Auto Retail Agenda: 6 February 2023
04 February 2023
- MERCEDES-BENZ ALREADY DISCOUNTING AGENCY CARS
- FCA OUTLINES CONSUMER DUTY SUPPORT
- HEYCAR SPONSORS HENDY GROUP AWARDS
- AUTO TRADER DOWNGRADED – BUT SHARES HEAD HIGHER
- VOLVO REVIVES SUBSCRIPTIONS IN CALIFORNIA
- ‘SONY CAR’ MAY USE NON-HONDA AFTERSALES
- TIME DEALER OF THE YEAR 2023 REVEALED
- STOCKWATCH
- COMING UP: GDP, 2022 used car sales
- BoE HINTS AT END TO INTEREST RATE HIKES
- WHAT THE NFDA WANTS FROM THE BUDGET
Mercedes-Benz already discounting agency cars
Mercedes-Benz is tempting new car buyers with money off a series of models – despite its recent switch to the so-called ‘fixed price’ agency model.
Those buying between 1 February and 31 March can save £2,500 on a number of cars including the A 180 and A 200, the A 35 4Matic, plus the C-Class estate and coupe. Smart EQ fortwo models are also included.
The move in part appears to be an attempt to clear stocks of the pre-facelift A-Class: the firm states ‘New-A-Class (MY803.5)’ and plug-in hybrid versions are excluded. However, both finance and cash buyers can access the savings.
The price reductions are flagged as an ‘offer price’ in green alongside the original price on the firm’s website.
“The offer shall be secured by the customer only once the customer submits ‘buy now’ on the specific vehicle between the 1 February – 31 March 2023.” states MBCUK.
FCA outlines Consumer Duty support
The FCA is directly setting out expectations of the upcoming Consumer Duty in letters to firms – and those providing motor finance will receive their letters very shortly. It is also planning a series of regional in-person events and sector-based webinars.
“Leaders have a key role to play here,” said FCA executive director Sheldon Mills. “We want to see boards and senior management further embed the interests of customers into their firms’ culture and purpose.”
The FCA says one benefit of the Duty for firms will be that it becomes a “simplified and less reactive form of regulator” so companies can innovate and compete more effectively.
Heycar sponsors Hendy Group awards
Heycar “proudly” sponsored the latest Hendy Group Awards, with the ‘Cirque du Hendy’ event held last Saturday evening at the Bournemouth International Centre. 11 awards were presented, including Site of the Year, Hero 2022 and the CEO’s Award 2022. The event was described as Hendy’s biggest awards celebration yet.
Heycar recently made 73 people redundant. New CEO Andreas Gruber said the “numerous crises of the last two years have also affected our business” and the restructuring was aimed at continuing “a sustainable development of our company”.
Auto Trader downgraded – but shares head higher
Auto Trader was downgraded from ‘buy’ to ‘neutral’ by UBS last week because the firm faces “increasing risk” due to a decline in car listings. Despite this, shares rose more than 5% – and confusingly, UBS itself upped its target from 600p to 630p.
The bank’s analyst Adam Berlin said it wants to see a recovery in listings as supply improves and demand weakens, evidence of progress in digital transactions, and an improvement in the performance of new vehicle leasing subsidiary Autorama.
WORLD NEWS
Volvo revives subscriptions in California
Volvo is reintroducing vehicle subscriptions in California – several years after dealer associations in several states said the online system violated franchise laws. The Californian New Car Dealers Association stated Volvo had reduced franchisees to “acting as an agent of the manufacturer”.
The service has been revamped so retailers can sell in-stock models to subscribers, instead of them having to go online.
‘Sony car’ may use non-Honda aftersales
Afeela, the new EV car brand created by Sony and Honda, may receive aftersales support from outside the Honda and Acura networks when deliveries start in 2026. The Sony Honda Mobility company wants to rethink auto retail – “even if it means disrupting relations with franchised dealers”.
US Honda and Acura retailers are already understood to be wary of Afeela’s plans to sell online instead of through dealerships.
Time dealer of the year 2023 revealed
Gary Rome Hyundai Massachusetts has been named the Time Dealer of the Year at NADA 2023. It is the 54th year of the Time magazine award, described as one of the most prestigious and coveted in North America. The field included more than 16,000 franchised retailers, and there was a shortlist of 48 nominees.
STOCKWATCH
Closing prices on 3 February 2023 and weekly change
Auto Trader Group 638.2p (+33.8p / +5.4%)
Caffyns 500.0p (n/c)
Halfords 213.4p (+11.4p / +5.4%)
Inchcape 931.0p (+12.0p / +1.2%)
Lookers 90.1p (+4.1p / +4.6%)
Motorpoint 142.5p (-1.5p / -1.0%)
Pendragon 19.6p (-0.5p / -2.5%)
Vertu 60.0p (+1.7p / +2.8%)
COMING UP
Monday, SMMT January new car registrations
Tuesday, Halifax house price index
Friday, UK GDP
Friday, SMMT used car data for 2022
MONEY MATTERS
BoE hints at end to interest rate hikes
Bank of England chief economist Huw Pill has suggested interest rate rises may be put on hold as policymakers were wary of doing “too much” to curb inflation. There is a “lot of policy in the pipeline”, and the bank has dropped a promise to act “forcefully” if inflation pressures prove more persistent in the coming months.Money markets have duly scaled back their expectations for rate rises.
What the NFDA wants from the Budget
The NFDA wants the government to improve EV infrastructure and address the UK’s skills shortage in its upcoming Spring Budget, expected on March 16. The organisation submitted its Budget proposal to chancellor Jeremy Hunt last week.
Sue Robinson has called for the treasury to back the automotive sector’s efforts in achieving net zero, and also wants it to rethink the apprenticeship levy.
Tags:
Afeela, agency, Auto Trader, BoE, consumer duty, discounts, FCA, GDP, Hendy, Heycar, Honda, Mercedes Benz, NFDA, subscriptions, used cars, Volvo 
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