leading brands in this region, you will take full responsibility for sales activity on new and used cars mounting to an excess of 50,000 unit sales per annum.
We are looking for a consummate industry professional who has operated in the UK at Regional Director level with a major plc, capable of handling a multi-cultural workforce in excess of 200 staff and a very close working relationship between importer and the distribution network.
As an overseas appointment, this is on a permanent status with family accommodation, comprehensive benefits and an opportunity to work very closely with the senior board members of the business, which has interests in both motor retailing and other sectors.
Please contact David Southgate [email protected]
Business Development Manager – Motorsport sectorLocation: Midlands/South
Salary: Competitive salary + bonus + car OTE £70K +
This is a unique and exciting opportunity to join a well established motorsport organisation, which is looking to expand its portfolio of services, therefore, allowing the successful individual to benefit from substantial growth within the corporate events, sponsorship and business development sector.
Particular emphasis will be put on developing relationships with key manufacturer/importer clients and the individual we are seeking should be able to offer an entrepreneurial approach to exploiting the maximum opportunity for business development in a variety of different areas.
Reporting to the Sales Director you will have a substantial role with the ability to operate independently in order to achieve business success.
Ideally you will have a strong business development background with marketing and sales flair, an understanding of events and sponsorship and the ability to fit into leading motorsport organisation.
Please contact Richard Piper [email protected]
We are seeking to expand our trade sales team, based at our site in Kingswinford, West Midlands. The successful candidate will be a self starting, customer focused, and ambitious individual, who possess a proactive approach to telephone sales. You will have a proven track record in the automotive industry, experienced in sales of used vehicles to business or trade customers. You will need the drive and commitment to succeed whilst offering a constant quality of customer service.
This is an outstanding opportunity to join one of the country’s leading leasing companies at an exciting time.
Candidates must live within travelling distance of Kingswinford. An attractive salary and benefits package are on offer.
Please send a Curriculum Vitae and covering letter detailing why you feel you meet our criteria to:
Mark Green, Re-marketing Sales ManagerLombard Vehicle Management, 45 Second Avenue, Pennsnett Trading Estate, Kingswinford, West Midlands, DY6 7UY
RE-MARKETING TRADE SALES EXECUTIVE
With over 400 MOT testers currently seeking employment nationwide, no one else can help you fill your temporary or permanent vacancy as
quickly or professionally as RIG Automotive Recruit.
We’ll help you take control of the situation, with testers available from
£130 per day
YOUR PERFECT MATCHFor all MOT testing stations
If you feel we can help than you can contact us at:RIG Automotive RecruitExchange House, 494 Midsummer Boulevard, Milton Keynes, MK9 2EAwww.rigauto.co.ukTel: 0845 3028260 Fax: 0871 5289101 Mobile: 07950 [email protected]
64
APRIL2010 www.motortrader.com
RECRUITMENT
CLASSIFIED
CONTACT
Mike Traylen
T: 020 8253 8716
F: 020 8253 8727
working towards equalopportunities for all
British Car Auctions Ltd is the largest and most successfulvehicle Re-marketing company with sites spanning both theUK and Mainland Europe.
Dealer Development Executive (Midlands)
To be the successful candidate you will be a highlymotivated individual to help drive our business forward,and have a proven track record of maintaining high levelsof customer service.
You will have experience of working in a similar role mustpossess the desire and drive to seek out and win newbusiness from the Franchised and Independent Dealerautomotive sector. Also working with our existing majoraccounts, you would be responsible for ensuring ourbusiness partnerships continue to develop and progress,seeking to maximise business retention and loyalty for long-term mutual benefits.
The main duty of this role is to provide a profitableapproach to the provision of all BCA services. To achievethis the jobholder will frequently review the portfolio toensure all vendors are adequately performing and developaccounts in deficit.
For the right person we can offer an attractive rewardspackage commensurate with the position and responsibility.
You can apply by forwarding your c.v. to [email protected] Should you prefer an applicationform then please contact Claire Tuckwell on 01252 736325.
Do your VAT Returns take hours and hours to prepare?
Do you have trouble finding details of vehicles you sold months (or years) ago?
Do you have problems with your stock book?
Is invoicing time consuming and a chore?
Is accounting a problem area?
If the answer to any of these questions is yes, you need…
PERFECT TRADER…For the Independent motor dealer
Records and Summarises Overhead and Vehicle Prep Expenses Issues Sales & Part/Ex Purchase Invoices Prepares and Prints Customer Order Forms Retains all customer details for Mailshots Prepares reports for VAT returns Printable Stock Book showing Stand in Values, Prep Costs, Source, Acquisition
Details, Book Values, Forecourt Prices, Sales Details etc. Details of all vehicles in stock –past and present Bank Account Payments and Receipts Summaries Bank Reconciliation Full Purchase Ledger and Expenditure Analysis
Tel: 0844 415 1406 [email protected]
Costs, Source, Acquisitionetc.
