Winter 2018 The

VoiceThe OfficialNFDA magazine for the Industry

In this issue... • AM Live Highlights

• Employment Law Update Winter 18

• First NFDA Electric Vehicle Dealer Attitude Survey Published

• NFDA Launches EVA Scheme for Retailers

• 2018 Industry Headlines ALSO INSIDE... • 2018 Round Up The Voice interviews Darren Edwards, ...and more! CEO of Sytner

Welcome to the Winter Edition of the Voice

In February, NFDA developed the Energy Saving Trust (EST). set the direction of our work - Drive My Career, a completely The scheme is open to all I encourage you to attend our new and unique, industry-first retailers ahead of the official 2019 regional meetings whose initiative aimed at highlighting launch in 2019. More details in dates and venues are included to young people the career the magazine. in The Voice. You will also find opportunities that the retail more information about the We have recently published automotive industry offers. upcoming Driving Digital 2019 the first ever issue of the During the first year of and NFDA Spring Ball. NFDA Electric Vehicle Dealer operation, the website saw a Attitude Survey. As this is a NFDA is your trade Sue Robinson significant growth in traffic with Director, NFDA fast-changing and relatively association: we represent, increasing engagement levels new area, we required a you benefit. If you would like Dear Colleague, across social media. This issue minimum 20% response rate to discuss any of the issues of The Voice provides a round- to be included in the survey. outlined in the magazine, Another challenging yet up of Drive My Career. interesting year comes to a Toyota topped the survey with please do not hesitate to close. The new car market is In November, we launched the highest overall average contact our member helpline likely to end 2018 in line with the pilot phase of Electric score across all questions. In on 01788 538303 or email initial forecasts, with a small Vehicle Approved (EVA): a the next issues of the survey, [email protected]. decline from last year primarily set of standards for retail and we expect response rate and caused by the confusion aftersales endorsed by the retailers’ participation to grow. surrounding fuel types and the Government’s Office for Low Our members’ input is vital to introduction of WLTP. Emission Vehicles (OLEV) and

NFDA 2019 REGIONAL MEETINGS: DATES & VENUES NFDA’s quarterly regional meetings take place across the UK to provide franchised retailers with an opportunity to discuss the most topical industry issues facing their businesses. These usually include: new and used car market, manufacturer relationships, aftersales, F&I as well as HR and employment.

MIDLAND SOUTHWEST NMDA COMMITTEE Hilton, Northampton Holiday Inn, Bristol 201 Great Portland Street, London

Thursday 28 March Tuesday 5 March Tuesday 12 March Thursday 6 June Thursday 20 June Tuesday 11 June Thursday 5 September Thursday 26 September Tuesday 10 September Thursday 5 December Wednesday 18 December Tuesday 10 December SOUTH NORTH Hilton, Cobham If you would like to attend Park Royal, Warrington Tuesday 19 March a meeting, please contact: Tuesday 26 March [email protected] Tuesday 18 June Tuesday 25 June Tuesday 17 September Tuesday 24 September Tuesday 17 December Tuesday 3 December NFDA COMMERCIAL NORTHEAST VEHICLE COMMITTEE Holiday Inn, York 201 Great Portland Street, London Thursday 14 March Thursday 21 March Thursday 13 June Wednesday 5 June Thursday 12 September Thursday 19 September Thursday 12 December Wednesday 4 December

2 Ten months of Drive My Career • Bridging the gap between young people and automotive retail Drive My Career was launched in February 2018 to reach out such as Have you ever thought about working in auto retail? to young people who may not consider automotive retail as an What sector of auto retail interests you most? What would you option for their career. The project highlights the key features of like to see on an auto retailer recruitment website?. The results the industry that people outside the sector are not familiar with. of our surveys are shared on a bimonthly basis with Drive My These include the variety of roles available, openness of the Career’s members. industry, in-house training most automotive retailers offer, and, in general, the exciting and long-term rewarding career options Partner companies involved available. There are now 856 dealerships on the interactive dealer-finder A gender-balanced audience Drive My Career’s map. Website’s users can now see all the companies that have signed up to Drive My Career on the One of the key goals of Drive My Career is to make people Partner Companies page available at www.drivemycareer.co.uk aware of today’s automotive industry openness and its under the ‘About’ section, giving the users a clear insight into increasingly diverse workforce as opposed to the traditional the dealer groups involved. views that the automotive sector is a male dominated field. Testimonials To achieve this, we have run several highly targeted campaigns that have helped us obtain a more gender-balanced audience. Groupe Renault’s Director of Total Customer Experience, Mark Months of tests and experiments have helped us refine our Crockett, recently explained to Auto Retail Profit that they see strategies and find the most effective images and words to Drive My Career as “complementing” their own recruitment appeal to a specific audience. This has been a steady progress platform and valued the attention Drive My Career places on NFDA 2019 REGIONAL MEETINGS: DATES & VENUES that we aim to improve in the upcoming year. advertising “all manner of different roles”.

Social media: ‘the’ channel to talk to young people “We have our own recruitment platform where we advertise the opportunities we have across our network and then that links Since Drive My Career started in February, social media out to key recruitment channels. We see Drive My Career as platforms have had a hugely positive impact and developed complementing that. considerably, relying now on an active community of over 1,000 people. More than 600,000 users are reached every “I see initiatives like Drive My Career as one of the ways in which month through our social media campaigns, posts, videos and we can help the younger generation discover the industry. more. This results in a wide range of about 1,400 users being redirected to the members’ career pages, through Drive My “We want to attract people to our apprenticeship programs but we want to communicate all roles across the business to get all Career, every month. the people with the right attitudes”, Mark Crockett said. Our social media accounts include Twitter, Facebook, Instagram, Plans for the future YouTube and LinkedIn. The most successful campaigns in converting Drive My Career’s users into members’ sites users Our plans for 2019 are to continue to bring talent closer to the are run on Facebook and Instagram. Images, videos, clear call- automotive sector and to keep improving the perception of the to-actions and other messages showcasing the positives of our industry. With the sustained support of our members, we will industry are shared continuously with young people based in continue to drive higher numbers of users to members’ sites. multiple regions that cover the whole of the UK. This is another The site will be frequently updated with the latest success important point: there are automotive career opportunities stories and blog posts to help improve users’ knowledge of the available all over the UK. industry. Exploring young people’s perception of the industry Drive My Career is a project which follows the directions set by our members. The next HR NFDA Working Group, where Drive In July, we started conducting surveys to gain a better insight My Career will be discussed, will be taking place on 6 February into our target audience’s perception of the automotive industry. in London. If you would like to attend, Respondents are aged between 16 to 24 and answer questions please contact [email protected].

3 THE UK’S LEADING EVENT FOR MOTOR RETAILERS

Brought to you by

Automotive Management Live highlights

Automotive Management Live 2018 AM Live will be delivering best practice (AML), the UK’s leading, free-to-attend, and theatre sessions presented by car retail trade show took place at the experts in their field - for senior Birmingham NEC and attracted more decision-makers, managers & than 750 visitors for a day of automotive operational executives in automotive sector insight, awards, exhibits of new retail businesses from groups of technology and services, and networking all types and sizes. opportunities on November 8. High footfall, high calibre speakers and These free-to-attend sessions will deliver high-profile guests were highlighted by an unparalleled level of knowledge and visitors on social media as Automotive insight into: Management Live 2018 was hailed a • Developing consumer communication success by car dealers and suppliers through website, social media, alike. live chat & customer reviews The announcement of this year’s AM Best Dealerships to Work For winners, • Increasing profit in new & used the launch of the National Franchised car sales and aftersales retention Dealers Association’s (NFDA) Electric • Latest and most innovative Vehicle Approved (EVA) scheme and a finance solutions packed ‘Vision of the Future’ seminar were just some of the highlights of a • Educate visitors about the packed agenda on the day. GDPR compliance laws Automotive Management Live • Insight into F&I developments will return on November 7, 2019, and best practice solutions and online registration for the free-to-attend AM Live 2019 is Giving show visitors unlimited access already open! on the exhibition floor to senior representatives from 100+ exhibitors Attendees will be able to meet the industry’s leading suppliers in the expo including: hall, listen to keynote speakers who will • The National Franchised tackle some of the hottest topics facing Dealers Association the sector, take part in best practice seminars where readily implementable • The UK’s leading professional service tips will be provided, and attend advice providers in automotive retail, clinics where experts will answer including technology providers, individual queries on an array of issues finance houses and recruitment including legal matters. consultants Automotive Management LIVE is • The full range of suppliers to shaping up to be the best day you’ll the automotive retail industry. spend away from your dealership next year. Register free at https://www.automotivemanagementlive.co.uk/

