am - automotive management magazine february 2015 preview

AUTOMOTIVE MANAGEMENT

www.am-online.com February 2015 £8.00

H O N D A / P 2 5

Carmaker plans to double dealers’ profits in three years

FA C E T O FA C E / P 3 0

Meridian Motor Group MD on why it won’t grow too big too fast

C O S T C O N T R O L / P4 8

How to keep your operating costs on track in 2015

AFTER THE BOOMWith new car sales predicted to plateau, are your

dealerships prepared to explore every avenue for profit?

A M AWA R D S 2 015 / P 2 0

This year’s shortlist for the Oscars of auto retail

The editorial teamEmail: [email protected] Website: www.am-online.comTwitter: @amchatter LinkedIn: am-online.com/linkedin

Why profitability, not growth, is key in 2015

Jeremy BennettEditor

Tim RoseManaging editor

Danielle Bagnall Senior reporter

WELCOME

[email protected] am-online.com/linkedinam-online.com @amchatter facebook.com/automotivemanagementUK

ill franchised dealers enjoy a repeat this year of the sales successes seen in 2014? Last year’s UK new car market has been hailed as the fourth-strongest on record – no matter whether genuine sales or pre-registrations – and the SMMT forecasts a little more growth to come yet.

However, the glamour of success in car sales does not automatically translate to the same in dealer KPIs – our new-look Market Intelligence section on page 15 shows there’s still a long way to go for many in motor retail. One business that accepts this fact is Meridian Motor Group. It has expanded rapidly within 18 months, but in our face to face interview on page 30 its managing director, Mark Robinson, sets out his ambitions to improve what he has rather than expand further.Another company facing quite a climb is Honda UK. After years of

problematic trading, its retail network’s returns are well behind the curve. The Japanese brand’s UK head of cars, Leon Brannan, maps out on page 25 how this will change in the medium term.It should be welcome news for dealers. The impression gained from our

poll (page 38) is that they believe new car profits will come under pressure in 2015. It is no coincidence that we look at new car options earnings on page 41, and we’re pleased to share advice gathered from experts on controlling costs in our feature on p48.Great performance is possible. With the 2015 AM Awards less than a

month away, we reveal the shortlisted finalists on page 20.

O U R E X P E R T C O N T R I B U T O R S

W

AM Awards 2015book your tickets today atam-awards.co.uk

February 19 2015

Prof Jim SakerAs director of the Centre of

Automotive Manage-ment at Loughborough University’s Business School, Saker is a key figure behind the drive for management recognition and skills in the motor retail sector.

This month (p36), he says dealers need a plan for PCP returns, handling potentially disaffected customers and falling used car prices.

Rupert Pontinis head of valuations at Glass’s.

With more than 29 years’ experience in the motor trade, he has worked for companies such as BCA and Car Shop, as well as running his own successful independent used car business.

In this issue (p28), he looks at how the general election and post-PCP residual values will dictate the strength of the 2015 used car market.

am-online.com February 2015 5

28 Forecasting the used car market for 2015

Glass’s Rupert Pontin on how the General Election, austerity measures and interest rate rises will affect used car sales in 2015.

Insight

30 Why Vantage aims to be the best, not the biggest

Managing director Mark Robinson explains Meridian Motor Group’s rapid recent growth and how he and his staff will unite the business under the Vantage brand .

36 View from the business school

Dealers need to plan for PCP returns and falling used car prices, writes Prof Jim Saker.

38 AM Poll Almost three-quarters of franchised

dealers believe that new car profits will decrease in 2015.

Your news

9 News digest This month’s round-up includes

Volvo’s plan to assign a personal technician to every new car buyer; Audi opens a ‘pop-up’ store; Peter Jones joins the Vertu board; and the launch of a new, independent garage co-operative network.

Market intelligence

15 New car registrationsOur new-look section analyses the emerging trends in new car registrations. This month, we identify the ‘Magnificent Seven’ brands that account for almost two thirds of all registration growth in the 2014 UK new car market.

17 Dealer profitability The average dealer posted a loss

of just under £10,000 in November, more than £5,000 worse than the loss a year earlier.

6 February 2015 am-online.com

30FACE TO FACEMERIDIAN MOTOR GROUP

MD MARK ROBINSON

19 Used carsSurplus ex-fleet stock led to a drop in used car values in December.

AM Awards 2015

20 AM Awards shortlist All the nominees from motor retail’s

most prestigious awards ceremony.

Analysis

25 How Honda plans to double its dealers’ profits

Honda’s three-year strategy, five-year warranties and six product launches in 2015 are part of the Japanese manufacturer’s plans to reverse its UK sales slump.

In this issue February 2015

COST MANAGEMENTKEEP YOUR SPENDING ON TRACK IN 2015

48

For the latest motor retail industry news, visit am-online.comSign up to get AM news daily by email: am-online.com/newsletter

20AM AWARDS 2015THIS YEAR’S SHORTLIST


APC .......................................................................48

Aprite ...................................................................11

ASE .......................................................................17

Audi .........................................................................9

Bauer Millett ........................................................9

BCA .......................................................................19

BCF Wessex ......................................................49

CAP .......................................................................42

FLA .......................................................................15

Glass’s ..................................................................28

Grant Thornton .................................................50

Honda ............................................................11, 25

Hyundai ...............................................................41

Infiniti ......................................................................9

JCT600 .................................................................11

John Banks Motor Group..............................12

John Clark Motor Group .................................9

JP Arthur & Sons ............................................11

Lookers ...............................................................11

Manheim .............................................................19

Mazda ...................................................................11

Meridian Motor Group....................................30

Michael Edwards .............................................42

Mitsubishi ...........................................................12

Motorpoint ............................................................9

Movex ...................................................................49

Nissan ..................................................................11

Perrys Motor Sales .........................................11

Rapleys ................................................................48

Škoda .....................................................................9

SMMT ...................................................................15

Stoneacre .............................................................9

Sturgess Group ................................................41

Suzuki ..................................................................42

Swansway ...................................................12, 42

TC Harrison .......................................................11

TrustFord ............................................................11

Unity Automotive ..............................................12

Vauxhall ...............................................................42

Vertu Motors .....................................................11

Volvo .......................................................................9

D E A L E R S A N D S U P P L I E R S I N T H I S I S S U E :

HYUNDAI TAKES ON THE BIG BOYS WITH THE i20

54

41 Is this the end of the optional extra upsell?

Manufacturers are split on whether factory add-ons are the best way for dealers to boost profit.

48 How to keep your costs under control in 2015From property and tax to vehicle transport and marketing, what are the ways to cut costs in 2015?

Showroom

54 Hyundai i20Hyundai is aiming to chip away at the Ford Fiesta’s dominance with a design-focused supermini.

56 Audi A1 The UK is the world’s biggest market for Audi’s smallest hatch, which has become more efficient after mid-life revisions.

58 Mazda3We look at how the Skyactiv range

of new engines has helped to transform Mazda’s fortunes in the UK.

61 Seat IbizaSelling the virtues of this Ibiza’s clever active cylinder technology engine should come with caution. We’ve found its alter ego.

62 Volkswagen GolfThe Golf has proven itself as the greatest all-rounder family car in the market. But does that come at the expense of thrills?

Coming soon

66 In March’s issue – published February 27

All the winners from the 2015 AM Awards; Face to face with Glyn Hopkin managing director Fraser Cohen; how much does carmakers’ marketing matter; and first drives of the Ford Mondeo and Volkswagen Passat.


