Auto Retail Agenda: 6 July 2020
05 July 2020
- Arnold Clark leads retailers in Sunday Times Top Track 100
- New car sales decline in Europe
- NFDA Dealer Attitude Survey in online first
- Auto Trader reports record audience
- Darkside is sole KTM UK retailer
- New JLR CEO this week?
- Italy is getting a scrappage scheme
- STOCKWATCH – Lookers shares suspended
- COMING UP – June new car registrations, Halfords results
- Furlough pay-back risk for redundancies?
- Chancellor’s summer statement on Wednesday
Arnold Clark leads retailers in Sunday Times Top Track 100
Arnold Clark has ranked seventh in the Sunday Times Top Track 100 of private companies with the largest sales. This year’s league table is the 19th edition and is a Covid-19 edition that shows how private companies have responded during the crisis.
The Glasgow-based retailer, which reported 5.3% annual growth on sales of £4.4bn, was placed ahead of Dyson and JCB in the top 10. Chemicals giant Ineos topped the table.
Auto retailers were represented strongly further down the table. JCT600 was placed 52nd, Lookers was 54th, Greenhous was 57th, Stoneacre was 75th, John Clark was 92nd and Park’s Motor Group placed 96th – ahead of motorway services giant Moto.
New car sales decline in Europe
New car registrations in Germany were down 40% in June, to a 30-year low. The VDA predicts the German market will fall 23% in 2020. Sales in Spain also fell 36% year on year, and they were down 23% in Italy. France was the only major new car market to record growth, with a 1.2% gain the first growth in 2020.
The SMMT releases UK new car registrations figures for June today (Monday) at 9am. The organisation has forecast a 27% fall in new car sales for 2020, the worst year since 1993. Auto Retail Agenda sources claimed June’s new car registrations were likely to be down one third on the same month last year.
NFDA Dealer Attitude Survey in online first
The summer 2020 NFDA Dealer Attitude Survey is the first to be conducted entirely online. Unique links are being distributed to retailers now (those who haven’t received them should check their spam or email jordi.skilbeck@rmif.co.uk). The survey contains an additional questionnaire about EVs and plug-in vehicles: the NFDA says the information will enable it to “lobby manufacturers about dealer concerns”. The survey closes on Friday 31 July.
Auto Trader reports record audience
Auto Trader’s audience reached 64 million in June 2020, up 29% on 2019.
Used car prices on the platform also grew 3.7% in June 2019. This is the largest monthly increase since January 2019. The biggest gain was for cars aged 5-10 years, which rose 7.0%, with cars below 5 years up 3.0%. It is the third consecutive month of used car price growth and means the average used car now costs £13,949.
Darkside is sole KTM UK retailer
KTM has appointed Burnely’s Darkside Developments as its sole UK retailer and distributor. The company is planning a UK-specific website and aims to sell six to 12 new cars a year, and deliver servicing, repair and aftersales. KTM is to launch a new track day car in 2021 and Darkside is planning a service where it stores cars and runs them for owners at track events.
WORLD NEWS
New JLR CEO this week?
Jaguar Land Rover has a shortlist of four people to succeed CEO Sir Ralf Speth and announcement could be made this week. The FT said the candidates include JLR engineering director Nick Rogers, former BMW exec Klaus Frohlich, former Audi CEO Bram Shot and Audi SUV production head Fred Schulze. Sir Ralf steps down in September to become non-exec vice chairman of JLR.
Italy is getting a scrappage scheme
Italy is the latest European market to launch a government-backed new car scrappage scheme. Buyers of Euro 6-compliant petrol and diesel cars costing less than €40k (£36k) will get €3,500 (£3,150) off, if the scrap a car aged 10 years or older. The initiative will run from August to December.
STOCKWATCH
Closing prices on 3 July 2020 and weekly change
Lookers shares suspended
Auto Trader Group 522.2p (-23.6p / -4.4%)
Cambria 51.1p (-1.4p / -2.7%)
Caffyns 242.0p (-18.0p / -7.1%)
Halfords 173.4p (+22.0p / +13.5%)
Inchcape 464.8p (-24.0p / -5.0%)
Lookers 21.0p (+1.2p / +5.8%)
Marshall Motor Holdings 119.0p (-3.5p / -2.8%)
Motorpoint 250.0p (-13.0p / -5.0%)
Pendragon 9.8p (+0.59p / +6.2%)
Vertu 24.1p (-2.9p / -11.3%)
COMING UP
Monday, June new car registrations
Tuesday, Halfords final results
Wednesday, summer statement from Chancellor
Friday, UK GDP
MONEY MATTERS
Furlough pay-back risk for redundancies?
The Treasury last week reworded the purpose of the Coronavirus Job Retention Scheme to stress it is “integral” furlough money is “used by the employer to continue the employment of employees”. Some businesses now fear this could force them to pay back months of wages. Huw Merriman MP has tabled an urgent question to the Treasury for clarification on the changes.
Chancellor’s summer statement on Wednesday
The Chancellor will present a summer statement on Wednesday to help the UK economy recover as lockdown restrictions are lifted. Measures could include VAT cuts for specific sectors, and cuts to national insurance contributions – potentially for those under 30 to boost job opportunities for young people.
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