Auto Retail Agenda: 10 July 2023
09 July 2023
- UK EU EV ‘LOSE-LOSE’ WARNING
- MERCEDES-BENZ RETAIL RESTATES 2020 LOSSES
- GREENHOUS 2022 PROFIT SURGES 25%
- ANDREW DEAN IS NEW MERCEDES-BENZ UK NATIONAL SALES HEAD
- VERTU SPONSORS PLYMOUTH ARGYLE
- TOM KILROY, JAMES SMULLEN AND CHARLOTTE MURRAY WEBINAR CONFIRMED
- AGENCY ADOPTER SALES DOWN IN AUSTRALIA
- US RETAILER EV STOCKS SOAR
- STOCKWATCH
- COMING UP: UK GDP
- CHANCELLOR TO ANNOUNCE PENSION FUND INVESTMENT REFORMS
- LSE CHIEF SLAMS CITY EXODUS
UK EU EV ‘lose-lose’ warning
UK EU post-Brexit rules of origin laws risk making EVs 10% more expensive from January 2024. This requires at least 45% parts from the UK or EU, and 60% of batteries. Currently, 47% of UK EV batteries are made in the EU, 32% in China, and 6.2% in the UK.
Both UK and EU car firms are “up in arms” and want the deadline to be kicked back to 2027. However, only the European Commission (EC) can make the ruling, and has to date declared it won’t be budged.
The UK is the top export market for European cars, worth £26.2bn a year. Tariffs would cost almost £3.7bn. “It’s lose-lose with the rules of origin farrago,” said The Sunday Times deputy business chief.
Mercedes-Benz Retail restates 2020 losses
Mercedes-Benz Retail Group accounts for the year ended December 2021 were published last week. They showed a profit before tax of £29.9m.
However, the retail group also voluntarily restated its 2020 results, after discovering mistakes. This saw loss increased from £19.7m to £20.3m.
Mercedes-Benz Retail Group CFO Tim Schoeler has officially left the business. His departure was announced as the retail group’s accounts were published.
Mercedes-Benz Retail exited the UK auto retail sector with the sales of its remaining sites – including the flagship Brooklands Mercedes-Benz World operation in Weybridge, Surrey – to Hedin in November 2022. It now retails under the agency model in the UK.
Greenhous 2022 profit surges 25%
Telford retail group Greenhous Ltd saw profit before tax increase from £4.8m to £6.2m in the year ended December 2022. This is despite turnover falling from £449m to £416m. Chairman Derek Passant praised the retailer’s efforts to diversify into other associated areas of the auto industry, as well as growing its customer base.
Andrew Dean is new Mercedes-Benz UK national sales head
Andrew Dean has been appointed head of national sales at Mercedes-Benz Cars in the UK, reporting into sales director Sally Dennis. He was formerly head of retail transformation, and has undertaken several other retail-focused roles in his 10-year career at Mercedes-Benz UK. Andrew also spent two years as head of PR at the firm.
Vertu sponsors Plymouth Argyle
Vertu is to sponsor Plymouth Argyle FC for the next two years. The retailer’s logo will adorn the team’s shirt sleeves and it also becomes the team’s official motor retail partner.
Plymouth Argyle will step up to the EFL Championship, the second tier of English football, next season.
Tom Kilroy, James Smullen and Charlotte Murray webinar confirmed
Keyloop CEO Tom Kilroy, Waylands director James Smullen and Marketing Delivery commercial director Charlotte Murray will discuss the technology in retail revolution in an exclusive, free-to-join webinar on 27 July.
Key discussion points will include a review of where we are today and how the customer journey can be made more relevant. Essential tools, processes and skill sets for today’s auto retail will be outlined, and findings from the latest Keyloop technology in retail report will be discussed.
Sign up now: https://tinyurl.com/2vkyv78w
WORLD NEWS
Agency adopter sales down in Australia
Honda and Mercedes-Benz have adopted the agency model in Australia. Year to date, Honda sales are down 11.3% and Mercedes-Benz are down 12.3%. In contrast, Tesla sales are up 449.7%, SsangYong is up 130% and Great Wall (which sells the ORA Funky Cat amongst others) is up 105.1%. Polestar, another brand built in China, is up 104.1%.
Audi Australia sales are up 48% and Volkswagen is up 60.6%.
US retailer EV stocks soar
In June, US retailer EV inventory levels approached 100 days – nearly twice the industry average. “EV sales are rising, but not to the same extent of inventory,” said Cox Automotive economist Charlie Chesbrough. “The jury is out on what will happen to all that inventory.”
STOCKWATCH
Closing prices on 7 July 2023 and weekly change
Auto Trader Group 597.4p (-13.0p / -2.1%)
Caffyns 500.0p (n/c)
Halfords 213.0p (-2.6p / -1.2%)
Inchcape 759.0p (-18.5p / -2.4%)
Lookers 119.0p (-0.6p / -0.5%)
Motorpoint 96.4p (+1.0p / +1.0%)
Pendragon 17.82p (+0.16p / +0.9%)
Vertu 69.6p (-1.8p / -2.5%)
COMING UP
Tuesday, UK unemployment
Thursday, UK GDP
MONEY MATTERS
Chancellor to announce pension fund investment reforms
LSE chief slams City exodus
Action must be taken to stem the flight of successful companies overseas, or the London Stock Exchange risks falling into a ‘perpetual cycle’ of decline. LSE head Julia Hoggett called it “inevitable” that good companies founded in the UK would list its shares overseas. She said capital markets leaving the UK “infuriates me”.
Tags:
agency, Andrew Dean, Brexit, Chancellor, EU, EV, GDP, greenhous, Keyloop, Marketing Delivery, Mercedes Benz, Tom Kilroy, Vertu 
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