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FP_AM_Advert1605id3486601.pdf 16.05.2018 15:56 EDITOR’S LETTER

he label ‘Made in Germany’ has long been regarded as a stamp of quality, given the country’s reputation for engineering and attention to detail. However, it seems that ‘Decided by Germany’ is becoming a painful reality for some UK franchised dealers. BMW has received a public thrashing during an inquest into a fatal car crash in the early hours of Christmas Day, 2016. Woking Coroner’s Court heard that the crash occurred after Narayan Gurung, a former Gurkha in his 60s, swerved to avoid an unlit BMW, which had broken down on a major road. T It emerged at the inquest that BMW had known about an electrical fault that caused some cars to stall and lose their lights since 2011. It had recalled vehicles in some other countries, but not in the UK. Shamefully, it did not recall them until after Gurung’s death. Even then, it recalled 36,410 cars, fewer than 10% of the number the DVSA asked for. BMW UK was unable to explain the delay at the inquest, except to say that recall “decisions are made in Germany” and the fault was not considered “critical”. Wasn’t this first phrase something we heard at the height of the Group emissions scandal, too? At the time, I learned dealers and VW Group UK staff were warned of “career-limiting actions” in case they spoke out of turn and without the sign-off from HQ in Germany. After BMW’s bad press this month, its recall has just been extended by 312,000 UK cars aged seven to 11 years old. That’s up to 2,136 vehicles for every BMW workshop, in a network where many franchisees made little money in 2017. Let’s hope Germany properly supports our franchised dealers in clearing up another mess.

MEET THE TEAM

Tim Rose Tom Sharpe Stephen Briers Jeremy Bennett Editor News and Editor-in-chief Head of digital/ features editor associate editor

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FP_AM_20426Contiid3473972.pdf 03.05.2018 14:51 CONTENTS

34 UP FRONT INSIGHT

6 News insight 24 Face to face: 31 5 minutes with... 34 Brand values: 10 Hepworth Alistair Horsburgh Subaru News digest Motors Group 14 The chief executive of Better availability is helping Market intelligence MD Stephen Brighton CitNOW on the growth of to improve on 2017’s low 20 Opinions wants to grow, but not at video and imaging and why volumes and NFDA scores, the expense of his staff VR has been overplayed says MD Chris Graham TALENT SPOTLIGHT: THE DIGITAL DEALER

62 Replace or re-train 42 Digital tools for 45 Online benefits 49 Technology to staff for online skills? new car sales in aftersales drive used sales 63 People on the move The communication and Innovations that improve From valuations to vehicle F&I technology to help revenues and retention tracking, apps can boost 66 AM Digitech drive new car sales in the service department your pre-owned profits conference 70 Eight questions to... Phil Regan, head SHOWROOM of digital product marketing, Vertu 54 Mercedes-Benz A-Class 58 Long-term report am-online.com JUNE 2018 5 NEWS INSIGHT

TOUGH NEW MOT RULES MAY BOOST WORKSHOP VOLUMES

Severe penalties for vehicles ruled unsafe by new MOT may give franchised dealers greater retention and upsell opportunities as more motorists avail of pre-test vehicle health checks

fear of MOT failures Any motorist found to have left a keep close tabs on their vehicle’s director of Brayley Cars, said under strict new test centre in their vehicle following health and legality. franchised dealers offering superior rules from the identification of such faults will face Martin Riddell, account director at service levels to independents could A Vehicle and Operator a £2,500 fine and six penalty points Coachworks Consulting, said: see them attract customers under Services Agency on their driving licence. “Dealers should have already the new rules. (VOSA) may deliver more motorists Among the faults that trigger an started to communicate with their He said: “We carry out a visual into franchised dealers’ workshops. instant fail are a faulty or missing customers to make them aware of inspection of every vehicle that Under the new legislation, intro- diesel particulate filter and the the changes and why they are better comes in for an MOT and our duced on May 20, vehicle faults installation of high-discharge qualified than anyone else to technicians are manufacturer- categorised as ‘major’ or ‘dangerous’ headlight bulbs. undertake the work and make any trained to spot anything that might in a new three-tier test will make it The threat of such severe penalties subsequent repairs on vehicles with be wearing or not quite right. illegal for a motorist to drive away in may lead to more motorists taking ‘dangerous’ or ‘major’ fails under the “Should a customer want any their vehicle – even if it has time to advantage of vehicle health checks new system.” remedial work carried out, they run on its existing MOT certificate. (VHC) from franchised dealers, to Paul Brayley, the managing know that we can bring it right up to

6 JUNE 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]

TREATED DVSA INQUIRY & MANUFACTURER RECALLS RIGHT, THE The Driver and Vehicle that concluded certain models MOT IS A VERY Standards Agency (DVSA) has could stall without warning. begun an investigation into BMW 1 Series, the 3 Series, GOOD RETENTION TOOL Vauxhall’s handling of fires in the Z4 and its X1 petrol and its Zafira B people-carriers in a diesel models made between AND IT’S SOMETHING month that also saw BMW March 2007 and August 2011 and Volkswagen announce are affected by the recall, which MORE FRANCHISED safety recalls. follows the recall of 36,410 Reports suggest more than petrol cars last year. RETAILERS SHOULD BE 300 Zafira cars have caught fire An investigation by the BBC’s WORKING TO PROMOTE in recent years and the DVSA Watchdog programme said has confirmed to the House of BMW had now recognised there PAUL BRAYLEY, BRAYLEY CARS Commons transport select may have been similar committee that it is working problems in cars not covered on the case with Trading by the first recall, which came standard with manufacturer- However, he added: “Dealers have Standards officers in Luton. after the death of Narayan approved parts, something that to be very careful that they don’t A report by the committee Gurung, who was travelling could hold even greater value under use them as overt upselling found Vauxhall was slow to with his wife on Christmas Day the new rules. opportunities. begin a full investigation into in 2016 when their Ford Fiesta “Treated right, the MOT is a very “The Department for Transport the fires and acted prematurely crashed into a tree to avoid a good retention tool and it’s certainly does not allow dealers to conduct by attributing them to improper broken-down BMW in something that more franchised vehicle health checks during an repairs by third parties. Guildford, Surrey. retailers should be working hard MOT test because it should not be Andy Rice, the DVSA’s In the same week as BMW’s to promote.” used as a selling tool. Those caught head of counter-fraud and recall, The Volkswagen Group doing so can be penalised with investigations, told the Press urged motorists to not use the The MOT as retention tool points added to their MOT licence. Association: “We have made it rear-left seatbelt on the Polo The results of the National “However, VHCs can be conducted clear to manufacturers that to and on two Seat vehicles after Franchised Dealers Association before or after an MOT test. If protect consumers, they should Finnish magazine Tekniikan (NFDA) Spring 2018 Consumer dealers adhere to this, then they swiftly rectify problems and Maailma found they could Attitude Survey illustrate that have a valuable opportunity to sell meet their obligations under unexpectedly unfasten. consumers trust franchised dealers red and amber work. Dealers do the code of practice.” The manufacturer has issued more with their cars, but price have a duty of care to customers to Days after the DVSA’s a recall for 12,000 new perception remains an issue. perform VHCs on all cars on their announcement, BMW issued a Volkswagen Polo, Seat Arona The survey of 1,000 consumers, ramps, but we advise them to recall for 312,000 cars in the and Seat Ibiza models, carried out by Public Knowledge, adhere by the rules.” UK, following an investigation according to The Mirror. found franchised dealers ranked Among the changes to the MOT highest for reliability, scoring 36%, testing, a number of other changes compared with 24% for an inde- are being introduced, including: WE HAVE MADE IT CLEAR TO pendent garage and 25% for a ■ All vehicles will be checked national chain. Franchised dealers for fluid leaks, which pose an MANUFACTURERS THAT TO scored 46% for reputable service, environmental risk. compared with 19% and 24% for the ■ Vehicles first registered from PROTECT CONSUMERS, THEY other providers, respectively. September 1, 2009, must have The scores are reversed on value working reversing lights and SHOULD SWIFTLY RECTIFY PROBLEMS for money, however, with 42% of headlight washers. ANDY RICE, DVSA respondents considering independ- ■ Tyres will be examined for ents as “good value for money” obvious under-inflation. compared with just 23% for fran- ■ New checks will be made on prop chised dealers. VHCs may offer an shafts, rear-drive shafts and the those customers rather than lose one or two MOT lanes. Those lanes advantage in foreseeing issues that security and condition of bumpers. them to independents and the fast- have to be financially viable. could lead to an MOT fail, reassuring Riddell said the new, more fit centres. “Per MOT lane, eight to 10 MOTs the customer that they will not be left onerous test regime may affect the “That’s where added-value items each day are typically possible, without transport, but retention will financial viability of MOTs for some such as a free car wash and VHC but even with a full-price MOT, the rely on good value, too. franchised dealers, leading to can make all the difference.” MOT facility does not compare well Riddell warned there is another greater outsourcing of the service Nathan Tomlinson, the dealer to a service ramp’s return, where potential barrier to the VHC and to specialist providers. principal at Devonshire Motors, the same space (or less) could be maintenance upsell, designed to He said: “What we don’t know is which won the 2018 AM Award for utilised instead.” ensure that the opportunity how long the new test will take, Best Aftersales Performance, said Tomlinson said the requirement presented by MOTs is not abused. because there are more checks recent growth in the UK’s car parc for customer retention means the Riddell said: “MOTs cost £54.85, involved, and how this will impact has left many franchised dealers’ MOT facility will always have a very so dealers need to treat the charge workshop time. aftersales facilities short of space, important place, regardless of as a subsidised labour rate, which “However, dealers are incredibly leading them to question the value financial return, but added: “Where can often generate additional work, adaptable and will take any of MOTs. space is limited, care has to be taken through faults and advisories, sold increases on the chin because they He said: “Space is limited, and to get the balance right.” at the full retail rate.” know how important it is to retain many sites can only make room for TOM SHARPE am-online.com JUNE 2018 7 NEWS INSIGHT NOW VAUXHALL SITES SAVED FROM ADMINISTRATION PSA-owned Go Vauxhall adds four Greater London outlets and Eden takes on Swindon site

ow Motor Retailing became the most Administrators praised Jon Taylor, Now Motor Retailing’s managing director high-profile casualty N to date of Vauxhall’s retail network restructure when its five Vauxhall dealerships were rescued from administration by PSA’s dealer group, Go Motor Retailing, and Eden Motor Group. The deal added Kingston, Heathrow, Hayes and Staples Corner to Go’s existing operations, which now total 12 locations, many of them in Greater London. Now Motor Retailing closed its Marlborough Vauxhall dealership at the end of April, with nine jobs lost and the remaining staff relocated to its Swindon branch, which has been bought by Eden, run by Graeme Potts. Eden Vauxhall now operates 14 Vauxhall franchised outlets across WE ARE CONFIDENT WITH THE NEW Palfrey added: “It is a matter of the south-west. public record that the retail motor The acquisition came days after STRATEGIC DIRECTION OF THE VAUXHALL sector is going through another ’ announcement that it BRAND TO INCREASE OUR VOLUMES, testing time, with market forces would close its Vauxhall dealerships outside the control of single brand in Yardley and Warrington after the CUSTOMER SATISFACTION AND PROFITABILITY and multi-brand dealerships, car brand issued its entire network JAMES WESTON, PEUGEOT CITROËN RETAIL GROUP however well run they are.” He with a two-year notice of cancella- added that Now Motor Retailing was tion which began on April 30. as Go Vauxhall, is headed by James a core strategic market and we are very profitable until the end of 2016. A statement issued by Lookers Weston and Simon Lawrence, confident with the new strategic He paid tribute to managing said: “This decision has been made respectively chief executive and direction of the Vauxhall brand to director Jon Taylor and finance in light of the well-publicised finance and group strategy director increase our volumes, customer director David Challis, who both intention of Vauxhall to reduce the at Peugeot Citroën Retail Group, satisfaction and profitability.” formed the company in 2006, for size of its dealer network in the UK. which trades as Robins & Day. The manufacturer-owned dealer providing the Smith & Williamson “We can confirm there are no plans Weston said: “Our Q1 results across group now operates 41 dealerships team with “exceptional” support. to close any other Lookers Vauxhall Go Vauxhall and Robins & Day have nationwide with a current total of 27 Palfrey said it was too early to state branches and we will continue to been promising and we have been Peugeot, 14 Citroën, seven DS and 12 what money is owed to unsecured work in a successful partnership with able to maximise the opportunity Vauxhall franchises and a 2017 turn- creditors. It is understood that Vauxhall at all other sites.” from the four PSA brands to further over of £885 million, which would Taylor’s dealerships continue to AM approached Now Motor improve our commercial results and place it 15th in the AM100 rankings of trade under a different company. Retailing last month following ability to expand. the UK’s largest franchised dealers. Now Motor Retailing acquired the suggestions that it was in financial “Our relationship with Vauxhall has Now Motor Retailing’s Surrey Swindon and Marlborough difficulties and up for sale, but it just begun, yet we can already see headquarters is being sold to a third dealerships – two former Skurrays declined to comment. the opportunity with the brand and party, said administrator Greg Vauxhall sites – in January 2016. However, administrators Smith & the model range, especially the new Palfrey, the national head of restruc- A retail sales operation at Addle- Williamson later confirmed that it Grandland X, which has opened a turing and recovery services at stone was relocated to Now Motor “experienced financial difficulties further channel in the important Smith & Williamson. Retailing’s West Byfleet site in 2016. due to a tough marketplace” and SUV sector. He said the buyers of the five deal- A site run by the company at Abbot they were called upon to seek buyers “The addition of the four Now erships helped to save many of the Close, West Byfleet, near Walton- “in a tight timeframe”. Vauxhall businesses will increase 250 jobs depending on a successful upon-Thames, subsequently closed. Go Motor Retailing, which trades our ability to represent the brand in outcome for Now Motor Retailing. TIM ROSE

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FP_AM_761245Blueid3459070.pdf 23.04.2018 09:23 NEWS DIGEST ADVERTISING FEATURE THIS MONTH’S NEWS HIGHLI Ten years in APR JD CLASSICS DID ACT AS SALES AGENT, HIGH COURT FINDS 23rd A High Court hearing found that the owner of JD Classics, the making Derek , below, did act as an agent for a collector who claims to have “suffered catastrophic losses” during the trading of 41 By Alistair Horsburgh, CEO, CitNOW vehicles. Hood had denied acting as an agent for businessman Mike Tuke, who is attempting to sue the Essex-based operation Did you know that by 2021, it would for about £9 million. take you more than five million years to the amount of video crossing global networks each month and a million minutes of video content will cross the network every second (Cisco, 2017). Sure, a good deal of that content will be social, but it represents something bigger – a fundamental shift in our psyche has occurred. We are largely choosing to watch rather than read. It’s not just personal, it’s business too. Nine out of 10 customers used product videos to help them make a purchase decision (Forbes, 2017). FIRST BMW STORE From an automotive retail perspective, the case HAS ROBOT ON STAFF for video is powerful. In our Vision Report, we Stephen James BMW found the vast majority of car-buyers welcomed a opened the UK’s first ‘BMW personalised video and felt more confident with Store’ at Kent’s Bluewater shopping centre. The new their decisions after receiving one. facility is staffed by eight When we first set out on our journey 10 years product geniuses and a ago to solve one challenge – how to allow people robot called “Pepper”. to view cars without visiting car showrooms. We may have helped shape the industry, but it’s still young, fast-paced and full of potential. That means 26th FALLING SALES MAY SPUR CARMAKERS TO SHUT MORE DEALERSHIPS – SMMT we need to keep innovating so our app-based Failing registrations could trigger a more video solutions continue to meet the needs of widespread reduction in the UK’s car retailers and manufacturers. dealership numbers by manufacturers, If you are in any doubt how far the automotive according to SMMT chief executive Mike video industry has come over the past decade, Hawes, left. Speaking to AM at the CV Show, consider this. We started with one customer in the Hawes said carmakers would “obviously look at [the] number of retail outlets”. UK, BMW. Now more than 93 of the AM100 and 42 car manufacturers use our video apps, many around the world. BURROWS EXITS HYUNDAI WITH READ DONCASTER SALE It may take over five million years to watch all Burrows Motor Company completed its withdrawal from the the video we mentioned earlier, but two minutes of 27th Hyundai franchise with the sale of its Doncaster dealership to the video will help a customer reach a decision on the Read Motor Group. The deal came two months after acquired the Burrows’ Hyundai and Fiat franchises car they are considering or give the go-ahead to in Sheffield. service work required. Video has become a vital communication tool that no business can afford to be without.

Contact details: Tel: +44 (0)118 997 7740 Email: [email protected] Twitter: @CitNOW For news and tips on MAY STARTIN GROUP BUYS HYLTON’S LAST DEALERSHIP Startin Group bought St Peters Peugeot and Suzuki from selling more cars and Hylton Group, completing the disposal of Hylton’s last trading parts more profitably, dealership. Motorline had previously acquired Hylton’s former subscribe to CitNOW’s 2nd Nissan and Renault site in Worcester, which will be redeveloped newsletter at citnow.co.uk as a Hyundai dealership.

10 JUNE 2018 am-online.com IN DETAIL ADVERTISING FEATURE HLIGHTS To view the full story go to am-online.co.uk/news Seven reasons AVERAGE DEALER PROFITS FELL 2nd 6.7% IN MARCH, SAYS ASE The average UK dealer made a profit of to trust iVendi £106,771 in March, down £7,700, or 6.7%, on March 2016, according to ASE. Mike Jones, on security the chairman of ASE, left, said: “This looks to stem back to the poor weather at the start of By James Tew, CEO, iVendi March, with many businesses not recovering the lost hours in the workshop.” Data security is becoming a bigger issue for everyone in online motor retail. The subject is raised more and TURNOVER AND PROFITS £ 8th more often, with increasingly detailed FALL AT CAMBRIA responses expected from suppliers. Cambria Automobiles reported At iVendi, we have codified our interim revenues of £295.1m, down 4.5% year-on-year, and underlying 4.8M security measures into a seven-point pre-tax profits down 14.3% to charter. Some of it is quite technical, but show it to your £4.8m in the six months to February 28. The group is currently IT people and we are sure they will be impressed: adding more luxury brands to its volume portfolio. 1. Our policy of using managed detection and response (MDR) goes far beyond typical network and data monitoring. We review our systems at all times, PRE-TAX PROFIT DOWN 9.2% AT VERTU 9th Robert Forrester, the chief executive of detecting and neutralising potential threats. Vertu Motors, right, insisted he is not under 2. We use multiple DNS providers. This protects us pressure to deliver growth after reporting from large scale DDOS attempts from locations such declines of 0.9% in turnover and 9.2% in as Eastern Europe and North Korea. profits in the group’s annual results to 3. DNS load balancing is used for critical services to February 28. Turnover fell to £2.796 billion provide resilience, head off redundancy and deal with (2017: £2.823bn), with adjusted profit before usage spikes. We split traffic between our data centre tax down to £28.6m (2017: £31.5m). and the cloud to ensure more than 99.99% uptime. 4. Our Network Operations Centre identifies any PARK’S ADDS SECOND MCLAREN SITE, IN LEEDS 10th performance degradation or service unavailability in Park’s Motor Group announced the addition of a second an instant, allowing immediate response. McLaren Automotive franchise with the news that the brand will 5. We take data security and GDPR regulations very expand its UK network with a site in Leeds. The facility, on Aire seriously, as you would expect. Our strategies are Valley Drive, is the eighth UK location for the manufacturer. Park’s also operates McLaren Glasgow. designed to meet their requirements head-on, including holding ISO 27001. 6. We conduct annual penetration tests, designed to test our resilience to malicious attack or other serious issues. Our most recent was December 2017 and we passed with flying colours. 7. As an essential supplier to a number of large clients we offer a premium 24/7 application support regime, demonstrating a level of support and infrastructure unrivalled in online motor retail. n iVendi is the international market leader in online motor retailing solutions, working with everyone from dealers and manufacturers to car WAYLANDS BUYS portals and motor finance providers. Visit VOLVO NEWBURY SITE www.ivendi.com, email [email protected], John O’Hanlon, the or call 0345 226 0503 former chief executive of Ridgeway, has doubled the size of his new dealer venture, Waylands Automotive, with the acquisition of Volvo dealer Fawcetts Garage in Newbury. O’Hanlon said he was excited to “add to our fledgling business”.

