16 September 2018

 

• PERRYS TO SELL SOUTHERN DEALERSHIP TO TIGHTEN REGIONAL FOCUS?
• BOWKER GROUP USES LOCAL TALENT FOR PORSCHE CENTRE
• MG APPOINTS DIGITAL CHIEF
• UK’S BIGGEST INDEPENDENT VAN RETAILER GROWS AGAIN
• USED VAN RETAILER EXPANDS WITH £9 MILLION BANKING FACILITY
• CRYPTO CURRENCY CAN BOOST RETAILERS PROFITS – CLAIM
• TWO TECH COMPANIES IN SUNDAY TIMES GROWTH LIST
• JOIN US AT NADA IN SAN FRANSISCO
• WORLD NEWS – Ford uses gaming for car launch, PSA raises used car targets
• STOCKWATCH – gains for Caffyns
• MONEY MATTERS – crypto crash warning
• COMING UP – marketing webinar
• LAUNCH DIARY – Nissan Qashqai, Ford Galaxy/S-MAX, Kia estate, Mercedes GLE, DS EV
• OUR BLOG – are retailers investing for EVs?

 

Perrys to sell southern dealership to tighten regional focus?

Perrys Group is in the process of selling its Mazda operation in Portsmouth to south of England Snows group, Auto Retail Agenda understands. The takeover is expected to be completed next month and it thought to be part of moves by the two groups to concentrate on their preferred geographic coverage.

The Perrys sale comes as the group published its results for 2017, which saw pre-tax profits fall significantly as it invested in property and IT.

Reporting pre-tax profit of £5.7 million against £16.7m in 2016 and turnover of £633m against £661m, its directors said in the Strategic Report: “The company has a strategy of investing in freehold properties and in 2017 two further freeholds were acquired (Nelson Citroen and Blackburn Mazda). The directors consider that owning the freeholds gives certainty over the future of the dealership locations and creates shareholder value.”

It is also spending on its DMS, saying: “The new system (CDK Drive) is an upgrade to current systems and the directors are confident (it) will lead to operational benefits” adding that it has spent on its Business Development Centre and Aftersales Contact Centre with what it believes are industry leading support systems. Further efficiencies and cost cutting should come through the roll-out of VOIP (Voice Over Internet Protocol) telephone system throughout all its sites.

It also noted the impact of extra costs such as the apprenticeship levy, higher pension contributions, the increased minimum wage and GDPR.

 

Bowker Group uses local talent for Porsche centre

Bowker Motor Group has continued its policy of using local companies whenever possible by signing a contract with a neighbouring builder for its new Porsche retail centre due to open next spring.

Lancashire-based Bowker has appointed Warden Construction Limited of Preston to build the new 43,000 square feet Porsche Centre in the city. Earlier it used Preston architects, Cassidy and Ashton, for the designs.

Demolition which began in July has now been finished so construction can start on the centre which will have a 35 car showroom, 13 bay workshop, two customer handover bays and EV charging points.

Paul Bowker, chief executive, said: “Wherever possible, we prefer to work with Lancashire companies.”

 

MG appoints digital chief

MG Motor UK continues to strengthen its top tier management by appointing Chris Richards as its Digital & Social Media Manager. Chris has worked for McLaren Automotive and FCA and will now be responsible for social media and digital campaigns, help MG retailers use digital tools and social media platforms including Facebook, Twitter, Instagram, LinkedIn and YouTube.

Daniel Gregorious, head of sales & marketing, added: “We have made a number of strategic appointments so far this year with Chris being the latest. We are thrilled to welcome him to the family and look forward to his positive influence helping us to achieve our goals.”

 

UK’s biggest CV retailer grows again

The country’s biggest independently-owned commercial vehicle retailer, Imperial Commercials, has become even bigger after buying Cheshire based DAF service centre, AM Bell, after directors Stella Bell and Mick Cope retired.

All the staff are being retained and the business will be re-named Imperial Commercials Macclesfield.

Steve Affleck, regional director for Imperial Commercials’ Stoke-on-Trent region, said: “This acquisition has allowed us to expand our footprint into a key area. The business is well established and already boasts many loyal DAF customers, and we will continue to deliver those high service levels to which they have become accustomed.”

 

Used van retailer grows with £9 million banking facility

Used van retailer Auto Capital has bought London’s biggest indoor showroom after securing £9 million funding from Metro Bank to grow its business.

The Stanmore facility can display more than 300 vehicles and the working capital facilities will also support its day-to-day business operations and finance new stock.

Mark Stokes, managing director, commercial banking at Metro Bank said: “We’re delighted to have helped Auto Capital with the purchase of its new premises in Stanmore. Since it launched in 2007, Auto Capital has made its mark as a strong-performing trading business, providing quality commercial vehicles across the UK.  We look forward to assisting with their continued growth over the years to come.”

 

Crypto currency can boost retailers’ profits – claim

A London firm says smaller retailers can make more profit per unit with a new sales platform it plans to launch using blockchain technology.

Auto Block is setting up a new crypto currency specifically for dealers – AutoCoin – which it predicts will become the industry standard virtual asset. Retailers can advertise for free and take advantage of lower finance costs than traditional routes.

Unveiling its Q4 plans, the company says: “AutoBlock will revolutionize the automotive industry and make it transparent so sales and purchases can take place without mishaps. A car sales portal for car dealers that accept the AutoCoin to advertise their stock free of charge, opening new markets for them. Initially, prestige, performance and classic cars being transacted across the globe using AutoCoin, followed en masse by volume car dealers.”

https://bit.ly/2Mr55gX

 

Two tech companies in The Sunday Times growth list

Two tech-based car sales platforms are in the top 25 of The Sunday Times’ 200 fastest growing privately owned technology companies.