4 THE UK’S LEADING EVENT FOR MOTOR RETAILERS

Falling in love with WLTP Motorists could be forgiven for knowing know about the WLTP fuel economy figures is, quite simply, little about WLTP. But by the time they’re that they take away the guesswork around their fuel costs. at the dealership, it’s vital they very Thanks to more sophisticated testing techniques, more robust quickly become the best of friends. procedures and more realistic driving cycles that better reflect today’s cars and journeys, these new official fuel economy As customers eagerly arrive at your dealerships in the New figures give a good indication of what a driver may be able to Year, it’s unlikely that the new WLTP fuel economy figures achieve for themselves (in ideal conditions), in the real world. will be top of their priority list. In fact, it’s far more likely that they’ll be blissfully unaware of these significant (and beneficial) They also embrace the latest technologies by including changes – and have little desire to find out. meaningful electricity consumption and electric range figures, enabling customers to assess the cost and viability However, whilst the thrill and excitement of choosing from of switching to an EV or plug-in hybrid – and begin new the latest cutting-edge automotive design and technology conversations with sales staff. certainly shouldn’t be underestimated, they really should be encouraged to give WLTP a bit of thought. Finding the most fuel-efficient car for you Money Talks No one wants to spend more than they have to, so it makes sense to encourage your customers to choose the new car It’s no secret that consumers tend to be highly motivated by that’s going to use the least fuel on the journeys they do saving money, particularly where cars are concerned. And most often. The new WLTP figures now make this possible. with the cost of fuel being by far the highest ongoing expense For some, the resulting savings could run into hundreds of for most drivers, it’s in their best interest to have a clear grasp on how much the new car of their dreams could cost to run. pounds – which is perhaps the best reason of all for them at last falling in love with WLTP. And yet, strangely, this doesn’t always appear to be top of their consideration list. To be fair, the automotive industry Helping your customers save money on their fuel should take its fair share of blame for this, as confidence To help your customers understand the benefits of WLTP and has generally been lost in the official fuel economy figures choose the most fuel-efficient car for their lifestyle, the Low provided. At the same time, it has become increasingly difficult Carbon Vehicle Partnership are working with the NFDA to to relate these to the technologies and driving habits of today. produce a useful information leaflet for consumers. This will The beauty of the new WLTP fuel economy figures is that they be supplied to you in January as print-ready artwork, ready for overcome these obstacles – by providing motorists with truly you to produce and share with your customers. representative MPG figures that they can rely on, based on today’s driving habits and the manufacturer options fitted to By Jason Doran the car. This gives you the opportunity to confidently engage The Low Carbon Vehicle Partnership with your customers on fuel costs and the most suitable car for them.

Taking away the guesswork Register free at https://www.automotivemanagementlive.co.uk/ The most important thing that any prospective buyer needs to

5 FIRST NFDA ELECTRIC

VEHICLES DEALER TOYOTA MITSUBISHI ATTITUDE SURVEY KIA AUDI PUBLISHED NISSAN HYUNDAI

The Electric Vehicle Dealer Attitude Survey (EV DAS) highlights Product Offering BMW where constructive relationships between dealers and Positively, retailers were more optimistic about their VOLVO manufacturers are creating favourable retail environments manufacturers’ proposed product range for the next two in the EV area and outlines potential issues that need to be VOLKSWAGEN years than the current range, as the highest average score addressed. of all questions at 7.34 showed. Out of the top eleven EV RENAULT The survey asked franchised dealers about their on-going manufacturers, Toyota with 9.13 was again the top performer, PEUGEOT relationship with their respective manufacturers in the EV area while Peugeot’s dealer network showed dissatisfaction and their view on Government grants. NFDA intends to carry returning the only score below the neutral mark of 5.0. out the EV DAS twice a year. How satisfied are you with your manufacturer’s proposed As this is a rapidly developing space and one which not all plug-in and EV product range and the segments they will manufacturers have entered, we required a minimum of over cover for the next two years? 20% of a manufacturer’s dealer network to participate in order to be included in the survey. Consequently, the manufacturers featured in this report are the ‘top eleven’ in the EV arena and those who have sufficiently engaged with their dealer network TOYOTA 9.13 on the matter. HYUNDAI 8.77 Dealers were asked thirteen questions covering the retail of both pure electric and plug-in hybrid vehicles. These KIA 8.50 questions probed dealers’ views on the current and future NISSAN 8.00 approach to plug-in cars by their manufacturers. Responses

are scored from 1 (extremely dissatisfied) to 10 (extremely VOLVO 7.86 satisfied). AUDI 7.48 Average score across all questions BMW With an average score of 8.90, Toyota was the top performer. 6.83

It was followed by Hyundai and Kia, both with 7.58 points. MITSUBISHI 6.71 The bottom performers were Renault (4.79), Volkswagen (4.78) and Peugeot (2.75). The overall average was 6.47. VOLKSWAGEN 6.64

RENAULT 6.11 TOYOTA 8.90

HYUNDAI 7.58 PEUGEOT 3.14 7.34

KIA 7.58 0 1 2 3 4 5 6 7 8 9 10

NISSAN 7.00

MITSUBISHI 6.95

AUDI 6.42

VOLVO 6.39

BMW 6.20

RENAULT 4.79

VOLKSWAGEN 4.78 6.47 PEUGEOT 2.75

0 1 2 3 4 5 6 7 8 9 10

6 Supply availability the EV DAS although it is clear that various networks are calling on their manufacturers to address a number of issues How satisfied are you with availability of supply of your affecting key EV retail areas. Going forward, as EVs and manufacturer’s EVs and plug-in vehicles? plug-ins become more popular, we expect response rate to increase, with more networks providing their feedback.

TOYOTA 9.00 “It is positive to see that the highest average was returned MITSUBISHI 7.82 in response to manufacturers’ proposed plug-in and EV

KIA 7.07 product range for the next two years, demonstrating a degree of optimism amongst retailers. Unsurprisingly, retailers were AUDI 6.21 primarily concerned with supply, returning the lowest average NISSAN 6.03 score of the whole survey.

HYUNDAI 5.55 “NFDA encourages manufacturers and retailers to look at the BMW 4.52 findings of the EV DAS and continue to collaborate to provide

VOLVO 4.39 the best possible offering to consumers”.

VOLKSWAGEN 3.21 The second issue of the EV DAS will be sent to NFDA

RENAULT 2.76 members in January 2019 for completion. It will be interesting to see, as consumer appetite grows and the market adapts, PEUGEOT 2.42 5.57 how these responses change. Equally, the changes in policy 0 1 2 3 4 5 6 7 8 9 10 affecting EVs and plug-in vehicles will have a significant effect on retailers’ opinions.

The supply availability question returned the lowest average We look forward to presenting the results of the next Electric score of the survey highlighting retailers’ concerns with regard Vehicle Dealer Attitude Survey in the first half of 2019. to this area. Overall, 5 out of 11 responding dealer networks had a score below the 5.0 neutral line. Toyota was at the top For media enquiries, For media enquiries, of the table with a score of 9.0 out of 10, while Peugeot sat at please contact [email protected] the bottom with 2.42 points. please contact [email protected] For more information about the EV DAS, Sue Robinson, NFDA Director, said, “It was encouraging to Forplease more contact information [email protected] about the EV DAS, see a fairly high overall average score in the first edition of please contact [email protected]

NFDA SPRING BALL 2019: BOOK YOUR PLACE! The NFDA SPRING BALL will be back on Saturday 11 May 2019! The event will be taking place at the stunning Grove Resort in Hertfordshire. THE NFDA The Ball provides you with a unique opportunity to network with your fellow franchised retailers The SPRING BALL and colleagues, while you enjoy an evening VENUE THE GROVE RESORT, HERTFORDSHIRE of good food, fine wine and first-class entertainment. Back by popular demand, DATE SATURDAY 11 MAY 2019 your host and compere for the evening is TV presenter Mark Durden-Smith. EVENT ITINERARY CHAMPAGNE RECEPTION 18.45 DINNER: 20:00 NFDA will be presenting three awards on the ENTERTAINMENT: 22:00 -00:00 night: Industry Partner, Manufacturer and DRESS: BLACK TIE Recognition award. FOR MORE INFORMATION CONTACT 01788 538332 For ticket information and to book your place [email protected] please email [email protected]

7 DRIVING DIGITAL 2019

Following on from the success of last year’s sell-out event, motorways and airports. We ask everyone to be there for this year’s Driving Digital aims to provide delegates with an 9:30AM for a 10:00AM start. Lunch will be at 1:00PM. insight into the future of the world of digital marketing and automotive retailing.

