Auto Retail Agenda: 31 January 2022
29 January 2022
- NISSAN LAUNCHES NEW LIVE ONLINE SHOWROOM
- UNDERPRICING COST RETAILERS £125m IN JANUARY
- CAZOO CAR CRASH
- VAUXHALL’S STEPHEN NORMAN RETIRES
- YET MORE DELAYS FOR TELSA GERMANY
- LAMBORGHINI PHILADELPHIA $500k CAR INSURANCE NICHE
- STOCKWATCH
- COMING UP: Bank of England interest rate decision
- 5% INTEREST RATE FORECAST FOR 2022
- ECONOMIC FORECASTERS ‘MISSED 2021 INFLATION SURGE’
Nissan launches new live online showroom
Nissan has launched a Live Showroom project, giving customers a walkaround of three models including the new Ariya electric SUV before feeding leads into the retailer network.
Prospective customers access the Live Showroom, which went live on Monday 24 January and is active from 11am-11pm, through the Nissan website. Visitors are given a real-time one-to-one walkaround on a hand-held camera detailing the Ariya, which is the only example in Europe, the new Qashqai or the electric Leaf.
The presenters aren’t targeted on sales but do take details on a form visible to the customer to pass on to the nearest retailer.
If the presenter is with a customer, the system marks the presenter as absent, and gives the customer the opportunity to schedule an allocated time slot.
Based near Nissan’s UK HQ in Watford, the showroom setting is also able to host physical walkarounds for groups of potential customers, with one leasing company already having been given a tour of the Ariya.
The scheme follows on from a similar short-term initiative Nissan ran for the launch of new Qashqai last summer, which it claimed led to high conversion rates, although numbers are yet to be revealed.
Underpricing cost retailers £125m in January
Retailers on Auto Trader lost £125m in potential profit due to underpricing stock in January. This is due to the record pace at which the used car market is moving. It equates to £11k per retailer – and, compare to a £93m loss in August 2021, the gap is widening.
“With used car prices accelerating so quickly at the moment, it’s easy to lose track of the current market value,” said Auto Trader data and insight director Richard Walker. “But with significant profits at stake, it’s more important than ever retailers keep using the data to regularly update their forecourts and ensure they’re getting the best possible margin for their stock.”
Cazoo car crash
Investor John Harrington described Cazoo’s IPO as a “car crash” over the weekend. It was valued at $7bn at the time of flotation; it is now valued at $3.1bn. “The valuation caused much head-scratching at the time, as did the enthusiasm for online rival Cinch.” Pendragon sells more cars online than Cazoo and Cinch combined, said Mr Harrington, yet its stock market value is less than £300m.
Cazoo “needs to spend to establish a ‘moat’ against competitors and potential new entrants to the market”.
Vauxhall’s Stephen Norman retires
Former Vauxhall boss Stephen Norman is retiring. He was succeeded by former Nissan chief Paul Willcox last year, and is now stepping back from his role as global senior vice president of sales, aftersales and marketing of Vauxhall-Opel. Sales and marketing chief Florian Huettl will succeed him.
Mr Norman initiated refranchising the Vauxhall retailer network from 330 to 250 outlets, reorganised parts distribution and oversaw the new emphasis on ‘Britishness’.
WORLD NEWS
Yet more delays for Telsa Germany
Tesla’s €5bn German factory, due to open in July 2021, continues to await final approval. Production tests so far have “not been satisfactory”. A request for additional functional tests has been submitted. The building application remains in its final stages of review with the Brandenburg ministry. Up to 500k Tesla Model Y could be produced at the site once approved; European Model Y are currently imported from Shanghai.
Lamborghini Philadelphia $500k car insurance niche
Lamborghini Philadelphia has begun offering auto and home insurance policies to its “white-shoe clientele”. The policies are either cheaper or have more comprehensive insurance than customers’ existing policies. Each sale generates $1,400 commission and the retailer has sold more than 30 policies so far. It will be ramped up in 2022 with the company predicting $500k in premiums.
STOCKWATCH
Closing prices on 28 January 2022 and weekly change
Auto Trader Group 653.4p (-30.2p / -4.5%)
Caffyns 550.0p (-25.0p / -4.4%)
Halfords 325.2p (-14.8p / -4.4%)
Inchcape 832.5p (-25.0p / -2.9%)
Lookers 88.6p (+18.0p / +22.6%)
Marshall Motor Holdings 397.0p (n/c)
Motorpoint 288.0p (-12.0p / -4.0%)
Pendragon 21.9p (+0.7p / +3.2%)
Vertu 66.0p (+1.8p / +2.7%)
COMING UP
Monday, FCA announces new practitioner panel chair
Monday, Nationwide House Price Index
Wednesday, BRC Shop Price Index
Thursday, Bank of England interest rate decision
9 February, Radius Law automotive law update conference: sign up here
MONEY MATTERS
1.5% interest rate forecast for 2022
Financial markets predict the Bank of England will raise interest rates five times in 2022, to 1.5%. The first rate rise is expected to take place on Thursday, with the MPC likely to raise rates to 0.5%. November’s forecast for a 5% GDP rise could be reduced to 4%, too.
Boris Johnson and Rishi Sunak have also confirmed the April rise in National Insurance will also go ahead.
Economic forecasters ‘missed 2021 inflation surge’
Economic forecasters “did a poor job predicting the recovery, which should have been much more straightforward” said one economic analyst last weekend. Incorrect predictions about economic growth and unemployment meant they missed the surge in inflation.
Forecasters are now predicting inflation will hit 7% in H1 before ending 2022 at 3.5%. The bank rate will rise to between 0.75% and 1.25%. Unemployment will remain at just over 4%. “Forecasters will be hoping to get closer than last year. There is a decent chance that they will.”
Tags:
Auto Trader, Bank of England, Cazoo, Cinch, inflation, interest rates, Lamborghini, Nissan, Pendragon, Tesla, Vauxhall 
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