Auto Retail Agenda: 30 January 2023
28 January 2023
- ‘FANTASTIC’ AGENCY CONFERENCE GIVES DELEGATES THE EDGE
- HALFORDS ‘WILL NEVER BE BEATEN ON PRICE’
- NFDA LAUNCHES MOT PETITION
- LLOYDS IN £4m CAURA INVESTMENT
- MERCEDES-BENZ FACEBOOK AGENCY POST GOES WRONG
- FORD REVIEWS CONTROVERSIAL EV RETAILER RULES
- CHINESE NEW CAR MARKET SLIDES ON COVID SPIKE
- STOCKWATCH
- COMING UP: interest rate decision
- BoE RECESSION FORECAST U-TURN
- SIGNIFICANT TAX CUTS IN MARCH BUDGET ‘UNLIKELY’
- BLOG: CAN STELLANTIS MAKE AGENCY WORK?
‘Fantastic’ agency conference gives delegates the edge
Nearly 100 senior auto retail executives received unparalleled insight into the agency model at the latest Auto Retail Network conference held in Northampton last week.
“The quality of the debate right from the start, the insight and the participation from the members, all were fantastic,” said one guest, describing it as a “high value-add event”.
There were four key sessions, covering the latest legal framework, the financial model for agency, practical considerations on the implementation of agency, and the challenges and opportunities to making agency work.
Radius Law’s Iain Larkin opened the conference by stating he thought agency was a good thing – for OEMs, retailers and consumers alike. “Everyone is a winner… if it’s done right. The only ones who will be losers are the price comparison services.”
An agent is someone with the power to negotiate on behalf of someone else, explained Iain – in company law, they are called the principal. They set the price, “and this is what agency is all about – brands can’t set prices under franchise, as it would be unlawful price fixing”.
Genuine agents must also not bear any significant risk, he added, which retailers should see as an opportunity to take cost out of their balance sheets; Iain also advised any retailers presented with an agency agreement “to get a good lawyer”.
* Read all about the Agency Conference 2023 in the next edition of Auto Retail Bulletin – sign up here for a free trial subscription
* BLOG: Can Stellantis succeed with agency?
Halfords ‘will never be beaten on price’
Halfords has launched a new price commitment on car parts. It says it will never be beaten – and will refund the difference if parts are found cheaper elsewhere. The firm is also offering free next-day delivery on all car parts orders. And customers can pay for selected parts over £30 in an instalment plan with Klarna.
NFDA launches MOT petition
The NFDA and other trade bodies have launched a petition to stop government plans to extend a car’s first MOT from three years to four. “We believe this will be dangerous, expensive, damaging and unnecessary.”
The petition already has almost 2,500 signatures; the government is obliged to respond if it reaches 10k signatures, and consider it for debate in parliament if it reaches 100k signatures.
Government consultation on proposals to change the MOT frequency ends on 1 March 2023.
Lloyds in £4m Caura investment
Lloyds Banking Group has invested £4m in ‘all-in-one’ motoring app Caura. The smartphone service brings all motoring-related payments into one place. The investment will help develop embedded financial payments such as vehicle loans and insurance, plus white-label payment solutions for automotive partners.
Mercedes-Benz Facebook agency post goes wrong
A Mercedes-Benz UK Facebook post “celebrating the new way of buying”, and advertising January discounts, to more than 700,000 followers has instead filled with a diatribe of abuse. Complaints include delivery times and poor customer service as well as the move to agency.
Moderators have frequently responded by asking people to email or call the customer service team. “If people like just calling a retailer to sort stuff or ask stuff, this isn’t a step up,” one industry expert told Auto Retail Agenda.
WORLD NEWS
Ford reviews controversial EV retailer rules
Ford is working with its dealer council on changes to its electric vehicle certification programme following complaints it’s unfair and breaks franchise laws. The difference between the two tiers is expected to be narrowed, and a requirement for retailers to offer 24-hour public EV charging may be dialled back. Discussions were understood to have taken place at NADA.
Chinese new car market slides on Covid spike
Chinese new car sales fell sharply in the first half of January as a severe coronavirus outbreak hit production and deliveries. Retail sales slid 21%. Around 80% of the Chinese population is understood to have been infected during the latest wave.
STOCKWATCH
Closing prices on 27 January 2023 and weekly change
Auto Trader Group 604.4p (+20.8p / +3.5%)
Caffyns 500.0p (n/c)
Halfords 202.0p (+19.9p / +10.3%)
Inchcape 919.0p (-6.0p / -0.6%)
Lookers 86.0p (+2.3p / +2.7%)
Motorpoint 144.0p (-0.5p / -0.3%)
Pendragon 20.1p (+0.6p / +3.0%)
Vertu 58.3p (+1.5p / +2.6%)
COMING UP
Tuesday, Nationwide house price index
Tuesday, UK consumer credit
Wednesday, BRC shop price index
MONEY MATTERS
BoE recession forecast U-turn
The Bank of England is expected to upgrade its outlook for the economy on Thursday and say the downturn will be shorter and shallower than initially feared. Deutsche Bank expects the Bank to halve the length of recession, to four quarters. Barclays expect the extent of the downturn to be halved, to 1.5%.
During the MPC meeting, interest rates are expected to increase to 4% to combat inflation. Markets expect a peak of 4.5%.
Significant tax cuts in March Budget ‘unlikely’
BLOG
Can Stellantis succeed with agency?
Tags:
aftersales, agency, Bank of England, Budget, Caura, China, EVs, facebook, Ford, Halfords., interest rate, Lloyds, Mercedes Benz, NFDA, recession, tax 
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