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Q1 SEGMENT ANALYSIS ‘DIESELS DOWN, SUVS SOAR’ FAILS TO TELL THE FULL TALE Air quality concerns are not hitting all models equally and other segments face an earlier death

f pressed, most people would prob- clearly a , but there are plenty of models ably identify two current trends in THE BIG STORY IS close to the dividing line. The general principle in car sales – a precipitous decline in THE VIRTUAL the industry is that if it started life as a 4x4 it is I diesel sales, and the inexorable rise probably an SUV (e.g. RAV4), and if it started of SUVs and crossovers. ELIMINATION OF life as a tall, two-wheel-drive hatchback (e.g. the Taking the issue of diesel first, the figures for the Nissan Juke) it is probably a crossover. first quarter (overall market down 12.4%, diesel B-SEGMENT MPVS… In total, SUVs and crossovers took 36.5% of the market down 33.3%) seem to speak for total market in Q1 2018. By our definition, that was themselves. One would expect that any manufac- OVERALL SALES FELL BY AN made up of 22.1% SUVs and 14.4% crossovers, but turer which is diesel-heavy is going to be in trouble the precise proportions will vary according to each – hence sales have fallen by 19.9%. ASTONISHING 73% IN Q1 person’s way of looking at the issue. It is easier to However, the truth is not quite so simple. To take say where crossover sales are coming from – Land Rover as an example, if all diesels are engine is the powerful, thirsty 240PS unit. Hence traditional hatchbacks are under pressure and equally unpopular, one would have expected sales buyers are more likely to defect to a competitor small MPVs are being decimated. of everything from an Evoque to a Range Rover to that does have a viable . In contrast, In non-premium B-segment hatchbacks (e.g. have fallen by a similar amount. Yet the Evoque sales of the SUV actually rose by 3.3%, the Ford Fiesta), the decline was not too serious, fell by 42.1% in Q1, but the Range Rover/Range although sales of diesel Kugas fell by 7.9%. The at 13.7% for Q1. However, the big story is the virtual Rover Sport fell by 11.2%. key factor for the Kuga seems to be the availability elimination of B-segment MPVs, such as the now So, what is going on? The critical factor seems of the 1.5-litre Ecoboost petrol. defunct Ford B-Max. Overall sales fell by an to be the availability of a viable petrol alternative. astonishing 73% in the first quarter, with a total of For most people buying an £80,000 SUV, petrol is WHAT COUNTS AS A CROSSOVER? just 3,500 registrations. A couple of B-segment not really a choice (except as part of a hybrid), so MPV models may survive in the UK if sales in they keep buying diesel Range Rovers – at least The second trend – the perceived shift towards other markets justify production, but the sub- for now. However, for buyers of the smaller, lighter crossovers – is harder to argue with, apart from segment looks like it is heading for extinction. Evoque, petrol is – or at least should be – a viable the fact that defining a crossover is not easy. A Sales of non-premium C-segment hatches (e.g. choice. In the case of the Evoque, the only petrol Discovery is clearly an SUV and a Qashqai is the ) fell 18.6% in Q1, with the Vauxhall

QUARTER 1 REGISTRATIONS BY SEGMENT – TOTAL AND DIESEL

CHANGE IN SALES CHANGE IN DIESEL SALES 0%

-10%

-20%

-30%

-40%

-50%

-60%

-70% SEGMENT SEGMENT SEGMENT SEGMENT SEGMENT SEGMENT SEGMENT SEGMENT SEGMENT SEGMENT SEGMENT TOTAL A B C D D2 E F G H I J MARKET -80%

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By Richard Jones, Q1 TOTAL REGISTRATIONS BY SEGMENT managing director, Total Diesel Segment Total YTD Total YTD Total YTD Total YTD I was pleased to read some Mar 2018 Mar 2017 Mar 2018 Mar 2017 positive news recently, A City cars (e.g. Toyota Aygo) 54,763 68,713 38 86 regarding the value of used diesel vehicles. After many negative head- B Superminis (e.g. Ford 200,124 23,7511 16,800 37,264 Fiesta, Nissan Juke) lines about sales of new diesels – a trend likely caused by concerns over their future C Lower Medium (e.g. VW 202,803 223,194 65,674 108,143 Golf, Nissan Qashqai) value – it made a welcome change to see reference to stabilisation and resilience. We D Upper Medium (e.g. 18,910 21,896 13,501 19,195 Vauxhall Insignia) even saw reports that used diesels had shown a modest increase in value, of 3%, D2 Compact Executive 27,561 35,587 12,025 24,654 (e.g. A4) which is pleasing against the backdrop of the ongoing drop in sales of new diesel E Executive (e.g. Jaguar XF) 22,173 23,492 17,263 21,966 cars during Q2. F Luxury (e.g. 3,391 4,154 1,491 1,912 Despite this though, there is undoubtedly Mercedes-Benz S-Class) still confusion from car buyers regarding G Small Sports (e.g. Toyota 6,498 7,096 254 905 GT86) diesels and a misinformed view that all diesels are bad, thus driving down sales of H Luxury Sports (e.g. Jaguar 4,741 4,873 779 932 F-Type) new cars. I remain firmly of the view that the I SUV (e.g. BMW X3, Jaguar 158,077 165,277 98,552 123,452 F-Pace) industry must make a more collective effort to educate customers in their fuel options J MPV (e.g. ) 9,449 14,143 7,155 11,166 – specifically that the key consideration is Total market 718,489 820,016 240,614 360,518 not diesel versus petrol but new technology versus old technology. I was discussing with my team recently Astra down a remarkable 47.1%. C-segment concept of a D-segment car is now at risk – only MPVs (e.g. the VW Touran) fell by 37.1%, and it VW can justify the cost on current European that Euro 6 diesel engines are not charged seems unlikely that a single C-segment MPV sales volumes. Other manufacturers probably in London’s Low Emission Zone because will end the year with sales of even 10,000 need to sell a closely related car in China to they meet the required standards when it units. It is hard to see how many of the current make the numbers add up. comes to pollution. This is just one example models can be replaced given those volumes, of the benefits of the latest fuel technology, and the segment may revert to where it THE BIGGER THE SUV, THE BIGGER THE SALES started – small “ with windows”, such as but I question how many car buyers would the Citroën Berlingo and Ford Tourneo. So to the segment that is busily eating every be aware of this. My sense is that there In the D segment, the big news is what is else’s lunch: SUVs. The interesting thing is that, remains a misconception that all diesels happening to the . Once the domi- broadly speaking, the bigger the SUV, the would be subject to the charge, which is of nant car in its segment, the Mondeo has fallen better in terms of sales. Small SUVs such as to fourth place behind the Škoda Superb, the RAV4 were down by 13.8% in Q1, large course fundamentally wrong. selling just 2,500 units in Q1. When the Superb SUVs like the Hyundai Santa Fe or Getting older, more polluting vehicles off was launched in 2001, you would have got were marginally up by 0.7%, and luxury SUVs the road and getting people driving newer longer odds on it overtaking the Mondeo than like the BMW X6 were up by 5.2%. cars – whether petrol, diesel or indeed AFVs on Leicester winning the Premiership. Indeed, It seems buyers of expensive SUVs regard with Ford announcing that the Mondeo’s Amer- diesel’s reputation as a problem for other – is a more effective route to addressing ican twin, the Fusion, will not be replaced, and people. Perhaps when you drive a 2.2-tonne concerns over emissions than a simplified suppliers saying they have been told that Euro- SUV, you are so used to social disapproval that petrol/diesel choice. pean Mondeo production will end around 2020, a few stories about air quality are like water off Changing consumer perceptions on this the current Mondeo may be the last. That truly a duck’s back. It will be fascinating to see matter may well take time, but I believe all would be the end of an era – Ford invented the whether the new Jaguar I-Pace electric SUV D segment with the Cortina in 1962. It has made (or crossover if you prefer) transforms the atti- of us in the industry – including lenders such the UK’s best-selling large family car for tudes of such people. After all, they may not as ourselves – should take responsibility for decades – indeed for many years the Cortina care about public opinion, but they generally making it happen. was the UK’s best-selling car overall. The very care about . DAVID FRANCIS

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NEW CAR REGISTRATIONS

April Year-to-date VED dip in 2017 gives Marque 2018 % market 2017 % market % 2018 % market 2017 % market % April volumes a lift share share change share share change 1 Ford 20,114 11.98 16,183 10.64 24.29 102,071 11.52 120,707 12.42 -15.44 April’s new car sales were up by 10.4% year- 14,607 8.70 9,954 6.55 72,065 8.13 69,732 7.17 on-year after the slump in April 2017 caused 2 Volkswagen 46.75 3.35 by customers keen to beat a looming rise in Audi 13,135 7.82 13,094 8.61 0.31 61,050 6.89 60,874 6.26 0.29 VED by buying in March. Mercedes-Benz 11,854 7.06 13,345 8.78 -11.17 63,027 7.11 68,182 7.01 -7.56 The month’s registrations ended at 167,911 units. Of those, 75,607 were in the private Vauxhall 11,214 6.68 10,732 7.06 4.49 65,749 7.42 77,465 7.97 -15.12 market, a 26.3% year-on-year uplift, and 3 BMW 9,078 5.41 11,277 7.42 -19.50 56,471 6.37 60,758 6.25 -7.06 87,486 were in fleet, only a 0.9% gain. Business car purchases were down 12.9%, at Nissan 7,448 4.44 8,041 5.29 -7.37 42,242 4.77 61,391 6.32 -31.19 4,818 units. Hyundai 6,987 4.16 6,958 4.58 0.42 34,991 3.95 34,814 3.58 0.51 After four months of sales, 2018 remains Kia 6,872 4.09 6,291 4.14 9.24 35,623 4.02 35,996 3.70 -1.04 8.8%, or 85,692, new cars behind the same period in 2017, at 886,400 registrations. Toyota 6,713 4.00 5,113 3.36 31.29 39,928 4.50 40,152 4.13 -0.56 Even despite the boost, April’s market Peugeot 6,225 3.71 5,405 3.55 15.17 30,868 3.48 33,798 3.48 -8.67 remains behind 2016, when new car sales totalled 189,505 units, and there had been Škoda 6,216 3.70 6,011 3.95 3.41 27,827 3.14 28,333 2.91 -1.79 961,285 sales since the start of the year. Seat 5,315 3.17 3,926 2.58 35.38 23,705 2.67 20,708 2.13 14.47 In April 2018 demand for petrol cars grew by 5,027 2.99 4,116 2.71 28,842 3.25 33,855 3.48 38.5%, while diesel registrations continued the Land Rover 22.13 -14.81 recent trend, declining by 24.9%. Renault 4,462 2.66 4,074 2.68 9.52 24,066 2.72 29,200 3.00 -17.58 Registrations of plug-in and hybrid electric Citroën 4,024 2.40 2,789 1.83 44.28 18,695 2.11 21,136 2.17 -11.55 cars continued to rise, up 49.3%, thanks to manufacturer investment in a growing choice 3,846 2.29 3,734 2.46 3.00 20,855 2.35 21,001 2.16 -0.70 of models, but these still account for just 5.6% Volvo 3,782 2.25 2,735 1.80 38.28 15,439 1.74 16,317 1.68 -5.38 of the market. Honda 3,089 1.84 3,016 1.98 2.42 21,226 2.39 20,787 2.14 2.11 Jaguar 2,414 1.44 1,732 1.14 39.38 12,123 1.37 14,866 1.53 -18.45 1 FORD The market leader notched up a 24% Fiat 2,166 1.29 1,981 1.30 9.34 13,710 1.55 19,558 2.01 -29.90 rise in registrations in April – 3,931 extra Suzuki 2,121 1.26 1,658 1.09 27.93 13,444 1.52 15,609 1.61 -13.87 cars. Two in three of the incremental 1,919 1.14 1,397 0.92 9,101 1.03 9,603 0.99 sales were the new Fiesta, launched last Dacia 37.37 -5.23 summer. Ford sold 7,811 Fiestas, 2,854 Mazda 1,673 1.00 1,690 1.11 -1.01 15,845 1.79 16,859 1.73 -6.01 more than April 2017’s 4,957 and almost 1,646 0.98 1,240 0.82 5,720 0.65 4,977 0.51 on par with April 2016’s 7,913. 32.74 14.93 Mitsubishi 1,189 0.71 1,309 0.86 -9.17 7,186 0.81 6,413 0.66 12.05 MG 829 0.49 219 0.14 278.54 2,604 0.29 1,284 0.13 102.80 678 0.40 672 0.44 0.89 4,751 0.54 4,566 0.47 4.05 DS 529 0.32 416 0.27 27.16 2,637 0.30 3,627 0.37 -27.30 495 0.29 965 0.63 -48.70 2,562 0.29 4,182 0.43 -38.74 Jeep 477 0.28 364 0.24 31.04 2,205 0.25 3,126 0.32 -29.46 Abarth 358 0.21 213 0.14 68.08 1,885 0.21 1,514 0.16 24.50 2 VOLKSWAGEN Alfa Romeo 304 0.18 265 0.17 14.72 1,762 0.20 1,984 0.20 -11.19 A 47% climb was thanks largely to rising Subaru 153 0.09 123 0.08 24.39 1,131 0.13 1,055 0.11 7.20 Golf and Tiguan sales. The Golf dominates the C segment, and was SsangYong 151 0.09 282 0.19 -46.45 1,016 0.11 1,641 0.17 -38.09 April’s second-best-selling car, behind 107 0.06 104 0.07 2.88 517 0.06 685 0.07 -24.53 the Fiesta. The Golf’s 5,482 registrations in April pushed its YTD volume to 26,685, 103 0.06 109 0.07 -5.50 539 0.06 749 0.08 -28.04 7,341 units ahead of its nearest rival in 96 0.06 77 0.05 24.68 443 0.05 722 0.07 -38.64 the segment, the Ford Focus. Infiniti 72 0.04 118 0.08 -38.98 385 0.04 1,403 0.14 -72.56 McLaren 55 0.03 9 0.01 511.11 268 0.03 146 0.02 83.56

3 BMW Lotus 32 0.02 29 0.02 10.34 92 0.01 117 0.01 -21.37 Down almost 20%, or 2,199 units this Chevrolet 3 0.00 13 0.01 -76.92 20 0.00 31 0.00 -35.48 April, BMW was one of the few brands in April 2017 to be ahead of where it was in Other British 73 0.04 70 0.05 4.29 235 0.03 245 0.03 -4.08 2016, when its 1 Series was even Other imports 260 0.15 227 0.15 14.54 1,479 0.17 1,924 0.20 -23.13 present in the month’s 10 best-sellers. Total 167,911 152,076 10.41 886,400 972,092 -8.82

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FINANCE OFFERS

TOP FINANCE DEALS FOR RETAIL BUYERS Growth in 0% Model Finance Deposit Term Monthly Final APR Offer ends type payment payment offers may Top 10 most affordable by monthly payment Dacia Sandero Access SCe 76 PCP 1,367.00 36 89.00 2,781.00 4.90% 09/07/2018 Suzuki Celerio SZ2 5dr PCP 1,740.00 48 89.00 2,465.00 5.90% 30/06/2018 have helped Ford Ka+ Zetec 1.2 VCT 85PS PCP 3,579.00 24 99.00 5,145.00 0.00% 30/06/2018 Dacia Logan MCV Access SCe 75 PCP 2,282.00 36 99.00 3,361.00 4.90% 09/07/2018 April rebound Citroën C1 VTi 68 manual 3dr Feel PCP 2,672.51 36 109.00 3,988.00 2.90% 30/06/2018 Dacia Sandero Stepway Ambiance TCe 90 PCP 2,521.00 36 109.00 3,680.00 4.90% 09/07/2018

hile April’s 10.4% increase in new car Volkswagen Take up! 1.0 60PS 3dr PCP 2,794.10 48 109.00 2,593.80 6.60% 01/07/2018 registrations can be partly explained Hyundai i10 Go! SE 1.0 PCP 2,129.00 36 122.79 4,527.00 4.90% 30/06/2018 W by comparing it with a bad month in Toyota Aygo x-press 5dr 1.0 VVT-i Manual PCP 2,204.00 42 129.00 4,567.50 0.00% 01/07/2018 2017, it’s possible the strength of offers on the table in Q2 also played a part. Citroën C4 Cactus PureTech 110 S&S manual Feel PCP 5,586.00 36 132.62 6,444.00 4.90% 30/06/2018 There has been a quarter-on-quarter increase Top 10 most affordable by 0% offer and lowest monthly payment in 0% finance offers, from 63 in Q1 up to 69 in Q2 across 15 different franchises. It will be interesting Ford Ka+ Zetec 1.2 VCT 85PS PCP 3,579.00 24 99.00 5,145.00 0.00% 30/06/2018 to see if this level of 0% support continues into the Toyota Aygo x-press 5dr 1.0 VVT-i Manual PCP 2,204.00 42 129.00 4,567.50 0.00% 01/07/2018 second half of the year as Q4 2017 showed a much lower level – 45 offers. Nissan Micra Acenta IG-T 90 with optional metallic paint PCP 4,525.24 36 149.00 6,105.76 0.00% 01/07/2018 There are four cars with monthly payments below MG3 3Form Sport HP 1,755.00 60 149.00 N/A 0.00% 30/06/2018 £100 in the most affordable category this quarter, Vauxhall Insignia Grand Sport Design 1.5 Turbo (165PS) PCP 5,894.00 24 157.21 9,978.00 0.00% 30/04/2018 including the expected value cars such as the Dacia Sandero and Suzuki Celerio. However volume Suzuki Swift 1.0 Boosterjet SZ-T PCP 1,245.00 48 159.00 4,622.00 0.00% 30/06/2018 players Ford are also in there, with the Ka+ Zetec. Citroën C3 PureTech 82 manual Feel PCP 2,549.00 36 159.00 6,547.00 0.00% 30/06/2018 Volkswagen, Citroën and Hyundai also make it into the most affordable category, making the Ford Fiesta Zetec 1.0 Ecoboost 5dr PCP 5,631.00 24 160.00 7,469.00 0% 30/06/2018 price of entry into those brands very accessible. Vauxhall Corsa 5dr Energy 1.4i (75PS) ecoTec (a/c) Lava Red PCP 4,800.00 24 161.38 5,167.00 0.00% 30/04/2018 The number of no-deposit deals has reduced in Q2, down to just four with Smart continuing its Toyota Yaris Icon Tech 5dr 1.5 VVT-i Manual PCP 2,524.00 42 169.00 5,197.50 0.00% 01/07/2018 offer from Q1, but there are seven offers in total Top 10 highest APR rates with a deposit below £500. Renault’s Clio Dynam- Citroën C4 PureTech 110 6-speed manual Platinum PCP 3,932.46 36 379.00 5,896.00 9.90% 30/06/2018 ique Nav 1.2 16V 75 for a £189 deposit and £189 a month is a simple and strong offer, as is the deal Citroën SpaceTourer Flair 2.0 BlueHDi XL 150hp S&S PCP 500.00 36 887.32 16,296.00 9.90% 30/06/2018 on the Captur Dynamique Nav TCe 90 for a £219 Subaru XV 1.6i SE Lineartronic CVT PCP 2,527.00 48 325.00 10,268.00 6.90% 30/06/2018 deposit and £219 a month. When looking at overall affordability, more than 1.6i SE Lineartronic CVT PCP 2,406.50 48 328.00 8,948.00 6.90% 30/06/2018 half (56.4%) the offers AM has recorded for Q2 are Subaru Levorg 1.6i GT Lineartronic CVT PCP 7,364.50 48 349.00 10,484.00 6.90% 30/06/2018 priced below the £300 per month price point (180 deals out of the 319 total). 2.0i XE 6MT PCP 2,663.25 48 368.00 9,700.00 6.90% 30/06/2018 At the other end of the affordability spectrum, Subaru Impreza 2.5i WRX STI Type UK 6MT PCP 5,809.00 48 374.00 13,833.00 6.90% 30/06/2018 there are some brands that stand out for having Subaru BRZ 2.0i SE Lux 6MT PCP 1,724.74 48 399.00 10,555.00 6.90% 30/06/2018 a much higher rate of finance than the rest. Citroën’s C4 and SpaceTourer are both available 2.5i SE Premium Lineartronic CVT PCP 3,312.50 48 447.00 13,025.00 6.90% 30/06/2018 with an offer on 9.9% APR, a three percentage- Range Rover Sport 3.0 SDV6 HSE Auto PCP 12,778.00 36 599.00 40,935.00 6.90% 30/06/2021 point hike over the rest of the higher rate APRs, which are all 6.9%. It’s not a percentage rate that’s echoed throughout the rest of Citroën’s important volume models such as the C1, C3 and increases due to such a poor month by range, which has 0%, 2.9% and 4.9% offers on C4 Cactus. comparison last year. As always, the most expensive end of the table This includes Smart, SsangYong, Infiniti, BMW for monthly offers is a display of prestige and Mercedes. Of that group, the German THERE HAS BEEN A supercars and SUVs, but scanning further down premium volume players have been hit the QUARTER-ON- shows a Kia Optima PHEV at £474 a month, sitting hardest, as Audi had a flat month too, so it will be between a BMW X3 M Sport and Mercedes-Benz interesting to see where all three end up by the QUARTER INCREASE GLC Coupe AMG Line. It’s a premium playing field end of June. Out of all three, BMW has the most Kia is getting more and more confident in, particu- offers at a lower rate of finance, so that may help IN 0% FINANCE OFFERS, larly with new products such as the Stinger and a the efforts of the dealer network over the next high-specification Sorento. 30 days. TOM SEYMOUR FROM 63 IN Q1 UP TO 69 Despite the strength of offers available in Q2, IN Q2 ACROSS 15 there were still five manufacturers that recorded SEARCH FOR FINANCE OFFERS registrations decreases of 10% or more in April, For a searchable list of manufacturers’ DIFFERENT FRANCHISES despite market conditions that should have aided finance offers, go to am-online.com/offers

