Auto Retail Agenda: 20 February 2023
18 February 2023
- 4-1-1 MOT CONSULTATION EXTENDED
- CAZOO SELLS GERMAN SUBSCRIPTION BUSINESS
- SUZUKI’S NEW UK MD
- CITI STARTS INCHCAPE COVERAGE WITH ‘BUY’
- LITHIA IS NOW #1 US RETAILER
- ITALY CALLS 2035 ICE BAN ‘SUICIDE’
- AUTONATION COULD SELL ALPINE IN US
- STOCKWATCH
- COMING UP: GFK consumer confidence
- SURPRISE JANUARY RETAIL SALES RISE
- ELON MUSK PLANS INVESTOR DAY ON 1 MARCH
4-1-1 MOT consultation extended
Consultation around DfT proposals to increase the period before a vehicle’s first MOT from three years to four have been extended from six weeks to nine. The new closing date is 22 March 2023.
Retailers and the NFDA have praised the extension. “It gives the industry more time to gather widespread information and crucial evidence from retailers to oppose the proposed changes to MOTs,” said NFDA chief executive Sue Robinson – who added the organisation is in the process of finalising its position on behalf of the industry.
“The extension to the consultation period allows the NFDA to have more time to discuss with our members and European counterparts to obtain insight and knowledge regarding their MOT testing policies, cross referencing this with ours and building on our evidence to counteract these proposed changes from government,” she added.
- The NFDA is urging retailers to sign a trade body petition to stop the 4-1-1 MOT. It needs 10k signatures to produce a government response; it is currently on just over 6k: http://bit.ly/3jemEHD
Cazoo sells German subscription business
Cazoo has sold its German subscription business, Cluno, to ViveLaCar and The Platform Group. The portfolio includes several thousand vehicles in Germany. Financial terms were not disclosed.
The deal concludes Cazoo’s withdrawal from the German market and, with previously announced sales of other businesses in Europe, largely completes Cazoo’s entire withdrawal from mainland Europe.
Cazoo acquired Cluno in February 2021, again for an undisclosed sum, a few months after acquiring Drover in the UK. At the time, it said car subscriptions were a fast-growing market “and will become a core part of Cazoo’s proposition”.
Cluno was founded in 2017 and, when acquired by Cazoo, had a team of more than 100 based in Munich.
Suzuki’s new UK MD
Suzuki GB PLC has a new managing director for the UK and Republic of Ireland. Takanori Suzuki will replace Nobuo (Sam) Suyama on 1 March; Sam, who joined Suzuki GB in 2014, will become president of Suzuki Marine in the US.
Takanori-san was previously Suzuki GB MD from 2006-2010; he will retain his current role as division general manager for Suzuki Motor Corp’s European market.
Citi starts Inchcape coverage with ‘buy’
Investment bank Citi has begun coverage on Inchcape – with a buy rating, thanks to the firm’s “unique” opportunity to consolidate automotive distribution in markets of less than 1 million sales.
WORLD NEWS
Lithia is now #1 US retailer
Lithia Motors beat long-time US no. 1 new vehicle retailer AutoNation to the top spot in 2022, by more than 40k vehicles. Sales were up 4.2% to over 271k; AutoNation saw a 12% drop to 230k vehicles.
AutoNation had held the top sale spot since 1997.
Last month, it was revealed Lithia was in negotiations to buy Jardine Motors for £300m. A deal was expected to complete within weeks.
Italy calls 2035 ICE ban ‘suicide’
Italy’s transport minister has called EU plans to stop sales of ICE vehicles by 2035 “suicide” and a “gift” to Chinese industry. Matteo Salvini criticised the “ideological fundamentalism of electricity alone” and said more time and funding was needed to ensure a smooth transition.
Italy is understood to be planning its own counterproposal to dilute the target, limiting the reduction to 90% to give industries the chance to adapt.
AutoNation could sell Alpine in US
Renault is considering partnering with AutoNation to sell Alpine sports cars in the US. Working with AutoNation – which is led by former FCA CEO Mike Manley – could take the form of a partnership that goes beyond placing vehicles in retailers, added Renault CEO Luca de Meo.
STOCKWATCH
Closing prices on 17 February 2023 and weekly change
Auto Trader Group 600.2p (-7.0p / -1.1%)
Caffyns 500.0p (n/c)
Halfords 216.2p (+8.0p / +3.7%)
Inchcape 934.5p (+32.5p / +3.5%)
Lookers 91.2p (-0.4p / -0.4%)
Motorpoint 145.0p (-1.5p / -1.0%)
Pendragon 19.5p (+0.1p / +0.5%)
Vertu 60.9p (-4.1p / -6.5%)
COMING UP
Friday, GFK consumer confidence
MONEY MATTERS
Surprise January retail sales rise
Retail sales unexpectedly rose in January. Economists expected a 0.3% fall but ONS figures recorded an increase. Online sales rose 2%: online remains more popular than pre-pandemic, accounting for 25% of all sales.
Despite the January boost, retail sales remain lower than pre-pandemic times, with cost of living pressures becoming more apparent.
Elon Musk plans investor day on 1 March
Tesla chief Elon Musk has confirmed an investor day on 1 March – and there is speculation a new $25k (just under £21k) Model 2 could be announced. Production would begin in 2024. “This has the potential to be a game changer. It could double Tesla’s business,” said Gene Munster of Deepwater Asset Management.
Tags:
aftersales, Alpine, AutoNation, Cazoo, Citi, Drover, Inchcape, Jardine, Lithia, MoT, NFDA, ONS, Retail Sales, Suzuki, Tesla 
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