VOICETHE - THE NATIONAL FRANCHISED ...

Page created by Willard Phillips
 
CONTINUE READING
VOICETHE - THE NATIONAL FRANCHISED ...
Spring 2021

Voice
                    The

The Official NFDA magazine for the Industry

                          .
           In this issue..
EVA celebrates first dealer accreditations of 2021

Ben Fast-Track Mental Health Support

Latest NFDA Dealer Attitude Survey

MHA Guidance available to dealers

                        ...and more!

                      The Voice Interviews
                      James Brearley,
                      CEO of Inchcape UK
VOICETHE - THE NATIONAL FRANCHISED ...
Welcome to the Spring                                                                                        David
                                                                                                                                                                    Newman,
                                                       Edition of the Voice                                                                                         NFDA
                                                                                                                                                                    Chairman
                                                us. In February, we held a round of           manufacturers grew slightly from six          “Let me begin by wishing you and
                                                well-attended and engaging dealer             months ago. NFDA uses these findings          your loved ones all best wishes for the
                                                forums allowing us to update you on           to address the issues highlighted and         remainder of 2021 – it has certainly been
                                                the work we are doing on your behalf,         liaise with individual manufacturers on       a tough and challenging year so far!
                                                the services available to you and how         behalf of dealers. Please see further         Surely now, better things are ahead of
                                                changes in regulations can affect you.        insights in the magazine.                     us after the amazing vaccine roll out and
                                                The next round of NFDA Regional                                                             this awful virus in retreat, enough for us
                                                Dealer Forums will take place later           Despite the decline in the new car            to move towards normal life again and
                                                this month, please email lena.patel@          market, sales of electric vehicles            fully resuming what franchised dealers do
                                                rmif.co.uk to register to attend.             continue to grow. NFDA’s Electric             best – selling cars, vans, finance, parts
                                                                                              Vehicle Approved (EVA) has                    and service hours and looking after our
                                                Our working groups covering key               recently seen the first dealers of 2021       customers.
                                                areas such as EVs, Finance, HR,               pass their audit and receive their
                                                IT, aftersales, used cars as well as          accreditation. If you would like to learn     NFDA have worked tirelessly to bring
                                                policies and regulations continue to          more about EVA, apply to receive              many franchised dealers together.
                                                meet on a regular basis to discuss the        EVA’s badge of approval or understand         Through us, senior industry leaders from
                                                most topical issues in the respective         how to promote yours, please email            the top 20 groups, regional and individual
                                                areas and set the strategy for the            eva@rmif.co.uk.                               dealers have been able to communicate
    Dear Colleague,                                                                                                                         and cooperate to overcome the massive
                                                coming months. If you would like more
                                                                                              Following the recent slowdown in              challenges that have faced and continue
    Following the huge challenges               information, please contact us.
                                                                                              recruitment activities, a number of           to face our sector, for over twelve months
    faced by our sector over the past                                                         dealer groups are now hiring again and
                                                As dealers’ online presence and                                                             now. A huge and heartfelt thank you for
    months, we can finally look forward                                                       with more people coming off furlough,
                                                digital strategies become increasingly                                                      your contributions and expertise and
    to welcoming customers back into                                                          Drive My Career has run a number
                                                important, NFDA has recently launched                                                       freely given time to help us to assist the
    showrooms. Dealers have proved their                                                      of successful campaigns. in particular,
                                                ‘Engage’ a new programme aimed                                                              franchised sector with the implications of
    resilience and although online sales                                                      February’s ‘Apprentice Takeover’ and
                                                at supporting dealers’ communication                                                        the pandemic.
    have provided a new strategic lifeline                                                    March’s International Women’s Day
                                                activities. Our members can benefit
    for businesses, consumers still want to                                                   campaigns allowed us to work with our         We have been in constant and often
                                                from a free-of-charge performance
    visit dealerships.                                                                        dealer members to showcase success            urgent dialogue with many Government
                                                report of their website as well as
    Government guidelines have been             support with social media and press           stories from across the industry              departments on behalf of our members
    very fluid; we actively liaise on your      releases. Please find further details in      and highlight the variety of career           – lobbying, consulting, advising and
    behalf with relevant departments and        The Voice and email nfdaengage@rmif.          opportunities available in automotive.        getting clarification on relevant guidelines,
    continue to monitor the changes in          co.uk for more information.                                                                 providing dealers with timely and
                                                                                              NFDA is the voice of automotive               accurate guidance concerning all issues
    regulations daily to provide you with                                                     retailers: if you require any assistance
                                                Monitoring the health of the business                                                       affecting our industry.
    guidance and clarifications covering                                                      or would like to discuss any of the
                                                relationship between dealers and
    all the areas that may affect you. If                                                     issues featured in The Voice, please          As we get ready to reopen our
                                                manufacturers is crucial and, positively,
    you have any questions or you think                                                       do not hesitate to contact our member         showrooms and welcome customers
                                                the latest edition of our NFDA Dealer
    you may have missed any of the                                                            helpline on 01788 538 303 or email            back, we will continue to work closely
    documents recently shared please            Attitude Survey received a very high
                                                response rate of nearly 60%. Average          nfda@rmif.co.uk                               with dealers and I thank all of you
    contact us.                                                                                                                             on behalf of us at the NFDA for your
                                                dealer satisfaction levels with the
    Our members’ feedback is vital to           business relationship with respective                                                       continued and valued support”.