F O R D A I LY N E W S , V I S I T: w w w . a m - o n l i n e . c o m

T O g E T A M ’ S F R E E D A I LY N E W S L E T T E R , V I S I T: w w w . a m - o n l i n e . c o m / n e w s l e t t e r

F O L L O W A M O N T W I T T E R : @ a m c h a t t e r

NEWS DIGEST11 Dealer profitability

The average dealer lost just under £10,000 in November. KPIs now appear in our new Market Intelligence section: p17

VertuPeter Jones has joined the board of Vertu Motors as non-executive chairman.

17

T H E N E W S Y O U C A N ’ T A F F O R D T O H A V E M I S S E D

V O LV O

Volvo to assign a personal technician to every buyer

S T O N E A C R EStoneacre Motor group has acquired Staffordshire-based dealer Randles Motor group, gaining two Peugeot sites and a Suzuki dealership.

Randles’ latest submitted turnover (2013) was £30.6 million and it sold about 4,000 new and used cars in 2013 from its sites in Stafford and Stoke. This deal will boost revenue at Stoneacre, which had a turnover of £395.1m in 2013.

Already one of the biggest Suzuki dealers in Europe, Stoneacre will operate eight of the Japanese manufacturer’s 143 sites in the UK after the acquisition of Randles’ Stoke dealership.

Meanwhile, Stoneacre’s Peugeot sites will grow by two, with Randles’ Stafford and Stoke showrooms joining Stoneacre’s existing three. The deal also includes a used car/Great Wall franchised site in Stafford. Each of the sites will be rebranded in 2015.

Volvo Cars UK is to trial assigning every buyer a personal technician to assist them throughout their ownership.

Designed to improve customer service, the process will be rolled out across Volvo’s dealer network this year.

As part of the manufacturer’s Volvo Retail Experience (VRE) plans to improve the overall buying experience, two

technicians will work on each vehicle to improve delivery speed.

Volvo has also confirmed it will roll out sales of its full model range online, following the success of its XC90 trial last year. Industry analysts at IHS Automotive questioned the lack of tangibility in selling through internet channels, saying that many customers would be unlikely to want to buy a vehicle without seeing it in the flesh first.

Š K O D AThe Škoda Fabia has won the title of Car of the Year 2015 at this year’s What Car? Awards.

The Škoda Fabia 1.2-litre TSI 89bhp SE model beat tough competition from 25 other vehicles that made the shortlist.

The Czech model also won the Small Car category, for both space and practicality.

A U D IAudi has opened its first ‘pop-up’ store at London’s Westfield Stratford City shopping centre.

The store, open until February 8, will show-case the A3 Sportback E-tron plug-in hybrid electric car to shoppers as it also enters Audi showrooms nationally.

Visitors to the pop-up shop can experience aspects of car and can go on a virtual test drive using Oculus Rift headsets.

M O T O R P O I N TMotorpoint has opened its eighth branch in Widnes, Cheshire. The car supermarket group spent more than £1 million refurbishing the six-acre former Motor Nation car dealership, situated next to the A557, into its latest site.

I N F I N I T IInfiniti has opened sites at Westfield London and Westfield Stratford City, designed to be semi-permanent structures with cars on display and a range of cars standing by for test drives.

Infiniti vice-president for Europe, Middle East and Africa, François goupil de Bouillé, said: “The opening of the Infiniti stores provides us with a further great opportunity to get close to our customers.”

I N B R I E F

J O H N C L A R K M O T O R g R O U P John Clark Motor group is to invest £9 million in a flagship Audi dealership in Aberdeen.

It will be the first of the brand’s ‘terminal’-style outlets in Scotland, and at 59,860sq ft, the site will be almost double the size of the current Aberdeen Audi centre, becoming the group’s largest standalone dealership.

The showroom will accommodate up to 20 cars and the service workshop will have capacity for up to 36 cars and access via a fully-enclosed drive-through service reception, another first for Scotland.

A second used car showroom and sales area will also be built. Completion of the new dealership is expected towards the end of 2015.

B A U E R M I L L E T TManchester car dealer Bauer Millett has ceased trading, with the loss of about 20 jobs.

The company, which traded in a showroom housed within listed viaduct arches in the centre of the city, was the UK’s only remaining Cadillac dealership after a failed attempt by General Motors to launch the US car brand in the UK last decade.

Bauer Millett also held franchises for Chrysler Jeep, Alfa Romeo and Abarth.

NEWS DIGEST

H O N D AHonda UK says it is gearing up its dealers for growth after seven years of stagnation and decline.

The Japanese brand has six car launches planned for 2015, including a HR-V B-segment crossover in the summer and the NSX supercar .

The product offensive means the end of a very difficult period for Honda dealers, who have seen the brand’s market share halve from its 2007 peak of 4.4%.

In the 2014 summer NFDA Dealer Attitude Survey, Honda was ranked bottom for franchise value.

Phil Crossman, managing director of Honda UK, (pictured)said: “We’ve had a bleak few years. It’s been tough. There’s a great affection in the network for Honda, but there’s a frustration about our local product line-up, and that will be addressed now.”■ How Honda plans to double its dealer network’s profits: Analysis, p25


T O R E A D A M ’ S D A I LY N E W S L E T T E R , V I S I T: w w w . a m - o n l i n e . c o m / n e w s l e t t e r

L O O K E R S Lookers has opened its new £4 million Ford superstore in Chelmsford, Essex.

Designed in line with Ford’s global brand strategy, the site on Argyll Road has created 85 jobs and is the first of three nationwide Ford superstores the group has planned for 2015. Two more are scheduled to open, in Sheffield and Colchester, before the end of this year.

Lookers has also announced plans to create a new, purpose-built Ford Transit Centre at its site on Robjohns Road, Chelmsford, in 2015, which will focus on showcasing the new Ford Commercial Vehicle range.

W E S T W AY N I S S A NThe largest Nissan dealer group in the UK, West Way Nissan, has expanded its reach in the North West of England by opening a new site in Altrincham, acquired from Vertu Motors.

The new premises, formerly operated under the Bristol Street name on Manchester Road, means that West Way will have five sites in the North West of England. West Way Nissan is the trading brand of Aprite, the Nissan-owned AM100 retail group.

M A Z D AMazda’s 127 dealer partners are to face their busiest year in 2015 and need to make sure that they are fully prepared to take advantage, according to Mazda UK managing director Jeremy Thomson.

Dealer profitability improved throughout 2014, said Thomson, adding “those who get it right in 2015 will be even better rewarded”.

“We said we would deliver 20% sales growth in 2014 and we have. For 2015, we’re going to see sales grow by another 10%, taking us to around 45,000 sales and a market share of 1.8% in what is predicted to be a relatively flat market.”

With three new models (Mazda2, CX-3 crossover SUV and MX-5) and two major upgrades (Mazda6 and the CX-5) launched in a little over six months, dealers can expect to be busier than ever and need to make sure they have the resources they need, he said.

J P A R T H U R & S O N SArthurs Vauxhall has bought the Dickens Peugeot dealership in Wrexham.

The new dealership will trade as Arthurs of Wrexham and extends the company’s geographical coverage and franchise base from its existing Vauxhall dealerships in Oswestry and Newtown.

Nigel Williams, Arthurs’ managing director, said: “ We are confident this will be a good fit with our existing business. ”

P E O P L E N E W S

P E T E R J O N E SPeter Jones has joined the board of Vertu Motors as non-executive chairman, following

the retirement of Paul Williams. Williams had served for seven years as Vertu’s chairman, prior to which he headed Bristol Street Motors, which Vertu acquired.

D A R R E N A R D R O NPerrys Motor Sales has announced the appointment of Darren Ardron as managing director. He replaces Ray Sommerville, who has chosen to retire on June 30.

Ardron has held numerous senior positions within the group since 1988, including general manager and regional director.

S T E V E H O O DTrustFord has appointed Steve Hood as chairman and chief executive. He succeeds Stuart

Kerr, who has left the business to “pursue opportunities outside the group”. Hood was appointed chief operating officer in November and was previously the strategy director at the dealer group.

