Auto Retail Agenda: 6 September 2021
04 September 2021
- OEMs STRIP CARS TO BEAT CHIP SHORTAGE
- TOYOTA BOOSTS CUSTOMER WEBSITE ACCESSIBILITY
- SUMMIT GARAGE DOUBLES
- MERCEDES-BENZ RETAIL GROUP DIRECTORS DEPART
- SOARING USED PRICES ‘WILL NOT RISK NEGATIVE EQUITY’
- STELLANTIS BUYS FINANCE COMPANY
- STOCKWATCH – Pendragon loses last week’s gains; Vertu up nearly 13%
- COMING UP – Halfords AGM, Munich IAA
- ‘HUGE JOBS UNCERTAINTY’ WITH END OF FURLOUGH
- DELTA DERAILS US JOBS GROWTH
OEMs strip cars to beat chip shortage
Car manufacturers are cutting features on new cars to counter the global semiconductor shortage. Ford has introduced new ‘Design’ variants for the Puma Titanium and ST-Line. These are cheaper, but go without key safety features such as lane-keep assistance, autonomous emergency braking, lane departure warning, rear parking sensors and post-collision braking. Ford calls it “realigning the content” to give shorter delivery times. Design models, however, are not eligible for the Puma’s five-star Euro NCAP award, due to the missing safety equipment: Ford makes this clear on its customer website.
Volvo is also scaling back the features in the Driver Awareness pack on the XC60, reports Autocar, but the missing features “do not have an impact on the safety rating,” said a spokesperson. Auto Retail Agenda understands this also applies to the blind spot monitoring on XC40. Retailers are contacting customers to see if they either want to wait or are happy to take delivery with the missing equipment.
Some retailers are also reporting car manufacturers are cancelling orders entirely.
What Car? research reveals the average wait for a new car is now four to six months – with JLR, as Auto Retail Agenda reported last month, quoting lead times of more than a year.
Have your new car sales been affected by the global chip shortage? Let us know – in confidence if you prefer
Toyota boosts customer website accessibility
Toyota.co.uk website users now have the option of adjusting text size, contrast and brightness, whether the site is presented in colour or monochrome, zoom in on content and other tools to improve accessibility. It is claimed to help people with visual difficulties including achromatopsia, presbyopia and dyslexia. The accessibility menu is at the bottom right of each web page and preferences can be saved for future visits.The firm says the tool is being prepared for use on other Toyota GB websites – potentially including retailer websites.
Summit Garage doubles
Summit Garage in Dudley has used a £150k funding package from Lloyds Bank to double its showroom capacity. The 76-year old MG retailer has also recently taken on three new members of staff and is looking to acquire a new property. “We’ve been planning to increase the capacity of our showroom for some time as demand has continued to increase,” said director John Newey.
Mercedes-Benz Retail Group directors depart
Mercedes-Benz Retail Group directors Marcus Breitschwerdt (also currently Mercedes-Benz Vans CEO) and former Smart CEO Katrin Adt both departed the business last week. Jonathan Lipman (secretary), Tim Schoeler (CFO) and Angela Shepherd (CEO) are the three remaining directors.
In February, figures showed Mercedes-Benz Retail’s 2019 loss had grown to £35.8m. It is now understood a sale of the factory-owned group is being sought.
Auto Retail Agenda has approached Mercedes-Benz for comment.
WORLD NEWS
Soaring used prices ‘will not risk negative equity’
The average loan request to buy a two-year old car has risen nearly 30% over 2020 reports a US lender. Some say this raises the risk of negative equity in the future – but NADA chief economist Patrick Manzi believes it will not become an issue. There will “not be a sudden cratering of used vehicle values… we expect there will be a new floor for used vehicle prices above the floor set before the pandemic.”
Stellantis buys finance company
Stellantis is buying the parent company of First Investors Financial Services Group to create a US captive finance company. Described by the firm as a “white space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” the deal is worth $285m. Stellantis is the only major US automaker without a captive finance company.
STOCKWATCH
Closing prices on 3 September 2021 and weekly change
Pendragon loses last week’s gains; Vertu rises nearly 13%
Auto Trader Group 634.2p (+8.0p / +1.2%)
Cambria 81.0p (-1.25p / -1.5%)
Caffyns 450.0p (n/c)
Halfords 355.8p (-11.2p / -3.0%)
Inchcape 918.0p (+28.5p / +3.1%)
Lookers 67.0p (n/c)
Marshall Motor Holdings 258.0p (-2.0p / -0.7%)
Motorpoint 337.0p (n/c)
Pendragon 18.45p (-2.55p / -12.9%)
Vertu 59.6p (+7.2p / +12.8%)
COMING UP
Tuesday, UK retail sales
Tuesday, Munich IAA auto show opens
Wednesday, Halfords AGM
Friday, GDP
MONEY MATTERS
‘Huge jobs uncertainty’ with end of furlough
A fresh rise in unemployment is likely after the furlough scheme ends warns the Resolution Foundation. The scheme has avoided a pandemic-driven surge in joblessness but there will still be 900k people on the scheme when it ends on 30 September. “With the number of people starting new jobs already at record highs… firms are unlikely to have the capacity to immediately take on all previously furloughed staff.”
Figures also showed more than 8,700 chain stores closed down in Britain during the first six months of the year – nearly 50 outlets a day. City centres suffered worst and retail parks fared better. There was also a decline in car showrooms with 428 closures, say figures from PwC. This is behind only fashion retailers and charity shops.
Delta derails US jobs growth
The surge in Covid-19 Delta cases in the US saw only 235k jobs created in August – way off the target 750k figure. The figures raise questions about when the Fed will begin tapering quantitative-easing programmes, due to be scaled back later this year.
Tags:
chip shortage, Covid-19, Ford, Furlough, Lloyds Bank, Mercedes-Benz Retail, NADA, Pendragon, Stellantis, Summit Garage, Toyota, Vertu, Volvo 
Why Subscribe?
As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:
- Get informed and boost your business potential
- More than 1,200 fellow executives have joined us since launch
- Independent, carefully crafted, unique content relevant to you and your business
- Develop a greater awareness of market trends and opportunities
- Access to a wide range of materials whenever, wherever and however you want it
- Significant discounts on ARN events, reports and other publications