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FP_AM_DealerwebRid3408618.pdf 14.03.2018 09:43 OPINIONS VIEWPOINT

DON’T WRITE OFF THE WHY SALESPEOPLE BRICKS-AND-MORTAR TRUMP SOCIAL MEDIA DEALERSHIP JUST YET IN THE SHOWROOM

DANIEL COOK is a partner in the automotive ROBERT FORRESTER is the chief executive and roadside team at Rapleys of Vertu Motors

Vauxhall’s decision to For retail more broadly, a key The results of a ‘rationalise’ its dealer factor in re-evaluating bricks- recent report should “INTERACTION network may have and-mortar sites has been the provide much WITH A REAL shocked some – but continued rise of e-commerce. solace to retailers. predictions that it is a death knell Vauxhall has said it will place “Navigating The Customer PERSON IS… THE for bricks-and-mortar dealerships significant emphasis on online Journey”, from Deloitte, was should be taken with a pinch of salt. retail as part of its new strategy. based on a survey of customers MOST IMPORTANT Many dealers were forewarned However, some analysts predict and their interactions with the UK that a review was coming, even online retail’s share of the market . The most FACTOR IN THE before AM’s report that PSA may will plateau, with estimates of interesting result was about the cull up to 30% of Vauxhall’s deal- 20%-30%. Motor retail, with impact of information sources on PURCHASE” erships. Anecdotally, agents manufacturers’ high level of which vehicle is bought. (including Rapleys) had been control on new car sales, may be The report found manufac- around the importance of digital asked to advise on several poten- insulated still further. turers’ websites to be the most spaces that the latter numbers tial Vauxhall dealership disposals. Manufacturers will explore significant information source, would be much higher. The need to reassess bricks- innovative tactics to engage with 31% of respondents saying Salespeople are crucial in and-mortar portfolios is not customers – from high-street they had a significant impact. providing information and exclusive to motor retail. The showrooms to shopping-centre A further 25% said they had affecting which car is bought. entire retail industry is adjusting ‘experiential’ stores – but such some impact. They add value when they listen to the new realities of consumer solutions will likely form part of the That said, I am always largely to customers and meet their demand and behaviour. marketing and brand-engage- disappointed with the quantity, needs, and destroy value when Businesses such as Toys ’R’ Us, ment mix, rather than purely as a and sometimes quality, of leads they lack professionalism, Carpetright, and Debenhams route to driving transactions from manufacturer websites. respect and integrity. The latter is have felt the strain of being tied upwards. We expect the bulk of Our conversion on new cars is all about the culture of the retailer. into expensive and often not-fit- sales to continue to be linked to the much better on leads from our Probably my main task at Vertu is for-purpose property estates. showroom – albeit with increased own websites. to ensure the culture is right and The dynamics are different in the customer service, engagement Then the good news starts. our people have the right values motor trade, but a realignment and digital solutions integrated. Friends and family are almost as and treat customers as they was becoming inevitable for Some of the dropped Vauxhall powerful in providing information would want to be treated. brands with a high-volume, high- showrooms may appeal to other as manufacturer websites, with The importance of customer coverage dealership strategy. motor retailers, including used- 30% saying they had a significant experience comes through the Volkswagen has shown that car dealers and car supermar- impact. Clearly, retailers can report again and again. Interac- significant market share can be kets, who are searching for sites. benefit from this if they have a tion with a real person is stated maintained with a comparatively There is more dealership prop- strong customer base of as the most important factor in small footprint. We should not be erty on the market and this is advocates. This is a major source the purchase. Some 71% of surprised if other volume brands, affecting values, but demand is of sales for Vertu, with more than customers stated that customer such as Ford, explore similar such that any drop is likely to be 96% of our used car customers experience was either somewhat solutions to Vauxhall. small and may be limited to a willing to recommend us. or very important in choosing slowdown in growth only. Dealer websites have a signifi- where they buy a vehicle. Demand is coming from outside cant influence on 28% of We have to provide a good deal, “ THERE IS MORE the industry, too, from gyms, to customers and some impact on a of course, and price is important. petrol retailers, to senior living further 24%. Getting our websites A good deal or price was cited as DEALERSHIP providers and residential. right is therefore vital. customers’ most enjoyable PROPERTY ON THE The real challenge, therefore, is Then, guess what? Salespeople aspect of the dealer experience, in ensuring dealers’ bricks-and- at the dealership have a signifi- followed by the test drive. MARKET AND THIS mortar portfolios are right-sized, cant impact on 26% of customers. We can all draw our own complementary to wider Compare this with only 20% for conclusions from this survey. My IS AFFECTING consumer dynamics, and that the third-party retail websites, and main thought is that while digital industry can compete with 10% for social media. You would is important, there is a risk in it VALUES” alternative users for the best sites. have thought with the hype being overplayed.

20 JUNE 2018 am-online.com HAVE YOUR SAY Do you agree with these opinions? Get in touch by email - [email protected] POLL

MOTOR RETAIL MOST DEALERS PLAN TO BOOST SURVEYS MUST LOOK SPENDING ON DIGITAL STAFF BEYOND LONDON PROFESSOR JIM SAKER is director of the HOW MUCH DO YOU EXPECT TO INVEST IN YOUR Centre for Automotive Management at Loughborough University’s Business School and DIGITAL TEAM IN 2018? an AM Awards judge. He has been involved in the automotive industry for more than 20 years LESS MORE 28.6% 52.4%

There are many the bottom of the article, however. stereotypes and The research had been under- jokes about people taken in March 2018 and involved from ‘up north’ a survey of 1,006 motorists in being more friendly than those London. There is a major ques- who live inside the M25. To what tion as to whether Londoners are extent this is true is open to representative of all ‘UK speculation. motorists’ mentioned above. Some years ago, one of our Londoners’ use of cars is students, who ran a BMW different to much of the rest of the dealership in Huddersfield, UK. It has the anomaly of traffic complained that he was being congestion as well as a conges- penalised because his ‘customer tion charge; residential parking is satisfaction’ scores were the often restricted and in places has lowest in his group. The irony was to be paid for; and ‘Boris’ bikes that his customer retention and are plentiful along with a compre- loyalty were the highest. hensive public transport system. THE SAME After some research, the Compare this to Leicester, a 19.0% conclusion was reached that hundred miles north. There is no people from that part of the congestion charge, limited traffic country would never say they apart from during the school run, The surge of digital pathways and processes in motor retail were ‘extremely satisfied’ if they no Underground or push bikes on shows no sign of abating, and dealers are still gearing up to were happy – they would simply street corners. do more to attract and engage consumers remotely at their describe it as being ‘satisfied.’ In Leicester, the majority of the convenience. One in two participants in our latest poll wants (Please note that this is not a dealerships are shared between to increase the investment they make in their digital team comment on the outlook on life of two family businesses and Sytner. this year. the inhabitants of this esteemed The dealerships and the people As more manufacturers work closely with digital town, but simply that geography involved are well known, they companies and finance houses to tear down the barriers to and local culture affect percep- sponsor the local sports teams online car purchases, it seems 2018 could become a mile- tions as do house prices and the and are seen at all the main social stone in the industry’s evolution. For some brands, allowing availability of disposable income.) events that take place in the city. someone to do all or part of their ‘purchase journey’ online There appears to be a growing They have built businesses based seems to be the goal. trend of random surveys on relationships. Yet one in four expects to pare back their investment in predicting the future of car sales Of course, there will be people digital this year. Such decisions may be linked to market and therefore dealerships. All of in Leicester who will buy a car performance, but many dealers still see their opportunities this research is very commend- ‘online’, but it is highly unlikely the for growth coming from ‘doing the basics better’ at little or able, but is often a little oddly numbers will match those no additional cost. For those running the business, ensuring constructed. One particular described in the London survey. that the leads a dealership already generates are followed article, based on a survey by Much of what is written about up properly, that existing customers are prospected well at Servicing Stop, claimed 64% of our sector appears to be London- opportune moments, and that part-exchanges are appraised UK motorists were “likely to head centric, which is unhelpful in correctly and turned into profitable used car stock can online to purchase their new or producing a realistic scenario provide quicker wins than throwing more money at social used car”. A notable piece of of the future of the retail media and classified websites. information was secreted away at automotive sector. “THERE IS A QUESTION AS TO WHETHER LONDONERS ARE REPRESENTATIVE OF NEXT MONTH: WHAT IS THE MOST IMPORTANT FACTOR ALL ‘UK MOTORISTS’ ” WHEN SELECTING A USED CAR SALES PORTAL? VOTE NOW AT AM-ONLINE.COM/POLLS

am-online.com JUNE 2018 21 adRocket

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FP_AM_3714423id3481034.pdf 10.05.2018 15:21 INTERVIEWS DEALER

FACE TO FACE: HEPWORTH MOTOR GROUP ‘I WANT THAT SENSE OF FAMILY’

Although initially reluctant to join his late father’s business, MD Stephen Brighton wants to grow organically and boost profits, but not at the expense of his staff, he tells Tom Sharpe

t’s not a philanthropic thing, an extremely influential figure in his of its two Honda franchises, in Halifax, fails but I am very much aware working life. to test that loyalty. “ that I employ 55 people Stephen had been completing a BSc in “Cut me and you’ll find I’m Honda through I from the local town, help to industrial studies at Sheffield Polytechnic and through. That remains the case now support 55 families – that is (now Sheffield Hallam University) while on because the brand has been extremely something hugely important to me.” an apprenticeship when his father, then in supportive throughout the process,” said Stephen Brighton, the managing director his mid-40s, began to suffer from heart Brighton. of Hepworth Motor Group, was preparing problems. This drew him into the business “Honda wanted to shrink its network by to cycle from Avelin, France, to Hudders- and he took the helm in 2002. around 10% and we featured in their plans. field in aid of the Yorkshire Air Ambulance Brighton said he often felt like he had “Now we have the opportunity to re-fran- and Huddersfield Town Football Club’s been “playing with my dad’s train set”. chise that Halifax site with Mitsubishi, a charity, when AM visited. Born in Wakefield in 1940, Frank Brighton brand which we don’t feel overlaps with the The gruelling challenge – 282 miles in spent his entire working life in the Honda product at all, and we think we will just four days – was his seventh in as many motor trade. be able to grow our market share and prof- years as part of fund-raising efforts that Starting as a technician, he then joined itability as a result.” have so far raised £1.7 million. Wakefield Garages – at the time part of the Hepworth will re-unite with Mitsubishi Brighton’s charitable work is, in many Thomas Tilling Group – where he rose to from June 4, following an absence of 11 ways, reflective of the way he approaches the position of sales manager. years, having withdrawn from the brand in the family business. “During this time he also taught at Leeds Huddersfield and Bradford in 2007. He said he wants the business founded Technical College, which enabled him to Hepworth has also experimented with by his father – Frank Brighton, who died on start his own business,” said Stephen. other brands in the past, with December 3 – to thrive, but it is clear that Brighton’s Car Centre opened in mixed results. the ambition to grow will not threaten what Featherstone in 1970 and Frank sold used In the mid-1980s, it traded in Daihatsu he sees as a key employment provider in cars from the site until 1981. and very briefly with Dacia, which was a the area. In 1980, he had purchased a Honda very different manufacturer back then. “My dad was the entrepreneur, but I am dealership in Kirkburton, Huddersfield, Brighton recalled that the group had a manager,” said Brighton. and began a career as a franchised retailer. Dacia cars for just seven days, after “I don’t know whether it is what happened evidence of poor build quality prompted a to me and my family in the space of three THE SILVER LINING IN RE-FRANCHISING swift change of heart. very tough months last year or not That near-40-year relationship has However, he is looking forward to the (Brighton’s mother, Hilda, died in generated almost as much loyalty from return of Mitsubishi. Hepworth’s October), but I am very conscious of the 55 Brighton towards Honda as the brand gets technicians are already multi-brand quali- people – 55 husbands, wives and from its customers in West Yorkshire fied, as the Huddersfield Honda dealership families – that we support as a business (Brighton said aftersales retention within on Leeds Road also serves as an official and I want that sense of family to be very the group was more than 90%, thanks to Mitsubishi aftersales facility, already strong throughout the business. Honda’s subsidised service plans). helping the group to a respectable “We have growth plans. We’re bringing Even the fact that Hepworth is to lose one overhead absorption figure of 70%. Mitsubishi back into the group and we are Brighton said: “Like many Honda obviously pushing to improve profitability, retailers, we were geared towards a UK but we have no ambition to add more FACTFILE volume of over 100,000 vehicles and the brands, more franchised sites. brand is doing less than half of that now. “My long-term ambition is to maintain a TURNOVER: £18.2m (2016) “The result is that we have a large profitable business that supports a happy PROFIT: -£153,002 (2016) aftersales facility here and we were able to workforce and helps to provide for the local FRANCHISES: Honda, become an authorised Mitsubishi facility economy and community.” Mitsubishi, SsangYong with minimal extra outlay. Apart from the considerable trauma of SITES: Huddersfield, Horsforth “Mitsubishi never replaced us after we losing both parents in such a short space EMPLOYEES: 55 left the brand in Huddersfield the last of time, Brighton said his father was also time, so we’ve done well out of the

24 JUNE 2018 am-online.com am-online.com JUNE 2018 25 INTERVIEWS DEALER

IT IS DISAPPOINTING. HONDA WERE AT THE FRONT OF THE HYBRID CURVE AND THEN THEY WITHDREW RIGHT WHEN PEOPLE STARTED TO WANT THEM STEPHEN BRIGHTON, HEPWORTH GROUP

aftersales side and it feels like the were at the front of the hybrid curve at one right time to go back.” point and then they withdrew right when Another part of Brighton’s thinking is that people started to want them. I’d rather he sees an opportunity in offering they’d have stuck with the old technology customers alternative fuel vehicles (AFVs). as a stop-gap at least. We have customers Mitsubishi’s success with its Outlander coming in and asking about hybrids and PHEV and the expected of a plug-in EVs quite a lot now. hybrid version of the Eclipse Cross compact “I’m really pleased to hear that the Urban SUV contrast sharply with Honda’s EV is coming, but it was worrying to hear approach to alternative drivetrains in David Hodgetts say that they would recent years, a mistake acknowledged by probably be expensive.” David Hodgetts, Honda’s UK managing One brand that has proved a hit with director, in last month’s AM. Brighton and his Yorkshire clientele Brighton said: “It is disappointing. Honda is SsangYong.

TURNOVER (£)

25,000,000

20,000,000

15,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 By Brighton’s own admission, Hepworth’s turnover has remained ‘static’ in recent years, but he sees the addition of the Mitsubishi franchise and a new, independent used car operation as key to growth Brought into a former Robins & Day used car facility on Low Lane, Horsforth, near Leeds, in November 2012, the brand OPERATING PROFITS (£) was the ideal add-on to a business with a reputation as pre-owned specialists. 350,000 “It’s a site that works for us on two levels, 300,000 but we’ve been really impressed with 250,000 SsangYong,” said Brighton. “It feels like it’s exactly where Mitsubishi 200,000 150,000 was maybe 10 years ago. There’s a constant flow of new product and real 100,000 promise in the brand. 50,000 “Volumes are down a little this year, but 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 we sold 115 SsangYongs in our best year, -50,000 2016, and under the new management -100,000 there’s less focus on tactical registrations -150,000 and more on profitability, so it’s going well. -200,000 There is good margin to be had from There is clearly an opportunity to grow the Hepworth Group’s profitability. Brighton has been working the brand.” hard to reduce his used car stock and speed up stock turn in an attempt to improve return-on-sales Hepworth Honda sold 350 new cars during 2017 and about 500 used cars.

