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Autumn 2019 Voice The The Official NFDA magazine for the Industry In this issue... Brexit Guidance Drive My Career Feature Latest Consumer and Dealer Attitude Surveys ...and more! The Voice interviews Stuart Hodson, Glyn Hopkin Operations Director
is sh aping u p to be the Welcome to the Autumn NFDA Membership E m otive M anagement LIV o ur bu sine ss this year Auto y Edition of the Voice Details Update yo u’ll sp end away from Following the official launch of the Electric best day Vehicle Approved (EVA) scheme in May, over 90% of the slots available to dealerships have already been filled. The auditing process is progressing well and the dealerships that have obtained their EVA accreditation have started to display EVA branded material. Please email eva@rmif.co.uk for more information. In September, we published the NFDA Dealer Attitude Survey Summer 2019. Overall, there Sue Robinson was a minor decline in dealers’ satisfaction Director, NFDA levels with their respective manufacturers. To ensure our data is fully compliant with Lexus topped the survey with the highest GDPR we are required to maintain and update Dear Colleague, average score across all questions while the information we hold for our member Honda saw the biggest improvement. organisations. It would be extremely helpful if As we enter the final quarter of the year, there NFDA members could provide the following remains uncertainty surrounding Brexit. The In December, the final round of our regional meetings will take place. These meetings will information for their company, especially, where UK is about a month away from its planned there have recently been changes. This will allow departure from the EU and we urge franchised be crucial to help retailers ‘Prepare for 2020’ REGISTER NOW us to distribute the correct and most relevant retailers to take seriously the idea that a ‘no and we encourage you to attend and discuss information to the right person. You can send us deal’ Brexit is fast approaching. To continue the key issues facing your business. Your your updated details via our website or by email. to assist you, we have commissioned feedback is vital. automotive research body ICDP to compile a Key information includes the main contact In addition, we have a wide program of list of questions for franchised retailers to ask name, main contact email address and member events over the coming months. In of their manufacturer partners, suppliers and main contact job title. Other important details particular, the first NFDA EV Marketplace themselves. Please find more details in The may include the name and email address of Seminar, our dealer trip to NADA Las Vegas Voice. your company CEO, Finance Directors, Brand and the NFDA Spring Ball 2020. Please find Manager(s), Aftersales Director, Executive PAs Drive My Career continues to grow. In more information in The Voice. as well as additional management roles. Please DIGITAL RETAILING FUTURE F&I IMI 2019, more than 20,000 young people aged between 16 to 24 were redirected by NFDA is the voice of automotive retailers: specify your company name and membership BEST BEST DEALERSHIP SEMINAR PEOPLE if you need any assistance or to register to number when you send us your updated Drive My Career to member career portals. attend a meeting or event, please email nfda@ contact details. PRACTICE PRACTICE ZONE THEATRE Additionally, Drive My Career continues to use stories, videos and run campaigns to improve rmif.co.uk or contact our member helpline at All email correspondence can now be sent to MASTER MASTER 01788 538303. the perception of our sector highlighting all our new generic email address nfda@rmif.co.uk which is monitored by our admin team. The CLASSES CLASSES the positive aspects of a career in the retail member helpline remains 01788 538 303 and is ham automotive industry. For more details, please email info@drivemycareer.co.uk. open from 9am to 5.30pm, Monday to Friday. EC, Birming N V E M B E R 2 019 7th NO e.co.uk entliv NFDA 2019 REGIONAL MEETINGS: DATES & VENUES m o t iv e m a n agem aut o 19 #AMLIVE @AMLIVE20 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 include new and used car market, dealer and manufacturer relationships, aftersales, F&I, consumer legislation, regulatory issues as well as HR and employment, with a focus on Drive My Career. Our members’ attendance to the meetings is extremely valuable as dealers’ inputs are instrumental in setting the direction of our work. In turn, dealers find the meetings useful as they allow them to raise concerns, learn about new matters and stay up to date on the latest happenings in automotive retail. MIDLAND NORTH SOUTH NFDA COMMERCIAL Double Tree by Hilton, Park Royal, Warrington Hilton, Cobham VEHICLE COMMITTEE Walsgrave, Coventry • Tuesday 3 December • Tuesday 17 December 201 Great Portland Street, London • Tuesday 10 December • Wednesday 4 December NORTH EAST NMDA EXECUTIVE SOUTH WEST Holiday Inn, York 201 Great Portland Street, London If you would like to attend a Holiday Inn, Bristol • Wednesday 18 December meeting, please contact: • Thursday 12 December nfda@rmif.co.uk Best Practice Sponsors: Feature Sponsors: • Thursday 5 December www.automotivemanagementlive.co.uk For Sponsorship or Exhibiting Opportunities please contact amlive@bauermedia.co.uk 2 3
SAVE THE DATE! RMI EMPLOYMENT LAW REASONABLE ADJUSTMENTS: CONSTRUCTIVE KNOWLEDGE OF DISABILITY Did a Respondent have constructive knowledge of disability in BULLETIN AUTUMN 2019 circumstances where the Claimant had not been forthcoming about her disability? NFDA Spring Ball 2020: employment tribunal had found that Ms Chikale had not knowingly No, not on the facts in this case, held the EAT in A Ltd v Z. The Claimant, who the parties agreed was disabled as a result The automotive social networking event of participated in any illegality, there was no reason to deny her a of mental and psychiatric impairments, was dismissed by the remedy. Respondent because of poor attendance and timekeeping issues. Comment It will be clear why the Court of Appeal came to that conclusion, in Her poor attendance was something that arose in consequence of her disabilities. the year wanting to protect those who are being exploited. The tribunal found that the Respondent did not have actual knowledge of disability, but did have constructive knowledge, and The case is worth reading by those interested for its detailed the Claimant’s s.15 Equality Act claim succeeded. The Respondent consideration of the illegality defences. knew nothing more than that the Claimant had experienced personal AGENCY WORKERS problems and suffered stress as a result. However, the tribunal found that it should have made further enquiries of the Claimant and fixed Was an agency worker entitled to be offered the same number of the Respondent with constructive knowledge accordingly. hours of work as those performed by a permanent employee? The tribunal’s error was that it had only asked itself what process No held the Court of Appeal in Kocur v Angard Staffing Solutions the Respondent might have been expected to follow, but failed Limited. to then address the crucial question of what the Respondent Welcome to the Autumn Edition of the RMI Employment ought to