VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...

 
CONTINUE READING
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
“ 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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
VoiceThe In this issue .and more! - The Official NFDA magazine for the Industry - The National Franchised Dealers ...
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
You can also read