• SKODA AGENCY GOES LIVE
• BMW SUSTAINABILITY CHIEF: ‘DON’T BAN ICE’
• LEASING DEMAND FOR EVS FALLS
• BOWKER BMW MAKES SUNDAY CLOSING PERMANENT
• WHO’S WHERE 2024 NOW ON SALE
• VINFAST RECEIVES 70 US RETAILER APPLICATIONS
• STOCKWATCH: Constellation owner TDR Capital increases its stake in Vertu from 3.1% to 4.1%
• COMING UP: CPI and RPI
• ‘SEISMIC’ INFLATION DROP EXPECTED
• UK ECONOMY WILL AVOID 2023 RECESSION

Skoda agency goes live

Skoda has gone live with the agency model for electric vehicles in the UK, Auto Retail Agenda has learnt. The move at the start of November follows fellow Volkswagen Group brand Cupra’s agency move in 2022.

One retailer told Auto Retail Agenda described Skoda as Volkswagen Group’s test bed for agency and the plan was to see how it goes before the rest move.

“To reach this point, we have been working closely with our investors and dealer networks to ensure a smooth transition,” a Skoda spokesperson told Auto Retail Agenda.

“We are confident that the significant amount of work put in from both sides will ensure in future we are set up to better serve our customers and their evolving mobility requirements.”

Other Volkswagen Group brands will adopt agency for EVs throughout 2024.

It is reported all VW brands will have a similar renumeration for the agency model of around 6.5%, to avoid cannibalisation within the group.

The UK has moved to agency ahead of other markets. Germany will move to agency in 2024 with the new Elroq SUV. Skoda head of Germany Jan-Hendrik Huelsmann is promising retailers there that financial returns will be similar to those under the franchise system.

Inventory risk and the cost of refinancing for new cars transfers to Skoda under agency, but personnel and buildings costs remain with the retailer.

Huelsmann said Skoda will not expect retailers to maintain the same standards as today. “We will reduce personnel and building standards in the sales department in an effort to reduce pressure on our partners.”

In the UK, Skoda now advises customers that prices for the electric Enyaq range are “Skoda UK’s Manufacturer Direct Price” and retailers now act as agents on behalf of Skoda UK. All other models are listed with Skoda UK’s recommended ‘on-the-road’ prices.

 

BMW sustainability chief: ‘don’t ban ICE’

BMW sustainability chief Thomas Becker says banning the sale of new petrol and diesel cars is not the answer to addressing the climate crisis – and said Rishi Sunak’s delayed ban of ICE cars to 2035 will not affect its EV plans.

“We didn’t support it in the outset,” he said. “We are critical towards banning.”

Policymakers should instead focus on incremental targets rather than a blanket ban that’s more than a decade away. He also questioned the track record of political policies remaining in place for 10 to 15 years, suggesting that leaders could row back on plans to outlaw ICE in years to come.

“We don’t centre our strategy only on political discussions. We base it on feedback from our customers.”

Earlier this year, Cupra boss Wayne Griffiths labelled the now-rescinded 2030 ban “dogma” and said “you need to convince and motivate a lot more people to purchase electric cars before you start to prohibit combustion cars”.

https://tinyurl.com/ytu9zuyk

 

Leasing demand for EVs falls

Q3 PCH enquiry data from Leasing.com shows that ICE enquiries grew 8% and accounted for 73% of all enquiries – whereas BEV enquiries fell 2% to account for just 11% of enquiries. Chief partnerships officer Paul Harrison blamed the unaffordability of EVs and says incentives are now needed to support the rollout of EVs.

 

Bowker BMW makes Sunday closing permanent

Preston’s Bowker BMW and Mini will make Sunday closing permanent, after beginning a trial in May. Head of business John Nichol said the move has been popular with both staff and customers. “It’s also a nod towards greater sustainability. Reduced operational hours mean lower energy consumption, complementing our ongoing commitment to reducing our carbon footprint.”

https://tinyurl.com/2nk6esux

 

Who’s Where 2024 now on sale

Who’s Where 2024 is your definitive guide to the contact details and location of every major auto retailer in the UK – and is now on sale. Extensively revised and updated, the guide continues to feature everything you expect, along with a new Market Trends section which focuses on HR issues, interviews with retailers and unique expert opinion.

Every franchised retailer in the UK is listed by name, town and postcode, with contact details including dealer principal name and telephone number. For the 100 leading auto retail groups, further information includes contact details for senior personnel. All major used car supermarkets are listed too.

* Who’s Where 2024 is now on sale – with a discount for Auto Retail Network members: click here

 

WORLD NEWS

VinFast receives 70 US retailer applications

70 retailers have already applied to new entrant VinFast following its shift from direct sales to a mixed model. It expects 125 sales points in the initial phase and “hundreds” by the end of next year. It has also established parts distribution centres to fulfil retailer requests for fulfilment monthly, quarterly “or in urgent cases, by air”.

“Cooperating with dealers will help us shorten the time to bring products to market,” said VinFast North America CEO Steve Tran. Other target international markets include Canada, Europe and parts of Asia.

 

 

 

STOCKWATCH

Closing prices on 10 November 2023 and weekly change

Constellation owner TDR Capital increases its stake in Vertu from 3.1% to 4.1%

Auto Trader Group 682.0p (+56.8p / +8.6%)

Caffyns 550.0p (n/c)

Halfords 222.0p (+1.8p / +0.8%)

Inchcape 651.0p (-41.0p / +6.1%)

Motorpoint 77.0p (-2.0p / +2.5%)

Pendragon 32.15p (+0.25p / +0.7%)

Vertu 83.3p (+7.1p / +8.9%)

 

 

COMING UP

Tuesday, UK unemployment

Wednesday, CPI and RPI

Friday, UK retail sales

 

 

MONEY MATTERS

‘Seismic’ inflation drop expected

A “seismic drop” in inflation is expected this week, falling to its lowest level in two years. ONS figures on Wednesday are anticipated to reveal inflation has fallen to 4.8%, down from 6.7% in September – the largest decline since 1992.

PM Rishi Sunak pledged to halve inflation to just over 5% by the end of the year. If the forecasts are correct, he will have comfortably met that target.

https://tinyurl.com/2whedb6n

 

UK economy will avoid 2023 recession

The UK economy has narrowly avoided a recession this year with GDP increasing 0.2% in September to leave quarterly growth at 0.0%. The economy is now 1.8% larger than pre-pandemic.

Inflation is, however, expected to remain above the official 2% target until the end of 2025 – meaning the UK would experience ‘stagflation’, or high price growth and low overall growth. The OBR is also expected to revise down its projections for the UK economy at the autumn statement on 22 November.

https://tinyurl.com/4tf2cns5