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Best UK Dealerships to 31Work for 2019 CONTENTS – the Results Thank you for all your business in 2019 We wish you a wonderful Christmas and a prosperous New Year, from everyone at EMaC Email: [email protected] Web: www.emac.co.uk Tel: 0330 099 6826 GiveGive thethe giftgift ofof goodgood healthhealth FindFind outout moremore atat supagard.comsupagard.com AUTOMOTIVEAUTOMOTIVE MANAGEMENTMANAGEMENT www.am-online.comwww.am-online.com DecemberDecember 20192019 £8.00£8.00 SAFETYSAFETY ININ NNUMBERSUMBERS HOWHOW MDMD KRISTIANK RI S TI A N ELVEFORSELV AIMS TOTO DELIGHTDELIG VOLVO DEALERS WITH SOARINGSOA RING SSALES & RISING RETURNS / P26 FCA/PSA MERGER / P6 What does the ‘supergroup’ mean for UK dealers? EAL K D ER U S CARS2 / P18 H T I P Why premium franchises hold S E S B no interest for MD Allan Otley 2019 TO R WORK FO ONES TO WATCH / P43 The brands, people and products THE WINNERS / P31 you will be talking about in 2020 adRocket FP_AM_3876884id4101824.pdf 12.11.2019 15:10 EDITOR’S LETTER re we on the cusp of an electric revolution? There are more than 30 EVs due for launch or at least to be revealed during 2020, and I find it a bit exciting. Clearly the UK car market will be dominated by petrol engines for probably another decade yet, but now the fear factor is being ironed out of EVs, isn’t this a great opportunity to excite consumers? Having been fortunate to recently run a Mitsubishi Outlander PHEV, and having lived with a couple of early generation Nissan Leafs this decade, I’m convinced many private motorists will soon get comfortable with the idea of never visiting a fuel station again. A Why shouldn’t a car charge up while we’re getting some sleep? The challenge for UK dealers will be getting enough allocation. The cars are getting so useable, becoming desirable, and will be more affordable. Consumers will become impatient. That’s potentially good news for residual values, if demand outstrips supply for a while, but less so if you lose customers to rival brands because their models are available sooner. In this tough marketplace, let’s see EVs as a good opportunity, rather than more trouble ahead. One thing will sadden me in the future, though. I’ll miss the addictive whiff of petrol. HAPPY CHRISTMAS FROM THE AM TEAM Tim Rose Tom Sharpe Stephen Briers Jeremy Bennett Finbarr O’Reilly Editor News and Editor-in-chief Head of digital/ Production editor features editor associate editor am-online.com DECEMBER 2019 3 adRocket INCREASE YOUR SALES AND MARGINS WITH WHAT CAR? NEW CAR BUYING More than 20m people visit What Car? every year to research their next car Find out how you can reach these in-market buyers with the What Car? New Car Buying service. Avoid a race to the A pricing We encourage more lowest price; deals are model that gives leads for you by based on What Car?’s you a far more protecting consumer Target Price, which cost-effective ROI privacy with direct represents a fair price for the compared with communication consumer and the dealer other channels on our platform For more information go to whatcar.com/increasemysales FP_AM_406849id3965181.pdf 10.07.2019 13:35 AM Best UK Dealerships to 31Work For 2019 CONTENTS – the results UP FRONT INSIGHT 06 News insight 18 Face to face: 24 10 minutes with... 26 Brand values: 08 News digest Cars2 Neil Gilligan Volvo Franchised or not, if selling Indicata’s national business Its sales defy the UK 10 Market intelligence cars doesn’t make him development manager downturn, dealer morale is 17 Opinion more than 3% return on explains how its data-led up and new EV models are sales, then managing ‘whole market view’ can on the way, but Volvo is not director Allan Otley benefit motor retailers resting on its laurels, says TALENT isn’t interested and manufacturers MD Kristian Elvefors SPOTLIGHT: ONES TO WATCH 74 Dealer pay survey 75 People on the move 44 Who to watch 47 Products to watch 51 What’s on 78 Eight questions to... Hi-tech entrants, new From 5G to aftersales the horizon? Nic Brayley, alliances and products, lockers and artificial EVs, online retail and operations manager, ongoing regulatory intelligence to new electric Devonshire Motors changes and old supply vehicles, we look at what connected cars are likely to woes will all loom large dealers will be selling or make waves next year, say in 2020 using next year motor retail experts SHOWROOM 70 Peugeot 208 72 Long-term reports am-online.com DECEMBER 2019 5 NEWS INSIGHT PSA MERGER MAY GROW FCA PRESENCE IN AM100 Carmakers’ deal will build stronger group, but will create ‘winners and losers’ among dealer networks, say industry analysts CA Group repre- chief executive of FCA Group UK & of the savings would be achieved March 