26 JUNE 2018 am-online.com Hepworth Honda sold 350 new cars during 2017 and about 500 used cars

The SsangYong site totalled 80 retail It is clear that Brighton trusts his team to business that provides “affordable, experi- vehicles and 350 to 400 used car sales steer the business. enced financial directors” on a part-time during the same period. A regular attendee at AM events, he basis for businesses with a turnover of believes it is vital to absorb as much £2m-£50m. ALWAYS OPEN TO LEARNING industry know-how as possible to inform “It’s good to have an independent Brighton’s three younger siblings have business decisions. perspective on our performance and pursued career opportunities away from Brighton said too many smaller longer-term strategy,” said Brighton. the family business, and while Brighton operators can be closed to wider industry Despite Hepworth Honda’s experimenta- said having “just me” running Hepworth trends and market knowledge that could tion with different brands and territories made things more straightforward, he help them improve their businesses. neighbouring its Huddersfield heartland in acknowledged that he is not as hands-on “Ultimately, it is just me at the helm, but the past, its turnover has remained near- as some managing directors. I have a great team and that means I can static in recent years. Hepworth’s management structure afford to keep an eye on wider trends and In its last published financial results, to features three other directors – Mark I certainly embrace good advice. the year ended December 31, 2016, it Brook, a former sales executive, is sales “I take some help from (former JCT600 recorded an annual turnover of £18.2m, director; Paul Walsh, who started work as operations director) Phil Southern and the down about 3.7% on the previous year’s a technician at Hepworth in 1988, is service FD Centre and I get support from the £18.9m and 9.5% on £20.1m in 2010 – its and aftersales director; and Richard national dealer council too – people like best result for the past decade. Pickersgill is general manager at the David Cox and John Hughes. I have people Operating profits have peaked in years SsangYong franchise and Hepworth Select to talk to and I value their advice.” with a smaller turnover, however, used car dealership in Horsforth. The FD Centre is a Swindon-based with the £348,026 achieved in 2009,

am-online.com JUNE 2018 27 INTERVIEWS DEALER

when turnover was just £16.8m, a stand-out performance. The 2016 accounts showed an operating loss of £153,002. Brighton conceded that the business’s turnover has been “flat” and said he was aiming to achieve a return on sales of 0.6%, but said 2018 had already delivered better profits, up by 28% quarter-on- quarter and suggested that changes in the business would once again see turnover rise. He said: “If there was an AM250 table, we may just feature in that. Our turnover in Q1 of this year is 28% up year-on-year and we want to see that rise to north of £20m for the first time since 2010 while achieving improved profitability.” Hepworth is to lose one of its two GOING FOR ORGANIC GROWTH Honda franchises Hepworth Honda is not likely to expand outside Honda, Mitsubishi and SsangYong any time soon, but that does not mean it The emphasis on family seems to have has no plans for expansion. THERE HAS BEEN benefitted staff retention. The business owns a strip of land, AN ADDED FOCUS In June, Brighton will take his 10 opposite its Leeds Road headquarters, longest-serving employees to Wetherby which is currently home to a display of ON Race Course for the day. The group has about 12 approved used Honda cars. LESS AND TURNING STOCK a combined service to the business of Hepworth was granted planning 275 years. permission in January for a larger, more MORE QUICKLY AND IT’S Brighton believes Martin Holbrook, permanent retail site. BEEN GENERATING REAL who has worked for Hepworth since May The group plans to demolish a two- 1, 1969, must be “one of the UK’s longest- storey residential property on a fenced- RESULTS DURING Q1 serving technicians”. off area of land behind the current display. STEPHEN BRIGHTON, Tracey Swallow, a receptionist, It will then clear the land to make way for HEPWORTH GROUP completed 26 years’ service on May 17 a new used car operation, complete with and Brighton himself has spent 33 years its own 200 square-metre, single-storey in the trade, despite his initial reluctance showroom. greater focus on digital marketing and to be part of his father’s operation. Brighton said: “There will be 35 to 40 flexible working, which he hopes will help A picture of Frank and Hilda Brighton cars over there and we expect it to signif- customers and staff alike. hangs in an ornate brass frame in the icantly add to the profits. It’s a great site The group plans to increase its Leeds Road Honda dealership. on the A62, which most people locally presence on Auto Trader as well as Brighton sees his business as an have to pass each time they travel into working with existing website provider extension of his family and it’s easy to see Huddersfield to shop or visit the cinema Autoweb Design to offer greater online why – it’s his father’s legacy. or go to a football match.” functionality, and with Moneypenny to Asked if his own son or daughter may Hepworth’s used car stock already deliver out-of-hours lead management. enter the business and carry on the caters for a wide range of clientele. Its The business wants to guarantee family business, Brighton said: “My dad cheapest offering was a £2,995 Fiat 500 servicing slots for customers within two was a successful businessman and at the time AM visited. days of an enquiry and deliver more one of the things he wanted to do was Brighton said it is far from stretched in availability to customers demanding pay for a private education for his its stocking loans and trades “on assets, immediate engagement at a time when grandchildren. not liability”. staff are also keen to enjoy a more “I’d like them to follow their own path.” The business has been working closely favourable work/life balance. Brighton said the eventual sale of the with Honda UK to refine its stocking and Hepworth business was his only likely used car operations and features a high A FAMILY-FRIENDLY FAMILY BUSINESS exit strategy, but said it was not level of part-exchange stock – the “I’ve had a lot of cause to take stock something he foresaw happening any forecourt is filled with an abundance of recently, but I think it’s clear that all time soon, not while he remains keen to used Jazz hatchbacks, in particular. employees want to be able to spend more transfer his industry learning into more Brighton said: “There has been an time with their families,” said Brighton. innovative and profitable operating added focus on stocking less and turning “If we can put measures in place that practices. stock more quickly and it’s been gener- mean I don’t need six sales executives in Frank Brighton’s business motto was ating real results during Q1.” the showroom twiddling their thumbs on “a small firm that tries harder” and it’s In an effort to boost Hepworth’s profile, a Sunday afternoon – a time when the clear that Stephen Brighton is doing both as a used car operator and expectation might be to sell just one car everything in his power to continue franchised retailer, Brighton is placing a – then I want to make that happen.” that ethos.

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FP_AM_180115Freaid3475731.pdf 08.05.2018 09:35 INTERVIEW SUPPLIER MINUTES 5 WITH... Alistair Horsburgh, chief executive, CitNOW

What have been the big milestones BETWEEN how they approach content. for you in the past 12 months? The really exciting project we are The investment from Tenzing, the private LAUNCHING IN working on right now is how we can use equity firm, in March this year, was key artificial intelligence (AI) to go through for us. We are now up to six offices across 2008 AND 2016, this video content to analyse and offer Europe, with the latest for the Nordic and WE DID 10 MILLION VIDEOS. feedback. Was the customer’s name Baltic region. We are working with 1,200 used? How quickly were they speaking? Ford dealers across Europe, so they have IN 2017 ALONE, WE DID 7.7M There is some really interesting stuff you leapfrogged other manufacturers over ALISTAIR HORSBURGH, CITNOW can do with voice recognition and we are the past couple of years to be our biggest working with Manchester University on client. We work with 40 vehicle something to provide qualitative data manufacturers around the world. We will In terms of products, we are looking at back to dealerships. also be refreshing our branding and growing the use of 360-degree interior website before the end of March. and exterior imaging. Where do you see video tech going? Do Integrating with the big software giants you think virtual reality has a place? Where does that leave the UK if is also always a major opportunity. We I actually think the whole VR piece has the company is looking to expand have integration with CDK Global, Auto been massively overplayed. I know some internationally? Trader and Cox Automotive. manufacturers have the technology The UK is still our home and it’s still very available, but in terms of VR hitting the much a key focus to grow. We work with How has the use of video grown over mainstream, I think it is very unlikely. 3,292 dealers in the UK, covering about the years in the UK? Live video has been really big in terms 90 of the AM100 dealer groups. We have Between launching in 2008 and 2016, we of social media, with people broadcasting a very robust programme in place to look did 10 million videos. In 2017 alone, we did from their smartphones, but I think we after our UK customers. We have a team 7.7m. Aftersales represented two thirds of will have to see how that takes off in of product experts [who] go into that content with the final third car sales. terms of automotive retail. dealerships and help them with how they This year, we will break 10m. We are Personalised video requests could also can use video. getting to a point where not only are be a big growth area. Customers could customers accepting video in this environ- get in contact and ask two or three Where does the UK sit internationally ment, they are requesting it. specific points they would like a video on in terms of using video in motor retail? and dealers can go out and deliver it. If you asked a UK business about whether With that sort of growth, are they would consider using video in their competitors springing up to take What’s the biggest threat to the dealership, it would be in the high 90%. market share? franchised dealer model? The US probably comes second at about There are some companies that offer Franchised dealers are going to be FACT 30% and then Europe is between 15-20%. video that are bolting it on, but it’s not the around for a long time. I know Alibaba FILE main thing they are focused on. We are and Ford in China have created an What’s the biggest growth area for the really the only company in the UK solely unmanned car vending machine, but in COMPANY: business in the UK? focused on automotive video right now. the UK? I just can’t see anything like that ZYPE TV Most dealer groups are looking at rich I think the reason we haven’t had a happening. HEADQUARTERS: media for their website in terms of deluge of competitors is it’s quite tricky to I think the model will probably change WOKINGHAM, images and video and ‘time to web’ as a offer a package that is watertight on and that comes as a result of the owner- BERKSHIRE measurement. At the moment, they rely GDPR and specifically formatted for the ship model changing, too. You start with SALES: freelance photographers visiting show- motor retail experience. PCP and you transition into rental and to £7 MILLION rooms at allotted times and it is slowing subscriptions. If dealers use technology STAFF: the process down to get product online. How can CitNOW help dealers to to stay relevant, they will still have a place 71 With today’s smartphone technology, improve their business using data in the market. Part of the challenge is SITES: you can take extremely high-quality collected from these millions of videos? making sure it is not a cold, disconnected SIX images without the need for a photogra- Customers can leave feedback future, but one where the personality of pher. It means dealers can really speed comments and rate videos out of five. people behind the technology can still up ‘time to web’. This gives dealers important feedback on shine through. TOM SEYMOUR am-online.com JUNE 2018 31 Automotive management LIVE SHAPING THE FUTURE OF AUTOMOTIVE RETAILING The best day you’ll spend away from your dealership in 2018

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It had a rough 2017, both in volumes and dealer sentiment, but new MD Chris Graham believes it has turned a corner, he tells Craig Thomas

fter a year the brand would perhaps rather forget, Subaru in the UK is A confident the changes it has introduced will boost sales and improve dealer satisfaction, with managing director Chris Graham telling AM: “We are definitely not doing business like it has always been done before.” Imported and distributed by the IM Group in the UK, Subaru did not have a banner year in 2017 – new car registrations were 2,679, the lowest total since 2013, and a 26% year-on-year fall. Its overall ?? score in the National Franchised Dealers Association’s six-monthly Dealer Attitude Survey fell from 7.1 in winter 2017 to 4.2 in summer 2017. serious about the UK, we have to have product focus for the brand, with the However, the appointment of Graham in production’. emphasis on safety, rather than the sportier February as a new broom, along with the “So, remarkably, we have now got the elements of the past. launch of its ‘Better Where It Matters’ production. At the moment our production “Subaru’s ambition is to become the marketing campaign, demonstrate IM level is actually as high or higher than our safest SUV producer in the world,” Group’s intention to reboot Subaru in sales expectation, so we can confidently go said Graham. the UK. to market, spend significantly more than we “That will come from those three The brand’s Q1 2018 results suggest it is did in 2016 or 2017 on marketing to attract products – the XV, the Forester and the moving in the right direction, with new customers, with the confidence that Outback. We will still keep the BRZ and we registrations improving by 5.5%. Graham when the customer comes in, the dealers still have availability of Levorg as well. The attributed the improvement to a new have got the cars, or availability of cars.” only thing we don’t have in our range now relationship with the brand’s headquarters is STI. We’re incredibly proud of the heritage in Japan. A renewed focus on product and everything that STI has brought to the “The way that Subaru worked with us is Subaru said this availability is already brand over many, many years, but for that they will give us production to cover the bearing fruit – demand for the new XV Subaru, their production and their forward volume. If the volume goes down, the quickly exhausted dealers’ supplies, but thinking is more based around the SUV production goes down, so it’s very difficult because more vehicles were ordered four market.” to break that trend. months previously, Subaru now has stock However, that SUV market is highly “But at the end of last year, Torbjörn available. competitive, with manufacturers launching Lillrud, who was managing director for IM Graham said the order bank is currently new models, of all sizes, on an almost Nordic, joined the UK business as group very strong: “We’ve got orders now, not just monthly basis. The absence of the Impreza development director. He has had a long for XV, but across the range, particularly – which was responsible for thousands of history with Subaru and has a fantastic with Forester and Outback, running into UK sales in its late 1990s/early 2000s relationship with the Japanese. July. That’s not something we’ve seen heyday – means there is not a model to fall “Because of that relationship, he said to before.” back on that consumers engage with on an them: ‘We have to break this cycle. If you’re There also seems to be a renewed emotional level. Does that threaten

KEY PRODUCTS

Forester XV

Subaru’s best-selling model in the UK starts at The brand’s answer to a compact crossover, £26,510. Billed as ‘the no-nonsense SUV’, and a priced from £25,000, comes with petrol engines favourite of farmers, 896 were registered in 2017, only. Registrations in 2017 were 626, down from down from 1,229 in 2016. 754 the prior year.

34 JUNE 2018 am-online.com Subaru’s score in the NFDA Dealer Attitude Survey fell almost three points between winter 2017 and summer 2017

Subaru’s presence in the UK market? Is IRRESPECTIVE them as customers, even if Subaru there a sales baseline below which IM will launches hybrids or EVs in the UK in the consider the brand non-viable? OF WHETHER coming years. Graham doesn’t think so. “We are THERE’S A “Undoubtedly we will lose some, as all absolutely 100% committed. We’ve been manufacturers will. with the brand since 1987. As a business, DIESEL, PETROL, “Some of our very long-term customers there would be a critical number of vehicles HYBRID OR ELECTRIC – and we’re talking about families who have that you have to sell for us to be able to keep POWERTRAIN, I THINK multiple numbers of – are making the doors open. But even if you set a target the move currently to petrol. When and if of selling just 1,000 cars and you had a THERE IS A CORE THAT we get hybrid-engined cars, will they make dealer network that was set up to sell only WILL BUY [SUBARU] that change? 1,000 vehicles, you could be viable doing “I think there’s a core that understand that. It wouldn’t be what I would call a CHRIS GRAHAM, SUBARU UK what Subaru means to them – irrespective successful business and we wouldn’t ever of whether there’s a diesel, petrol, hybrid or want to look at that. This resulted in some dealers taking that electric powertrain, I think there is a core “Even going down to the volumes we did message literally, even telling customers that will buy. We are seeing that very much in 2017, at no point were there any that Subaru was no longer making diesels. with new XV buyers – the number of conversations within the group about The company has subsequently apologised conquests is dramatically improving. Subaru viability.” to dealers for jumping the gun and diesel “I’m quite sure that trend will continue, as sales have improved, after they fell from we [will] have new model Forester and new Jumping the gun on diesel about 30% of total volume to 12%. model Outback eventually. Hybrid would be Like every other carmaker, the downturn in Even owners from Subaru’s traditional something that they would be looking for at diesel has had an effect on Subaru in the customer base in rural and farming that point.” UK, but Graham frankly admits that the communities have started to shift to petrol- If Subaru is confident about retaining its company got it badly wrong, when it told engined cars, but Graham is not too relationship with customers, what dealers diesel was dead. concerned that the shift will mean losing about its relationship with its dealers?

Outback Impreza The rugged crossover estate has had a facelift Still that brand statement 4x4 drivetrain, for 2018, but no price increase, still costing from but in a hatchback with a list price starting £30,000. After 788 registrations in 2016, volumes at £24,000. Registrations totalled 417 units slipped to 475 in 2017. in 2017.

am-online.com JUNE 2018 35 INTERVIEWS MANUFACTURER

NFDA – HOW DO DEALERS RATE THE VALUE OF THE FRANCHISE OVERALL, OUT OF 10?

8

7

6

5

4

3 SUM 08 WIN SUM 09 WIN SUM 10 WIN SUM 11 WIN SUM 12 WIN SUM 13 WIN SUM 14 WIN 15 SUM 15 WIN 16 SUM 16 WIN 17 SUM 17 WIN 18 08/09 09/10 10/11 11/12 12/13 13/14

Subaru is a low-investment franchise, but dealers have become dissatisfied with the new car volume and profits it provides

The NFDA surveys from last year suggest that there’s an awful lot of SUBARU ANNUAL NEW CAR REGISTRATIONS work to do – which is supported by some of the attitudes that Graham experienced at a 5,000 dealer conference in January. “We had dealers that were ready to resign. We had a dealer who brought his resignation letter, but waited to see what happened at the conference – and it was a conference like they had never seen before. We changed so many things, which they thought we would never change. After it, he 4,000 rang his business and said, ‘This is not the last day for Subaru – this is the first day of the new Subaru.’ That’s a very satisfying thing to do.” Subaru believes it has won over its dealers with a package that includes the easier access to cars and measures that will help dealers in practical, operational ways. 3,000 “We asked dealers at our national and regional conferences what they wanted, and we gave them a number of items that they asked for. One, for instance, was simply how we would put a demonstrator on a demonstrator plan, and the cost of running a demonstrator. So we have simplified that, 2,000 we have helped their cash flow and we are 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 giving them more training support. “We have simplified a huge amount of our Production slot limits and foreign exchange changes have made it hard for the brand to find paperwork and anything that gets a sustainable level processed by us on behalf of the dealers, we are doing internally. So they are not having to process a huge amount of make sure that all of the technology in massively underspent in quarter two, and paperwork back our way. particular is explained thoroughly and massively underspent in quarter four. We “We’re giving more advice on how to properly and let the customer experience are now keeping the spending very conduct the test drive in the right way, to the technology. When they move across a consistent throughout the year,” he said. lane, and the sound is going, and then the “All these kind of things make a big differ- WE HAD DEALERS THAT WERE READY dashboard is flashing, they understand ence to a dealer.” what it is, and are not put off by it, frightened With Subaru being a relatively low-volume TO RESIGN. WE HAD A DEALER WHO by it, or concerned by it.” manufacturer, dealers’ reliance on used car BROUGHT HIS RESIGNATION LETTER, Graham said Subaru had also committed sales also requires support. Subaru helps to spend more on marketing, to drive more this, said Graham, by having structures in BUT WAITED TO SEE WHAT HAPPENED AT THE footfall to the showrooms in quarter one. place that help to make a steady supply of CONFERENCE CHRIS GRAHAM, SUBARU UK “Historically, we have always probably vehicles that have previously been used by

36 JUNE 2018 am-online.com ADVERTISING FEATURE GDPR – don’t fall foul of duplicate records

By Steve Ure, strategic account manager, eDynamix

Not many people seem to be talking about duplicate records and ‘the right to restrict processing’ within the GDPR. Take this scenario – you have a customer you have dealt with for years and over time, through vehicle sales and service visits, there are multiple instances of their record on your DMS. One day, Subaru has 76 franchises in due to a bad experience, they decide they no the UK, but wants 82 by the longer want any further communications from you. end of the year Not just marketing, but nothing at all, not even service or MOT reminders. They are however, ambassadors or corporate partners avail- Growing the network happy to be kept on your database until their able to the network, instead of selling them That family of dealerships is also growing, finance agreement comes to an end. So, you outside the business. Dealers are also despite the woes of 2017. Subaru has just update their new contact preferences against a proactive in picking up cars from private announced the opening of four new customer record in your DMS. sellers, with the overall result that few franchises, taking the national total up to 76. Some months later, you send out a mailer using Subarus go thorough open auction. Graham hopes it won’t end there, either, and Graham’s view is clearly that Subaru and has one eye on more growth, with the aim ‘legitimate interest’, due to the fact you don’t have its dealers should all play to their strengths of reaching 82 sites by the end of this year. much in the way of marketing consent. However, of being small businesses with strong “We have a number of open points. We only one of the multiple records for the customer in interpersonal links to their customers. would like to close those as soon as we question in your DMS has the ‘Do Not Contact’ “We’re a family business. Most of our possibly can. We’ve just changed our preferences set against it. Suddenly you have dealers are family businesses, and the franchise offering, in terms of entry costs, breached GDPR legislation and could find yourself relationship they have with their customers etc., to new incomers. We have got quite a – we need to encourage that to be a family large open day here on May 30, where we having to deal with a complaint, or much worse… kind of feel. have invited prospects that we have seen This scenario is set to become all too common “One of the things we say to our dealers previously that maybe didn’t like the due to how ‘the right to restrict processing’ is is that we are never going to be able to proposition that was put to them at recorded in many systems, i.e. against a single provide them with a footfall that Ford can.” that time. customer record, and not taking duplicate records However, he added that when a customer “We think the new proposition and the into account. comes in, the dealer can spend the time to way we now work – which is simple, fun and show that a Subaru is an interesting product profitable – will change a number of This is one of the many reasons we at eDynamix and turn them into a conquest customer. people’s perceptions, so maybe they’ll look built iConsent. It has been designed to manage “An existing customer seems to get it. If again at the decision they made previously. duplicate DMS records in a unique way, they didn’t get it, they wouldn’t have had a “I think we’ve probably got back some of consolidating data into a single consent record second, and a third, and a fourth, and a fifth the magic that Subaru had back in the late and protecting you from contact breaches. car. With a new customer, all they need to 1990s and early 2000s. n To find out more or book a demo, contact do is just sit with them and just explain the “It would be very easy to say we want to eDynamix client services at 0845 413 0000, or features that our car has that will be of do 3,500 cars this year, 6,500 next year, benefit to them. That’s what we’re working 10,000 the year after. We will call next year email [email protected] on with the training. They’ve done it for a probably around September time – prob- long time, we’re just kind of formalising it a ably when the September market’s done – little bit more now. because we have to order the cars for 2019. “I think our dealers know their customers We will make some decisions at that point. very, very well. There’s a great personal But the way things are, the trends, the feel relationship that’s built up over a number of and the positivity that we seem to have, the years, particularly for the more historic customer experience of the CSI, all of the Subaru buyer. And they’re developing that KPIs that you would normally look at, are into the new ones.” all moving upwards.” am-online.com JUNE 2018 37 Advertising fe Lookers – fully charged and ready to go