Keynote speakers from across the automotive retail sector will take you on a journey through the digital landscape for used cars and leave you with a series of innovative and practical ideas.

Running Order

9:30 - Reception

10:00 - Start

• Sue Robinson, NFDA Director, will welcome guests and introduce Neil Addley, your host for the event.

• Nick King, Auto Trader Insight Director, will bring the latest insight from Auto Trader’s cutting edge customer research into the future of digital advertising in the automotive space.

• Neil Addley, Trusted Dealers MD - Judge Service Founder and MD: How important is the meet and greet? Finance? How far are customers prepared to travel? Who Should Attend Driving Digital? Neil will reveal all. CEOs and Managing Directors, Sales Directors and • Neil Smith, Imperial Cars Operations Director, will reveal Marketing Directors looking for inspiration and an unfair the link between customers satisfaction and stock turn share of opportunity should attend, alongside their digital and the key drivers to improve customer satisfaction. marketing colleagues. Marketeers of all levels from within the automotive sector are welcome. • John O’Hanlon, Waylands Volvo CEO, will talk through the challenges of leadership and motivation in today’s Driving Digital is free to franchised dealers and digital world, drawing on his experience at Ridgeway and OEM guests, and we welcome up to three delegates in founding Waylands per business - however we would with respect ask 13:00 - Buffet lunch suppliers for a contribution of £250 per delegate to the event.

Where is Driving Digital Held? Please contact Louise Woods on 01788 538332 or email [email protected] to reserve your place. Driving Digital 2019 is conveniently centrally located in the middle of England at Villa Park providing good links to the Visit www.driving-digital.co.uk for more information.

8 DRIVING DIGITAL 2019

Growing careers in Motor Finance with FLA

With the FCA poised to report its that the majority of apprenticeship roles over the skills and knowledge that findings on the motor finance market are technical or sales-centric, but very apprentices gain over the course in the New Near, it’s no surprise that few employed finance-specific roles. of their employment. There is also both lenders and retailers are focused With an ever-increasing number of a renewed focus on ensuring that on industry-led solutions to help ensure customers using finance to support the apprenticeship levy works for the best possible results for their their new car purchases, there’s a real all employers, with the Government customers. opportunity to grow this talent pool recently announcing that smaller within dealerships. Skills and Development firms taking on apprentices will Most in the industry will already be Future-proofing have the amount they contribute for familiar with the Finance & Leasing In the wider economy, addressing training halved from 10% to 5%. The Association’s Specialist Automotive the UK’s growing skills gap through Government will pay the remaining Finance (SAF) brand. The FLA has vocational training and apprenticeships 95%. Also, from April 2019, large been upgrading SAF to a seamless businesses will be able to invest up package of learning, including a series of essential factsheets for entry level to 25% of their apprenticeship levy staff and a new interactive app-based to support apprentices in their supply programme for those wishing to chain. progress to an advanced level. The FLA The Motor Finance Specialist is already working with NFDA members apprenticeship was developed by to ensure SAF is adapted to the needs lenders and retailers to attract not only of the modern motor finance market, and meets the regulator’s expectations. a more diverse range of applicants into the motor finance industry, but What’s more, the SAF package of also as a pathway to upskill and retain learning can be incorporated into is now front and centre of the the Specialist Automotive Finance key dealership staff, with the aim of Government’s skills agenda. apprenticeship. The FLA recently reducing staff turnover and continuing conducted an industry-wide survey, New apprenticeship standards allow to raise the high standards of industry including motor retailers, which showed employers to have more control professionalism.

If you’d like to find out more about employing motor finance apprentices in a retail context you can do so on the FLA’s website at www.fla.org.uk/motor-finance/initiatives/motor-finance-specialist-apprenticeship

9 NFDA launches EVA pilot scheme for electric vehicle retailers

E V A

Electric Vehicle Approved (EVA) and volume of models sold. Crucially, Cooperation between government and is a set of standards for retail and interest from consumers is also industry is vital for the UK to be at the aftersales, developed by NFDA. expanding rapidly. However, consumers forefront of the latest developments in find buying a plug-in car more complex The pilot phase of EVA has been the electric vehicles sector. NFDA looks endorsed by the Government’s Office than purchasing an internal combustion forward to working with OLEV and the for Low Emission Vehicles (OLEV) engine (ICE) vehicle, due to the additional considerations to be taken Energy Saving Trust to give automotive and the Energy Saving Trust (EST). into account and possible lifestyle retailers the opportunity to show their It is the only scheme, open to all impacts. Retailers have a crucial role in excellence in EV retail. automotive retailers, which certifies helping the UK consumer feel confident the efforts retailers are making in the enough to buy an electric vehicle. EV sector to meet the ever-changing A retailer who has committed significant consumer demand. time and resources to EVs should The new and only scheme for meet the standards set by EVA and approved electric vehicle retailers EVA is initially open to retailers as a Audited to high standards free pilot phase lasting from November then be able to communicate clearly to Open to all retailers 2018 to February 2019. The slots for consumers, through the EVA kitemark, the pilot phase have been allocated on their expertise in the sector. first come, first served basis to ensure The EVA status is awarded to individual a fair geographical representation of the dealership locations and not to dealer UK. The pilot will be used to establish groups. Once a dealer group decides the scheme and we will monitor the which site(s) they wish to be EVA E V A operation before the official launch in members, NFDA will arrange for an 2019. audit to occur at these locations. The audit will be performed by the Energy Both pure Electric Vehicles (EVs) and Saving Trust and will result in either a The pilot phase of EVA has been endorsed by the plug-in hybrid vehicles are experiencing pass or referral. NFDA is the awarding Government’s Office for Low Emission Vehicle (OLEV) very significant growth and a number of body and, on receipt of a successful and the Energy Saving Trust (EST) 01788 538 303 manufacturers have ambitious plans for audit report, will grant the dealership [email protected] the expansion of both the model range site EVA membership.

10 NFDA AND PARTNERS PUBLISH PLUG-IN VEHICLE GUIDE

The Plug-in Vehicle Guide was a vehicle, the charging process as the types of plug-in vehicle, how they launched by the National Franchised well as how charging cars could are charged, and the government Dealers Association (NFDA) in affect utility bills. grants and incentives available. association with the Energy Saving • Charging: the charging Sue Robinson NFDA director said, Trust (EST), ZAP-MAP and Office for process is explained. This includes “NFDA has partnered with key players Low Emission Vehicles (OLEV). The the different types of charge points in the sector to provide franchised Guide aims to help franchised retailers (slow, fast, rapid and ultra-rapid) retailers across the UK with the material inform consumers about the benefits and how to make the most of them they need to be able to inform the and implications of owning a plug-in depending on the car you drive. An consumer. Having consumers making vehicle. illustration by Zap-Map shows all the informed decisions is instrumental This document cements the charge points available in the UK. to the success of our sector in the Government’s commitment to working • Energy Saving Trust (EST): the forthcoming years and NFDA will with the automotive industry to EST’s section outlines a number of key continue to work alongside key publish ‘guidance for sellers, dealers aspects that motorists should consider industry partners, the government and and auction houses’, as stated in when planning to buy a plug-in vehicle. our dealer members to ensure that the recently published Road to Zero customers will always receive as much strategy. Over 5,000 NFDA member • Grant and tax benefits: finally, guidance as possible when selecting dealers across the UK will receive the guide features a summary of their next car”. To receive a copy the grants and tax benefits that the the guide, providing them with the of the guide, please email government has made available to the information they need to accurately [email protected]. inform their customers about plug-in consumers to encourage the switch to vehicles. plug-in cars. There are five key sections: Matthew Eastwood, Energy Saving Trust, Head of Transport, said, “Dealers • Types of plug-in vehicles: the have a huge part to play in making guide describes different types of plug- buyers aware of the benefits of buying in vehicles on the market including a plug-in vehicle. Every year, more and battery electric vehicles (BEV or pure more people seize the opportunity and EV), extended-range electric vehicles make the change. EST are delighted (E-REV) and plug-in hybrid electric to work with NFDA on this new guide vehicles (PHEV). to ensure that dealers and their • Myth busting: this section answers customers have the facts they need a series of frequently asked questions immediately to hand in the showroom. to dispel myths regarding the battery of The guide takes the confusion out of

