GET SET FOR MOT SPIKE / P4 DVSA MOT extensions will lead to a surge in September tests EXPECTATIONS TOO GREAT / P8 Sales for the first half of the year fail to match up with SMMT projections www.am-online.com August 2021 £8.00 CHOOSE YOUR SUPPLIER / P29 Our 37-page supplement looks at the latest deals, newest technologies and ‘THE best advice from key supply sectors ULTIMATE REALISATION OF DIRECT SALES’ GENESIS ON THE START LINE OF ITS PREMIUM SECTOR ASSAULT / P18 EDITOR’S LETTER here’s plenty to feel good about this summer. Sports fans are being allowed inside stadiums again, theatre shows are back on and dealerships still report demand for cars is outstripping supply. The feelgood factors will surely enhance motor retail’s opportunities to do business in the weeks and months ahead. Many consumers have already committed to not taking a foreign holiday while the pandemic continues to make forward planning a challenge, so tempt them to treat themselves in other ways, such as with a change of car. T While OEMs’ new vehicle production issues may hold UK car sales back from a September record, there’s huge opportunity in the aftersales market that month (see page four) that needs preparing for now so that you can claw in workshop profits. The next issue of AM magazine will reach you in September, with a bumper edition which will include the AM Awards* coverage. Until then, keep abreast of motor retail’s news and intel at AM-online. * Don’t forget the 2021 AM Awards gala dinner at Birmingham ICC takes place on September 8. Come and join us for some fun and networking. Book your tables at https://awards.am-online.com/booking OUR WRITING TEAM Tim Rose Tom Sharpe Editor News and features editor 2 AUGUST 2021 am-online.com CONTENTS 04 September’s MOT spike MECHANIC UNDER THE BONNET_ISTOCK-879696268_STANDRET THE MECHANIC UNDER UP FRONT INSIGHT 4 News insight 17 5 minutes with... 18 Brand values: 21 The new customer 6 News digest Craig Grant Genesis Europe journey WMS Group commercial Hyundai’s online-only As many social distancing 8 Market intelligence director Craig Grant joined up-market offering has a measures are removed and 14 Opinion the business three weeks ‘crawl, walk, run’ approach restrictions are eased, we before the initial lockdown. with no volume targets, ask how many pandemic- He outlines the progress says managing director accelerated new ways of that has been made Andrew Pilkington working are with us to stay? TALENT CHOOSE YOUR 70 People on the move SUPPLIER 71 Eight questions to... group property 30 Auctions and remarketing director Mark Taylor 34 of JCT600 Digital marketing 38 Insurance add-ons 42 Online reputation management 46 Paint protection SHOWROOM 50 Service Plans 54 Valeting 66 Genesis GV80 58 Video 69 Long-term report 62 Warranty am-online.com AUGUST 2021 3 NEWS INSIGHT MECHANIC UNDER CAR WITH LIGHT_ISTOCK-1220305449_GORODENKOFF CAUGHT IN AN MOT TSUNAMI Workshops face a testing time in every sense as DVSA’s pandemic-prompted extensions look set to increase MOT demand by 580,000 more than normal ar retailers battling offering to ensure that they reclaim According to GiPA, 56% of all MOT “That way you have control of your vehicle supply short- that lost business.” tests performed in 2019 were customer base and don’t run the risk ages must prepare carried out with extra work. of losing trade at what is now the key C for an MOT-driven NEW SEASONAL NORM Ure said that, according to data month of the year from an aftersales September after- GiPA UK general manager Quentin held by eDynamix, the average perspective,” he said. sales surge that could help forge the Le Hetet said: “We’re seeing a new additional customer spend on an “Without sight of when your foundations of a strong second half seasonal norm for MOTs that means MOT visit was £85. customers’ vehicles are due for an of 2021. a lot of trade in September. It’s not Ure suggested that car dealer- MOT, you don’t know what capacity That is the message from sector ideal and could prove a big headache ships with regularly cleansed, and you need.” analysts, suppliers and retailers for some businesses, but, after what DVSA-aligned, MOT data and a who are already adapting their was a very quiet Q1 for many, there customer contact strategy would EMBRACING THE OPPORTUNITY businesses to be ready for a new should be an excitement and desire have an advantage in preparing for TrustFord aftersales director Stuart seasonal spike which will see to make the very most of it you can.” September. Cresswell said he was looking dealerships and garages faced with While Let Hetet is hopeful that an estimated 580,000 more MOTs dealerships might