have known. Based on the tribunal’s finding that if further The NFDA Spring Ball is the ideal event to have The Agency Workers Regulations 2010 entitle an agency worker to law email bulletin. Please note: in this bulletin MILS aims to enquiries had been made the Claimant would have continued to the same conditions of work as a permanent employee, but this does fun and network with industry stakeholders while keep you up to date on some of the latest developments in suppress information about her mental health problems and refused not extend to an entitlement to be offered the same number of hours celebrating the excellence of the automotive employment law and although the bulletin is not intended an occupational health referral, it followed that further enquiries of work as those performed by a permanent employee industry. to provide a comprehensive summary of all the changes to would have made no difference and the Respondent did not have the law, we hope to highlight some key areas of change for The Court of Appeal held the purpose of The Agency Workers constructive knowledge accordingly. The claim therefore failed. The event will be back on Saturday 25 April at the motor industry employers. Regulations 2010 was to ensure the equal treatment of agency workers and permanent employees while at work, and in respect of COUNTERCLAIMS luxurious Grove Hotel in Hertfordshire. An exciting It has been a relatively quiet time for Employment law legislation. This rights arising from their work. The Regulations did not regulate the evening with good food, fine wine and first-class year perhaps even more so, with the Government’s energy all taken The Employment Tribunal is a form for employees to bring claims amount of work which agency workers were entitled to be given. entertainment is guaranteed. We will be presenting up in another matter… Those employers concerned about assisting against their employers. If however, an employee claims breach of three awards for Manufacturer of the Year, Industry Comment contract against their employer then the employer can counter claim EU employees before Brexit should by now be up to speed with the Partner and Special Recognition. Back by popular for breach of contract in the Employment Tribunal. The Employment settled status scheme, but for any employer or employee needing This is a welcome clarification from the Court of Appeal which gives demand is your host and compere for the evening, Appeal Tribunal (EAT) had to consider the following question: a reminder, the best information is available on the Gov Website: certainty on the limits of the protections under the Agency Workers TV presenter Mark Durden-Smith! https://www.gov.uk/settled-status-eu-citizens-families/applying-for- Regulations. Can an employer’s counterclaim continue even if the employee has settled-status withdrawn their breach of contract claim? Our guest speaker will be announced soon. TUPE: KEEPING MINIMUM WAGE RECORD In this bulletin we are therefore going to look at some Case Law, as Yes, held the EAT, in Cortel Telecom Ltd v Shah. follows: Does the obligation to keep and therefore produce wage records for transferring employees remain with the transferor in a TUPE transfer? The Claimant (a sales consultant) brought a number of claims CASE LAW UPDATE following his dismissal, including unfair and wrongful dismissal, arrears Venue: No, held the EAT in Mears Homecare Limited v Bradburn and others. of pay, and claims for other payments. The Respondent brought a • Illegal Contracts The Grove, Chandler’s Cross, Watford, WD3 4TG Section 9 of the National Minimum Wage Act 1998 (NMWA) imposes contractual claim for overpaid salary and the value of lost business. At • Agency Workers an obligation on employers to keep pay records. The obligation the hearing, the Claimant withdrew most of these including a breach Date: Saturday 25 April • TUPE: keeping minimum wage records of contract claim, limiting his claim to unlawful deduction from wages. • Reasonable adjustments: constructive knowledge of disability remains where the employee’s employment has ceased. A worker has the right to require their employer to produce pay records if they On that basis, the tribunal held that the Respondent’s contractual Event itinerary: • Counterclaims claim could not proceed. However, it went on to uphold his wrongful 18:45 Champagne reception believe on reasonable grounds that they may have been paid less ILLEGAL CONTRACTS dismissal claim and award the Claimant his notice pay. 20:00 Dinner than the national minimum wages. Where contracts are tainted by a legality, it is sometimes possible for The EAT held that the tribunal had overlooked that, following 22:00 - 00:00 Entertainment The Claimants transferred to new employers under TUPE. Around a party to the contract to argue that it is void and unenforceable in Delaney v Staples, a claim for notice pay cannot be brought as an four months later, they served production notices on the Respondent Dress: Black tie Law. A recent case considered the following question: unlawful deduction from wages. The claim for wrongful dismissal requesting wage information. The Respondent failed to respond was properly brought but this meant that the Respondent was Can an employer rely on a breach of the immigration rules to argue to the production notices within the 14 day time limit. The tribunal still entitled to have its contractual claim heard, whether or not the Host: Mark Durden-Smith that an employment contract is unenforceable? ordered them to pay £600 to each Claimant, that sum being 80 times Claimant withdrew or abandoned his claim. the hourly rate for national minimum wage. No held the Court of Appeal in Okedina v Chikale Comment The EAT overturned the decision, finding that under a TUPE transfer, Ms Chikale was a Malawian national who was summarily dismissed employment does not cease for the purposes of the NMWA, it This case is a useful warning to Claimants (and their representatives) We look forward to celebrating automotive as Mrs Okedina’s live-in housemaid having been paid a derisory continues but with the transferee. Liability to keep pay records to think carefully before bringing a contractual claim, as once the retail excellence with you! sum for the work done. Mrs Okedina argued that the claims of unfair transfers from transferor to the transferee. door is opened to a counterclaim, it won’t be closed if that initial dismissal and unlawful deduction from wages could not succeed as claim doesn’t proceed. For more information The EAT recognised that it may be more convenient for the transferor Ms Chikale was working illegally because her leave to remain had Don’t forget, this advice is general in nature and will need to be tailored and to book to maintain pay records as they had collated them but said that was expired. not a good reason for the obligation not to transfer. There was no to any one particular situation. As an RMI member you have access your tickets, The Court of Appeal held that Immigration Asylum and Nationality reason why the transferee should not be in a position to insist that to the RMI Legal advice line, as well as a number of industry experts please email Act 2006 was not directed at those working illegally but instead pay records are delivered by the transferor as part of the transfer for your assistance. Should you find yourself in the situation above, nfda@rmif.co.uk imposed penalties on those who employed people who were. As the agreement reached. contact us at any stage for advice and assistance as appropriate. 4 5