11 RMI EMPLOYMENT LAW NEWSLETTER WINTER 2018

Welcome to the Winter Edition of the RMI Conclusion The Employment Appeals Tribunal (EAT) was Newsletter. In this update we aim to give you asked to consider whether a strict approach was a round-up of some of the latest developments With GDPR and data protection being in the required when considering cross appeals. in employment law. Whilst this is not intended forefront of the industry recently this is an to provide a comprehensive summary of all the important case and provides some interesting Mr Aplin initially succeeded before the tribunal. changes to the law, we hope to highlight some guidance; both as a warning and a reassurance, The Respondent appealed and was given key areas of change for motor industry employers. for businesses who may have been caught out by permission to appeal. The usual EAT order rogue employees. requires an Answer and Notice of Cross-Appeal to be filed by the same deadline. Mr Aplin applied for IN THE NEWS This is a landmark case as the ICO has, for the an extension of time of 2 weeks over Christmas to first time, used the Computer Misuse Act 1990 to “file documentation for the appeal hearing”. The GDPR: Employee imprisoned for unlawfully deal with a data breach, thereby giving the courts EAT Registrar treated that as an application to accessing personal data a wider range of sentencing powers. With this extend time to file the Answer but not any Cross- case, the ICO appears to be signalling that they Appeal. Time was extended for the Answer only, Companies have been under a duty to protect will use all the tools at their disposal to deal with though that was not clear from the written order. personal data for over 20 years. However, with data breaches where they result in a significant GDPR coming into force 25 May 2018 and Data impact on data subjects. Mr Aplin filed an Answer and Notice of Cross- Protection Act 2018 increasing these protections Appeal at the same time as each other. This was and setting a new standard, data protection has What is reassuring is that the ICO does not appear filed in the extended time for the Answer but out been in the forefront of the industry over recent to have taken action against either the bodyshop of the original time limit for the Cross-Appeal. The months. concerned or Audatex. Both organisations co- Registrar refused an extension of time stating that operated with the investigation and took steps to there were strict time limits and that extensions for On 12 November the Information Commissioner’s secure data going forward. This is good news for both appeals and cross-appeals were not granted Office (ICO) released details regarding the common sense. except in “rare and exceptional cases”. prosecution of a motor industry employee under the Computer Misuse Act 1990. Members are under a duty to take reasonable The EAT held that this strict approach was steps to minimise the personal data held and to incorrect. In making their decision the EAT said: In this case, a rogue employee of a Bodyshop secure the same whilst in their possession. We had been using the company access to the would strongly advise that any RMI members “the analysis of the nature of a cross-appeal Audatex system to remove personal data using who have not reviewed their data processing or and the practical and policy reasons why such a colleague’s log-in details. The employee would security processes recently consider doing so. a step is reactive [to an appeal] illustrates why in then sell the details to accident management Remember, as an RMI member you have access my judgment the strict approach to time limits companies resulting in nuisance calls and to lawyers who specialise in the motor industry for initiating an appeal do not apply to cross- complaints This conduct had continued for over as well as precedent documents and other appeals...There is only a cross-appeal if an appeal 9 months, even after he left the first bodyshop, resources designed to give you a head start when has been initiated. It would be wrong to reason and only came to light when the first bodyshop constructing your own policies and procedures. that because a Respondent [to an appeal] has concerned noticed a sharp increase in complaints had an ET Decision for some time they should regarding customer data and reported the issue Parental Bereavement (Leave and Pay) Act 2018 be bound by the strict approach to timing which to the ICO. In UK employment law the rights of an employee applies to appeals.” to paid time off to deal with a family emergency is After an investigation, the employee concerned Whilst this may be one for the HR specialist, it is was charged with securing unauthorised access quite limited. Certain types of statutory leave such as maternity, paternity and shared parental leave one to note as it is not uncommon for employees to personal data between 13 January 2016 and to appeal any decisions should the employer 19 October 2016 and was sentenced at Wood have pay provisions but when for example a close relative dies or there is some other serious family succeed. We would strongly advise that any Green Crown Court in North London to 6 months RMI member seeks advice from a specialist imprisonment. crisis, employees have to rely upon a limited right to unpaid time off to deal with the emergency. employment lawyer as soon as the appeal is received in order to avoid the issue entirely. The employee concerned is now also the subject In one particular area, the death of a child, this of proceedings under the Proceeds of Crime Investigations and unfair dismissal Act, which could result in the recovery from the has always been considered woefully inadequate. employee of any benefit obtained as a result of the The Government has now proposed to fill this hole A key element in any fair dismissal of an employee offending. by introducing the Parental Bereavement (Leave with over 2 years’ service is that the employer and Pay) Act 2018. This has now received Royal must follow a fair procedure and conduct a Mike Shaw, Head of Criminal Investigations at the Assent. reasonable investigation into any allegations, ICO, said: especially where misconduct is alleged. Such Under the new laws, there will be a right to an investigation includes gathering all relevant “Although this was a data protection issue, in this two weeks of time away from work for those evidence that it is reasonable to investigate. case we were able to prosecute beyond data employees who have lost a child aged under 18. The investigation does not have to be perfect protection laws resulting in a tougher penalty to The full Regulations will follow which will contain, but within a band of reasonable investigations reflect the nature of the criminal behaviour… amongst other matters, details of how much pay that another employer could have undertaken will be payable during the leave. in the circumstances. The extent and depth of Data obtained in these circumstances is a The Government has said it anticipates bringing the investigation also clearly depends upon the valuable commodity, and there was evidence of seriousness of the matters being investigated. customers receiving unwarranted calls from claims the Act fully into place by April 2020. management companies, causing unnecessary In the case below, the Employment Appeal anxiety and distress. CASE LAW UPDATES Tribunal (EAT) supported an employer when it failed to take some evidence from potential The potential reputational damage to affected Time limits for Employment Tribunal Appeals witnesses. It concluded that the employer was companies whose data is stolen in this way can reasonable in excluding such evidence, under be immeasurable. Both Nationwide Accident The Employment Tribunal operates under a strict circumstances where the excluded evidence could Repair Services and Audatex have put appropriate timeline. As with all courts, these timelines can not have really changed the employer’s view. technical and organisational measures in place to be waived or extended. In the recent case of The ensure that this cannot happen again.” Governing Body of Tywyn Primary School v Aplin, In Hargreaves v Manchester Grammar, Mr

