CONFIDENCE IS KEY / P6 Consumer confidence will determine reopening success, says exclusive survey ‘NO WOLF OF WALL STREET’ / P16 At Hills Garages there is no clamour for short-term, cut-throat business www.am-online.com April 2021 £8.00 EVs & EMISSIONS / P41 Dealerships are becoming crucial in a charge towards electricity HOW DEALERS HAVE ADAPTED TO SURVIVE LOCKDOWN LESSONS / P23 adRocket CRS-958_H2 Approved Dealer A4 CAR DEALER Ad.indd 1 15/09/2020 09:23 FP_AM_CRS958H2Apid4525866.pdf 03.10.2021 13:51 EDITOR’S LETTER would imagine you were as pleased as I was to see Boris Johnson set a roadmap out of lockdown. Less than a month from now – provided infection rates continue to drop – vehicle showrooms will be allowed to reopen, plus we’ll be able to have a cuppa outside with a pal or relation after work. The past 12 months have made me appreciate technology more than ever. Since AM shifted to working at home last March, our video meetings, webinars and phone calls have Ihelped Tom and I keep abreast of how you’re overcoming the challenges – adapting to survive, as our cover illustrates. Whereas in normal times we would have been on site, being nosey and asking questions in someone’s dealership or an OEM’s office, every single month. I’ve missed those visits. I’m sick of the sight of Peterborough, to be honest. So, I’ll finish with two toasts: Here’s to WiFi, our saviour in lock- downs. And here’s to face-to-face meetings (no matter whether dealer-customer or AM-dealer) in the spring sunshine. OUR WRITING TEAM Tim Rose Tom Sharpe Editor News and features editor am-online.com APRIL 2021 3 adRocket Are you losing one in four customers? |"|-u|Ѵbm;Τâ;∴u;-0Ѵ;|oo@;ulo|ouCm-m1;|o-uoÜm7om;bm=oÜu ro|;m-Ѵ1-u0Üã;uvâ_o_-à;0;;m|Üum;77oâm0ãrubl;Ѵ;m7;uvΞ "ol;-rrѴb1-m|v-u;;ä1;ѴѴ;m|1u;7b|ubvhv0Ü|7om∴|tÜb|;C|moul-Ѵ Ѵ;m7bm]1omà;momvΞ$_;=-v|κloàbm]r-1;o=u;1;m|;à;m|vl;-m|_-| |_;u;-u;lou;o=|_;v;bm7bàb7Ü-Ѵv|_-m;à;u0;=ou;κ-m7oÜu0;Ѵb;= bv|_-||_;ã7;v;uà;ruo7Ü1|vΤv;uàb1;v|-m7-u7v-m7|;ulv1olr-u-0Ѵ; |o-mãѴ;-7bm]lo|ouCm-m1;ruoàb7;uΞ );_-à;-Y;äb0Ѵ;-rruo-1_|oѴ;m7bm]|_-|Üv;v-1ol0bm-omo=|_; 0;v||;1_moѴo]ã-m7_Ül-mvhbѴѴv|ol;;||_;bum;;7vΞ|l;vâ_;m ãoÜurubl;Ѵ;m7;uv|;rv0-1hΤâ;v|;rbmΞ "_oÜѴ7m∴|ãoÜ1omvb7;ul-hbm]"|-u|Ѵbm;r-u|o=ãoÜuѴ;m7bm]r-m;ѴΡ ;mtÜbub;v←v|-u|Ѵbm;lo|ouCm-m1;Ξ1ol âââΞv|-u|Ѵbm;lo|ouCm-m1;Ξ1ol FP_AM_40159Startid4441573.pdf 12.01.2020 14:34 CONTENTS 16 Hill Garages (Woodford) UP FRONT INSIGHT 06 News insight 16 Face to face: Hill 22 5 minutes with... 55 Success with 08 Garages (Woodford) Matt Wigginton, BEN service plans News digest Husband and wife team The fund-raising director of Innovative service plan 10 Market intelligence head up the aftersales and the BEN speaks to us about suppliers are coming up 15 sales departments of this rebuilding the charity’s with solutions to arrest the Opinion long-established business finances after the challenges decline prompted by the within the M25 posed by the pandemic drop in new car sales TALENT SPOTLIGHT: LOCKDOWN LESSONS 59 People on the move 24 Dealers and 27 Lockdown costs 29 L o c k d o w n 62 Eight questions to... their OEMs vs benefits positives A look at which OEMs The pandemic has obliged Four senior executives Allan Hines, sales offered tangible help to dealers to pay out vast on how they feel their executive at HR Owen dealers throughout the sums. Now it’s time to reap dealerships coped during Lamborghini, London COVID-19 crisis the benefits the three lockdowns SPOTLIGHT: EVs & EMISSIONS SHOWROOM 42 CAFE regulations 48 Alternative fuel vehicles 52 At-a-glance guide Manufacturers are looking at model To successfully adapt to the growing interest rationalisations, reduced trims and increased in AFVs, dealers must ensure their sales to new EVs for 2021 co-operations to comply with clean air targets advisers have all the right answers am-online.com APRIL 2021 5 NEWS INSIGHT CONSUMER CONFIDENCE HOLDS THE KEY IN REOPENING BATTLE Survey shows it’s a major concern for more than half of motor retail’s senior executives onsumer uncertainty Publicity of COVID-19 safety meas- The BoE said in February that months (-64 vs -67); economic situ- is the main hurdle to ures in dealerships will likely help the private savings accounts were up ation over the next 12 months (-30 vs the car retail sector’s market revival, reassuring potential £125bn in 2020, but warned that -44); and big purchases climate (-19 C revival after show- customers that showrooms are safe consumers may not be keen to vs -24). room doors reopen on trading environments. spend the UK economy back to Auto Trader’s online leads data April 12, according to industry leaders. health due to economic uncertainty also indicates