Lookers has taken up the Ben Industry Leader Challenge with an EV tour of Ireland and the UK

xcitement is building at national motor retailer Lookers as it launches one of the biggest charity E drives in its history. Lookers has grasped the baton this year and has taken on the Ben Industry Leader Challenge, which is passed on every year by a business or organisation within the motor industry to raise vital funds for the charity. This year, the challenge is being shocked into life with the Lookers Electric Charge, which will see people from Lookers, including senior directors, travel more than 2,000 miles to over 180 stops around the country, including its 155-strong dealership network, in a glorious relay of electric cars. As well as raising money for Ben, the motor industry charity, the carbon-neutral challenge will also promote some of the benefits of electric motoring, as well as showcasing the wide range of electric Lookers CEO vehicles (EVs) available from most of Andy Bruce Lookers’ 31 franchised brands. There will be headline-grabbing events along the way, including the ultimate educate the next generation of motorists managing director of showdown between an electric car and bike about the future of EV motoring. UK. While Lookers CEO Andy Bruce is glad in a race across London. Lookers will also It is a huge initiative, which will last until to be keeping his feet on solid ground this be going one step further in its commitment October, with Lookers raising vital funds for time around, he is still aware of the scale of to the environment, by adopting areas of Ben, which will be collected in its travelling the challenge Lookers has taken on. woodland along the route, as well as buying ‘Lucky bank’, modelled on the group’s He said: “We are very excited to be up carbon credits to ensure it hits its newly launched four-legged mascot, Lucky. launching the Lookers Electric Charge and environmental target. Previous challenges have included a have lots of activities planned, all of which Each stop will also include everything skydive by Daksh Gupta, the chief enable us to shine a light on a number of from EV test-drive events, carbon-neutral executive of Marshall Motor Group, and a important topics and join timely days and school visits, which will help to cross-Channel swim by Jeremy Hicks, the conversations, whether that’s assessing where the electric car industry is at the moment, the actions we can all take to A ‘Lucky’ children’s book will be launched to reduce our carbon footprint or, of course, promote the Lookers Electric Charge and help the fantastic work that Ben is doing. It really the next generation of motorists to learn about electric cars is a huge undertaking, one that will engage so many of our people across the business and require them to think creatively. It’s a challenge which I think our people will be very keen to get involved in.” The route The Lookers Electric Charge kicked off on May 14 at Audi Dublin before travelling to the 30-acre Charles Hurst site in Belfast, where colleagues from all 18 brands there were ready and waiting to do their bit. By the end of May, it will then be up to the team at Renault Newtownabbey to transfer ng feature

LOOKERS ELECTRIC CHARGE – THE ROUTE The Jaguar I-Pace

people from all corners of the automotive Stirling Edinburgh industry, including the provision of free Glasgow Motherwell support services to colleagues and their Hamilton families, as well as high-quality care for

Ayr those in later life at its care centres or in

Dumfries Newcastle their own homes. For those with a little

Newtownabbey Sunderland more independence, it operates an award- Belfast Carlisle Newtonards Middlesbrough winning retirement village on the Portadown Stockton on Tees Dundonald Lisburn Darlington Berkshire/Surrey border. Northallerton The Electric Charge brings Lookers and Harrogate Guiseley Ben even closer, with the retailer entering Blackpool Blackburn Leeds Preston the charity’s Automotive Challenge Cup St Helens Manchester Warrington Sheffield sailing regatta for the third time this year. Dublin Liverpool Stockport START Bruce said: “Ben has worked tirelessly to Crewe Chester Stoke on Trent support many of our colleagues, friends Stafford Shrewsbury and associates in the motor industry for Wolverhampton Walsall Stourbridge some years, so it is fantastic that we now get Birmingham

Worcester the opportunity to show our appreciation Sudbury Braintree through the Lookers Electric Charge. With Bishop Stortford Colchester Chipperfield Amersham Chelmsford so much planned and so much London Brentford Battersea participation expected from colleagues Hersham Orpington Camberley Canterbury Mitcham Maidstone across our brands, I have no doubt we will Basingstoke Guildford Crawley Tonbridge Ashford be able to do the charity proud.” Eastbourne

Brighton FINISH Zara Ross, chief executive at Ben, said: “We are delighted that Andy Bruce and the team at Lookers are taking on this year’s Industry Leader Challenge to fundraise for Ben. We really appreciate their support and we are looking forward to following the team on their epic journey. Good luck and one of the EVs over the Irish Sea to Audi driven, industry discussions, and, just to thank you to everyone involved. Ayr, where the relay will travel down ramp up the fun factor, a spot of carpool “Our services are funded entirely – and the length of Britain until it reaches karaoke (we are expecting one or two can only continue – through the generous Mercedes-Benz Eastbourne in October. renditions of Eddy Grant’s Electric Avenue!). support of the industry. Fundraising En route, the relay will also be stopping at And why exactly would Lookers’ people activities such as this are vital in ensuring a number of race days, the Electrification be so keen to throw themselves into a that we can continue to provide life- Suite at Jaguar’s Castle Bromwich facility rendition of the electro-reggae classic, I changing support to industry colleagues as and Ford’s iconic factory in Dagenham. hear you ask? Well, apart from wanting to they face life’s toughest challenges.” What happens inside the cars will be just show off their vocal range, it will be the fact Lookers will announce the total raised by as important as what happens along the that they are supporting Ben that will be the Electric Charge at December’s Ben Ball, route. As well as being sponsored by local the biggest motivator. as well as hand the Ben Industry Leader businesses, each leg will provide a variety Challenge baton to the next recipient. of in-car entertainment from Lookers staff, Ben But there is a lot to cram in before then. which will be uploaded to the company’s Founded in 1905, Ben has become a lifeline Follow it all on the Lookers Electric Charge social media channels using the hashtag for many people within the motor industry microsite at LOOKERS.CO.UK/EC4Ben, the #LookersEC4Ben. Here, people from across and provides tailored, holistic care and Lookers YouTube Channel, LookersWebTV, the business, from directors to technicians, support services focused on four main and Lookers’ Facebook and Twitter pages will be helping to raise extra funds, as well pillars of health and wellbeing – financial, @lookersgroup, hashtag #LookersEC4Ben. as having a bit of fun in the process. physical, mental and social. Altogether now… “We’re Gonna Rock There will be reviews of the EVs being Last year, Ben helped more than 3,000 down to Electric Avenue”.

[email protected] www.lookers.co.uk www.lookers.co.uk/EC4BEN AM100-18_FPADv2.qxp_Layout 1 17/05/2018 15:28 Page 1

LAST CHANCE TO BOOK 2 0 Lo th ndo Junn e 2 018 SHARE CONVERSE TE CELEBRA NETWORK MEET

The AM100 publication is the annual industry guide to the 100 largest dealer groups in the country, according to their company turnover. In addition, the AM100 provides a detailed analysis of the state of the industry and looks at the key issues facing dealers and their customers. The AM100 is an invaluable opportunity to meet friends and colleagues in the retail industry and be amongst the first to see the official unveiling of the new AM100 listing of UK automotive retail groups ahead of publication in AM. DINNER

AM100 Dinner guest speaker confirmed as former Home Secretary, Alan Johnson 20th June 2018 Former Home Secretary, the Rt Hon rising through the New Labour ranks Alan Johnson, will be our guest to hold one of the great offices of London Marriott Hotel speaker at this year’s AM100 dinner, state as Home Secretary. But despite Grosvenor Square, London which will be held on 20 June 2018 at his meteoric success he does still the London Marriott Hotel, have one regret – that his early Grosvenor Square. ambition to become a pop star will Book your table now at (probably) never come to fruition. Mr Orphaned at 12, Alan Johnson Johnson is an adept and immensely started his working life stacking www.am100dinner.co.uk engaging after dinner speaker and shelves at Tesco. He then became a we are certain he will have us hanging or call Kate Howard on 01733 468146 or postman and union official before on his every word. email: [email protected]

Headline sponsors: Associate sponsors: SPOTLIGHT: THE DIGITAL DEALERSHIP

… FOR NEW CAR SALES … FOR AFTERSALES … FOR USED CAR SALES DEALERS HAVE AN ARRAY OF FINANCE DIGITAL INNOVATIONS IN THE SERVICE AUCTIONS, IMAGING, VALUATIONS AND AND COMMUNICATION TECHNOLOGIES DEPARTMENT THAT INCREASE VEHICLE TRACKING – APPS AND ONLINE TO HELP DRIVE NEW CAR SALES REVENUES AND IMPROVE RETENTION SERVICES TO BOOST PRE-OWNED PROFITS PAGES 42-43 PAGES 45-46 PAGES 49-50 SPOTLIGHT: THE DIGITAL DEALERSHIP

ealers and manufacturers are tasked with keeping pace with rapidly changing D technology and consumer Digital tools for behaviours, but there is a growing digital toolkit available to help smooth the gap between the worlds of online and the physical showroom. More manufacturers are getting involved in the car buying process at an new car sales earlier stage and Škoda has pioneered a way of engaging customers online before Dealers and manufacturers can avail of a growing toolkit to they walk into a showroom with its Live Tour product demonstrations. keep pace with changing technology and consumer behaviour TOM SEYMOUR

LIVE CHAT AND AI VIRTUAL PRODUCT TOURS

Live chat has been part of a dealer’s digital toolkit for a few years, but the technology is now being enhanced by artificial intelligence (AI). Customers are becoming more accepting of AI technology, such as Apple’s Siri and Amazon’s Alexa. In the context of live chat, AI can rapidly answer any question it may be able to index from a list of progressively sophisticated automated responses. If the questioning becomes more complex than the AI can handle, a physical live chat agent can then step in. Suppliers, such as London-based True AI, have estimated that live chat responses could be automated in up to 33% of cases. Bob Morgen, True AI’s sales director, said: “AI frees up live chat agents to focus on complex issues rather than repetitive questions.” Jo McKeown, channel manager – automotive at Moneypenny, said younger generations of car buyers expect a more tech-focused experience beyond just the basic phone call. AI is not prevalent in the automotive sector yet, One in 10 recipients of a Škoda but companies such as Moneypenny, which offers Live Tour has converted to a sale 24/7 live chat and telephone answering, have an eye on how the technology is evolving. McKeown said: “We’re always looking at Škoda has a team of seven product to test drive has increased over the how the market is developing and what is the hosts that use a mix of static and first quarter of this year, to 48%. best approach. handheld cameras to showcase its Three quarters of leads generated “I think it always has to be a hybrid range and to answer any questions a from the Live Tour have been for between real people and using technology to customer may have before booking a Škoda’s new seven- Kodiaq or the supplement that. test drive. Karoq crossover. “We pride ourselves on customer service and The Live Tour project has been French said the dealer network the tech has to be right before you launch running for 12 months and has was “extremely supportive” of the anything.” delivered more than 2,000 hours of initiative, as it is generating more product demonstrations. leads for their businesses. John French, Škoda UK’s head of He said: “The Live Tour helps put sales operations, said the way Škoda on their shortlist and it is then customers are interacting with our retailers who pick up with the dealerships is changing and the Live customer and provide an exceptional Tour plays a key part in the experience when they visit the research phase. showroom. So far, three quarters of Live Tour “The Live Tour can physically users are new to the brand, 38% have support just a proportion of our range gone on to book a test drive and 10% so will continue to underpin and have converted to a sale. The conver- supplement the great work of sion rate from product demonstration our retailers.”

42 JUNE 2018 am-online.com ONLINE FINANCE ANPR

Moving finance applications online not for motor finance may integrate facial only helps smooth out the process, but recognition technology to help smooth has the added bonus of helping out the process for proof of identity. dealers to record and adhere to Fletcher said the process would see Financial Conduct Authority (FCA) a customer upload documents, such regulations. as their driving licence and then a While the majority of funders offer a customer can take a picture of them- Automatic number plate recognition (ANPR) digital finance process for dealers to selves on their phone and upload that. technology has been around since the 1970s, offer customers, actually completing The software can then verify their but dealers such as Swindon-based the deal without visiting the identity by comparing the two. Pebley Beach are using it to improve showroom is still rare. Open banking will also be a big customer service. David Fletcher, Dealflo’s vice-presi- development, particularly around the Dominic Threlfall, the managing director of dent of sales, said: “Up until five years area of affordability. Open banking will Pebley Beach, adapted the technology ago, a lot of this finance process was let third parties such as motor vehicle himself to link it to the dealership’s dealer all paper. finance providers gain access to a management system (DMS), which informs “But now financial agreement auto- customer’s bank account, with their the front desk of the name and details of the mation, with e-signatures being a part approval, through a secure portal to customer about to come through the door. of that puzzle, are helping in areas of assess disposable income, spending Pebley Beach introduced ANPR as part of customer service, regulation compli- habits and affordability. Hyundai’s 360 workshop automation initia- ance and things like fraud. The However, Fletcher said this is still at tive, as an optional extra initially run as a number of customers completing the proof-of-concept stage as banks pilot project. finance applications away from the open up their mobile banking soft- Hyundai funded the installation and while it dealership is growing.” ware to third-party developers to was set up specifically for the dealership’s James Tew, iVendi’s managing interact with it in a secure way. workshop, Threlfall adjusted it to work with director, said while the technology to Tew said: “Open banking will help in the company’s entire customer database. complete a finance application end-to- the sub-prime sector initially, for He said: “Any dealer could buy an ANPR end is already available, most dealers, those customers that might not have camera set-up from anywhere between customers and funders complete the been able to get a decision due to a £600 and £1,000. process in the showroom. credit rating before. “If you couldn’t figure out how to link it up He said: “You also have to ask how “Open banking is going to help with to the DMS, you could get an IT student to do comfortable consumers are with things like affordability checks, but it for you. It only takes a few hours.” completing the transaction end-to-end we’ll have to see what the FCA’s While Threlfall said the impact of ANPR is outside of the dealership. I think we September investigation into the difficult to measure in terms of return on have seen that online direct sales are motor finance industry looks like as to sales, the group’s customer retention is at still limited.” whether open banking is going to play 68% and he said the technology has a part to iVendi’s answer is to offer the ability a greater role in affordability checks. play in that. to continue the finance process away “We could start to see it coming into Threlfall said: “I like to think of it as one of from the dealership with a customised play later this year.” the one percenters. You can change a quote. If a customer has been working thousands things you do by 1% to make a on a deal at the dealership, they can difference, but you can’t really change one ttakeake aallll tthosehose ddetailsetails aandnd ccontinueontinue thing 1000%. So ANPR is one of those for us. aadjustingdjusting offeroffer pparametersarameters atat hhome,ome, “It’s also tied in to a welcome board, so we with no pressure. have a welcome notice for customers that TTewew ssaid:aid: “It“It ggivesives ccustomersustomers ssomeome drive in and it directs them where to park. ttimeime ttoo tthink.hink. AAss tthehe ddealeal iiss “It means you can greet the person by cconfiguredonfigured toto tthem,hem, they’rethey’re notnot their name when they walk in and if it’s an sstartingtarting ffromrom sscratchcratch – ttheyhey hhaveave appointment the reception will know why tthehe ddetailetail ooff ttheirheir ppart-exchangeart-exchange they’re at the business. It just helps give it iinn tthere,here, eetc.tc. WWe’ree’re oofferingffering tthishis that more personal touch.” tthroughhrough oonene lenderlender now,now, butbut wwee wwillill bbee oopeningpening thisthis upup toto ootherther llendersenders tthroughouthroughout the year.” OOnene ooff tthehe nnextext sstepsteps

iVendi offers consumers the ability to continue the finance process away from the dealership with a customised quote

am-online.com JUNE 2018 43 We have the experts

This new series of ‘Everything You Need To Know About...’ videos enables AM commercial partners who are experts in their field to provide crucial advice and best practice for car dealers to implement in their businesses.

These short videos will be full of practical tips that will enable car dealers to manage and optimise this particular area of their business and ultimately drive improvements to the bottom line.

Brought to you by

am-online.com/everything-you-need-to-know SPOTLIGHT: THE DIGITAL DEALERSHIP How an online approach can benefit aftersales

While sales units sometime steal their technological thunder, aftersales departments are enjoying a surge in digital innovation that can increase revenues and improve retention

Connected Intelligent stock cars and management systems data-gathering

Manufacturers worldwide are developing more proactive capability and they can connected cars. Ford, for example, claims increase their revenue through connected that 90% of its new cars will be connected car data. by 2020, and it is not the only carmaker “Dealers know in advance when a car targeting such ambitious growth. needs servicing or an MOT, or even when Other companies are getting in on the it has been in a crash, so they can increase act, too, with plug-in boxes allowing even revenue by getting people in for servicing, older cars to transmit location and failure in for repairs, and in for MOTs.” code data. Soon, a large proportion of cars However, Searles said dealers can also While technology is clearly playing a key role in on British roads will be sending all kinds use the data to offer customers vehicle the customer-facing part of the aftersales of information back to the manufacturer, reminder and tracking services, which in process, it has plenty of practical behind-the- owner and, potentially, car dealer. turn encourages drivers to share their scenes applications, too. Penny Searles, the chief executive of data and helps the dealer. Traditionally, choosing which parts to stock Smart Drivers Club, said car dealers could “Dealers can get people into the has been a low-tech, trial-and-error process stand to profit more than most. dealership, but by providing those services driven largely by the service team’s experience. “With connected car technology, the to the customer, they’re providing an However, Gary Brooks, of software firm dealership can keep an ongoing exchange for the data. The customer gets Syncron, said technology can now inform relationship with the customer – there’s something back as well.” stocking policies with algorithms and online ordering. “By looking at mean times between failure and historical data, algorithms can determine what the stock levels should be at various points Online in the supply chain. The dealers get their orders based on the recommendation of the system, service and they can place their orders or they can run booking it on autopilot, where it automatically places orders.” Eventually, said Brooks, companies will use connected car technology to adopt the just-in- If you can use the internet to order a new done online at the moment, but there’s still time principles that help modern factories run mobile phone or book a doctor’s appoint- 70-75% that are done either face-to-face so efficiently. ment, it seems only natural that you or on the phone. “There’s a lot of excess inventory in the supply should also be able to book a service “But what’s fascinating about this is that chain,” he said. “Now, with the evolution of the online. According to Tony Whitehorn, around 35% of those online bookings are ‘internet of things’, we are moving away from Hyundai’s UK chief executive, the system being done out of hours. When I buy just-in-case and moving to just-in-time. is becoming increasingly popular, with something off Amazon, when do I do it? I Technology is removing friction.” customers able to make appointments do it at 9pm. Now I can actually book my Brooks did warn, however, that although outside of normal office hours. car in for a service at 9pm. dealers can reduce stock levels with technology, “Now a number of people are enabling “It enables people to say ‘you know they will always need parts available on-site. customers to book online. With six clicks, what’s most convenient for me? 11am? I’ll “It’ll always be a balance. It’ll take a long time you can book your car in for a service. It book then’, as opposed to having to phone before all the cars on the road are connected, so takes 10 seconds. Somewhere between up, having to wait and say ‘I can’t make I think there will always be a need for the 25% and 30% of the appointments are 11am’ and having to fit it in.” just-in-case approach.”

am-online.com JUNE 2018 45 SPOTLIGHT: THE DIGITAL DEALERSHIP

An integrated, self-service future?

