Auto Retail Agenda: 20 June 2022
18 June 2022
- AGENCY ‘NOT ON MY AGENDA’ FOR NISSAN BOSS
- CAZOO MAY SINK FURTHER THIS WEEK
- MOTORPOINT WARNS CAR SALES WILL FALL
- ‘DO NOT TRAVEL BY TRAIN THIS WEEK’
- AUTO RETAIL LIVE TO EXAMINE TECH PROCESS REVOLUTION
- RISKIER BUYERS FROZEN OUT OF CAR LOANS
- BUYERS FLY TO AVOID NEW CAR MARKUPS
- STOCKWATCH: Halfords down 28.3% as 2023 predictions below analysts’ expectations
- COMING UP: Pendragon and Vertu AGMs
- CRYPTO CURRENCY COLLAPSE
- NEW CONSUMER DUTY EXPLAINED
Agency ‘not on my agenda’ for Nissan’s Humberstone
Nissan will stick with the franchised model for the time being for its network, according to the brand’s managing director Andrew Humberstone.
Humberstone refused to rule out a switch to an agency model in future, but said it was “not on my agenda at the moment”.
He added: “All manufacturers are trying to drive down their total distribution cost and there are many ways to do that. One of them is to look at the relationship on the dealer margin. I’m not necessarily sure this is the kind of scene everybody thinks it is.
“That said, we are obviously considering all options, and all variables and all components within that. But for me, it’s not my priority today. It’s not a key issue for today.
“Anything that we do with the dealer network will be done in partnership with them and in close collaboration with them.”
* Read the full interview with Andrew Humberstone in the July issue of Auto Retail Bulletin: subscribe here
Cazoo may sink further this week
Cazoo’s market value could fall further this week as former Daily Mail & General Trust shareholders finally receive their stake in the online retailer on Thursday. Transfer of the shares was originally due on 27 February (when Cazoo shares were worth $4.24) but has been delayed several times.
They are now worth $0.99.
Former DMGT investors own around 11% of Cazoo, says William Mileham, an analyst at Mirabaud Securities, and “may be tempted to cut their losses and sell”.
Cazoo was valued at $8bn when floated via a Spac last year, but its share price has fallen 90% and it is now worth $722m (£590m). That’s still a rich valuation compared to other retailers which generally own land, pay dividends and post profits, said Mr Mileham.
Motorpoint warns car sales will fall
‘Do not travel by train this week’
Auto Retail Live to examine tech and process revolution
A new report from Auto Retail Network will examine the significant changes manufacturers and consumers are set to undergo with rising online communications and the switch to agency. A webinar on 12 July, in partnership with CitNOW Group, will outline what it means for the industry, with the help of Perrys Group’s Ken Savage, Suzuki’s Dale Wyatt and CitNOW Group’s Alistair Horsburgh.
WORLD NEWS
Riskier buyers frozen out of car loans
Buyers fly to avoid new car markups
US customers are flying thousands of miles to purchase vehicles at sticker price, rather than paying retailer markups. The average transaction price has risen 13% in a year, to $47,100 (£38,500). One analyst said the trend makes sense for vehicles in high demand: “The fact people are taking pride in saying, ‘I paid MSRP’ is completely different from any point in history.”
STOCKWATCH
Closing prices on 17 June 2022 and weekly change
Halfords down 28.3% as preliminary full year results announced; predicted pre-tax profit to April 2023 of £65-£70m is below analyst expectations of £70m-£90m.
Auto Trader Group 517.0p (-35.6p / -6.6%)
Caffyns 550.0p (-52.5p / -9.1%)
Halfords 156.8p (-51.8p / -28.3%)
Inchcape 716.5p (+27.5p / +3.9%)
Lookers 72.6p (-8.4p / -10.9%)
Motorpoint 210.0p (-16.5p / -7.5%)
Pendragon 20.5p (-3.0p / -13.6%)
Vertu 52.0p (-4.5p / -8.2%)
COMING UP
Tuesday, Pendragon AGM
Wednesday, Vertu AGM
Wednesday, CPI and RPI
Friday, retail sales
Friday, GfK consumer confidence
MONEY MATTERS
Crypto currency collapse
Crypto currencies are collapsing in value as tightening global monetary policy prompts a flight from risky assets. Bitcoin has dropped below $20,000 for the first time since November 2020 and has lost 70% of its value since November. Some analysts are warning the crypto crash could engulf the entire financial system.
New Consumer Duty explained
The NFDA has published a policy document explaining the FCA’s new Consumer Duty, which has been designed to raise the standard of consumer protection. Final rules will be published in July 2022 and must be implemented by April 2023. It is made up of three distinct parts and obliges firms to “deliver good outcomes for retail clients”.
Tags:
agency model, Auto Retail Live, car loans, Cazoo, consumer duty, Crypto, Halfords., Motorpoint, NFDA, Nissan, Pendragon, Vertu 
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