“ New technology is Q first-generation Nissan Leaf charge distance from Harwich. They usually come in, charge and carry on to London. There is a different skill set as you may need to be able to overcome the customers’ objections and concerns comes before selling a car. Glyn Hopkin Nissan St Albans was one driving people back in a different way. You need to be able of the first 30 dealer groups involved in A How important are Government to explain the benefits of owning an EV the pilot phase of the Electric Vehicle incentives to the consumer? in a way that comes across as being Approved (EVA) accreditation scheme genuine as some customers may be into the dealerships ” developed by NFDA. Following the quite sceptical. It’s trying to get people to success of the pilot phase, the scheme Apart from the economic benefit, people accept the advice. was officially launched in May. Stuart tend to like the idea that they are getting is a member of the EVA steering group something back from the government. I think the new vehicles are helping and his role has been instrumental to Often, these deductions do support the industry move forward. The new the development of the scheme. The Voice interviews Stuart Hodson, In our latest Consumer Attitude consumer confidence and potentially drive consumers to accelerate their products are likely to bring people into dealerships as staff are more technology Survey, 51% of respondents Glyn Hopkin, Operations Director indicated battery range as a major buying decision. and product-focused. This can also build customer trust. It will be more and more What are the benefits of EVA? barrier to EV purchase, but the average distance travelled by Do electric cars need to be treated about an advisory relationship with our Stuart Hodson joined Glyn Hopkin evolution into firstly hybrids and then EVs I think the scheme benefits not only differently than petrol or diesel? customers rather than just transactional. has made the customers much more people in the UK is much less franchised dealers but also those in 1993 after his A levels 26 years likely now to go to a dealer to have all than what people perceive. Do retailers that have less or no interactions ago and he has never looked back. Motivating your staff is a key part with manufacturers. EVA will help the necessary information explained you see this happening also with I think it is important to avoid treating Over the past years, he has come them differently as much as possible. of your role. Has the approach to bring everyone up to a good level to them. Whereas if it had just carried your customers? across a number of challenges and When you start treating them differently your staff changed to reflect the of knowledge on EVs which is very changes in the automotive sector. on as petrol and diesel, people would it reinforces customers’ perception changes in the industry? important for the growth of the sector. have been much more comfortable Yes, 60% of our customers could In 2017, he won the prestigious that there’s something different and to just buy online. Now consumers probably manage quite happily with A lot of customers start their journey Nissan EV CEO award, where complicated about them. You want Yes, years ago you would have been are well informed as they do a lot of an EV but only 5% or 6% are buying looking at a three or four years old used Glyn Hopkin was one of just 25 to treat EVs as much as possible the very focused on results. ‘How many cars research online. However, they look for them. We use this as an example to our car and then they end up moving into in the world to be recognised for same way. On our website, we have a have you sold?’ was always the first reassurance and feedback from dealers customers: we get a lot of people from main dealer territory where they look their success in EV sales. Today, dedicated EV section purely to optimise question. Now, although this remains as well as a competent demonstration of Holland who arrive on a ferry to Harwich. at the latest cars. For this reason, you he does not see the move from our customers’ search. what a salesperson’s job is about, it the product they are considering. Our Colchester dealership is about a need high levels of knowledge across the internal combustion engines to is not necessarily the key metric. It is industry. Customers must get the right electric as a disruptor and he Do salespeople need different important that today’s salespeople have level of expertise and experience on EVs skills to sell EVs? the right skills, knowledge and attitude sounds optimistic about 2020. from the beginning to the end of their to be able to handle the process that buying and ownership journey. What are consumer attitudes “EVA will help towards electric cars? bring everyone up to a good level of There is a growing natural customer demand now. Based on what our knowledge on EVs ELECTRIC VEHICLE APPROVED SCHEME SLOTS customers say consumers are very ready for what‘s available now and are almost which is very important hungry for what’s coming next year. The for the growth of process customers go through is still broadly the same, however, they tend the sector.” FILLED IN RECORD TIME to ask more questions and need more between EVA and key players in the EV information to reinforce the decision they sector will be announced soon. are making to switch to an EV. Electric Vehicle Approved There is a set of standards that Are supply constraints still a businesses need to meet to obtain the The new technology is driving The Electric Vehicle Approved significant issue? EVA accreditation. These cover the people back into the dealerships. (EVA) accreditation scheme most important aspects of EV retail and was developed by the aftersales requirements. In retail these It is improving slightly; I think 2020 is the What is the biggest National Franchised Dealers include sales process, staff training, year we are expecting to see levels of supply in line with demand. challenge for consumers? vehicle checks, vehicle handover, Association (NFDA) to certify Following a successful pilot phase, the advertising as well as EV warranties. retailers’ excellence in the scheme was officially launched in May There is a core of people that are With regards to aftersales, the areas How important is the role of dealers electric vehicle sector. The and over 90% of the available slots covered also include communication during this period of transition? not even close to considering it. have already been filled. The auditing They have already made a decision scheme is endorsed by the between staff and customers, aftersales process is ongoing and dealerships processes, complementary services, If you asked five years ago where the in their mind that an EV isn’t for Government’s Office for Low that have passed their EVA audit have vehicle collection and invoicing. The traditional dealership would be today, a them. I think that’s the biggest Emission Vehicles (OLEV) and started to display EVA branded point of standards are available on the website at lot of people would have said customers obstacle to overcome. Especially the Energy Saving Trust (EST). sale material. Additional partnerships www.evapproved.co.uk. would buy online and dealers would when an EV suits their lifestyle and struggle to survive. However, the driving habits. For more information and to join scheme, please email eva@rmif.co.uk and follow @EVApproved on Twitter 6 7