Iain Nickalls, director of software firm book online and drop the car off, then the eDynamix, believes dealers will eventually vehicle health check is carried out, the have the option to integrate data and work is identified. Then you can authorise technology to offer customers an efficient, any work that has been identified online fully automated service. and you can pay online. You’re then notified Aftersales “The automotive industry is slightly that the car is ready, pick up the keys and DMS behind the curve,” he said. “This tech- then go.” nology means we can prompt customers in Searles believes that even the customer systems multiple ways, we can remind a customer themselves will one day be taken out of the that their service is now due and then loop as autonomous cars drive themselves provide a link to make a booking online, so in for remedial work. Providers of dealership management it’s a fully integrated approach, which “Once driverless cars come into force, systems (DMS) have been working to link allows a customer to self-serve. I think they’ll send a message to the dealer saying processes to deliver both speed and effi- that’s the way most industries are going. ‘I’m coming in at 10am’ and then they’ll go ciency in franchised dealers’ workshops. “We are working towards the stage off, change their tyres, and be back in the Cox Automotive believes the ability to where there’s potentially no human car park when the owner leaves work,” connect with different systems is a key interaction. From the point of reminder, you she said. “It’s already happening in trials.” selling point of its Incadea DMS. Coupled to Cox’s Xtime aftersales platform, Incadea manages accounts, vehicle administration, parts inventory, showroom, aftersales management, service and marketing. It is also capable of collating CRM customer data with that held by service, parts, telephony and accounts systems. Vauxhall retailer Thurlow Nunn imple- mented the system across its 14 locations. Workshop Simon Bottomley, managing director, said video the deal would “transform the business and result in huge efficiency savings”. systems In January this year Epyx released its new reporting platform designed to give aftersales departments an enhanced insight Video systems are now widely used by car stand under a car with a technician, but that into their business. sales departments, but how much value do was then disbanded for safety reasons,” he The Network Performance and Opportuni- they add to an aftersales department in said. “The car went into this big black hole ties Report (NPOR) provides graphs, charts terms of greater sales, time-saving, of the service department and the only way and tables that show how an aftersales customer trust? you knew it had been serviced was that it department is performing compared with Everywhere you look, image- and video- had been washed. recent years. based content seems to be taking off. “So we give technicians an iPod or tablet Tim Meadows, Epyx’s commercial director, Consumers are digesting information more and they film a short video, upload it and said some of the real added value is visually than ever, with everything from it’s sent to the customer with the vehicle delivered by its ability to identify job leakage product reviews to social media trends health check. The customer can then to other providers and where missed adopting the technology. approve any work online.” opportunities for sales are taking place. It makes sense, then, that this Horsburgh said the trust benefits usually He said: “There are a range of trend should rear its head in the lead to improved revenue for an aftersales enhancements, including reports covering automotive industry. department, as well as increased customer geographical areas by radius, performance According to Alistair Horsburgh, the chief satisfaction. on job types such as MOT and servicing, and executive of CitNOW, the practice has “Obviously it will vary brand-by-brand, even analysis by specific model. become necessary to improve trust since but typically, the average dealership’s “In an industry where high-quality data is health and safety rules stopped customers ‘red-work’ conversion rate is 20% better difficult to find, what we are offering has setting foot in the technicians’ domain. when they put video into their vehicle clear value.” “About 25 years ago, a customer could health check.” JAMES FOSSDYKE

46 JUNE 2018 am-online.com adRocket

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FP_AM_373850id3481123.pdf 11.05.2018 09:22 SPOTLIGHT: THE DIGITAL DEALERSHIP

echnology is one of the best ways for a used car sales T operation to gain a Four ways for competitive advan- tage. From smartphone apps and digital imagery and videos to delivery tracking systems, car dealers have a host of new innovations at their technology to fingertips to help improve their stocking, management and sales processes. Here are four such scenarios where technology can be used to make used car sales more drive used sales efficient. ALEX WRIGHT Auctions, imaging, valuations and vehicle tracking – the apps and online services that will help your sales department to sell more used cars more efficiently

SPEEDING UP STOCK TURN MEANS SPEEDING UP THE ROUTE TO MARKET

Aston Barclay developed a buyer’s app to speed up dealers’ access to used car stock 2

t’s an all too familiar problem – you need the uppliers are increasingly equipping pre- stock yesterday, but you don’t have time to go delivery inspectors (PDIs) with imaging and to a car auction, bid for the vehicle you want video tools to speed up the online marketing Iand then wait weeks for it to be delivered. Sof the vehicle by enabling them to upload Help is at hand – dealers can now check on the content directly to the dealer’s website. condition of their preferred vehicle and buy AutosOnShow is one such supplier, and is through an online auction thanks to a range of new introducing a series of innovations to integrate video smartphone apps. along the customer journey, from sales to the Aston Barclay developed its own buyer’s app service department. after its research revealed that used car buyers “Buyers are increasingly doing their research at were finding it increasingly difficult to source and home and making accelerated buying decisions when TIME’S TOO access stock quickly. By using the app, buyers can they visit the dealership,” said Jonathan Higham, now view and bid live for stock across Aston AutosOnShow’s managing director. TIGHT TO Barclay’s network. “As a result, the purchase process is driven by data Last year, Manheim sold 19% of its 422,000 and digital channels. From defleet to the dealer STOCK THE auction vehicles through its Simulcast platform, forecourt and service department, people need FORECOURT which enables the auctions to be streamed live. accurate descriptions and super-sharp images.” Customers can then bid or instant message Chiswick Honda uses an AutosOnShow DSLR turn- the auctioneer. table system to capture HD video and images of used “Digital adoption is key to staying ahead of the vehicles that can be displayed on its website within competition and we urge all dealers to recognise minutes. It also provides an exploded view of the the ways they can use technology in their own vehicle, internal 360-degree spins and framing. businesses to maximise profits,” said Peter Bell, Dealer Auction has also introduced a system that Manheim’s managing director. enables dealers to advertise newly acquired vehicles “The efficiency, effectiveness and simplicity of online immediately after buying them. The system these online systems give customers access to allows dealers to fund the bid through NextGear auctions they would otherwise be unable to attend, Capital, use Movex to organise the vehicle’s collection which could mean the difference between a and delivery and then list it on Motors.co.uk, all 1 profitable and unprofitable month.” at the touch of a button.

am-online.com JUNE 2018 49 SPOTLIGHT: THE DIGITAL DEALERSHIP

any retailers have suggested that the data-led approach to used car CASE STUDY 1 pricing fails to recognise quirky M specifications and PDI standards for TrustFord developed its own barcode- the vehicle. A digitised valuation tool can help enabled vehicle-tracking system for dealers to overcome this problem. its Long Marston PDI centre. The Cap HPI’s Black Book Live provides a system is based on the Amazon ‘real-time’ daily valuation of vehicles, based model and works by fitting the vehicle on data received from retailers and whole- with a device that enables a customer salers. Its editors then analyse that data to to monitor its progress online. make sure it is up to date and correct. The next phase will introduce ‘Bring Editors also monitor the first auctions of It To Me Now’, where a customer can newly launched vehicles and assign an order a vehicle from another location ‘opinion value’ based on the market and view its progress online. The movements they observe. system is still being tested, having EnquiryMAX has also launched a part- been successfully used in TrustFord’s exchange appraisal module, which captures parts business deliveries over the the customer’s details and configures the past six months, and is expected to vehicle they are interested in buying as well as launch by the end of Q3. PRICING IT providing an appraisal. It also enables the “From a customer’s perspective, it’s dealer to take pictures of new vehicles to pre- all about speed of delivery,” said chief RIGHT TO sell to customers who may be looking for a executive Stuart Foulds. “They can particular model and specification and to show click on the vehicle they want, for SPEED UP videos of add-ons they may be interested in. example before 10am, with guaran- “The idea is that it speeds up the sales teed delivery by 5pm the next day. SALES process by acting as a one-stop shop that links “In reality, 5pm would be the latest 3 all the systems together,” said Jon Sheard, delivery time; what we would actually operations director. “It also gives the dealer an look to do is deliver it earlier, at say accurate reflection of the customer’s 3pm, and send you a text to notify you requirements and valuation of the vehicle.” of that within good time.”

CASE STUDY 2 ealers face a perennial problem of wasting time hunting for vehicles Fred Coupe Nissan signed up to the and keys when they could be selling INDICATA online used vehicle D to customers. However, smart management system, which provides technologies including barcode-enabled its sales team with real-time insights vehicle tracking systems and key trackers into the demand, supply and pricing of are now at hand to help the retailer. used cars in their area to improve Traka Automotive is a software solution sales and reduce stocking days. that keeps track of who has which key, when INDICATA, which is part of the it was removed and when it has been Traka Automotive allows Autorola Group, scans, processes and returned. It also enables the user to control users to see a full audit trail analyses publicly available data on access to vehicles and to see a full audit trail of all key movements vehicles. It then provides live used car of all key movements. market data, which in turn gives If used effectively, it enables the dealer to insights on market dynamics so be more productive, sell more vehicles, dealers can measure their market reduce costs and improve customer WE SPEND MORE position, monitor the performance of satisfaction. Harry Fairbairn, Scotland’s TIME SEARCHING their networks and plan. leading Mini and BMW dealership group, FOR KEYS AND Fred Coupe’s sales team uses the used the system to help minimise lost sales, data to decide how its inventory increase the percentage of stock imagery VEHICLES THAN compares against competing stock in posted onto its online store, speed up the TALKING TO the marketplace, helping it buy used preparation of its vehicles and improve PDI cars that are in high demand in their completion numbers. CUSTOMERS locality, helping to drive sales. “The Traka Automotive system enables us Simon Davies, sales manager, said: to locate where each car is parked and who “We have piloted INDICATA for a few had the keys last,” said Callum Rankin, months and it is giving us the compet- dealer principal. “It also tells you which itive advantage we need to sell more cabinet the keys are now in. used cars in the area. It also supports “It takes a couple of minutes to get all our decision as to which part-exes we relevant keys together for a shoot now. With keep and which we sell, which is our previous system, it could take over an particularly useful for non-Nissan hour to locate all keys for each car being product.” photographed.” 4

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FP_AM_3672162id3467916.pdf 30.04.2018 13:58 Advertising feature WLTP – informed decisions for car buyers The new emissions and fuel efficiency testing regime is not expected to negatively affect residual values in the near term, but Glass’s is ready for any eventuality

By Anthony Machin, head of content, Glass’s here has long Tbeen debate over the accuracy of fuel efficiency and CO2 figures published by manufacturers. Although technically achievable, in the real world, many consumers find these figures difficult to replicate.

WLTP explained The Worldwide Harmonised Light Vehicle Test Procedure (WLTP) is a stricter laboratory test, featuring an on-road WLTP timeline assessment known as Real Driving Emissions (RDE). Testing also considers the The stages of WLTP launch are noted by specific introduction dates and by the impact of vehicle options on emissions Euro 6 emission norm. The table below details each emission norm together with based on weight, aerodynamics and what is included at each stage for both WLTP and RDE. rolling resistance. EMISSIONS STATUS DATE FOR DATE FOR NEW What does this mean for new NORM NEW TYPE REGISTRATIONS car registrations? APPROVALS WLTP affects all manufacturers, models, NEDC with RDE or RDE EURO 6B September 2014 September 2015 engines and options and requires costly, monitoring only time-consuming testing. The 2017 Autumn WLTP with RDE or RDE Budget announced a new VED supplement EURO 6C September 2017 September 2018 monitoring only on diesel cars registered from April 1, 2018. In effect, this increased the cost of first-year EURO 6D-TEMP WLTP with RDE1 compliance September 2017 September 2019 VED for new diesel cars by one band, EURO 6D WLTP with RDE2 compliance January 2020 January 2021 unless they meet RDE2. Note: It is not practical to test under both cycles, therefore a new figure called ‘NEDC- Additionally, some vehicles with new correlated’ applies. In effect, it is the WLTP figure converted to NEDC. Reports suggest NEDC-correlated values will fall into new some NEDC-correlated figures are significantly different to current NEDC figures. CO2 . This could increase first-year VED rates. Glass’s believes manufacturers will mitigate these circumstances by: values (RV). After 2020, once the taxation change. However, a negative media stance ■ withdrawing engines / option regime changes to encompass WLTP, it is on differences between current NEDC and combinations possible that RVs, especially those for NEDC-correlated figures could negatively ■ re-engineering to improve emissions models with significantly higher CO2, could influence RVs. ■ reducing range complexity. be negatively affected. “Glass’s is prepared for any scenario. Our databases are being updated to accept Impact on residual values Will the market change? manufacturer WLTP and NEDC Correlated The used car market is resilient to change. The real change will be the fiscal impact in figures and our editorial team is constantly In the short term, significant change is not 2020 with the adoption of true WLTP figures. watching for signs of change in the market, expected in the wake of WLTP for residual Until then, buying habits are unlikely to ensuring our data always remains accurate”.

Find out more at www.glassbusiness.co.uk/ spec_data or call 0203 897 2500 SHOWROOM LAUNCH REPORT

The A-Class has borrowed a lot of safety and multimedia technology from the S-Class

54 JUNE 2018 am-online.com MERCEDES-BENZ A-CLASS: PRICIER, MORE PREMIUM, AND ALL GROWN-UP

he third generation A-Class £1,395 Executive pack, which also includes transformed the image of heated and parking assist) or two Mercedes-Benz following 10.25-inch screens for the full widescreen its 2012 launch. effect (as part of the £2,385 Premium pack). T Banishing memories of All this ‘maturity’ does not come at the failed ‘Elk tests’ of the original 1997 car, the expense of sportiness – either in looks or £25,800- sporty design enticed a new generation of driving enjoyment–and the car will still £30,240 more youthful owners to the brand, appeal to those more youthful in age lowering their average age by a full decade. or mind. Given that success, it is perhaps surprising Drivers have the option of three engines to hear Mercedes-Benz describe the new from launch, one diesel and two petrol. A-Class as “more grown-up” than its For the fleet buyer and retail customers 1.5 116PS predecessor. craving the lowest running costs, the A 180 TURBODIESEL, 1.4 The car has certainly grown. With a longer diesel is the pick of the bunch, featuring a 163PS PETROL wheelbase increasing interior space – new 1.5-litre unit, developed with Renault, TURBO; 2.0 224PS TWO-LITRE leg, shoulder and elbow room – and a which offers 116PS with WLTP (NEDC PETROL TURBO bigger boot (up 29 litres to 370 litres, slightly correlated) figures of 68.9mpg and 108g/ bigger than the BMW 1 Series and Audi A3), km CO2. the A-Class becomes more practical as a The engine, with a seven-speed automatic small family car. gearbox, is highly refined, with no rumble It has also matured in terms of both safety even when starting from cold. It offers technology and multimedia. It has borrowed instant power as soon as the accelerator is 0-62MPH a lot from the S-Class, including a multi- pressed, while the car itself has ample grip 6.2-10.5 SECONDS; TOP SPEED function steering wheel and fully digital and stability. 125-155MPH cockpit display, which for the first time in a Mercedes-Benz expects the A180d to be Mercedes has a touchscreen interface. the most popular among fleets, accounting The A-Class dispenses with the traditional for 60-70% of the anticipated 40,000-plus binnacle, replacing it with a ‘floating’ wide- annual sales. Prices start at £25,800 for screen digital display that stretches half the the SE, although most drivers will opt for width of the dash and incorporates the mid-trim Sport. The AMG Line 7SP AUTOMATIC speedometer, RPM gauge and the sat-nav/ completes the range. infotainment. From launch, the A180d is available with a It’s a stunning piece of design, available as seven-speed automatic gearbox; a six-speed standard dual seven-inch screens or with manual will come later this year. either one 10.25-inch screen (part of the Although diesel is still expected to 45.6-68.9MPG KEY RIVALS

108-141G/KM CO2

BMW 1 Series Audi A3 Infiniti Q30 EXCELLENT QUALITY VOLKSWAGEN EXCLUSIVITY, SWOOPY INFOTAINMENT SYSTEM, GROUP INTERIOR STYLING, COMFORT REAR-WHEEL-DRIVE LIMITED RETAIL NOT THE MOST CONSERVATIVE NETWORK, LACKS SPACIOUS STYLING BASED ON THE PROFILE MARKET, WE SEE THE PRIVATE CHANNEL REVIEW RATINGS OFFERING THE GREATEST CARWOW PARKERS TOP GEAR OPPORTUNITY ROOPIN , MERCEDES-BENZ UK am-online.com JUNE 2018 55 SHOWROOM LAUNCH REPORT

A bigger boot and more interior space makes the A-Class more practical as a small family car

Mercedes thinks the A-Class’s interior ‘will be a big pull on its own’

dominate sales, Mercedes-Benz also anticipates growing interest in the Q&A new 1.4-litre petrol (A200, priced from £27,500), which is another Renault co-devel- opment. It features cylinder deactivation, ROOPIN MASHRU, For £2,395, customers can get the Premium allowing it to run on just two cylinders for HEAD OF PRODUCT equipment line, which contains everything in maximum efficiency. MANAGEMENT, the Executive line and adds a second 10.25- The engine generates 163PS with 51.4mpg MERCEDES-BENZ UK inch screen, to give the full widescreen cockpit, and 123g/km CO2, which gives a benefit-in- as well as giving 64-colour ambient lighting, kind (BIK) tax rate of 25%, lower than the illuminated door sills, Keyless Go, an upgraded diesel due to the 4% supplement on the fuel. How many A-Class models does Mercedes- sound system and a rear armrest. Completing the launch line-up is the Benz expect to sell in the UK during its first full A250, a 2.0-litre petrol priced from £30,240 year of registrations and what trim will be What will be the expected splits between (45.6mpg and 141g/km). most popular? retail:fleet and petrol:diesel in sales of the new Later this year, Mercedes-Benz will We don’t reveal projected sales. Last year, we A-Class and how might figures differ from the introduce a smaller 1.4-litre petrol (A180), sold 43,717 A-Class models in the UK, and the previous generation model? while two new 2.0-litre diesels – A200 and most popular trim was AMG Line. We expect it Again, we won’t reveal any projected figures, A220 – with a nine-speed auto box will to remain a popular trim. but in the previous model, the splits were 47% follow in Q1 2019. A mild hybrid is due private and 53% commercial. We expect to see shortly afterwards and a full electric vehicle The new A-Class contains many new features. a greater interest in petrol models in the will also come to market, although not for Which standard specification highlights will win future and have already seen a shift in the another couple of years. over buyers? market towards this. Based on the market, we Standard across the range are sat-nav, We think the new A-Class’s interior will be a see the private channel offering the greatest digital radio, touchscreen and MBUX – big pull on its own. It’s unlike anything else in opportunity but we also expect to see Mercedes-Benz User Experience – with its the class. The new A-Class also comes with continued fleet growth. ‘Hey Mercedes’ voice recognition system to lots of new standard features such as MBUX, control key features. the new infotainment system that is launched How will the A-Class marketing campaign seek Lane-keeping assist, speed limit assist on the A-class, bringing with it an improved to reach new customers? and brake assist are among the standard navigation system and a new user interface The New A-Class campaign will kick off in late safety features as Mercedes continues to that June/July with the introduction on digital media make this one of its top priorities. It has also incorporates the first touchscreen media and a national TV campaign. improved all-round visibility by 10% by display for Mercedes-Benz. The A-Class also reducing the pillar claddings. introduces ‘Hey Mercedes’ voice activation. When were retailers first introduced to the Also of interest, to business users A-Class and how is their new vehicle sales/ especially, will be the digital key, which Where do the key upsell opportunities lie technician training now delivered? facilitates car-sharing by multiple users by for retailers? Training is scheduled to commence June/July unlocking/locking doors via the Mercedes We expect the Executive equipment line to be for technicians. We have just completed global Me smartphone app (as long as the key is especially popular. This upgrades the central sales training for the A-Class in Europe and in the car). Journeys can be logged, with navigation screen to 10.25 inches, as well as 1,500 sales executive and managers across the geo-fencing available, making it an ideal adding Active Park Assist, heated front seats country have taken part to learn about the new pool vehicle, especially for out-of-hours and electrically folding mirrors for just £1,395. exciting features of the A-Class. TOM SHARPE collection and drop-off. Technology wizardry aside, one of the factors that will appeal most to drivers is example for the A180d SE is a 5.9%, WE EXPECT TO SEE GREATER the premium feel of the interior. It is several 48-month, 10,000-mile per annum steps up from the outgoing A-Class, with agreement with a £3,999 customer deposit INTEREST IN PETROL MODELS soft leathers and tactile plastics making it and monthly payments of £319.81. more akin to models higher up in the However, that premium price tag does IN THE FUTURE AND HAVE Mercedes-Benz range. deliver improved quality, more technology, ALREADY SEEN A SHIFT IN THE MARKET Mercedes-Benz’s early finance offers for increased space and it is enjoyable to drive. the A-Class suggest that they may have to The new A-Class is both grown-up and TOWARDS THIS ROOPIN MASHRU, MERCEDES pay for such a premium feel. The online young-at-heart. STEPHEN BRIERS