12 Hargreaves was a teacher with an unblemished no meeting, was not necessarily unfair. An ‘economic entity’ means an organised group record until it was alleged that he had grabbed of resources which has the objective of pursuing a pupil, pushing him against the wall and This case is fairly fact-specific. It should not be an economic activity, whether or not that activity putting his fingers to the pupil’s throat. He was taken by employers in the motor industry to is central or ancillary. In deciding whether there dismissed. The tribunal found the dismissal fair. Mr mean that a meeting before dismissal, when an has been a relevant business transfer, the crucial Hargreaves appealed to the EAT, contending the SOSR dismissal is contemplated, should always question is whether or not there is a transfer of employer’s investigation was inadequate, given the be dispensed with. It does confirm that in some an economic entity which retains its identity after career-changing impact of the allegation. Also, the circumstances the absence of a meeting does not the transfer and is carried on by the transferee. employer had failed to disclose to the disciplinary always render a dismissal unfair. In answering that question, all the factual panel evidence from potential witnesses who had circumstances will be considered, including: said they had seen nothing. Managing Return To Work • The type of business; The EAT dismissed the appeal. The tribunal had “We have had a member of staff come back from maternity leave in June. Following a request from correctly directed itself as to the higher standard • Whether tangible assets such as premises, of investigation that might be expected, given the her to reduce her hours, her role in the company also changed. Where do we legally stand if the assets and equipment are transferred – although very serious nature of the allegation. It was within a relevant transfer may still take place even the band of reasonable responses to decide not to hours she now works do not suit the needs of the business? She works Wednesday, Thursday and where no property is transferred to the put forward to Mr Hargreaves and the disciplinary transferee by the transferor; panel details about interviews with those who Friday mornings but our busiest times are Monday had seen nothing. It did not follow that, because and Friday afternoons. Her hours, therefore, could cause us issues going forward. In addition, since • Whether intangible assets such as goodwill and those individuals had seen nothing, nothing had customer lists are transferred; happened. The tribunal permissibly concluded the her return she has had a bad attitude, complaining employer had reasonably formed the view that the that she is doing more work than others and this is affecting morale.” • Whether the majority of employees are taken excluded evidence was immaterial and could not over by the transferee and, if not, the motive of assist. A change in hours following a flexible working the transferee in not taking them on; The tribunal was entitled to conclude the employer request is a permanent change. If you need to change her hours now you will ultimately treat it as • The degree of similarity between the activities had conducted a fair investigation and that the carried on before and after the transfer; and dismissal was not unfair. a variation of terms and conditions. Consult with her and seek her consent to enforce the change. • Whether there has been any break in the Comment If she refuses to accept the change and the performance of the activities. The above case shows there is some degree of business cannot continue this status quo latitude for employers in such matters, however, (which could be exploring whether you can find • Whether TUPE applies to a particular business employers should generally be careful to alternative employees to carry out the busy transfer is not a simple question to answer since investigate with all potentially relevant witnesses periods) then there are two options; each case will turn on its own facts and and that remains the safest option. Employers ultimately, it will be a matter for an employment must remember that, in any investigation, they are 1. Enforce the change as unilateral change tribunal to decide if there is a disagreement looking for all the evidence (not only evidence that between the parties. supports the charges against the employee). 2. Dismiss and seek to re-engage on the new terms. TUPE does not apply to: CASE STUDIES Both carry risks, as with the first it would risk a • The transfer of shares in a company. This is breach of contract if consent is not given. If the because when a company’s shares are sold Unfair Dismissal employee has more than two years’ service, she to new shareholders, there is no transfer of the could resign and claim constructive dismissal. business – the same company continues to Is it necessary to hold a meeting with an employee With the second option, clearly as there is a be the employer. In short, for TUPE to apply, before dismissing them for some other substantial dismissal then she could not accept the re- the identity of the employer must change. reason? engagement and claim unfair dismissal. Due to the risk, therefore, it is best to try to seek the • The transfer of empty premises or assets only An employer can rely upon a number of potentially employee’s consent, explaining the problems (for example, the sale of office equipment alone fair reasons to dismiss an employee under the caused to the business in relation to her working would not be covered, however, the sale of a Employment Rights Act 1996. In addition to the hours against the needs of the business and see if business as a going concern which includes the usual grounds, such as capability, conduct and you can obtain consent. redundancy, the Act allows a further potentially fair equipment would be covered). reason under Section 98(1)(b) which is a “catch In relation to the bad attitude, this can be • The situation where a client buys in services all” called “some other substantial reason” or addressed either informally or formally. If you from a contractor in connection with a single “SOSR”. Under this heading, an employer can decide to take it as a more formal route then you specific event or task of short-term duration justify a dismissal which does not fall neatly into should follow your disciplinary procedure and i.e. a one-off contract rather than the two some of the other categories, provided the reason if this is the first case where there have been is genuine and substantial. parties entering into an ongoing relationship for problems with her, and there is no other live the provision of the service. There is no warnings on her personnel file, it is likely to result In the reported case below, the employer statutory definition of what exactly constitutes in a first stage warning, i.e. either a verbal warning proceeded to dismiss for this reason without ‘short-term duration’. holding a meeting and the question, therefore, or a written warning subject to what your policy was whether that dismissal was necessarily unfair, provides. • Arrangements between client and contractor because of the absence of such a meeting? Was which are wholly or mainly for the supply of Transfer of Undertakings (Protection from goods for the client’s use. it always necessary to hold a meeting before Employment) Regulations 2006 with an asset dismissing? purchase If your purchase involves a going concern then Not always, held the EAT, in Hawkes v Ausin “We are looking to purchase the trade and assets the safer legal approach is to assume TUPE does Group (UK) Ltd. of another existing business. As we are not apply, look to inform and consult in the usual way. interested in purchasing the Company itself, what If you expect to re-employ the staff, then it would The Claimant was a reservist with the Marines. is our liability to the employees currently employed be prudent to proceed under TUPE. He signed up (voluntarily) for a 7 week overseas in that business?” call up. His contract of employment permitted a week’s unpaid holiday per year for his reserve Although you are only looking to purchase trade CONCLUSIONS duties. Mr Hawkes informed his employer that he and assets, the purchase may still fall under the This advice is general in nature and it will need would need 7 weeks’ leave in order to complete TUPE Regulations 2006. the call up. After some enquiries, Ausin Group to be tailored to any one particular situation. As found out that the call up was not mandatory and The TUPE Regulations are an important part of UK an RMI member you have access to the RMI did not want him to go ahead with it. labour law. When they apply can be complicated, legal advice line, as well as a number of industry but where they apply they protect employees experts for your assistance. Should you find Once the Respondent realised that the Claimant whose business is being transferred to another yourself in the situation above, contact us at any had chosen to go, despite the call up not being business. Failure to consider them can lead to stage for advice and assistance as appropriate. mandatory, he was summarily dismissed. significant financial penalties of the businesses concerned. Motor Industry Legal Services The EAT held that this was not a misconduct case where it would usually be considered necessary to When do they apply? Motor Industry Legal Services (MILS Solicitors) hold a meeting in order to consider the employee’s provides fully comprehensive legal advice and explanations. It said this was a dismissal for some A relevant transfer can occur when a business representation to UK motor retailers for one other substantial reason. In that context, it was or part of a business (and or undertaking) is annual fee. It is the only law firm in the UK which open to the tribunal to make a finding of fact that transferred from one employer to a new employer specialises in motor law and motor trade law. a meeting would not have changed the position as a going concern i.e. there is a transfer of an MILS currently advises over 1,000 individual because of the Claimant’s firm commitment to the economic entity which retains its identity after the businesses within the sector as well as the Retail exercise. Accordingly, the process followed, with transfer. Motor Industry Federation (RMI) and its members.

