Auto Retail Agenda: 3 April 2023
01 April 2023
- MYSTERY AS CINCH CEO JAMES MULLINS JOINS MARSHALL BOARD
- SCALE OF MULTI-FRANCHISING REVEALED
- HONDA MARSHALL AND GLYN HOPKIN RETAILERS CLOSE
- UNDERWOODS SKODA COLCHESTER CLOSES
- US INFLATION REDUCTION ACT CONFUSION
- CHINA’S BYD RULES OUT US ENTRY – FOR NOW
- STOCKWATCH
- COMING UP: Good Friday
- GEN X PENSION BLACK HOLE WARNING
- UK MARKET ‘A BACKWATER’
Mystery as Cinch CEO James Mullins joins Marshall board
Cinch CEO James Mullins has joined the leadership board of Constellation Automotive Group, along with the boards of its retail businesses Marshall Motor Group, Motorline and Cinch.
Mullins was formerly CFO at Cambria, a role he held from 2007 to autumn 2021; he joined Cinch as CEO in April 2022.
It was also announced late on Friday that Constellation CFO Tim Lampbert has left almost every role with the group. He remains a director at Constellation’s management incentive business BCA MIP Nominee.
Lampbert was made a director of Marshall in July 2022, just over a month after former CEO Daksh Gupta left.
In January this year, Richard Blumberger resigned as CFO of Marshall. He was appointed by Daksh Gupta to replace Mark Raban, who moved to Lookers as CEO in 2019.
More news is expected of the Constellation board shake-up, which was announced late on Friday, this week.
Auto Retail Agenda has asked Constellation to comment on the moves, but has yet to receive a response.
Scale of multi-franchising revealed
Over the past 10 years, multi-franchising has increased by almost 12% across all car brands in UK automotive retail, according to the Networks Report 2023 due out this week.
The report, previously known as the Franchising Report, is the first to use data to analyse the multi-franchising trend.
While the all-brand figure shows a move from an average of 1.56 to 1.77 brands per physical site (an increase of 11.9%), some OEM groups have seen far higher increases; Stellantis, for example, has seen a rise of 30%.
- The full report is available from the Auto Retail Network website in print and digital form.
Marshall and Glyn Hopkin Honda retailers close
Scarborough Marshall Honda suddenly closed last Friday. In a statement, it blamed a Honda UK strategic review of franchise representation in Yorkshire. The Scarborough News reports job losses are likely.
The nearest Honda retailer for Scarborough customers is now York, Hull or Harrogate, all more than 40 miles away. Marshall Honda franchise director Carole Merry thanked customers for their support “and look forward to welcoming you to our nearby retailers”.
Auto Retail Network last week also learnt Glyn Hopkin’s Honda Colchester’s franchise is soon to end. It is understood the retailer is to take on a new franchise, rather than closing the retailer.
Underwoods Skoda Colchester closes
Underwoods of Colchester has closed its Skoda franchise after nearly 20 years in the area. “The decision was not one of Underwoods’ making,” said MD Gerry Wiggins. “Skoda has decided to reduce the number of dealers in their network, with an increased focus towards online sales.” He said the retailer would continue to offer aftersales at its authorised Skoda garages in Sudbury and Clacton.
Underwoods also operates Kia, Mazda and Vauxhall franchises in the Colchester area. Most staff at the Skoda franchise have retained their jobs.
WORLD NEWS
US Inflation Reduction Act confusion
The US Inflation Reduction Act’s electric car incentives are reportedly causing confusion among both consumers and retailers. Anyone who bought an electric car was supposed to get a $7,500 (£6,000) credit. However, the credits have since been restricted to only car parts and batteries sourced from the US, creating uncertainty as to which cars qualify for tax credits. The current list of around 40 cars is set to be drastically reduced. “It’s becoming more complicated by the day,” said one analyst. “It’s as clear as mud.”
Imminent updates are expected to clarify the situation – which last week was criticised by chancellor Jeremy Hunt as leading a “distortive” global subsidy race.
China’s BYD rules out US entry – for now
BYD founder Wang Chuanfu has no current plans to enter the US, which is the second-largest EV market after China. BYD is now a pure EV brand and last week reported net income had quintupled. The EV giant will instead concentrate on a “full expansion phase” in its Chinese home market – where a price war has erupted between BYD, Tesla and other EV makers.
BYD is also expanding in Europe, including in the UK with several Stratstone retailers opening in recent weeks.
STOCKWATCH
Closing prices on 31 March 2023 and weekly change
Auto Trader Group 616.2p (+22.2p / +3.6%)
Caffyns 525.0p (+25.0p / +4.8%)
Halfords 174.8p (+2.4p / +1.3%)
Inchcape 774.5p (+44.5p / +5.9%)
Lookers 82.3p (+2.5p / +3.0%)
Motorpoint 135.0p (n/c)
Pendragon 16.55p (+0.2p / +1.2%)
Vertu 59.8p (-2.4p / -3.9%)
COMING UP
Wednesday, Lookers results, March new car registration figures
Thursday, Halifax house price index
Friday, Good Friday
May 3, Radius Law annual conference: sign up now
MONEY MATTERS
Gen X pension black hole warning
Generation X born between 1965-1980 are being warned they may have fallen through cracks in the pension saving system. They are too young for a gold-plated final salary pension, but too old to have fully benefitted from auto-enrolment, introduced in 2012. This generation may have a “black hole” in their pension savings due to the reliance on defined contribution schemes.
The problem is particularly acute for those due to retire in the 2030s, who are expected not to have enough savings to maintain their standard of living. Younger generations, including millennials, are also at risk – but have time to do something about it.
UK market ‘a backwater’
Top fund manager Nick Train says the UK is a “backwater” of global equity markets. He has called out a dearth of “significant technology champions” and the UK’s “dismal capital performance”. His comments come amid growing concerns about London’s status as an international finance centre, with an increasing number of companies considering leaving the capital for a New York listing.
Tags:
BYD, Cinch, Constellation, Franchise Report, Glyn Hopkin, IRA, James Mullins, Marshall, Motorpoint, pensions, Underwoods 
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