Wednesday, July 28, 2010
Dealer bosses urged to invest in training
Exposed
Peter Cooke, the KPMG professor of Automotive Management at the Centre for Automotive Management, University of Buckingham, said cuts have been made across the board leaving dealers exposed once the economy recovers.
Cutbacks
"This is my fourth recession. Yes there are a lot of cutbacks but this time we are going to see so many changes coming out of recession in terms of the changing face of the industry. Now is the time that all organisation should be looking to train their people," he told Motor Trader.
"My concern is that a lot of companies will have missed the boat in that they have been through the slack period and now, as the market starts to recover, they really need to have trained people out there working. We are seeing a lot of reorganisation happening," he said.
Managers
Cooke is currently working with JCT600 which is putting 24 managers through an 18 month course to gain a Certificate in Automotive Management.
Subjects covered include management and leadership, finance n business planning, strategy and marketing and customer service.
Confidence
Cooke said the course boosted delegates' confidence, improved presentation, verbal and written skills. Dealer delegates take part in two day modules every two months.
DATED: 28.07.10
FEED: MT
Tuesday, July 27, 2010
New V5 log books on the way
The Government has said it will introduce a new version of the V5C document - commonly known as a vehicle's log book.
All cars registered from August 15 will receive the new V5C.
From the middle of 2011, the document will also be issued to all remaining vehicles when they are re-licensed or declared to be off the road.
AVCIS, the Association of Chief Police Officer’s Vehicle Crime Intelligence Service, has applauded the move, which follows the theft of a large number of blank V5C vehicle ‘Registered Keeper’ documents in 2006.
Tthere is concern that there may be a significant number of these log books still in circulation.
To date, AVCIS has recovered in excess of 1,330 vehicles with a value of more than £15 million.
Head of AVCIS, detective chief inspector Mark Hooper said: “AVCIS has been working very closely with the DVLA to redesign the new V5C, which also now contains enhanced security measures and a clear reminder that a V5C should not be considered as proof of ownership.
"We expect that phasing out the old log books will reduce the chances of stolen cars being cloned and sold on to innocent motorists, who presently lose their money and their newly-purchased car.
“We will continue to monitor forgeries using the old style documents and arrest the people responsible but we urge motorists to follow our advice when buying second-hand cars. Above all, remember the old adage that if it seems too good to be true, it probably is."
The stolen V5Cs are recognisable as having a slightly different background colour on the Notification of Permanent Export (V5C/4) tear-off slip on the second page, which looks mauve on the front and pink on the reverse. On legitimate documents they should be mauve on both sides.
Ford Retail has high hopes for internet selling
Ford Retail’s direct dealing internet programme, designed to “move further and faster by creating a dedicated online dealership brand” could account for one in 10 of the group’s sales within ten years, according to Steve Hood, managing director of FordOnline.co.uk.
Detailed consumer research among internet customers and the success of a pilot programme have driven Ford Retail’s “dedicated alternative channel” which, according to Hood, provides: “an extremely convenient, haggle and hassle-free way of buying a vehicle, all from the comfort of your own home or while on a break from work.”
One of the “final barriers to online vehicle selling” claimed the FordOnline executive, was the finding that 37% of internet shoppers are prepared to buy cars and vans without test drives.
Hood emphasised that FordOnline.co.uk, which uses 12 strategically-placed English dealerships as processing centres for internet orders out of a network of 50 outlets, “complements our existing brand.”
But he admitted that “there are times when FordOnline has been offering prices £250 to £500 below conventional dealership prices. It is a very dynamic and volatile business model which prices towards volume and group dealership needs at the time. It will be competitive but our dealers, and independent counterparts can be hyper competitive.”
Hood added: “If one of our dealerships is dealing aggressively to get to their bonus figure then it could support that outlet. It simply varies the way our dealers trade. Our first tranche of stock comes from the group pipeline and then we look into the national Ford supply base.”
The direct-selling operation is based in the Birmingham Fort Dunlop complex overlooking the M6 and employs 14 computer and phone staff.
The conspicuous absence of Scottish and Welsh internet-related delivery centres is due to the “partially historical” factor of Ford Retail not being represented in either country.
On the anticipated share to be taken by FordOnline Hood responded: “I would estimate and anticipate our internet business could move to 10% of group business in three to five years. Other sites take you back to salesmen and ours is more of a genuine online experience.”
Ford Retail sold 70,000 new and used cars last year and Hood said the division had been surprised that 59% of FordOnline users will spend between £10,000 and £20,000 on a broad spread of models, not just “relatively aggressively priced lower-spec cars.”
DATED: 27.07.10
FEED: AM
Inchcape shares secrets of success at SMMT summit
Measurement of performance and motivation of staff are both vital tools in driving up standards of customer service in motor retail.
That was the overview given by Inchcape chief executive Andre Lacroix to delegates at the SMMT International Automotive Summit.
Inchcape interviews 12,000 people across its global operations every month, including buyers and those who walked away, for feedback.
It also measures customer visits, phone calls, emails and test drives against KPIs in order to identify issues and recognise progress.
Lacroix said the car buying process is highly emotional for customers so the overall experience, from parking at the dealership to being engaged by staff, is vital.
Some potential customers in motor retail are still not given the right opportunity because they are pre-judged by sales staff.
“The cars are getting better every day so if you want to offer value for money I believe you have to continue to work on customer service,” said Lacroix.