• 2 Car Twin Deck Transporter• Gross Weight 7500• First Reg 01.09.07• Taxed and MOT• 39,000 miles
Features include:Extension Ramps, Electric Winch and Radio
• 2 Car Twin Deck Transporter
Mitsubishi Fuso Canter Model 7C18
Please call Platinum Motor Group: Sherry on 01225 756100 orRay on 07769 882 603
£24,995+VAT
For CandidatesFor ClientsFor Results
� www.repr.co.uk or � 01925 202050 Motor Industry Training – Brokerage – Consultancy
Register with [email protected]
6954 Service Manager Lancashire £45k ote
6953 Sales Manager Cheshire £tba
6957 Sales Manager Cheshire £35k
6955 Used Vehicle Business Manager Cheshire £38k ote
6958 Service Manager Gt Manchester Cheshire £tba
6945 Dealership Accountant Cheshire/ Staffordshire £30k
6956 Sales Manager Cambridgeshire £40k ote
6911 Showroom Manager Couth Cheshire £60k
6943 Sales Consultants South Cheshire £35k ote
If you are a Sales Administrator /Book Keeper/Purchase ledger/ Service Advisor based in the Cheshire area. Please register your details on our web site
General Manager Energetic and dynamic candidates for these roles
Sales Manager are required for a newly acquired
Sales Executives prestige franchise in the West Midlands
Brand Management – Gulf A major corporation requires a Gulf based Manager for a premium brand.
Senior management experience with a luxury brand is essential.Contact Robert Barris on 07793056622 - [email protected]
Vehicle TransportSoftware
65
www.motortrader.com APRIL2010
65CLASSIFIED
CONTACT
Tony Welch
T: 020 8253 8710
F: 020 8253 8727
AS USED BY AA & RACRemoves 100% of lock nuts
Will not damage alloy wheel
Designed & Manufactured in the UK my Dynomec Ltd
Tel: 01977 520666Fax: 01977 510333
www.dynomec.co.ukDynomec Ltd, Unit 5 School Street, The Potteries,
Castleford, West Yorkshire WF10 1NZ
LOSING TRADE DUE TO LOCK NUTS?
ss
Locking Wheel Nut Remover
See Our Website For a Demonstrationwww.lockingwheelnutremover.com
www.gea.co.uk
Welcome to the GEA,
your number one
resource for Garage
Equipment on the web.
This is your gateway
to the products and
services provided by
the members of the
garage equipment trade
association.
Garage Equipment
Property
Badges
Garage Equipment
Tele: 01623 514418 Fax: 01623 551717
GEMCO EQUIPMENT LTD(Garage Equipment Specialist)
New & Used 2 & 4 Post LiftsPre-owned Tyre MachinesPre-owned Wheel BalancersPre-owned MOT EquipmentCompressors,etc.etc.etc.
GEMCO EQUIPMENT LTD(Hydraulics)
New & Used Jacking BeamsService and Repair of PitJacks ,trolley jacks, rams& Cylinders. Collection &Delivery can be arranged
Internet Auctions
Property
Garage Equipment
DISPOSALS & ACQUISITIONS VALUATIONS RENT REVIEWS & LEASE RENEWALS BUSINESS RATES APPEALS COMPULSORY PURCHASE NEGOTIATIONS GENERAL PROPERTY ADVICE
CONTACT DAVID COLLINS FRICS
www.adlers.co.uk
London & Leeds
020 7224 2244
SPECIALIST PROPERTY ADVISORSTO THE AUTOMOTIVE INDUSTRY
www.motortrader.com
66
www.motortrader.com
CLASSIFIED
APRIL2010
Parts Distributor
Business For Sale
ATTENTIONPARTS MANAGERS4d Distributors has been supplying quality OE car parts for over 19 years and prides itself on delivering a first class, next day delivery service throughout the UK.We are also the original aftermarket distributor of micronAir cabin filters, and with highly experienced sales staff we offer a high quality personalised service, which helps to maximise customers satisfaction.
T: 0191 298 0666 F: 0191 298 0265Email: [email protected] www.4ddistributors.co.uk
4d Distributors, 6 Double Row Seaton Deleval, Northumberland NE25 0PP
Established ProfitableMotor Business withSite and PremisesKarcare, Station Yard Industrial Estate,Castle Douglas, DG7 1LA
For Sale4,402 sq ft (408.96 sq m) within a 0.56 Acre (0.23 Hectare) site.
