WINNER OF NEWSPRESS AWARDS’ AUTOMOTIVE BUSINESS PUBLICATION 2020 HERE, THERE, EVERYWHERE / P22 cinch’s nationwide advertising and promotion is essential for its success STEPPING ON DIGITAL GAS / P23 Pandemic has prompted retailers to step up their e-commerce offerings www.am-online.com February 2021 £8.00 THE VOLKSWAGEN ID3 / P40 Much rests on its shoulders as new stable of VW EVs launches EVERYTHING YOU NEED TO KNOW ABOUT INSPIRATION AND IDEAS TO HELP YOU RUN YOUR GROUP, DEALERSHIP OR DEPARTMENT BETTER / P37 PREPARINGPREPARING FORFOR 20302030 HOW ARNOLD CLARK REACTS TO ICE SALES DEADLINE / P18 adRocket Multi-Channel Remarketing IMPROVED SPEED OF SALE, RESULTS AND VALUE PICKUP AB LIVE E VALUATE E HUB EXCHANGE BID OR BUY E LIVE APPRAISE Automated and accurate appraisals. Configurable. Supports your sales process. Speeds up the remarketing process by placing vehicles on sale quicker. DASHBOARD Instant view of your vehicle stock. Channel management for both digital and physical. Dashboard to help make informed remarketing decisions. SELL Upstream part exchange vehicle disposal. 24/7 and continuous sale channels. Dealer or Aston Barclay managed. Cascade options into physical sale. www.astonbarclay.net FP_AM_444210id4399508.pdf 21.10.2020 12:45 EDITOR’S LETTER hat a start to 2021. Week one and straight into lockdown. Thanks COVID for bringing us back down after the EU trade deal was thankfully secured. The upside is that this year can only get better. As more people get vaccinated we will be able to slowly kiss goodbye the threat of such tough restrictions. A more stable working life will return. There’ll be postponed sales opportunities to recover. There might even be Wbusiness meetings with handshakes and hugs again. There’s already a ray of sunshine looming in the form of our online, two-day, festival of motor retail best practice for dealers and OEMs – Automotive Management Live Virtual. With 18 speaker sessions and case studies from more than a dozen dealer groups on January 20-21, I can guarantee you’ll log out afterwards with inspiration and ideas to help you run your group, dealership or department better. You can network virtually with peers too. Find out more on pages 37-39 or go to www.automotivemanagementlive.co.uk for the exact timings and agenda. Whether you’re in work or on furlough, the time you can devote to Automotive Management Live Virtual will be wisely spent. All presentations are being recorded and will be available on-demand for 28 days afterwards, provided you’ve registered. See you there! MEET THE TEAM Tim Rose Tom Sharpe Stephen Briers Jeremy Bennett Editor News and Editor-in-chief Head of digital/ features editor associate editor am-online.com FEBRUARY 2021 3 adRocket Breakout for Ben Get your trainers and bikes at the ready and Breakout for Ben this February! Join us in a huge virtual event walking, cycling and even swimming the distance of famous Motor Circuits across the UK. Get involved to raise much needed funds for Ben and the vital work that we do supporting automotive people. Our industry partners have donated the first £500k, so this is your chance to show your support and help us reach our £1 million target. Get on the Road to £1m and Breakout for Ben. ben.org.uk /BreakoutForBen Ben – Motor and Allied Trades Benevolent Fund. A charity registered in England and Wales No. 297877 and Scotland SCO39842. FP_AM_BenFundRoaid4461032.pdf 12.22.2020 11:31 CONTENTS 37 What’s in store at the first Virtual AM Live on January 20-21 UP FRONT INSIGHT 06 News insight 18 Face to face: Arnold Clark 22 5 minutes with... 10 News digest Automobiles Jason Cranswick 12 CEO Eddie Hawthorne is planning now cinch’s retail director says it will Market intelligence to keep ahead in the EV sales race help dealers, not compete with them 17 Opinions SPOTLIGHT: E-COMMERCE TALENT 24 Regionals grasp 28 Grabbing slices of 35 A rapid 44 Urgent appeal for online future e-commerce pie progression better EV training Scale isn’t everything in As millions are spent on COVID-19 triggered seven before it’s too late internet car sales. Smaller digital marketing, what can years of online advancement groups are fighting back traditional operators learn? in as many months 45 People on the move 46 Eight questions to... SsangYong Motors UK SHOWROOM regional aftersales manager Phill Sargent 40 Volkswagen ID3 am-online.com FEBRUARY 2021 5 NEWS INSIGHT PANDEMIC REMAINS BIGGEST THREAT TO 2021 PROFITABILITY But dealers expect higher EV and petrol car sales to help their recovery now a Brexit deal has seen off the threat of EU tariffs rregular spikes and Survey showed that, even before the WHAT DO YOU SEE AS THE BIGGEST THREAT TO slumps in demand