    NFDA KICKS OFF 2021 WITH VIRTUAL DEALER FORUMS
    In February, NFDA hosted five well-attended and engaging regional dealer forums that provided dealers with an ideal opportunity
    to get an update from their trade association on the most topical issues facing the automotive industry and hear about the latest
    benefits they can access via their membership. In turn, the meetings helped NFDA get extremely useful feedback from dealers.

    New and Used Market                          new FCA commission rules that came           as futureproofing of grid supply for          those working in automotive.
    The forums started with a discussion on      into force on 28 January 2021 and            motorway rapid charging, extension on         NFDA benefits: Engage,
    the new and used car market, thanks to       the Senior Managers & Certification          home workplace and on-street charge-          Drive My Career and EVA
    the data and analysis by guest speakers      Regime (SM&CR), which, following the         point grants, funding local EV recharging
                                                 introduction on 9 December 2019, with                                                      The NFDA team updated dealers
    from Autotrader. Despite the lockdown,                                                    project, zero-emission freight trials as
                                                 a one-year implementation period, was                                                      on the additional services currently
    Auto Trader highlighted that the market                                                   well as the extension to the plug-in grant
                                                 extended to 31 March 2021.                                                                 available to members including NFDA
    looked ‘healthy’ and the latest lockdown                                                  were also discussed.
                                                                                                                                            Engage, a new programme which
    was not affecting business as much as        EVs                                          Mental Health & Well-being                    supports dealers’ communications,
    the previous ones.
                                                 Paddy O’Connell, NFDA Head                   Matt Wigginton, Fundraising Director          Drive My Career, the ongoing
    Policy and Procedures                        of Operations, covered the PM’s              of Ben, the automotive industry charity,      campaign that reaches out to young
    Louise Wallis, NFDA Head of Business         announcement on the 2030 end date for        gave a presentation on mental health          people to encourage them into the
    Management, updated dealers on               the sale of internal combustion engine       issues in the workplace. Matt explained       automotive industry, and the Electric
    COVID-19 related restrictions and their      cars and vans as well as the five-year       how the pandemic has put a significant        Vehicle Approved (EVA) accreditation
    implications for dealers including click     extension for hybrids which have a           strain on people’s mental health and          scheme (for more information email:
    & collect services, test drives and the      “significant” zero emission range.           reminded dealers of the charity’s online      nfdaengage@rmif.co.uk,
    furlough scheme.                             The Government’s National                    resources, its free, confidential helpline,   info@drivemycareer.co.uk or
    Dealers were also reminded about the         Infrastructure Strategy and issues such      and Ben’s tailored client support for         eva@rmif.co.uk).

    NEXT REGIONAL DEALER FORUMS:
                                                                                       For more information and
    NORTH WEST                  SOUTH                     MIDLANDS
                                                                                       to attend your next NFDA
    22 April (11am – 12pm)      27 April (11am – 12pm)    28 April (11am – 12pm)
                                                                                       Regional Forum, please email
    NORTH EAST                  SOUTH WEST                                             lena.patel@rmif.co.uk.
    22 April (2pm – 3pm)        27 April (2pm – 3pm)

2
VOICETHE - THE NATIONAL FRANCHISED ...
Fast-track mental
                                                                      health support for
                                                                      automotive people
                                                               Ben, the automotive industry charity, is
                                                               providing immediate access to digital
                                                               mental health and wellbeing support for
                                                               automotive people who need it. Ben’s digital
                                                               platform, SilverCloud, supports people to
                                                               better manage their mental health and
                                                               wellbeing and it’s free, confidential and
                                                               available all day, every day.