T O N Y L E W I SNissan has appointed Tony Lewis as its UK sales director.

Lewis, currently brand director at

Jardine Motors Group, begins his new role on February 4. He has held a number of previous roles within the Nissan Motor Group, including UK corporate sales director and Infiniti regional director of Northern Europe.

K AT I E S A U N D E R SJCT600 has appointed Katie Saunders as its new HR director.Saunders was

formerly head of talent and leadership development for the group.

T C H A R R I S O NTC Harrison has acquired Rylatt Ford in Spalding, Lincolnshire, bringing the group’s total Ford dealerships to seven.

Rylatt, which continues to operate a Citroën dealership in Spalding, had re-established the Ford brand in the local area over the past five years.

The acquisition builds on TC Harrison’s presence in the East of England, where it already has dealerships in Huntington, Peterborough, St Neots and Stamford. It also operates dealerships covering Derbyshire and Staffordshire.

With an annual group turnover of more than £240 million, TC Harrison employs about 360 people in its Ford division and a further 200 working at its JCB depots and leasing division in Yorkshire.

NEWS DIGEST R E A D AM I N Y O U R I N B O x : a m - o n l i n e . c o m / n e w s l e t t e r


S W A N S W AYStafford Land Rover has opened a state-of-the-art £6 million dealership, following investment from the Swansway group.

The dealership, one of the UK’s first Land Rover concept showrooms, is situated just off junction 14 of the M6. It is the biggest ever investment made by the group.

Dealer principal at the site, Darren Poole, said: “The new site is truly state of the art and is set to deliver a customer experience like never before with total brand consistency alongside exceptional customer service and cutting-edge technology.”

M I T S U B I S H I M O T O R S Mitsubishi has introduced a five-year warranty across all of its models.

From January 1, all cars and commercial vehicles will come with the new warranty package as standard.

Lance Bradley, Mitsubishi’s UK managing director, said: “The move to a five-year warranty is a reflection of Mitsubishi’s confidence in the unrivalled quality and reliability of our product.”

U N I T Y A U T O M O T I V EUnity Automotive has taken on its first Alfa Romeo franchise with the acquisition of the Motor Village site in Kidlington, Oxfordshire.

It brings the total number of sites operated by Unity to five, alongside Coventry, Peterborough, Tredington and Leicester. Unity’s franchise portfolio now includes Subaru, Mitsubishi, SsangYong, Chrysler, Jeep, Great Wall, Isuzu and Alfa Romeo. The deal was completed on Christmas Eve. The workforce now numbers more than 100.

I N D E P E N D E N T g A R A g E C O O P E R AT I V E A new, independent garage co-operative network has been launched, promising “a unique approach to vehicle maintenance for fleet and retail customers”.

The national network, called the Independent Garage Cooperative (IGC), unites more than 120 independent garages, but 80 more are expected by summer.

The co-ownership approach, which has been endorsed by the Institute of the Motor Industry (IMI), is being led by IGC chief executive Steve Wadlow, operations director Dave Poole, and national network manager Phil Todd

J O H N B A N K SJohn Banks has announced that it is the new partner in Cambridge for Renault and Dacia.

The acquisition from Richard West of ‘Wests’ will see the Swann Road dealership knocked down to make way for a new state-of-the-art show-room.

It will temporarily trade from the sales facility at 217 Newmarket Road for 12 weeks while the build is completed. The site at Newmarket Road is planned for demolition in the near future. Existing staff will remain at the sites.

The group already manages Honda and Suzuki franchises.

The combination of new budgets and people reflecting on their careers over the Christmas period makes January one of the biggest months for recruit-ment in the motor trade.

In an increasingly competitive and changing environment, I don’t believe that there are many who would argue about the need to recruit the right people. But where do you find the best solution?

Local press has had its day and recruitment agents can be effective, but also expensive.

What about online jobs boards, when there are so many to choose from and costs can mount up? Also, if you advertise on more than one, how do you keep track of applicants?

That’s why the NFDA and Trusted Dealers have teamed up with online recruitment specialists CVWOW to create an unrivalled online jobs board package that brings together most of the big names in online recruitment at a fraction of the cost of buying them individually.

From as little as £149, jobs can be advertised on Trusted Dealers, Monster, Total Jobs and at a significant discount to CVWOW’s rate card, and our connect package also includes Jobsite, Reed, Motoring Jobs and many other motoring specific websites.

In addition, the class-leading applicant tracking system (ATS) enables you to manage all these applica-tions in one place and will even send out rejection emails on your behalf (any applicant could also be a customer).

If you’re interested in building your team for a prosperous New Year, drop us a line at [email protected] or call 01423 506 272.

By Neil Addley, MD of Trusted Dealers, the advertising website owned by dealers and the NFDA

PUTTinG The RiGhT TeAMToGeTheR

For more information, call 01423 506272 or email [email protected]

A M P R O M O T I O N

“Local press has had its day and recruitment agents can be effective, but also expensive”

MARKET INTELLIGENCE T H E N E W S I N D E P T H

16Sector analysis

Just seven brands were responsible for more than half of registration growth in 2014’s UK new car market.

17Dealer profitability

The average dealer posted a loss of just under £10,000 in November, more than £5,000 worse than the loss a year earlier.

Sponsored by

Welcome to AM’s new-look market intelligence sectionMonth to month, we analyse the latest data to track new and used car retail trends

R E G I S T R AT I O N S B Y M A R K E T S E G M E N T

U K N E W C A R R E G I S T R AT I O N S ( R O L L I N G Y E A R T O TA L ) – 2 0 0 8 - 2 0 1 4 W I T H 2 0 1 5 F O R E C A S T

The new car market in 2014, at 2,476,435 units, was the most successful for 10 years and the fourth largest result since the SMMT’s records began. Only 2002, 2003 and 2004 saw more cars registered.

The 2014 market grew 9.3% over 2013. Every month in 2014 saw an increase, with December’s 8.7% rise the 34th consecutive month of growth.

The SMMT’s forecast for 2015 is a 2.49m market, a 1-2% rise on 2014.

Tim Smith, head of motor finance, North & major groups, at Black Horse, said: “The sharp drop in oil prices since June last year has played a positive role in the manufacturing and production of affordable new cars alongside a low interest rate environment for consumers .”

The UK remains the second largest EU market (behind Germany and ahead of France, Italy and Spain), and recorded the second-largest growth of these top five EU markets.

F I N A N C E S TAT SShowroom loans provided by Finance & Leasing Association members for new retail cars grew 7% in November year-on-year. The market in the year to November rose 13%, with dealer finance maintaining a 75.9% market share.

Geraldine Kilkelly, head of research and chief economist at the FLA, said personal contract purchase (PCP) was now a popular choice for many consumers, but added: “Many customers still want to own their car outright and we have also seen growth in hire purchase over the last year.”

Samantha Cripps, head of sales development at Alphera UK, says the growth in PCPs means this year could be “a game changer” for dealers and finance providers, partly because of new FCA regulations. She expects new car registrations to peak in 2015.

New cars bought on finance by businesses through dealerships Nov-14 Change on 3 months to Change on 12 months to Change on previous year Nov 2014 previous year Nov 2014 previous yearValue of advances (£m) 965 10% 4,437 15% 13,963 18%Number of cars 59,983 7% 273,986 11% 892,737 13%New cars bought on finance by businesses through dealerships Number of cars 33,091 0% 122,741 18% 455,489 14%

N O V E M B E R M O T O R F I N A N C E M A R K E T: N E W C A R S


19Used cars

A drop in values in December suggested dealers had required less stock than the fleet sector was willing to push to market.

