Auto Retail Agenda: 21 February 2022
20 February 2022
- SALES CONSULTANTS HAVE FASTEST-GROWING WAGES
- LARGER RETAIL GROUPS FAVOURED IN VW EV QUOTAS
- GREEN LIGHT FOR SHIPPING COMPANY CLASS ACTION
- PM TO DETAIL LIVING WITH COVID PLAN
- OVER-THE-AIR SOFTWARE UPDATES BEAT RETAILER FIGURES
- LMP ENDS ACQUISITIONS, CONSIDERS SALE
- AUTONATION Q4 NET INCOME SOARS 156%
- EU NEW CAR SALES HISTORIC LOW
- STOCKWATCH
- COMING UP: Inchcape full-year results
- RETAIL PARKS IN DEMAND
- UKRAINE COULD CAUSE ENERGY FIRM FAILURES
Sales consultants have fastest-growing wages
Sales consultants top a list of fastest-growing wages with salaries going up 20% in a year. Their average salary is now £29k. LCV driver wages have risen 16% and vehicle technicians have risen 11% to just over £30k a year.
In the ‘war for talent’, interview processes are being streamlined and the time between submitting a CV and getting a job offer is reducing “significantly”. Potential employees are also seeking a better work-life balance with companies offering the worst holiday allowance struggling to get applicants.
Workers are also said to be rating potential employers on their morals and culture, and using platforms such as Glassdoor to review feedback from staff. “The power is definitely back in candidates’ hands,” said Sam Franklin, CEO of jobs platform Otta.
The Sunday Times reports inflation is worse for those aged 50 to 64, who have experienced a rate of 5.62%, as they spend the most on petrol and diesel, which has soared 24.4% in a year. Inflation for those aged 30-49 is up 5.52%. The official rate of inflation hit 5.5% last month but it is higher still for those aged 30-74.
The newspaper has created a personal inflation rate calculator.
Larger retail groups favoured in VW EV quotas
Volkswagen has implemented a quota system for its ID range of electric cars with German retailers. Those with higher total sales will receive more cars; a retailer that sells up to 999 vehicles a year can order 15 ID.3 and 25 ID.4. Customers are currently waiting a year for an ID.3, due to the semiconductor shortage.
The firm would not comment on whether quotas will have an EU-wide impact or just apply to German retailers.
Green light for shipping company class action
17 million motorists who bought or leased vehicles between 2006 and 2015 could be eligible for compensation of up to £60 per car after the UK Competition Appeal Tribunal certified class action against maritime car carriers operating “an illegal cartel”. Anyone who bought a car during the nine-year period is encouraged to register their interest on a dedicated website.
PM to detail Living with Covid Plan
The Prime Minister will this week set out a ‘Living with Covid Plan’. It will involve a move away from government intervention to personal responsibility – with all regulations that restrict public freedom lifted. “The Prime Minister has been clear that the pandemic is not over but we must learn to live with Covid,” said No. 10.
Over-the-air software updates beat retailer figures
The emergence of over-the-air (OTA) software updates means that 85% to 90% of vehicles will have up to date software,” says Renault. It compared the figure to 60%, “at best,” through its retailers. Volkswagen is targeting OTA software updates every 12 weeks while JLR has recently rolled out a free Amazon Alexa voice assistant upgrade via an OTA update.
WORLD NEWS
LMP ends acquisitions, considers sale
LMP Automotive has been unable to secure financing to close seven pending transactions and is now considering selling its portfolio of franchised retailers. The company is understood to be highly leveraged an in a highly stressed financial situation. “The ship is sinking,” said one commentator.
AutoNation Q4 net income soars 156%
Q4 net income at AutoNation, the largest auto retailer in the US, rose 156% to $387m. Revenue grew 14% to $6.58bn. Used car revenue was up 55%, helping offset low new vehicle inventories. AutoNation had 42 days’ supply of new cars at the end of 2020; at the end of 2021, it was down to just nine days.
EU new car sales in historic low
New car sales in the EU slumped to below 700k, or 6% down on an already-depressed January 2021. The volume is “a new historic low” says ACEA. Autovista24 has already downgraded its full-year forecasts for France, Spain and Italy. Outside the EU, UK sales grew 27.5% in January and Iceland was up 52.7%.
STOCKWATCH
Closing prices on 18 February 2022 and weekly change
Auto Trader Group 633.0p (-4.0p / -0.6%)
Caffyns 600.0p (n/c)
Halfords 293.0p (-17.0p / -5.6%)
Inchcape 833.0p (-28.5p / -3.3%)
Lookers 93.4p (-6.3p / -6.5%)
Marshall Motor Holdings 397.0p (n/c)
Motorpoint 314.0p (+19.0p / +6.2%)
Pendragon 22.6p (+0.2p / +0.8%)
Vertu 64.6p (-1.6p / -2.4%)
COMING UP
Tuesday, public sector net borrowing
Thursday, Inchcape full year results
Thursday, Aston Martin Lagonda full year results
MONEY MATTERS
Retail parks in demand
Mike Ashley’s Frasers Group is planning to sell 16 retail parks for upwards of £320m to cash in on booming investor demand. Retail parks are seen to be less at risk than high streets to the rise of e-commerce; larger stores can also be used as distribution centres and click-and-collect hubs.
Ukraine could cause energy firms to fail
An invasion of Ukraine could cause small energy suppliers to collapse if it leads to further rises in gas prices. Whitehall is already preparing for more supplier failures. Firms that haven’t hedged their supply are most at risk. In April, the energy price cap will rise from £1,277 to £1,971 a year, which is expected to ease pressure on suppliers, but analysts are still not ruling out more failures.
Tags:
AutoNation, Covid, electric cars, EU, Inchcape, inflation, JLR, jobs, LMP, PM, Renault, Retail Parks, semiconductor shortage, shipping class action, Ukraine, Volkswagen 
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