09 June 2019

• HYUNDAI PLANS TO REPEAT BREXIT PREP
• RETAILERS CARRYING 15% MORE USED CAR STOCK
• CLEAN AIR ZONE FORCES RELOCATION FOR LISTERS
• INTEREST RATE RISE LOOMING
• GROUP 1 AUTOMOTIVE LAUNCHES ONLINE SALES PLATFORM
• TOYOTA NEEDS CHINESE HELP TO HIT EV TARGET
• STOCKWATCH – Investors back Inchcape and Motorpoint
• LAUNCH DIARY – Kia XCeed, Vauxhall Corsa-e, Hyundai Kona SUV hybrid
• COMING UP – Motorpoint full year results, inflation index, BoE interest rate decision
• MONEY MATTERS – Record numbers in workplace pensions
• OUR BLOG – What is the true picture on used car values?

Hyundai plans to repeat Brexit prep

Hyundai is planning to repeat its Brexit preparation in case the UK leaves the EU without a deal later this year. The move will see the brand increase national stock levels by 50% in the run up to the end of October.

Speaking to sister publication Auto Retail Bulletin Ashley Andrew, Hyundai managing director, said: “Most manufacturers looked at their stock before 29 March. We built up a three month supply for a ‘what if’ scenario. In terms of October we are looking at replicating that, it makes good business sense. It should be easier as we’ve got more time to plan and that would take us to the end of the year. And once you’ve got to the start of a new year you can then look at what happened and how we need to respond.

“We typically run about two months’ stock.”

* Read the full interview with Ashley Andrew in this month’s Auto Retail Bulletin where he talks about Agency agreements and online retailing.

Retailers carrying 15% more used stock

Retailers are carrying 15% more used stock now than a year ago according to Motors.co.uk’s latest Market View. It says that on average franchised dealers are holding 65 units per site against 61 in May 2018, independents 51 (43) and supermarkets 1,905 (1,629).  Stock turn times at the franchises have increased by 10%, taking an average of 44 days to sell against 40 for independents and just 28 for supermarkets.

Dermot Kelleher, head of marketing and business intelligence, said dealers are also having to fight harder for stock as businesses delay replacing fleets until the post-WLTP picture on BiK becomes clear: “We know many businesses are extending company car replacement cycles until they know how the WLTP emission rules will impact the benefit-in-kind tax regime and this continues to put pressure on supply. We expect competition for ready to retail stock to remain fierce over the coming months.”

Clean air zone forces relocation for Listers

Listers has moved a workshop out of Birmingham city centre into the suburbs so customers can avoid the £8 a day charge to enter the city’s clean air zone which comes into force on 1 January.

A company spokesman said: “Due to uncertainty around the Birmingham Clean Air Zone we will be merging our Audi Authorised Repairer business in the city centre with our Audi Birmingham site in Solihull. Moving forward all aftersales work in Birmingham will be undertaken at Listers Audi Birmingham, Solihull.”

Leeds is also due to start a clean air zone from January and others in cities such as Bath, Sheffield, Edinburgh, Dundee and Aberdeen, Bristol, Derby are also considering similar zones. The Government has told civic authorities in Bolsover, Bradford, Portsmouth, Broxbourne, Newcastle-under-Lyme, Stoke-on-Trent, Leicester and Liverpool to submit plans for schemes by 31 October.

Interest rate rise looming

Businesses will be watching the Bank of England carefully next week to see if governor Mark Carney adds any more detail to his previous warnings that interest rates will probably go up later this year.

In the Bank’s annual report, published last week, he wrote: “The Committee is likely to have to raise interest rates further in order to keep inflation at target. Any rises in interest rates are expected to happen at a gradual pace and to a limited extent.”

This week BoE chief economist Andy Haldane backed a rise soon, saying: “The time is nearing when a small rise may be prudent to nip any inflationary rise in the bud.”

The Monetary Policy Committee which sets the interest rate will publish its next decision at 12 noon on Thursday, 20 June.

WORLD NEWS

Group 1 Automotive launches online sales platform

Group 1 Automotive has launched an online sales system for customers in the US that allows financing, trade-in valuations, adding options, warranties and having it delivered.

The AcceleRide scheme is currently available at 79 dealerships and will be rolled out to all 116 group sites in the US by the end of the summer.

Toyota needs Chinese help to hit EV target

Toyota wants half its global sales to be EVs by 2025, five years ahead of schedule, but says it will be reliant on Chinese battery makers to produce enough power packs. Shigeki Terashi, executive vice president, said EV demand is higher than expected but Toyota may not be able to build enough lithium-ion batteries to meet it.

https://reut.rs/2EU3DTq

STOCKWATCH

Closing prices at 7 June and weekly movement

Investors back Inchcape and Motorpoint

BCA 190.6p (+9.6p)

Cambria 62.5p (-1.0p)

Caffyns 410.0p (n/c)

Inchcape 615.5p (+29.5p)

Lookers 83.0p (-2.9p)

Marshall Motor Holdings 165.0p (-1.5p)

Motorpoint 220.0p (+16.0p)

Pendragon 23.4p (+0.5p)

Vertu 40.3p (-0.3p)

LAUNCH DIARY

26 June: Kia XCeed crossover. Prices tbc.

Vauxhall Corsa-e. £500 reservation for EV supermini, production starts January 2020. From £26,490 including PICG.

Hyundai Kona SUV petrol/electric hybrid. Deliveries from August, prices TBC.

COMING UP

Tuesday: Motorpoint full year results

19 June: Consumer price inflation report

20 June: Bank of England interest rate decision

MONEY MATTERS

Record numbers in workplace pensions

Record numbers of staff are saving through a workplace pension with almost nine in 10 employees in a scheme and more than £90 billion now invested.  The Department for Work and Pensions said 87% of eligible workers in the private sector were in a company pension in 2018, up from 84% in 2017.

The introduction of automatic enrolment in 2012 is credited with pushing up numbers which had dropped to as low as 55% at the turn of the decade.

CLICK HERE TO READ OUR BLOG – What is the true picture on used car values?

John Swift

Editor

Auto Retail Agenda

Tags: CDK, Clean Air Zone, Group 1 Automotive, Hyundai, Inchcape, listers, Motorpoint