13 What is the Brexit Deal? Canada Plus- style free trade deal which EU negotiator Michel Barnier was expecting the UK to opt for until the Chequers meeting The Deal comprises a (legally-binding) Withdrawal Agreement and in summer 2018 set the Government on a different path. a Political Declaration on the future UK-EU relationship. A harder deal than at present would involve persuading the EU to The Withdrawal Agreement provides for a legally binding transition reform the “backstop” so that the Northern Ireland Assembly has period to 31 December 2020 which provides for continued UK a say over rules and regulations in Northern Ireland after 2020. It membership of the EU’s Single Market and Customs Union, might also enable the UK to freely exit the backstop without the without membership of the EU decision-making bodies. The consent of the EU. Agreement also includes a protocol establishing the backstop, protections for UK citizens in the EU and EU citizens in the UK, and What if there is no deal? settlement of the UK’s budget contributions. If the Government accepts Parliament’s rejection of the Deal and The Political Declaration sets out the direction of travel for future concludes that it is not going to get any more concessions from the negotiations. It is not legally binding and leaves open a wide range EU, then the UK will leave without a deal on 29 March. There will of options to “build and improve on” the customs union in the be no transition period. backstop while also enabling an independent UK trade policy. Some commentators have described this as a “cliff edge” scenario, Crunch time for the Withdrawal Agreement and it will certainly leave financial services businesses in particular at risk of having to muddle through where they have not made Crunch votes on Mrs May’s Brexit deal with the EU are taking place “passporting” arrangements to transact business in jurisdictions in Parliament as this update is written. Over 100 Conservative MPs outside EU regulations like the UK. have so far publicly opposed the Deal, so, at the time of writing, it is assumed that they will vote against it alongside members of the However, many Brexiteers say there is no reason why the free Labour and Democratic Unionist Parties. movement of goods and services should not continue relatively unhindered, as it does between most countries trading under WTO The advantage of Mrs May’s Brexit Deal is that it promised ongoing terms. frictionless trade after the UK leaves the EU on 29 March 2018. This would continue for the period of the transition which would The UK Government is said to be making preparations to stockpile last for as long as it takes to negotiate a free trade agreement with medicines and other essential goods sourced from the EU in case the EU. there are delays at a particular border crossing. If the French Government chooses to inspect incoming goods at Calais, for The disadvantage of the May Deal, as described by both example, it could create chaos, even if it is acting in breach of their Remainers and Brexiters in Parliament, is that it would have left WTO obligations. the UK subject to EU law indefinitely, under the so-called backstop arrangements, with no say over the formulation or composition of What is the backstop and why is it so controversial? EU law. No new trade deals could have been agreed by the UK and third countries until the UK had left the customs union; and the The backstop applies either from 1 January 2021 or after a UK could not have left the customs union until it had first put its transition extension is applied to the end of the transition period in free trade deal with the EU into place. 2020. The backstop takes us back to a position before the 1986 Single European Act which created the Single Market. There will What happens if the Withdrawal Agreement is rejected by be a customs union with a common market in goods, and the tap Parliament? of future regulations turned off for the rest of the UK but not for Northern Ireland. Over time, regulations would diverge in many If Mrs May loses the vote for her deal in the House of Commons, areas, but goods trade could continue without tariffs or quotas. she will probably choose to return to Brussels asking for the Withdrawal Agreement to be tweaked. The backstop is difficult for Northern Ireland as it keeps Northern Ireland’s rules in alignment with the EU’s. This gives the Dublin It is possible that, without the backing of the Democratic Unionists, government a say in the rules which apply to Northern Ireland while her Government will lose a confidence vote. However, the Fixed Stormont has no say. Term Parliaments Act means that a General Election can only be called if there is a two thirds majority in favour of dissolving The backstop does not allow the UK to have a fully independent Parliament. trade policy until a future relationship is agreed. Many Brexiters argue that leaving the Customs Union and having the freedom to A second referendum (a so-called “People’s Vote”) before March is also make trade deals with faster growing economies of the world is highly unlikely, as there is little time to organise on before the UK exits one of the only advantages of leaving the EU. the EU, and there is no agreement on what the question would be. The backstop lacks a clear exit mechanism, so some fear the UK How might the Withdrawal Agreement change? will stay in the backstop indefinitely. Regardless of who is at the head of the minority Conservative What happens if Mrs May cannot change the Withdrawal Government in 2019, they will first seek a new Withdrawal Agreement? Agreement. If Mrs May loses the vote and then finds that she cannot change the A softer deal than at present might involve creating a permanent Withdrawal Deal, she may lose the confidence Customs Union (Labour’s policy) or otherwise to retain membership of sufficient Conservative Members of Parliament that a confidence of the Single Market and a Customs Union (the Norway/EEA vote in her leadership will be held by Conservative MPs. option). Both options would prevent the UK striking trade deals with third countries but would allow for some divergence from If she lost this confidence vote, she would step down as party Single Market rules including movement of labour. This would leader. There would then be a contest for the leadership of the enable the free flow of goods to keep moving after 29 March. Conservative Party. The new Party Leader would be invited to form Some MPs argue that the UK could then start negotiating the a new Government.

14 INTERVIEWS NFDA DIRECTOR, SUE ROBINSON SUE ROBINSON IS THE DIRECTOR OF THE NATIONAL FRANCHISED DEALERS ASSOCIATION (NFDA), WHICH REPRESENTS FRANCHISED CAR AND COMMERCIAL VEHICLE DEALERS IN THE UK, LOBBYING ON THEIR BEHALF AND OFFERING SUPPORT SERVICES TO THE INDUSTRY” WHAT CAR? SAYS.

Her path to the top has been varied, “My point to government and the EU “As a result I do spend a lot of time ranging from a degree in sociology was this: the retailers are the people meeting chief executives at OEMs. Our “and post graduate in criminology that face the consumer, and that link lead in is with the NFDA Dealer Attitude to working as a journalist and then deserves as much respect as the car Survey, which is a barometer of how we press officer, initially in the building manufacturers get. From the moment think they are doing. It is independent a car leaves the factory gate it is the services industry and later in the and anonymous and that gives it a retailers who are in the front line.” automotive industry. She took on position of insight. It can make for pretty the director’s job at the NFDA in “[…] Look at the big retailing groups - brutal reading sometimes, and I have 2006 and has successfully built the they are global too, and while we can’t huge respect because the execs tend membership and influence of the make global headlines in the way Ford to take the punches and keep the door organisation since. or GM can, we do employ 600,000 open to work with us on improving. people on the retailing side in the UK, Today, her role is just as varied, with There must be a small part of them which compares well to manufacturing. the NFDA dealing with everything from wishing we’d just go away, but we work Say that to MPs and their jaws drop - day-to-day legal issues for its members together with respect.” we still have a lot of educating to do, through to building relationships at and of course there is a high turnover in What are the other key issues for manufacturer and governmental levels. their job. the retail industry? How has the industry changed “The comparison to aim at is with the since you started at the NFDA? “Diesel was a shock, although it is being retailers in America. They are in Capitol managed because there is a story to tell “Back then my life revolved around Hill every day, because their contribution car buyers, educating them about the block exemption. I went from Brussels to society is understood.” pros and cons. There is work to be done to Westminster and back again. I Presumably you have to balance around electric cars, which is why we worked closely with the European dealer that message between the launched the Electric Vehicle Approved body. It was all-consuming in many importance of retailers and the scheme to set standards for retailers ways, and we lobbied very hard to retain manufacturers too? and aftersales centres that people could the previous regulation. “Absolutely - it must be a balanced then look to for confidence. Recruitment “But the commission stood its ground partnership and usually it is. But the is another huge issue; this is a wonderful and we had to move on - it was a hard point I keep coming back to is that the industry that offers great opportunities, lesson, and in many ways disappointing, retailers have to make huge investments and Drive My Career is about promoting but with hindsight the awareness we in order to sell cars. Inevitably the two those.” built of how to operate in government, sides push each other - that’s business and the outside appreciation of how - and the manufacturers sometimes ReadRead the the full full interview interview in in the the much work we’d done, showed us what need to be reminded to respect that DecemberDecember 2018 2018 issue issue of of the the we could achieve. investment. WhatWhat Car? Car? Insight. Insight.

