New CO2-based bonus system for PSA retailers

Retailers with PSA Group franchises have had their volume bonus linked to CO2 to ensure the manufacturer meets new, tougher emissions standards. Each site has been set a personal goal calculated on sales history.

“Our plan is to be compliant each month,” said Peugeot UK managing director David Peel. “We are targeting our network with a CO2 target each month.”

Speaking exclusively to Auto Retail Agenda he said: “To be fair, we allocate them stock with the right mix of CO2 so if they sell what they have got they will achieve their targets, which ensures we achieve ours.”

Retailers have told Auto Retail Agenda the targeting system has been rolled out across all PSA brands including Peugeot, Citroen, DS and Vauxhall.

Mr Peel pointed out Peugeot would have to remain flexible: “If 3008 PHEV gets really popular we will have to sell more 108s to compensate.”

Peugeot is launching seven plug-in vehicles this year, both pure electric and plug-in hybrids, and retailers have been urged to place these models front and centre.

“We have trained our network so that we are trying to encourage the customer, that if they want a test drive, their first test drive is in an LEV [Low Emission Vehicle],” said Mr Peel. “Even if you want to drive an ICE your first touchpoint is in a PHEV and hopefully it will open people’s eyes to LEVs.”

However, he said that there would be ICE vehicles on the courtesy car fleets, so customers would still have the ability to sample the other engines in the range if needs be.

Stoneacre profits grow, turnover nudges £1bn

Stoneacre Motor Group saw revenue grow to almost £1 billion in the year ending April 2019, a 25% increase on 2018. Profits also grew 31% to £13.8 million.

New vehicle sales were up 9.8%, used sales grew 14.5% – and fleet and business sales spiked 24%. Stock levels grew from £149m to £190m. Its Newark-based vehicle auction business increased turnover by 29% with 25,236 vehicles sold. Profit there grew 20.7%.

Stoneacre now operates 52 locations with 100 franchise sales points, representing 24 manufacturers. During the year, it added five Volvo franchises, four MG franchises and a Renault/Dacia franchise.

Investment in aftersales continued, with service revenues up 15.5% and profitability improving 9.7%. Group parts revenue was up 6.6% and stock holding levels down 12%. Stoneacre also has 37,600 live service plans in operation.