EU trade deal was finalised, retailers could define the car across the UK feared the impact of YOUR DEALERSHIP’S PROFITABILITY IN 2021? I retail environment in COVID more than anything else. 2021 as the UK’s Although the sector evolved rapidly Franchised Dealerships Independent Dealerships battle with COVID-19 continues, with towards online sales and estab- 80% some warning of a year punctuated lished ways to work in leaner fashion 70% by “several lockdowns”. during 2020’s near three-month 60% After an EU trade deal delivered at lockdown period in H1, 66.7% of the 11th hour as a “Christmas gift” franchised car retailers told AM that 50% from Prime Minister Boris Johnson COVID remained the main threat to 40% buoyed the sector, the return of the profitability, compared with 30% COVID-19 lockdown restrictions on 25.6% which cited Brexit. 20% January 5 tempered hopes of a Among independents, 62.3% cited 10% aresurgent start to the new year. COVID-19 as the biggest threat, with With the tariff-free delivery of 25.9% prioritising Brexit concerns. 0% vehicles to UK retailers secured, AM’s survey was conducted ■ Brexit impact ■ COVID-19 disruption ■ Other retailers’ concerns are now keenly between December 11 and January 7. focused on the ongoing impact of After the turn of the year – and with COVID on consumer demand. the relative security of the EU free WHAT DO YOU EXPECT TO HAVE THE BIGGEST EFFECT ON YOUR It looks likely the current closure of trade deal – all dealers responding BUSINESS FOLLOWING THE UK’S DEPARTURE FROM THE EU? dealerships across the UK will to the survey cited COVID-19 as their impact the key March plate change key concern. Franchised Dealerships Independent Dealerships AM for a second year. Speaking to after January 4’s 60% Jayson Whittington, chief editor at announcement of a return to lock- Glass’s and a director of the Vehicle down in England and Scotland, Vertu 50% Remarketing Association (VRA), Motors chief executive Robert anticipates a stop-start sales outlook Forrester said the prospect of the 40% for 2021 as a whole, despite the new lockdown measures running 30% Government’s immunisation push. into March meant retailers would “It’s going to take several months, have to come up with strategies to 20% retain volumes now. if not more than 12 months, and we 10% are going to see several more lock- “The industry’s going to have to get downs through the year,” he said. its head round the issue of new cars 0% in March and building order banks is ■ Vehicle supply ■ Parts supply ■ Workforce constraints ■ Other PROTRACTED RECOVERY going to be a priority despite the new Trustford chairman and chief execu- restrictions,” he said. tive, Stuart Foulds, was also among Foulds agreed. He said: “Clearly THE INDUSTRY’S those who believe that Government’s the end of Q1 will bring the usual ambitious bid to immunise two plate change pressures and there GOING TO HAVE TO million people against COVID-19 will be a number of people reaching each week would still deliver a the end of finance agreements to GET ITS HEAD protracted recovery. deal with, as there is every year. ROUND THE ISSUE OF NEW Foulds said: “Logistically, I under- “Our teams will be working hard stand that it’s likely to take to the end on our databases in the weeks CARS IN MARCH AND of this year to get the population ahead to make sure we are able to immunised. I very much doubt we’re fulfil as many sales as possible.” BUILDING ORDER BANKS going to return to normal trading Responses to the 2021 Outlook conditions at the end of Q1.” Survey indicated that 59% of fran- ROBERT FORRESTER, The results of AM’s Outlook 2021 chised car retailers and 48.2% of VERTU MOTORS 6 FEBRUARY 2021 am-online.com SEND US YOUR NEWS If you have any news stories you’d like to let us know about email us at [email protected] independents remained confident of FINANCIAL PERFORMANCE: COMPARED WITH 2020, DO YOU EXPECT: growing turnover despite the continued headwinds. Franchised Dealerships Independent Dealerships However, just more than a third (35.9%) of franchisees and less than 70% half of independents (44.4%) antici- 60% pated that would translate to an 50% increase in profitability. Franchised dealers adapting to the 40% new Financial Conduct Authority 30% (FCA) regulations on commissions 20% saw used cars as the bigger oppor- tunity in the finance sector, with 59% 10% anticipating growth, compared with 0% just 35.9% for new car finance. Turnover Profitability New car finance Used car finance Turnover Profits Used car finance A total of 55.7% of independents ■ ■ ■ also anticipate an increase in used to increase in 2021 to decrease in 2021 to remain unchanged in 2021 car finance.