Auto Retail Agenda: 10 December 2018
09 December 2018
- LISTERS BUYS ADDITIONAL VW RETAILER
- CRYPTO CURRENCY SALES PORTAL GOES LIVE
- PRICE PUSH FROM USED DEMAND
- NEW IDEAS SHOWCASED AT NADA
- PICK-UPS NOW THIRD BIGGEST LCV SECTOR
- WORLD NEWS – MG back to Europe with EV
- STOCKWATCH – Plunge for Inchcape, gain for Lookers
- COMING UP – Auto Retail Live Profit Briefing
- LAUNCH DIARY – Mercedes B Class, Audi e-tron
- MONEY MATTERS – Festive spending cuts
- OUR BLOG – Pick-ups provide some much needed cheer
Listers buys additional VW retailer
Listers says all the current staff at a VW dealership will be retained and keep their jobs after expanding its footprint in the Midlands with the purchase of a seventh retail outlet.
The multi-franchise group has bought the former Arthur Prince dealership in Loughborough and it will join its six other VW sites with immediate effect.
A company spokesman said: “We’re excited to share the news that our Volkswagen world is expanding with the addition of Listers Volkswagen Loughborough. We operate six other Volkswagen sites across the Midlands so we’re very pleased to be welcoming a seventh. Previously owned by Arthur Prince Ltd, the dealership is located on Belton Road in Loughborough. The existing team are all staying within the business and become part of the ever growing Listers family.”
Crypto currency sales portal goes live
A crypto currency-based portal went live this week with more than 100 retailers and auto businesses listed and the company behind it says it has expressions of interest from many more.
London-based Auto Block says its site, autocoincars.com, is already populated with several hundred cars but says this is a drop in the ocean to the volume it fully expects to be added in the next few months.
A spokesman said: “There are six million crypto currency users in the UK and we know from dealers who have spoken to us that they are taking calls from people who want to buy this way. We are not converting retailers from traditional finance to ours but allowing them to service this new and fast growing way of buying and selling.
“We have been talking across the industry, from high-end retailers selling Lamborghinis and Ferraris to leasing companies and retailers who deal with customers looking at a monthly PCP. The interest is running at very high levels and our going live this week is just the first step.”
Price push from used demand
Demand has pushed average used values to near record levels and is expected to continue as retailers source stock now to service business early next year.
BCA’s Pulse Report shows average values rising £83 to £9,866 in November, the third highest figure on record. Year-on-year, the headline figure was up by £462, a 4.9% increase in average values.
New ideas showcased at NADA
The latest digital marketing ideas, slick solutions to your business challenges, hardware to make your dealership run better: all are going to be on display in the Expo halls of the NADA Show 2019.
Auto Retail Bulletin has joined forces with global automotive profitability experts, ASE, to make visiting the NADA Show easier than ever. You will see the very latest trends in auto retailing, first hand – and come back refreshed and better placed to tackle the challenges that 2019 will bring.
The NADA Show 2019 takes place in fantastic San Francisco, one of the world’s most exciting cities. The ASE trip is designed to make the most of your time, leaving the UK on January 23 and returning on January 28.
The NADA Expo will feature over 500 exhibitors showcasing business critical systems and tools for your dealership. Alongside the Expo there is the opportunity to attend practical best practice workshops facilitated by top industry trainers, hear keynote speakers and network with fellow retailers.
This is a great opportunity to improve your knowledge and future-proof your business. To find out more, follow this LINK or call Elizabeth Kenina on 0161 493 1930 or email: nada@ase-global.com
Pick-ups now third biggest sector of LCV market
Growth in demand for pick-up trucks has seen them take around 15% of the entire LCV market so far this year and they are now its third biggest sector.
In contrast to new cars the LCV market is proving resilient, down less than 1%, and pick-ups are emerging as a bright spot for their retailers.
WORLD NEWS
MG going back to Europe with EV
MG is to relaunch in Europe next year with an electrified version of its ZS SUV being sold as its first car on the continent since the last TF roadster in 2011.
VW planning more than £5 billion cost cuts by 2023
VW is aiming to have a 6% profit margin by 2022 on the back of a deep cost cutting and efficiency programme that will save £2.7 billion by 2020 and the same again by 2023. It will streamline its product range, force down production and administration costs.
