02 June 2019

• AUDI TO START ONLINE SALES
• SHAREHOLDERS PROTEST OVER LOOKERS-BOARD PAY POLICY
• TOYOTA SCRAPS SCRAPPAGE SALES
• SALES AND PROFITS UP AT VT HOLDINGS
• TRUMP’S TARIFFS HIT GERMAN CAR MAKERS
• CHINA TO SEE 100% EV GROWTH IN TWO YEARS
• STOCKWATCH – Motorpoint beats 10% monthly growth
• LAUNCH DIARY – BMW X1, Mercedes-Benz GLC, Bentley Flying Spur
• COMING UP – Mergers and acquisitions data, NFDA regional meeting, Motorpoint annual results
• MONEY MATTERS – Consumer confidence up
• OUR BLOG – Are staff shares a way forward?

Audi to start online sales

Audi will begin online sales on Wednesday with a small pilot scheme and has confirmed the programme will in time be rolled out to the UK.

Next week’s trial is confined to the German market only and with just 99 limited edition TT coupes but Audi says eventually online sales will come here and that its retailers are being kept fully informed.

Speaking exclusively to Auto Retail Agenda, an Audi spokesman said: “Online sales are coming to the UK but the special edition TT will not be, that is a car for other markets.

“The dealer network is aware of things changing but we will continue to operate with them in the same way. We just announced a mobility partnership with Sixt and that complements the existing offer with Audi on Demand that our pilot retailers have. It will be the same situation with online selling, it is just a way to ensure the customers get satisfaction in the buying process.”

Martin Sander, vice president global marketing and sales, added: “We are garnering experience and learning a lot about user and buyer structures through this pilot project. This much is clear – online sales is just one pillar of future sales. Bricks-and-mortar retailing continues to be a strong and reliable partner for us even in times of digitalisation.”

Shareholders protest over Lookers-board pay policy

Lookers chief executive Andy Bruce faced a shareholders’ revolt this week with nearly one third voting against the group’s remuneration policy at its AGM. The backlash came partly in protest against his salary being raised from £368,000 to £450,000. Almost one fifth also voted against reappointing the auditor, Deloitte.

Expressing disappointment at the vote, Lookers said: “The board believed that it was necessary to increase the CEO’s base salary to ensure that remuneration remains competitive relative to the market. Notwithstanding this, the remuneration committee notes the concerns raised by shareholders and will reflect on the feedback when it puts a new policy to shareholders at the 2020 AGM.”

This week also saw analysts downgrade profit forecasts and now say they expect 2019 pre-tax profits to come in £3m lower versus the consensus forecast of £62-63 million despite Lookers releasing a positive Q1 trading update on Friday.

Toyota scraps scrappage sales

Toyota retailers have a month left to take advantage of the manufacturer’s scrappage scheme which has added more than 12,300 units since it began in September 2017.

The car maker has confirmed the programme will close on June 30 and now only applies to the Aygo and Yaris superminis which have taken the lion’s share of sales under the incentive.

Sales and profits up at VT Holdings

VT Holdings, the parent company of Griffin Mill Garages, Wessex Garages and CCR Motor Company – Mitsubishi’s Dealer of the Year – saw turnover and profits rise across the international cars-and-property group last year.

Its results for the year ended 31 March show turnover up 8% at £1.5 billion and operating profit up 10% at £44 million.

WORLD NEWS

Trump’s tariffs hit German car makers

German car makers’ shares slumped on news that US President Donald Trump will impose a 5% tariff on Mexican imports where they all have factories. The news came as BMW is due to open an £800 million factory there this week and which will produce one fifth of its North American output.

https://bit.ly/2Z6doFT

China to see 100% EV growth in two years

China’s EV market is forecast to break 2 million next year, double its 2018 volume, and hit 3.5m by 2023 despite the government rolling back its sales incentives for them. EV sales in just two cities, Shenzhen and Shanghai, totalled more than the entire sales of Germany and the UK in 2018. They are set to account for 8% of car sales next year, 20 in 2025 and 68% by 2040.

https://bit.ly/2QddmbX

STOCKWATCH

Closing prices at 31 May and weekly movement

Motorpoint beats 10% monthly growth

BCA 181.0p (-4.4p)

Cambria 63.5p (n/c)

Caffyns 410.0p (n/c)

Inchcape 586.0p (+7.0p)

Lookers 85.9p (-0.6p)

Marshall Motor Holdings 166.5p (+1.5p)

Motorpoint 204.0p (+5.5p)

Pendragon 22.9p (-0.2p)

Vertu 40.6p (+0.4p)

LAUNCH DIARY

BMW X1. Compact SUV from £28,795

Mercedes-Benz GLC. SUV from £39,420

June 11: Global reveal of Bentley Flying Spur. Prices TBC.

September: BMW 1 Series from £24,430.

COMING UP

Tuesday: Mergers and acquisitions involving UK companies valued at £1 million or more, January to March. (ONS)

Thursday: NFDA South West regional meeting (Bristol)

11 June: Motorpoint annual results

MONEY MATTERS

Consumer confidence up

Buyers’ confidence is rising as they become more upbeat about their personal finances over the next 12 months.

Market researcher GfK’s long-running Consumer Confidence Index rose three points in May and Joe Staton, client strategy director at GfK, said: “Despite a backdrop of Brexit-related change and complexity, and price rises for most household bills in April, consumers have managed a seasonal spring in their step with a three-point uptick in consumer confidence this month.

“We’re seeing stronger positives in measures about how consumers view their personal financial situation coupled with a less negative view of the general financial situation across the UK in the coming year.”

Click here to read OUR BLOG  – Are staff shares a way forward?

John Swift

Tags: Audi, Lookers, Motorpoint, Scrappage, Total, Toyota, VT Holdings