Email:[email protected]: D6/20/79
EDINBURGH 0131 240 6960 WWW.CKDGALBRAITH.CO.UK
Maximise Your Workshop Profit
Boost Profit & Cash Flow By Having
Accurate Job TimesControl of Non-Productive TimeIndividual Employee Efficiency
Find Out More At www.timepro.co.uk Or Call: 01246 267 715 For A Brochure
Management Services Garage Equipment
Property
CASHFLOW SERVICES
Get paid 96% of your invoice within 24 hours for authorised
insurance repairs
www.cashflow-services.com020-8449-6968
Let us do the chasing!
Debt factor to the Body Repair ind. Est 1983
Services
Accountants
Garage Equipment
Andy Clarke Motor Ltd are Chartered Accountants specialising in the motor industry.We work alongside existing accountants to provide non-core motor specifi c services including internal audit, monthly accounts and dealer reviews at competitive rates.
t 07728 802500e [email protected] www.andyclarkemotor.co.uk
The Garage Equipment Association (GEA) represents the Garage Equipment Industry. We continue to strive for the highest professional and safety standards and will support and motivate our members to provide the best quality of product, customer service and aftercare.
t 01327 312616e [email protected] www.gea.co.uk
Text Messaging
Keep customers informed by text from your PC.Send service and MOT reminders, service follow ups. Customer satisfaction surveys. Text “Car for Sale” details.Free account set-up, no minimum billing or monthly charges. Full support.
t 0845 638 1421 e [email protected] www.anytext.co.uk
Human Resources
Connect HR & Recruitment provide Human Resource solutions to clients both on and off site. Our services include improving sickness and absence, handling disciplinary and grievance, improving poor performance, writing employment contracts and staff handbooks.
t 01430-473053 e [email protected] www.connect-hr.com
Property
GVA Grimley’s Automotive and Roadside team is recognised as one of the UK’s leading property specialists having 25 years experience in the automotive, oil and roadside industries offering services in acquisition, disposal, valuation, rent review, lease renewal, rating and consultancy.
t +44 (0)8449 02 03 04 e [email protected] www.gvagrimley.co.uk/automotive
Motor Trade Specialists• Acquisition & Disposal –
no sale, no fee• Surveys & Valuations• Rent Review• Lease Renewal• Rating, Compulsory
Purchase and more
www.power-tec.co.uk
For our latest catalogueplease call:
0800 197 7877
BODY REPAIRTOOLS & EQUIPMENT
Towbars
witter-towbars.co.uk
Fixed flange ball and detachableflange ball and swan necksystems. Major distributors
throughout Europe plus over 250 UK stockists.
Valeting
or visit: www.nationalcarclean.co.uk
we clean more, you pay less!*
*Terms and conditions apply
Call us NOW on:
0870 112 7899
BOUGHT AND SOLDTel: 020 8452 4201 or
07785 377799Email: [email protected]
WILSONSSpray Booths � Bodyjigs � Car Lifts
KEYTRACKER SYSTEMSSEALS, PEGS & MIRROR HANGERS
ALL AT BEST PRICES
0121 559 9000www.KEYTRACKER.com
67
www.motortrader.com APRIL2010
BUYERS’ GUIDE
As the UK’s number 1 business broker we won’t rest until we fi nd a business that is ideal for you, your business is our passion. Call today and make your dreams a reality.
t 0844 701 1964e [email protected] www.knightsbridgeplc.com
Property
Adlers
SPECIALIST SURVEYORS TO THE AUTOMOTIVE INDUSTRY
Acquisitions, Disposals, Rent Review Negotiations, Lease Renewal Negotiations Valuations, Rating Appeals, General Property Advice
t 020 7224 2244e [email protected] www.adlers.co.uk
Valeting
With an established history of over 25 years of excellence in vehicle valeting for the automotive trade, National Car Cleaning Company boasts an unparalleled reputation for quality on site vehicle preparation.
t 01268 565050e [email protected] www.nationalcarclean.co.uk
Vehicle Tracking
Want your own branded Advanced Real TimeTracking solution?Integrate maps and reports with alerts into your own websitePromote your own products and services to your clients.Giantt Telematics can provide you with a full range of tracking equipment.
t 0844 5893555e [email protected] www.orangeade.net
Autohouse Associates Property Specialists to the Motor Trade established 1988, specialising in Surveys and Valuations for Commercial properties; Management - Rent Reviews, Lease Renewals and Dilapidations; Rating; Planning; Agency; Compulsory Purchase and Insurance Reinstatement.
