Auto Retail Agenda: 17 October 2022
16 October 2022
- JUST STOP OIL DEFACES PENDRAGON ASTON MARTIN RETAILER
- CHINESE BRANDS TO STAR AT PARIS MOTOR SHOW
- WHOLESALE USED CAR DEMAND ‘BURGEONING’
- DIRECT-SALES BRANDS OPEN AT BATTERSEA POWER
- CHINA NEW ENTRANTS ‘AN EXCITING OPPORTUNITY’
- LINCOLN DEMANDS RETAILERS INVEST $900k
- CARVANA SUES MICHIGAN
- STOCKWATCH
- COMING UP: UK CPI and RPI
- WHAT JEREMY HUNT MEANS FOR TAX
- UK GILTS SELL-OFF CONTINUES
Pendragon Aston Martin showroom spray-painted by Just Stop Oil
Stratsone Aston Martin on London’s Park Lane has been spray-painted by Just Stop Oil campaigners. They also blocked Park Lane near the Pendragon showroom and glued themselves to the road.
The government plans to fast-tracked injunctions to stop the protestors; the campaigner spraying the Aston Martin retailer in orange paint said: “We will not be stopped by injunctions that are intended to silence protest.
“We are a non-violent civil disobedience movement.”
- Are you worried that your retailer may be targeted by Just Stop Oil? Let us know
Chinese brands to star at Paris Motor Show
Chinese brands Great Wall Motor and BYD will kick off their European push this week at the 2022 Paris Motor Show. The GWM Ora Funky Cat will be shown – and Great Wall executives says they will reveal further European expansion plans for both Ora and Wey brands at the show. Peter Vardy and Lookers have been confirmed as the first UK retailers for Ora.
BYD, currently the world’s largest EV maker, will reveal the Atto 3 compact SUV, ahead of UK deliveries starting with Pendragon in early 2023.
Home brands will exhibit too. Renault will reveal a new concept teasing 2025’s new electric Renault 4. There will be a sporty Alpine Alpenglow concept, and the public debut of the Peugeot 408. Jeep will also show the new Avenger small electric SUV.
Wholesale used car demand ‘burgeoning’
September 2022 was one of the strongest months of the year for wholesale market conversions and price performance, says the latest Cox Automotive monthly Market Tracker. CAP Clean performance reached 98.19%, up 1.94% on 2019. Supply challenges for new cars means demand for used cars is burgeoning – but is also working to constrain potential sales for retailers.
Direct-sales brands open at Battersea Power
Direct-to-consumer brands Genesis and Polestar have opened stores in Battersea Power Station, which has been redeveloped as a retail site and opened last Friday. The DTC brands line up alongside other premium retailers including Breitling, Mulberry and Ralph Lauren.
China new entrants ‘an exciting opportunity’
IM Group MD William Brown, Auto Trader commercial director Ian Plummer and Urban Science MD Chee-Kiang Lim highlighted the significant new auto retail opportunity represented by new Chinese car brands entering the UK in the latest Auto Retail Live webinar. The session ran to mark the release of the Auto Retail New Entrants Report, and the 40-minute event is now available to watch back.
- Order your copy of the New Entrants Report here: https://bit.ly/3Di9y3T
WORLD NEWS
Lincoln demands retailers invest $900k
Premium Ford division Lincoln is demanding retailers invest $900k (£800k) to prepare their facilities for electric vehicles. The sum is four times what GM premium division Cadillac has demanded retailers spend. It is on top of what Ford requires retailers to spend on installing EV chargers in order to continue selling EVs beyond 2023. Many Lincoln retailers also have Ford stores but Lincoln wants separate chargers for its EV customers.
Lincoln does not yet sell any electric vehicles.
Carvana sues Michigan
Used car giant Carvana is suing Michigan state to reverse the loss of its licence. It called the decision “baseless” and said it was not allowed the opportunity to respond to the allegations. The company followed a similar legal route after its licence was suspended in Illinois. Shares slipped 8.4% in late trading on Friday.
STOCKWATCH
Closing prices on 14 October 2022 and weekly change
Auto Trader Group 523.6p (n/c)
Caffyns 515.0p (-35.0p / -6.5%)
Halfords 172.8p (+5.4p / +3.1%)
Inchcape 711.5p (+6.0p / +0.8%)
Lookers 66.9p (-0.85p / -1.2%)
Motorpoint 150.0p (+2.0p / +1.3%)
Pendragon 26.7p (-0.3p / -1.1%)
Vertu 40.9p (-3.7p / -8.6%)
COMING UP
Monday, Paris Motor Show opens
Wednesday, UK CPI and RPI
Friday, UK retail sales
MONEY MATTERS
What Jeremy Hunt means for tax
New chancellor Jeremy Hunt is expected to delay the 1p cut to the 19% basic rate of income tax by a year. He has also warned of “difficult decisions” and that some taxes will rise.
There is speculation he may reverse the cancellation of the 1.25% rise in National Insurance, due to come into effect next month.
Some suggest he could increase the personal allowance instead, which would be cheaper than cutting income tax and NI, and help those most in need.
UK gilts sell-off continues
Investors took fright on Friday at the political turmoil in Westminster and the end of the Bank of England’s emergency intervention in the market. The sell-off saw yields on long-dated gilts rise and the pound slump by 1.2%. Investors remain nervous about the fragile state of the UK economy.
All eyes will be on the markets when they open today (Monday).
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