Auto Retail Agenda: 23 October 2023
22 October 2023
- MIKE ALLEN TO LEAD NEW CAMBRIA INVESTMENT COMPANY
- STEER AUTOMOTIVE GROUP GEARS UP FOR SALE
- EV NOT TO BLAME FOR INCHCAPE RETAILER FIRE
- UK AUTOMOTIVE HIRING ACTIVITY DOWN
- ROSSITERS SPLITS FROM AC SCHNITZER
- CARS.COM APES FACEBOOK AND META WITH NEW TECH PLATFORM
- MERCEDES US RETAILERS TAKE 82 DAYS TO SELL AN EV
- STOCKWATCH: AutoNation exits bidding war for Pendragon
- COMING UP: Pendragon announces results of vote on £397m Lithia takeover offer
- STATE PENSION TO RISE BY £1k A YEAR
- MOODY’S DROPS NEGATIVE VIEW OF UK ECONOMY
Mike Allen to lead new Cambria investment company
Mike Allen has been recruited by Cambria Investment Holdings Ltd to lead its new investment company, Cambria Private Capital.
The company launches with an initial fund of £10m. It will make investments of up to £1m in startups and scaleups. Its focus will be on post-seed stage businesses with proven revenue models, and which address industry problems.
Founders who are aligned with its ESG values will be prioritised, along with IP-rich business models that solve problems in the industry.
Mike said the business is “a new corporate venture capital model in the UK that represents the automotive retail sector.
“Funding comes with a compelling investment committee offering over 150 years of industry experience.”
The investment committee includes Cambria Automobiles founder Mark Lavery, group CFO Paul Buddin, former FD Rodney Smith, and non-executive directors William Charnley and Michael Burt.
“We are passionate about supporting entrepreneurs using our extensive network, supporting the right industry change, embracing authentic ESG for responsible investing, and delivering exceptional financial returns to impact UK SME survival and the wide UK economy positively.”
Mark Lavery added the new company is “uniquely placed to identify the niche problems in the industry that need solving”.
Mike, who takes on the title of investment manager, will maintain his board advisor roles with “some of the UK’s most exciting automotive start-ups and market leaders in their respective fields”.
Steer Automotive Group gears up for sale
Car repair chain Steer Automotive Group has appointed DC Advisory to sound out prospective buyers, reports Sky News. The business, which has 98 sites and employs more than 2,500 people, could be valued at around £400m.
Richard Steer launched the chain from a single site just five years ago.
EV not to blame for Inchcape retailer fire
A huge blaze at Inchcape JLR Preston in April was not caused by an electric vehicle, say fire investigators. A non-vehicle electrical fault was the likely source of the fire, which has resulted in the building being partially demolished.
The total cost is reportedly set to run into seven figures.
Over the weekend, footage emerged on social media of extensive flooding at Inchcape’s Derby JLR retailer. The facility opened in 2019.
UK automotive hiring activity down
The UK automotive industry saw a 10% drop in new job postings in Q3 2023, new figures reveal. Repair and maintenance jobs, which accounted for an 18% share of new job postings, were up 7% over the previous quarter – but down 61% year-on-year. Sales jobs accounted for 15% of new job postings, and fell 59% year-on-year.
The top retailer for hiring activity was Vertu, followed by Halfords and Penske.
Rossiters splits from AC Schnitzer
Norfolk retailer Rossiters will no longer import and distribute AC Schnitzer tuning products, ending a relationship that dates back to 1990. Wellingborough’s The Performance Company, in partnership with Motech Ltd, is the new importer and trade partner.
WORLD NEWS
Cars.com apes Facebook and Meta with new tech platform
Cars.com has linked its various commercial businesses under a new brand and connected technology platform called Cars Commerce. The setup lets users access a streamlined portfolio spanning marketplace, digital experience, trade and appraisal and media operations, with linked software and services.
The new umbrella brand is being likened to Facebook’s 2021 creation of Meta, which saw Facebook continue alongside other products such as Instagram, WhatsApp and Threads.
Mercedes US retailers take 82 days to sell an EV
US Mercedes-Benz retailers took an average of 82 days to sell one of the brands’ EQ electric vehicles – more than double BMW’s 38-day turn rate and significantly above the luxury segment average of 57 days. Retailers blamed bloated stockpiles and an unwillingness for the OEM to respond with sales incentives.
STOCKWATCH
Closing prices on 20 October 2023 and weekly change
AutoNation exits bidding war for Pendragon
Auto Trader Group 597.2p (-39.6p / -6.4%)
Caffyns 525.0p (-25.0p / -4.6%)
Halfords 193.8p (+3.6p / +1.8%)
Inchcape 669.5p (-19.0p / -2.7%)
Motorpoint 78.9p (-2.9p / -3.6%)
Pendragon 30.9p (-2.6p / -8.0%)
Vertu 74.2p (-3.0p / +3.9%)
COMING UP
Wednesday, Pendragon announces results of vote on £397m Lithia takeover offer
Thursday, Inchcape trading update
MONEY MATTERS
State pension to rise by £1k a year
The state pension is forecast to rise next April by almost £1,000 a year, or at least 8%, thanks to the triple lock guarantee. This will take it from £203.85 a week (£10,600 a year) to £221.20 (£11,502). It follows last year’s record 10.6% increase.
In other pensions news, chancellor Jeremy Hunt is expected to announce a new investment vehicle overseen by the state that aims to turbocharge pension funds’ investments in high-grade private companies. The British Business Bank’s role will be to help channel investment into domestic assets.
Moody’s drops negative view of UK economy
Credit rating agency Moody’s has dropped its negative view of the UK economy, saying “policy predictability has been restored” following last year’s mini-Budget. Jeremy Hunt’s decision to reverse Kwasi Kwarteng’s tax cuts helped inform its decision.
S&P dropped its negative outlook in April; the third rating agency, Fitch, still has a negative outlook on the UK and publishes its next assessment on 1 December.
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