Auto Retail Agenda: 30 December 2024
29 December 2024
- FORD FACES £100m 2024 ZEV MANDATE BILL
- PM WRITES TO FCA URGING GROWTH
- FORD AUTHORISED REPAIRER COLLAPSES
- ‘FATHER’ OF SHERWOODS ALASDAIR MACCONACHIE DIES
- US RETAILERS MOVE TO BLOCK VW’S SCOUT DTC
- NISSAN SHARES TUMBLE ON HONDA DEAL WORRIES
- STOCKWATCH
- COMING UP
- £1 IN EVERY £4 IN COUNCIL TAX SPENT ON PENSIONS
- ‘AWFUL APRIL’ FORECAST FOR 2025
Ford faces £100m 2024 ZEV Mandate bill
Ford is Britain’s worst-performing big brand in electric cars, with just a 6.8% ZEV mix in the first 11 months of the year. New AutoMotive forecasts it could be 7k cars short of its ZEV target; with a £15k fine for every car short, this could notionally land it with a bill of more than £100m.
MD Lisa Brankin has demanded the government relax the ZEV mandate. “The end goal is not in question but current demand for electric vehicles is lower than expected and not in line with the mandated trajectory.
“There needs to be greater flexibility built into the scheme and government-backed incentives to help encourage customers to make the switch.”
On Christmas Eve, a consultation on delivering the 2030 ban on new petrol and diesel cars was announced. Transport secretary Heidi Alexander wants to “restore clarity” on how to deliver the ban.
Consultation is open now and closes on 18 February.
PM writes to FCA urging growth
The PM, chancellor and business secretary have written to watchdogs including the FCA to demand ideas for growth and investment amid sluggish economic growth, Sky News has reported. More than 10 regulators must each submit five pro-growth initiatives to Downing Street by 16 January.
Ford authorised repairer collapses
Swanson Motor Company has entered liquidation, leaving debts of more than £910k to unsecured creditors. HMRC is also likely to end up £34k out of pocket. The Newton Abbott used car retailer and Ford authorised repairer closed in November “due to unforeseen circumstances”.
‘Father’ of Sherwoods Alasdair MacConachie dies
Sherwoods has announced former MD Alasdair MacConachie died in hospital on Christmas day after a short illness. Described as the father of the business, he joined Sherwoods more than 40 years ago, eventually becoming MD and full owner. Son and current MD Simon MacConachie said his legacy was “underlined by the volume of personal tributes and messages we have received over the past few days”.
WORLD NEWS
US retailers move to block VW’s Scout DTC
Californian retailers are threatening legal action against Volkswagen’s Scout Motors’ direct to consumer sales and are demanding the OEMs stop taking refundable deposits claiming they are in violation of an amended state law prohibiting DTC sales. Tesla, which has operated without franchises since it was founded, is exempt from the amended law.
Nissan shares tumble on Honda deal worries
Nissan shares fell by as much as 15% last Friday, less than two weeks after soaring on news of a potential merger with Honda. Nissan investors could be disappointed by an expected 5:1 transfer deal in any merger, given Honda’s market value is four times larger than Nissan.
STOCKWATCH
Closing prices on 27 December 2024 and weekly change
Auto Trader Group 791.4p (+4.6p / +0.5%)
Caffyns 450.0p (n/c)
Halfords 134.0p (+0.6p / +0.4%)
Motorpoint 133.5p (-2.0p / -1.4%)
Pinewood 346.5p (+1.0p / +0.2%)
Vertu 59.2p (-0.8p / -1.3%)
COMING UP
Monday, Nationwide house price index
Thursday, BRC shop price index
MONEY MATTERS
£1 in every £4 in council tax spent on pensions
The “unjustifiably generous” Local Government Pension Scheme means nearly £1 in every £4 raised in council tax is being spent on staff pensions. The almost £7bn spent by councils on staff pensions would represent a penny on income tax if paid out of general taxation.
Analysts say that while private employers have become unable to meet the cost of such generous pensions, local authorities have” sailed blithely on regardless, relying on the captive funding of local authority taxpayers to subsidise their pensions”.https://tinyurl.com/y35nuttf
‘Awful April’ forecast for 2025
April 2025 will be “just as awful as the last few” with many households bills set to rise. The stamp duty barrier falls from £250k to £125k (£425k to £300k for first time buyers), council tax goes up by 5% and the second energy price cap of the year kicks in. The TV licence rises by £5, average water bills are forecast to rise by £85 and childcare could leap by up to 20% due to the rise in employer NIC and the national minimum wage.
The new tax year begins on 6 April, where the NIC threshold falls from £9,100 to £5k and the tax rate rises from 13.8% to 15%.
ISSN 3049-5725
Tags:
Alasdair MacConachie, consultation, FCA, Ford, government, Honda, Lisa Brankin, Nissan, pensions, Scout, Sherwoods, VW, ZEV Mandate 
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