• JARDINE PROFIT DOWN: WORSE TO COME IN 2020
• GOVERNMENT MEETING FOR CAMBRIA BOSS
• LEADERS CHANGE AT JLR, TOYOTA
• STONEACRE ACQUIRES HODGSON
• SONIC AUTOMOTIVE EXPANDS USED CARS
• RETAILERS TO DRIVE FUTURE MOTOR SHOWS
• STOCKWATCH – Halfords up despite motoring decline
• COMING UP – Auto Retail Live webinar on Tuesday
• BCA USED CAR STOCK CHURN IMPROVES
• JT HUGHES COMMISSIONS ONLINE E-COMMERCE PLATFORM

Jardine profit down: worse to come in 2020

Jardine has reported a 2019 operating profit of £8.3m, down from £12.5m in 2018. Profit before tax declined from £7m to -£2.7m, with return on sales down from 0.6% to 0.4%.

The Colchester retailer predicted there would be a further “significant and material impact on 2020 results due to a loss of sales” caused by the Covid-19 pandemic. Jardine placed 85% of staff on furlough during lockdown and, in July 2020, made 522 redundancies, at a cost of £3m-£4m.

During 2019, Jardine exited from VW and Honda. It had been “underperforming for a number of years in both brands with minimal returns from substantial investments.” In September 2019, it sold two Honda retailers to Marshall for £900k and, in December, sold its VW retailers and a Skoda dealer to Marshall for £16m. Aylesbury VW was sold to Marshall in July 2020 for £2.9m.

Jardine also closed Jardine Jaguar and exited Sevenoaks Lamborghini: the site has been repurposed into a used Ferrari retailer to support Colchester Ferrari.

The group’s strategy is now to consolidate and enhance its position with its existing brands and retailers.

 

 

Government meeting for Cambria boss

Continuing his campaign to make government see the bigger picture on cleaner vehicles and the role of the retailer within this, Cambria CEO Mark Lavery is to meet MPs next month to highlight what he sees as mistakes within government.

Speaking to Auto Retail Agenda, Mr Lavery said: “The market is becoming more complicated than ever. There will be thousands of job losses and car prices will rise due to the emissions fines that are coming in. This is because from next year, the manufacturers won’t be able to arbitrage the UK emissions across the rest of Europe. Does the government understand this?

“We have a meeting with government in October to point out some of their mistakes.

“We need more coordination between the NFDA, SMMT and FIA to lobby for the best approach. We can get to net zero emissions, but we can do it with a mixed approach, not just through pure EVs.”

 

Leaders change at JLR, Toyota

Thierry Bollore took over as CEO of JLR last week. Former CEO and executive director Dr Ralf Speth will continue as non-executive vice chairman. Mr Bollore was formerly CEO of Renault before being ‘ousted in a coup’. Also, next month, Paul Van der Burgh will retire as president and MD of Toyota GB. TME’s Agustin Martin succeeds him. Mr Van der Burgh plans to move to Northumberland.

 

Stoneacre looks to acquire Lexus Newcastle

As reported in August by Auto Retail Agenda, Stoneacre has now acquired Hodgson Toyota, Mazda and Suzuki in the North East and is now understood to be buying Lexus Newcastle, currently owned by Jardine Motors.

https://bit.ly/3itDWe9

 

 

 

 

WORLD NEWS

Sonic Automotive expands used cars

Charlotte, North Carolina’s Sonic Automotive is expanding its EchoPark used car brand with a second retailer in Houston. Its first site in Denver, opened in 2014, sells 800 cars a month. “It’s really a recession-proof business,” said CEO David Smith. Sonic reported $1.7bn of sales in Q2, of which $809m were used cars.

https://bit.ly/2GWHCHz

 

Retailers to drive future motor shows

California EV start-up Lucid Motors predicts motor shows will continue to exist but become smaller dealer-based events in the future. “It might be that it’s a smaller-format dealer-style thing so that people can come and touch and feel many different cars at once,” said VP Derek Jenkins. “We’re all conditioned to digital interaction, digital purchasing and choice, it’s just the car industry that’s old fashioned and holding back.”

https://yhoo.it/2GXlVHl

 

 

 

STOCKWATCH

Closing prices on 11 September 2020 and weekly change

Halfords up after reporting 230% growth in e-bike sales despite 28.6% decline in motoring

Auto Trader Group 563.0p (-0.2p / -0.02%)

Cambria 50.0p (-1.0p / -1.9%)

Caffyns 270.0p (n/c)

Halfords 189.6p (+24.6p / +13.8%)

Inchcape 466.8p (-38.7p / -7.9%)

Lookers Shares suspended at 21.0p

Marshall Motor Holdings 127.5p (n/c)

Motorpoint 275.0p (+4.0p / +1.4%)

Pendragon 8.94p (+1.24p / +14.9%)

Vertu 26.65p (+2.65p / +10.4%)

 

 

COMING UP

Tuesday, Auto Retail Live webinar: Critical insight to hit your September target

Tuesday, UK unemployment

Wednesday, Auto Trader AGM

Wednesday, CPI and RPI

Thursday, MPC interest rate decision

 

MONEY MATTERS

BCA used car stock churn improves

BCA reports improving levels of used car supply and well-matched demand. “The marketplace is operating very efficiently.” It says retailers are reporting significant improvements in stock churn, “with many holding lower volumes of stock but still selling as many vehicles as they might have expected pre-Covid-19”. August used car values exceeded £8k for the third month running and conversion rates exceed 85%. All sales remain online only.

 

JT Hughes commissions online e-commerce platform

Shropshire’s JT Hughes has awarded a three-year “six-figure contract” to digital agency Built For Now Ltd to build an online car-buying ecommerce platform. It will allow customers to search used vehicles, plus secure a guaranteed PX valuation and funding. Contracts are signed electronically and either home delivery or pickup can be arranged.

https://bit.ly/2Fg87Y5