OFFICE FOR LOW EMISSION VEHICLES (OLEV) ROAD TO ZERO UPDATE Van Licence Derogation Drive demand for the cleanest vehicles so Review of Worldwide Harmonised Light Vehicle Test Procedure (WLTP) Last year OLEV introduced legislation to increase the weight limit for Category B that by 2040 all new cars and vans sold are and vehicle taxes driving licence holders driving alternatively- fuelled vehicles from 3.5 tonnes to 4.25 effectively zero emissions at the tailpipe. On 9 July HMT published the outcome of tonnes. The change in the law applies to the review into the impact of the WLTP on vehicles driven in the UK only and does not Accreditation for electric vehicle how they can drive the transition in their Vehicle Excise Duty (VED) and company allow the towing of a trailer. Drivers must also technicians own fleet, and asked them to publish a car tax. Key decisions included that complete a minimum of 5 hours training. yearly progress report. in order to accelerate the shift to zero The Institute of the Motor Industry (IMI) emission cars, all zero emission cars will In response to stakeholder feedback, earlier this year they published guidance that are seeking OLEV endorsement for pay no company car tax in 2020/21, 1% their TechSafe™ professional standard in 2021/22 before returning to the planned set out details of the training required for drivers to take advantage of the new law. and register for electric vehicle (EV) 2% rate in 2022/23 – a significant tax technicians. This aligns with the Road saving for employees. On VED, a call for It also describes the system of certification that will allow drivers to prove that they to Zero commitment to ensure the UK’s evidence will be published later this year workforce of mechanics are well trained seeking views on moving towards a more have completed the training. This change in legislation should help make it easier and have the skills to repair EVs safely. dynamic system which recognises smaller differences in CO2 emissions. for organisations to introduce alternatively TechSafe™ is a voluntary scheme fuelled vehicles into their fleets. with three aspects: Go Ultra Low Electric Vehicle Approved – • Standards to ensure that EV Dealership Accreditation Scheme technicians are suitably trained to Go Ultra Low (GUL), the joint work safely; government and industry campaign to Following a successful pilot, government • Requirement to demonstrate promote ultra-low emission vehicles has endorsed the ‘Electric Vehicle Approved’ training to the appropriate level; just launched its consumer advertising scheme. In its first year of operation OLEV • A professional register which campaign. A targeted fleet campaign, is providing financial support toward the qualified technicians will be run in association with the Energy cost of audits for accreditation to the eligible to join, regardless of Saving Trust will be launched later in the WLTP and the plug-in vehicle grants scheme. The scheme has been developed training provider. year. by the National Franchised Dealers OLEV wrote to all grant-receiving Association (NFDA) and the Energy Government Fleet Commitment Plug in van grant manufacturers in June 2019 to explain Savings Trust and provides that they will adopt WLTP standards for customers with a guarantee In the Autumn Budget 2017, the The first ultra-low emission heavy the plug-in grant eligibility criteria for cars that an Auto Retail Business Government made a commitment that goods vehicles (HGVs) are now eligible and light vans. From 1 September 2019, has achieved certain 25% of central government cars will be for the Plug-in Van Grant. The British all cars and light vans (including those standards in EV sales and ultra-low emission by 2022, followed made Paneltex Z75 7.5 tonne truck and currently eligible for the grant) must meet service. by a further commitment in last year’s the BD Auto e-Ducato 4.25 tonne van the eligibility criteria for CO2 emissions and Road to Zero strategy that 100% will be are now be eligible for the grant. The zero emission range using WLTP data to Auto Retail Businesses first 200 eligible HGVs will benefit from ultra-low emission by 2030. receive the grant. For plug-in taxis, OLEV have a critical role in a higher grant rate of up to £20,000 will accept the WLTP ‘electric city range’ the success of zero The Government Car Service, managed per vehicle. Given the early state of results. The eligibility criteria are otherwise emission vehicles, and by the Department for Transport, is the market for ULEV vans, there are no unchanged. This means that some vehicles particularly in advising on track to meet the targets, with plans to change plug-in van grant rates will no longer be eligible for the scheme. customers about electric vehicles making up 23% of the at the current time. The plug-in van They do not expect this will affect many the advantages, entire fleet today. The then Transport grant will continue in some form until at vehicles. All vehicles currently eligible for practicalities and Secretary wrote to every government least 2020. OLEV will provide as much the Electric Vehicle Homecharge Scheme costs of going department to reinforce the 2022 notice as possible before any future will continue to be eligible. electric. pledge, provided detailed guidance on changes to grant levels are made. 8 9
NFDA EV MARKETPLACE NFDA Parliamentary SEMINAR Engagement Programme Book your place! Date CONTINUES IN 2019 The NFDA Parliamentary Engagement Programme was launched two years ago Tuesday 3 December 2019, 10:00 to 13:00 to raise awareness of the contributions the retail automotive industry makes Venue to the local and national economy. Over the past two years, many MPs and parliamentarians have met with franchised retailers in their constituencies. Avon Suite, Warwick Hilton, CV34 6RE The new NFDA EV Marketplace Seminar will take place on 3 December 2019 at the Warwick Hilton. Keynote speakers will walk dealers through the electric vehicle landscape and analyse challenges and opportunities for the sector. These will include current issues such as supply constraints and consumer barriers as well as future market trends. Additionally, EV focused exhibitors past three and a half years, will showcase their latest products Oliver is an experienced and and services. The event will end with a well-networked corporate communications professional, networking lunch. having worked in both brand (SEAT, Bentley) and function Confirmed speakers roles at a national and global level. Graeme Cooper, On Friday 12 July, Tom Tugendhat Electric Vehicles Oliver’s key responsibility is MP visited Humphries & Parks Project Director at to co-ordinate a UK Group- Mitsubishi in West Malling. the National Grid. level stakeholder engagement Alex Chalk MP for Cheltenham Graeme leads National strategy by maintaining Tom Tugendhat MP for