t 01245 496880e [email protected] www.autohouse.uk.com
CarStages invented the SeeSaw style Car Display Stage as seen on dealership forecourts across the UK & Europe. Only genuine CarStages are built to the HEAVY DUTY industrial standard required to last a lifetime. See the website for the facts on build quality over the past 14 years.
t 01205 760016e [email protected] www.carstages.co.uk
CarStages.co.uk
Wilsons (Cricklewood) Ltd have been supplying Motor Refi nishing & Bodyshop products, including New & Used Garage Equipment since the 1970’s.We strive to bring you the best and the most up to-date automotive products available.
t 020 8452 4201e [email protected] www.garageequipment.co.uk
Caxtons Automotive Property Consultancy specialising in the acquisition, disposal, appraisal, rent review and lease renewal of motor trade property for over thirty years.
t 01435 813700e [email protected] www.caxtons.com
Badges Display Equipment
We supply name badges for motor dealerships throughout the world. For helpful advice, instant quotations, free samples and very fast effi cient service backed by a no quibble best price guarantee, call our customer services team.
t 01623 723112 e [email protected] www.badgemaster.co.uk.
Direct Supply (UK) Ltd, established in 2001. Leading supplier of Forecourt Display Solutions to the UK market. Family run with a commitment to offering choice and value for money with a high level of customer service.
t 0845 260 2607e [email protected] www.directsupplyukltd.co.uk
Butts of Bawtry offer MOT Supplies & Tools at competitive prices. Other ranges include; Professional key tags, Garage Equipment, Workshop Tools, Forecourt and Showroom Display products and Personalised Products including signage, mot wallets and key fobs.
t 01302 710868e [email protected] www.buttsequipment.com
We offer innovative tools for faster body repairs. For example, the ‘Miracle’ panel repair system will speed up repair times and improve workshop throughput whilst maintaining the highest repair quality. Ask for our info pack.
t 0800 197 7877e [email protected] www.power-tec.co.uk
Turntables
Movetech UK offers a wide range of car turntables and revolving stages for showroom and exhibition display as well as bespoke revolves built to customer specifi cations. Rental facilities are available worldwide.
t 01204 537680 e [email protected] www.movetechuk.com
Towbars
Fixed and detachable towbars for over 1000 cars and light commercials plus a full range of towing accessories including tow steps, couplings and electrical kits. Also roof bar systems, ply lining kits and spring assistors.
t 01244 284500 e [email protected] www.witter-towbars.co.uk
Management Services
TimePro is a robust and easy to use time recording solution for automotive workshops. Car & Truck workshops, both franchised and independents use TimePro to manage employee attendance time, and improve workshop effi ciency and profi tability.
t 01246 267715 e info.offi [email protected] w www.timepro.co.uk
Manage Your Assets the Keytracker Way
Key control specialists, Keytracker, supply a comprehensive range of bespoke key management and asset tracking systems to companies in the UK and worldwide.
t 0121 559 9000e [email protected] www.keytracker.com
When it comes to garage equipment and workshop design, Liftmaster have a wealth of knowledge and experience. They are importers of Bend-Pak & Liftmaster garage equipment, and can supply Robust &
Reliable products at best value prices.
t 01420 549038e [email protected] www.liftmasteruk.com
Software
Ginger Cat Software provides the defi nitive, affordable software package for the independent motor dealer, covering stock books, VAT calculations, customer records, invoicing, prep expenses and overhead expenditure. It’s the product to meet all your software needs.
t 0844 415 1406e [email protected] www.gingercatsoftware.co.uk
Sales Training
Learn how to win sales and infl uence people . . . •Convert more sales and learn how to avoid price focused sales situations •Understand your customers and identify their real buying motivations•Refocus your sales team and give them the edge they need
t 01634 566 274 e [email protected] w www.realselling.co.uk
Services
CASHFLOW SERVICESCashfl ow Services is a prompt insurance settlement service. Our nationwide scheme is specifi cally designedto appeal to body repairers. We have been successfully established since 1983 and enjoy regular custom frommany companies, both large and small.
t 0208 449 6968e neal.cashfl [email protected] www.cashfl ow-services.com
Global Insurance Management (Formerly Lumley Auto)
Maximise your business potential and profits with motor-related insurance products underwritten by AXA Insurance (UK) plc.
� Mechanical Breakdown Insurance � GAP Insurance � MoT Test Insurance � Tyre Insurance � Roadside Assistance � Key Insurance
Giving your customers peace of mind is good business practice. Research shows customers who are happy with a warranty will be happy to return for repairs, servicing and new purchases. At Global, we’ve been providing excellent products and services for over thirty years and have an enviable reputation for customer service.
Discover what we can do for your business.
Call Global on 024 7652 7800 or visit www.globalim.co.uk