ARE YOU PREPARED for RDE and WLTP? Adrocket
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SSANGYONG / P24 New MD Nick Laird wants to give dealers wider finance options and a focus on SMEs PROFIT FROM PRE-OWNED / P29-40 Make the most of ‘the year of the used car’ AUTOMOTIVE MANAGEMENT WINNING DISTANCE BUYERS / P47-67 www.am-online.com July 2018 £8.00 From legal to operations, what dealers need to know about selling completely online EMISSIONS REGULATIONS / P6 ARE YOU PREPARED FOR RDE AND WLTP? adRocket FINANCE PLAN Provide customers the opportunity to spread the cost of red work concerns identified through iVHC over 6 or 12 months, with no deposit, while having the repair fixed on the day. ACTIVE DIGITAL RECEPTION (ADR) Capture key information at service check-in such as service book and locking nut key locations, damage recording (including image evidence capture) and more. Allow service advisors to rebook red & amber work at check-out. DATA REPORTING Full, data rich reporting helps fully analyse performance by dealership, advisor and technician. ONLINE BOOKINGS Provide convenience to customers by allowing them to book VHC work now due directly through the Online Bookings platform. INJECTION OF PREVIOUS CONCERNS Inject previously unsold red or amber work concerns automatically into the new health check as a mandatory inspection. FP_AM_AMIFCiVHC0id3514157.pdf 11.06.2018 10:00 EDITOR’S LETTER t is a major challenge for the UK’s motor retail industry that it can be so quickly brought into disrepute. Given the limited powers and resources that our trade bodies have, surely it must fall to the manufacturers themselves to tackle this issue. I have been reminded of the challenge the sector faces by a number of recent incidents: ■ The advertising watchdog has tackled a deliberatively provocative leasing broker Ifor the inappropriate and offensive language used in its website marketing. But the watchdog’s powers are limited. So will we see carmakers refuse publicly to allow new cars to be supplied to this company? Unlikely, in my view. ■ A saga of a Ford dealership failing to even start repairs to a Galaxy a week after it was booked in by a customer who had been loyal for 11 years, involving an abysmal trail of unreturned calls, ignored messages, excuses and even a service manager who hid rather than try to defuse the situation. The recompense after Ford intervened? An apology and about 15% knocked off the bill. The dealership has made several thousands of pounds in profit from this customer over the years, who now holds it in disrepute. ■ Manufacturers continue to be taken to task about emissions issues. Volkswagen Group has accepted a €1 billion fine in Germany for its defeat devices. Mercedes-Benz is recalling thousands of diesel cars fitted with an emissions ‘shut-off device’, and in February, BMW called in 12,000 cars over a diesel emissions issue. Manufacturers, with their national voice and significant marketing budgets, need to invest in creating trust in our industry, and in spreading that message. Among the millions of customers they and their dealer networks serve annually, there must be sufficient stories to balance the disrepute. Sell the right experience, sell more cars. 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 JULY 2018 3 adRocket We can’t say why they need extra boot space. But we can help your customers find exactly what they need. Our used car specification data helps your website visitors find exactly what they’re looking for. Whatever their need. In fact, it’s so ‘searchable’ that the Top 5 advertising portals in the UK rely on it every day. And with dedicated Technical Account Managers and migration ToolKits, switching from existing suppliers couldn’t be easier. And might save you money too. Find out why. Call 020 3897 2500 or visit www.glassbusiness.co.uk/spec_data FP_AM_3672162id3467916.pdf 30.04.2018 13:58 CONTENTS 24 SsangYong UP FRONT INSIGHT WINNING DISTANCE 06 News insight 22 5 minutes with... 24 Brand values: BUYERS 08 News digest John Matthews SsangYong The business development New managing director 47-67 12 Market intelligence director explains how the Nick Laird wants his Advice on the legalities and Retail Automotive Alliance dealers to use their local 18 Opinions operational requirements helps non-PLC dealer expertise and high service for dealers in selling groups to punch above levels to win corporate cars completely online DEALER their individual weight business in 2018 MASTERCLASS SPOTLIGHT: USED CARS 42 Customer service 30 Tracking 34 De-franchised 39 Don’t forget about the market dealing the price tag TALENT AM asks experts to analyse Staffing, stock mix and Pricing strategies are the current state of the signage are among the key intricately linked with stock used car market and issues dealers need to turn and profitability. 