Automotive people can now access SilverCloud                   Here is some recent feedback about SilverCloud from
themselves directly, without first needing to call Ben’s       those who have benefitted from the support available:
Helpline. Over 400 automotive people have signed up
                                                               “I feel like I’m back in control. I have a better
to access support through SilverCloud since 18 January,
                                                               understanding of my thoughts and emotions. I feel like I’m
which shows just how important mental health and
                                                               able to make better decisions. If I ever have a challenging
wellbeing support is right now.
                                                               situation in the future, I will make use of the great tools
A number of different programmes are available on              on SilverCloud again.”
SilverCloud, including on topics such as stress, anxiety and
                                                               “All the techniques and ideas I’ve learned have been really
depression, as well as for issues including money worries,
                                                               useful. The thought record sheet, SilverCloud, meditation
sleep and resilience. Each programme features a range of
                                                               practices have helped me manage my anxiety and change
interactive tools such as videos, activities, quizzes, audio
                                                               the way I react. They have been helping me to think more
guides, as well as a personal online support journal.
                                                               rationally and keep calm.”
The SilverCloud programmes use an evidence based,
                                                               “The SilverCloud programme has encouraged me to make
Cognitive Behavioural Therapy (CBT) approach, focusing
                                                               changes. Now if I wake in the middle of the night, I don’t
on the relationship between our thoughts, feelings and
                                                               let thoughts run away with me. I use the new techniques I
behaviours; supporting individuals to develop positive
                                                               have learnt to help me stop my thoughts racing.”
coping strategies.

     Sign up to SilverCloud
         ben.org.uk/SilverCloud

Signing up for support
SilverCloud is completely free for anyone who works, or has worked, in the
automotive industry. To sign up, visit: ben.silvercloudhealth.com/signup
To find out more about how Ben can support the mental health and wellbeing
of your employees, contact Rachel Clift, Health & Wellbeing Director at Ben:
Rachel.Clift@ben.org.uk.

                                                                                                                             3
VOICETHE - THE NATIONAL FRANCHISED ...
Powered by

    DEALERS AND DRIVE MY CAREER
    CELEBRATE INTERNATIONAL
    WOMEN’S DAY TO HIGHLIGHT
    OPPORTUNITIES IN AUTOMOTIVE
    On the occasion of the International Women’s Day that took place on 8 March 2021, Drive My Career shared
    success stories and testimonials of women working in the automotive industry across different business areas.
    International Women’s Day (IWD)
    celebrates the social, economic, cultural
    and political achievements of women.
    The day also marks a call to action for
    accelerating gender parity. The theme of
    this year’s IWD was “choose to challenge”
    as the International Women’s Day website
    reads “we can all choose to challenge and
    call out gender bias and inequality”.

    During the day, Drive My Career published
    and shared videos, images and articles
    on its website and social media channels
    to recognise and celebrate the success of
    women working in automotive. Franchised
    dealer groups who joined the campaign
    included Arnold Clark, Caffyns, JCT600,
    Lookers, Marshall Motor Group, TrustFord,
    and Sytner.

    Showcasing the variety of roles available     In addition to the testimonials, a video from    and the female apprentice events”.
    in automotive retail, the case studies        Arnold Clark mentioned some of the perks
    ranged from apprentice technicians and        of working with the dealer group including       Izzy Windsor, First Year Apprentice
    parts advisors to aftersales professionals,   flexible working arrangements, female            Technician at Lookers Vauxhall Chester,
    as well as colleagues working in HR and       career coaches, enhanced maternity benefit,      said she would “definitely” encourage other
    Health & Safety.                              Business Women Roadshows, Diversity and          women to join the automotive sector, “there
                                                  Inclusion Training and concluded “We always      are lots of opportunities and you gain so
                                                  want the best person for the job”.               many different skills through this industry; we
                                                                                                   work as a team and we can all support each
                                                  Aimen Khalid, Parts Advisor at JCT600            other, it is absolutely brilliant”.
                                                  Bentley Leeds, who has recently qualified
                                                  from her apprenticeship, described her           Michelle Hazeldean, TrustFord Aftersales
                                                  journey with the company and sent a              Training and Induction Manager: “Working
                                                   message to women considering working            in the automotive industry is fast-paced,
                                                     in automotive: “Go for it, even if you have   demanding and fun, no two days are ever the
                                                      got no experience around vehicles or cars    same. No matter what department you are in,
                                                       because you get taught everything and       there is a large amount of job satisfaction in
                                                       you learn a lot from our training courses   the automotive industry.