Private 1,179,499

Private 1,074,622

Fleet 1,178,416

Fleet 1,084,279

Business 118,520

Business 105,8362013

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

2014

MARKET INTELLIGENCE


Seven brands were responsible for more than half of registration growth in 2014’s UK new car market, which finished 211,698 cars higher than in 2013.

The crown for the biggest volume driver was narrowly won by Volkswagen, with 20,743 more cars registered than in 2013. The largest contributors to this were the Polo and Golf, although the Tiguan and outgoing Passat also played a part, particularly in fleet and business markets .

Nissan was close on Volkswagen’s tail, with 20,161 more registrations, half of which were accounted for by the Sunderland-built new Note compact MPV, which pushed hard into the fleet sector. The new X-Trail, Micra and electric-powered Leaf also fuelled its growth in the private market. James Wright, Nissan Motor GB managing director, said: “Key to Nissan’s success in 2014 is the onslaught of new and updated products launched in the last year and I am immensely proud of the hard work and dedication displayed by the Nissan team in the UK.”

The final podium place was taken by Renault, which increased its year-on-year registrations by 20,161. The French brand achieved three times as many Captur compact SUV registrations last year than in 2013, when it was introduced mid-year.

THE M AGNIFICENT SE V EN

Others 42%

BMW 6%

Volkswagen 10%

Nissan 10%

Renault 10%

Audi 8%

Ford 7%

Mercedes-Benz 7%

Volkswagen led the new car volume growth in 2014 and its 2015 Q1 new car finance offers suggest it has no intention of applying the brakes. Appealing to first-time new car buyers, it is applying a £1,000 deposit contribution to the Polo supermini, which allows buyers to get the keys to a new car for £1,283 of their own money and £129 per month thereafter. For those with a small family, Volkswagen is making the Golf SV 1.2TSI accessible for £4,118 deposit (plus a £750 manufacturer contribution) and £235 per month.

The full list of manufacturers’ finance offers can be found at www.am-online.com/offers

Model Finance Deposit Term Monthly Final APR Offer type payment payment ends AudiA1 Sportback 1.4 TFSI PCP * £3,193.24 36 months £219 £8,688.47 7.4% 31/03/15A3 saloon 1.4 TFSI PCP * £3,540.00 36 months £309 £12,984.60 7.4% 31/03/15Q3 2.0 TDI quattro PCP * £6,470.75 37 months £349 £19,496.76 7.2% 31/03/15Annual mileage cap 10,000. Excess per mile: * 7.2p Ford Ka Zetec 1.2 3dr Personal lease * £810 36 months £135 n/a n/a 31/03/15Focus Titanium 1.0 Ecoboost Personal lease ** £4,122 36 months £229 n/a n/a 31/03/15Kuga Titanium 2.0 TDCI fwd Personal lease *** £5,478 36 months £249 n/a n/a 31/03/15Galaxy Zetec 2.0 TDCI Personal lease **** £7,656 36 months £319 n/a n/a 31/03/15Annual mileage cap 9,000. Excess per mile: * 5.71p ** 4.93p *** 8.51p **** 8.81pVauxhallCorsa 1.2 3dr Excite PCP £2,751 * 24 months £139 £6,251 2.9% 01/04/15Adam Jam 1.2 PCP £2,295 ** 24 months £99 £6,225 2.9% 01/04/15Mokka Exclusiv 1.6 PCP £4,106 *** 36 months £199 £7,150 2.9% 01/04/15Insignia Limited Edition 1.8 HP £5,549 60 months £259 n/a 0% 01/04/15Deposit contributions: * £500 ** £1,340 *** £713VolkswagenPolo 1.0 S 3dr PCP † £2,283.50 * 36 months £129 £4,826.11 7.7% 31/03/15Golf 2.0 TSI GTI 3dr PCP †† £7,126.52 ** 36 months £275 £12,288.35 7.2% 31/03/15Passat 1.6 TDI S PCP †† £5,155.61 36 months £249 £8,993.70 6.1% 31/03/15Touran S 1.2 PCP † £5,862.65 36 months £279 £6,311.84 7.4% 31/03/15Deposit contributions: * £1,000 ** £750. Annual mileage cap 10,000: excess per mile †4.4p †† 7.2p

Top finance offers for retail buyers

FIN A NCE OFFER S

WHICH UK CAR BRANDS GREW

NEW CAR REGISTRATIONS MOST IN 2014?

For a searchable list of manufacturers’ finance offers, go to www.am-online.com/offers


Sponsored by

Volkswagen PoloContributed to VW’s 20,743-unit increase in 2014 registrations

Renault CapturThree times as many registrations in 2014 than the year before.

The recurring theme for 2014 has been plenty of sales, with exceptional profits made in quarter-end months as dealers recognise bonuses. This continued in November, with the average dealer posting a loss of just under £10,000, more than £5,000 worse than the loss a year earlier. While expected, this shows the extent to which dealers are experiencing increased peaks and troughs. However, all is definitely not doom and gloom, as dealers showed turnover increasing 13% in the month.

Given sales levels in both the final quarter to date and the overall year, dealers will almost certainly have closed out the year with another record performance, beating last year’s return on sales of 1.47%.

D E A L E R K P I s

Key ratio Rolling Rolling Benchmark 12 months 12 months Nov 2014 Nov 2013Net profit as % sales 1.42% 1.38% 3.0% Overhead absorption 55.4% 56.2% 80% Used: New sales 0.86:1 0.91:1 1.5:1 Expenses as % gross 62.4% 62.8% 50% Sales per salesman 198 198 150 Used vehicle stockturn (days) 54.7 56.4 45 Return on used car investment 80.6% 79.2% 100%Overall Labour efficiency 82.2% 81.0% 100% Service gross profit % on labour 75.7% 75.7% 75%Service expenses as % gross 58.0% 57.0% 40% Hours per retail job card 1.64 1.64 2.5 Parts gross profit 22.2% 22.4% 22% Parts expenses as % growth 44.7% 44.8% 40% Parts stockturn 8.09 7.76 8.0

Nissan NOTEThe Sunderland-built compact MPV pushed hard into the fleet sector in 2014.

A D V E R T I S E M E N T P R O M O T I O N

The car sales industry entered the New Year in a position of strength, with monthly sales continuing to grow as 2014 drew to a close. Experts suggest the sector has plenty to offer in the coming 12 months, though the growth rate may slow.

The growth in sales has been supported by the growing use of vehicle finance, as consumers increasingly recog-nise the convenience of point-of-sale finance. In light of the FCA changes introduced last year, this has placed dealers, on behalf of motor finance providers, under increasing scrutiny to ensure the agreements they offer are affordable and sustainable. That is why, at Black Horse, we recently enhanced our assessment criteria to place even greater emphasis on an applicant’s ability to afford repayments both at the time of entering into the agreement and throughout the loan period, rather than basing a decision purely on a historic credit rating.

Despite evidence from the regulator that this is an area of increasing focus, not all finance providers appear to have changed their assessment approach. Some still rely heavily on credit data that recognises the applicant’s previous track record with finance, but does not assess their ability to afford regular payments over an extended term.

While we believe past behaviour offers useful informa-tion, it needs to be enhanced by additional figures not available via credit reports. We therefore feel that it is only by also assessing a customer’s regular income and outgoings, such as their rental and or mortgage expendi-ture, that a fully robust assessment can be made of their ability to afford repayments in the long term.

While it is good news across the industry that arrears levels are low, we must all maintain a focus on providing customers with agreements they can comfortably repay, even if their financial circumstances change. We cannot allow their excitement to purchase a vehicle spotted in the showroom to distract us from this responsibility.

