Auto Retail Agenda: 8 July 2024
07 July 2024
- GRAVELLS SEES PROFIT ALMOST DOUBLE IN 2023
- DIESEL RVs SET TO RISE
- FORMER VERTU NON-EXEC KEN LEVER JOINS MARSTON’S
- MOTORPOINT U-TURN IN CUSTOMER ROW AFTER MEDIA EXPOSURE
- MG AND NIO THREATEN PRICE INCREASES AFTER EU EV TARIFFS
- RETAILERS SUE CDK OVER DMS OUTAGE
- STOCKWATCH
- COMING UP: Goodwood Festival of Speed
- WHAT THE NEW LABOUR GOVERNMENT MEANS FOR TAXES
- BUSINESS IN LABOUR MINIMUM WAGE WORRY
Gravells sees profit almost double in 2023
Gravells Limited saw profit before tax in the year ended December 2023 grow from £2.4m to £4.6m – a return of 3.6%, up from 2.3%. Turnover was also up, from £107m to £130m.
The Wales and Hereford retailer said growth has been helped by new value-added products and services, investment in its underlying systems and maintaining a high level of service to its customer base.
Diesel RVs set to rise
Remarketing firm Autorola predicts used diesel values are set to rise on the back of falling new diesel car sales. Used demand and prices were “very strong” in Q2 and it forecasts the market will eventually reach a tipping point where used diesels rise in price due to restricted supply.
Former Vertu non-exec Ken Lever joins Marston’s
Ken Lever, who recently retired from the board at Vertu, today becomes the new chairman at pub group Marston’s.
Motorpoint U-turn in customer row after media exposure
A Motorpoint U-turn has seen a customer successfully reject a £24k Audi A5 Coupe after the supermarket was contacted by Derbyshire Live last week. The customer rejected the car after a series of problems, claiming rights under the Consumer Rights Act 2015 – but Motorpoint refused his rejection. The customer contacted Citizens Advice, a lawyer, and the online news publication.
Motorpoint said the customer was made aware of one key fault before taking delivery, but “after further intermittent issues were raised… the best approach was to honour his return request and issue a full refund”.
WORLD NEWS
MG and Nio threaten price increases after EU EV tariffs
Nio and MG have indicated they may raise prices of European EVs once current stocks have sold out. The EU has imposed new tariffs of up to 37.6% on Chinese-built EVs, on top of today’s 10% tariff.
The provisional duties will be updated by definitive duties in November, when the EU’s anti-subsidy investigation is complete. These typically apply for five years.
Retailers sue CDK over DMS outage
A group of southeastern US retailers have joined consumers in a general lawsuit against CDK Global, alleging ‘negligence in protecting users of its systems’. They seek class-action status.
STOCKWATCH
Closing prices on 5 July 2024 and weekly change
Auto Trader Group 810.8p (+9.6p / +1.1%)
Caffyns 460.0p (n/c)
Halfords 152.0p (+11.6p / +7.9%)
Inchcape 800.0p (+56.0p / +7.2%)
Motorpoint 138.0p (-3.0p / -2.1%)
Pinewood 340.5p (-15.5p / -4.4%)
Vertu 73.0p (+1.1p / +1.5%)
COMING UP
Tuesday, BRC sales monitor
Wednesday, England v Netherlands in Euro 2024 semi-final (8pm)
Thursday-Sunday, Goodwood Festival of Speed
MONEY MATTERS
What the new Labour government means for taxes
Labour will not change corporation tax and keep income tax thresholds frozen until 2028, says BDO, which has analysed the labour manifesto. It will impose inheritance tax on all assets in offshore trusts though, and impose VAT on private school fees.
Labour plans to the ban on the sale of ICE cars by 2030 too, along with measures to encourage EV use.
Labour minimum wage worry
In its manifesto, Labour also pledged to “remove the discriminatory age bands so all adults are entitled to the same minimum wage” of £11.40, rather than going up in bands with 16-year-olds starting on £6.40 and 18 to 20-year-olds getting £8.60. Some businesses are now worried this means putting 16-year-olds on the same minimum salary as 21-year-olds with five years’ experience.
Labour has said it will “introduce legislation within 100 days” to deliver a “new deal for working people”.
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