• EXCLUSIVE: LEXUS-TOYOTA EAGELL ‘STORE IN STORE’ FIRST
• NEW FCA CLAMPDOWN LIKELY
• PENDRAGON SHAREHOLDERS REVOLT
• CINEMA TO BECOME CAR SUPERMARKET
• ARNOLD CLARK CHARITY AND CHARGE
• CAR DEALERS ARE ‘AMAZING’
• GROUP 1, PENSKE RAISE DIVIDENDS
• STOCKWATCH – Schroders PLC ups stake in Vertu from 3.4% to 6.4%, Janus Henderson Group takes new 5.2% stake
• COMING UP – Cambria MBO deadline, Pendragon and Marshall AGM
• NEW: DATA CORNER – DVLA used car sales stats for 2020
• UK BOOM FORECAST – BUT WATCH INFLATION
• CAZOO FILES WITH US SEC

Exclusive: Lexus-Toyota Eagell ‘store in store’ first

Steven Eagell Toyota in Solihull has redeveloped part of its site to incorporate a Lexus retailer within the existing premises. It officially opened last Monday as part of a new initiative explained by an Auto Retail Agenda source to ‘trial Lexus within a Toyota showroom concept where the area won’t support a full Lexus site’.

The new concept marks a return to Toyota showrooms for the premium brand. Lexus was launched in the UK in 1990 from Toyota showrooms but was then separated into stand-alone showrooms at the turn of the Millennium in order to affirm Lexus’ premium brand position.

Auto Retail Agenda visited the new site last Thursday – when directors including Mr Eagell were reportedly also making a site visit. The facility is accessible from the Toyota site, rather than closed off, and houses two cars, a posh coffee machine and two seating areas. The high-end area is furnished with premium materials and has a different flooring to the adjacent Toyota area. At the time of visiting, brochures and promotional materials were still to arrive.

Auto Retail Agenda contacted Toyota GB and a spokesman explained the site is “part of a pan-European pilot project which allows small, bespoke Lexus retail sites to use space available on very large Toyota sites”. Our contact understood this site is the first one in the UK.

“We (as in Lexus and Toyota across Europe) will look at how these work, what customer feedback is, and whether there are any issues with both brands sharing a site.”

Steven Eagell Group acquired the Solihull Toyota site on the A34 – an auto retail hot-spot with many showrooms in the area – in 2020 as part of the acquisition of six retailers from Vantage Motor Group.

 

New FCA clampdown likely

Retailers can expect a new clampdown on the way finance is sold following a statement from the FCA proposing even stronger consumer protection measures.

The new Consumer Duty plan does not specifically mention auto retail – however, Auto Retail Agenda’s sources say the move is likely to impact the industry and a follow-up statement could be timed to coincide with the FCA’s planned mystery shopping investigation due for September and October 2021.

Commenting on the new plans, Sheldon Mills, executive director of consumers and competition at the FCA, said: “The package of measures we are proposing will enhance our existing rules and is designed to tackle the harms we see in financial services markets, and their causes, as well as put consumers in a stronger position to make good decisions.

“We want firms to be putting themselves in the shoes of consumers and asking, ‘would I be happy to be treated in the way I treat my customers?’. We want consumers to be able to advance their financial wellbeing and build positive futures for themselves and their families.”More details on the consultation: https://bit.ly/3eNGCUJ

 

Pendragon shareholders revolt

Pendragon investors are seeking to oust CEO Bill Berman and pay committee chair Mike Wright in a backlash over Berman’s £923k salary including a deferred bonus of £413k. Shareholder anger has been exacerbated by last year’s loss of 1,800 jobs and the use of £42m of government furlough cash.