15 THE VOICE INTERVIEWS DARREN EDWARDS, CEO OF SYTNER Interviewed for the Voice by Neil Addley

Continuing our series of interviews with leaders securing this role is my biggest achievement, gender, ethnicity and authenticity, reflecting the in automotive retailing Neil Addley caught up with considering where I started and working my way community as a whole. Darren Edwards, CEO of Sytner. We started with up to run such an admired business and now of some questions about Darren’s background and course the biggest in our sector. We didn’t set As an observer, I had to admire your motivation in automotive retailing out to be the biggest, we just wanted to be the acquisition of the CarShop and The Car best. The Group’s success has been reached by People. How’s that going and how does Firstly, some questions about you. a combination of organic growth and strategic that sit with Sytner? So, what got you into automotive acquisitions. It has delivered everything we hoped it would. retailing? Turning to business, With CarShop, we bought a progressive My father was a BT Engineer and encouraged forward-thinking business with outstanding What would be your take out on 2018? me to get a proper qualification. At that time leadership and with The Car People we acquired in my life I was quite a hands-on person, and I think this year has been unprecedented a business with outstanding facilities and a great so I studied engineering at Willesden Technical in terms of challenges. We have had the customer centric culture. We have bought the College in London and joined Perry’s Ford as an uncertainty of Brexit as an ongoing scenario, we two businesses together under one umbrella, the apprentice in the body shop. After a few years I have also seen the shift from diesel to petrol. Car Supermarket Division, both of which benefit decided to try my hand at selling cars. First with WLTP has also had a significant impact although greatly from working closely together – we have Perry’s in Edgware and then with Milcars BMW it’s fair to say that some brands have handled been careful not to smother them. near Golders Green. I moved to Sytner in 2004 this situation better than others. Against the We have seen synergies in terms of commercial and continued to work with BMW, ultimately background of ever more intense competition partner arrangements and we are now seeing serving sixteen years with the franchise, before in the new car market, as OEMs chase market moving on to more senior positions with other share, we have had to look at solutions to a good number of part exchanges flowing into brands in our portfolio. Around four and a half overcome these issues, especially capitalizing on them from elsewhere in Sytner, having given the years ago when Gerard made the decision to the huge aftersales and used cars opportunity. Franchise dealers a gentle nudge, suggesting step down, I was appointed as CEO for the Retailers who have done this will have been the that it might be a good idea. The supermarkets group. most successful in 2018 and are well set for are now seeing some great part exchanges, 2019. often premium brand cars with a better spec As CEO, how would you describe your than ex-fleet or self-drive hire. role -what are the most important What do you think are the biggest things you do? challenges facing automotive retailers Ultimately, our Supermarket dealerships are over the next 12 months? willing to pay for quality stock. We’d look to grow As CEO, I am constantly thinking about the this part of the business over the next year or so, strengths and weaknesses of the business and Hopefully, things will start to settle down. The expanding our footprint based on knowledge of any threats coming down the road. I try to take a intensive transition to WLTP will have been great cities; - build great facilities in great cities strategic approach when looking at opportunities completed, the dramatic shift from diesel will with great people and you get a great business! and where we can achieve growth, keeping be less extensive but Brexit, deal or no deal, close to our OEM partners and our Operations means we may have to recalibrate. How we Do you think the sector is ripe for Directors. I work hard to make sure all our perform, not only as an industry but also as a further consolidation? initiatives are aligned with our mission to be business will be based as how attractive we are famous for delighting our colleagues, customers, as an employer. Young people think much more Acquisitions seem to have slowed down and manufacturers and shareholders. I enjoy meeting about their own needs and what they want out there are probably less obvious opportunities our Operations Directors, both on a one-to-one of life. Traditionally the sector has not been good to acquire business than there have been in basis and as a team. Our operational reviews at providing a work-life balance. Attrition is a the past five to six years. Before the acquisition are where we share best practice - we are not problem across the industry, meaning we spend of the Supermarkets, we’d seen nearly £1 a “top down” business, more a collective of far too much time recruiting and training, rather billion of organic growth within Sytner over entrepreneurial people all contributing towards than developing people. the last 3-4 years with operational excellence our success. There’s nothing better than when driving revenues without having to acquire we identify and share one example of best Focus on people anything else. We are always on the lookout for practice and then see that working in 140 For Sytner, our strategy is about how we opportunities with our premium brand OEMs businesses. That’s both exciting and rewarding. become a family-friendly, more inclusive though, equally on the used car side there is organisation. We need to remove some barriers potential for further sites. The benefit of making a What do you think is your greatest to achieve this, even question the amount of time purchase via a franchise is confidence in quality achievement to date is? someone needs to be in the dealership. A family- and consistency, but with used cars, it’s much Well in life I am ever so proud of my wife and friendly flexible business will move away from more down to the culture and people. As such, two daughters, who are both currently going the stereotypical motor trade image, developing our main focus would be on green field sites or through university. In terms of business I guess, a more balanced work force in terms of both empty retail locations.

16 What advantages do you think Sytner launched mainstream electric options by then. And, finally, of course, there is Roger Penske, has over other groups, particularly I don’t, however, see a significant move to a who is the ultimate Automotive mentor! PLCs? subscription model just yet. I’m not sure the UK as a whole is ready for this - we really only have What advice would you give to someone Our reputation as a great place to work and one mega city so there is no desperate need for starting their automotive career today? our growth in partnership with manufacturers car sharing in most of the country. Subscription Well, I like cars and people. If you like those put us in a great position. Our best ideas come models seem to me to be quite expensive and from people with the freedom to come up with not well matched to the UK driving needs or two things and share that with a hundred other them. In effect we have over 140 entrepreneurs, habits. people working in a dealership, happy days! If leading our businesses and they tend to seek you want to advance your career, I would say out other enterprising people to work with On top of that, the economic cycle dictates be the best at what you do and keep an eye that at some point, self-inflicted or not, we will them. Our people like creating ideas as much out for the next opportunity. Start to take on encounter some form of recession. At that point as working hard, that’s what makes us different. responsibility voluntarily, that way when the Overplaying rule books and frameworks stifles there will be factories churning out cars and opportunity appears you become a natural innovation, we try to engender a family firm someone will have the job of getting cars sold! choice, the obvious successor for that role. feeling. It’s tempting to try and force a certain It’s a question of economics. structure on people, but we believe that it is Finally, turning to advice. Be useful! far better to see people embrace the overall culture and create ideas, making it their own or Are there particular people that stand If you had to have a New Year’s modifying other ideas to make them even better. out as mentors in your life and in your resolution what would it be? career? Is that your culture or Sytner’s culture? I firmly believe you should do what you need to For sure, in fact, I remember the first day I met make yourself happy every day. So, therefore, It’s a Sytner culture. It was here when I came but every one of them. First would be Tony Dear, you don’t need resolutions. If you want to I have tried to take it up a couple of notches. who gave me my first job at Perry’s and then change something, just get on with it! This is Sam Showham, who taught me about the What are the key trends we should an industry that gets talked down, for the wrong watch for in the automotive sector in customer journey and really, how to sell cars, Paul Fruen, who I worked for at both Milcars reasons. It’s an amazing industry that rewards the next five years? and Sytner, saw some ability in me and gave me effort and merit better than any other I can think 2020 will be the year when electric cars really a leg up. He retired recently but over the years of. It’s almost a pure meritocracy and it’s up to begin to take off as all key brands will have he was always someone I could ask for advice. us to make sure this continues. NFDA ASSOCIATE NATIONAL FRANCHISED DEALERS ASSOCIATION ASSOCIATE MEMBER MEMBERS DIRECTORY

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17 NFDA 2018 YEARLY ROUND UP From engagement with Government to the publication of industry reports and surveys, as well as new initiatives to help retailers in the recruitment area and in MARCH the electric vehicles sector, the summary below outlines some of the key works NFDA has undertaken this year. Dealer Attitude Survey Winter 2017/2018 results revealed The overall relationship JANUARY between franchised car MOT remains at three years FEBRUARY dealers and manufacturers Following NFDA’s determined lobbying recorded an average score of efforts alongside other industry bodies, Drive My Career Government announced that that the first 5.3 in the Winter 2017/2018 MoT test remained at 3 years. On 8 February, NFDA launched Drive My Dealer Attitude Survey, which Career: a unique, industry-first initiative NFDA Parliamentary Engagement created to attract talented, young people was -0.3 points lower than six Programme to automotive retail. After ten months months earlier. of operations, there are more than 850 The first MP visit of the year took place dealerships on the website that have been on Friday 12 January: Rt Hon Sir Vince connected to more than 8,000 young Cable MP visited NFDA member Inchcape people across the UK. Thanks to highly- Volkswagen in Twickenham to discuss key targeted campaigns, Drive My Career issues facing the automotive retail sector. continues to raise awareness of our sector. Find out more at www.drivemycareer.co.uk

JUNE

NFDA intensifies WLTP communication In June, NFDA communicated to our members the potential implications of the APRIL Worldwide Harmonized Light Vehicles Test Procedure (WLTP), due to be introduced in Consumer Attitude Survey MAY September. We also contacted individual Spring 2018 shows high levels manufacturers to urge them to provide their New NFDA website respective dealer networks with information of consumer satisfaction NFDA launched its new website to provide about the possible impact of WLTP. members with a significantly enhanced Franchised dealers continued to digital experience and ensure that they can AM 100 be described by the majority of all easily access relevant material. Visit www.nfda-uk.co.uk to find out more. The AM 100 2018 revealed that the top 100 consumers as professional (52%), retailers had a combined turnover of £67.1 billion, with the top 10 AM groups alone, knowledgeable (46%) reputable NFDA Spring Ball 2018 The NFDA Spring Ball 2018 took place all NFDA members, accounting for £32.8 (46%) and with good customer at the magnificent Grove Resort in billion. Top 10: Sytner Group, Pendragon, Hertfordshire. A night of fun and networking Lookers, Arnold Clark Automobiles, service (43%). Overall, 89% of compered by Mark Durden-Smith saw Inchcape Retail, Vertu Motors, Marshall franchised dealer customers were this year’s Recognition Award go to David Motor Holdings, Jardine Motors Group, Tuomey, Managing Director of Windsor’s Group 1 Automotive and TrustFord. satisfied with their most recent Wallasey Ltd Group and Chairman of the servicing experience and the vast NFDA Northern Regional Meeting. majority of them continued to see franchised dealers as the safest option in aftersales.

