Auto Retail Agenda: 18 July 2022
17 July 2022
- 3 IN 4 COMPANIES STRUGGLING TO RECRUIT
- TESCO WINS FIRE AND REHIRE BATTLE
- IAN GODBOLD LEAVES CAMBRIA
- EU NEW CAR SALES WORST IN 26 YEARS
- VOLKSWAGEN THERMAL WINDOW ‘COULD BE ILLEGAL’
- COST CONTROL CRUCIAL FOR CARVANA
- STOCKWATCH
- COMING UP: CPI and RPI
- DEATH OF THE SPAC
- CHANCELLOR IN DRIVE FOR LONDON GLOBAL LISTINGS
3 in 4 companies struggling to recruit
Recruitment problems have reached a record high with 76% of companies struggling to hire staff, says the British Chambers of Commerce. 6 in 10 UK firms are currently looking for staff. “Firms must find new ways of unlocking pools of talent – by investing more in training, adopting more flexible working practices, and expanding use of apprenticeships,” said its head of policy Jane Gratton.
There are 1.3 million unfilled jobs in the UK economy, and fewer people in the workforce than pre-pandemic. “Employers are at their wits’ end.”
The latest UK unemployment figures are released on Tuesday.
Tesco wins fire and rehire battle
Tesco has won a legal battle over fire and rehire tactics. It could pave way for other employers to use the controversial strategy to cut costs.
Ian Godbold leaves Cambria
Cambria Automobiles marketing director Ian Godbold has left the retail group to set up his own marketing consultancy which will specialise in helping retailer with velocity used car trading. Godbold, who worked for Cambria for 14 years, revealed the move on Auto Retail Live last week.
* To listen the webinar on catch-up, go here https://bit.ly/3NQS0x7
EU new car sales worst in 26 years
European car sales fell 17% in June, the worst since 1996. Volkswagen Group was down 24% and Stellantis 17%. Hyundai Group was down 3.9% but Kia actually rose 2.1%. Dacia grew 32%. “The industry will not overcome supply constraints anytime soon,” said LMC Automotive.
WORLD NEWS
Volkswagen thermal window ‘could be illegal’
Volkswagen and other OEMs risk costly consumer claims after the EU Court of Justice ruled software that protects car components at certain temperatures, by reducing the effective of exhaust emission controls, could be illegal. Such ‘thermal windows’, which lower pollution controls when temperatures are low, are used across the industry.
The EU court said exhaust gas recirculation cleaning mechanisms are switched off at temperatures below 15 degrees Celsius, meaning it doesn’t work “most of the year”. Volkswagen says it is only switched off below 10 degrees Celsius.
Cost control crucial for Carvana
Online used car retailer Carvana will announce its Q2 results on 4 August and one analyst is calling it “pivotal” as pressure grows on the business to cut costs. Continuing high used car prices, and a resultant slowdown in sales, pose a threat for the business as the model is built for “super-high demand.
“Expense control is requisite for the company and its shot at future profitability, because there’s not going to be a tonne of upside around units and unit growth,” said analyst Chris Pierce.
Carvana is the second-largest used car retailer in the US. Cazoo founder Alex Chesterman has previously said Carvana provided the inspiration for Cazoo.
STOCKWATCH
Closing prices on 15 July 2022 and weekly change
Auto Trader Group 578.2p (-13.8p / -2.3%)
Caffyns 550.0p (n/c)
Halfords 157.5p (+1.2p / +0.7%)
Inchcape 755.0p (+45.5p / +6.2%)
Lookers 78.9p (+2.4p / +3.0%)
Marshall Motor Holdings 397.0p (n/c)
Motorpoint 193.25p (+4.75p / +2.4%)
Pendragon 20.0p (-1.8p / -8.6%)
Vertu 56.2p (-0.1p / -0.1%)
COMING UP
Tuesday, UK unemployment
Wednesday, RPI and CPI
Friday, retail sales
Friday, GFK consumer confidence
MONEY MATTERS
Death of the Spac
Spacs, or special purpose acquisition vehicles, boomed during the pandemic. Now, reports The Sunday Times, they “are dead, killed by an aggressive regulator [the SEC] and falling stock markets that have sapped investor appetite for exotic or risky deals”.
Investors and regulators are now grappling with the fallout. “A lot of Spacs, and companies that went public via Spac, are going to fail” said investment banker Omeed Malik.
Chancellor in drive for London global listings
New chancellor Nadhim Zahawi will give government backing to an initiative designed to make London a global destination for major company flotations. The new Capital Markets Industry Taskforce, an industry-led taskforce, will be led by LSE chief executive Julia Hoggett.
Tags:
Cambria, Carvana, Cazoo, Chancellor, CPI, EU, Ian Godbold, new car sales, recruitment, RPI, SPAC, Tesco, Volkswagen 
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