• MID-2023 GO-AHEAD FOR VOLVO AGENCY MOVE
• CARWOW SHEDS A FIFTH OF STAFF
• DEMAND FOR FINANCE REMAINS STRONG DESPITE UNCERTAINTY
• JLR STILL CUTTING PRODUCTION DUE TO SEMICONDUCTORS
• LEARN BEST PRACTICE AT AGENCY CONFERENCE 2023
• ATLANTIC COAST BUYS 10 VISION RETAILERS
• STOCKWATCH
• COMING UP: Mortgage approvals
• COULD FUNDING CHILDCARE BOOST THE ECONOMY?
• RISING STATE PENSION AGE: HOW TO PROTECT YOUR RETIREMENT

Mid-2023 go-ahead for Volvo agency move

Volvo has agreed terms with its retail network to move to an agency model from mid-2023, according to Auto Retail Agenda sources.

While contracts still have to be signed by each retailer, it is understood the dealer network reached terms of the shift from franchised to agency agreements at an investor conference with the Swedish brand in the past week.

A spokesman for Volvo would not comment on the timing of the agreement, but confirmed a more direct approach to sales was the future direction for the brand: “Volvo Car UK is working with the retailer network on transforming to become a direct consumer-facing operation with strong digital solutions. Full details of the changes will be communicated at a later date.”

He added the upcoming EX90 large SUV would only be available as an online order as a direct sale with “retailer assistance”.

Volvo will follow Mercedes-Benz in its move to agency in January with many more manufacturers expected to follow suit in the next few years.

Last week Stellantis said it was delaying its agency plans for the DS, Alfa Romeo and commercial vehicle brands by six months to January 2024 while it piloted the model in Austria, The Netherlands, Belgium and Luxemburg, while it made sure it had the correct logistics in place to support the changeover.

For those retailers looking to learn more about the switchover to agency, Auto Retail Network is running a conference dedicated to the subject which aims to empower retailers with the knowledge they need to make the transition go as smoothly as possible.

More information and tickets are available here.

 

Carwow sheds a fifth of staff

Carwow, the largest online new car sales portal in the UK, Germany and Spain, has cut a fifth of its staff to preserve cash. New vehicle interest is declining, said founder James Hind, and customers with long waiting times are cancelling orders due to economic concerns.

Around 70 jobs will be lost across the three countries.

Despite the cutbacks, Hind is positive. The company, he said, has raised £57m this year, giving it “ample cash… to get to profitability… even assuming that next year is a bad year for supply”.

In the year ended December 2021, Carwow Ltd lost £13.5m before tax, up from a £6.5m loss in 2020. Last year’s turnover grew from £22.5m to £36.5m.

http://bit.ly/3APGj6b

 

Demand for finance remains strong despite uncertainty

New data has shown the level of car finance activity is up 46% on pre-pandemic levels – despite the rising cost of borrowing and economic uncertainty. This is backed up by FLA figures that show used car finance penetration is now at a record 45%.

Auto Trader calculator data has also shown that 50% of all researched monthly payment options were still below £250, down just 1% on January 2022.

The new report is the first time Auto Trader has shared its car finance data externally.

 

JLR still cutting production due to semiconductors

JLR is cutting production at Solihull and Halewood until spring 2023 due to an ongoing shortage of semiconductors.

The company has a record order book of more than 205k vehicles, which has consistently been growing, rather than falling. Year to date, Jaguar registrations are down 35% in the UK, and Land Rover sales are down 22%.

The company is also searching for a new CEO after Thierry Bollore resigned for “personal reasons”. It insists the ‘Reimagine’ strategy will continue unchanged.

http://bit.ly/3u4OfNh

 

Learn best practice at Agency Conference 2023

Lookers CEO Mark Raban will join a keynote panel including Australian Automotive Dealer Association CEO James Voortman and Pimento director Simon Oldfield to look at what UK auto retailers can learn from the rollout of the agency model overseas.

Other speakers include Radius Law’s Iain Larkins, the NFDA’s Stephen Latham, Inchcape CFO Stephen Hill, Salesforce’s Matt Simkins and CitNOW Group’s Alistair Horsburgh, ATG’s Tim Smith.

The implications of the rollout of agency conference is on Thursday 26 January 2023 at the Hilton Hotel Northampton. Book your place here

 

WORLD NEWS

Atlantic Coast buys 10 Vision retailers

Florida’s Atlantic Coast Automotive has bought 10 retailers from New York’s Vision Automotive Group. It is Atlantic’s second acquisition in the state of New York this year, after buying six retailers from Nye Automotive Group in May. It was also due to buy six retailers from LMP Automotive Group in August, but Atlantic terminated the deal in October.

http://bit.ly/3gJwDDp

 

 

STOCKWATCH

Closing prices on 25 November 2022 and weekly change

Auto Trader Group 577.4p (+10.6p / +1.8%)

Caffyns 500.0p (-25.0p / -4.8%)

Halfords 212.6p (+7.4p / +3.5%)

Inchcape 879.0p (+34.0p / +3.9%)

Lookers 76.3p (-1.5p / -1.9%)

Motorpoint 157.0p (+4.0p / +2.5%)

Pendragon 28.3p (+1.3p / +4.7%)

Vertu 48.0p (+0.8p / +1.6%)

 

COMING UP

Tuesday, UK consumer credit

Tuesday, mortgage approvals

Wednesday, BRC shop price index

Wednesday, Nationwide house price index

 

MONEY MATTERS

Could funding childcare boost the economy?

The UK’s labour shortage could be eased by helping parents who want to work, but whose childcare costs exceeds their pay. The UK’s patchwork childcare provision is among the costliest of any developed nation. It is estimated there are 1.7m women who would like to work more hours but are unable to due to childcare. Another 1.3m have been turned down for a job due to problems with childcare; it could amount to £11bn in foregone earnings.

http://bit.ly/3Fg1pO1

 

Rising state pension age: how to protect your retirement

Government proposals to increase the state pension age to 68 earlier than planned – by the mid-2030s – are leaving hundreds of thousands of retirement plans in the balance. Those currently in their mid-50s will have to wait a year longer to receive their pension. Experts advise people plan ahead by putting together a cash flow, capitalising on their workplace pension, topping up the minimum contribution and, due to compound interest, starting early.

http://bit.ly/3XAtN4n