25 February 2018

• RICHARD HARDIE RAPPED OVER JEEP SALE
• FCA RAMPS UP DIALOGUE WITH NFDA
• DONALDS GROUP READIES FOR IPSWICH EXPANSION
• RENAULT LAUNCHES FIRST EV-ONLY SHOWROOM
• HARLEY DEALERSHIP CREATES WINNING ‘ALLEY RAT’
• KEY GERMAN DIESEL COURT RULING DUE TUESDAY
• STOCKWATCH – Caffyns climb continues
• LAUNCH DIARY – which is the quickest street-legal sports car?
• MONEY MATTERS – Rising employment signals faster wage growth
• COMING UP – Tuesday – Inchcape results
• OUR BLOG – Hold the aces if you employ a gambler

Richard Hardie rapped over Jeep sale

Retailer Richard Hardie, has been on the receiving end of ‘guidance’ from Newcastle City Council’s trading standards officers, following a customer compliant over a nearly-new car’s previous owner history.

The buyers claim they believed it was an ex-demo car and were not told the Jeep Cherokee had three previous owners, something they discovered once they received the log book.

The buyers have now received a full refund and the car is on sale again at £16,500. The buyer also alleged the car had also broken down within days of purchase.

A council spokesman said: “We received a complaint from a consumer via Citizens Advice. The consumer had a grievance with a car she had purchased, which related to alleged false advertising in relation to the number of previous owners. We have worked with both the consumer and trader to rectify this problem, visiting and providing guidance to the trader on a number of occasions. We received confirmation on January 30 that a full refund had been issued, we have also now issued a written warning to the trader.”

Speaking to the Chronicle, Richard Hardie director, Nick Hardie, said: “We were advised on how to advertise the vehicle with the correct owners which we have now done. However, we have certainly not been issued a written warning.” He said the car – which had also been returned by a previous owner – was brand new when it first came to the dealership. Richard Hardie has branches in Sunderland, Durham, Ashington and Newcastle and holds franchises for Peugeot, Fiat, Abarth, Alfa Romeo and Jeep.

http://bit.ly/2owIRQL

FCA ramps up dialogue with NFDA

The NFDA has met recently with regulator, the Financial Conduct Authority, to cover topical issues relating to car finance. NFDA director Sue Robinson said she had caught up with senior officials for consumer credit, who wanted to know how they could communicate more effectively with the retail motor sector and specifically, franchised dealers.

She added: “Topics discussed included the importance of maintaining an ongoing dialogue with the FCA, lack of communication regarding the motor inquiry which has led to incorrect speculation by the press, consultants and finance houses.” This was the first of regular quarterly meetings to be held between the NFDA and the FCA.

In its 2017-18 business plan, the FCA said it would be looking to develop more understanding of car finance products and to assess whether the products cause harm to consumers. It added terminology used in the motor finance market “is not universal and may be confusing. We consider it essential that consumers understand the risks and particular features of the motor finance they are taking on.”

The FCA has also looked at commission deals relating to finance, the quality of consumer information, whether dealers are sticking to lending responsibly and potential conflicts of interest. An update on the FCA’s work in this area is expected in the first quarter of 2018.

Donalds Group readies for Ipswich expansion

Construction work has begun for East of England specialst, Donalds Group on two new showrooms in Ipswich. Directors, led by group chief executive Daniel Stone, gathered recently at the Futura Park business estate to carry out the traditional ground-breaking ceremony at the location for the two separate Mazda and Volvo brand premises.

Donalds Group has seven franchises across Suffolk, Cambridgeshire and Lincolnsire, and also deals in Kia and Alfa Romeo cars. It currently operates a joint Mazda and Volvo dealership in Ipswich, which will close once the new outlets are open.

http://bit.ly/2EPPcRI

Renault to open first EV-only showroom

Renault is opening its first purely electric vehicle showroom in a Stockholm shopping centre. The outlet will take orders, offer test drives and employ sales consultants. It also has zones where visitors can find information about charging infrastructure, local legislation and subsidies and electric mobility services.

Renault selected Sweden because there is strong support from the government, which offers incentives from government and Stockholm is also an emissions-restricted zone. Sweden offers subsidies of up to 40,000 krona (about £3,500) for buyers of battery electric vehicles as well as tax breaks and exemptions.

http://bit.ly/2opdcRY

Harley dealership creates winning ‘Alley Rat’

An East Midlands Harley-Davidson motorcycle dealership has been crowned winner in a custom motorbike competition.

