Auto Retail Agenda: 8 January 2024
07 January 2024
- INCHCAPE SETS UP SPECIALIST TEAM AFTER FLOOD
- USED CAR MARKET HEALTH ‘ROBUST’ DESPITE FALL IN VALUES
- FORRESTER, PONTIN AND VEICHMANIS TO JOIN AUTO RETAIL LIVE
- ANDREW PILKINGTON JOINS VINFAST UK
- VINFAST OPENS FIRST US RETAILER
- HOLMAN TO ACQUIRE LEITH AUTOMOTIVE
- STOCKWATCH
- COMING UP: UK GDP
- NEW NIC RULES MEAN MORE MONEY IN POCKET
- CEO PAY DOES NOT NEED MORE REGULATION
Inchcape sets up specialist team after flood
Inchcape has set up a specialist team to help customers and staff following flooding at its Derby JLR retailer during last October’s Storm Babet.
The retailer said supportive actions to help customers include a dedicated helpline to help with customer queries and insurance claims, plus courtesy cars and even sourcing new and used cars at a reduced price.
‘We are making every effort to help our affected customers get back on the road as quickly as possible… due to the complexity of each individual situation, we are supporting all of them on a one-to-one basis.”
93% have accepted the retailer’s support “and we are liaising with the remaining customers to find a solution to get them back on the road.
JLR UK MD Patrick McGillycuddy confirmed that “our partner Inchcape has appointed a specialist team and we urge clients affected by this disruption to contact Sedgwick International UK”. Sedgwick is a specialist claims administrator.
“I would like to thank our clients for their patience whilst we and our partner, Inchcape, work to resolve this situation.”
Customers with cars written off after being caught in flooding have nevertheless been critical. Some have also criticised a lack of communication from Inchcape, reported BBC News, and others claim they will be left thousands of pounds out of pocket after being told they must claim on their own car insurance.
The Derby retailer remains closed.
Used car market health ‘robust’ despite fall in values
The used car market has entered 2024 on a firm footing, according to Auto Trader, with consumer demand, speed of sale and transactions all in a “robust position”. This is despite the latest Retail Price Index revealing a 5.6% year-on-year contraction in values to £17,064, “suggesting recent trends in trade prices are now flowing through into the retail market”.
Consumer demand grew 11.7% in December, the strongest pace of growth since July 2023. Crucially, with the rate of supply softening to just 1% year-on-year, Auto Trader Market Health also increased to the highest level since July. Proxy data indicated a 4% increase in used car sales, too.
With more than 8,100 retailers pricing almost 52,000 cars on Auto Trader below their market value, director of data and insights Richard Walker urged retailers follow the data. “Worryingly, it appears some pricing strategies are being guided by wholesale trends, placing unnecessary pressure on retail values and risking profits in the process.
“Rather than a cause for concern, the retail and wholesale markets being out of sync presents a profit opportunity for retailers… more than ever, it’s crucial retailers adopt a forensic-like approach to their pricing strategies this year.”
Forrester, Pontin and Veichmanis to join Auto Retail Live
Auto Retail Live will look at the used car landscape in 2024 and agency’s impact on part exchanges in the first webinar of 2024 on Tuesday 30 January.
Headline guests Robert Forrester, CEO of Vertu, Rupert Pontin from One Auto API and Carwow CEO John Veichmanis will all be available online to discuss these topics, answer your questions and help you succeed in 2024.
The webinar is free and starts at 2pm on 30 January. Sign up here: http://tinyurl.com/49sn3f67
Andrew Pilkington joins VinFast UK
Former Genesis UK MD Andrew Pilkington has started a new role as deputy CEO for sales and marketing at new entrant VinFast UK. “As a new start-up, disruptor EV brand, we are building an experienced professional team and committed retailer network to join us on our epic journey,” he said – urging anyone keen to know more to get in touch.
WORLD NEWS
VinFast opens first US retailer
Leith Automotive has opened VinFast’s first US retailer in Cary, North Carolina. It is part of the Vietnamese new entrant’s plan to add third-party retailers alongside its company-owned stores in California. The Leith store is around 20 miles away from VinFast’s future assembly plant in North Carolina, due to start production in 2025.
Holman to acquire Leith Automotive
Holman, one of the largest private retail groups in the US, is to acquire Leith Automotive Group. With more than 25 franchised retailers in North Carolina, the Leith acquisition would double Holman’s new vehicle retailer count.
STOCKWATCH
Closing prices on 5 January 2024 and weekly change
Auto Trader Group 691.8p (-29.6p / -4.1%)
Caffyns 500.0p (-50.0p / -9.5%)
Halfords 184.4p (-14.9p / -7.7%)
Inchcape 711.0p (-4.5p / -0.6%)
Motorpoint 102.0p (-12.5p / -11.5%)
Pendragon 32.95p (+0.65p / +1.9%)
Vertu 70.8p (-0.2p / -0.2%)
COMING UP
Tuesday, BRC sales monitor
Thursday, RICS housing market survey
Friday, UK GDP
30 January, Auto Retail Live used car landscape
MONEY MATTERS
New NIC rules mean more money in pocket
The 2% cut in national insurance contributions, which comes into force today (Monday 8 January) will save someone earning the UK’s average salary of £34,986 around £450 a year – or £8.61 a week – thanks to the cut in Class 1 rates from 12% to 10%.
CEO pay does not need more regulation
The Institute of Economic Affairs has warned cracking down on CEO pay would “undermine British competitiveness and burden all of us with higher tax bills without benefitting workers”. It spoke out as new emerged the average FTSE 100 CEO has already earned more than the average salary in 2025.
“A CEO can make, or break, a company and therefore it’s unsurprising they are paid generously.”
Tags:
Auto Trader, Carwow, CEO, GDP, Holman, Inchcape, JLR, John Veichmanis, Leith Automotive, One Auto API, Robert Forrester, Vertu, Vinfast 
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