• BMW DETAILS AGENCY PLANS – WHICH INCLUDE NEARLY-NEW
• AA CARS LAUNCHES NATIONWIDE DELIVERY FOR RETAILERS
• BMW FACES £15k A DAY FINE BY UK WATCHDOG
• PENDRAGON TO DEMOLISH PEUGEOT RETAILER, EXPAND KIA
• CARVANA CREDITORS STRIKE PACT
• RETAILER SENTIMENT SOURS
• STOCKWATCH: Pendragon down 32% after Hedin abandons takeover bid
• COMING UP: BoE interest rate decision
• RECESSION TO LAST UNTIL 2024
• WOMEN PENSION SAVINGS GULF WIDENS TO £140k

BMW details agency plans and includes nearly-new

BMW has revealed more about its direct-sales agency model, which will see it invoice customers directly and retailers receive a fixed fee for each sale. Sales and marketing boss Pieter Nota said it will start with Mini in 2024 and all BMW cars in 2026.

Nota was keen to stress “the agency model is often misunderstood. We will not bypass dealers in taking this step. It will be a triad that benefits all three parties involved in buying a vehicle”.

Agency will improve the customer experience, provide an attractive business model for BMW retailers, and give the firm direct access to the customer. “Those are the three most import aspects in our plans.”

BMW will introduce a uniform IT service that will link its web activities with retailer systems. As it takes over many of the retailer’s tasks, the OEM will also add staff – “but there will not be a significant increase. We have a number of large subsidiaries that can handle these tasks.”

Nota refused to discuss commission. Mercedes-Benz has agreed 6.5% initially and 6% later, but he would not comment, saying commission is confidential between BMW and its retailers.

He also refuted suggestions that BMW is considering expanding the agency model to include aftersales and parts sales. Nearly new cars (aged six to 12 months, maximum 18 months) will, however, be part of agency. “All other used cars… will continue to be the exclusive business of dealers.”

Nota added agency will be inconceivable in the US.

https://bit.ly/3UMYxwq

 

AA Cars launches nationwide delivery for retailers

Used car platform AA Cars has partnered with tech transporter AnyVan to offer its retailers a nationwide vehicle delivery service. Retailers can arrange for cars to be delivered to customers anywhere in the UK. Pricing is fixed and dependent on vehicle and delivery distance. The firm says it will help retailers who are not able to run their own vehicle delivery service.

 

BMW faces £15k a day fine by UK watchdog

BMW’s failure to hand over documents relating to an investigation into end-of-life vehicles has seen the Competition and Markets Authority (CMA) fine the brand £30k – and an additional daily £15k penalty until it complies with orders.

https://bit.ly/3Hn3Orl

 

Pendragon to demolish Peugeot retailer, expand Kia

Planning permission has been submitted to demolish a former Pendragon Peugeot retailer in Stourbridge, West Midlands – to expand the group’s adjacent Kia site. The plans include bringing the Kia retailer in line with latest CI requirements, and expanding the display capacity.

https://bit.ly/3YgcyWf

 

 

 

WORLD NEWS

Carvana creditors strike pact

A group of Carvana’s largest creditors have signed a pact binding them to cooperate in any potential debt restructuring for the struggling online retailer. The agreement between the creditors, which hold around 70% of Carvana’s unsecured debt (around $4bn), lasts for three months. It aims to prevent fights amongst creditors in the repayment line.

Carvana’s credit rating has deteriorated due to falls in used car prices, rising interest rates and a heavy debt load. Its stock price plunged 43% on Wednesday as news of the pact emerged.

https://bit.ly/3YgCVve

 

Retailer sentiment sours

US retailers are worried about the economy and interest rates, which is dragging down their expectations for the next quarter. The Cox Automotive Dealer Sentiment Index found that previous concerns about inventory have switched to the economy – with the survey polling record lows for retailer outlook.

https://bit.ly/3iQOAkq

 

 

STOCKWATCH

Closing prices on 9 December 2022 and weekly change

Pendragon down 32% after Hedin abandons takeover bid

Auto Trader Group 562.2p (-13.0p / -2.2%)

Caffyns 500.0p (n/c)

Halfords 190.5p (-7.9p / -4.0%)

Inchcape 820.0p (-16.5p / -1.9%)

Lookers 77.1p (-3.7p / -4.6%)

Motorpoint 150.5p (-6.5p / -4.2%)

Pendragon 20.2p (-7.7p / -32.0%)

Vertu 52.4p (+4.2p / +8.3%)

 

COMING UP

Monday, UK GDP

Tuesday, UK unemployment

Wednesday, CPI and RPI

Thursday, Bank of England interest rate decision

Friday, GFK consumer confidence

Friday, retail sales

 

MONEY MATTERS

Recession to last until 2024

The British Chambers of Commerce has warned the UK will be stuck in recession until 2024. It says the economy has entered a five-quarter recession with growth returning in late 2024. The economy will contract 1.3% next year, after growing 4.2% this year.

https://bit.ly/3Pkj0HY

 

Women pension savings gulf widens to £140k

The gap in private pension pots between men and women has widened to almost £140k. Last year, the typical man had £205k in his pot; they typical woman had £69k. The gap is up from £105k in 2019 and is caused by factors including women earning 8.3% less than men in full-time work, and childcare responsibilities falling mainly on women. Career breaks to have children also take a huge toll on pension savings.

https://bit.ly/3W3JIXX