Auto Retail Agenda: 13 February 2023
11 February 2023
- JLR AGENCY TO BRING ‘HOUSE OF BRANDS’ RETAIL
- CHINA’S CHERY PLANS 2024 UK LAUNCH
- VOSPERS TAKES OVER FROM EVANS HALSHAW PLYMOUTH
- CITYGATE REVEALS PERRYS HIGH WYCOMBE PLANS
- VOLVO US RETAILERS ALARMED BY UK AGENCY
- GROUP 1 SHARES LOSS INVESTIGATION
- US RETAILERS FEAR RISING INTEREST RATES
- STOCKWATCH
- COMING UP: Unemployment, CPI and RPI
- CHANCELLOR RULES OUT EXTRA ENERGY BILL SUPPORT
- UNDERSTAFFED HMRC CAUSING ‘UNACCEPTABLE’ DELAYS
JLR agency to bring ‘house of brands’ retail
Jaguar Land Rover plans to move all UK retailers to the agency model by the end of 2024. It will coincide with a reorganisation of its showrooms as a ‘house of brands’ with four separate areas for Jaguar, Range Rover, Discovery and Defender.
Details are still under discussion with the JLR agency steering committee body, but will involve “no desks, softer furnishing and a much more client-oriented luxury experience”.
There will be more individuality in JLR retailers too, from Range Rover Boutiques, to traditional Arch facilities, to units in a shopping centre. With agency, “we can be much more flexible,” said UK sales director Paddy McGillycuddy.
Agency’s direct relationship with the customer was vital, he added, as JLR expands its business model to sell additional software benefits.
It also wants to end haggling. “If we are to fulfil our ambition to have luxury brands, then price cannot be an element of that transaction.”
Agency will involve “some consolidation” of JLR’s 130 UK retailers, admitted McGillycuddy, but would not be drawn on exact numbers.
China’s Chery plans 2024 UK launch
Chery, China’s biggest OEM exporter, will launch the new Omoda brand in the UK in early 2024. The Omoda 5, a petrol-powered compact SUV, will be released first, but the Omoda brand will then become BEV-focused in the UK – including a pure electric Omoda 5.
Its retail plans are to be confirmed. Chery is JLR’s Chinese joint venture partner, and the firm cited its “close and deepened relationship” with the British firm, “so the UK is not a market which is unknown to Chery”.
- Chery is one of many brands profiled in the Auto Retail Network New Entrants Report. Buy your copy here
Vospers takes over from Evans Halshaw Plymouth
Evans Halshaw’s Plymouth site is to close; the city centre contract will pass to Vospers. All 28 Evans Halshaw employees have been offered jobs by Vospers – which will build a new eight-car showroom for Vauxhall. A temporary site at Marsh Mills will serve customers in the interim.
Citygate reveals Perrys High Wycombe plans
Citygate has taken over the former Perrys Ford site on London Road, High Wycombe, which closed in October. It will represent the Kia franchise, after former retailer WLMG exited the area. Citygate CEO Jonathan Smith said the acquisition complements its Volkswagen presence in the town.
WORLD NEWS
Volvo US retailers alarmed by UK agency plans
Traditional auto retail is a “flawed business model”, Volvo CEO Jim Rowan said last week – words which have alarmed US retailers observing Volvo’s UK switch to direct sales. Rowan says the UK will act as a test bed for other markets.
“Mr. Rowan is moving head-on to a fight with the dealer network,” said Volvo Retail Advisory Board chairman Ernie Norcross.
“We do not feel respected or valued as partners with his comments.”
In 2021, former Volvo CEO Hakan Samuelsson sparked protest from the firm’s US dealers after announcing a move to online-only sales, with factory-set prices, for future EVs. US boss Anders Gustafsson later had to go on a six-city roadshow to reassure retailers they would continue to sell vehicles and maintain the customer relationship.
Group 1 shares loss investigation
A US law firm has opened an investigation into whether statements by Group 1 Automotive regarding its business, prospects and operations were materially false and misleading. Investors have been advised to contact the Shareholders Foundation.
US retailers fear rising interest rates
Higher interest rates will affect US consumer demand, predict retailers – and increased borrowing costs will also erode finance and insurance sales volumes. Interest rates are the overwhelming biggest concern for retailers in America, with 7 in 10 rating them a top-three worry.
Retailers also fear higher floorplan costs.
STOCKWATCH
Closing prices on 10 February 2023 and weekly change
Auto Trader Group 607.2p (-31.0p / -4.9%)
Caffyns 500.0p (n/c)
Halfords 208.2p (-5.2p / -2.4%)
Inchcape 902.0p (-29.0p / -3.1%)
Lookers 91.6p (+1.5p / +0.5%)
Motorpoint 146.5p (+4.0p / +2.7%)
Pendragon 19.4p (-0.2p / -1.0%)
Vertu 65.0p (+5.0p / +8.0%)
COMING UP
Tuesday, UK unemployment
Wednesday, CPI and RPI
Friday, retail sales
MONEY MATTERS
Chancellor rules out extra energy bill support
Typical energy bills are set to rise from £2,500 to £3k a year in April – and the £400 discount will also end, chancellor Jeremy Hunt has confirmed. Finance expert Martin Lewis said allowing the increase would be a “national act of harm”.
Understaffed HMRC causing ‘unacceptable’ delays
An understaffed HMRC is hindering economic activity and causing unacceptable delays, says the Institute of Chartered Accountants of England and Wales. Even securing basic tax details can take months. One accountant called the service “diabolical’.
Tags:
agency, Chancellor, Chery, Citygate, Evans Halshaw, Group 1, HMRC, interest rates, JLR, New Entrants, Perrys, Volvo, Vospers 
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As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:
- Get informed and boost your business potential
- More than 1,200 fellow executives have joined us
since launch - Independent, carefully crafted, unique content relevant to you and your business
- Develop a greater awareness of market trends and opportunities
- Access to a wide range of materials whenever, wherever and however you want it
- Significant discounts on ARN events, reports and
other publications