This is why we are surprised and somewhat disap-pointed in what appears to be an inconsistent approach to this issue across the industry. Some lenders appear to be doing nothing different and continue to advance money based purely on credit bureau data and the value of their security, obtaining no specific financial information from the customer. We would urge those that have not made changes to their operating model to reconsider their approach, as by making these key changes they will earn the trust and loyalty of their customers and that can only be a good thing for the industry overall.

By Chris Sutton, managing director, Black Horse

BLACK HORSECOMMENT


10-year market trends available: www.am-online.com/amin e w c a r r e g i s t r at i o n s

r i s e r s & f a l l e r sthat renault and sister-brand Dacia feature in the top 10 rising brands of 2014 will be heartening for the dealer network after the french brand’s fairly torrid post-recession trading. together, they put 26,877 more cars on the road in 2014 than in 2013, taking a 3.6% share of the market, a gain of almost a whole percentage point at the expense of their fellow french brands, who’ve both lost market share.

BRAND YTD (%)1 MG 361.512 Maserati 274.293 SsangYong 132.934 Infiniti 93.265 Jeep 75.376 Mitsubishi 74.767 Renault 43.668 Dacia 39.179 Lexus 28.3810 Volvo 25.71

BRAND YTD (%)10 Peugeot -1.779 Alfa Romeo -2.888 Honda -3.807 Aston Martin -6.706 Lotus -8.205 Smart -18.294 Chrysler -21.193 Proton -45.002 Chevrolet -76.241 Perodua -85.92

MARkeT INTeLLIGeNCe

December Year-to-dateMarque 2014 % market 2013 % market % 2014 % market 2013 % market % share share change share share change

Vauxhall 23,162 13.94 21,302 13.93 8.73 269,177 10.87 259,444 11.46 3.75Ford 20,509 12.34 19,496 12.75 5.20 326,643 13.19 310,865 13.73 5.08Volkswagen 14,475 8.71 13,725 8.98 5.46 214,828 8.67 194,085 8.57 10.69BMW 12,445 7.49 11,470 7.50 8.50 148,878 6.01 135,583 5.99 9.81Nissan 8,762 5.27 7,040 4.60 24.46 138,338 5.59 117,967 5.21 17.27Audi 8,013 4.82 7,442 4.87 7.67 158,987 6.42 142,040 6.27 11.93Mercedes-Benz 7,774 4.68 6,619 4.33 17.45 124,419 5.02 109,456 4.83 13.67Mini 7,172 4.32 4,011 2.62 78.81 53,661 2.17 51,933 2.29 3.33Toyota 5,687 3.42 5,042 3.30 12.79 94,012 3.80 88,648 3.91 6.05Peugeot 5,509 3.31 6,239 4.08 -11.70 103,566 4.18 105,435 4.66 -1.77Citroën 5,182 3.12 3,875 2.53 33.73 83,397 3.37 78,358 3.46 6.43Renault 5,162 3.11 5,372 3.51 -3.91 66,334 2.68 46,173 2.04 43.66Škoda 4,615 2.78 5,286 3.46 -12.69 75,488 3.05 66,081 2.92 14.24Hyundai 4,578 2.75 4,757 3.11 -3.76 81,986 3.31 76,918 3.40 6.59Fiat 3,996 2.40 4,060 2.66 -1.58 67,162 2.71 60,198 2.66 11.57Kia 3,907 2.35 3,787 2.48 3.17 77,525 3.13 72,090 3.18 7.54Seat 3,892 2.34 3,606 2.36 7.93 53,512 2.16 45,312 2.00 18.10Land Rover 3,652 2.20 3,012 1.97 21.25 56,200 2.27 54,699 2.42 2.74Honda 3,460 2.08 3,368 2.20 2.73 53,544 2.16 55,660 2.46 -3.80Volvo 2,723 1.64 2,528 1.65 7.71 41,066 1.66 32,666 1.44 25.71Suzuki 2,053 1.24 2,270 1.48 -9.56 37,395 1.51 33,088 1.46 13.02Mazda 1,715 1.03 1,442 0.94 18.93 37,784 1.53 31,228 1.38 20.99Dacia 1,503 0.90 2,047 1.34 -26.58 23,862 0.96 17,146 0.76 39.17Mitsubishi 1,362 0.82 763 0.50 78.51 15,805 0.64 9,044 0.40 74.76Jaguar 1,356 0.82 993 0.65 36.56 18,401 0.74 16,210 0.72 13.52Porsche 813 0.49 777 0.51 4.63 9,160 0.37 8,260 0.36 10.90Lexus 709 0.43 629 0.41 12.72 11,572 0.47 9,014 0.40 28.38Alfa Romeo 329 0.20 313 0.20 5.11 5,523 0.22 5,687 0.25 -2.88Jeep 320 0.19 190 0.12 68.42 3,909 0.16 2,229 0.10 75.37Subaru 229 0.14 210 0.14 9.05 2,793 0.11 2,271 0.10 22.99Chrysler 149 0.09 49 0.03 204.08 1,982 0.08 2,515 0.11 -21.19MG 128 0.08 120 0.08 6.67 2,326 0.09 504 0.02 361.51Abarth 126 0.08 54 0.04 133.33 1,642 0.07 1,352 0.06 21.45Bentley 108 0.06 75 0.05 44.00 1,472 0.06 1,231 0.05 19.58Maserati 106 0.06 16 0.01 562.50 1,194 0.05 319 0.01 274.29Infiniti 79 0.05 21 0.01 276.19 746 0.03 386 0.02 93.26SsangYong 76 0.05 34 0.02 123.53 1,542 0.06 662 0.03 132.93Aston Martin 73 0.04 78 0.05 -6.41 864 0.03 926 0.04 -6.70Smart 13 0.01 304 0.20 -95.72 4,342 0.18 5,314 0.23 -18.29Proton 10 0.01 0 0.00 0.00 11 0.00 20 0.00 -45.00Lotus 5 0.00 63 0.04 -92.06 235 0.01 256 0.01 -8.20Chevrolet 0 0.00 395 0.26 -100.00 2,774 0.11 11,676 0.52 -76.24Mia 0 0.00 0 0.00 0.00 5 0.00 5 0.00 0.00Perodua 0 0.00 1 0.00 -100.00 29 0.00 206 0.01 -85.92Saab 0 0.00 0 0.00 0.00 3 0.00 3 0.00 0.00Other British 36 0.02 24 0.02 50.00 774 0.03 759 0.03 1.98Other Imports 225 0.14 13 0.01 1,630.77 1,567 0.06 815 0.04 92.27Total 166,198 152,918 8.68 2,476,435 2,264,737 9.35

U S E D C A R VA L U E T R E N D S

Used cars bought on finance through dealerships Nov-14 Change on 3 months to Change on 12 months to Change on previous year Nov 2014 previous year Nov 2014 previous yearValue of advances (£m) 806 11% 2,722 17% 10,542 22%Number of cars 76,572 5% 260,267 10% 1,039,069 15%Used cars bought on finance by businesses through dealerships Number of cars 2,270 3% 9,341 -18% 40,894 -30%

Trade-in disposalThe average value for dealer part-exchanges in December fell by £75 or 2% to £4,113, according to BCA, the UK’s largest motor auction group. Year-on-year, December values were ahead by £271. The average age of part-exchanges was slightly higher than that of a year previously.

At Manheim’s auction rooms, the average part-exchange value for December was down £12 month-on-month to £3,383. Year-on-year, the average value was 8% or £254 higher.

“While other areas of retail, particu-larly the big supermarkets, continue to face challenging times, values in the dealer sector have performed broadly in line with expected seasonal norms. The continued application of knowledge of the marketplace and their customer base by dealers is an essential part of this,” said Daren Wiseman, valuations services manager at Manheim Auctions.

