VAUXHALL SALE / P6 What PSA’s purchase means for UK dealers MERCEDES-BENZ VANS / P38 Network boss Sarah Palfreyman on making her dealers more retail-ready AUTOMOTIVE MANAGEMENT GENEVA / P62 www.am-online.com April 2017 £8.00 The cars on their way to the UK from this year’s motor show P28 ‘WESHAUN FOWEATHER, STONEACRE ARE / ON THE ACQUISITION TRAIL’ adRocket THE BCA DIFFERENCE More stock choice than our competitors* Start your search today bca.co.uk/search * Based on vehicle stock available for sale every month on BCA Auction View during 2016 benchmarked by BCA against our competitors. FP_AM_331524id2914571.pgs 15.03.2017 12:12 EDITOR’S LETTER auxhall/Opel is now a sister brand to Peugeot and Citroën – who saw that coming? To my mind, it’s a slightly odd combination, particularly as PSA has only been in the black for 18 months. CEO Carlos Tavares has also voiced a desire to break into North America, a market the French brands quit decades ago. Getting a foothold there will not be cheap. One of the reasons Volkswagen Group has become so strong is it has cleverly positioned its brands into their own segments. Bentley is pure luxury, Bugatti and Lamborghini are supercar V porn, Audi is the premium brand, Porsche the sportscar builder, Volkswagen the mainstream, Škoda the value-oriented brand and Seat the slightly youthful, lively one of the family. However, PSA already has three brands in the mainstream, with Citroën perhaps more at the value end and DS still a long way from being regarded as truly premium. Now it has added another mainstream brand. Not to mention that Vauxhall, Peugeot and Citroën vans all compete in the same space, too. Even Fiat got it right – joining up with Chrysler put the valuable SUV brand Jeep in the same garage as its near-premium brand Alfa Romeo, supercar firm Ferrari, luxury carmaker Maserati and small car specialist Fiat. Tavares says there will be efficiency savings and synergies from PSA’s takeover of Vauxhall/Opel. Let’s hope sibling rivalry doesn’t get in the way. 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 APRIL 2017 3 adRocket FP_AM_SupagardAdid2919515.pdf 16.03.2017 14:34 CONTENTS 62 Geneva Motor Show UP FRONT INSIGHT 06 News insight 28 Face to face: 35 10 minutes with... 38 Brand values: 12 News digest Stoneacre Joanna Swash Mercedes-Benz Shaun Foweather believes Moneypenny’s MD explains Vans 16 Market intelligence his group’s training why outsourcing overflow Network boss Sarah 24 Opinions academy will help it to calls to trained handlers Palfreyman is driving £1bn turnover by 2020, as makes sense for dealers her dealer partners well as provide a future and why she does not to invest in more DEALER managing director struggle to find recruits retail-friendly facilities MASTERCLASS SPOTLIGHT: PERSONALISATION 56 Customer service 42 Tailor your sales 47 Do car dealers 52 Making endless TALENT to each customer need apps? options pay How car dealers can craft You will still need a good Customers personalising their messages for website, but offering their vehicles can slow lead individuals and deliver customers convenience times, but dealers who 79 The dealer’s guide them how and when can build trust and manage it well stand to flexible working each person wants increase engagement to make greater profits 80 People on the move 86 Eight questions to... Phil Lambert, SHOWROOM property manager, Chorley Group 62 Geneva Motor Show 70 Alfa Romeo Giulia 74 Long-term reports am-online.com APRIL 2017 5 NEWS INSIGHT WHAT PSA BUYING VAUXHALL MEANS FOR UK DEALERS GM’s £1.9bn sale of Vauxhall to PSA Group creates Europe’s second-biggest carmaker, but while its four brands give this ‘supergroup’ significant scale, they face challenges in the UK olders of the four UK where Vauxhall previously cohabited certain franchisees to buy or start franchises under with other GM brands, such as Saab their own businesses, whereas PSA PSA Group’s new or Chevrolet.” owns some sites outright through H umbrella may face However, he added: “It is unlikely Peugeot Citroën Retail Group. consolidated, multi- that this deal will have a major brand sites following GM’s sale of impact on the dealership market in Will it affect model line-ups? Opel/Vauxhall to the French group. the short to medium term. By comparison with Volkswagen The £1.9 billion deal makes “Indeed, there could even be Group, which can pitch products at all PSA Group the second-largest car renewed growth. The expanded size levels of the market, from ‘youthful’ very limited cross-shopping”. manufacturer in Europe. It will of the overall company could lead to Seat and Skoda’s budget offerings, to Picat claimed that “cross-shopping” inherit