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M-Am-July-2020.Pdf AUTOMOTIVE MANAGEMENT www.am-online.com July 2020 £8.00 LET’S DRIVE YOUR GROWTH with innovative tailored motor finance, GAP and warranty solutions FIND OUT MORE HERE MMF_MAR000856_Motor_Finance_AM_Mag_Advert_Front_Cover_0520.inddF_MAR000856_Motor_Finance_AM_Mag_Advert_Front_Cover_0520.indd 1 008/06/20208/06/2020 112:352:35 OUR FLEXIBLE MOTOR SOLUTIONS “During the current crisis it has given us a unique period of time to reflect on our businesses, what we do well and what we need to do to prepare for the future. At BNP Paribas we want to help your business by playing our part and providing many core services in an agile way.“ Andrew Brameld, managing director of BNP Paribas Personal Finance’s motor division in the UK “The Motor Industry is a dynamic and evolving one. I cannot remember a time when it has been subject to so many challenges and pressures as it is now. From consumer expectation, platform technology, distribution and regulation, every axis of our businesses is moving with pace. BNP Paribas Cardif’s role in that environment is simple; to take the insurance product complexity and risk away, whilst generating income and loyalty to your business.” Simon Ackers – Chief Executive Officer - BNP Paribas Cardif Limited WHY CHOOSE US? BNP PARIBAS PERSONAL FINANCE BNP PARIBAS CARDIF LIMITED We are a leading provider of consumer We are a leading experienced provider of finance solution and part of BNP Paribas, a vehicle protection products and part of BNP global banking group Paribas, a global banking group Over 60 years delivering innovative motor Over 20 years’ experience in the UK delivering finance solutions globally leading warranty and Gap Insurance 1,800 dealers in over 10 countries Innovative and ethical data-driven approach 16 manufacturer partnerships Extensive know-how to ensure quality service Partner and customer focussed with a Customer-centric products, processes full range of finance products and culture FIND OUT MORE HERE MMF_MAR000856_Motor_Finance_AM_Mag_Advert_Inside_Front_Cover_0520.inddF_MAR000856_Motor_Finance_AM_Mag_Advert_Inside_Front_Cover_0520.indd 1 008/06/20208/06/2020 115:095:09 PENDRAGON / P24 CEO Bill Berman talks costs, crisis management and conquering the used car market RESPONSIBLE RETAILING / P30 How dealers have prepared for the new normal AUTOMOTIVE MANAGEMENT www.am-online.com July 2020 £8.00 CHOOSE YOUR SUPPLIER / P35 Newest technologies and best advice from suppliers to automotive retailers BACK TO BUSINESS UK MOTOR RETAIL IS LET LOOSE FROM LOCKDOWN / P8-13 adRocket Because not all car buyers are the same In recent years, Startline has brought the concept of near prime motor ðQDQFHLQWRIDVKLRQDSSURYLQJPDQ\XVHGFDUEX\HUVZKRKDYHEHHQ UHMHFWHGE\SULQFLSDOOHQGHUVZKLOHRIIHULQJFRPSDUDEOHWHUPV Our Finishline product takes this a step further. 'HVLJQHGIRUSHRSOHZKRGRQËWTXLWHðWWKHFRQYHQWLRQVRIRXUFRUH KLUHSXUFKDVHSURGXFWLWVDWLVðHVDQHJOHFWHGQHHGIRUPLGPDUNHW PRWRUðQDQFHWKDWLVEHORZSULPHEXWDORQJZD\IURPWKHSXQLVKLQJ UDWHVDQGFRQGLWLRQVRIVXESULPH )LQLVKOLQHPHDQVZHFDQVD\\HVWRPRUHXVHGFDUEX\HUVÂDQGDUHDOUHDG\ GRLQJVRIRUVRPHRIWKHODUJHVWPRVWIRUZDUGORRNLQJGHDOHUVLQWKH8. ,WHPERGLHVWKHZKROH6WDUWOLQHDSSURDFKÂPRUHĞH[LEOHPRWRUðQDQFH FRPSHWLWLYHO\SULFHGZLWKH[FHOOHQWVHUYLFHVWDQGDUGV:K\QRWJHWLQ WRXFKWRðQGRXWKRZRXUSURGXFWVFRXOGORRNMXVWULJKWIRUPDQ\RI \RXUFXVWRPHUV" HQTXLULHV#VWDUWOLQHPRWRUðQDQFHFRP ZZZVWDUWOLQHPRWRUðQDQFHFRP FP_AM_39760Starlid4129138.pdf 12.05.2019 09:29 EDITOR’S LETTER ery difficult news this month that Lookers is set to make 1,500 redundancies, which is close to 20% of its entire workforce. All dealers are having to consider costs and job cuts due to the shock coronavirus has created in the UK economy and all industries, and I hope that those affected will soon find alternative employment, whether in the automotive sector or elsewhere. Coronavirus’ impact aside, I do find it a bit frustrating that the motor retail industry is driven in cycles of boom and bust. When times (and margins) are great carmakers flood the market with new cars and Vdemand that dealers expand or upgrade showrooms and increase sales staff and technicians to cope. Then, inevitably, the peak passes and manufacturers reduce supply, so extra headcount and corporate identity (CI) investment becomes a burden. The property investment is largely fixed. The headcount is flexible. The trade bodies have cited Brexit instability, regulatory instability and now coronavirus instability as having damaged the car markets. But until motor retail actually changes its patterns, isn’t instability going to be the constant feature? Four years ago, Lookers’ prior senior management team told me the UK new car market looked good for hitting three million annual sales by 2020. Now, in 2020, reaching two million will be an amazing result. MEET THE TEAM Tim Rose Tom Sharpe Stephen Briers Jeremy Bennett Editor News and Editor-in-chief Head of digital/ features editor associate editor am-online.com JULY 2020 5 adRocket COMPREHENSIVE GLOBAL CERAMIC COATING MARKET LEADING TRAINING & CONVERSIONS SUPPORT LEADERS CRYSTAL COAT - THE CERAMIC PAINT PROTECTION KEY TO THE PLATINUM SYSTEM - OFFERS UNRIVALLED GLOSS RETENTION, SWIRL AND CHEMICAL RESISTANCE. GTECHNIQ’S REVOLUTIONARY DEALERSHIP SYSTEM INTRODUCES DETAILING EXPERTISE AND UNBEATABLE PRODUCTS TO THE MIX. GIVE YOUR CUSTOMERS THE BEST PRODUCTS AND SERVICE, AND KEEP YOUR PROFIT PER RETAIL UNIT FIGURES SOARING. 