30 June 2019

•  JARDINE SEES PROFITS FALL
• MCLAREN LAUNCHES USED CAR PCP
• AUTODATA DOUBLES SMR UPDATES
• PARIS BANS FIVE MILLION CARS IN HEATWAVE
• CAR MAKERS WARN NEXT PM OF NO-DEAL CHAOS
• STOCKWATCH – Lookers falls on FCA investigation, Pendragon drops on CEO departure
• LAUNCH DIARY – Skoda Superb, Ford Puma
• COMING UP – Auto Retail Live Profit Briefing, UK GDP, VW board discuss closer Ford link
• MONEY MATTERS – Consumer spending to slow, FCA to investigate credit-scoring industry
• OUR BLOG – What next for Pendragon?

Jardine sees profits fall

Pre-tax profit at Jardine Motors suffered a significant drop last year, according to the group’s latest accounts. Profits fell from £18.1 million in 2017 to £7.1m last year on a turnover that was up nearly 5% in 2018 at £2.1bn.

New cars sales fell to 35,234 from 38,210 but used grew to 31,913 against 29,984.

The group said it would grow organically with its current franchise partners and only look at acquisitions where there are “real value opportunities” and said a key part of its growth plan is “employee retention” as well as continued investment in delivering a modern customer retail experience.

The annual accounts also highlighted the group’s strong internal audit function which included a “dedicated FCA compliance team” which “specifically audits each dealership for FCA compliance with regular follow-up audits”.

McLaren launches used car PCP

McLaren has launched its first used car PCP scheme after getting onto Cap’s residual valuation system.

Speaking exclusively to Auto Retail Agenda at the opening of Harwoods’ new McLaren showroom in the New Forest, McLaren’s European managing director, David Gilbert, said the PCP would be part of the brand’s Qualified approved used scheme.

Mr Gilbert added: “The UK network averages 0.5 used cars to every one new car, however, because we are such a young network our more established retailers are selling at least one to one.”

The new Harwoods showroom is McLaren’s ninth UK franchise with the brand looking to reach 10 sites in total.

* To read the full interview with Mr Gilbert, see the August issue of sister publication Auto Retail Bulletin.

Autodata doubles SMR updates

Technical update specialist Autodata sent out twice as many bulletins under licence from manufacturers last month than a year ago.

Autodata issued 6,426 service, maintenance and repair updates in June 2019. While part of the volume of increase is from Autodata adding new content it also shows the scale and complexity of new cars the pressure it puts on a modern workshop.

WORLD NEWS

Paris bans five million cars in heatwave

Paris has imposed its toughest ever traffic ban in the capital and 79 towns around it affecting more than half the cars registered in the region for as long as the current heatwave lasts. Only electric or hydrogen vehicles, petrol cars registered after January 2006 and diesels registered from January 2011 are being allowed on the roads.

https://reut.rs/2KJSVUe

Car makers warn next PM of no-deal chaos

Foreign car makers have given explicit warnings to the Tory PM candidates of the consequences of a no-deal Brexit. PSA said plans to build the next Astra at Ellesmere Port in Cheshire depend on a smooth transition for production and Japanese foreign minister, Taro Kano, said a no-deal would be so disruptive that it could end his country’s 35-year manufacturing involvement here.

https://reut.rs/2JaVOKx

STOCKWATCH

Closing prices at 28 June and weekly movement

Lookers falls on FCA investigation, Pendragon drops on CEO departure

Auto Trader Group 547.8p (-14.4p)

BCA 243.0p (+5.0p)

Cambria 59.0p (-1.0p)

Caffyns 410.0p (n/c)

Inchcape 616.0p (+1.5p)

Lookers 50.9p (-14.7p)

Marshall Motor Holdings 152.0p (-5.5p)

Motorpoint 225.0p (-4.0p)

Pendragon 16.3p (-2.8p)

Vertu 40.2p (+0.7p)

LAUNCH DIARY

Skoda Superb. Updated hatch and estate, hybrid in 2020. From £24,655.

Ford Puma. Small SUV hybrid, on sale end of 2019. Prices TBC.

COMING UP

9 July: Auto Retail Live Profit Briefing – Maximising aftersales profits

10 July: UK Gross Domestic Product data

11 July: Volkswagen Group’s supervisory board meets to discuss closer alliance with Ford

MONEY MATTERS

Consumer spending to slow

Two forecasts show consumer spending slowing as buyers lose confidence in the economic outlook. The latest quarterly EY Item Club economic forecast predicts growth will be slowest since 2013 and GfK’s Consumer Confidence Index fell by three points.

https://bit.ly/2Yg1rgx

FCA to investigate credit-scoring industry

The FCA is to scrutinise credit-scoring companies such as Experian and Equifax after concerns about the data used by lenders to determine whether applicants can secure a loan.

https://bit.ly/2XvWdjZ

CLICK HERE TO READ OUR BLOG –  What next for Pendragon?

John Swift

Editor

Auto Retail Agenda

Tags: Auto Protect, Autodata, Harwoods, Jardine, Lookers, McLaren, Motorline, Pendragon