• JLR-OWNED DEALERSHIPS PART OF JAGUAR RE-LAUNCH
• LITHIA COMING SOON TO UK?
• LAWRENCE HAMILTON TAKES GENESIS TOP JOB
• CAR BUYERS ‘FEELING THE PINCH’
• LOOKERS MERCEDES-BENZ RETAILER TO CLOSE
• BANK TO STOP LOANS ON IC CARS
• ‘GREAT TIME TO EXIT’
• STOCKWATCH
• COMING UP: New 72-plate registration day
• JOBS ‘BLOODBATH’ PREDICTED
• UK STAGFLATION WARNING

JLR-owned dealerships part of Jaguar re-launch

Jaguar Land Rover will open a network of manufacturer-owned stores as part of its launch of a new all-electric Jaguar range in 2025.

Fresh on the heels of a planned move to agency agreements by 2024 for its UK retailers, JLR will open a global network of owned dealerships which, the manufacturer claims, will “completely change perception of the Jaguar brand and the automotive buying/ownership experience”.

The plan for a global network of JLR-owned stores has been revealed in a job advert by the manufacturer for a head of global retail operations.

Confirming the move, a Jaguar Land Rover spokesman said: “In 2025 across the globe we will launch a new all-electric Jaguar range which will be a copy of nothing. Ahead of the launch we are reimagining every aspect of our Jaguar business including how we recreate the brand, and how and where we engage with our customers. We will give further updates in due course.”

The retail operations job advert sets out that the incumbent will “define and build the systems, processes and tools required to operate global retail at scale”, “continually improve the client experience, store performance and brand perception via a test, learn and innovate approach” and overall will be “responsible for enabling and supporting the rollout, operation and consistently high performance of a global network of owned stores as part of an omni-channel, luxury client experience that aims to completely change perception of the Jaguar brand and the automotive buying/ownership experience”.

Retailers that Auto Retail Agenda spoke to at the time of the agency announcement voiced concerns about the lack of future plans for the Jaguar brand and its ability to generate profitable sales.

A relaunch of the Jaguar brand could go some way to solving this issue.

JLR is understood to have toyed with the idea of small network of brand super-centres in the past. However, these would have been owned and operated by retail groups.

It is unclear how many manufacturer-owned stores each country will have and when the first of the new sites will open, or how they will operate alongside the retail group-owned Arch sites.

 

Lithia coming soon to UK?

Lithia Motors CEO Bryan DeBoer “appears to have sped up his interest” in entering the UK market. Last year, the second-largest US retailer targeted the UK and Australia “two to five years out… nothing urgent”. But news of the failed Pendragon deal earlier this month suggests Lithia is stepping up its plans for overseas expansion.

Lithia has been described as an opportunistic buyer in a fragmented space with “tonnes of options” in English-speaking foreign markets.

“It makes huge sense for Lithia to buy a large UK group,” said one analyst.

The UK is further along in terms of EV penetration, direct-to-consumer retailing and the agency model, which would provide Lithia with learnings as to what the future could look like in the US, said another.

https://bit.ly/3KAdnD6

 

Lawrence Hamilton takes Genesis top job

Former Kia UK marketing chief Lawrence Hamilton has been named Genesis Motor Europe MD. He succeeds Dominique Boesch, who is leaving to “pursue a new business opportunity”.

 

Car buyers ‘feeling the pinch’

Retailers are reporting a shift in consumer behaviour due to the cost of living crisis. Buyers are seeking cheaper, non-premium, more fuel-efficient cars and “banking the cash difference”. There has also been a drop in the number of consumers looking to lease vehicles – and those who do are choosing cheaper deals.

https://bit.ly/3QZYeNG

 

Lookers Mercedes-Benz retailer to close

Lookers Mercedes-Benz Walsall is to close at the end of September. The retailer has moved almost all over to its nearby Wolverhampton dealership. Talking to Auto Retail Agenda, Lookers CEO Mark Raban said all but a couple of staff had been kept on and that the move would improve efficiencies of the group.

 

 

WORLD NEWS

Bank to stop loans on IC cars

Bank Australia says it will stop giving new car loans to customers buying petrol or diesel cars from 2025. The EV-only policy was announced by the bank’s chief impact officer as a “responsible step both for the environment and borrowers”.

https://bit.ly/3KzX359

 

‘Great time to exit’ 

Retailer buy-sell activity is flourishing as continued stock shortages and elevated earnings make it a great time for owners looking to exit. In the US, earnings are expected to remain elevated for the next three years, which is driving a surge in retailers and investors looking to acquire dealerships.

https://yhoo.it/3Q2xuKZ

 

STOCKWATCH

Closing prices on 26 August 2022 and weekly change

Auto Trader Group 650.6p (-24.4p / -3.6%)

Caffyns 550.0p (n/c)

Halfords 124.7p (-32.0p / -22.7%)

Inchcape 771.0p (-38.5p / -4.8%)

Lookers 82.4p (+3.3p / +4.0%)

Motorpoint 195.75p (-0.5p / -0.2%)

Pendragon 22.3p (-1.9p / -8.1%)

Vertu 50.3p (-0.9p / -1.7%)

 

COMING UP

Tuesday, UK consumer credit

Wednesday, Nationwide house price index

Wednesday, BRC shop price index

Thursday, 72-plate new registration

13 September, Auto Retail Live business briefing – sign up now

 

 

MONEY MATTERS

Jobs ‘bloodbath’ predicted

Soaring energy bills could put half a million jobs in the hospitality industry at risk, say business leaders. 10,000 businesses could shut permanently in the next 18 months, with others shutting for one or two days a week to save money.

https://bit.ly/3CDOfcz

UK stagflation warning

Despite the above news, an economist has warned the strong UK jobs market and vulnerability to high energy prices puts the UK at risk of stagflation – high inflation in a declining economy. Interest rates are forecast to rise above 4% in 2023. Stagflation could trigger a renewed drop in the pound, making imports more expensive.

https://bit.ly/3Kqlgeh