Carwow was ranked 17th with a 147% growth over the past 3 years. Its website lets buyers choose from a network of retailers and has generated car sales of more than £2 billion. It has opened offices in Paris and Munich and plans to open in Spain.

Three places behind is The Car Buying Group, the Wakefield-based online seller set up to digitalise the auction sector, with growth of 141%. It gives users quotes for their car which is then collected free of charge by partner companies and its software learns how to improve the accuracy of its quotes.

 

Join us at NADA in San Francisco

Auto Retail Agenda is joining forces with global automotive profitability experts, ASE, to promote their annual trip to the NADA Show in January 2019.

By visiting NADA Show 2019 you will see the very latest trends in auto retailing, first hand. Recent shows have witnessed the launch of self-service check-in kiosks, plans for dealers to cash-in on self-driving cars and the growth of Facebook Marketplace as a major sales tool, plus many more great profit making ideas.

There is the opportunity to attend practical best practice workshops facilitated by top industry trainers, hear keynote speakers and network with over 500 exhibitors showcasing business critical systems and tools for your dealership.

To find out more about the Auto Retail Network/ASE trip click you can click  https://bit.ly/2NeNpKJ

Link: https://www.ase-global.com/events/nada-show-2019/

 

 

WORLD NEWS

Ford uses gaming for car launch

Ford will spend more on marketing with the gaming world after launching the new Ranger Raptor at Gamescom within a 4D race simulator.

Michael Baumann, Ford’s executive director of communications and public affairs for Europe, told Marketing Week that gaming and some of its cars have `a natural overlap’, adding: “This audience is very receptive to being sold to this way as long as you don’t make this a selling proposition and an engaging experience instead.”

He said the Gamescom event will not be a one-off.

https://bit.ly/2NYSanZ

 

PSA raises target

PSA wants up to a third more sales and increased profit from its second hand cars as part of the company’s broader `Push to Pass’ strategic plan for up to 2021.

Marc Lechantre, head of PSA’s second-hand cars unit, said the company is targeting 600,000 sales this year and has set a target of 800,000 by 2021.

He said PSA was on track to lift used car profits by a multiple of four.

https://reut.rs/2NdSnHW

 

 

STOCKWATCH

Closing prices at Friday September 14 and weekly movement.

BCA 218.5p (-1.5p)

Cambria 53.5p (-1.5p)

Caffyns 425p (+19.9p)

Inchcape 667.0p (-4.5p)

Lookers 110.6p (+5.6p)

Marshall Motor Holdings 156.0p (-9.0p)

Motorpoint 230.0p (-1.0p)

Pendragon 24.7p (-0.5p)

Vertu 47.0p (-1.8p)

 

LAUNCH DIARY

September: Nissan Qashqai with more powerful 1.5-litre diesel

Ford S-MAX and Galaxy with improved EcoBlue diesel engines and feature upgrades.

Q1 2019:

Estate version of new Kia ProCeed

Second gen Mercedes-Benz GLE SUV with hybrid option. Prices tbc.

H2 2019 DS 3 CROSSBACK E-TENSE. 100% electric hatchback with 180+ mile range.

 

COMING UP

September 20:  Marketing Week webinar on pros/cons of tech-based marketing. From 10 am.

 

MONEY MATTERS

Crypto collapse

The collapse in crypto currencies which has seen £490 billion lost since January is now worse for investors than the dot.com bubble of 2000 as financial analysts say many will lose their money.

Neil Wilson, chief market analyst in London for Markets.com, a foreign-exchange trading platform, said: “It just shows what a massive, speculative bubble the whole crypto thing was as many of us at the time warned. Until you can pay your taxes in cryptos, it’s just a pointless investment vehicle. Some people will make loads of money but most won’t.”

https://bloom.bg/2x4R2J1

 

OUR BLOG

Are retailers investing for EVs?

One way or another electric/hybrid cars have been in the news a lot of late and focused attention on what we all know is just around the corner but I wonder if there is a danger of trying to build a house without foundations.

This week Theresa May promised £106 million to the sector, vacuum cleaner and hand dryer manufacturer Dyson made headlines when it showed plans for a 10 mile test facility for its cars due in 2021 (although it won’t reveal any plans for retailing them and yes, I did ask), and more street lamps are being adapted as recharging points.

It hardly takes a genius to see that five years from now the motor trade will look very different but I wonder, amid all this government investment and big corporate finance, if something is being overlooked.

There are two layers of bedrock in the car industry. One is that manufacturers must make products people want to buy but that won’t be a problem with EVs; the other is that retailers must sell and service them and here there might be a bigger issue.

EVs are not just another new model for the sales execs to launch, retailers can’t just have a weekend event in their showroom with some canapes and Amazon vouchers for anyone taking a test drive. These cars and vans are a revolution and buyers need educating on how they can fit into their lives, all the way from purchase to disposal.

Governments and huge businesses may have money to spend but do the smaller, privately owned retailers? At a time when margins, profits and turnover are being squeezed, is there spare cash to train the sales and service teams and to invest the eye watering amounts needed in the workshops. I don’t see or haven’t read of many saying they are spending precious resources here, or banks increasing the credit facilities for them to do so.

And those are the franchises. What about the small independents catering for the used car sector, without which there is no new car market? Some are but from what I hear, not everyone is or can.

Of course EVs will soon dominate the market but there seem to be a few pieces of the jigsaw not yet in place. You build a house from the foundations up….

 

John Swift

Editor

Auto Retail Network