• SPOTICAR: ‘BRAND-NEUTRAL’ PSA USED CARS COMING
• BEECHDALE IS ALFA ROMEO RETAILER OF THE YEAR
• LEARN ABOUT NEW ENTRANTS WITH AUTO RETAIL LIVE
• USED CAR RETAILER SENTENCED FOR ACCOUNTS FAILURE
• CARMAX HIRING DRIVE
• RECORD-LOW NEW CAR SUPPLIES IN US
• RENAULT: DEALERS ‘ESSENTIAL’ IN DIGITAL DRIVE
• STOCKWATCH – Caffyns profit “significantly improved” with 1.1% margin in the year to March 2021 despite turnover falling 16%
• COMING UP – Auto Trader results, Auto Retail Live: sign up here
• DATA CORNER – Volkswagen top so far in 2021
• ‘RIDICULOUS’ ADVERTISING SURGE
• CARVANA ‘A FASTEST EVER FORTUNE 500 COMPANY’

Spoticar: ‘brand-neutral’ PSA used cars coming

Spoticar, the used car operation of Stellantis, is due to launch in the UK in mid-June. All Stellantis brands will use the same Spoticar used car programme, replacing their existing used car brands, and current Groupe PSA head of used car operations Nick Richards will be UK used vehicle operations director.

The pan-European programme will see vehicles “selected, evaluated and prepped by the specialist of its maintenance and repair network”. Notably, Spoticar stataes vehicles will be offered “either online or at a limited number of bricks-and-mortar points of sale”. The brand includes one year of maintenance and a five-day money-back guarantee.

In explaining the strategy shift, PSA states: “Used car buyers are more interested in striking a bargain than in buying from a specific brand.

“By offering the widest possible range of used vehicles (within the own group), PSA is able to position itself as advantageously as possible on the rapidly growing, digitising and consolidating used vehicle market.”

The only exception is DS: to maintain “a premium approach”, its models will be sold under the DS Certified Label.

With the launch of Spoticar, PSA is targeting further growth in its used car sales in 2021, from 800k (its stated ambition in its Push to Pass strategy) to 1 million.

 

Beechdale is Alfa Romeo Retailer of the Year

Derby’s Beechdale has been named Alfa Romeo Retailer of the Year. It registered the brand’s highest sales volume (exceeding sales expectations for the high-margin Quadrifoglio line) and boasts “excellent” customer satisfaction scores. In the year ended October 2020, Beechdale profit before tax was up 24% to £266k.

 

Learn about new entrants with Auto Retail Live

New entrants and the changing landscape of auto retail will be discussed this week by Rockar founder Simon Dixon, Cazoo former operations director Neil Smith and Rapid RTC sales director Darren Preddy. Traditional retailers will learn from the new online-only entrants at 2pm on Tuesday, and live questions will be taken during the webinar.

Sign up now: https://bit.ly/3pslRkR

 

Used car retailer sentenced for accounts failure
Used car retailer Brian Capper, director of Ikonic Solutions, has been sentenced to an 18-month community order and an eight-year director disqualification for failing to keep company accounts. He falsely claimed ill health had prevented him from keeping company records; he in fact deliberately disposed of them. The company was wound up in 2016 with tax liabilities of more than £654k; it was discovered all business transactions were paid into his personal account.

https://bit.ly/3fTLDeF

 

 

WORLD NEWS

CarMax hiring drive

CarMax is seeking to hire 1,800 people for vehicle preparation roles. It has partnered with Indeed to hold career events and is also accepting virtual applications. CarMax is the largest used car retailer in the US and said profits decline in Q4 was down to a lower sellable inventory.

https://bit.ly/3fTuGBa

 

Record-low new car supplies in US

Sales of the Ford F-150, America’s best-selling vehicle and Ford’s most profitable car, fell 29% in May due to ongoing chip shortages. One large retailer, Varsity Ford, normally stocks 1,500 vehicles: last week, it had 30. The US industry entered June with a 23-day supply of vehicles, a record low. In June 2020, there was a 61-day supply. Toyota has just an eight-day supply.

https://bit.ly/3w2U5hG

 

Renault: dealers ‘essential’ in digital drive

Renault has launched a long-term leasing product called Easy Lease in Italy, which aims to digitise the entire customer journey.

However, insisted sales SVP Fabrice Cambolive, the dealer network remains key: “It is an essential human contact point to reassure the customer and guarantee the best experience at the delivery stage”. Mr Cambolive said, “our aim is to complete the range of journeys we offer with our customers with a 100% digital journey” but stressed it will be an “omnichannel strategy – digital and network”.
https://bit.ly/34Z1Rgh

 

 

STOCKWATCH

Closing prices on 4 June 2021 and weekly change

Caffyns profit “significantly improved” with 1.1% margin in the year to March 2021 despite turnover falling 16%

Auto Trader Group 557.8p (-3.8p / -0.6%)

Cambria 83.0p (n/c)

Caffyns 420.0p (+20.0p / +4.8%)

Halfords 379.0p (-2.4p / -0.6%)

Inchcape 780.5p (-2.0p / -0.2%)

Lookers 68.9p (+0.9p / +1.3%)

Marshall Motor Holdings 186.5p (+2.5p / +1.3%)

Motorpoint 281.0p (+13.0p / +4.7%)

Pendragon 18.5p (n/c)

Vertu 46.0p (+2.5p / +5.5%)

 

 

COMING UP

Monday, leading bank bosses and insurers to meet with PM and Chancellor

Tuesday, Auto Retail Live: sign up here

Tuesday, UK retail sales

Thursday, Auto Trader results: experts predict £140m profit

Friday, UK GDP

 

DATA CORNER

Volkswagen top so far in 2021

Volkswagen is leading UK new car sales so far in 2021 with almost 66k registrations – ahead of Ford on 60k. Audi, BMW and Mercedes-Benz are third, fourth and fifth, ahead of Vauxhall, Toyota and Kia. Land Rover, with 32k registrations, is well clear of Nissan on 30k.

 

MONEY MATTERS

‘Ridiculous’ advertising surge underway

Sir Martin Sorrell says the UK advertising market is the best he’s seen it in 45 years. The marketing guru says “ridiculous” growth in advertising spending by companies including automotive brands will continue for the rest of the year and into 2022. “It’s the snapback effect after what happened last year. It’s huge.”

https://bit.ly/3uTapQt

 

Carvana ‘a fastest ever Fortune 500 company’

Carvana, which inspired Cazoo, has listed on the Fortune 500 – making it onto the list in the same amount of time as Facebook. Only Amazon and Google made it onto the Fortune 500 faster. Carvana is placed 483^rd; other auto retailers include CarMax (136), Penske (143), AutoNation (145), Lithia (231), Group 1 (286), Sonic (308) and Asbury (405). The Fortune 500 is the US’ largest companies by total revenue.

https://bit.ly/3z8g7Bx