F&I Management & Training

Two of the UK’s largest dealer groups have agreed to take part in a major fundraising initiative launched by BEN.

Lookers and Sytner Group, both in the top five of the AM100, have agreed to participate in Dealers Backing BEN.

It was launched in the middle of June and allows participating dealers to contribute £1 to the motor industry charity from the sale proceeds of each car sold through auction.

Lookers’ chief executive Peter Jones said: “When the economy is under pressure, many charities find it most difficult to raise funds, but of course it is during these times that their services are in greatest demand.

“Our industry charity is obviously no different to this and we are therefore delighted to support this well thought through initiative in support of the excellent work undertaken by BEN.”

Keith Weaver, group used car manager at Sytner, said: “I wanted to be certain it was really that simple to participate, after that I had no hesitation in pledging our support”

Nigel Williams, BEN’s head of national development, said: “Gaining the support of these key players along with Marshall and Eden Vauxhall clearly show that this is an initiative that pushes the right buttons for dealers: a relevant cause that’s simple to participate in.”

Marshalls was the first dealer group to sign up to the scheme, followed by Eden.

BCA and Manheim have pledged their support also.

It is estimated that the largest retail groups could raise more than £500,000 a year for BEN in its work to help more than a million people that could be entitled to its support.

The contribution is estimated to be the equivalent of just £1 each for those working in the retail sector.

Also, the deduction of a donation at point of sale will, in fact, cost a dealer less than £1 after taking into account VAT calculations.

To find out more contact Nigel Williams at nigel.williams@ben.org.uk or on 07840 485836.

DATED: 02.07.10

FEED: AM

The UK’s motor industry is still waiting to hear whether the Labour government’s promise of a £5,000 subsidy for electric vehicle buyers will be upheld by the new coalition administration.

Business Secretary Vince Cable told delegates at yesterday’s SMMT International Automotive Summit that he understood their frustration at the review but he could not tell them the outcome, and insisted it would be a decision made by another colleague in the Department for Business Innovation and Skills.

Cable, an oil industry executive before he became an MP, told the SMMT gathering that automotive was the “hinge on which the economy depends” with its 800,000 employees and 10% contribution to national exports.

“If we get a recovery it has got to be export led,” he added.

However Cable warned that direct support such as scrappage and the Automotive Assistance Programme was over and the UK would not fight a subsidy war against other countries.

“We’re just emerging out of a period of very heavy government intervention. We’re now in a new era, in a different world,” he said.

“We don’t see a future in terms of large scale Government support for particular companies.”

The new administration wants to work in partnership with the automotive sector and needs to work out the best way it can help, such as through investment for research, skills and apprenticeships, he said.

DATED: 02.07.10

FEED: AM

Cambria Automobiles has been awarded the Payroll Giving Gold Award 2010 by the automotive charity BEN.

The award was given in recognition of the Cambria’s decision to “foster a culture of philanthropy and committed giving in the workplace”.

The Gold Award is a symbol of excellence and is awarded to employers that have succeeded in generating sustainable income sources for UK charities through payroll giving.Mark Lavery, Cambria’s chief executive officer, said: “We are delighted to be in a position where the associates of Cambria Automobiles can make a difference to those people in a less fortunate position.

“BEN is the one recognized motor trade charity and I believe in these difficult times that it has never been more important to support our own dedicated charity.”

DATED: 02.07.10

FEED: AM

The creation of a new regulatory body, the Consumer Protection and Marketing Authority, to replace the Financial Services Authority in overseeing motor retailers is likely to lead to a ‘zero tolerance’ approach to ensuring consumer protection.

The Consumer Protection and Markets Authority will take on the FSA’s responsibility for consumer protection and the conduct of all retail and wholesale businesses. It is the CPMA that is likely to oversee activities undertaken by motor retailers. It is understood it will have a tougher, more proactive approach than the FSA.

