Auto Retail Agenda: 18 September 2023
17 September 2023
- COULD HALFORDS’ LATEST ANTI-DEALER ADS FACE ASA CHALLENGE?
- RETAILERS TELL NFDA CHARGING IS NOW BIGGEST EV BARRIER
- ‘GREEN SHOOTS’ AS USED EV PRICES STOP DECLINING
- ASHLEY ANDREW STEPS IN AS ANDREW PILKINGTON LEAVES GENESIS
- LOOKERS’ DUNCAN McPHEE LIVE THIS WEEK
- US RETAILERS LAUNCH STRIKE PLANS
- CAZOO SHARES BACK UNDER $1
- STOCKWATCH: Lookers takeover bid approved for 6 October
- COMING UP: Auto Retail Live, Bank of England interest rate decision
- TRIPLE LOCK WILL PUSH UP STATE PENSION AGE
- CBI IN EMERGENCY CASH CALL
Could Halfords’ latest anti-dealer ads face ASA challenge?
A Halfords advertising campaign telling customers they may be “paying over the odds for repairs” could be challenged through the Advertising Standards Authority if it has been selective with the comparisons it’s made.
The high-profile ‘Dealer or No Dealer’ campaign attacks franchised retailers by highlighting that cheaper repairs using OEM-verified parts, which do not invalidate warranties, are available.
Chief executive Graham Stapleford said research showed motorists could save more than 50% on repairs by using Halfords instead of franchised retailers.
Iain Larkins, director of Radius Law, says it remains to be seen whether the punchy campaign is a fair comparison – and if Halfords has been selective with its comparisons, it could be in trouble again with breaching advertising rules.
“Advertisers have a legal obligation to ensure that they do not mislead consumers and that includes an obligation to not omit material information,” he said.
“In 2012, Halfords was reprimanded by the Advertising Standards Authority for a similar campaign because the comparisons it made were not on a like-for-like basis.
“I suspect Halfords will be challenged about its new campaign or, at least, face some retaliation advertising.”There are other benefits of using an authorised retailer too, added Iain, particularly access to free warranty work.
Retailers tell NFDA charging is now biggest EV barrier
A new survey of NFDA members reveals retailers believe the UK’s below-par electric car charging infrastructure is now the biggest barrier to reaching the 2030 phase-out of petrol and diesel cars. Nearly 9 in 10 of franchised retailers say it is affecting the deadline “a great deal”.
It means the cost of an electric car is no longer seen as the biggest obstacle to reaching the 2030 target.
The survey was part of the NFDA’s submission to the House of Lords Call for Evidence inquiry.
“The survey addresses some of the key challenges that are impacting the transition to electric from a dealer perspective: charging infrastructure, attaining price parity between EV and ICE, and the regional disparity in preparation and investment,” said NFDA chief executive Sue Robinson.
“With 68% of dealers strongly disagreeing that the government is doing enough to support dealers, NFDA calls on immediate action… if we want to achieve deadline targets together.”
The survey, shared exclusively with Auto Retail Agenda, also found that 83% of retailers believe the legislation will lead to a decrease in profitability, sales and service revenue.
‘Green shoots’ as used EV prices stop declining
Used electric car prices have grown month-on-month for the first time in a year during September, latest Auto Trader Retail Price Index data revealed exclusively with Auto Retail Agenda shows. Used EV demand has also outpaced supply for the first time since July 2022 – and the rate of growth in demand for EVs is now running at its highest-ever rate.
Ashley Andrew steps in as Andrew Pilkington leaves Genesis
Genesis Motor UK is now reporting in to Ashley Andrew, president of Hyundai Motor UK, as MD Andrew Pilkington has left the business. A successor will be announced in due course, a spokesperson told Auto Retail Agenda, “and operations will continue as normal”.
In July, Genesis announced its UK retail partners as part of a switch from direct sales to the agency model. The plan is being masterminded by Genesis Motor Europe MD Lawrence Hamilton – who explained the strategy back in March to Auto Retail Bulletin.
Lookers’ Duncan McPhee live this week
This Tuesday’s Auto Retail Live Business Briefing will see Looker’s Duncan McPhee, eStar Truck and Van’s Steve Bridge and Auto Trader’s Marc Palmer all give their views and insight into the state of the UK marketplace and what’s expected to happen in auto retail in the next few months.
The free briefing starts at 2pm on Tuesday 19 September and those looking for a competitive advantage should join the 40-minute session – which includes the opportunity to ask questions to the panel. Sign up here: https://bit.ly/45NcHUo
WORLD NEWS
US retailers launch strike plans
Retailers in the US are putting contingency plans into action as the UAW union launched strike action against all three Detroit OEMs on Friday. Plants producing in-demand vehicles in short supply walked out, with one retailer saying they’ll start to feel the impact in just two to three weeks.
Some retailers have already been stockpiling vehicles, “literally taking every unit available from the automakers”. Others have been sourcing inventory from other areas of the country, and many are holding on to used cars rather than wholesaling them in case extended strikes boost the used vehicle market.
Cazoo shares back under $1
Cazoo shares last week closed back under $1. On the NYSE, shares have to trade at more than $1 a share for 30 consecutive days or risk being delisted. In February, Cazoo carried out a reverse stock split at a ratio of 1-for-20 to boost its share price, which was trading at 24 cents.
Shares tipped back $1 in after hours trading, to $1.03.
STOCKWATCH
Closing prices on 15 September 2023 and weekly change
The FCA has approved Alpha Auto Group’s takeover of Lookers, through its bidding vehicle Global Auto Holdings. It is expected to become effective on 6 October.
Auto Trader Group 619.4p (+17.2p / +2.8%)
Caffyns 515.0p (n/c)
Halfords 197.2p (+4.7p / +2.4%)
Inchcape 792.5p (+26.5p / +3.4%)
Lookers 129.4p (+0.8p / +0.6%)
Motorpoint 91.0p (-1.0p / -1.0%)
Pendragon 18.48p (+0.2p / +1.0%)
Vertu 66.1p (-1.1p / -1.6%)
COMING UP
Tuesday, Auto Retail Live September business briefing. Sign up here: https://bit.ly/45NcHUo
Wednesday, CPI and RPI
Thursday, Bank of England interest rate decision
Friday, retail sales
Friday, GFK consumer confidence
6 December: NFDA Driving Digital: Special Edition. Sign up here: https://tinyurl.com/mt2y378d
MONEY MATTERS
Triple lock will push up state pension age
The state pension is on track to rise by up to 8.5% next spring, after increasing 10.1% this April. Each percentage point rise costs the government £1bn and the state pension bill is now over £110bn – half of all government benefits spending.
Experts are now calling for the triple lock to be scrapped to stop the state pension age from rising. It is already on track to rise from 66 to 67 in 2026, and legislation is in place for it to rise to 68 between 2044 and 2046 – but the government wants this to happen by 2039.
Every time the state pension age increases by a year, the government saves £5.5bn.
CBI in emergency cash call
The CBI is racing to raise £3m from its remaining members ahead of its annual meeting on Wednesday. It wants members to shore up its finances while it explores a merger with MakeUK. HSBC is assisting with the corral for cash.
Tags:
Andrew Pilkington, ASA, Ashley Andrew, Auto Trader, Cazoo, CBI, EV, Genesis, Halfords., Iain Larkins, Lookers, NFDA, pensions, Sue Robinson 
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