• FORD PINS EV HOPES ON GOVERNMENT INCENTIVES
• INEOS: DIRECT SALES ‘A MISTAKE’
• DUFF MORGAN & VERMONT SAW ‘NO FUTURE’ WITH STELLANTIS
• WEBINAR: EXPERTS AND OEMS TO EXPLORE NEW ENTRANTS
• STELLANTIS SUES UAW TO STOP STRIKES
• US RETAILERS WANT EV MANDATES TO BE RELAXED
• STOCKWATCH
• COMING UP: Auto Retail Live New Entrants 2024
• NEW RIGHTS FOR WORKERS ANNOUNCED THIS WEEK
• BoE CHIEF ECONOMIST COMMENTS AT ODDS WITH GOVERNOR

Ford pins EV hopes on government incentives

Without government incentives to stimulate retail and LCV electric vehicle demand, Ford could be forced to cut the supply of petrol and diesel cars, according to Ford managing director Lisa Brankin.

Speaking to Auto Retail Agenda, Brankin said that the Vehicle Emissions Trading Scheme (VETS), that’s linked to the ZEV Mandate, was her number one topic – and one that keeps her up at night.

“If we want to get to our target, we can’t depend just on company car drivers, because the retail sector is 40% of the industry. If we want to make VETS a success, we need some customer incentives to drive demand in the UK market and that’s what’s keeping me up at night.

“Our really strong call to UK government is that if we want to collectively get that 2030 CO2 target, we need to do something about driving customer demand.”

Without incentives to stimulate EV demand, one option for Ford would be to cut ICE supply, something Brankin didn’t rule out, despite saying that wasn’t the current plan: “VETS is a mix, so one strategy could be to say we’re not going to supply any more ICE. That’s not our plan. That’s not what we want do, but that is one of the plans that might have to happen.”

Brankin urged the government to use the upcoming autumn Budget to put incentives in place to stimulate the EV market: “There’s an opportunity that I would encourage the government to grasp to help us build momentum and get to where they need to get to, so we don’t get to 2030 and look back and think what went wrong.”

* Read the full interview with Lisa Brankin in this month’s Auto Retail Bulletin magazine, out this week.

 

Ineos: direct sales ‘a mistake’

Ineos chief executive Lynn Calder has admitted the OEM’s decision to pursue a direct-to-consumer sales model, rather than retailer franchising, was a mistake. “It was an example of us thinking we can do something better than the dealers who’ve been doing it for over 100 years. Let’s just let the people with decades of sales experience do their job.”

Ineos is now in the process of striking deals with retailers in every market.

https://tinyurl.com/32tx5czj

 

Duff Morgan & Vermont saw ‘no future’ with Stellantis

Norfolk’s Duff Morgan & Vermont announced a £249k loss in the year ended December 2023 – due to a variety of factors including a decision to end its relationship with Stellantis, “with whom we could see no future”.

The group is now focusing on used cars and aftersales, “as well as our relationship with the Volkswagen Group… we remain committed to the motor retail market and believe that fresh opportunities will present themselves”.

 

Webinar: experts and OEMs to explore new entrants

New entrant brands are joining the UK market at pace and putting pressure on existing OEMs. However, not all new entrants will succeed in the UK. What’s more, it is unlikely the UK can sustain more brands than we have now – which means some longstanding brands could also fall by the wayside.

Join Omoda and Jaecoo country director Victor Zhang, Vinfast European sales director Andrew Pilkington and Auto Trader commercial director Ian Plummer in the latest Auto Retail Live webinar. They will share their knowledge and experience about the Chinese new brands – and will be available to answer your questions.

The webinar is this Tuesday at 10.30am: sign up here

 

 

WORLD NEWS

Stellantis sues UAW to stop strikes

Stellantis is suing the United Auto Workers union to prevent possible strikes at US assembly plants. The UAW is threatening to walk out over delayed investments, but Stellantis says this would violate a 2023 collective bargaining agreement.

A slowdown in EV demand has led Stellantis to revise its production plans.

 

US retailers want EV mandates to be relaxed

More than 5,000 US retailers have signed an open letter urging officials to relax EV mandates and emissions regulations. Electric cars are piling up on their lots, they say, and regulations are “out of touch with the state of EV technology, charging infrastructure, and most of all, the American consumer”.

https://tinyurl.com/426uc43u

 

 

STOCKWATCH

Closing prices on 4 October 2024 and weekly change

Auto Trader Group 846.4p (-27.2p / -3.1%)

Caffyns 450.0p (n/c)

Halfords 149.2p (-4.2p / -2.8%)

Motorpoint 150.5p (+8.5p / +5.8%)

Pinewood 320.5p (-29.5p / -8.7%)

Vertu 59.0p (-1.2p / -2.0%)

 

 

COMING UP

Tuesday at 10.30am, Auto Retail Live New Entrants 2024 webinar: sign up here

Tuesday, UK retail sales

Friday, GDP

 

 

MONEY MATTERS

New rights for workers announced this week

The new Employment Rights Bill will be a “once-in-a-generation” overhaul of workers’ rights when it is published on Thursday. More than seven million people will gain rights to claim sick pay, maternity pay and protection against unfair dismissal from their first day in the job. However, following talks with business leaders, ministers have offered concessions on some reforms, including abandoning a statutory “right to switch off”.

https://tinyurl.com/4mscktmd 

BoE chief economist comments at odds with governor

After Bank of England governor Andrew Bailey last week suggested it may need to be more aggressive in reducing interest rates, its chief economist Huw Pill has warned interest rates must fall gradually and stay higher over the long run to treat stubborn inflation. The fact Pill’s comments are at odds with Bailey’s suggests growing disagreement among the central bank’s ratesetters.

https://tinyurl.com/2ej8pbjr

 

ISSN 3049-5725