Auto Retail Agenda: 26 October 2020
25 October 2020
- AUTO TRADER RETAILER AWARDS 2020 WINNERS
- PEOPLES BOSS: NO-DEAL BREXIT IS ‘DARK SIDE OF THE MOON’
- AGNEW GROUP TURNOVER UP
- DVLA REMAINS OPEN DURING WALES LOCKDOWN
- AUTO RETAIL LIVE TO FOCUS ON Q4 TARGETS
- MAYABA IS BARLOWORLD’S NEW RETAIL EXECUTIVE
- PRO FOOTBALL PLAYER BUYS KIA, MAZDA RETAILERS
- STOCKWATCH – Pendragon up 45% on very positive Q3 results where profit almost entirely offset H1 losses
- COMING UP – consumer credit
- HMRC JOB SUPPORT SCHEME EVOLVES
- ‘AGENT MODEL THE FUTURE’
Auto Trader Retailer Awards 2020 winners
Luscombe Motors has repeated its 2018 victory in the Auto Trader Retailer Awards, winning Retailer of the Year prize for businesses selling over 100 cars.
Cedar Specialist Cars was named Retailer of the Year for businesses selling under 50 cars. Alex Scott Cars is Retailer of the Year for retailers selling 50-100 cars. All three businesses represent the very best in the UK automotive retailing sector, says Auto Trader.
One of the largest mystery shopping exercises of its type saw 1,000 of Auto Trader’s best-performing retailers whittled down to 434 via telephone interviews, then 150 via a personalised video tour, with three taking the overall prize: Harvey Cooper Cars, Martin Brothers Motor Group and The Donalds Group.
A total of 18 trophies were presented in the 2020 awards, with Car Quay’s Jamie Caple taking Rising Star.
“We’ve been amazed at just how successful some retailers have been at adapting to the unprecedented challenges of Covid-19,” said Auto Trader CEO Nathan Coe. “In this climate, we think it’s more important than ever to step back and recognise true retailing excellence.
“Based on the most comprehensive judging process, there is no doubt that this year’s winners are incredibly deserving and truly represent the very best of our industry.
All winners receive assets to promote their success, including digital logos, social media posts and window stickers.
Peoples boss: no-deal Brexit is ‘dark side of the moon’
A no-deal Brexit and WTO rules would see the auto retail industry “facing the dark side of the moon,” Peoples founder and Ford of Europe Product Panel chair Brian Gilda has warned. He said a deal was “vital for the health of our industry”. Mr Gilda spoke as Peoples revealed a fall in turnover from £277m to £242m for the year ended 31 July 2020. Profit before tax fell from £4.6m to £3m.
Agnew Group turnover up
Belfast’s Agnew Group saw turnover rise from £289m to £330m in the year ended 31 December 2019, aided by the purchase of Stanley Motor Works Volvo. The group operates 15 retailers and represents nine brands. Profit before tax remained stable at £8.6m. The organisation says it accounted for 20% of all new car registrations in Northern Ireland, and two-thirds of all premium-brand registrations.
DVLA remains open during Wales lockdown
The DVLA will remain open during the ‘firebreak’ lockdown in Wales, which runs from 6pm Friday 23 October to midnight on Monday 9 November. The organisation has, however, repeated its warning that delays are likely with postal applications due to social distancing requirements. Online services, it added, remain unaffected by the pandemic and are the quickest way to use DVLA services.
Auto Retail Live to focus on Q4 targets
Sytner Group CEO Darren Edwards, Pendragon CEO Bill Berman and Auto Trader COO Catherine Faiers will all speak at the Auto Retail Live Q4 briefing on 10 November. The 2pm briefing comes on the back of a strong September as Q4 again looks uncertain due to local lockdowns, used car shortages and the ending of furlough.
Retailers can’t relax for a moment so the briefing will be exploring how you can help hit new and used targets, with discussion points including whether OEMs are doing enough to support their networks and why we haven’t yet seen a shift to agency agreements. Register here to join us.
WORLD NEWS
Mayaba is Barloworld’s new retail executive
Marcia Mayaba has been appointed chief executive of motor retail at South African giant Barloworld. The rising star had already made history as the first black female in the South African motor industry to become franchise executive after taking responsibility for Ford and Mazda at Barloworld. Ms. Mayaba is also vice president of South Africa’s National Automobile Dealers’ Association.
Pro NFL player buys Kia, Mazda retailers
Atlanta Falcons American football player Julio Jones is preparing for his life after sport – by buying Kia and Mazda retailers in Tuscaloosa, Alabama. The 31-year old says it’s part of his plan after the NFL. “I love cars… they get us from A to B. Your friends, family, everyone is going to have a car. You’re always going to have car trouble; you’re going to need service done to your car.”
STOCKWATCH
Closing prices on 23 October 2020 and weekly change
Pendragon up 45% on very positive Q3 results where profit almost entirely offset H1 losses
Auto Trader Group 591.0p (+9.0p / +1.5%)
Cambria 52.0p (+0.5p / +0.9%)
Caffyns 270.0p (n/c)
Halfords 238.5p (+3.5p / +1.4%)
Inchcape 505.0p (+27.0p / +5.4%)
Lookers Shares suspended at 21.0p
Marshall Motor Holdings 127.5p (n/c)
Motorpoint 288.0p (+5.0p / +1.7%)
Pendragon 15.96p (+5.92p / +45.5%)
Vertu 33.7p (+3.25p / +10.1%)
COMING UP
Thursday, consumer credit
Thursday 5 November, Auto Trader half-year results
MONEY MATTERS
HMRC Job Support Scheme evolves
HMRC has announced changes to the Job Support Scheme, or JSS. From 1 November, a ‘JSS Closed Scheme’ begins. This supports businesses that have been instructed to close and cease work for up to six months. Employees can claim up to two thirds of their normal pay, up to a £2,100 limit, and cannot be made redundant. Employers remain liable for NIC and pensions.
The JSS Open Scheme protects jobs where businesses can operate safely but face lower demand because of Covid. Employees can work and be paid for 20% of their normal hours and up to two-thirds of their salary can be paid for the remainder: HMRC pays 61.67% (up to £1,541) and employers pay 5% plus NIC and pension.
‘Agent model the future’
A new report by consulting firm Accenture suggests an agent model is the future of auto retail. It would reduce the cost of retail by 4% and generate $1bn of annual savings in a mid-sized region. Retailers would act as agents instead of independent entrepreneurs. There is, however, significant financial risk, with annual operating costs of up to $130m alongside a transformation of the OEM’s core business.
“Established OEMs are hesitant and rely on small-scale pilots… these will show if the agent model offers a viable answer to the challenges of the future. We believe it will.”
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