Auto Retail Agenda: 24 July 2023
22 July 2023
- FORMER VANTAGE CEO MARK ROBINSON TAKES STAKE IN TECH BUSINESS
- EV ‘NOT TO BLAME’ FOR HUGE INCHCAPE JLR PRESTON FIRE
- LOTUS PICCADILLY OPENS THIS WEEK
- TOM KILROY, JAMES SMULLEN AND CHARLOTTE MURRAY WEBINAR THIS WEEK
- CARVANA STRIKES DEAL TO CUT DEBT BY $1.2bn
- AUTONATION REPORTS BETTER THAN EXPECTED RESULTS; SHARES FALL
- STOCKWATCH: Lookers down 11.8% after Constellation withdraws support for Alpha Auto bid
- COMING UP: Auto Retail Live technology in retail webinar – sign up now: https://tinyurl.com/2vkyv78w
- ASDA AND MORRISONS PAY ZERO CORPORATION TAX
- BUSINESSES HELD BACK BY RECRUITMENT STRUGGLES
Former Vantage CEO Mark Robinson takes stake in tech business
Vantage Motor Group founder and former CEO (and ex-chairman of the UK National Toyota Council) Mark Robinson has taken a stake in award-winning tech business AutoComms Solutions.
The firm is known for its AutoBuzz automated communications platform, which helps manage customers between placing a new or used car order, and taking delivery.
Robinson, who exited Vantage in January 2020 and takes on an advisory role in AutoComms, joins two other recent shareholders and board members, former Lookers directors Andy Bruce and Nigel McMinn.
Bruce and McMinn also joined fleet management and online leading firm Fleet Alliance in August 2021 as CEO and COO respectively.
AutoBuzz is used by retailers such as Steven Eagell, JCB Group and Waylands. The firms says that each pilot it’s run has turned into roll outs – often group-wide, and incorporating used cars as well as new.
EV ‘not to blame’ for huge Inchcape JLR Preston fire
Inchcape JLR Preston says, despite speculation, an electric vehicle was not the cause of the huge fire it suffered back in April. It began in the top floor of the retailer, and was likely the result of an electrical fault. More than 60 firefighters and 10 fire engines attended the blaze. Lancashire Fire and rescue believes the fire was accidental, but was unable to determine a cause due to the damage sustained. It is no longer investigating.
The showroom has been closed since June. A clean-up operation in the workshops means Inchcape Preston will reopen for aftersales customers from early August.
Lotus Piccadilly opens this week
Lotus has moved its Piccadilly showroom and the new store, directly opposite the Ritz Hotel, officially opens this Friday. It is the brand’s first major European flagship brand store.
Tom Kilroy, James Smullen and Charlotte Murray webinar this week
Keyloop CEO Tom Kilroy, Waylands director James Smullen and Marketing Delivery commercial director Charlotte Murray will discuss the technology in retail revolution in an exclusive, free-to-join webinar this Thursday.
Key discussion points will include a review of where we are today and how the customer journey can be made more relevant. Essential tools, processes and skill sets for today’s auto retail will be outlined, and findings from the forthcoming Keyloop technology in retail report will be discussed.
Sign up now: https://tinyurl.com/2vkyv78w
WORLD NEWS
Carvana strikes deal to cut debt by $1.2bn
Online used car retailer Carvana’s net losses narrowed in Q2 from $439m (£341m) to $105m (£81m). It also announced a deal to reduce its total debt by more than $1.2bn (£930m). More than 83% of unsecured notes maturing in 2025 and 2027 will be eliminated. The retailer now doesn’t have a meaningful note maturity until December 2028.
Shares surged 40% on the news.
AutoNation reports better than expected results; shares fall
AutoNation reported better-than-expected quarterly revenue last Friday thanks to strong new car demand that balanced a decline in used car sales. Aftersales revenue also grew 11% to $1.1bn (£860m). CEO Mike Manley said US demand remains strong but “I don’t think you’ll see margins at pre-pandemic levels this year”.
Shares fell 12.3% on the news.
STOCKWATCH
Closing prices on 21 July 2023 and weekly change
Lookers down 11.8% after Constellation withdraws support for Alpha Auto bid
Auto Trader Group 649.6p (+15.0p / +2.3%)
Caffyns 500.0p (n/c)
Halfords 216.6p (-3.6p / -1.6%)
Inchcape 768.0p (+13.0p / +1.7%)
Lookers 106.0p (-13.4p / -11.8%)
Motorpoint 98.0p (+1.2p / +1.2%)
Pendragon 17.78p (+0.34p / +1.9%)
Vertu 69.3p (-4.5p / -6.2%)
COMING UP
Wednesday, Motorpoint AGM
Wednesday, BRC shop price index
Thursday, Auto Retail Live technology in retail webinar – sign up now: https://tinyurl.com/2vkyv78w
Thursday, Inchcape interims
31 July, Consumer Duty implementation starts
MONEY MATTERS
Asda and Morrisons pay zero corporation tax
Asda and Morrisons paid zero corporation tax last year after being bought out by private equity. Profits have been reduced to losses, mostly due to interest payments on the new debts loaded onto their balance sheets. In the previous decade before the buy-outs, each paid an average of £200m of corporation tax a year.
Businesses held back by recruitment struggles
Employers would need the entire population of Birmingham twice over to fill every job vacancy, according to latest data from the Recruitment and Employment Confederation. There were 2.25 million job advertisements in early July, 53% more than a year ago. 193,000 of them were new job ad postings, and job ads are being left open for longer due to difficulties in finding people.
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