75 Getting more women forecast what the rest of resolve in switching to Dealers tell us how they hit into motor retail 2018 may hold non-franchised operation the sweet spot 76 People on the move 78 Eight questions to… Stuart Hodson, SHOWROOM operations director, Glyn Hopkin 68 Suzuki Swift Sport 71 Long-term reports am-online.com JULY 2018 5 NEWS INSIGHT WLTP SWITCH COULD GIVE DEALERS A ‘TURBULENT’ TIME New ‘real-world’ emissions and fuel economy tests may pull retail registrations forward before they come into force on September 1, but they could also dent consumer confidence, fleet sales and manufacturer supply move towards ‘real- At least one industry insider told IF THE world’ fuel economy AM that may not be enough. and emissions tests “We could be entering a very WLTP A could see retail turbulent period for dealers. The demand rise ahead reality is that you could be faced with DELIVERS A RISE IN of the critical September plate- a huge influx of cars to register change, but the headache of re-testing before September 1 and then a EMISSIONS ACROSS THE BOARD, entire ranges may also lead to shortage of vehicles that have yet to product shortages afterwards. be tested under the WLTP rules THEN IT WILL KNOCK BUYERS’ The EU’s Worldwide Harmonised afterwards,” he said. CONFIDENCE FURTHER Light Vehicle Test Procedure (WLTP) “Without doubt, fleet will be the and Real Driving Emissions (RDE) biggest headache. For some STUART FOULDS, TRUSTFORD tests are both due to come into effect retailers, it might be necessary to on September 1, replacing the New completely re-appraise the European Driving Cycle (NEDC) tests. channels they sell into.” In early June, Volkswagen Group Another blow to buyer confidence? Some dealers are concerned the Research by Cap HPI has found said production of up to 250,000 cars Dealers are also concerned that if legislation may prompt a spike in that WLTP test figures, which are from its group brands in the second the changes are implemented manufacturer ‘push’ and market correlated back to an NEDC half of 2018 will be delayed, with without proper communication to ‘pull’, similar to that experienced equivalent using a tool called potential factory shut-downs in car buyers, it could cause another ahead of the changes to VED in April CO2MPAS, are typically 10% higher Germany as vehicles are made crisis of customer confidence. 2017. It has been claimed that manu- – delivering a rise in benefit-in-kind WLTP-compliant. Stuart Foulds, chairman and chief facturers are likely to want to clear (BIK) tax for many. AMÕs source said: “The timing of executive of TrustFord, said: “If the their books of NEDC-rated vehicles Manufacturers have taken varying the switch-over is very tough for WLTP delivers a rise in emissions and fleet operators will want to beat approaches to the new legislation. retailers and it could very well affect across the board, then it will knock an anticipated rise in emissions In May, Volvo announced it had their remuneration. buyers’ confidence further. If the VED under the new testing regime. completed WLTP testing on all “Whether they are incentivised rates go up, people will immediately In an attempt to mitigate the impact models and would sell using the new heavily to push some manufac- feel that they have been conned. of the changes after September 1, a correlated figures. turers’ 18-plate stock before “There’s not been enough publicity ‘derogation’ rule will allow manufac- While this increased its range’s September could be a key issue. about WLTP to inform the public of turers to retail NEDC-tested cars CO2 ratings before the switch-over, After that, the threat of limited the changes and it could come as built before June 1, but only in it may smooth the transition at a time supply that would normally help another shock to the market. volumes equivalent to 10% of their of rising registration volumes for them reach their targets could be a “Manufacturers haven’t been total 2017 registrations. the brand. factor.” talking about it much and I can only 6 JULY 2018 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] ‘TESTING PRESSURES MAY LEAD TO MANUFACTURERS SCRAPPING PRODUCTS’ Engine development consultants marketing manager, said: and temperatures. Unlike the THE RESULT at Mahle Powertrain said WLTP “I believe development costs NEDC test cycle, the tests also and RDE testing will reduce will have trebled. Some account for the effects of IS MORE customer choice and increase manufacturers will be scrapping optional equipment on weight ACCURATE… manufacturers’ development product simply because they run and drag. costs. out of time to develop it.” Pates said the result will be IT SHOULD BE The business will open the UK’s Dave Pates, Mahle Powertrain’s more pre-tested option packs for first dedicated Real Driving chief engineer for performance customers – reducing the scope COMMUNICATED Emissions (RDE) testing centre, and calibration, said the business for bespoke configurations – but AS A POSITIVE in Northampton, on July 31, and was currently working on 150 added: “The result is a more it has seen first-hand the effect engine projects.