The quality of employees is essential, as is the way that management interact with them and that their remuneration and bonuses reflect good service and not just sales.
Lacroix said a happy employee will deliver fantastic customer service, and a well-treated customer will be more loyal and more likely to trade up when given the opportunity.
He added: “It’s very good to have smart and practical people but if they don’t know how to get through to the customer that’s a challenge.”
DATED: 27.07.10
FEED: AM
Hybrid cars 'don't save motorists money'
Consumers who buy a hybrid vehicle because they believe they will be cheaper in the long run are wrong, researchers in Canada have claimed.
Twelve years after Honda introduced the first gas-electric hybrid vehicle it has been suggested that those who buy a hybrid model continue to pay a premium rate.
A British Columbia Automobile Association (BCAA) study compared the purchase, financing, and fuel costs of 16 hybrid models over a five-year period.
It concluded that only one hybrid car cost less to buy and then run over a period of five years than its more conventional petrol-powered counterpart.
That was the Mercedes S400 Hybrid Sedan which was found to cost $5,000 (£3,200) less to own and operate.
The hybrids that came closest in cost to their conventional counterparts in purchase and operating costs were the Toyota models (Prius, Camry and Highlander Hybrid), all the Honda models (Insight and Civic Hybrid) and the Lexus HS250h.
The hybrids that were the least costly to own and operate were the Honda Insight ($38,326), Toyota Prius ($40,324), and Honda Civic Hybrid ($42,664).
The Toyota Prius was found to have the lowest overall carbon emissions of any of the hybrids.
Trace Acres, BCAA's director of corporate communications and government relations, said: "BCAA's research shows that cost is not typically the main motivator for someone looking to purchase a hybrid.
"We believe that many consumers are willing to pay a bit more to go hybrid if it will reduce their carbon footprint."
Free car reliability website has just got better
The UK's most comprehensive guide for used car reliability, www.ReliabilityIndex.co.uk, has been relaunched with a raft of improvements.
Designed to provide the nation's motorists with an unparalleled resource of information and a unique insight into cars aged three to 10-years old, ReliabilityIndex.co.uk is free to use and now contains extra functionality.
The backbone of the website is provided by historical data over the last 10 years from automotive warranty company, Warranty Direct, which has covered hundreds of thousands of cars during the last decade.
Boasting additional features, such as the ability to compare vehicles, select vehicle sectors like MPV and convertibles, a graphical representation of data and buying guides, the revamped site is live now.
"Since its inception, the Reliability Index has helped tens of thousands of car buyers make a better, more informed decision when it comes to their purchase," explains Duncan McClure Fisher of Warranty Direct.
"We are totally independent of any motor manufacturer so the information we provide, which is based on millions of pounds worth of claims every year, can be trusted.
"While no car is immune from a breakdown, the information now available at the fingertips of motorists at least offers a degree of peace-of-mind."
Industry credibility at core of new relationship
Motor industry regulatory body, Motor Codes, is to intensify its push to increase the service and repair sector's credibility as it enters a collaborative relationship with the Institute of the Motor Industry (IMI).
"Raising service and repair standards in every garage, in every town, in every region of the UK is our number one priority," said Chris Mason, Motor Codes director. "We're proud of having the highest level of support from government, consumer bodies and industry and we want to build on that by working with the IMI to promote the competence and skill of our service and repair technicians."
Motor Codes promotes its 6,200+ subscribing garages through its website (www.motorcodes.co.uk) and drives thousands of customers to garages through the online Garage Finder tool. Garages subscribing to the Code contribute to the continued development of the sector by participating in its self-regulation to raise industry standards.
Launched in 2005 by the IMI, Automotive Technician Accreditation (ATA) is the UK's first and most widely adopted voluntary scheme that proves the current competence of technicians working in the sector. Over 24,000 individuals across the sector have achieved the standard.
Sarah Sillars OBE FIMI, executive chair of the IMI said, "The need for competent, ethical individuals and businesses has never been more crucial to the future success of our industry. The IMI seeks to help employers and those working in the sector generate demonstrable improvements in productivity and performance through a better trained, qualified and recognised workforce not least through our successful ATA scheme. Both ATA and Motor Codes are clearly recognisable signs that provide consumer confidence in our industry and the IMI welcomes this new relationship with Motor Codes."
Lloyds scrap PPI
Lloyds Banking Group to scrap Payment Protection Insurance
Instead it will simply hand out a generic leaflet about PPI with such products. When the site asked the bank about this, all the Lloyds spokesperson would confirm was:
"Lloyds Banking Group stopped selling PPI from Friday, 23 July across all brands. The group does not expect this move to have an impact on income and the group will continue to receive income from existing policies.
Martin Lewis, creator of MoneySavingExpert.com, comments:
"This is a quite astonishing move. This insurance, which has been scandalously missold for years leaving many consumers in misery, is estimated to be worth up to five billion pounds a year for the industry.
"Frankly we're jumping for joy at this news, and hope the other big banks follow suit. The product itself isn't bad, it can provide useful protection to people if they're sick or lose their jobs as it covers their repayments, but people should go to competitive standalone insurers rather than banks.
"That's because they sell it at four or five times over the odds, often without checking suitability, meaning many have been duped into paying a hidden £1,000+ extra on policies that are worthless for them.
"To all those who've got or had one of these policies - even on a now paid off loan - I'd urgently suggest you check it's suitable, we've had over 900,000 template letters for PPI reclaiming downloaded and countless millions paid back, you may be eligible for serious money."