Retail stock acquisitionThe average selling price of ex-fleet vehicles dropped to £6,693, a month-on-month slump of £255 or 1.3%,

E C O N O M I C I N D I C AT O R S

94.87%95.84%

Dec 2013Dec 2014

£9,126

£9,162

Fleet/leasing

46,94048,726

39.6039.72

94.34%

95.15%

£4,113

£3,842

73,74473,562

88.43

89.80

Part-exchangeDec 2013

Dec 2014

Nearly new

Dec 2014

101.16%£23,075

8,125

7.01

Average age (months)Average mileageAverage valueSales vs CAP

according to Manheim’s Market Anal-ysis for December. The average value was also £102 lower year-on-year.

BCA saw average ex-fleet car value plunge £507 since November. The average figure of £9,126 was £36 down year-on-year, despite lower mileage.

The drop in value suggested dealers had required less stock than the fleet sector was willing to push to market.

However, BCA’s UK operations director, Simon Henstock, suggested the opposite: “December is a short month for trading and both the market sector mix and model mix tend to change quite significantly. Fleet and lease stock is typically in more limited supply as the year-end approaches, while dealers continue to sell part-exchange vehicles as part of their ongoing retail activity.

“The early days of trading in 2015 have been exceptionally busy and with the new plate only weeks away we are entering one of the busiest periods for the motor trade. Sourcing and securing those best quality retail cars will be critical for professional buyers in the weeks ahead.”

Used values dip ahead of busy plate-change season

YEAR-ON-YEAR

Sponsored by


Manheim Fleet £ Manheim Part Ex £ BCA Fleet £ BCA Part Ex £

7593

3162

3857 3842 3830 3797 3906 3982 4048 3973 4065 4032 4059 4136 4188 4113

3129 3209 3216 3016 3077 3125 3130 3162 31623390 3395 33833285

91629301 9218 91919572 9624 9537 9448 9411

9593 9445 9533 96339126

6795

7824

7076

7791 7791

69647376 7273 7260 7135 7045 6948

6693

Inflation

House prices

Mortgages

Unemployment

Debt

0.5ppts

+7.1%

3%

1.4 ppts

+£400m

CPI annual inflation, the Government’s target measure, was 0.5% in December 2014, down from 1% in November. CPIH (inflation including owner-occupiers’ housing costs) was 0.6% in December 2014, down from 1.0% in November.

The average house price in England and Wales in November 2014 was £176,581, 7.1% higher than in November 2013, according to the Land Registry. However, the average was 0.1% lower than October.

First-time buyers saw a lending decline in November 2014, with 25,900 first-time buyer loans, down 11% on October, and 3% down on November 2013. There was £3.8 billion advanced to first-time buyers in November, 12% down on October but 6% up on November 2013, said the Council of Mortgage Lenders.

The unemployment rate for August to October 2014 was 6%, down from 7.4% for a year earlier, according to the Office for National Statistics.

Net consumer credit borrowing rose £0.4 billion in November, according to the British Banking Association. It said more demand for personal loans reflected improved household finances and an easier borrowing climate.

££

££

£

£ £

£

£

£

➡➡

➡

INNOVATION AWARDS

EXCELLENCE IN BUSINESS

Best Training and Development ProgrammeHyundai CapitalJCT600Kinghams of CroydonLifestyle EuropeMercedes-Benz UK (Van Talent)Sponsored By: AutoProtect

Best Dealer Website CarShopHR OwenPerrys Motor Sales

Best Social Media Campaign Perrys Motor SalesRomford MazdaSponsored By: Marketing Delivery

NEW FOR 2015 Best Use of Television and/or Video Hendy GroupKia Motors – Kia Carens ‘Re-view Mirror’Perrys Motor SalesSponsored By: Sky AdSmart

Best Manufacturer Digital InitiativeKia Motors – Kia Carens ‘Re-view Mirror’Toyota – Accessory Selling ToolVolkswagen – Blended Retailing Sponsored By: Autotorq

Excellence in Customer Service Bristol Street Motors Hyundai – PeterleeKnights North StaffordshireWatford AudiSponsored By: EMaC

Most Improved Company of the YearHumphries And ParksLuscombe Mitsubishi LeedsTaunton Audi (Marshall Motor Group)Sponsored By: Jewelultra Diamondbrite

Sales Team of the Year (New or Used Cars)Hillington CarStore (Peter Vardy)Humphries And ParksLincoln Volvo (Stoneacre Motor Group)Sponsored By: Barclays Partner Finance

Excellence in AftersalesLiverpool Audi (Jardine Motors Group)Pebley BeachVic Young (Vic Young South Shields)Sponsored By: Enterprise Rent-A-Car

NEW FOR 2015 Service Adviser of the YearEsther Sellers (Swansway Garages)John Sleeman (Vertu Honda)Sponsored By: Rotary Lift

THE 2015 SHORTLIST


ith the judging complete, nearly 80 companies are in the running for the highest accolades in automotive retail.

A panel of five judges, including AM editor Jeremy Bennett and chaired by Christopher

Macgowan OBE, made their choices this month from the dealers seeking to be crowned the best in the industry.

Taking a deliberately diverse look at the industry, we are seeking to acknowledge great performance, innovation and a consistent approach that exploits opportunities and tackles problems across more than 20 categories. They range from the cutting-edge – in the four digital categories – to the traditional, among them aftersales, used cars and fleet.

As well as dealers, AM acknowledges the part played by manufacturers in the health of the retail sector in five awards voted for by dealers – new car, used car and franchise of the year as well as manufacturer of the year and digital initiative.

The competition is intense – it guarantees the February 19 ceremony will yet again be a night to remember.

AM AWARDS SHORTLIST

W

“We are seeking to acknowledge great performance, innovation and a consistent approach that exploits opportunities and tackles problems”

Dealer Principal/General Manager of the Year Adam McCullagh (Mercedes-Benz Birmingham Central)Jane Hargreaves (Wrexham Volkswagen)Robin Luscombe (Luscombe Suzuki & Mitsubishi Leeds)Vic Young (Vic Young South Shields)

Digital Initiative of the YearShortlist is made up of the winners from each digital categorySponsored By: Auto Trader

Manufacturer of the Year BMW UKFord UKNissan Motor GBSponsored By: Touchpoint

Retailer of the Year Shortlist is made up of the winners from each retail categorySponsored By: Black Horse

Business Leader of the Year Chosen by the editor of AM

AM Hall of FameChosen by the editor of AM

HEADLINE AWARDS


T O B O O K Y O U R A T T E N D A N C E , V I S I T: w w w . a m - a w a r d s . c o . u k

MANUFACTURER AWARDSUsed Car of the Year Audi A1Audi A3Ford FiestaMercedes-Benz C-ClassSponsored By: Car Care Plan

New Car of the Year Audi TT CoupéJaguar F-Type CoupéKia SoulMercedes-Benz C-ClassSponsored By: Supagard

Franchise of the Year Audi UKFord UKKia Motors UKMercedes-Benz UK

Car Care PlanAn AmTrust Financial Company

RETAILER AWARDSBest Used Car PerformanceHR OwenSwansway Chester PeugeotSponsored By: Autoclenz

Best Fleet Operation Holdcroft Group FleetJardine Motors GroupJCT600Swansway GaragesSponsored By: ContractHireAndLeasing.com

Best DealershipCrewe Seat (Swansway Garages)Milcars MazdaRichmond HyundaiVic Young (Vic Young South Shields)Sponsored By: The Warranty Group

Best Retail Group (up to & including 10 sites)Day’s Motor GroupLifestyle EuropePeoples

Best Retail Group (more than 10 sites)Glyn HopkinJohn Clark Motor GroupMarshall Motor GroupSpire AutomotiveSwansway GaragesSponsored By: Mapfre Abraxas

February 19,The ICC, Birmingham


For more information on the AM Awards, including the sponsorship packages still available and details of how to book tables, go to www.am-awards.co.uk

It is now less than one month until more than 20 franchised dealers and car manufacturers will have the honour of standing on the stage of the 2015 AM Awards to receive their coveted trophy.