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FP_AM_373620id3483284.pdf 16.05.2018 15:15 SHOWROOM LONG-TERM REPORTS HONDA CIVIC 1.0 VTEC TURBO SR

REPORT PROGRESS

REGISTRATIONS YTD (TO APRIL) 4,473 (SOURCE: SMMT)

SEGMENT SHARE 5.01% (SOURCE: SMMT)

PCP PAYMENT £366.69, 36 MONTHS, 10,000 MILES, 5.9% APR, £0 DEPOSIT, (CIVIC SE)

55.4 MPG (OFFICIAL) CIVIC RECEPTION: MOTORING PRESS PILES ON THE PRAISE

onda has pulled an ace from the the car up hills. But because it needs high additional length and stretched wheelbase INTUITIVE H pack with its 10th interpretation of boost to make its power and torque, there’s means greater front headroom and INFOTAINMENT the Civic. Its mainstay in the lower definite lag across the rev range, especially more rear space and, without an estate SYSTEM. SYNCS medium sector has become as much a part below 3,000rpm.” version, the boot space is generous, at WITHOUT PROBLEMS TO of the motoring environment as the Jazz, Most titles point out the lack of a hybrid. 478 litres. MY FAR-FROM- which is the best-selling model in the Of the Civic’s five trims, the entry level is In terms of a verdict, the consumer press LATEST-MODEL Japanese carmaker’s range. judged as not worth considering by What sings from largely the same hymn sheet – IPOD The consumer motoring press has done Car? as you don’t get a radio or air-con. SR like its key rivals, the Ford Focus, Vauxhall its part to put the Civic on buyers’ shortlists, is the pick of the bunch, adding leather- Astra and Volkswagen Golf, the Civic is with titles such as Top Gear, Auto Express, trimmed steering wheel and gear knob, practical to own, efficient to drive and Autocar and AM’s sister title, Parkers, all automatic wipers, driver seat lumbar comes from a strong heritage, but if you AT JUST OVER giving the Civic an 80% approval rating. adjustment, powered mirrors and a want a car that is ‘highly styled’ and uncon- 40MPG SO FAR, I HOPE TO SEE “Back with a bang,” said Auto Express. reversing camera. An upgrade from SE to ventional looking, choose Japanese. ITS FUEL Plus points are awarded to the 1.0-litre SR will make no difference to the “Overall, it’s more powerful and efficient EFFICIENCY engine as the most fuel-efficient choice, insurance group, both coming in at 15, than before, and certainly more accommo- IMPROVE emitting the lowest CO2 (a strong contender points out Auto Express. The SR trim is its dating, making it a compelling choice TOWARDS THE for a company car choice list), refined and recommended choice. against the mainstream opposition,” MANUFACTURER- surprisingly responsive, belying the stated From a practical point of view, the concluded Parkers. JEREMY BENNETT STATED COMBINED 0-62mph figure of 10.9 seconds. FIGURE OVER THE Top Gear expressed concerns, however: CURRENT MILEAGE 0 1 7 8 7 START MILEAGE 0 1 2 7 9 COMING WEEKS “The 1.0 certainly has enough urge to get GUESS THE CAR COMPETITION

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TO PLACE AN AD TALENT Call the recruitment/classified ad team on 01733 366473 RECRUITMENT or email [email protected] Service Manager Newmarket Harley-Davidson. £32k OTE Passionate about Motorcycles? Passionate about providing an ultimate customer service? We require a Service Manager with previous experience to join our established team at our Newmarket Harley-Davidson dealership. The remuneration will depend on experience, the ideal candidate will have relevant experience gained within a Customer Service environment and will be an enthusiastic, dedicated individual who can demonstrate an ability to exceed our customers’ high expectations and have a passion for Motorcycles along with a mechanical understanding. Reporting to the Aftersales Manager, the key responsibilities are: • Control the day to day running of the Service Department, achievement of Retail, Internal and Warranty labour sales volumes • Achieving Workshop Productivity and Efficiency to planned targets. Interpret both external and internal customer needs and supply advice and guidance to customers through knowledge of the product to maximise labour sales • Maintain accurate and timely execution of all documentation, and adhere to all company control procedures as required • Development and adherence to all of the company operating and administrative policies and procedures • Ensure that Health & Safety is adhered to by staff and visitors to the Service Departments • Book mechanical service, tuning and aesthetic improvement works for customers ensuring that all booking procedures are adhered to • Maintain the daily workshop loading and collection/delivery diaries and maintain a close contact with the workshop during job progress • Follow the process to ensure the highest customer CXI is achieved • Control and measure eDynamix Vehicle Health Checks and Service Plans • Ensure that 48 hour pre service calls and prospecting is carried out daily • Contribute to the principals of Continuous Improvement through contributing to the development of all company operating and administrative policies and procedures • Maintain good customer relationships and resolve any problems, which may arise immediately • Ensure all internal and external correspondence is dealt with promptly and efficiently • Warranty Claims & Administration • Liaise with all Departments The successful candidate will: • Hold a Full UK Motorcycle Licence • Have the ability to describe mechanical work required • Understand that we are in a service environment and weekend working is a part of the role • Have a desire to be close to our Customers (we ride too, and we regularly attend events and social meetings) • Genuinely want to create a dealership environment where our Customer desire to return to time after time • Have strong interpersonal and communication skills • Be self-motivated, ambitious, professional and forward thinking • Be focused on achieving goals • Be a team player • Enjoy and be Passionate about Bikes In return, we will offer an attractive salary. Also, with our leading position within the motor industry, there are excellent opportunities for further career advancement and industry-led training. This role is based at Black Bear Lane, later this year we will be moving to brand new premises within 2 miles from our existing site, you could be a part of the most successful H-D dealership in the UK, If you are interested in applying for this role, please email [email protected] Industry professionals share t

nowledge is power, and businesses need as much expert advice and insight as possible to succeed. For senior managers in franchised dealerships, who are ultimately K responsible for a multi-faceted service, retail and business-to-business operation, that need is even more pronounced. This is where AM’s Executive Panel can be of real help. The Executive Panel is made up of AM commercial partners who are all experts in their key industry segment – segments that can have a major influence on a motor retail business’s bottom-line profitability and customer experience.

VIDEO VALETING

How HD imaging Get ready to retail helps the digital dealer with Autoclenz

By Adam Price, founder, AutosOnShow.tv By Martin Peters, sales director, Autoclenz Group

Consumers are completing more of their Your used stock can be appraised, purchase journey online than ever before. SMART/Bodyshop repaired, valeted and The forecourt is the final link in the chain imaged within 72 hours of arriving on where the deal is done. site – this is a reality with Autoclenz and The trend will continue to evolve, with our fully managed outsourced solution. motorists gaining more confidence in With our specialist operational online channels, and dealers must move management and IT systems, we can quickly to take advantage of the digital create efficient workflows, processes opportunity. Consumers want the ability to deal more and transparent financial control. online, and along with review sites and comprehensive The Autoclenz PVMS (Paperless Vehicle Management descriptions, it is vital to offer high-definition images and System) is the ultimate tool in controlling the movement video to build trust and transparency. of your stock through the valet, preparation and In a dealership, the role of video is not limited to sales imaging process, while controlling spending. We can – it is being used more and more in the service process. set spending limits via the “Gatekeeper” platform to Interaction with this content can also be analysed to prepare on budget. This “Gatekeeper” function can inform where to improve the customer journey – taking a save up to 3% on like-for-like annual expenditure by holistic view is essential in creating a seamless customer controlling duplications and incorrect code bookings. experience. PVMS is live, showing jobs awaiting, progressing and Consumers want to be able to move from laptop to completed through the valet bay. This also helps mobile and website to social media with consistent brand resourcing the process through busy times. touchpoints. High-quality images can help to maintain a SMART repair through our on-site SMARTshop premium experience, whatever the platform. solution bridges the gap between typical SMART In a dynamic market, customer satisfaction is critical, repair and bodyshop, ensuring any stock stays on site and a transparent sales process will lead to happier and can be processed efficiently. Imaging, linked with consumers for both new and used vehicles. our partner’s platform, AutosOnShow, also progress Introducing images and video through the car-buying through PVMS, giving complete transparency to the full journey has never been easier. AutosOnShow has process of refurbishment, through to ready-to-retail continued to invest in the latest tools to ensure the status and going live for sale on your website, all platform is easy to use. within a controlled budget. Dealership staff can easily and consistently image a Link PVMS with AutoclenzMI to evidence our service vehicle and automatically display it on online retail delivery and you have the best IT to manage vehicle platforms in minutes. The innovative video solution preparation on budget, on time and to the right quality. enables the dealers to choose how they would like to n For more information on the difference Autoclenz video their vehicles – a full guided video, 360-degree can make to your business, please call Lucy on 01283 external walkaround or 360-degree internal view. 554 682, or visit our website: www.autoclenz.co.uk

60 JUNE 2018 am-online.com re their best advice on motor retail issues

FOR THE LATEST INFORMATION FROM DEALER SUPPLIERS VISIT: am-online.com/news/supplier-news/

AUCTIONS SHOWROOM

New BCA Buyer App Why good coffee is helps customers a business necessity

By Stuart Pearson, COO, BCA UK Remarketing By Chris Palmer, founder, XpressCoffee

BCA is developing a new mobile Buyer Did you know it takes 42 coffee beans to App following a period of extensive make an espresso? research and prototyping with more than Coffee is a necessity for some and a 1,000 of our customers, both online and luxury for others, but it is a passion for face-to-face. Xpress Coffee. Successfully supplying a Our customers told us that they needed wide range of branded coffee machines easy access to live information about and beans to clients across the UK, it is vehicles and the running order on their that passion that drives Xpress Coffee to mobile device, so they never miss an opportunity to bid ensure every one of our cappuccinos, lattes, Americanos, on the vehicles they are interested in. We are using agile espressos or flat whites are the very best they can be. product development methods that allow us to refine and The quality of refreshments on offer is important in enhance our digital tools quickly and incorporate the almost any business environment. How many times have changes our customers suggest. you been offered a hot drink only to be disappointed in The BCA Buyer App gives buyers the tools they need to its taste or quality? do their job more efficiently and will improve both the Customer experience is of primary importance to any physical and digital buying journey. dealership and this is where Xpress Coffee firmly Our customers have a diverse set of needs and believes that your customers are also our customers, so it creating a more personalised service is a priority as we is only right that providing the highest level of service look to enhance the experience across all channels and reliability to you, in turn provides the best hot including physical auction, Live Online, Bid Now/Buy beverage experience possible to them. Now and eAuctions. Xpress Coffee has successfully supplied and supported The initial offerings within the BCA Buyer App will dealerships across the automotive spectrum, from Honda provide tools for both physical and digital customers to to Rolls-Royce, for more than 10 years and has undertaken make the buying process easier. We will continue to extensive refreshment and relaxation research with many improve and enhance the app based on customers’ trials to understand what different customers value with feedback, to ensure it delivers the ongoing convenience different brands. We know your market and what your and functionality that they require. customers value as part of their dealership experience and BCA are committed to delivering a constantly evolving the coffee culture is now an integral part of that. Where a and improving digital experience across all of our ‘bean to cup’ self-service machine may be right for one, a products by putting our customers right at the heart of full barista Italian theatre service may be right for another, the process. with others in between. n For more information on the latest news and n To talk to us about how Xpress Coffee could help insights from BCA or to find out more about buying support your dealership to enhance your customer and selling with BCA, please visit bca.co.uk or email experience, we would be delighted to hear from you: [email protected] www.xpresscoffeeuk.co.uk

am-online.com JUNE 2018 61 TALENT PEOPLE DEVELOPMENT ONLINE SALES: SHOULD DEALERS RETRAIN OR REPLACE STAFF? Salespeople need new digital skills, but experience should not be overlooked

he motor retail sector has been THE ABILITY TO director, said: “We are looking for ‘people’ talking about ‘the death of the people, who are great communicators and DIGITAL SALES DIGITAL T salesman’ for many years, but DEAL FACE-TO- engage with customers, however they they are still very much alive and kicking. FACE WITH choose to connect. After this, most While the commission-based model still CUSTOMERS IS importantly it’s the speed of response. We reigns supreme, dealers are increasingly STILL CRUCIAL, want people who will respond quickly appointing so-called product geniuses, a to enquiries.” new breed of showroom employee, who AND THE ADVENT When recruiting angels, Rockar provides customers with information OF NEW SKILLS, purposefully appoints non-industry people as required. WHILE IMPORTANT, and does not pay commissions and Dealers have been adapting their IS NOT THE BE ALL bonuses. It has attracted a completely operations to an increasingly digital retail different profile of employee. experience – Capgemini’s 2017 Cars AND END ALL Sewell said: “We have had student Online report, which questioned 8,000 GUY LIDDALL, doctors and lawyers working in our consumers worldwide, found 42% of MOTOR TRADE SELECTION stores and their communication skills are consumers were ‘likely’ or ‘very likely’ to extremely good. I think dealers today buy a car online in the future. need a mix of people, so you have those As a consequence, sales executives New models for new staff who come from a traditional background have had to acquire new skills, from with those who have the digital skills suppliers such as automotive trainer In many ways, dealers have already modern automotive retailing demands. Martec Europe, whose ‘driving online adapted to the new digital era. Most “It’s not just about the people. It’s performance’ course is designed to help recently, sales executives have had to understanding your customers. We are sales staff manage virtual conversations. learn video skills to fulfil customer living in a 24/7 world, but manning your demand for visual communications. digital retail operation round the clock ‘It’s essential dealer groups retrain’ Video platform providers CitNOW isn’t practical. The analytics will tell you provides on-going training to its clients. the peak times, which means dealers can Elaine Ashworth, a former director of the Nick Pratt, global academy director, said: target their resources accordingly.” AM Award-winning Peter Vardy Academy, “The training required for online sales Guy Liddall, the managing director at who now runs her own consultancy and depends largely on the skills of the recruitment agency Motor Trade training company, Automotive Business individual. The newest generation of sales Selection, said the issue is recruiting high- Results, said dealer groups should retrain staff, leaving school and college to enter calibre people in the first place: “For staff in preparation for further digital the motor industry, are likely to have a many dealers, the ability to deal face-to- changes. sound knowledge of how to use a face with customers is still crucial, and “A greater proportion of the transaction smartphone, but confident presenting the advent of new skills, while important, is now completed digitally or over the is a skill that grows throughout is not necessarily the be all and end all. phone, with customers doing research, someone’s career.” “Many dealers report difficulty in conducting online chats, speaking to At Rockar, the digital automotive retail recruiting the right staff in any case, so online advisers and so on. The skills business partnered with Hyundai, adding another difficult skill to the mix needed are not ones that traditional ‘sales Mitsubishi and Jaguar Land Rover and does not necessarily make recruitment people’ in the automotive sector have, so which has recently teamed up with Ford to easier. Having said that, there are some it is essential that dealer groups retrain take space in high street fashion store very good examples of dealers who have existing sales people, redefine roles and Next, store staff called ‘angels’ are rapidly adapted to this changing re-think the recruitment profile and recruited with an emphasis on personality. technology and are being highly structural strategy.” Martin Sewell, Rockar’s managing successful.” DEBBIE KIRLEW

BUILDING IMI VEHICLE SALES THE IMPACT OF DIGITA L TELEPHONE & WEB DIGITAL ON SALES, CULTURE E N Q U I R Y SALESPEOPLE A guide to successful CONVERSIONS AND SALES digital transformation, this A one-day, fast moving course to ORGANISATIONS book won the Chartered get the most from verbal Advice that helps salespeople Management Institute’s communication, highlight the most be better prepared and more Management Book of the common mistakes and provide engaged with customers through Year in 2018. credible solutions. digital channels.

RESOURCES www.am-online.com/ BuildingDigitalCulture www.am-online.com/IMIcourse www.am-online.com/SalesAdvice

62 JUNE 2018 am-online.com TALENT ON THE MOVE ADVERTISING FEATURE Feel-felt-found is a

Directors of Arnold Clark and Marshall Motor Holdings (MMH) left the franchised motor retail sector during May. great way to sell Stewart MacAulay, a director of Arnold Clark, the AM100 Here’s another great telephone technique you retailer where he spent 30 years of his career, became can use to overcome your customers’ objections Group Autoparts director, based at its head office to making a showroom appointment, says in Glasgow. Simon Bowkett of Symco Training Autoparts began in 1991 as part of Arnold Clark and has since grown to 12 branches across Scotland and the north Last month, I showed you a great STEWART MACAULAY, of England, including a 70,000-square-foot distribution way to overcome objections when GROUP AUTOPARTS warehouse in Glasgow. you call a customer to tempt them MacAuley’s responsibilities now include overseeing the into changing their car: “A lot of my successful running of all factor businesses within the group customers said the same thing, until…” and ensuring their continued success and development. However, that won’t be appropriate He said: “I am looking forward to playing a more specific in every case. What about a customer role within the factor businesses – Autoparts UK and who has had a bad experience with a brand or Midwest Motor Factors – and working to ensure we dealership, for example? “I hate [brand of car or take advantage of any opportunities to develop our dealership] and I’d never buy from them again.” proposition further.” “A lot of my customers said that” is not going to Christopher Sawyer retired from his post as a non- cut it. Instead, you may want to try the ‘feel-felt- executive director of Marshall Motor Holdings on May 23. found’ technique. Here’s how it works. Kathy Jenkins, group HR director at Marshall of CHRISTOPHER Cambridge Holdings (MCH), joined the board as a SAWYER Word track non-executive director following Sawyer’s departure, First we need to find out what went wrong, then meaning three of the eight positions on the board are now apologise by saying: “Sir, I’m sorry about that. I filled by women. understand exactly how you feel. In fact, if I was in Sawyer will also retire from his positions on the company’s audit, remuneration and nomination committees. your I think I would have felt exactly the Jenkins will join the remuneration and nomination same. Until I found out that my manager really committees and Christopher Walkinshaw, MCH’s other hates having unhappy customers. It’s not good for nominated director, will join the audit and nomination business. And sometimes he has a reputation for committees. throwing money back at customers in the form of a Peter Johnson, the chairman of MMH, said: “I would like good deal, to see if we can win their confidence to thank Christopher for his support and contribution to the back. Now I can’t promise you anything, but I’d love group over the past three years since our IPO.” to get together and see if we could at least tempt you. You might be pleasantly surprised.” You can use this in many difficult situations, and that’s what my free sales training video on the AM website this month (am-online.com/symcotraining, or at www.symcotraining.co.uk) is all about.

Earn £10 – £15 for every call you make This and the technique I showed you last month should be enough to deal with most objections when you are making a prospecting, or account MARGARETA JEREMY TOWNSEND, MAHLSTEDT, ANTHONY MACHIN, management, call to people who have bought a car PORSCHE CARS GB GLASS’S from your dealership before. They won’t work every time of course, but you may as well try it before you hang up the phone. If Jeremy Townsend has Porsche Cars GB has Anthony Machin and you can get just a 10-15% hit rate, you’re going to be been appointed as appointed Margareta Jonathan Dolden have earning £10-£15 on average for every prospecting communications director Mahlstedt as general joined Glass’s, as the data call you make. You can easily calculate the amount at Vauxhall Motors, manager, marketing. specialist looks to boost you earn per prospecting call by dividing the replacing Denis Chick. She leaves her current its innovation and insight. Townsend joined from role as marketing director Machin has more than amount of additional commission you earn from Renault, where he had at Porsche Cars Canada, 20 years of experience in selling to these customers by the activity, or number held senior positions in succeeding Ragnar Schulte, the sector, having worked of calls, you have to do to earn it. sales and marketing, who has taken a role at with BCA, VW, Honda and Because that’s what it’s all about – the activity. Get most recently as Porsche in Stuttgart. JLR, and takes a new role that right and the results will look after themselves. communications director. Mahlstedt has held as head of content. Townsend will help to senior positions at BMW/ Dolden, Glass’s new Visit our website for a free training trial implement Vauxhall’s Mini and Volvo Cars. She head of product, has To find out how our low-cost, IMI-approved online PACE! strategy – a plan will report to Alexander previously worked for the training programme can help train your team, visit to return the business Pollich, managing director FT, Orange, Quadriga and symcotraining.co.uk/freetrial and start your free trial today. to profit. of Porsche Cars GB. Thomson Reuters. am-online.com JUNE 2018 63 PORTFOLIO WHAT WE DO IN YOUR INDUSTRY

AM magazine Your monthly publication, in print and digital form, brings the latest news insights, market intelligence and in-depth interviews with franchised dealers and the heads of manufacturer national sales companies. Every issue also tackles a specific topic of dealer operations and gathers inspiration for readers from sector experts.