Two other bodies are to be created. The Financial Policy Committee will have responsibility for considering the wider economic issues and the dangers to stability, directing the new Prudential Regulation Authority to take regulatory action against deposit-taking High Street banks, insurers and investment banks.

Both the FPC and PRA will be chaired by Bank of England governor Mervyn King.

Stephanie Murdoch, managing director of Alliance Consultancy, said: “There has never been a greater need for keeping up-to-date on regulatory requirements.

“It is clear from the announcements made that we are now moving into an era of zero tolerance to non-compliance and senior management’s culpability for the decisions they make in the success or failure of their business.”

The new regulatory bodies are to be in place by the end of 2012 before which there will have been a consultation process.

The Government is expected to publish the consultation document before Parliament’s summer recess. In the meantime the FSA will continue to function with the expectation businesses will “maintain high quality, focussed regulation during the transition”.

“What will happen during the transition or after the 2012 deadline is not clear,” Murdoch said. “It is likely there will be amendments to current rules, processes and procedures and almost definitely a period of ‘shifting sands’ and uncertainty during which motor retailers will need to remain diligent, particularly at a time when the new EU Consumer Credit Directive needs implementing.”

Sue Robinson, Retail Motor Industry Federation director, said: “These changes will give us a renewed opportunity to lobby on behalf of members to have the insurance regulatory framework reviewed.”

DATED: 02.07.10

FEED: AM

Mercedes-Benz Retail topped the charts in a recent Autointel top 20 dealer group ranking.

The Group netted the highest average sales per outlet of 41 car sales per site in May, compared to the average UK dealer selling 26 new cars.

“We are motivated by results and this illustrates Mercedes-Benz Retail’s strength in its brand, product, personnel and service," said Mercedes-Benz Retail managing director, Neil Williamson.

“Within our business we have seen a strong start to 2010 and a clear rise in sales in the first half of the year. Despite the economic recession, Mercedes-Benz Retail is weathering the storm and can see a hint of brightness on the horizon."

Mercedes-Benz Retail Group is a division of Mercedes-Benz UK Ltd and was founded in September 2001.

Today, it has 23 outlets across Birmingham, London and Manchester and is the largest official retailer of new and approved used Mercedes-Benz cars in the UK.

The top five highest average sales per outlet

1. Mercedes-Benz Retail 41.2
2. Caffyns 39.8
3. Inchcape Retail 38.8
4. Listers Group 38
5. Ford Retail 37.1

Vauxhall has appointed Andy Gilson, Vauxhall’s marketing director, as its new customer experience and corporate strategy director.

This role will focus on driving Vauxhall’s customer satisfaction.

Gilson leaves his job as marketing director after six-and-a–half years, during which time he’s been responsible for the launch of every new Vauxhall product, including two generations of Astra, the Agila, Insignia and new Meriva.

Peter Hope will replace Gilson as marketing director. Hope was previously Vauxhall’s integrated communication manager.

Both Gilson and Hope will report directly to Duncan Aldred, Vauxhall’s managing director and both take up their new positions on July 1.

Saab’s 71 UK dealers are being promised a full range of premium cars that remain true to Saab’s ‘responsible performance’ heritage.

Sales of the Swedish marque, which is now owned by Spyker after one-time parent GM offloaded it, have been devastated in Britain.

Although figures for the first two months of this year show that sales to private buyers of the 9-3, the mainstay of the range, still reached 1,300 units, while sales of the larger run-out 9-5 were below 300.

However, it is sales to fleets that show the scale that now faces Saab and its dealers as they look to get back to the 15,000+ total sales within two years.

In the first two months of the year, less than five 9-5 and under 200 9-3 models went to fleets, which were mainly legacy supply deals from the GM days.

This massive fall in corporate sales was primarily because residual value setters and lease companies lost faith in the company and so they either stopped writing any Saab business at all or pushed contract hire rates through the roof.

Now the company is back on its feet, with its future apparently assured under its new owner.

