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New Car Buying NEW CAR BUYING A SMARTER SOLUTION FOR RETAILERS TO INCREASE SALES AND MARGINS ADVERTISEMENT WC_Coverwrap_Oct2018.indd 1 17/10/2018 11:36 INCREASE YOUR SALES AND MARGINS WITH WHAT CAR? SELL MORE CARS NEW CAR BUYING MORE EF FECTIVELY More than 20m people visit Wh at Car? every year to research their next car WITH BRITAIN’S BIGGEST CCARAR BUYINGBUYING GUIDE GUIDE Find out how ou can reach these in-market bu ers with the What Car? New Car Bu ing service. Avoid a race to the Low monthly fee and We encourage more leads To find out how you can sell more cars more effectively lowest price; deals are based cost-per-lead pricing give for you by protecting on What Car?’s Target Price, youa far more cost-effective consumer privacy with which represents a fair price for ROI compared with direct communication VISIT US AT STAND the consumer and the dealer other channels on our platform For more information go to D52 whatcar.com increasemysales or visit us at stand D52 at Automotive Management live WC_Coverwrap_Oct2018.indd 4 16/10/2018 16:22 WC_Coverwrap_Oct2018.indd 3 16/10/2018 16:22 VOLKSWAGEN / P8 New dealer sales model to take effect by 2020 AML / P22 Our 14-page preview of what to expect at this AUTOMOTIVE MANAGEMENT year’s Automotive www.am-online.com November 2018 £8.00 Management Live CITROËN / P56 MD Karl Howkins: ‘We want dealers to see a return’ ‘DON’TTOBY PARTRIDGE – PARTRIDGE OFTAKE HAMPSHIRE / P42 NO FOR AN For more information go to ANSWER’ www.whatcar.com/increasemysales WC_Coverwrap_Oct2018.indd 2 16/10/2018 16:20 adRocket EDITOR’S LETTER e have begun examining 2017 financial results ready for the publication of our AM100 Update in December. Those we have already gathered include some dealer groups who have improved their return- on-sales figures – but there are not many. So far, the toll of 2017’s post-VED-change decline in new car sales is evident. One third of the dealers we looked at reported a drop in turnover. Two thirds had a drop in profits. That tells its own story about the margin and cost pressures of a post-peak car market. WIt does show just how nimble dealer groups need to become, if you’re not already. And it indicates why manufacturers need to allow you to be nimble, and ease off with the six-figure showroom refurbishment demands that come all too frequently. In Volkswagen’s announcement of its sales model restructure (see Page 8), it said its aim is to become more flexible and efficient. Those are characteristics I would expect every franchised network to develop in the future. Experts and business leaders I have personally invited will be discussing some of the most likely future scenarios that will affect our industry in our Vision of the Future strategic seminar, which takes place during Automotive Management Live at Birmingham NEC on November 8. We would love you to join us – find out more about the event, including how to register for free, on Pages 22-40. 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 NOVEMBER 2018 3 FP_AM_3618663id3659066.pdf 16.10.2018 16:32 adRocket CONTENTS 56 Citroën UP FRONT INSIGHT 06 News insight 42 Face to face: 53 10 minutes with... 56 Brand values: 10 News digest Partridge of Wendy Harris Citroën Hampshire CarGurus’ vice-president Although the PSA brand 12 Market intelligence of European sales on why says it has no strategy to Toby Partridge explains his car dealers face a challenge reduce failing points, 20 Opinions focus on corporate sales in establishing where it is open to new dealer since he took on his own leads came from in the partners, says managing DEALER BMW and Mini franchises offline-to-online journey director Karl Howkins MASTERCLASS PREVIEW: 62 Video 22-40 AM’s third one-day trade show is just days away. Read our 14-page TALENT show guide to see why you should Automotive register for FREE at: automotivemanagementlive.co.uk management 75 Is the high street a good November 8, 2018 LIVE source for managers? NEC, Birmingham 76 People on the move 78 Eight questions to... Louise Coates, SHOWROOM project manager, Digital FordStore 68 Paris Motor Show 72 Long-term reports am-online.com NOVEMBER 2018 5 FP_AM_3651591id3661685.pdf 18.10.2018 09:41 NEWS SEND US YOUR NEWS INSIGHT If you have any news stories you’d like to let us know about email us at [email protected] H IMPACT OF BREXIT ON NEW CAR SALES 80 70 DEALERS ‘MUST PLAN 3.00 Brexit referendum, June 2016 60 2.75 50 WE’RE 2.50 FOR 2.25 40 SUPPORTING 2.00 WHATEVER 30 2008/09 recession level FOR NO-DEAL BREXIT’ 1.75 20 DEALERS 1.50 IS AROUND 1.25 THE NEXT 10 1.00 Manufacturers exert pressure for free-trade agreements after (Millions) UK Car Registrations 0.75 CORNER. 