Tonbridge and visited Inchcape UK VW Friday 16 Grid’s work on relationships with brand Malling met with Humphries & Parks August. During the visit, the following electric vehicles and Oliver Larkin, Volkswagen PR, legal, Governmental On Friday 5 July, when JLR Managing Director Marcus Joy and topics were debated: consumer decarbonisation of Group UK Head of Group Affairs, media, and industry announced their latest investment NFDA Director Sue Robinson. The confidence and the effects of transport by leading Corporate and Public representatives. in electric cars, Sheryll Murray MP key themes of discussion included the uncertainty caused by Brexit, and coordinating all Relations. the relationships between dealers employment levels in our industry, as Further details including visited NFDA member Roger Young the work relating to the and manufacturers, the need for well as diesel and the development UK regulated business Having led Investor Relations the other speakers will be Ltd Land Rover in Saltash. Government to provide clarity on the of the electric vehicle sector. of National Grid. at Volkswagen AG for the announced soon. Brexit process as well as business The MP met with Roger Young’s issues in the local area. Sales Managers Chris Johns (Land These visits provide an ideal Cost On Monday 29 July, Jim Cunningham opportunity to discuss key issues Rover) and Danny Street (Jaguar). The • Dealer Member delegates £25 + VAT per person main topics of discussions were the MP for Coventry South visited Johnsons affecting the automotive sector. • Non-member dealer delegates £75 + VAT per person Hyundai in Coventry. The MP met NFDA will continue to develop the franchised dealer’s levels of investment, Parliamentary Engagement Programme with David Wright, Johnsons Hyundai • All other delegates £225 + VAT per person electric cars and the decline in sales of Franchise Manager, to discuss key allowing franchised retailers to • Stand plus two delegates £2,200 + VAT diesel vehicles, the career opportunities issues facing the automotive retail sector engage with their local MPs and that the automotive retail industry including franchised dealers’ investment parliamentarians. If you would like to • Stand plus two delegates for EV focused NFDA associate members FREE offers as well as the uncertain political levels and the implications caused by host your local MP, please email To book your place, please contact nfda@rmif.co.uk environment. the shift towards electric vehicles. nfda@rmif.co.uk 10 11
NFDA launches ‘no (e.g. Vauxhall Astra and Vivano, Mini), • Will OEMS offer support to new car working in the UK should apply for or producing in the EU, but using customers caught by extended lead settled status if they have not done so components sourced from the UK (e.g. times? already. See here for details: https:// Toyota using engines from Deeside, or www.gov.uk/staying-uk-eu-citizen. • Will additional stock of commonly sold deal’ Brexit toolkit and BMW using engines from Hams Hall), Permanent residence can be applied model derivatives be landed in the UK there would be a delayed effect of for if staff have lived in the UK for five ahead of October 31st to mitigate as vehicles using parts imported/exported years, otherwise they should apply much as possible against disruption to after October 31st, having a higher parts to the EU settlement scheme to be supply, as occurred in Q1 and 2, 2019? cost which would presumably be passed able to remain in the UK. See here for helpdesk for members If so, how much supply in months, and onto consumers in due course. details: https://www.gov.uk/settled- on which models and derivatives? The disruption of “no deal” is already status-eu-citizens-families . Current UK • Will there be any changes to the range government advice is that the deadline reflected in a weakened exchange of models and derivatives offered to for applying if there is exit with a deal rate for Sterling vs Euro, and although UK customers? both would be affected by a “no deal”, is 30/06/21, but no deal would mean Sterling is likely to be more affected. • Will there be any changes to financing applying by 31/12/20, but this advice The United Kingdom is only a few days away from its planned departure from This will therefore create price inflation and dealer invoice points for new cars? may change and should be checked. for any imported product, or product the European Union. The legal and political reality is that the new government with imported content, quite separate • Will there be any other changes to financial services? under Prime Minister Boris Johnson will take the UK from any tariffs. It will also increase the real cost of incentives in the UK Parts out of the EU on 31 October, with or without a deal. market for manufacturers reporting in other currencies and reduce the profits. • Will there be any changes to parts It will therefore be less attractive for prices, whether wholesale, trade, fleet The United Kingdom is only a few days QUESTIONS DEALERS manufacturers to support marketing or retail? away from its planned departure from the SHOULD BE ASKING OF programmes in the UK, with for example, • Are there any anticipated impacts European Union. The legal and political MANUFACTURERS – AND subvented finance. on parts availability? If so, which reality is that the new government under Prime Minister Boris Johnson will take THEMSELVES – ABOUT categories of parts are expected to be the UK out of the EU on 31 October, with PREPARATIONS FOR impacted the most? or without a deal. ‘NO-DEAL’ BREXIT • Are any precautions being taken to • Equally, dealers should be thinking hold increased spare parts buffer Franchised vehicle retailers must now Automotive distribution stocks in the UK to avoid increased ahead about how they will change their take very seriously the idea that a ‘no research, insight, levels of VOR? approach to recruitment and training deal’ Brexit is fast approaching and take implementation of new staff should the supply of steps to mitigate against the potential • Will manufacturers provide any labour supply become more restricted, threats associated with this outcome. financial support to customers or particularly relevant to workshop No-Deal Brexit raises a whole host of dealers where a car is off road for technicians. If the UK leaves without a deal, the UK difficult questions for UK automotive an extended period due to stock will immediately shift to trading under distribution, and no easy answers. • Dealers should be prepared to start availability impacts, requiring courtesy Dealers should be assessing the risks advising customers on possible impact cars for longer? to their business, which includes to supply and lead times for new cars, seeking assurance and guidance from In addition, logistical delays are a real Changes in trading rules and possible delays on parts supply for their franchise OEMs. aftersales. A strong September will be risk, on cars and parts, including the • Has the manufacturer put the Key Risk Areas impacts of handling of import licences. arrangements in place for handling desirable given the supply and price Therefore, Dealers should be asking changes in import rules, and will uncertainty after that, and so even Given that default to WTO rules would though customers