Auto Retail Agenda: 12 September 2022
10 September 2022
- RECESSION RISK RISES
- GOVERNMENT ISSUES NATIONAL MOURNING GUIDANCE
- NFDA SURVEY EXPECTED TO HIGHLIGHT AGENCY CONCERNS
- VINES TURNS LOSS INTO £2.8m PROFIT
- FORD DEMANDS RETAILERS CUT $2k PER SALE
- CHIP SHORTAGE COULD LAST BEYOND 2023
- STOCKWATCH
- COMING UP: GDP, Auto Trader AGM
- INTEREST RATE DECISION DELAYED
- RECESSION RISK RISES
- BIRMINGHAM IS NEW HOME OF AUDIT REGULATOR
Recession risk rises
National mourning and a national holiday on the day of the Queen’s funeral risks accelerating Britain’s slide into recession, warn some forecasters. GDP contracted by 0.1% during Q2 and a predicted 0.1% Q3 growth may become another 0.1% contraction – the technical definition of a recession.
However, others believe the coronation of the King may provide an economic stimulus.
Government issues National Mourning Guidance
NFDA Survey expected to highlight agency concerns
Retailers are understood to have expressed their concerns about future profitability thanks to a shift to agency agreements in the latest NFDA Dealer Attitude Survey, due out today.
Full results will be announced at 9am on Monday 12 September including an overall score for the relationship between retailers and their OEM partners.
Vines turns loss into £2.8m profit
Vines Limited “performed well above our original expectations” during the year ended December 2021, turning a £300k 2020 loss before tax into a £2.8m profit. Turnover improved from £156m to £196m. The BMW Mini specialist remarked on the “unprecedented appreciation in used car values”.
WORLD NEWS
Ford demands retailers cut $2k per sale
Ford boss Jim Farley wants retailers to help cut $2,000 per vehicle from selling and distribution costs, in order to be competitive with Tesla and other direct-to-consumer EV start-ups. This week, he will meet with retailers this week in Las Vegas to discuss new agreements for selling EVs.
A third of the savings could come from a “low inventory model” where Ford ships vehicles direct to customers, rather than stocking vehicles on retailer lots. He added Tesla is able to adjust prices rapidly on its website and keep most of the gain from a price increase.
Chip shortage could last beyond 2023
GM chief Mary Barra has warned the semiconductor will last into 2023 – “and maybe a little beyond”. To avoid future shortages with its new line of EVs, GM is seeking to source all raw materials “either in the US, in North America, or with allies”.
STOCKWATCH
Closing prices on 2 September 2022 and weekly change
Auto Trader Group 647.4p (-3.2p / -0.4%)
Caffyns 550.0p (n/c)
Halfords 132.7p (+8.0p / +6.2%)
Inchcape 749.0p (+22.0p / -2.8%)
Lookers 79.5p (-2.9p / -3.5%)
Motorpoint 195.25p (-0.5p / -0.2%)
Pendragon 21.5p (-0.8p / -3.6%)
Vertu 47.8p (-2.5p / -5.0%)
COMING UP
Monday, GDP
Tuesday, unemployment rate
Wednesday, CPI and RPI
Thursday, Auto Trader AGM
Friday, retail sales
The Auto Retail Live business briefing scheduled for Tuesday has been postponed out of respect for Her Majesty Queen Elizabeth II
MONEY MATTERS
Interest rate decision delayed
Thursday’s interest rate decision will be delayed by a week due to the period of national mourning. Economists are predicting an increase of as much as 0.75% to combat surging inflation. The Bank of England is also expected to announce plans for quantitative tightening.
Birmingham is new home of audit regulator
Birmingham will be the new home of the Auditing, Reporting and Governance Authority (ARGA) which will replace the Financial Reporting Council (FRC). ARGA is being created to reform UK corporate governance and accountancy. Overseen by BEIS, it will be in place by 2024.
Tags:
Auto Trader, Birmingham, chip crisis, cost of living, Elizabeth II, Ford, GDP, government, interest rate, recession, Vines 
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