Independent Dealer magazine Essential reading for anyone managing an independent used car retailer, Independent Dealer is published every spring and autumn. The spring edition brings you the ID50 rankings and analysis of the largest used car retailers in the UK. The autumn edition shares best practice to help readers understand where the growth opportunities lie. AMAM AwardsAwards MoreMore thanthan 1,0001,000 peoplepeople gathergather eacheach yearyear atat thethe ICCICC inin BirminghamBirmingham toto seesee thethe UK’sUK’s bestbest inin motormotor retailretail rewardedrewarded withwith a prestigiousprestigious AM Award. MoreMore thanthan 2020 trophiestrophies areare presentedpresented duringduring thethe galagala dinner,dinner, inin categoriescategories forfor dealersdealers andand carmakers.carmakers. EveryEvery winnerwinner isis celebrated,celebrated, culmi-culmi natingnating inin thethe headlineheadline awardsawards ofof RetailerRetailer ofof thethe Year,Year, BusinessBusiness LeaderLeader ofof thethe Year,Year, ManufacturerManufacturer ofof thethe YearYear andand HallHall ofof Fame.Fame.

This free-to-attend networking and business improvement club is exclusively for directors of franchised dealer groups. AM conferences Its meetings are quarterly, confidential, and always bring inspiration from a Inspiring case studies, sector specialists’ advice, non-automotive guest speaker. Past peer networking and interactive problem-solving presenters have included a director of workshops all feature in AM’s conferences customer service at John Lewis, a head of designed to support motor retailers in their HR at the BBC, a co-founder of budget thirst for knowledge. Our recent conferences airline BMI Baby and a head of event have tackled critical areas such as people and services at the London 2012 Olympics. skills, digital marketing and technology, customer service and regulation of F&I.

Profitability, growth and acquisitions are regular subjects of conversation at the annual AM100 gala dinner in London. It is here that AM presents the latest AM100 rankings of the UK’s largest franchised dealer groups, and previews its AM100 supplement, complete with analysis of the trends.

AM-online A daily source of UK motor retail news, insight and opinions for franchised and independent dealers. Register to receive our daily newsletter direct to your email inbox, and on Saturday a digest email brings you the most important news of the week.

Automotive Management Live The success of our newest event, combining an exhibition hall packed with more than 60 exhibitors with best practice work- shops spanning important aspects of dealer operations, has prompted a decision to move it to the National Exhibition Centre at Birmingham in 2017. As ever, it will remain free for all franchised and independent dealers to attend. TALENT CONFERENCE REPORT

Karen Hilton, carwow’s head of sales, takes to the AM DigiTech stage

most traditional car dealers see in a week.” Both men highlighted the “massive profit opportunity” open to franchised retailers who ‘YOU HAD TO ADAPT IN adapt to the market quickly and challenged dele- gates to embrace the changes. Sewell said Rockar, founded by Simon Dixon, its , chief executive, in 2014, had proved customers THE PAST I’M SURE YOU were ready to buy new cars online and suggested it was time for retailers to acknowledge the shift. “In our three years trading, we’ve had 1.4 million WILL IN THE FUTURE’ store visits,” said Sewell. “With Hyundai, we were the brand’s third- biggest-selling retailer in the country and we EVs and online sales will bring dealers massive disruption, remained in that position until the day we left. “Little Rockar, in the South East of England, has but also profit opportunity, delegates at DigiTech heard sold 4,000 cars through our omni-channel busi- ness model and 65% of them are online. predicted 20-fold increase in the Tom Callow, Chargemaster’s director of “Your customers are ready for this kind of volume of EV sales in the next five communication and strategy, and Martin Sewell, car buying experience, but you don’t provide it A years and an online sales revolution the managing director of Rockar, took to the stage or the manufacturers you represent simply are that could spark “the most dynamic in Milton Keynes. not ready.” decade the industry has ever faced” – AM DigiTech Sewell highlighted the benefits of his Despite being bullish about its sales results at offered delegates an insight into two potentially business’s omni-channel approach to retail, Hyundai stores in Bluewater, Kent, and Westfield, disruptive influences on new car retail when stating: “We see more visitors in 10 minutes than in Stratford, Sewell and Dixon’s vision for the

‘DESIGN EVERYTHING THE PURCHASE JOURNEY WITH AROUND THE CAR BUYER’ DIGITAL ‘SIGN ANYWHERE’ OPTIONS Businesses succeed when they give Digital tools help to improve the customer journey and consumers what they want, in the provide finance options that consumers really want, way they want it, said Chris Penny, said Jason Turner, head of franchise development at franchise brand director at Auto Barclays Partner Finance, who outlined how a digital Trader. That should be the focus in ‘sign anywhere’ solution can be used in any sales every channel, he said, rather than process to help give customers a consistent, compliant worrying about how you can get and frictionless purchase journey. better at digital retailing. “Look at everything through He believes dealers will follow the lead of furniture and home a consumer lens. Really design everything around improvement retailers, which have shifted from high APRs to low-rate the car buyer,” he said. or 0% finance as marketing tools to drive an increase in sales. Beware of confirmation bias, where people find Online retail is allowing consumers to find what they want, best facts to support their beliefs, to show they have the suited to their specific needs, said Turner. “There will be 10% of right plans and ideas. The best businesses constantly consumers who will always want to do everything online, and 10% who examine all the evidence in the market to try to prove will want to do everything on-site. Then the 80% left will do bits when BRIEF INSIGHTS themselves wrong, he said. they feel comfortable with it,” he said.

66 JUNE 2018 am-online.com Rockar business is as a facilitator, rather than a Rockar hopes to licence its online retail plat- Headline sponsors Co-sponsors retailer of cars. form to franchised car retailers and facilitate a Sewell told the conference that the business wider shift to the high street. intends to operate only the Jaguar Land Rover Sewell said: “The idea was always to take the site, at Westfield, on an ongoing basis, main- car to the people”, adding: “This is going to be the taining the business as a “flagship facility”. most dynamic decade that the automotive In November, Rockar announced a partnership industry has ever faced.” with Mitsubishi, which will see it consult on the recruitment and training of staff for 12 UK stores, The unstoppable rise of EVs along with providing its online retail platform. In March, it announced a further, similar The products that retailers are selling are likely to collaboration that brought together Ford and change even faster than the sales model, according Next, initially with a retail space at Manchester’s to Callow. Arndale Centre, which will open in July. “Five years ago, Nissan started manufacturing Sewell said: “Those manufacturers that get on the Nissan Leaf at its factory in Sunderland. Back board really quickly are going to secure then, there were just over 4,000 electric cars on themselves some great retail space to support UK roads. Today there are 148,738”, he said. their dealer network. The two things have to “Five years ago, one in 862 cars was an electric work in tandem. vehicle. Today it’s more like one in 50 and in the “Having come from a manufacturer platform, latter months of last year that was closer to one I know that you have got to have a profitable in 40.” sustainable distribution network to Callow told delegates that just under 50,000 new remain viable.” EVs sold in the UK during 2017 and Chargemaster Sewell said some of the advantages of opening expects that to rise to just under 70,000 this year. car retail locations on the high street were He insisted that the only obstacle is supply: brought into sharp contrast through its work with “There is no demand constraint at all”. Hyundai. Chargemaster estimates that the number of EVs Cameras over the doors in its Hyundai stores on UK roads will reach one million by the end of helped to track the number and make-up of 2022 – still just 3% of all cars in the UK – and to customers, helping to establish that the average about one in six vehicles, or about 17%, by 2027. age of a customer was 39, as opposed to 54 in From just 10 available EV models five years ago, the wider retail network. A total of 54% of visitors Callow said there were now nearly 60 available to were female. consumers. He said that number would double Sewell said: “Some research done last year over the next two years and triple to about 150 in identified that 70% of female car buyers don’t like the two years after that. visiting car showrooms on their own and, inter- Chargemaster is one of the UK’s leading estingly, the same [proportion] of men aged providers of charging infrastructure solutions and under 30. is installing its Luton-built charge points at stra- “Someone in a shopping mall is not someone tegic locations across the UK. that is in the car market today, so you have to treat Callow said there were about 3,000 three-point- them very differently to the way you would treat a plug charge points for EV cars in the UK five years customer that has walked into a dealership.” ago, a figure that has now increased to He said the fact that Rockar’s staff are not about 15,000. paid a bonus and are not on commission, He added: “There’s 70,000 fuel filling points results in “a pressure-free environment that across the UK, but there are 100,000 dedicated appeals to customers that a manufacturer might charge points at people’s homes, and that’s not reach otherwise”. where 80% of people charge their vehicles.

CONSUMER CAR-BUYING GET YOUR INTERNAL TRENDS IN 2018 IT SYSTEMS RIGHT According to carwow’s data, “Choose the tools that help diesel sales levelled out at 36% you understand and in 2017, meaning dealers need manage your environment to apply the fundamentals of consistently, securely and supply and demand even more with minimal effort,” said strategically, said Karen Hilton, Gary Smith, managing commercial director. director of Optimising IT. “Smarter dealers are offering more competi- Dealers should consider both customer tive pricing on diesel cars to help stimulate requirements in the showroom, and what consumer interest and retail their way out of the experience they are providing. Wi-Fi speed, surplus stock.” However, with petrol demand protection and segregation from the corpo- increasing, she said “dealers should be seeking rate network should all be considered. to retain more margin in petrol models”. He said staff can also be affected by poor The challenge for dealers, she added, is being IT support, which could result in individual this granular in their marketing. downtime and lower morale.

am-online.com MONTH 2017 67 TALENT CONFERENCE REPORT

LEARN FROM WIDER ONLINE RETAIL SECTOR Car retailers are and online interaction.” having to keep up In a survey tracking the car- with the best in buying journey of 2,500 consumers, online retail Modix found 95% of their research practice to ensure was carried out online and 65% was they attract on a smartphone, but few buyers customers to their completed the transaction that way. showrooms, said Andrew Haywood, Haywood said: “The purchase head of performance management process hasn’t changed – 95% of at Modix. car purchases still happen at the He said: “Customers online are no dealership.” longer simply looking for a The survey identified high points, particular product in their online such as when customers met a searches, they are looking for the knowledgeable salesperson and ‘best travel website’ or the ‘best during the handover, but saw a dip restaurant’. in experience when the finance “Only the highest-ranking busi- arrangements were being made. nesses gain traction online now, so Haywood said: “Where we can retailers really need to be paying facilitate a customer with an online close attention to their online platform, an iPad for them to work presence. Not just the functionality through a process themselves, that of their websites, but their reviews is seen as a huge advantage.”

DEALERS MAY DITCH B2C MODEL FOR B2B KPMG’s Global outcome will be rather more to the Automotive Execu- bottom end of that range,” he said. tive Survey 2018, However, Benson went on to say

BRIEF INSIGHTS which found up to that 50% of consumers would no half of UK dealer- longer want to own a car as of 2025, ships could close by which should prompt car retail 2025, attracted a lot groups to consider changing from a of attention when AM reported on it. business-to-customer (B2C) model, Some 75% of the survey’s 907 to business-to-business (B2B). executive-level respondents said He said: “The majority of UK auto- that between 20% to 50% of the motive executives are convinced the bricks-and-mortar automotive only means for dealers to survive is retail sector could disappear in just by restructuring into a service seven years, but Justin Benson, UK factory or a used car hub. head of Automotive at KPMG, told “This is certainly a warning sign delegates that he does not believe for physical retailers and presents a the future is quite so bleak. need to rethink retail concepts and “It is my belief, my hope, that the business models.”

“Why is that? If you had a fuel pump at He claimed a near-identical vehicle identified in home, would you ever visit a filling station the retail market on the day of the conference again?” was being advertised for £15,000. The growth in EV infrastructure and the sheer He listed others – a battery-inclusive Renault choice of vehicles available to consumers is Zoe, £9,500, retaining 47% of its original price after already fast-forwarding the growth of alternative three years; a Tesla Model S, retaining 65% after fuel vehicles (AFVs), according to Callow. four years; and a BMW i3 at 46% after four years. He said: “Motors.co.uk observed that EVs were “You are going to lose some money from much faster-selling than in Q1 last year and servicing, there’s little doubt about that. There are demand is rising. Demand for the Hyundai Ioniq fewer moving parts in an EV, there are fewer has increased by more than 200% last year to things to go wrong,” he said, citing a Kee this year. Quarter to quarter, you’ve got Nissan Resources study that predicted a 30% drop in Leaf over 500%, the Renault Zoe [up] 1,000% and service, maintenance and repair (SMR) on EVs. it goes up and up…” “As dealers you’ve had to adapt in the past, I’m Highlighting an apparent discrepancy between sure you will in the future. reported residual values and actual EV prices in “The key point that emerges from a look at the Headline sponsors Co-sponsors the marketplace, Callow cited KeeResources market, and the real-life value of used EVs is data, which suggested that after 36 months and clear. There exists a missive profit opportunity 30,000 miles a Nissan Leaf Acenta would be out there for car retailers and not embracing that valued at about £7,000. now would be a huge mistake.” TOM SHARPE

68 JUNE 2018 am-online.com Thank you to the following companies for their contribution to digitech 2018

Point of Sale Finance New car sales online New & used car sales for the motor portal online portal industry Visit: carwow.co.uk Visit: autotrader.co.uk Visit: barclayspartnerfinance.com E: [email protected] E: [email protected] E: motorsalessupport@ T: 0203 854 0151 T: 0345 111 0003 barclays-loans.com T: 0844 811 7777

Digital marketing Live chat software Automotive web design solutions for the and dealership text & digital marketing automotive industry solutions Visit: autowebdesign.co.uk Visit: modix.co.uk Visit: contactatonce.com E: [email protected] E: [email protected] E: [email protected] T: 01757 211 700 T: 0333 444 0351 T: 0333 666 5483

Automotive retail Car care paintwork Telephone answering software solutions protection and live chat for Visit: enquirymax.com Visit: gardx.co.uk dealerships E: [email protected] E: [email protected] Visit: moneypenny.com/uk/ T: 0113 280 6770 T: 01243 376 426 E: [email protected] T: 0333 202 1005 TALENT INTERVIEW AM, Media House, Lynch Wood, Peterborough PE2 6EA Email: [email protected] THIS MONTH’S QUESTION TO THE AM TEAM: EIGHT QUESTIONS TO... What was your first pet? EDITORIAL Editor-in-chief Stephen Briers 01733 468024 [email protected] A blue budgerigar called Merlin Editor Tim Rose 01733 468266 A HEAD OF [email protected] A guinea pig called George News and features editor Tom Sharpe 01733 468343 [email protected] DIGITAL PRODUCT A big, aging Springer Spaniel called Merry Head of digital/associate editor Jeremy Bennett 01733 468261 [email protected] Puddy – a cat of course MARKETING AND Web producer Elizabeth Howlett 01733 468655 [email protected] A ladybird with one spot called Conner PRODUCTION E-COMMERCE Head of publishing Luke Neal 01733 468262 Hammy the hamster Production editor Finbarr O’Reilly 01733 468267 Phil Regan, Vertu Motors, on A goldfish called Jaws Senior designer Erika Small 01733 468312 why confidence is so important A Yorkshire Terrier called Tigger for motor retail’s exciting first CONTRIBUTORS Daniel Cook, Matt De Prez, David Francis, steps in e-commerce Robert Forrester, Debbie Kirlew, Jim Saker, Tom Seymour, Craig Thomas, Alex Wright ADVERTISING Commercial director What are the main responsibilities of your role? working in a sector which is embarking on its Sarah Crown 01733 366466 REGAN: As the head of digital product marketing and e-commerce journey and for a company who is leading Group advertisement manager Sheryl Graham 01733 366467 e-commerce at Vertu Motors, I am responsible for the way, with the first used car e-commerce platform. Head of project management achieving sales growth across our digital platform What could be more exciting? Leanne Patterson 01733 468332 through launching and maintaining new products Project managers Kerry Unwin 01733 468578 with a leading user experience, targeted marketing What’s the most important thing you’ve learned in Chelsie Tate 01733 468338 activity and ensuring we have data to track, review your career, and how have you made use of it at your Niamh Walker 01733 468327 and learn. company? Account managers Sara Donald 01733 366474 With the team, I am also responsible for ensuring our REGAN: To test and adapt. There is no magic formula Kelly Crown 01733 366364 digital product offerings are constantly evolving and for digital product marketing. Although all of the basic Kate Atkinson 01733 366473 improving to match our customers’ requirements and principles are the same, each sector, brand and Recruitment enquiries 01733 366473 expectations. audience performs differently depending on the EVENTS Event director Chris Lester channel and messaging. It’s important not to make Event planner Nicola Baxter 01733 468289 What are the most significant challenges ahead in assumptions of how consumers will act, but to test and PUBLISHING your field of work? adapt based on their behaviour. Managing director Tim Lucas REGAN: The automotive industry is only just embarking Digital marketing and technology is moving forward Office manager Jane Hill 01733 468319 on its e-commerce journey, particularly within the at a fast pace, but consumers aren’t always moving at Group managing director Rob Munro-Hall Chief executive officer Paul Keenan used car market, as consumers become more familiar the same speed. Without testing, opportunities and Subscriptions with researching and purchasing significant big-ticket entire audiences can be missed. MATT DE PREZ 01635 588494. Annual UK subscription £99, two years items online. £168, three years £238. Overseas one year/12 issues £149, two years £253, three years £358. The challenge now is to ensure the purchasing AM is published 12 times a year by Bauer Consumer Media Ltd, journey is one that the customer can trust, delivering registered address Media House, Peterborough Business Park, Lynch Wood, Peterborough, PE2 6EA. Registered no.: 01176085. a service where consumers can purchase a product, QUICK-FIRE QUESTIONS No part of the magazine may be reproduced in any form in whole or in part, without prior permission of the publisher. All material potentially without test driving. published remains the copyright of Bauer Consumer Media Ltd. We reserve the right to edit letters, copy or images submitted to the magazine without further consent. The submission of How might these challenges be overcome? What drives you? material to Bauer Media whether unsolicited or requested, is taken as permission to publish in the magazine, including any REGAN: Convenience plays a huge part in why we, as Seeing a positive impact – knowing that the licensed editions throughout the world. Any fees paid in the UK consumers, buy online. By ensuring we have the right effort you and the team are putting in is include remuneration for any use in any other licensed editions. We cannot accept any responsibility for unsolicited manuscripts, user journey, which provides confidence, having well paying off. images or materials lost or damaged in the post. Whilst every reasonable care is taken to ensure accuracy, the publisher is not priced and clearly displayed used cars, along with great responsible for any errors or omissions nor do we accept any What’s your favourite app? liability for any loss or damage, howsoever caused, resulting customer service, we are hoping to build the trusted, from the use of the magazine. Printing: PCP convenient service that customers are seeking. Untapped – an app for checking in and rating Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and beers. It’s simple, geeky and encourages me to endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to What attracted you to this area of expertise? try new beer – need I say more. contact us about editorial complaints and IPSO’s contact REGAN: Digital marketing isn’t the job I had in mind details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial when I left school, but it was an area I very quickly fell How do you relax? Complaints Policy is [email protected]. in love with while in my first sales and marketing role. British Military Fitness three to four days a Over the past 10 years, my passion for digital marketing week – there is nothing better than being has only grown by working in a variety of digital roles thrashed around a park in the rain and mud from account management, SEO, PPC, CRO and after a hard day’s work. And it burns off some of e-commerce, while working across a number of the calories, which I gain from using my different clients and sectors. favourite app. Automotive has always been an interest, but now I’m

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