“Simon joined the group in 2008 as group M&A and projects manager,” CEO Darren Edwards told Auto Retail Agenda. “He has held the position of group FD, leading the group finance team, since 2011. His promotion is another great example of our ‘developing talent and building careers’ colleague commitment.”

Pendragon Pinewood court hearings underway

Hearings for the High Court legal challenge to Pendragon software business Pinewood have begun. Justice Joanna Smith took application hearings last Wednesday and Thursday.

Pinewood Technologies Asia Pacific Ltd, a Hong Kong-based software reseller, is suing Pinewood Technologies PLC for $313m (£239m) for allegedly failing to change the DMS to fit the legal requirements of different markets. It claims this blocked it from launching in Japan.

Pinewood Technologies PLC has filed a counterclaim, alleging the reseller breached its contract by failing to pay outstanding debts.

Pinewood Technologies Asia Pacific Ltd is represented by King & Spalding; Pinewood Technologies PLC is represented by Towers & Hamlins.

In its 2022 results, Pendragon revealed Pinewood revenue grew 4.1% to £25.4m, but operating profit fell 12% to £11m due to increased R&D which included a “largest ever” £6m capex spend.

Pendragon believes the UK DMS market is worth £100m, and the global DMS market is worth £2.5bn.

In December 2022, Hedin abandoned a £400m takeover bid for Pendragon.

https://tinyurl.com/ymn74uf6

 

Stoneacre adds another Maxus retailer

Stoneacre has opened a new Maxus CV retailer in Darlington. It takes Stoneacre’s Maxus sites to four (making it one of Maxus’ largest UK retail groups), and the total number of Maxus retailers in the UK to over 60.

https://tinyurl.com/5n62mebn

 

70 years of Volkswagen in UK

Volkswagen last week celebrated 70 years in the UK market. It was established in 1953 when entrepreneur Stephen O’Flaherty was granted the franchise to sell the Volkswagen Beetle.

 

Mercedes-Benz World plug Goodwood gap

Mercedes-Benz World in Weybridge, Surrey hosted hundreds of guests and customers on Saturday in a last-minute event following the cancellation of the Goodwood Festival of Speed. “We pitched the idea at around 11pm,” said UK marketing director Rob Halloway, “and by 7am everything was in place.

“Everyone jumped in. We put on a great show, rustled up some fabulous hospitality, and our guests, VIPs and customers saw the very best of Mercedes-Benz. Seeing the team pull together was joyous.”

The team and cars returned to Goodwood on Sunday for the final day of the event.

https://tinyurl.com/yta7k463

 

 

WORLD NEWS

Lithia eyes further acquisitions

Lithia, the largest auto retailer in the US, has a 2025 target of reaching $50bn (£38.1bn) in revenue, and network development and acquisition will form a key part of this. It is targeting $25bn (£19.1bn) in acquired revenue, up from an earlier target of $20bn (£15.2bn). “Lithia Motors’ core competency is M&A,” said CEO Bryan DeBoer.

US retailers also last week praised Lithia’s decentralised business model. This allows local managers to make independent decisions, something Lithia execs describe as a “hands-off approach”.

Lithia Q2 earnings will be released on 26 July.

https://tinyurl.com/2p9fpway

 

Carvana valuation surge ‘disconnected’

Carvana shares have surged 643% so far in 2023, fuelled by short squeeze-fuelled rallies. However, they fell 7% last week after JPMorgan issued a downgrade. “We believe valuation has once again disconnected materially from fundamentals.”

Short interest in Carvana sits at an “enormously high” 54.8%.

https://tinyurl.com/2ap9h3as

 

 

STOCKWATCH

Closing prices on 14 July 2023 and weekly change

Auto Trader Group 634.6p (+37.2p / +6.0%)

Caffyns 500.0p (n/c)

Halfords 220.2p (+7.2p / +3.3%)

Inchcape 755.0p (-4.0p / -0.5%)

Lookers 119.4p (+0.4p / +0.3%)

Motorpoint 96.8p (+0.4p / +0.4%)

Pendragon 17.44p (-0.38p / -2.1%)

Vertu 73.8p (+4.2p / +5.8%)

 

 

COMING UP

Tuesday, premium brand Genesis expected to reveal agency retail partners

Wednesday, UK CPI inflation data

Thursday, public sector net borrowing

Friday, GFK consumer confidence

Friday, retail sales

27 July, Auto Retail Live technology in retail webinar – sign up now: https://tinyurl.com/2vkyv78w

 

 

MONEY MATTERS

The great unresignation

Economic inactivity is falling, a trend dubbed ‘the great unresignation’. It has reached its lowest level since the three months to May 2020, when Britain was first in lockdown. Recruitment firm Reed also reports a 35% rise in job applications this year, in contrast with a year ago, when “applicants could almost name their price”.

Work and pensions secretary Mel Stride has reportedly been focusing on increasing the supply of workers, to boost the economy and reduce inflation.

https://tinyurl.com/38b6ccc7

 

UK joins £12trn Indo-Pacific trading bloc

The UK has joined a major Indo-Pacific trade block, the ‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership’, or CPTPP. The UK is the first European nation to gain entry, and represents Britain’s biggest trade deal since Brexit. Tariffs will be cut to a group of nations accounting for 15% of global GDP.

The block comprises Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, a market of half a billion people. It was formed in 2018.

https://tinyurl.com/2tm4dv6p