Uppingham-based Sycamore Harley-Davidson transformed the Sportster model into a motorbike. The bike was designed to look like it was from the 70s era, as part of the Battle of the Kings competition, which is run by Harley-Davidson. The team had a budget of £5,500 and six weeks to transform the motorbike – but completed it in just three.

http://bit.ly/2opxqLD

WORLD NEWS

Key German diesel court ruling due on Tuesday

A Germany court is set to rule on 27 February on whether cities must ban diesel cars to reduce air pollution, with the judgement viewed is viewed as instrumental in shaping future demand for diesel technology across Europe.

There are two cases involved in ruling and relate to the cities Stuttgart and Dusseldorf versus environmentalists. The cities are appealing lower-court rulings that said bans on driving diesel cars must be considered as part of any plan to bring down levels of nitrogen dioxide

https://bloom.bg/2BMgSES

STOCKWATCH

End of week share prices

(As at market close, Friday; prices for previous week in brackets)

BCA Marketplace 171.20p (+5.40p)

Caffyns 430.00p (+35.00p)

Cambria Auto 63.50p (no change)

Inchcape 698.00p (+24.50p)

Lookers 92.10p (+2.20p)

Marshall Motor 151.50p (+0.50p)

Motorpoint Group 220.00p (+4.00p)

Pendragon 26.00p (+0.20p)

Vertu Motors 44.50p (+0.10p)

LAUNCH DIARY

Peugeot’s new 508 will be available from summer 2018.

Lotus’ 3-Eleven 430, described as the quickest street-legal sports car, is limited to a 20 vehicle launch worldwide and is priced at £102,000.

Volvo’s new V60 five-door estate will be available to order autumn 2018, priced £31,810.

The Ford Edge has been facelifted and launches this year.

MONEY MATTERS

Rising employment signals faster wage growth

Recent labour market figures show that rising employment is leading to wage growth. Average weekly earnings grew by 2.5%, excluding bonuses, in the fourth quarter of 2017, up from 2.3% in the three months ending in November, according to the Office of National Statistics.

This was the fastest rate of pay growth for a year, however, wages still fell 0.3% compared to the same period in 2016, after adjusting for inflation.

http://on.ft.com/2CGWv8Q

COMING UP

Monday – Nationwide House Price Index, BBA Mortgage Lending Figures

Tuesday – Inchcape annual results

Wednesday – GfK Consumer Confidence

OUR BLOG

Hold the aces if you employ a gambler

Adam Lamb, John Pace and Christopher Barber were all in court in recent weeks – three men with three things in common – all sold cars for a living, defrauded their employers and had gambling addictions.

Is it just coincidence they worked for dealerships? There are arguments to suggest the job is certainly conducive to addiction.

Sales is competitive, with employees often feeling they’re head to head with peers, with performance – good or bad – out in the open. Gambling can be a distraction if things aren’t going well and a ‘reward’ if they are. This tends to be more of a problem for men, While a generalisation, men tend to be more hedonistic risk-takers. They also may be more into sport and football, for example, has a close connection with betting. Men are also the biggest users of online casinos and ubiquitous betting shops which often stay open late and house notorious fixed-odd terminals that can consumer hundreds of pounds in minutes,

Top sales people in dealerships aren’t in the same pay league as top footballers – themselves noted for their propensity to gamble – they’re better off than many other retail workers and so in a position to gamble frequently.

Gambling can be fun but can also ruin lives and is unwelcome for any business too. All too often, it’s a secretive habit, only uncovered once serious fraud has occurred.

Some actions an employer can take include:

Banning access to gambling platforms on work computers and phones and making it clear why this is happening – ensure there is a clear ‘no gambling’ policy at work.

Have workplace posters giving helpline numbers along with guidance to help staff identify whether they are at risk – being open this is a common problem may encourage someone to seek help.

Be aware for gambling indicators – although screening staff for CCJs may not be something a business wants to do, it could reveal problems.

Have stringent financial controls.

Employers may also want to consider offering counselling and other support to someone who has the courage to ask for help.

Team building events should not be held at place where gambling is encouraged – ie greyhound racing.

It’s said over two million people have a problem gambling habit – but this is only guesswork, most will know someone who gambles heavily or that their own addiction is hard to control.

While regulators are taking action in banning advertisements that say ‘bet now’ and where ‘free money’ is offered to bet with, these measures won’t make much difference. There is a powerful pro-gambling lobby in the UK which means the temptations are going to remain and unfortunately, cases where dealership sales staff end up in court will also remain a fixture too.

Rachel Gordon

Editor

Auto Retail Agenda

Tags: Donalds, FCA, NFDA, Renault, Richard Hardie