may have become manufacturers as to what they intend dealers be expected to do anything be the most likely outcome, and in that very cautious, dealers would be to do to manage the changes. There differently? For example, will the scenario the UK shifts to ‘third country’ justified in encouraging customers to are other, less obvious uncertainties manufacturer and/or importer handle status, tariffs of 10% would then be all aspects of new administrative tasks buy sooner rather than later if they plan including possible impacts on automatically imposed on the wholesale set out for managing trading terms? to buy in the next six months. be levied on car parts in the event of a manufacturer’s financial businesses. price of cars entering the EU from the no deal, for a limited period that remains UK; therefore, the UK is almost certain unspecified. This 0% tariff will apply QUESTIONS FOR OEMS More details: https://www.gov.uk/ • Although manufacturers should have to place similar tariffs on cars entering government/publications/partnership- put in place additional UK stocking of the UK from the EU. It is unclear what to aftermarket parts as well as parts New Cars pack-preparing-for-a-no-deal-eu-exit/ fast-moving aftermarket parts lines, tariffs would be applied on non-EU destined for new vehicle assembly, and, preparing-for-a-no-deal-eu-exit-step-by- some Dealers may want to consider as for cars, the same tariffs would have • Will there be any changes to wholesale sourced imports, but existing EU trade and advertised list prices on new cars? step-guide-to-importing building their own buffer of the fastest agreements with third party countries, to be applied to all imports so that, for moving parts lines, for example, those example, a 0% tariff would apply on car If so, what and when? • Are any special measures expected to whether specific agreed tariffs are be put in place for dealers in Northern that are typically consumed and sold the World Trade Organisation framework. implemented or due to be implemented, parts from the EU and China alike. • Will wholesale and retail prices on new on a weekly basis. Trading on these terms is likely to cars on order now for delivery after Ireland? will become invalid for UK trade and so Despite these Government As of writing we think this a fair involve tariffs on imports and exports, tariffs for these countries now and in the announcements (prior to the change in October 31st be honoured at the prices What should Dealers be an increased regulatory burden for offered at the time of ordering? assessment, but we cannot guarantee future will all default to the same decided PM) regarding special concessions for doing to prepare their own any of this will be pertinent as of October businesses and delays to the delivery of rate (i.e. 10%) until a new bilateral UK imported car parts, there is a risk related • Will there be any lengthening of lead business? 31st, as obviously the situation remains vehicle stock and parts. trade deal is agreed with each country. In to the parts content of cars. There is no times on new cars? If so, what lead very uncertain and unpredictable. all cases it is reasonable to expect that • Weakening of sterling against the Euro NFDA commissioned automotive guarantee that the Government measure, time impacts are expected on each prices will go up by the level of change in may deepen, meaning that currency For further assistance on the research body ICDP to compile a key list if implemented, will be mirrored by the model? Note that this question remains tariff (i.e. 10%). risks should be managed as best as of questions for franchised dealers to ask EU. In the worst case, any manufacturer highly relevant to UK built product, as guidance and no deal readiness, they can. of their manufacturer partners, suppliers The UK government stated in March who is producing in the UK, but using disruption to production schedules are please contact NFDA’s Brexit helpdesk and themselves. 2019 that their plan is that no tariffs will components sourced from the EU a real possibility. • Staff who are EU nationals living and by emailing Brexit@rmif.co.uk. 12 13
REVEALS 95% OF AUTOMOTIVE SECTORS CAMPAIGN GENERATES THOUSANDS OF VIEWS APPRENTICES WOULD STAY WITH THE SAME COMPANY IF THEY RECEIVED A JOB OFFER During the summer, Drive My Career ran Findings from Drive My Career’s latest Insight revealed that 95% of apprentices would a campaign to raise awareness of the job remain with the same company if they received a job offer after their apprenticeship. roles available in the different sectors or business areas of the automotive Industry. Drive My Career is the employment initiative Almost 40% of respondents said the The encouraging figures demonstrate the The campaign has run for nine weeks across launched by the National Franchised Dealers ‘earn while you learn’ element is the most importance of investing in the workforce of Association (NFDA) in February 2018 to important part of an apprenticeship. This the future. The automotive retail industry Facebook, Twitter, Instagram and LinkedIn. improve the perception of the automotive was closely followed by ‘understanding the offers a wide range of rewarding, entry- industry among young people. The initiative targets 16 to 24-year-old potential work environment’ (27%) and ‘gaining early work experience’ (26%). level roles to those looking to start their professional career. Drive My Career #DMCAutoSectors candidates to raise their awareness of the promotes these exciting and often forgotten Each week the focus was on a different sector or business area, exciting career opportunities available in the Drive My Career’s findings mirrored the trend aspects of working in the retail automotive including technicians, sales, customer service, HR and marketing. retail side of the automotive industry. at one of its biggest members, franchised industry. The campaign included information on the career progression dealer group JCT600. JCT600 operates within the sector, typical job tasks, the qualifications needed, Drive My Career polls its target audience in Yorkshire, Lincolnshire, Derbyshire, Since January 2019, more than 17,000 apprenticeship awareness material and blog posts. every two months to explore their perception young people have been redirected by Nottinghamshire and the North East. This campaign targeted Drive My Career’s audience of 16-24 years of working in the automotive industry and Drive My Career to the career pages of its understand what they view as an ideal members. Social media platforms including old, with different keywords, depending on the sector promoted. Katie Saunders, JCT600 HR Director, career. This survey had 387 responses commented, “We recruit between 40 and 50 Facebook, Instagram, Twitter and YouTube The posts with the #DMCAutoSectors hashtag was seen by over and revealed positive attitudes towards Apprentices each year through our Group are the key channels of communication used 60,000 people during the campaign. apprenticeships. Programme. We employ immediately on to connect with the target audience. Drive When asked whether they preferred to go to permanent contracts rather than temporary My Career’s YouTube channel now has over 220,000 views. Career Progression university or start an apprenticeship, nearly or “Apprenticeship” contracts because we Managing Director half (47%) opted for the latter. Additionally, see our Apprentices as long-term future A new survey has been carried out to talent. Ensuring that they have great mentors CUSTOMER OUTREACH the vast majority of respondents (95%) explore the guidance that young people Marketing Reach out to unengaged customers and offer support answered ‘yes’ to the question ‘after an is also key. We are proud of our 95% would like to receive when they search for a Director apprenticeship, would you continue to work for the same company if they offered you the retention rate once they have qualified and we have multiple examples of apprentices new career. The findings of this new insight have recently been shared with Drive My Marketing Manager Working ENQUIRIES Help the customers with their enquiries about a job?’