• EXCLUSIVE: AUTO TRADER SAYS DEMAND ‘ABOVE EXPECTATIONS’
• MARSHALL CHAIR JOINS ASTON MARTIN BOARD
• PORSCHE RETAILER IN COVID OUTBREAK
• IRELAND IN TOP RESTRICTIONS UNTIL AT LEAST MARCH
• 1 IN 2 EU RETAILERS IS RESTRICTED
• UK APPLIES TO JOIN TRANS-PACIFIC PARTNERSHIP
• STOCKWATCH – Lookers relisted, rises 61% from 21.0p suspension price
• COMING UP – Bank of England interest rate, January new car registrations, Group 1 results
• BUSINESS RATES WARNING
• LADY PHILOMENA CLARK A TOP 10 TAXPAYER

Exclusive: Auto Trader says demand ‘above expectations’

UK auto retailers performed above expectations in January despite the sudden imposition of new Covid lockdown restrictions, latest Auto Trader data has exclusively revealed to Auto Retail Agenda. Most retailers traded at 60-70% of usual volumes and used car pricing is holding firm with growth of 7% during the month.

“It’s very reassuring to see and hear anecdotally from many of our retailer partners that businesses are performing consistently way above the levels we saw during the first lockdown and at similar levels to the second,” said CEO Nathan Coe.

“The current performance is testament to how essential online retailing has become. Whilst some car buyers will return to traditional channels once forecourts reopen, a significant proportion will prefer the convenience of digital for many more stages of the buying journey.”

The marketplace surveyed consumers and found that almost half believe that owning a car is now more important than before the pandemic – up significantly on the previous high of 35% in December. 1 in 10 consumers say they are looking to buy a car to avoid public transport.

Used car prices have now grown for 10 consecutive months, reflecting both strong demand and supply constraints. “With no signs of demand fading, there will be no reason for big price corrections or adjustments in the coming months.”

 

 

Marshall chair joins Aston Martin board

Marshall chairman Richard Parry-Jones has joined Aston Martin as an independent non-executive director. “This is a very important time for the company as we start to execute our plans to enable Aston Martin to become one of the pre-eminent luxury car brands in the world,” said executive chair Lawrence Stroll. Former McLaren Automotive CEO Antony Sheriff has also become an Aston Martin non-exec.

http://bit.ly/36rLKsZ

 

Porsche retailer in Covid outbreak

Around 10 employees at Porsche Centre Edinburgh have either tested positive for Covid or are self-isolating for the required 10 days. The NHS Lothian Health Protection Team has worked with the retailer to assess the situation and determine if any further steps are required.

http://bit.ly/3r7cmrc

 

Ireland in top restrictions until at least March

The most severe tier 5 restrictions will remain in place in Ireland until at least March 5. Seat Ireland brand director Niall Phillips says retailers are ‘missing the energy’ that’s usual in January. “It’s not quite the 60% reduction we would have anticipated, but it’s 20% back on an already subdued market.” He also called for click-and-collect to be allowed, rather than click-and-deliver. “Car dealers have spent a fortune ensuring they have the right precautions in place and are operating in very large retail spaces and on open forecourts.”

https://bit.ly/3pE8DkC

 

 

WORLD NEWS

1 in 2 EU retailers is restricted

Retailer restrictions are currently impacting around half of the European automotive market by volume. Many are open as “business as unusual” with showrooms closed in Austria, Germany, Netherlands, Portugal, Switzerland and the UK. Germany, which represents almost 25% of European car sales, recently extended physical closures to 14 February. The least restricted markets are Sweden and Finland where showrooms have never been closed.

French retailers resumed normal activity in December and retailers in Italy and Spain have not been closed since the end of the first lockdown last summer.

http://bit.ly/2MaLA2l

 

UK applies to join Trans-Pacific Partnership

The UK has formally applied to join the ‘Comprehensive and Progressive Trans-Pacific Partnership’ (CPTPP). The £9 trillion free trade area is one of the world’s largest and includes Japan, Australia, Canada and New Zealand, plus growing markets including Mexico, Malaysia and Vietnam. US president Joe Biden is also expected to take the country back into CPTPP. Joining the partnership will cut tariffs on products including cars.

http://bit.ly/3j4roLs

 

 

STOCKWATCH

Closing prices on 29 January 2021 and weekly change

Lookers relisted, rises 61% from 21.0p suspension price

Auto Trader Group 564.0p (-10.2p / -2.1%)

Cambria 60.5p (+0.5p / +0.8%)

Caffyns 385.0p (n/c)

Halfords 272.5p (-6.0p / -2.1%)

Inchcape 665.0p (+3.5p / +0.5%)

Lookers 39.5p (+19.5p / +61%)

Marshall Motor Holdings 132.0p (+2.0p / +1.5%)

Motorpoint 298.0p (n/c)

Pendragon 13.94p (+0.84p / +6.2%)

Vertu 31.6p (n/c)

 

 

COMING UP

Monday, UK consumer credit

Thursday, Bank of England interest rate decision

Thursday, January new car registrations

Thursday, Group 1 Automotive 2020 results

Tuesday 9 February, Auto Retail Live with Inchcape UK CEO James Brearley, JLR UK MD Rawdon Glover and Auto Trader commercial director Ian Plummer. Sign up here

 

MONEY MATTERS

Business rates warning

Business rates are creating “an uneven playing field” between physical retailers and online rivals. Former Sainsbury’s chief executive Justin King said it is a “double crime” because online retailers don’t pay as much tax – “and when they kill their competitors, the creditors, which includes HM Revenue & Customs, pick up the tab for that too”. High street retailers pay a quarter of the UK’s £31 billion business rates which the Sunday Times reports are the highest property taxes in the OECD.

Chancellor Rishi Sunak is facing pressure to extend a 12-month moratorium on business rates.

http://bit.ly/2MlewED

 

Lady Philomena Clark a top 10 taxpayer

Sir Arnold Clark’s widow Lady Philomena Clark and family have ranked 10^th on the 2021 Sunday Times Tax List of the UK’s biggest taxpayers. The retailer paid £36.5m of employer’s national insurance and £22.2m of corporation tax. Experts added on £1.6m for tax on dividends on the 25% share owned by Lady Philomena and her family, for a total tax bill of £60.3m.

The family have a wealth of £1.13bn according to the Rich List 2020.

Arnold Clark last week revealed a clever, colourful new logo: the ‘C’ is hidden within the ‘A’. The colours follow the dark grey and yellow group-wide rebrand launched in 2015. The new logo is currently being used on the retailer’s social media accounts but has yet to appear on its customer website.

http://bit.ly/3rdECsh