Auto Retail Agenda: 11 November 2024
10 November 2024
- DACIA OUTLINES 2025 NETWORK STRUCTURE CHANGE
- NFDA: FCA ‘ON DCA FACT-FINDING MISSION’
- 13-YEAR-OLD CAUSES £20k OF DAMAGE AT MACKLIN MOTORS
- MAN ARRESTED OVER ALLEGED RAPE AT RETAILER
- US RETAILER PROFIT PER VEHICLE DROPS
- CHINA NEW CAR SALES JUMP 11%
- STOCKWATCH
- COMING UP: UK unemployment
- BUSINESS RAISE ALARM OVER NI RISE
Dacia outlines 2025 network structure change
Dacia, which currently has 144 retail sites, is preparing for a change in its network structure in mid-2025, says UK and Ireland brand director Luke Broad. The value brand will move to a hub and spoke structure, which will result in a 20% reduction in brand partner sites.
“We want to have the right partner in the right place,” he told Auto Retail Agenda, “so we have a network that is sustainable for profit. The aim is to also bring in higher quality partners, who we can hold to a higher standard.
“The phase-out of those we decide not to continue with will be done pragmatically.”
The target is for the network to have not more than a 30-minute drive time to buy and service. The brand currently has around 15% open points, he added.
NFDA: FCA ‘on DCA fact-finding mission’
The NFDA has had a series of meetings with HM Treasury and the FCA following the shock Court of Appeal DCA decision. It has also attended an FCA roundtable with HM Treasury, the Bank of England, Prudential Regulation Authority, UK Finance plus finance houses and other trade associations.
During these meetings, says chief executive Sue Robinson, “it appears the FCA are currently on a fact-finding exercise to understand the potential next steps for both lenders and brokers.
“It is becoming increasing evident that the state of law is in flux and that the impending Supreme Court ruling could set a precedent of direction.”
13-year-old causes £20k of damage at Macklin Motors
A 13-year-old boy has been charged with vandalism at Macklin Motors Hyundai Edinburgh West. Several vehicles had windows smashed and bodywork damaged. The boy will appear in court on Tuesday.
Man arrested over alleged rape at retailer
A 34-year-old man has been arrested in connection with an alleged rape at Peter Vardy BMW Edinburgh. The arrest on 3 November followed reports of a serious sexual assault. An investigation into the incident is ongoing.
WORLD NEWS
US retailer profit per vehicle drops
US retailer profit per vehicle has dropped nearer to pre-pandemic levels, which is around a third of its peak. Q3 revenue from the big six public auto retailers – Asbury, AutoNation, Group 1, Lithia, Penske and Sonic – bear this out, with all reporting double-digit percentage declines in same-store grow profit per new vehicle. Average gross profit vehicle is now around $1,200 (£925), down from a $3,600 (£2,800) peak in 2022.
China new car sales jump 11%
China new car sales jumped 11% in October, the second monthly rise and aided by subsidies of up to £2,200 for trading in older cars for EVs and NEVs. The scrappage-style incentives are expected to continue into 2025.
A total of 2.28 million vehicles were sold in China last month.
STOCKWATCH
Closing prices on 8 November 2024 and weekly change
Auto Trader Group 777.6p (-66.6p / -8.2%)
Caffyns 450.0p (n/c)
Halfords 144.2p (-22.8p / -14.6%)
Motorpoint 135.0p (-7.5p / -5.4%)
Pinewood 335.5p (+1.0p / +0.3%)
Vertu 67.0p (-0.8p / -1.1%)
COMING UP
Tuesday, UK unemployment
MONEY MATTERS
Business raise alarm over NI rise
A series of London-listed businesses have sounded the alarm over the impact of the Budget, with the declared cost to businesses now topping half a billion pounds. Asda expects a £100m increase to its annual tax bill, Sainsbury’s a £140m rise, Serco forecasts a £20m increase, BA owner IAG expects the “direct hit” to add €25m to €30m and Deutsche Bank predicts Greggs will face an extra £45m of costs.
Sainsbury’s, BT, Marks & Spencer, Associated British Foods and JD Wetherspoon have warned that jobs could be cut, hiring reduced and prices raised; each calculated the cost to be between £60m and £140m. Co-op joined the warnings last weekend, with the bill for its 55k employees rising by “tens of millions of pounds per year”.
ISSN 3049-5725
Tags:
Budget, China, Dacia, DCA, FCA, HM Treasury, Macklin Motors, National Insurance, NFDA, Sytner, unemployment 
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