Auto Retail Agenda: 4 September 2023
02 September 2023
- HENDY EXPANDS INTO STELLANTIS; PETER VARDY GROWS MG
- PERRYS REVENUE UP BUT PROFIT FALLS
- DALE WYATT: AUGUST NEW CAR SALES WILL BE UP 25%
- LOOKERS’ DUNCAN MCPHEE CONFIRMED FOR AUTO RETAIL LIVE
- SPOTICAR TO LAUNCH IN US
- EV SALES IN AMERICA ‘STUCK’
- STOCKWATCH
- COMING UP: August new car registrations, House of Lords EV inquiry
- ONS REVISES UK ECONOMY UPWARDS
- CHANCELLOR: INFLATION NOW ON TRACK TO HALVE
Hendy expands into Stellantis; Peter Vardy grows MG
Hendy Group is to open its first Vauxhall retailer following the asset purchase of the former Eden Vauxhall site in Poole. It has also agreed to sell Vauxhalls in Salisbury and is opening a Peugeot and Vauxhall retailer in Kent.
Hendy already represents Maserati but the new sites are its first large-volume Stellantis retailers and part of a strategic plan for a broader relationship with Stellantis.
“Dorset and Wiltshire are traditionally strong areas for the group, and we are looking forward to being part of Stellantis and welcoming the Eden Group colleagues to team Hendy,” said chief executive Paul Hendy.
The move “reinforces our long-term commitment to the south, investment in our future and providing a high-quality service for motorists across the south coast.”
The latest deal means Hendy operates across 57 locations, with 1,700 colleagues and turnover of over £1bn.
Meanwhile, Peter Vardy has acquired the MG Aberdeen and Peterhead franchises from Gillanders. “We can’t wait to welcome both existing customers and those new to the MG brand to our Lang Stract dealership,” said CEO Peter Vardy.
Peter Vardy also opened two brand new MG sites in Edinburgh and Kirkcaldy in August.
Perrys revenue up but profit falls
Perrys saw revenue rise 7% to £643m in the year ended December 2022 – but group profit (before exceptional items) fell 55% from £9m to £5.1m. The group blamed rising interest rates, new and used supply issues and limited resource availability which impacted the middle six trading months.
The final quarter of 2022, in contrast, was “ahead of initial expectations.
“Perrys has made a good start to 2023, performing ahead of expectations in the first half. Trading conditions have become tougher since the start of July, but the directors are confident the group is well-positioned to deliver a budget performance for 2023.”
MD Darren Ardron added that a “major focus has been placed on some of our non-sales operations, which continue to help contribute towards the overall group results.”
Dale Wyatt: August new car sales will be up 25%
Suzuki director Dale Wyatt predicts bumper 25% growth for August new car registrations, driven by significant growth in fleet. Tesla looks to have had a strong month too, so BEV numbers should be on track. Retail, in contrast, will be down 3% to 5% when the figures are announced at 9am on Tuesday.
As for Suzuki, the brand is up 33% year to date “and we are well set for a very strong second half of the year”.
Lookers’ Duncan McPhee confirmed for Auto Retail Live
The upcoming Auto Retail Live Business Briefing will see Looker’s Duncan McPhee, eStar Truck and Van’s Steve Bridge and Auto Trader’s Marc Palmer all give their views and insight into the state of the UK marketplace and what’s expected to happen in auto retail in the next few months.
The free briefing starts at 2pm on Tuesday 19 September and those looking for a competitive advantage should join the 40-minute session – which includes the opportunity to ask questions to the panel. Sign up here: https://bit.ly/45NcHUo
WORLD NEWS
Spoticar to launch in US
Stellantis certified used car division Spoticar, which launched in 2019 in 11 European countries, is now being rolled out in the US. The American used car market is, at 35 to 40 million sales a year, twice as big as the new car industry and an “integral part of our dealers’ profitability,” said head of US sales Jeff Kommor.
EV sales in America ‘stuck’
America is “looking like an also-ran in EVs” with market penetration stuck at 7% – compared to over 30% in China and 15% in Europe. A lack of product – just 5 EV models make up nearly 3 in 4 sales – quality issues, expensive list prices and the fact Americans drive longer distances are all factors. Motorists are also “infatuated with large vehicles”, while the US grid cannot currently handle a sharp rise in EV charging.
STOCKWATCH
Closing prices on 1 September 2023 and weekly change
Auto Trader Group 607.4p (+20.4p / +3.4%)
Caffyns 515.0p (n/c)
Halfords 183.8p (+3.4p / +1.8%)
Inchcape 768.5p (+37.0p / +4.9%)
Lookers 128.6p (-0.2p / -0.1%)
Motorpoint 94.7p (-0.2p / -0.2%)
Pendragon 18.3p (-0.76p / -4.0%)
Vertu 69.8p (+0.3p / +0.4%)
COMING UP
Tuesday, August new car registrations: Suzuki director Dale Wyatt predicts 25% growth, driven by fleet, with retail 3% to 5% down
Tuesday, BRC sales monitor
Tuesday, Lookers meeting to approve Global Auto Holdings takeover bid at 130p a share
Wednesday, House of Lords opens inquiry into EVs
Wednesday, Halfords trading update
Thursday, Halifax house price index
19 September, Auto Retail Life September business briefing. Sign up here: https://bit.ly/45NcHUo
MONEY MATTERS
ONS revises UK economy upwards
The UK economy returned to pre-pandemic levels two years earlier than initially forecast, revised ONS figures have revealed. It was 0.6% above its pre-pandemic size at the end of 2021, rather than 1.2% below. The revised figures show that, rather than being a laggard, the UK economy recovered more than most, behind only America and China.
However, the economy remains well below the OECD average for growth over the past three to four years.
Chancellor: inflation now on track to halve
The government is on track to halve inflation in 2023, meeting PM Rishi Sunak’s five pledges, insists chancellor Jeremy Hunt. The Bank of England is still predicting a 7.1% inflation rate, but experts say it will drop to around 5% by the end of the year.
“By sticking to our plan, we will ease the pressure on families and businesses alike.”
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