be able to entice GIPA MOT AFTERSALES REPORT 2021 VS 2021 EXPECTED than in a normal September. customers to bring forward their The sudden flow of vehicles into MOT with consumer offers – leading workshops follows the Driver and to a softening of the high-stakes Vehicle Standards Agency’s (DVSA’s) September “boom” period – he COVID-prompted MOT extensions. conceded that the process would And a failure to rise to the take time. challenge could pose a risk to the Ure agreed and re-asserted that future of dealerships’ aftersales businesses should be working hard volumes for years to come, according to capture all the aftersales work to eDynamix strategic account they can in what will be a chaotic director Steve Ure. September for workshops. “Last September some dealer- He said: “50% of the MOTs that ships struggled to get back up to would normally have been due in speed in time for the glut of MOT March are now due in September. demand and fast-fits benefitted from “What that means is that next year that as customers looked for an – in the early part of 2022 – dealers alternative,” he said. are going to be very quiet on MOTs. “This time around franchised “This isn’t a trend just for the short- dealerships should be making it a term, this is also about the next GiPA reported that aftersales activity in the UK had been 14.9% up in Q1 for priority to ensure they have the 36-to-60 months. The MOT exten- franchised car retailers. Its projection for the remainder of 2021 clearly shows capacity to cope with what’s on its sion is going to have a lasting effect Q3’s anticipated MOT and servicing peak. way and – more than that – an over a number of years.” 4 AUGUST 2021 am-online.com SEND US YOUR NEWS If you have any news stories you’d like to let us know about email us at [email protected] COVID EASING BOOST TO SALES September’s aftersales surge customers in and out as quickly could be timed perfectly for car as possible to having that dealers looking to entice enhanced experience again,” he customers into a new car said. “Of course that comes with purchase in the key numberplate added retail opportunities.” change month. Turner agreed with the The combination of an sentiment, but said that Chorley aftersales surge and July 19’s Group had already shifted to scheduled return to normal make the most of the car retail trading conditions should deliver opportunity presented by its the sector’s largest month of aftersales customers. showroom footfall and a retail She said: “We’ve already been WE’VE RIPPED-UP opportunity the likes of which employing waiting appointment sales executives have not seen over courtesy cars. THE INSTRUCTION since before the pandemic. “The showrooms are big BOOK EVERY DAY Swansway Group director, enough to accommodate social Peter Smyth, said he doubted distancing, so we actually SINCE MARCH LAST YEAR the easing of lockdown opened up our wait-in restrictions would further boost appointment from around STUART CRESSWELL, TRUSTFORD sales which were “already at a six-a-day per site to 20. very high level”. “It’s been a tough period, But he was keen to see the but having people in the facility return of an enhanced customer where possible gives us an service proposition. opportunity to maintain “It will be nice to shift from a relationships and perhaps position of trying to get sell them a new car.” return of extended opening hours – then a 6% dip in August before a 96% EDYNAMIX DEALERSHIP MOT AFTERSALES 6am until 10pm at some sites – along increase in September.” with Sunday opening. Turner told AM that the group is 1800 The business has also increased already in the process of boosting its 1600 1400 its number of technicians already to aftersales capacity and MOTs are at 1200 facilitate its mobile servicing offering the heart of its strategy. 1000 800 and – thanks to July 19’s expected She said that – as it currently 600 ditching of COVID-19 social distancing stands – MOT ramps with a capacity 400 200 regulations – is set to bring back its for between eight and 10 tests per 0 ServiceNow express aftersales day would have to handle 17 in service. September to meet demand. July April May June August March Octobe r January February September November December Cresswell said: “The changing While she conceded that some COVID regulations mean we can MOTs would be outsourced, with any 2019/20 2020/21 have two technicians on a car again servicing or remedial work retained eDynamix shared MOT data from a 14-site franchised car retail group to show how and properly market that offer of by the group, efforts are being made the volume of aftersales work had shifted due to the DVSA’s MOT extensions.