A unique stage set has been created, a glimpse of which can be seen to the right. Coverage of the 2015 AM Awards will be in the next issue of AM and at AM-online.

ContractHireAndLeasing.com is sponsoring the Best Fleet Operation award

Enterprise Rent-A-Car is sponsoring the Excellence in Aftersales award

We’re delighted to receive the support of ContractHireAndLeasing.com and Enterprise Rent-A-Car for these two key award categories at what promises to be an industry highlight of 2015.

Welcome to this year’s AM Awards’ sponsors

Louise Minchin

Russell Kane

T O B O O K Y O U R A T T E N D A N C E , V I S I T: w w w . a m - a w a r d s . c o . u k

ORDER OF EVENTS HOST AND ENTERTAINMENTThe 2015 AM Awards will be hosted by Louise Minchin. Minchin presents Breakfast on BBC One, is a guest presenter on Radio 5 Live and a reporter on The One Show.

Before joining Breakfast, she was a news anchor on BBC News and regularly hosted the BBC One O’Clock News. She has also presented sports shows, played a cameo (as herself) in Spooks and managed to get herself ejected from Hell’s Kitchen – even though she wasn’t a contestant. Louise has fronted Channel Five News and its showbiz show Exclusive. She has also co-presented with John Sopel and John Inverdale, and shares the Sunday Life sofa with Colin Jackson.

To finish the ceremony in style, Russell Kane will entertain our guests.Kane is a multi-talented writer and performer and has established

himself as one of the best comics in the UK. He returned to Edinburgh as a former winner of the Foster’s Edinburgh Comedy Award, this time with three shows including his latest sell-out success – Smallness.

He was recently seen on the small screen hosting the third series of Live at the Electric for BBC3, as well as co-hosting Staying in with Russell & Greg, with Greg James. He was also part of the presenting team of ITV2’s I’m a Celebrity…Get Me Out Of Here Now! and Big Brother’s Big Mouth for Channel 4. He has also won Celebrity Mastermind, was a finalist in Let’s Dance for Comic Relief and has appeared as a guest on The Graham Norton Show.

■ For further details on the AM Awards 2015, please visit the event website at www.am-awards.co.uk

6.45 p.m Pre-dinner drinks reception, commences in Hall 4

7.15 p.m Call for dinner in Hall 3

7.30 p.m Welcome, presentation of the awards - Part 1, followed by dinner

9.15 p.m BEN raffle

9.45 p.m Presentation of the awards - part 2

10.30 p.m Cabaret

11.00 p.m Bar & lounge open

1.30 a.m Bar closes

2.00 a.m Carriages

DRESS CODE: BLACK TIE/EVENING DRESS

AM AWARDS SHORTLIST

08.30Registration & networking

09.30WelcomeJeremy Bennett, editor, AM and Ginny Buckley, conference chair

09.40Digital retail lessons fromthe USChip Perry, non-executive boardmember, Auto TraderHaving established the Auto Trader digital brand in America as president and CEO, Perry will share the lessons learned from US car buyers.Perry will underline the key US trends which have transformed car buying over the pond anddemonstrate how these habits are now emergingin the UK.

Offering a fascinating insight into the car buyer oftoday and tomorrow, Perry will provide advice ontweaking the digital approach from content tometrics to better meet consumer expectations.

10.10Promotions andcompliance – how toharness F&I in the digital worldSimon Ryan, managing director, Social AdvisorsBy working with a franchised dealer, Ryan willpresent real life examples and results to illustratehow dealers can harness F&I in the digitalenvironment. This session will provide dealers with the insight they need to navigate this complex area and stake their claim in an as yetuncrowded social space.

10.35 Q&A session

10.45Refreshments & networking

11.05The car and the customer –joined up digital marketing(a dealer case study)Chris Harris, marketing and customer director, HR OwenConnecting the car and the customer may soundstraightforward and obvious, but most dealers canfollow a car literally to the ends of the earth whilstcustomers slip through their CRM systems. Totruly place the customer at the centre of thegroup’s operations, Harris and his team havetaken an holistic approach, here he explores howH.R. Owen has made the car secondary to thecustomer and provides an insight into how bigdata drives its digital marketing.

WorkshopsAn interactive and informal opportunity for delegatesto choose two of the three workshop sessions andfocus on specifc areas of interest.

Workshop 1

Is your website legal?Andrew Brennan, intellectual property andtechnology lawyer, SGH MartineauThe intellectual property and technology team at thisleading UK commercial law frm will provide aninteractive session which asks is your website legal?Businesses must ensure their websites comply witha number of different laws, particularly those relatingto data protection, direct marketing and consumerrights - failure to comply risks investigation by aregulator or watchdog, followed in some cases byfnancial penalties. The session covers: the minimumlegal requirements for all business websites;common mistakes; making sure terms andconditions are appropriate; avoiding copyrightinfringements; and special website considerations forspecifc business sectors.

Workshop 2

Trends, habits and insightsof today's digital car-buyerStuart Bluck, head of research & insightand Rakesh Patel, digital sales director,Auto TraderDrawing on Auto Trader's vast digital backgroundand wealth of data this session explores onlineconsumer behaviour, used car buying trends and theemergence of digital-only retail choice. Bluck andPatel will provide a window into the ever-changingworld of today's digital car-buyer who nowundertakes the majority of the buying process online.Auto Trader continues to amass a colossal amountof digital information which acts as a barometer tothe consumer market enabling the group to spottypical behaviours and emerging trends before mostother players in the sector. Combined with insightsfrom some of the most progressive retail onlinebusinesses, Auto Trader shows how a fexible andopen-minded approach to digital enablesadjustments to be made for on-going success.

Workshop 3

Is your sales process fit forthe digital age?Nick King, market research director andPeter Watts, brand director, Auto TraderPerhaps the last bastion of the old fashioned retailmodel is car sales, which largely deploys the samesales method it frst adopted more than 100 yearsago. Whilst dealers have embraced the digital agewith interactive websites and digital marketingcampaigns, it has failed to recreate the onlineconsumer expectations of a quick, effcient andfocused experience in its showrooms. With realconsumer insight, Watts believes the consumer nowhas the upper hand. Those dealers with a boldvision, innovative approach and the willingness toditch out-dated sales methods will be the oneswhich succeed. This session will show delegateshow it can be achieved quickly and easily.

Lastchance

to book!

11.30Aftersales in the digital sphereAlex Rose, marketing director,Whocanfxmycar.comDigital now forms a vital aspect of operating a proftableaftermarket business, yet many dealers have yet to apply thesame levels of innovative thinking as they do for new and usedcar sales. Rose will draw on digital offerings from the insuranceand holiday sector to explore ways in which aftersales canimprove their own presence in line with consumerexpectations.

11.50Q&A session

12.00Workshop sessions

13.00Lunch & networking

14.00Workshop sessions (repeated)

15.00Refreshments & networking

15.20Targeted TV – taking dealershipsonto the small screens and intoliving rooms (a dealer case study)Mark Busby, new car sales & group marketing director, Hendy GroupThe UK’s frst company to trial Sky AdSmart, which allowsdifferent adverts to be shown to different households watchingthe same Sky TV programme according to specifcdemographic profles, was Hendy Group. Now a centralelement of the group’s 2015 marketing plan, Busby will debunkthe myth that television is prohibitively expensive and explainhow viewers are consuming TV in the digital age and whyautomotive retailers should seriously consider the medium.

