• JLR TO REVIEW AGENCY MOVE IN 2027
• ARNOLD CLARK ACQUIRES PETER VARDY KIRKCALDY MG
• NEW FD FOR RENAULT RETAIL; NEW CORPORATE BANKER FOR VERTU
• THE7STARS WINS MOTORPOINT MEDIA ACCOUNT
• AUTO RETAIL LIVE WITH PETER SMYTH, TOM SLACK
• RETAILERS STEP UP TO HELP SAVE FISKER
• US TO INVESTIGATE CHINA EV SECURITY RISK
• STOCKWATCH: Halfords plunges on profit warning
• COMING UP: Budget 2024
• CHANCELLOR TEMPERS BUDGET TAX CUTS
• AUTO TRADER IS FTSE’s SECOND MOST PROFITABLE COMPANY

JLR to review agency move in 2027

JLR will review its recent decision to stick with the franchised model and look again at agency in late 2027, according to UK managing director Patrick McGillycuddy.

Speaking exclusively to sister title Auto Retail Bulletin, McGillycuddy said: “When you look at the amount of change that we are already planning to implement, the amount of change we’d have to drive into our network, that would create disruptions for our clients. So actually, at this point in time, it wouldn’t be in the interest of our clients.”

He now believes most of the aims of the original agency plan can be achieved though the franchised model, with new agreements set to be implemented before the end of 2024.

In terms of timings and the roll-out of the new franchise plan, McGillycuddy said: “We’ve got a plan to implement the new agreement over the balance of this year, and then some of the deliverables will happen into next year. So there is no cliff edge in terms of implementation.”

While the agency plans have been dropped for now, JLR is sticking to its plans to reshuffle the network and, in particular, cull the number of Jaguar sites. Commenting on the future of agency, he added: “We’ve committed to review it again in 2027.”

JLR will again rework the margin structure under the new ‘refined franchise’ plan. In late 2022, JLR caused dissent among retailers by cutting the margin on new cars. At the time, retailers told Auto Retail Bulletin this was to cover the costs of a move to agency – something McGillycuddy denies was the case.

* Read the full interview in Auto Retail Bulletin: free trial here

 

Arnold Clark acquires Peter Vardy Kirkcaldy MG

Arnold Clark has acquired Peter Vardy’s Kirkcaldy MG retailer. The site was, until 2021, a Vauxhall franchise, before becoming a Carz retailer, then switching to MG in autumn 2023. All Peter Vardy staff have been transferred.

The deal means Arnold Clark now operates 10 MG sites in the UK.

Aberdeen’s Peter Vardy Carz branch has also now closed. A source said the site “had been sold” to Arnold Clark.

https://tinyurl.com/538kk5ur

 

New FD for Renault Retail; new corporate banker for Vertu

Adrian Burke has been appointed financial director at Renault Retail Group. He replaces Scott Kilbourne. Elina Karppinen has also been named commercial and marketing director.Vertu has announced a change of adviser, with Stifel Nicolaus Europe being named its sole corporate banker.

 

The7Stars wins Motorpoint media account

Motorpoint has appointed The7stars to handle its media planning and buying account. The contract moves from Manchester’s Running Total. The7stars will work alongside Motorpoint’s creative and customer experience agency New Commercial Arts.

https://tinyurl.com/35k5449h

 

Auto Retail Live with Peter Smyth, Tom Slack

Swansway’s Peter Smyth, Ron Brooks’ Tom Slack and Auto Trader’s Karolina Edwards-Smajda will discuss the state of the current market and whether March will be a profit success story in the next Auto Retail Live on 14 March.

The free 40-minute webinar at 2pm will also see panellists available live to answer your questions and help you run a more successful business.

Sign up here: https://tinyurl.com/bdc6zh48

 

 

WORLD NEWS

Retailers step up to help save Fisker

US new entrant Fisker says it will rely on its nascent franchised retailer network to boost sales after moving away from direct sales in early 2024. CEO Henrik Fisker said the company has received 250 expressions of interest and will have 100 retailers in the US by the end of the year, and 50 to 60 in Europe.

Fisker has also entered into discussions with a large, unnamed automaker (believed to be Nissan) – after revealing on Thursday there is doubts about its ability to continue as a going concern following a Q4 loss of $463m.

https://tinyurl.com/bdz3jfmt

 

US to investigate China EV security risk

The Biden administration is to investigate the national security risks of connected vehicles using tech from China. “Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People’s Republic of China,” said president Biden.

https://tinyurl.com/yyna72h7

 

 

STOCKWATCH

Closing prices on 1 March 2024 and weekly change

Halfords plunges 25% after second profit warning in just over a year

Auto Trader Group 747.4p (+12.8p / +1.7%)

Caffyns 450.0p (n/c)

Halfords 156.0p (-45.2p / -25.3%)

Inchcape 690.0p (+32.5p / +4.8%)

Motorpoint 128.5p  (+2.5p / +1.9%)

Pinewood 37.0p (+1.45p / +3.9%)

Vertu 67.5p (+0.6p / +0.8%)

 

 

COMING UP

Tuesday, Budget

Tuesday, BRC shop price index

Thursday, Halifax house price index

14 March, Auto Retail Live business briefing: sign up here

 

 

MONEY MATTERS

Chancellor tempers Budget tax cuts

Chancellor Jeremy Hunt says he “won’t take any risks” in this week’s Budget as it was revealed he was meeting PM Rishi Sunak on Sunday evening to decide where a 2p tax cut is affordable. Financial forecasts setting out how much headroom he has had “gone against us” with the OBR estimating he has £12.8bn to play with – over £2bn less than earlier Treasury figures.

https://tinyurl.com/ycbt4v2r

 

Auto Trader is FTSE’s second most profitable company

Auto Trader is the second most profitable company in the FTSE 100, with an operating margin of 55%. The Times revealed figures from FactSet, which show Rightmove topping the take with an improved operating margin of 71%.