And the manufacturer’s promise to its dealers for a line-up to rival its German adversaries comes as the Trollhatten plant starts to supply the new right-hand drive Saab 9-5 models for the UK market, which is Saab’s second largest market in Europe’s behind Sweden and the world’s third largest behind the US.

Joining the new 9-5 will be a high-power low-CO2 9-3 before its replacement arrives in 2012.

Missing from the timeline however is the promised 9-1 entry-level Saab, although a company spokesman promised an announcement will be made “within weeks” confirming a partnership with an as yet unnamed premium carmaker.

This partner will supply the powertrain and chassis for the new entry level Saab, which will not arrive before 2013 and will rival BMW’s 1 Series.

All this will be welcome news to Saab dealers here who are now gearing up to sell 8,000 units for the remainder of 2010 on the back of the renewed interest generated by the 9-5’s launch.

While Saab told AM the number of dealers it currently has is ‘optimal’, it also said it is willing to talk to dealers interested in the franchise, especially those in the southeast where there are some open points.

ALD is in place to supply finance terms to customers through the Saab Contract Hire white label product, while the residual value guides and contract hire companies are beginning to set RVs that take Saabs back into affordable territory for fleets.

At least one-third – 2,000 units – of fleet sales will be directly made by dealers to local businesses mainly using the Saab Contract Hire.

However, dealers must focus on retail buyers, who are predicted to make up 60% of Saab sales, as well as fleet buyers.

While GM may have sold Saab, it still has an interest.

Not only is it still supplying the engines at the heart of the new 9-5 and current 9-3, but it is also proving dealer stocking finance through its GMAC finance arm.

DATED: 30.06.10

FEED: AM

The automotive industry may see an uplift in sales in the second half of 2010 as some consumers and fleets bring forward their change of car ahead of the 20% VAT rate introduction.

However the Retail Motor Industry Federation (RMI) warns that the short-term gain will be followed by long-term pain as it believes the increase will dent consumer confidence.

The extra VAT will raise the cost of a £15,000 new car by around £375.

The decision to increase VAT by 2.5% on January 4 next year was one of the measures with implications on motor retailers which was announced by Chancellor George Osborne in last Tuesday’s Emergency Budget.

Other measures aimed at reassuring companies included cuts in business tax and changes to National Insurance payments.

Corporation tax, currently 28%, will be cut by 1% per year for four years from next year, bringing it down to 24%, while the small companies tax rate will be cut by 1% to 20%.

To support companies’ workforces, the employers’ National Insurance contribution threshold is to rise by £21 per week, and a new scheme will be introduced which will support new businesses outside London and the south east by making them exempt from up to £5,000 of employer National Insurance payments for the first 10 employees hired.

Chancellor George Osborne said the Emergency Budget deals decisively with the UK record debt and claimed “It’s tough but it’s also fair. This is the unavoidable Budget.”

In terms of personal taxation, Capital Gains Tax remains at 18% for low and middle income earners but increases to 28% for higher earners.

At the RMI, director Sue Robinson said it was pleased the VAT rise does not come into effect until January.

“This will produce a short term stimulus in sales, with buyers bringing forward purchases, which presents an opportunity for consumers and dealers to beat the rise by purchasing or selling over the coming months.

“However, today’s announcement will, in the longer term, damage the recovery and dent consumer confidence.

“The retail motor industry is only just emerging from one of the most difficult periods in recent times and to increase the VAT rate does nothing to help either the consumer or the retail motor sector. Car buying patterns reflect the state of the economy and business will be forced to pass on the VAT increase to the consumer.”

On the business support measures, Robinson said: “The reduction of the small business rate to 20% will encourage enterprise. Furthermore, the gradual reduction of the main rate of corporation tax over the next four years will act as a welcome stimulus for business.

“ However, we are disappointed that the Chancellor has chosen to reduce the annual investment allowances for capital investment to £25k per annum. This will dissuade businesses from making large capital investments, such as replacing heavy truck fleets.”

DATED: 30.06.10

FEED: AM