15.40Omni-channel marketing – the future of digital retailingSean Meehan, social media marketing manager, BootsMulti-channel marketing very quickly evolved to become omni-channel marketing to deliver a joined-up and seamlessretail experience to the consumer. Meehan draws on all layersof his experience including retail and automotive to exploreomni-channel best practice and future trends. This session willoffer an overview of the retailers which are best implementingthe principles of the omni-channel and share hints and tips thatcan be replicated in automotive retailing.

16.05Q&A session

16.15Summing up and departure

#AMAUTODIGI

12 February 2015The NEC, Birmingham, B40 1NT

To book please contact Emma-Louise Kinnaird on [email protected] or call 01733 395133.

www.amdigitalmarketing.co.uk

��


SHOWROOM T H E C A R S D R I V I N G Y O U R B U S I N E S S

61Seat Ibiza

Selling the virtues of this Ibiza’s clever active cylinder technology engine should come with caution. We’ve found its alter ego.

62Volkswagen Golf

The Golf has proven itself as the greatest all-rounder family car in the market. But does that come at the expense of thrills?

58Mazda3

We look at how the Skyactiv range of new engines has helped to transform Mazda’s fortunes in the UK.

Hyundai takes on the big boys

56Audi A1

The UK is the world’s biggest market for Audi’s smallest hatch, which has become more efficient after mid-life revisions.

F I R S T D R I V E H Y U N D A I i 2 0 – O N S A L E N O W

“The i20 is a further move by Hyundai

towards premium and being more

design-focused”

Hyundai is aiming to chip away at the Ford Fiesta’s dominance with a design-focused supermini

dealers taking two thirds of the expected 17,500 annual sales. That is a lot of volume for Hyundai, which saw registrations

for the current generation i20 peak at 14,729 last year (see graph, above), but it’s minuscule in comparison with the Fiesta, which moves 120,000 units a year in the UK.

On the positive side, that shows Hyundai dealers have a big market to go for and it’s possible the i20 could chip away at some of Fiesta’s market share in the supermini segment.

The 1.2-litre petrol SE will be the most popular engine and trim combination .

There are perfectly serviceable 1.4-litre and 1.1-litre diesel engines, but the petrol is refined, with very little noise filtering through into the cabin, even at motorway speeds.

The i20 is a further move by Hyundai towards premium and being more design-focused, rather than value and practicality.

When looking at it next to its predecessor, there has clearly been progress. The rear of the car looks tidy and the black C-pillar adds an element of premium flair. Some of the design

Dealers are expected to take two thirds of the i20’s expected 17,500 annual sales

By Harry Longstaffyundai is keen to keep its sales momentum moving towards its goal of a 5% market share with the new i20, as it competes against tough mainstream competition from the likes of the UK’s most popular car, the Ford Fiesta.

Hyundai saw a slight dip in market share in 2014, down from 3.4% to 3.3%, despite a registration increase of 6.59% for the same period, but new models, such as the i10 city car and this new i20, will help claw back some segment share for dealers. The new supermini will have a retail bias, with

H

There is a competitive level of standard equipment on the i20 SE


F O R M O R E R E V I E W S V I S I T: w w w . a m - o n l i n e . c o m / r o a d t e s t s

SPECIFICATIONPrice £10,695-£16,725Engine 1.2-litre 73bhp, 1.4-litre 100bhp petrol; 1.1-litre 84bhp, 1.4-litre 88bhpPerformance 0-62mph 12.1-16 secs, top speed 98-114mphTransmission 5sp man, 6sp man, 4sp autoEffi ciency 51.4-88.3mpg, 112-155g/km CO2

RV 3yr/30k TBCRivals Volkswagen Polo, Ford Fiesta, Toyota Yaris

AUTO EXPRESSThe new car is very spacious and well kitted out, but in such a competitive sector its shortcomings – in terms of ride and performance – are highlighted. Still, the arrival of the new three-cylinder turbo next year could change all of that.

AUTOCARThe new Vauxhall Corsa with a 1.4-litre turbo is a few hundred pounds cheaper, nearly as roomy inside, and feels much faster in everyday driving. Hope-fully, the new 1.0-litre T-GDI engine will arrive sooner rather than later, and give the Hyundai a bit more of a fighting chance.

Active and Style trim levels jettisoned in favour of S, S Air, S Blue Drive, SE, Premium and Premium SE. The idea is that these, particularly SE, are much more familiar as trim names for customers and residual value-setters.

There is a competitive level of standard equipment on the SE, which comes with 16-inch alloys, voice-activated Bluetooth, cruise control, lane departure warning system, rear electric windows and reverse parking sensors.

Where Hyundai has been a bit bolder is with its infotain-ment system. Quite rightly at this price point and market segment, Hyundai has done away with a traditional touch-screen system on the Premium trim, instead preferring a smartphone dock on top of the dash.

Customers can link their phone to the car via Bluetooth, using apps such as Google Maps or Scout as their sat nav. This essentially makes sat nav free on entry- and SE-level models, giving dealers a nice differentiator to talk about in the showroom. That doesn’t mean dealers lose out on an upsell opportunity, however, as there’s still the option of a seven-inch touchscreen. The Premium SE trim adds large car features such as heated front seats, heated steering wheel and an opening panoramic sunroof.

Hyundai’s move towards premium does mean pricing for the i20 is creeping up and at £12,725 for the top-selling 1.2 SE, there is only a £235 price gap between it and a Polo SE. It says a lot about Hyundai’s confidence in the product to compete with the big boys.

changes bring the i20 closer in line with brands such as Volkswagen and Toyota, which both skirt a middle ground between volume and premium. That, ultimately, is where Hyundai wants to be, leaving Kia to be funky and ‘young’ .

Hyundai specifically mentioned the Volkswagen Polo as the benchmark for this car and areas such as the cabin quality are a clear step forward over the current i20. While it’s not quite at the level of the Polo, there are now some nice soft-touch plastics and in terms of quality, it surpasses rivals such as the Toyota Yaris.

Unfortunately, Hyundai Kia’s design boss, Peter Schreyer, did not influence design on the i20 (or the recently revealed i20 coupé), so from the front end it does look quite generic. He is expected to have more significant input into new generation models after the i20 coupé. Schreyer’s influence will give Hyundai the kick in the design department it needs to take the brand to the next level.

Trim levels have been given an overhaul, with the Classic,

The rear of the car looks tidy and the black C-pillar adds an element of premium flair

THE TELEGRAPHThe i20’s roomier-than-average interior, fine driving manners and competitive pricing makes this one of the better buys in the small hatchback class, espe-cially when you remember it comes with the reassurance of a five-year warranty.

WHAT YOUR CUSTOMERS

WILL BE READING

ABOUT THE HYUNDAI i20

H Y U N D A I U K i 2 0 R E G I S T R AT I O N S15,000

12,000

9,0002009 2010 2011 2012 2013 2014


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C O N TA C T U S

A D V E R T I S E R S ’ I N D E XAutoclenz ..............................................52

Autoguard Warranties ...............44/45

Auto Trader ..................................2/3/51

BCA .........................................................53

Black Horse ..........................................14

Bluesky Interactive ............................27

Call it Automotive ...............................58

City Auction Group .............................36

DMS ........................................................35

DSG Financial Services .....................33

EDT Automotive ............................46/47

GForces ....................................10/39/59

IMI ............................................................63

Infomedia ..............................................68

iVendi ................................................38/43

Lawdata .................................................52

Loughborough University ................29

Manheim ...........................................4/24

Mapfre Abraxas ....................................8

Marketing Delivery ............................50

Moneypenny .........................................29

Motors.co.uk ........................................40

Paragon Automotive .........................60

Supagard .........................................13/52

Symco Training ....................................37

Trusted Dealers ..................................12

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