18 JULY SEPTEMBER Government’s Road to Zero strategy: NFDA 2018 YEARLY KIA tops Dealer NFDA reacts AUGUST Attitude Survey NFDA welcomed the Government’s Summer 2018 commitment to support the uptake of The results of the latest Dealer Attitude electric vehicles while it was acknowledged Analysts’ forecast report Survey Summer 2018 that ‘conventional engines will continue to were published on ROUND UP play an important part in the years to come’. NFDA launched the UK New 3 September 2018. NFDA asked for a review of the Vehicle Kia had the highest Car Market Forecasts report average score across Excise Duty (VED) system, especially with all questions, followed regard to diesel. to give its members a clearer by Toyota and Lexus. Mitsubishi was the overview of the new car market most improved network. WLTP Workshop in the UK. This was a confidential Following previous communications with document, exclusive to NFDA NFDA-ICDP Aftersales model members and manufacturers, NFDA held a members. It collated the views The UK aftermarket is facing a time of change workshop on WLTP on 17 July 2018. It was with a vehicle parc becoming ever younger, attended by retailers, manufacturers and of a number of industry analysts technologies advancing and alternatively fuelled the LowCVP. vehicle sales growing rapidly. To give NFDA and experts who examined the members a better insight into how these trends could play out for their businesses, NFDA outlook of the new car market in consulted with ICDP (International Car Distribution Programme) to develop an aftersales forecast 2018 and how it is expected to model. NFDA members can have access to the perform in the next two years. model free of charge.

OCTOBER Consumer Attitude Survey Autumn 2018: franchised NOVEMBER DECEMBER dealers safest option in aftersales NFDA announces EVA pilot scheme NFDA publishes Plug-in The latest Consumer Attitude Survey revealed that the majority NFDA launched the pilot Vehicle Guide of consumers (64%) continued phase Electric Vehicle Approved (EVA) scheme, to see franchised dealers as the E V A NFDA published a plug-in vehicle safest option in the aftersales which was approved by the Office for Low guide in association with the Energy sector. Of those who regularly Emissions Vehicles (OLEV) and the Energy Saving use franchised dealers for aftersales service, 93% Trust (EST). It consists of a set of standards open Saving Trust, the Office for Low were satisfied with their overall experience. to all retailers aimed at certifying their excellence in EV sales. Emissions Vehicles and Zap-Map Budget 2018 A number of positive measures affecting to help retailers inform consumers First EV Dealer Attitude Survey released consumers’ income were announced: fuel duty about plug-in electric cars. was frozen and personal tax allowance and higher The first Electric rate tax threshold will be raised to respectively Vehicle Dealer Attitude £12,500 and £50,000; National Living Wage Survey (EV DAS) was will also increase from £7.83 an hour to £8.21. published. The study The government said it will review the impact of analyses the relationship between retailers and the Worldwide harmonised Light-vehicles Test manufacturers in the Procedure (WLTP) on the Vehicle Excise Duty electric vehicles sector (VED) and company car tax systems. Other key surrounding a number measures included: the extension of the first-year of key areas including allowance for electric charge-points for four years product offering, supply and the rise of the annual investment allowance availability and profit (AIA) to £1 million from £200,000 for two years. return. Toyota had the highest average score across all questions. Ongoing activities

NFDA Parliamentary Engagement Electric vehicles training courses NFDA Communications Programme NFDA has been holding a series of training Regular NFDA communications include: The awareness building programme courses in conjunction with the Energy reactive and proactive press releases, a launched in 2017 to strengthen the Saving Trust (EST) on alternative fuel and weekly newsletter, a quarterly magazine, low emission vehicles. The focus of the relationship between MPs and automotive analysis reports, social media, guidance training courses is on used vehicles and, in retailers continues. NFDA invites MPs to particular, dispelling the myths associated documents and general member updates. visit a dealership in their constituency to see with them. To find out more, please email how the business is run and get an insight [email protected]. 2019 diary dates into the contribution our industry makes to GDPR NFDA Driving Digital 2019 the local and national economy as well as to Following a number of workshops as well as 7 February, Villa Park, Birmingham discuss key issues affecting businesses. If the help and assistance provided to retailers, NADA 2019 – NFDA Trip you would like to host your local MP, please we remain at our members’ disposal for San Francisco, 23-28 January contact [email protected] any support they may need on this ongoing NFDA Spring Ball 2019 issue. 11 May, The Grove, Hertfordshire

19 READ ALL ABOUT IT! 2018’s Industry Headlines In 2018, NFDA has appeared hundreds of times across different media outlets including trade, October regional and national press. See below some of this year’s most relevant industry headlines.

Fleet uptake of new cars January May declines by 22.4% in WLTP backlash Kia tops NFDA NFDA to launch career options website Automotive retail survey for second excellence recognised at summer running NFDA Spring Ball Franchised dealers safest option Consumer Attitude Survey reveals Kia Motors ranked top by INDUSTRY REACTS AS car dealers in NFDA Dealer 4-1-1 MOT IS SCRAPPED Attitude Survey Summer 2018

Car sales SOAR for the first DEALERS GET THUMBS UP February time in a year amid signs of industry recovery NFDA welcomes business Kia is rated top franchise in secretary Greg Clark’s NFDA Dealer Attitude Survey ROAD TO SUCCESS ‘greener diesel ‘ approach How you could net a £40,00 a year NFDA highlights EV motoring role with new job finder adoption bonus amid ULEV Drive My Career Kia claims top spot on Government grant fears summer 2018 NFDA Dealer NFDA ramps-up lobbying with Attitude Survey Scrapping UK grants for Lookers and Arnold Clark MP hybrid cars ’astounding’, says NFDA welcomes continued decline in visits pollutants in the UK June industry Marques out of ten? Carmakers fare badly Budget gets mixed reception Lack of models, not charging from retailers and carmakers points, ‘holding backcar electricmarket’ New website for NFDA KIA TOPS NFDA SURVEY FOR SECOND SUMMER RUNNING November March NFDA calls for clarity from manufacturers on WLTP for NFDA launches Electric dealer networks Vehicle Approved (EVA) Kia, Mercedes and Toyota top NFDA welcomes PM’s £106m pledge for zero- scheme for car retailers NFDA Dealer attitude survey emissions sector

NFDA highlights dealers’ NEW LOW SCORE FOR LATEST NFDA concerns over WLTP Dealer line-up for NFDA DEALER ATTITUDE SURVEY electric vehicle approved July scheme GROUPE RENAULT ENCOURAGES YOUNG PEOPLE TO CONSIDER AUTOMOTIVE RETAIL Clean Air Zones ‘unfairly NFDA’s Electric Vehicle Approved scheme gets OLEV UK-EU transition deal ‘crucial’ for targeting’ hauliers are not endorsement automotive industry - NFDA the way forward Mitsubishi Motors in the UK secures top ten spot in latest NFDA Dealer Government ‘not giving Attitude Survey enough advice’ on April NFDA dealer attitude survey deadline is looming: Mitsubishi Motors electric cars encourages dealer to participate Mitsubishi Motors in the UK gets a top 10 ranking in latest Government urged to August NFDA Survey improve electric car incentives NFDA: Toyota, Hyundai and Kia top dealer electric vehicle satisfaction rankings Franchised dealer rated UK new car market up 1.2% as most reliable by car in July for NFDA owners Renault and Dacia join NFDA Toyota tops NFDA electric vehicle dealer attitude survey Drive My Career recruitmentinitiative September

UK trade bodies ask Renault and Dacia join Toyota charges into lead NFDA Dealer Attitude Survey summer NFDA’s Drive My Career in NFDA’s first EV Dealer government for clarity on low- emission treatment of HGVs 2018 sees general upward movement initiative Attitude Survey 20