• EV DISCOUNTS MOUNTING AS OEMS AIM FOR 22% MIX
• AUTO RETAIL LIVE BUSINESS BOOSTER
• CHIPPENHAM KIA ON SALE FOR £5m
• KIA EV EDUCATION AT RETAILERS
• US PUBLIC RETAILERS IN PROFIT PRESSURE
• 10 ASBURY RETAILERS FOR SALE
• STOCKWATCH
• COMING UP: Bank of England interest rate decision
• FCA TO UPDATE NON-FINANCIAL MISCONDUCT RULES
• CEO MENTAL HEALTH REFERRALS SURGE NEAR FILING DEADLINES

EV discounts mounting as OEMs aim for 22% mix

1 in 10 new EVs are being sold with a discount of 20%, new research from Auto Trader has revealed – to offset list prices that are, on average, 33% higher than ICE equivalents.

The research found average discounts have spiralled over the past 12 months, resulting in huge year-on-year changes in price as car makers aim to avoid swinging Government penalties for failing to hit 22% EV mix. For example, a Peugeot e-2008 had an average discount of 6.5% in April 2023; this has extended to 23.5% in 2024, for a YoY reduction of 18.6%.

Discounts on the Citroen e-C4, Vauxhall Corsa and Peugeot e-208 also now top 20%. Discounts also mean the Volvo XC40 is 17.4% cheaper YoY, while the BMW iX costs 18.9% less.

Auto Trader predicts discounts will increase in 2024 as the industry struggles to meet the ZEV Mandate.

Auot Trader’s Marc Palmer said home charging is viable for two in three motorists and the industry should underline the significant savings they can expect in running costs. Overnight charging can cost as little as 7p per kWh, “a fraction of the cost of fuel”.

He said that although ultra-fast rapid chargers can cost 80p per kWh, something that is frequently picked up in the media, motorists actually only need them for a fraction of their driving.

https://tinyurl.com/4szz89f9

 

Auto Retail Live Business Booster

Devonshire Motors’ Nathan Tomlinson, Hatfields’ Craig Petty and Real World Analytics’ John Hogan will discuss the state of the market on 22 May in the Auto Retail Live Business Booster webinar.

Topics will include what to do about subdued retail demand, how to handle pre-reg and overage stock, what can be done about rising business costs and how to work with OEMs on EV targets.

The session will be led by Auto Retail Live chair Mike Jones and the expert panel will also be available live to answer your questions.

* Sign up here: https://tinyurl.com/yz28rj8f

 

Chippenham retailer on sale for £5m

Chippenham Motor Company has been put on the market for offers in excess of £5m. Sanderson Weatherall is handling the sale of the site on Bumpers Way in Wiltshire.

It extends to 1.9 acres, with 25% building coverage, and was recently refurbished at a cost of £1.1m. It commands an annual rent of £300k, or £11 per square foot. There are more than 200 parking and vehicle display spaces.

The franchise agreements are Kia sales, service and parts, plus Seat, Peugeot and Citroen service and parts.

The retailer received a new 15-year lease from September 2023, subject to three-yearly uncapped RPI reviews.

Chippenham Motor Company has traded from the site for more than 20 years and, in 2019, celebrated 20 years representing the Kia brand. “In the beginning, we were only one of a handful of Kia dealers in the country,” said MD Adam Bailey at the time. “We have watched the brand grow into something amazing and we are proud to have been part of that journey.”

https://tinyurl.com/mwtbrtn3

 

Kia EV education at retailers

Kia retailers are offering free one-to-one advice sessions to help motorists learn about electric cars. Customers can book online across its UK retailer network, with topics covering the difference in driving an EV, plus understanding range and charging times. The sessions are complemented by an online myth-busting guide to EVs.

https://tinyurl.com/524z4x5f

 

 

WORLD NEWS

US public retailers in profit pressure

All six publically traded US auto retailers saw profits decline in Q1 – some by double digits. Asbury net income of $147.1m was down 19% year-on-year, AutoNation declined to $190.1m, Group 1 was down 6.7% to $147.9m, Lithia fell 28% to $165m, Penske declined to $216.2m and Sonic fell to $42m.

Retailers blamed reduced vehicle gross profit, rising expenses, increased floorplan costs and continued higher interest rates.

https://tinyurl.com/28c4r5f5

 

Asbury retailers for sale

Asbury Automotive is to sell 10 more retailers and a piece of unused real estate after divesting a Lexus Delaware store during Q1. It held $243m (£193m) in assets for sale as of 31 March. The Lexus sale was to comply with brand franchise agreements, but Asbury hasn’t reached a similar ceiling with other brands.

https://tinyurl.com/2p8xseh5

 

 

STOCKWATCH

Closing prices on 3 May 2024 and weekly change

Auto Trader Group 723.0p (+27.6p / +3.8%)

Caffyns 525.0p (n/c)

Halfords 149.4p (-2.0p / -1.3%)

Inchcape 763.0p (-31.5p / -4.0%)

Motorpoint 143.0p (+3.0p / +2.1%)

Pinewood 324.0p (+5.0p / +1.5%)

Vertu 71.9p (+2.7p / +3.8%)

 

 

COMING UP

Tuesday, BRC sales monitor

Thursday, Bank of England interest rate decision

Friday, UK GDP

15 May, Radius Law Annual Conference

 

 

MONEY MATTERS

FCA to update non-financial misconduct rules

The FCA is preparing an update of its code of conduct for staff sourcebook (known as COCON) for non-financial misconduct. There is speculation it may follow the Solicitors Regulation Authority (SRA), which “is notorious for how highly it upholds lawyers’ conduct – even in their personal lives”. This could even include monitoring staff’s social media.

One expert believes the FCA will try to copy the SRA “as far as it can” but another said the FCA “is introducing a degree of ambiguity, which is going to make it difficult for firms to apply in practice”.

https://tinyurl.com/rx2mzvtj

 

CEO mental health referrals surge near filing deadlines

Referrals of CEOs for mental health problems triple around the time of deadlines for filing financial results, a specialist clinic has revealed. “If a company is struggling, c-suite executives and company owners tend to ‘face the hard facts’ in the run-up to the results filing deadline,” said Paracelsus founder Jan Gerber.

During the pandemic, Bupa confirmed a link between financial stressors and the health of business leaders. The pressure to maintain their reputations “with complex networks of colleagues, investors, affiliates as well as their own families to consider” meant “many felt they must ‘keep calm and carry on’,” said Bupa medical director Dr Luke James.

https://tinyurl.com/8y7zuawb