WLTP still causing stock shortages
WLTP homologation progress is slow with less than two thirds of models being homologated by mid-November. Among the brands with an above average homologation rate are Abarth, Hyundai, Lexus, Kia, Peugeot, Suzuki, Land Rover, Jeep, Renault and Citroen.
STOCKWATCH
Closing prices at December 7 and weekly movement
BCA 206.0p (-9.0p)
Cambria 52.5p (n/c)
Caffyns 405.0p (n/c)
Inchcape 543.5p (-38.0p)
Lookers 98.2p (+7.2p)
Marshall Motor Holdings 156.0p (n/c)
Motorpoint 215.0p (+5.0p)
Pendragon 23.4p (-1.1p)
Vertu 34.8p (-2.2p)
COMING UP
Tuesday 11 December, 2pm. Auto Retail Live Profit Briefing. Speakers include Peter Vardy, managing director, Peter Vardy retail group, Stuart Miles CDK’s UK&I managing director and Lyn Howdon head of academy and learning at customer retention specialist Chrysalis Loyalty. To register click here
Wednesday 12 December: Free annual automotive law update webinar from Radius Law and The Motor Ombudsman. Topics include preparing for the January vehicle emission rules on showroom and printed materials and distance sales requirements. To register click here
January 24. The Great British Fleet Event. Masterclass Conference and four hour-long Masterclass sessions, covering urban fleets, EVs, technology and the future of fleet. (London)
LAUNCH DIARY
January. Facelifted Renault Kadjar SUV. From £20,595.
Mercedes-Benz B-class. Deliveries spring 2019. From £26,975.
Audi e-tron Launch Edition. 30 examples to slot in above lead-in model, ordering in Q1. From £82,240.
April 1. Kia e-Niro. EV with class-leading 282 miles range. From £32,995 after PICG.
MONEY MATTERS
Spending to drop this Christmas as budgets tighten
Christmas spending is set to dip for the second year running according to the quarterly Nationwide Spending Report which shows £8 in every £10 of the average salary of £28,400 goes on essential purchases.
Based on the analysis of nearly 710 million Nationwide customer payment transactions, its data shows that on average people spent £1,541 on living costs in Q3, around 81% of average income and a year-on-year rise of 8%.
Its seasonal poll of around 2,000 adults showed that 67% aim to rein in yuletide spending again this year.
OUR BLOG
Pick-ups provide some much needed cheer
There hasn’t been much in the way of cheer in the new vehicle market this year but let’s celebrate it where there is and turn the spotlight on the van sector, and specifically the fast growing pick-up market.
From being the utility vehicle normally seen on a building site they are now marketed as `lifestyle vehicles’, much as SUVs were a decade ago. Backed by a favourable tax regime (yes, they do exist) and some serious up-speccing from their manufacturers they are now making significant headway.
So much so that even in a strong LCV market (up 10% in November and down less than 1% year to date) they now take 15% of the orders. These are figures that should please both retailers selling them as new and those handling them in the used sector because pick-ups are becoming good and profitable business. Volumes are not huge, true, but look at the bottom line.
The UK has the biggest pick-up market in Europe and you have to think that some brands are well placed to have a natural fit into it. Jeep, anyone? Fiat already has its Fullback but the cupboard is bare at its sister company which strikes me as odd, given its 4×4 pedigree. Mercedes is getting in on the action with its X-Class and at the recent Los Angeles Auto Show several manufacturers were unveiling their ideas for the sector and it is clear that hybrids will be the next step in their evolution.
Even if a franchised retailer’s manufacturer doesn’t make them it may be worthwhile putting a few on the used forecourt.
Ditto with vans.
They may be the death of the high street but internet shopping and home delivery services from grocers and what have you are driving big sales in the lighter vans. Two thirds of all LCVs sales are in the 2.5 – 3.5 tonne range and in November alone there was a 13% growth.
The good news as we come to the close of what has been a somewhat turbulent year is that market forecasters are confident this demand will continue into 2019. I’m not sure how that works out given that vans are used by businesses and businesses are less than confident of events from March 29 but that’s what people at the coalface are saying.
John Swift
Editor
Auto Retail Agenda
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