a Vauxhall network of 340 UK renewed investment, possibly the Volkswagen’s upper- middle market between the brands would be as low sales sites, taking the group’s total redevelopment of old sites for new, and premium Audis, the new PSA as 3%, depending on the country. – Citroën, DS Automobiles, Peugeot state-of-the-art facilities or even a Group has added a mainstream However, there are areas in which and Vauxhall – to almost 740. relocation of all brands in a town to brand to a line-up already battling to the brands may complement each Vauxhall currently employs 35,000 a single, larger bespoke site. achieve differentiation. other. Vauxhall has a strong repre- people in the UK, 23,000 of them in “If the new owners can return Vaux- As part of Tavares’ ‘Back in the sentation in the fleet market, while its retail network. hall/Opel to profit, then their existing race’ plan, which was announced in Citroën and DS are more retail- As talks are ongoing about the properties may become a more early 2014 and established DS as a oriented brands, with Peugeot future of Vauxhall manufacturing attractive investment and we could separate brand, PSA said it would coming somewhere in the middle. facilities in the UK – Carlos Tavares, see a significant hardening of yields.” cull its models from 45 to 26 by 2020. the chairman of PSA Group’s It remains to be seen whether the How the figures stack up managing board, has said he wants The impact on volume targets addition of Vauxhall will affect those PSA Group now sees itself as a to realise £1.47bn of “synergies” by Jay Nagley, managing director of numbers, but Maxime Picat, PSA’s “European champion”, according to 2022 – it seems unlikely that the automotive consultancy Redspy, executive vice-president for Europe, Picat, with Vauxhall taking its total dealer networks will escape change. believes Vauxhall’s acquisition could described the addition of Opel/Vaux- market share in Europe to more “There are bound to be economies usher in a new approach to targets hall as creating “a portfolio of brands than 17%. of scale across the business,” said and incentives within its network. that are very well positioned, with However, Vauxhall’s contribution to Graham Jacobs, chief executive of He said Peugeot has worked hard 17 years of losses in Europe for GM Picador and an active member of the to reduce production in order to limit cannot be overlooked and its UK Vauxhall dealer council. pre-registrations and maintain SOME market share fell from more than “If you have a national dealer pricing in recent years, an approach 14% in 2008 to below 10% for the first development director who says ‘why that is “overdue” at Vauxhall. DEALERS time in 2016. haven’t we got a Peugeot dealer in “For too long, Vauxhall has offered Vauxhall’s car registrations in 2016 Southampton’, and there are four incentives to dealers to drive volumes HAVE DONE were 250,955, down 6.97% on 2015, Vauxhall sites down there it would be and the result has been consider- with market share down almost a full daft not to put the two together. I’m able pre-registrations. EXTREMELY WELL OUT percentage point, to 9.32%. sure that is something we will see.” “Some dealers have done extremely OF THE EXISTING Peugeot’s UK new car registra- Mark Frostick, associate at prop- well out of the existing Vauxhall tions fell 5.5% from 104,249 in 2015 erty and planning consultancy system, but they will need to reassess VAUXHALL SYSTEM, to 98,529 in 2016. Over the same Rapleys, agreed. He told AM that, that approach under PSA.” timeframe, Citroën fell from 80,012 while “wholesale closures” within Some Vauxhall dealers may also BUT THEY WILL NEED to 62,991 (down 21.3%). Even when the Vauxhall dealer network were be affected by the differing nature of TO REASSESS THAT DS’s growth, from 8,614 to 15,898, is unlikely, there could be scope for GM and PSA’s approach to spon- taken into account, the decline dealerships to incorporate other soring dealers. Under its previous APPROACH UNDER PSA across both brands is almost 11%. brands into their sites. owner, Vauxhall Motor Holdings The new PSA Group has seen “This could work, for instance, chose to enter into joint ventures with JAY NAGLEY, REDSPY registrations, number of retail loca- 6 APRIL 2017 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] REGISTRATIONS 2007-2016 600,000 500,000 400,000 300,000 200,000 100,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 MARKET SHARE 2007-2016 25% 20% 15% Carlos Tavares, PSA Group chief executive, and his GM counterpart, Mary Barra 10% 5% tions and market share all fall as key profitability via a quirk of European rivals have grown in the past decade.