rising interest from An exclusive AM survey of the INJECT ‘FEEL-GOOD FACTOR’ and news of redundancies. It more car buyers. The UK’s biggest sector’s chairmen and directors, But Cambria chief executive, Mark suggested 70% of consumers will car marketplace had 58.8 million carried out in partnership with Lavery, told AM that retailers should hold on to the savings they accrued. visits in February – a year-on-year JudgeService YourPoll, showed be emphasising the “feel-good Yet buyer confidence may be increase of 3.6% – and average daily dealers should be marketing the factor” a new vehicle brings. boosted by the UK’s trade deal with users grew 6.8% to 1.4 million. appeal of buying a new car now as “There isn’t much out there right the EU, the extension of Govern- To boost their profile ahead of lock- Lockdown 3 nears its end. now that is going to compare with ment’s Coronavirus Job Retention down’s end, major AM100 dealers Asked what is the most significant the feel-good factor of buying a new Scheme (CJRS) to September and have seemingly turned to television barrier to new car sales, 53.9% of car,” said Lavery. the vaccination programme running and sports events – two of the few respondents – a mix of chief execu- “Television is littered with adverts ahead of schedule. feel-good pastimes available to ‘stay tives, directors and other ‘C-suite’ for foreign holidays but, honestly, not As evidence of this, the UK’s at home’ consumers. leaders – said it is consumer confi- many people will be keen on going monthly Gfk Consumer Confidence Marshall Motor Holdings has been dence, and 50% felt the same abroad in 2021. With the Bank of Index already rose five points to -23 advertising around televised football regarding used car sales. England (BoE) telling us that people in February. The score was the matches, England’s Six Nations rugby And 57.7% said it was the main have managed to save money during highest since March last year, and matches, England cricket matches driver in reduced aftersales the crisis, all we can do is encourage included improvements in four key and sponsoring darts players. through put, despite Government them to come and buy a car, and why sub-indexes: personal finances over Vertu Motors has advertised on TV allowing servicing and maintenance not? It’s just what a lot of people need the next 12 months (4 vs 2 in January); and sponsored Channel 4’s F1 work to continue. to cheer themselves up.” economic situation over the past 12 coverage, plus online retailers Cazoo Almost normal: Lower than normal: Almost normal: Higher than 3.85% 26.92% 11.54% normal: 3.85% QUARTER ONE QUARTER ONE NEW CAR USED CAR PERFORMANCE... PERFORMANCE... LOW EXPECTATIONS SLIGHTLY LOWER IMPACT ON USED CARS Significantly lower Significantly lower than normal (more than normal (more Lower than normal: than 10%): 69.23% than 10%): 57.69% 26.92% 6 APRIL 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] and cinch are getting brand expo- Other: 7.69% Consumer sure in sports sponsorship deals. uncertainty: 53.85% Marshall’s chief executive, Daksh Gupta, said: “We started planning this marketing activity 18 months Showrooms being shut ago, but it has clearly paid dividends – lockdown: 7.69% in lockdown. Together, it’s seen 100 million live viewers exposed to our brand on TV.” New car stock ‘DISMAL NEW PLATE MONTH’ lead times: 7.69% Dealers indicate a market resur- MAJOR OBSTACLES gence is clearly desired. Society of New car stock FACING NEW CAR Motor Manufacturers and Traders availability: 3.85% PERFORMANCE (SMMT) chief executive Mike Hawes CONSUMER UNCERTAINTY warned March will be “a third, Managing social IS BIGGEST OBSTACLE successive dismal new plate month” distancing: 3.85% (see also page 12). The SMMT and National Franchised Dealers Financial business Association (NFDA) have lobbied for constraints: 3.85% early reopening of showrooms. Yet survey respondents placed the restriction behind consumer confi- Customers unwilling to dence in their list of major obstacles. visit showrooms: 11.54% Just 7.69% felt showrooms being shut was a ‘major obstacle’ to new car sales, and 15.4% felt the same regarding used car volumes. the sector’s resurgence to stumble. director of automotive, Sarah Noble, bounce back when England’s show- Many more, 26.9%, said lockdown While 56.7% of respondents to the suggested the supply of vehicles and rooms reopen in April, but he felt it had been a major obstacle to after- survey suggested that Brexit had, parts could be impacted by Brexit would not be as significant as that sales, likely reflecting low car usage ultimately, had no effect on their new and COVID for some time to come.