2008 recession level March, but retailers still seek clarity on the financial impact 0.50 0.25 0.00 otor retailers have be able to continue what has been season, when there’ll be discus- 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Years been told to a highly successful set of supply sions around contracts and volume UK Car Registrations Soft Brexit No Deal If Brexit never happened Source: Frost & Sullivan prepare for a ‘no chains. We need to have a deal.” aspirations for next year, so I fully M deal’ Brexit as BMW exports 80% of the 218,885 expect Brexit to be on the agenda. supply line uncer- Mini and Rolls-Royce vehicles it “Above all, we need clarification tainties look increasingly likely makes in the UK each year, while with regards to what manufac- ‘We are facing Armageddon’ NEW CAR Among manufacturers’ impact following Britain’s planned depar- JLR exports 80% of its 532,107 and turer expectations are going to be Not everyone is so sanguine about mitigation strategies have been the ture from the EU in March 2019. Toyota 90% of its 122,885. in 2019. Irrespective of the Brexit the outcome of a ‘no deal’ Brexit, SALES stockpiling of vehicles and parts in Sue Robinson, director of the But even as manufacturers take deal, the SMMT is predicting however. storage facilities on each side of National Franchised Dealers to the airwaves in their attempts volumes down by 2% to 3%, but Brian Gilda, the chairman of VOLUMES the border, he said, adding: “Manu- Association (NFDA) said while the to safeguard free-trade agree- until we have meaningful discus- Peoples Ford, and chair of the Ford facturers will also be looking to lack of a free trade agreement and ments, support and advice for sions with our manufacturer Europe Product Panel, warned the WILL different ports to bring vehicles the imposition of a 10% tariff on their retail networks appears less partners we can’t make any plans.” motor industry in the UK was DECLINE into the UK because Dover, in imports was the association’s than forthcoming. Despite the impact of the Brexit “staring over a cliff edge”. particular, is expected to become At Black Horse we “least favourite outcome”, it was The Society of Motor Manufac- vote on both currency and He said: “Unless the Government WHATEVER extremely congested.” As industry regulation consumer confidence, Tordoff said have a range of “important that members include turers and Traders calculated that gets a fix on Brexit, an agreement and customer trends a ‘no deal’ scenario in their future £1,500 could be added to the price sales had remained buoyant at which doesn’t impose unaccep- THE Who will pay the price? tools to help you contingency plans”. of the average EU-built car if ‘no JCT600 since June 2016. table tariffs and cross-border OUTCOME Singh said it was impossible to continue to change, meet the latest FCA Much of the talk during recent deal’ results in the adoption of The Gfk consumer confidence trading constraints, the UK motor foresee a scenario where car we’re here to help. requirements. With Brexit negotiations between Britain World Trade Organisation (WTO) index fell from -1 to -12 in the industry is facing Armageddon. OF [BREXIT] manufacturers would expect their Discover more at: dedicated account and the EU centred on car manu- rules. As a result, many retailers month immediately after the Brexit This is a huge industry in the UK franchised partners to bear the facturing, with no mention of the will be asking for clarification of the vote and remained at -9 in and Brexit has the potential to do NEGOTIATIONS impact of the £1,500 WTO tariff if blackhorse.co.uk/ managers we can impact on franchised dealers, impact on their businesses. September 2018, but Tordoff said untold damage to it.” Britain left the EU without a deal in abetterway help you create a which contribute more than John Tordoff, chief executive of JCT600 had continued to be Gilda’s concerns are echoed by SARWANT SINGH, March, however. transparent experience £15 billion to the UK economy and JCT600, said he had received no “overrun with customer enquiries”. the RMI, which has called on the FROST & SULLIVAN He said: “With the margins made and deliver great employ more than 621,000 people. support or guidance from manu- He added: “Take yourself back Government for certainty on Brexit in the sector, I do not see how that customer outcomes.
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