2018, as reported sentation among Ireland, said: “Certain conversations after four years. exclusively in AM at the time. the AM100’s top have been difficult since I started. Carlos Tavares, the chief execu- A month later, in April last year, F retail groups may “When you’re delivering 15% tive of PSA who would lead the new Vauxhall UK managing director and grow as a period of market share, those conversations business, said all the brands chairman, Stephen Norman, franchise consolidation follows the don’t happen.” currently operated by the two confirmed to AM that all franchise manufacturer’s planned merger Young said the new PSA/FCA groups would be retained. contracts would be terminated as with PSA Group, it has been claimed. entity would almost certainly deliver Speaking to French news outlet the brand began a complete While joint retail sites bringing “some consolidation of investors”, BFM Business, Tavares said: “I see refranchising programme. together the resulting manufac- adding: “Existing PSA dealer inves- that all these brands, without The 2019 edition of the ICDP’s turer group’s 15 brands in any tors will be expected to take on exception, have one thing in European Car Distribution single multi-brand car retail loca- territories which currently have common – they have a fabulous Handbook (ECDH) reported that the tions were deemed unlikely by weaker investors for FCA, and history… So today, I don’t see any number of franchised car retail ICDP managing director, Steve existing PSA initiatives in the parts need, if this deal is concluded, to sites across Europe had declined Young, he expects clearly defined sector will be extended into the remove brands, because they all by 16% in the past decade – with “winners and losers” to emerge FCA brands. have their history and they all have 52,000 dealerships remaining – but from the new automotive giant. “Inevitably, this will bring winners their strengths.” asserted that the reductions made If discussions between PSA and losers, but the resulting dealer by car manufacturers to date were Group and Fiat Chrysler Automo- body should be stronger.” RETAIL RESTRUCTURE? “much less significant than biles (FCA) bear fruit, the result will In its statement issued on October What remains to be seen is whether required to increase network be the world’s fourth-largest 31, FCA and PSA announced its the same strict ratio of sites to sales profitability significantly”. carmaker, with annual revenues of plan to create a single business will be applied in the franchised In his comments on the proposed £145.9 billion, recurring operating under a Dutch parent company, retail sector in an effort to drive FCA/PSA merger, Young suggested profit of more than £9.4bn and listed on the Paris, Milan and New profitability in the UK. that the shared online retail know- combined vehicle sales of 8.7m. York stock markets. FCA Group’s 211 UK retail sites how of the two manufac- In the UK, the new group would Detailing their joint plans to turers could be have achieved 365,888 sales in complete a new automotive manu- brought together to 2018 (market share: 15.5%), almost facturing group owned 50% by PSA drive a new double that of the South Korean shareholders and 50% by FCA omnichannel retail power pairing of Kia and Hyundai’s shareholders, FCA and PSA said strategy. (185,689; market share: 7.8%). the deal could save about Peugeot launched its The volume commanded by the £3.17bn a year without the Order Online platform in new entity would likely give it added need for plant August 2017 and FCA has leverage when negotiating with closures. It experimented with online franchisees. said 80% sales completed via Speaking to AM earlier this Amazon on the Continent. year, Arnaud Leclerc, the Young said: “Greater scale means that this is likely to be h a n d l e d offered faster than would other- 52,885 sales wise be the case.” across the Abarth, Alfa Romeo, Fiat, Jeep and COST SAVINGS Maserati brands in 2018, resulting WITHOUT CLOSURES in 250 new car sales per site. FCA’s manufacturing plants in Italy Vauxhall, which had a much are likely to be more vulnerable to higher sales per site figure of 602 potential cuts than retail networks – 195,137 car sales in 2018 were in the event of the FCA/PSA merger, handled by a network of 324 sites according to market analysts. – restructured its network under The Italian-American carmaker its new owners, PSA Group, in has 27 manufacturing facilities 6 DECEMBER 2019 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] SOURCE: JATO DYNAMICS for vehicles and parts in Italy and overstaffing in underfunded facto- ries running far below capacity is said to be a serious problem.
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