Legal & General Investment Management, one of Pendragon’s top 10 shareholders, has indicated it will vote against multiple resolutions at Wednesday’s AGM. It further criticised the executive bonus when shareholders are not receiving a dividend, and also said it will oppose the reappointment of KPMG as auditor. Other key Pendragon shareholders include Teleios Capital (18%), Crispin Odey (15%) and Anders Hedin (13%).

https://bit.ly/3fnHtdz

 

Cinema to become car supermarket

Trade Centre UK has bought the former Showcase Cinema next to junction 10 of the M6 to develop into “the largest car supermarket in the Midlands”. It will open in 2022, replacing the current site in Wednesbury: this will be redeveloped into a central preparation centre to support sits in the Midlands, North West and Yorkshire. All existing retail staff will be relocated and new jobs will be created at Wednesbury.

https://bit.ly/2RROThf

 

Arnold Clark charity and charge

Arnold Clark has won a planning application to create a new drive-thru Starbucks and electric vehicle charging station in Stafford. The Ionity high-speed chargers will be located within 30 new parking spaces and the site, which will get its own priority junction alongside the existing Arnold Clark public entrance, will create 15 new jobs.

The Arnold Clark Community fund, which was created in March 2021 to help charities and local community groups during the Covid-19 pandemic, has also made its latest award with £1,000 donated to Stourport Hockey Club.

https://bit.ly/3fmzptF

 

 

WORLD NEWS

Car dealers are ‘amazing’

The CEO of online marketplace cars.com has said the future of the franchised auto retailer is healthier than sceptics say. Responding to criticism the franchised system is outdated, Alex Vetter said: “A lot of people are piling on, saying dealers are dead and the tech model is the winner. I just don’t believe it. It makes me a little afraid when so many people are writing off a whole class of amazing entrepreneurs. The narrative is wrong.

The full interview is well worth a read: https://bit.ly/2RYI0us

 

Group 1, Penske raise dividends

Group 1 Automotive and Penske have announced plans for dividends after successful used vehicle demand helped raise revenue. Penske, which reported record results in Q1 has raised its dividend 2.3% to $0.44 per share; Group 1 has raised its dividend 6.5% to $0.33 per share.

https://bit.ly/2RkMnQA

 

 

STOCKWATCH

Closing prices on 14 May 2021 and weekly change

Schroders PLC ups stake in Vertu from 3.4% to 6.4%, Janus Henderson Group takes new 5.2% stake

Auto Trader Group 551.8p (-23.2p / -4.1%)

Cambria 83.5p (+2.0p / +2.4%)

Caffyns 400.0p (n/c)

Halfords 389.4p (-1.0p / -0.2%)

Inchcape 794.5p (-14.5p / -1.8%)

Lookers 68.4p (-0.8p / -1.1%)

Marshall Motor Holdings 170.0p (n/c)

Motorpoint 283.5p (-1.5p / -0.5%)

Pendragon 18.72p (-0.03p / -0.1%)

Vertu 46.2p (+1.8p / +3.9%)

 

 

COMING UP

Monday, 5pm deadline looms for Cambria MBO

Wednesday, Pendragon AGM

Wednesday, RPI and CPI

Thursday, Marshall AGM

 

DATA CORNER

DVLA used car sales stats for 2020

DVLA data, released last week and showing the number of changes of keeper for 2020, reveals 6.56 million used car sales, down 13.1% on 2019’s 7.55m used car transactions. The figures show a more positive picture for 2020 than the SMMT’s recorded drop of 14.9% to 6.75m from 7.94m in 2019.

 

MONEY MATTERS

UK boom forecast – but watch for inflation

The UK economy is forecast to recover sooner than many analysts predicted with some saying the economy may regain its pre-pandemic level by late-summer. Investment from companies, which are sitting on £100bn – 50% above normal levels – will see the UK “ride an investment wave” with business spending up 7% in 2021 and 13% in 2022.However, this has led some investors to warn of the risk of inflation “which would need to be tamed by a rise in currently rock-bottom interest rates”.

https://bit.ly/2RVcMVk

 

Cazoo files with US SEC

Cazoo and US Spac Ajax I have filed a registration statement with the US SEC as part of the planned business combination. Ajax will be renamed Cazoo and be listed on the New York Stock Exchange as ‘CZOO’. A shareholder meeting to seal the deal is expected to be held in Q3 2021. The deal is expected to “deliver approximately $1.0bn in gross cash proceeds to the combined company”.

Cazoo has also exchanged contracts on a new 18,000 sq ft click and collect facility in Doncaster.

https://bwnews.pr/3w9pZZf