Auto Retail Agenda: 28 February 2022
27 February 2022
- 22-PLATE ‘IMPOSSIBLE TO PREDICT’
- VOLVO EVs TO DOUBLE THROUGHPUT
- AUTO RETAIL LIVE EXPERTS TO BRING CRYSTAL BALL
- BCA SEEKS ‘LATE LICENCE’
- NEW BOSS FOR MINI UK
- CARVANA TO BUY ADESA FOR £2.2bn AFTER LATEST LOSS
- US STATE WANTS OTA UPDATE BAN
- RETAILERS WARNED ABOUT PRICE MARK-UPS
- STOCKWATCH: Inchcape announced a £100m share buyback after doubling pre-tax profit to £296m for the year ended December 202. Its shares fell 11.1%.
- COMING UP: UK consumer credit
- UKRAINE WAR SLOWS CITY DEALS
- £500k COVID LOANS TO REMAIN SECRET
22-plate ‘impossible to predict’
One in two new car buyers would postpone an order if their car doesn’t arrive in time for the latest March ‘22’ registration plate. This makes next month one of the most difficult to forecast, warns consumer publisher Autovia.
March is traditionally the auto industry’s biggest sales month – but some cars ordered now may not be delivered until 2023.
Last week, Isuzu urged pick-up customers to get in touch with their local retailer “as soon as possible” to discuss purchases later in 2022 or 2023, due to the “unprecedented and complex” semiconductor shortage.
Isuzu said D-Max demand is outstripping supply and the company is relying on its retailer network to help customers “remain on the fastest route” to a new vehicle.
Volvo EV switch to double throughput
Volvo has told US retailers its focus on EVs will double average throughput to 800 vehicles a year by 2025 – bringing “significant profit ramifications”. The Swedish firm revealed five electric and two plug-in hybrid vehicles to retailers, with the new product “onslaught” beginning in 2023.
“Volvo is one of the most exciting manufacturers,” said one retailer after the Miami presentation. It is “nailing” the product mix by focusing on crossovers, electrification and technology.
Auto Retail Live experts to bring crystal ball
What is in store for consumer demand? Jason Cranswick, COO of Marubeni Auto Investment (UK) (which owns RRG and Norton Way) will join Carzam COO James Buxton and Auto Trader commercial product director Karolina Edwards-Smajda to share their experience the next Auto Retail Live. The Q1 Briefing will start at 2pm on 15 March and we welcome your questions during the event.
Also looking ahead to 2022 trends, Auto Trader last week ran a webinar on why sustainability matters for your business in 2022. Guests included Waylands CEO John O’Hanlon, Sinclair Group sustainability manager Clive Williams and the NFDA’s Paddy O’Connell.
BCA seeks ‘late licence’
BCA is seeking planning permission to open its Bedford site until midnight seven days a week. It is “critical for the future viability of the site” to extend the hours of operation, said BCA. Only one of BCA’s 28 UK sites – Blackbushe – is currently open on Sundays.
New boss for Mini UK
Federico Izzo, who has a long background in sales and marketing, is to become director for Mini UK and Ireland on 1 May. He takes over from David George, who this week becomes president and CEO of BMW Canada. Mr Izzo said he is looking forward to working with “our passionate network partners to further enhance the brand’s appeal amongst both current and new customers alike”.
The UK is Mini’s largest global market with a 2.78% market share.
WORLD NEWS
Carvana in £2.2bn reconditioning deal after latest loss
Carvana is buying vehicle reconditioning and wholesale auction firm ADESA for $2.2bn in cash. The deal will increase its capacity by 2m vehicles per year. It “substantially improves” the span of Carvana’s logistics network, said CEO Ernie Garcia.
Carvana last week announced a $182m loss in Q4 despite soaring quarterly and annual revenue.
Retailer tech company Cars.com also posted a $6m Q4 net loss, due to the purchase of auto finical tech company CreditIQ. Full year net income rose to $7.7m, following a net loss of $817.7m in 2020.
US state wants OTA update ban
West Virginia wants to ban over-the-air updates – which is being fought by a campaign group as it would “harm consumers in order to benefit auto dealers”. It would create safety risks as “dealers lack the infrastructure and capacity to deliver software updates”. Tesla and many other OEMs are now regularly delivering ‘OTA’ software updates to new vehicles.
Retailers warned about price mark-ups
Hyundai and Genesis retailers in the US have been warned about price mark-ups “way above” RRP, which are “damaging brand image”. Hyundai Motor Group has also warned retailers about potential actions it could take, including future allocation reviews, advertising benefits and other incentives. It alleges some retailers are “advertising one price online and then marketing up that price when the customer comes into the dealership”.
An Edmunds report last week revealed US buyers paid above sticker price on 82% of all new vehicles in January – compared to 3% in January 2021. The average transaction was $728 above RRP, compared to $2,152 below last year.
STOCKWATCH
Closing prices on 25 February 2022 and weekly change
Inchcape announced a £100m share buyback after doubling pretax profit to £296m for the year ended December 2021, up from a £128m profit in 2020. Its shares fell 11.1%.
Auto Trader Group 655.2p (+22.2p / +3.4%)
Caffyns 575.0p (-25.0p / -4.2%)
Halfords 277.2p (-15.8p / -5.5%)
Inchcape 745.0p (-88.0p / -11.1%)
Lookers 90.5p (-2.9p / -3.1%)
Marshall Motor Holdings 396.0p (-1.0p / -0.2%)
Motorpoint 296.0p (-18.0p / -5.9%)
Pendragon 20.7p (-1.9p / -8.7%)
Vertu 61.0p (-3.6p / -5.7%)
COMING UP
Monday, Nationwide house price index
Tuesday, UK consumer credit
Wednesday, BRC shop price index
Thursday, February Auto Trader Retail Price Index
MONEY MATTERS
£500k Covid loans to remain secret
Only the names of companies receiving pandemic business loans of £500k or more will be published, under new government rules. Only 3% of businesses which claimed support under the bounce back loan scheme are expected to be named. It is estimated £4.9bn was lost in fraud to the bounce back scheme, which provided loans up to £50k to small businesses.
Tags:
22-plate, Auto Trader, BCA, Bounce Back loans, Carvana, Covid, EV, Genesis, Hyundai, Inchcape, Mini, OTA updates, Ukraine, Volvo 
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