180828 Platinum advert Automotive Management.indd 1 28/08/2018 11:57:53 FP_AM_180828Platid3599109.pdf 08.28.2018 14:32 CONTENTS Restoring confidence, 24 profits and smiles at Pendragon UP FRONT INSIGHT 08 News insight 24 Face to face: Bill Berman 30 Responsible retailing ‘Lockdown prompts retail re-think We speak to the man who took over Pendragon at its Ensuring that car sales are carried out in a 12 low point. Already faced with restoring leadership safe environment is one of the many tasks News insight and profitability, now he’s steering it though the facing dealerships as they bid to re-engage Picture special as showrooms reopen coronavirus pandemic too. with customers and prospects 14 News digest 16 Market intelligence 22 Opinions CHOOSE YOUR SUPPLIER 36 A u c t i o n s 40 Warranty 44 R e p u t a t i o n s TALENT Auction houses have been Many of the sector’s Building – and keeping – a keeping busy while leading warranty good reputation is no easy dealerships have been suppliers have used task. These companies 51 Avoiding the pitfalls in lockdown. We look at COVID-19 downtime to will help you keep your when hiring staff some of their initiatives enhance their offerings good name 52 People on the move 53 Eight questions to... Sally Dennis, used cars SHOWROOM & remarketing director at Mercedes-Benz 48 Mini Electric 50 Long-term reports am-online.com JULY 2020 7 NEWS INSIGHT LOCKDOWN WAS BAD NEWS, BUT NOT ON EVERY FRONT Dealerships took advantage of enforced closure to re-examine their ways of working ar retailers are Far-reaching restructures may now, but the current situation has bomb has been ticking for some time. being urged to mean mass redundancies and only added credence to it – retail The whole retail property market is dispose of their dealership closures at some AM100 groups need to get out of their looking weak and in automotive retail, C outlying franchised retail operations. Yet some sector outlying locations if possible.” with its inefficient use of space, that’s locations as part of bosses described the enforced With many AM100 operators particularly the case. their efforts to restructure for the pause and re-start of the car retail relying on the value of their property “If prices start to slide due to a lack “new normal” following the sector as “my best time in business” assets as valuable security following of demand it could cause banks to COVID-19 lockdown period. and “a breath of fresh air” that could losses incurred during the near worry about their security and start to Consumer apprehension about spark a positive transformation for three-month lockdown of show- renegotiate their terms. In that re-entering showrooms and the sector – with property forming rooms across the UK, a move away scenario you don’t need to be a dealer embrace of online retail has combined just part of the puzzle. from dealership property – and group in trouble to suddenly hit diffi- with manufacturers’ existing down- ICDP managing director, Steve resulting devaluation of legacy sites culties.” sizing plans to move network consol- Young, told AM: “It has been advice – could prove devastating. Insurance giant Aviva said in a May idation up the strategic agenda. given to our clients for some time Young said: “The property time- earnings update that it expects commercial property prices to decline by 15% in 2020 as a result of the IT HAS BEEN ADVICE GIVEN TO OUR impact of the COVID-19 pandemic. CLIENTS FOR SOME TIME NOW, BUT THE ‘WASTE OF SPACE’ Nathan Tomlinson, owner and prin- CURRENT SITUATION HAS ONLY ADDED cipal dealer of single site Mitsubishi CREDENCE TO IT - RETAIL GROUPS NEED TO GET retailer Devonshire Motors, is one dealer group boss who has already OUT OF THEIR OUTLYING LOCATIONS IF POSSIBLE considered the inefficiency of the car dealership environment for post- STEVE YOUNG, MANAGING DIRECTOR ICDP lockdown trading. 8 JULY 2020 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] DEVOLVED DELAYS Scottish Motor Trade Association Eighteen dealerships wrote a (SMTA) chairman, Sandy joint letter to First Minister Mark Burgess, told AM
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