07 July 2019

• SKODA RETAILER BUYS HOLDCROFT SITE
• SANDICLIFFE RAISES PROFIT AND TURNOVER
• RETAILERS IN TOP PRIVATE BUSINESSES
• RADICAL PLANS RETAIL PARTNER
• FORD AND VW EDGE CLOSER TO EV SHARE DEAL
• LENDERS NERVOUS OF USED LEASING
• STOCKWATCH – Lookers continues to fall, Marshall down again
• LAUNCH DIARY – Kia Soul EV, BMW M6, Volvo XC40
• COMING UP – Auto Retail Live Profit Briefing – Maximising aftersales profits, FLA Consumer Law for Motor Finance Providers, RICS data
• MONEY MATTERS – AI-powered pop-up store opens, customer experience getting better
• OUR BLOG – What happens when you don’t return a call?

Skoda retailer buys Holdcroft site

Robert Eardley Skoda is on course for a mid-August opening in a former Holdcroft Honda dealership it has bought on an approach road to Crewe.

Part of the Barlow Motors Group, which made a pre-tax profit of £632,000 on turnover of £46 million last year from its Seat and Skoda franchises, the deal means it can move from its cramped former town centre site to a modern facility without having to develop a new site.

Mark Owen, director, said: “This is the best site in Crewe. The brands we represent are up and coming and we have some great EV products and this high profile, high visibility showroom right at the gateway to Crewe is a fitting centre for Skoda.”

Sandicliffe raises profit and turnover

East Midlands-based Sandicliffe group reported pre-tax profit of £1.4 million last year against £1m in 2017 on turnover that was also up at £329m from £302m.

The late 2017 opening of the Nottingham FordStore increased turnover by 9% and with strong new car sales performances from its Ford, Kia, Mazda and Nissan franchises it saw a gross margin of 10%.

In January it sold two Skoda sites to the Marshall Group which together accounted for £19.3m of last year’s turnover but said “the sale will have no material impact on the company’s future profitability”.

Retailers in top private businesses

Nearly 10% of the businesses listed in The Sunday Times Top 100 privately owned companies are car retailers with Arnold Clark, JCT 600, Listers, Greenhous, Stoneacre, John Clark, Park’s Motor Group and Swansway in the table.

The biggest and eighth overall is Arnold Clark with a turnover of some £4.2 billion a year from its 200 dealerships and 150 service centres. In 99th place is Swansway with 2018 sales of almost £750 million.

Radical plans retail partner

Track day supercar specialist Radical says it wants to repeat its German retail model in the UK after launching the new Rapture two-seater roadster at this weekend’s Goodwood Festival of Speed.

One of Germany’s largest dealer chains, the Glinicke Group, was appointed as agent and established a new motorsport arm alongside their VW Group, PSA and other brands to serve the growing market for track days.

WORLD NEWS

Ford and VW edge closer to EV share deal

Ford and Volkswagen have reached an outline agreement to share electric and autonomous car technologies with the plan to discuss the deepening alliance due to be discussed at a VW supervisory

board meeting on Thursday.

A source close to the talks said VW will share its MEB electric vehicle platform with Ford.

https://reut.rs/2Jwq8PI

Lenders nervous of used leasing

US lenders are reluctant to finance used car leasing even though there is growing demand for it as new car sales slow.

Experian’s latest State of the Automotive Finance Market report shows used vehicles took 4.7% of the Q1 leasing market, up 4.1% in a year but says lenders are nervous about predicting depreciation.

https://bit.ly/2RQhCiu

STOCKWATCH

Closing prices at 5 July and weekly movement

Lookers continues to fall, Marshall down again

Auto Trader Group 552.8p (+5.0p)

BCA 245.6p (+2.6p)

Cambria 58.0p (-1.0p)

Caffyns 410.0p (n/c)

Inchcape 629.5p (13.5p)

Lookers 47.0p (-3.9p)

Marshall Motor Holdings 146.0p (-6.0p)

Motorpoint 223.0p (-2.0p)

Pendragon 15.3p (-1.0p)

Vertu 41.0p (+0.8p)

LAUNCH DIARY

Kia Soul EV. 280 mile range, in showrooms Q1 2020.  From £37,295 before PiCG.

BMW M6. Performance SUV, deliveries from November. From £59,340.

Volvo XC40. New powertrain and equipment choices. From £28,965.

COMING UP

Tuesday: Auto Retail Live Profit Briefing – Maximising aftersales profits

Wednesday: Finance & Leasing Association, Consumer Law for Motor Finance Providers. (London)

11: RICS housing market survey, price and activity.

MONEY MATTERS

AI-powered pop-up store opens

The Westfield London shopping centre has launched an AI powered fashion pop-up called The Trending Store which only stocks items trending on social media.

A spokesman said: “Online, shoppers are inspired by influencers and used to being guided by AI. Usually this guidance does not translate to a physical retail space. However, working with NextAtlas data analysts, we are able to bring our shoppers products that are trending in real time – a true reflection of social conversation brought to life in a physical space.”

Customer experience getting better

Businesses are giving their customers a better experience according to the tenth annual Customer Experience Excellence analysis, run by KPMG, which says CX has improved for the second year running. Meeting, managing, understanding their circumstances and surpassing their expectations is where customers see the most improvement.

CLICK HERE TO READ OUR BLOG – What happens when you don’t return a call?

John Swift

Tags: Arnold Clark, Barlow Motors, holdcroft, Radical, Sandicliffe, Swansway, Total