. growing with us to become Managers”. Career members and will be published soon. Brand Marketing Manager Week product or a service Marketing & PROBLEM SOLVING Marketing Digital Find ways to help solve your customers’ concerns After an 5% What career Assistant Communications Executive Apprenticeship, Yes route would 47% would you continue No you prefer to University to work for the take? Drive My Career has recently interviewed Becky Welsby, a Trainee Sales Executive at same company, if Apprenticeship Chapelhouse. Drive My Career asked Becky a few questions about her journey with they offered you Chapelhouse and what her role entails. the job? 53% 95% How did you check all the cars that come in to ensure that can and cannot do. I like to deal with them with get into the they are in good condition. We go through the honesty and transparency, and it’s nice to see automotive same process with every customer that comes people physically relaxed around you when they industry? into the showroom. You learn how to do this realise you just want to help them. When people during your training. We qualify our customers are comfortable talking to you, they are more I started working What do you think is the most important part of an Apprenticeship? to make sure we can find the right car for them. likely to engage with you. with Chapelhouse in January. Before Every day we contact a minimum of 22 people Do you have any recommendation for young 40% I was working to see how they are getting on with the car they people thinking about starting a career in the in a bar in Manchester, which sounds fun, but bought or if their finance agreement is coming automotive industry? 35% Earn while you learn I wanted to change the environment. I wanted to an end as well as to review their accounts to 30% make sure their car is still suitable. It’s mainly I would suggest to anyone to at least give it a Understanding the work environment to get out of it and do something a bit more try. Especially, if you are not sure about what 25% rewarding, build more of a career. One of my keeping in touch with our customers, being there for them and to help them find the car that suits you want to do. It’s a really good industry to 20% Meeting new people friends worked here and he recommended their lifestyle rather than pushing new cars onto start a career. Plus, at the end of the day, in Chapelhouse because they were taking on 15% Have support from the training provider my sector, you are in charge of what you earn. trainees. So, I thought, you know what? I’ll do them. The company gives us a basic salary and there 10% it! I had never worked in sales before. I was a bit What is the part you enjoy most? isn’t any pressure on you to meet targets. You Gaining early work experience nervous about it, but I thought I’d give it a go. 5% I have always loved customer service and been get different types of objectives in all industries, So, I came, I did some training and I loved it! It’s 0% customer-focused; I love customers’ feedback. performance reviews for example, but you get a been much better than I expected, and I haven’t It’s been rewarding when they have told me that I lot of support here. Overall, you feel good when looked back! have made the car buying process easy for them you meet your targets. It gives you a push with Can you describe your role? clear, achievable goals. For more information about Drive My Career, and they felt relaxed around me. I enjoy going I am in a Suzuki franchise. We look after the through the process with them and explain that The start of this career has helped me a lot also in please visit www.drivemycareer.co.uk or email info@drivemycareer.co.uk showroom to make sure it is always in order. We we are regulated and there are things that we my personal life, it has given me a path to follow. 14 15
RECORD RESPONSE RATE FOR NFDA LEXUS 9.1 (8.8) Manufacturer ratings KIA 9.1 (9.3) The all-important SUZUKI 8.4 (7.5) DEALER question ‘how would you TOYOTA 8.2 (9.0) SEAT 8.0 (8.0) rate your manufacturer MAZDA 8.0 (7.4) overall?’ had an average 7.9 (9.0) MERCEDES score of 5.6 points, which SUBARU 7.3 (6.6) ATTITUDE was 0.2 points lower than PEUGEOT 6.9 (6.4) six months ago and 0.1 HONDA 6.8 (5.7) points down from last VOLVO 6.6 (5.6) year. Lexus and Kia (9.1) NISSAN 6.6 (5.7) MINI 6.0 (6.6) were joint top performers, SURVEY LAND ROVER 5.8 (6.2) followed by Suzuki (8.4) SKODA 5.6 (6.4) and Toyota (8.2). The DACIA 5.6 (5.8) manufacturers with the MITSUBISHI 5.4 (6.1) lowest ratings were BMW VOLKSWAGEN 5.2 (5.0) (3.3), Alfa Romeo and RENAULT 5.1 (5.0) The NFDA Dealer Attitude Survey Summer 2019 saw a record Abarth (2.6). FORD 5.0 (5.5) JAGUAR 4.8 (4.9) response rate from dealers revealing a minor decline in dealers’ VAUXHALL 4.3 (4.3) satisfaction levels with the relationship with their manufacturers. HYUNDAI 3.9 (6.0) FIAT 3.7 (3.7 AUDI 3.5 (4.5) The NFDA Dealer Attitude Survey Summer 2019 was conducted in July and published in September 2019. It asked Average JEEP 3.4 (3.4) 5.6 franchised dealers 53 questions about their on-going relationship with their respective manufacturers. The questions 3.4 (3.3) CITROEN covered a range of business issues and the impact on dealers’ satisfaction levels with their manufacturers’ relationship. BMW 3.3 (4.4) NFDA surveyed 30 franchise networks and received 2,077 responses from dealers, equating to a record 50% response ALFA ROMEO 2.6 (3.5) rate. Responses are scored from 1 (extremely dissatisfied) to 10 (extremely satisfied). ABARTH 2.6 (4.4) 0 1 2 3 4 5 6 7 8 9 10 Movement in HONDA 57.7 (-26.5) Overall average score LEXUS 8.7 (8.5) score SUZUKI 41.5 (26.9) KIA 8.6 (8.8) VOLVO 38.7 (33.7) Lexus had the highest TOYOTA 8.1 (8.6) There was an VAUXHALL 29.1 (-4.5) PEUGEOT 28.0 (36.2) average score of all SUZUKI 8.1 (7.3) overall average MAZDA 27.9 (-9.0) questions of the survey MERCEDES 7.7 (8.4) loss of -5.7 SUBARU 22.9 (31.3) with an overall average of SUBARU 7.3 (6.9) points across all NISSAN Average 5.7 19.2 (-18.3) 7.3 (7.2) VOLKSWAGEN 14.5 (-18.9) 8.7 out of 10 points. After SEAT questions of the RENAULT 14.3 (-35.5) four consecutive surveys MAZDA 7.3 (6.8) survey. Honda LEXUS 11.7 (15.3) HONDA 6.9 (5.8) SEAT at the top, Kia was the (+57.7), Suzuki 1.0 (39.4) PEUGEOT 6.8 (6.3) CITROEN -1.9 (-8.4) second-best manufacturer VOLVO 6.4 (5.7) (+41.5) and SKODA -3.8 (33.7) with 8.6 points. Suzuki NISSAN 6.2 (5.8) Volvo (+38.7) DACIA -6.7 (0.6) KIA -8.2 (12.9) and Toyota followed with MINI 6.2 (6.7) had the largest FORD -14 (-1.8) 8.1 points. Fiat (3.4), Alfa VOLKSWAGEN 5.9 (5.7) improvements in MITSUBISHI -15.7 (-16.9) Romeo (3.0) and Abarth SKODA 5.8 (6.0) JEEP -16.0 (-2.8) score, Suzuki and MITSUBISHI 5.8 (6.1) LAND ROVER -26.8 (38.7) (2.9) were at the bottom Volvo continued MINI -27.7 (-3.1) LAND ROVER 5.5 (6.0) of the table. On average, the positive trend MERCEDES -32.1 (89.4) VAUXHALL 5.2 (4.8) JAGUAR -32.8 (45.5) there was a slight decline RENAULT 5.2 (5.1) started six months FIAT -34.3 (-6.8) of -0.1 points. FORD 5.2 (5.5) ago. BMW (-67.2), AUDI -38.0 (-29.0) TOYOTA -38.4 (17.6) JAGUAR 4.9 (5.5) Abarth (-78.4) and ALFA ROMEO -56.8 (43.6) AUDI 4.6 (5.3) Hyundai (-86.3) BMW -67.2 (-46.8) CITROEN 4.4 (4.5) experienced the ABARTH -78.4 (-6.5) HYUNDAI 4.3 (6.0) HYUNDAI -86.3 (21.6) DACIA 4.3 (4.3) biggest losses. BMW 4.2 (5.5) Average -100 -80 -60 -40 -20 0 20 40 60 80 5.8 JEEP 3.5 (3.8) FIAT 3.4 (4.0) “This year’s record response rate shows the value that Positively, average satisfaction levels with manufacturers’ alternative ALFA ROMEO 3.0 (4.1) franchised dealers place on the survey. In turn, it is fuel vehicle offering continued to increase. The average score grew ABARTH 2.9 (4.4) encouraging to see that manufacturers use the survey from 4.8 points last year to 5.0 six months ago and 5.2 now. 0 1 2 3 4 5 6 7 8 9 10 to understand the main issues affecting their dealer Current profit return and return on capital seemed to represent two networks”, said Sue Robinson, NFDA Director. areas of concern for dealers with average scores of 4.7 and 4.6 Despite a small decline, with an average score of 6.4, points respectively. For more information about the survey, please email nfda@rmif.co.uk or dealers remained fairly satisfied with their margins on NFDA urges manufacturers to continue to work closely with their visit https://www.nfda-uk.co.uk/reports/dealer-attitude-survey/ used car sales demonstrating that this was a key area dealer networks to address these issues and provide the basis for the of focus during the first half of the year. automotive industry to thrive despite the external challenges. 16 17
b) Are there any barriers Access to charging 53% to you buying an NFDA CONSUMER ATTITUDE electric car? (2,085 respondents) Battery range Cost of purchasing a vehicle 47% 51% SURVEY 2019 EV INSIGHT: No - there are no barriers to me buying 14% MOTORISTS FOUR Other barriers 6% Not sure 8% TIMES MORE LIKELY I already own an electric car 1% c) You indicated range is an issue. How d) You indicated charging is an issue, why is this? (1,061 respondents) TO GO ELECTRIC far would you want to be able to drive Among those indicating that access to charging is a barrier to purchasing an electric vehicle, before recharging? (1,061 respondents) almost 8 in 10 view a lack of charging points in public areas as a specific barrier. Lack of charging points in public places such as car parks in 78% 500+ miles 17% shopping centres or at stations Lack of off street parking at home 57% 200-500 miles 32% to install a charging point The findings of the latest Consumer Attitude Survey EV Insight revealed that if all drivers in the market were to make their next car purchase now, we could 200-250 miles 23% Lack of charging points at work 40% expect the proportion of hybrid and pure electric cars to quadruple. 150-200 miles 19% Other 5% Up to 150 miles 8% Not sure 2% The NFDA Consumer Attitude Survey was launched in 2017 to These concerns include access to charging points (which 53% investigate consumers’ perceptions of the different aftersales of consumers selected as an issue), battery range (51%), and the servicing providers in the UK. This year, the format of the survey cost of purchasing an electric vehicle (47%). Among those who LAS 2020 was redesigned to include more questions and participants indicate charging as a barrier, 78% agree that a lack of charging as well as provide a more detailed insight into consumers’ points in public places such as car parks in shopping centres is perceptions of franchised retailers, independent garages and non-franchised national chains. This was the seventh issue of the a reason this is a barrier (figures b and d). Although the percentage of consumers that do not see any VEGAS survey and was executed by Public Knowledge, an independent barriers to the purchase of electric cars has increased to 14% research agency that polled 2,000 consumers across the UK in a from 11%, it remains low. 15-minute online questionnaire. Sue Robinson, NFDA Director, said, “The survey demonstrates Participants were asked which car they would buy next (figure a): that consumer attitudes are shifting. Drivers are now four 60% responded a petrol vehicle and only 16% said they would times more likely to buy an electric vehicle. This is beneficial for purchase a diesel vehicle. Hybrid vehicles scored a significantly franchised dealers who are best placed to service the growing high proportion with 16% of consumers expecting to buy a electric demand in the car market. Combined with the 75% of hybrid, which is four times the current ownership at 4%. The 4% new vehicles purchased at franchised dealerships, the dealers of consumers intending to buy a pure electric car is also four are likely to take market share in the near future, ensuring times current ownership at 1%. Almost one in three consumers a consistent and reliable service to as many consumers as Join NFDA’s dealer trip to the NADA 2020 in Las Vegas! responded ‘don’t know’ indicating a degree of uncertainty. possible.” Whilst the percentage of participants wanting to buy an electric NFDA will be publishing further insights from the Consumer vehicle is significantly higher than expected, the consumers Attitude Survey over the next months. For more information surveyed still mentioned a number of concerns in relation to about the survey, please visit www. https://www.nfda-uk.co.uk/ Once again, NFDA is organising its highly successful dealer trip to NADA 2020 in Las Vegas. Every year, purchasing an electric vehicle. reports/consumer-attitude-survey NADA provides franchised retailers with an ideal opportunity to discuss the most topical industry issues with colleagues from around the world and learn about new trends and opportunities. 64% 60% Departure date: Thursday 13 February. Return date: Monday 17 February 2020. Intention for next car a) Will the next car Intention for next car (when stripping out ‘Don’t knows’) The package will include: • T wo evening meals at a top-quality restaurant 42% you buy be? Current car • NADA Convention registration • Invitations to NADA private receptions 31% 30% • V isit to a large dealership – guided tour around all • O ptional - Economy return flights from London 16% 16% aspects of the business Heathrow with British Airways or Virgin Atlantic 11% 11% (upgrades subject to availability) 4% 3% 4% 3% 4% • F our nights accommodation at the five-star Wynn Hotel 1% 1% 0.1% Contact us on 020 73073404 or • A irport transfers and all transport provided in Las Vegas email nfda@rmif.co.uk to book your place. Petrol Diesel Hybrid Pure Electric Plug in Hybrid Don’t know 18 19
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