Auto Retail Agenda: 25 April 2022
23 April 2022
- JAMES MULLINS IS NEW CINCH CEO
- DICK LOVETT IN PORSCHE NEWPORT PLANS
- DVLA DELAYS TO LAST UNTIL THE AUTUMN
- FOUR-DAY WEEK TRIAL BEGIN IN JUNE
- UKRAINE WAR BOOSTS EV COSTS ADVANTAGE
- CARVANA Q1 LOSS UP 144%
- AUTONATION SETS NEW RECORD – AND SHARES FALL
- STOCKWATCH: Lookers non-exec director Paul Van der Burgh buys 12k shares at 81.4p
- COMING UP: Inchcape trading announcement
- UK ‘TEETERING ON RECESSION’
- CONSUMER CONFIDENCE NOW LOWER THAN 2008
James Mullins is new Cinch CEO
James Mullins has been appointed CEO of Constellation’s direct to consumer used car retailer Cinch. A spokesperson confirmed the news to Auto Retail Agenda on Friday.
Mr Mullins was previously CFO at Cambria, where he worked for 14 years. He left in October 2021 after Cambria PLC was taken private by its CEO Mark Lavery.
Launched in October 2020, Cinch claims it is the largest B2C marketplace for used cars in the UK. It currently has around 11,200 used cars for sale, compared to Cazoo’s 6,500.
Dick Lovett in Porsche Newport plans
Dick Lovett could create 100 jobs in Newport if plans for a new Porsche centre are approved. The “strategically accessible” site near to J28 of the M4 has been the subject of several other planning applications over the past 25 years. It currently lies vacant.
Dick Lovett already has Porsche Centre Cardiff, but it is understood the Penarth Road site can’t be expanded.
DVLA delays to last until the autumn
The DVLA has warned services will not return to normal until the end of September. There is currently a backlog of more than 200k applicants, but chief executive Julie Lennard claims the majority of those waiting longer than 10 weeks are medical cases.
Four-day week trial begin in June
More than 60 organisations and 3,000 employees will take part in a six-month four-day week trial from June. There will be no loss in pay; they will be asked to maintain 100% productivity for 80% of their time. Research has shown more than 7 in 10 office workers would prefer a four-day working week.
Ukraine war boosts EV costs advantage
It now costs £600 a year less to drive an electric car compared to a petrol alternative. Turmoil in global energy markets caused by the war in Ukraine has widened the gap; the average annual cost for an EV is £1,264 compared to £1,834 for petrol.
The running costs of both kinds of car are markedly more expensive than a year ago.
WORLD NEWS
Carvana Q1 loss up 144%
Carvana sold fewer cars than planned in Q1, leading to higher costs and lower profit per vehicle. Revenue was up 56% to $3.49bn (£2.72bn) but it recorded a net loss of $506m (£349m) – 144% up from an $82m (£63m) loss in 2021. Profit per vehicle fell from $3,656 (£2,847) to $2,833 (£2,200).
The online retailer blamed reconditioning and logistics disruption, high used vehicle prices, interest rates and Covid challenges. Shares fell 9.1% on the news but rose 4.9% in after-hours trading.
AutoNation sets new record – and shares fall
AutoNation, the no. 1 retailer in the US, saw Q1 net income surge 51% to $362m (£281) on higher used vehicles sales and gross profits for new vehicles. Revenue of $6.75bn (£5.26bn) was up 14%, and Q1 earnings per share set a new record. Shares fell 3.6% on the news.
STOCKWATCH
Closing prices on 22 April 2022 and weekly change
Lookers non-exec director Paul Van der Burgh buys 12k shares at 81.4p
Auto Trader Group 633.8p (-11.0p / -1.7%)
Caffyns 550.0p (n/c)
Halfords 242.8p (-9.0p / -3.6%)
Inchcape 668.5p (+13.5p / +2.0%)
Lookers 81.0p (-2.9p / -3.5%)
Marshall Motor Holdings 394.0p (+4.0p / +1.0%)
Motorpoint 260.0p (+10.0p / +3.9%)
Pendragon 22.4p (-3.5p / -14.4%)
Vertu 53.9p (-4.1p / -7.3%)
COMING UP
Thursday, Inchcape trading announcement
Thursday, FCA H2 2021 complaints data published
Friday, Halifax house price index
Wednesday 25 May, ARN Performance Conference
MONEY MATTERS
UK ‘teetering on recession’
Sterling slumped to its weakest level since late 2020 as new ONS data showed retail sales slumped 1.4% in March. “The UK is teetering on the edge of a recession and that’s before inflation hits 8% or higher later this year,” said one analyst. It reached 7% in March.
The Bank of America estimates there is a 35% chance the UK will slip into recession, due to deteriorating consumer confidence.
Consumer confidence now lower than 2008
The public is gloomier about the economy than during the 2008 financial crisis, stoking fears of a marked slowdown in consumer spending. All five measures of consumer confidence tracked by GFK recorded sharp falls in April, with the headline figure dropping to a near-historic low.
Tags:
AutoNation, Cambria, Carvana, Cazoo, Cinch, Consumer confidence, Dick Lovett, DVLA, four-day week, Inchcape, James Mullins, Lookers, Porsche, recession, Ukraine 
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