4
VOICETHE - THE NATIONAL FRANCHISED ...
“What I would say to women working in the               of emerging technology and we have a huge
                                                  automotive industry is ‘go for it’! If you want         focus on people and community.
                                                  to be part of a great team that make sure
                                                  customers are happy and get job satisfaction            “The automotive industry is for anyone,
                                                  from that, then, should it really matter what           regardless of your gender. I would definitely
                                                                                                          recommend working in this industry”.
                                                  gender you are?”.
                                                                                                          One of the key objectives of Drive My Career
                                                  Tracey Jeffries, Health & Safety Officer at
                                                                                                          is to highlight the variety of rewarding and
                                                  Caffyns PLC, encouraged young people to
                                                                                                          exciting career opportunities in the retail motor
                                                  consider a career in automotive: “The industry
                                                                                                          sector available to everybody, and we were
                                                  is so diverse that there are opportunities for
                                                                                                          delighted to celebrate the achievements of
                                                  all. There are some fantastic opportunities
                                                                                                          women working in the automotive industry.
                                                  to build good life experiences, a good career,
                                                  and earn a good wage. Young people are our              Drive My Career is the employment initiative
                                                  future with a thirst for life they bring a valuable     developed by NFDA to help dealers attract and
                                                  resource to the industry”.                              retain candidates by raising awareness and
                                                                                                          improving the perception of the automotive
                                                  Penny Wallace, Recruitment Specialist at
                                                                                                          industry.
                                                  Sytner, said, “We work in an industry that is
                                                  so fast-paced and that is where I thrive. There         For more information, visit Drive My Career’s
                                                  is variety in my role and I finish work each            website at www.drivemycareer.co.uk and
                                                  day feeling a sense of accomplishment. The              search ‘Drive My Career’ for its social media
                                                  industry itself is an exciting one. We are not          channels on Twitter, LinkedIn, Facebook,
                                                  just about car sales, we are at the forefront           Instagram and YouTube

DRIVE MY CAREER REACHES OVER
600,000 PEOPLE DURING
APPRENTICESHIP WEEK                                                                                        Harry Pudney,
                                                                                                           Apprentice
                                                                                                           Technician at
During the National Apprenticeship                    Mercedes-Benz commercials, SEAT and                  Marshall SEAT
Week 2021 which took place                            SKODA.                                               Braintree
between 8 and 14 February, Drive
My Career members joined the third                    Also a number of videos featuring current
‘Apprentice Takeover’ campaign                        and former apprentices working for Sytner
                                                      contributed to significantly raising the profile
to raise awareness of the multiple
                                                      of the campaign and apprenticeships in
opportunities available in the retail
                                                      general.
automotive industry                                                                                        Through targeted campaigns, Drive My
                                                      Social media posts with the hashtag                  Career is currently supporting its members
As part of the #DMCApprenticeTakeover                                                                      who are actively recruiting, while it continues
                                                      #DMCApprenticeTakeover were shared
campaign, Drive My Career members                                                                          to also promote via the website success
                                                      across a range of platforms including
promoted across their social media                                                                         stories, career guidance and additional tips
channels inspiring apprentices’                       Twitter, Facebook, Instagram and LinkedIn.
                                                                 The hashtag achieved over                 for jobseekers.
case studies through stories,
images and videos.                                               180 mentions and more than                Sue Robinson, NFDA Chief Executive
                                                                 500 interactions, reaching over           commented, “Following such a difficult year,
Franchised dealers supported                                     650,000 people.                           it was extremely positive to see franchised
the initiative, and, in particular,                                                                        dealers endorsing their workforce and
Marshall Motor Group,                                               In addition to this, Drive My
                                                                                                           investing into the future generation.
who took part for the third                                         Career representatives shared
                                     Bethany Barton, HR &
consecutive year, shared 31                                         some of their own content              “Reading the inspiring stories of apprentices
                                     Recruitment Apprentice
pictures, videos and stories         at Sytner                      throughout the week, showcasing        and seeing their excitement to be part of our
from apprentices, their mentors,                                    how employees have benefitted          industry has been encouraging. Drive My
Aftersales Managers as well                                         from an apprenticeship scheme          Career will continue to raise awareness of
as the group’s CEO, Daksh                                           with the experience and life skills    the rewarding career opportunities available
Gupta. The divisions that participated in the           that have  come   from this. During the week,      in the automotive sector.
#DMCApprenticeTakeover were Marshall                    Drive My Career provided also CV and job
                                                        interview tips for anyone in the audience to       “A huge thank you to our members for their
Audi, Volkswagen, Jaguar Land Rover,
                                                                                                           continued, outstanding support”.
Volvo, BMW, MINI, Mercedes-Benz cars,                   help on their career journeys.

    Drive My Career is the employment platform launched by the National Franchised Dealers Association
      (NFDA) in February 2018 to make the motor retail sector more attractive to young jobseekers and
                            connect potential candidates with their local retailers.

                                                                                                                                                              5
VOICETHE - THE NATIONAL FRANCHISED ...
Dealer Attitude survey
                                                                                                                                   Winter 2020/2021
                                                                NFDA Dealer Attitude Survey reveals improving satisfaction levels
                                                                       The results of the latest NFDA Dealer Attitude Survey (DAS),
                                                   published on 15 March 2021, revealed increasing satisfaction levels among dealers.

                              NFDA conducts the survey twice a year, the “DAS” has taken place continuously since 1989. With a total of 2,585 responses from
                                         32 participating dealer networks, the latest edition of the survey received an extremely high response rate of 59.5%.
            Sue Robinson, NFDA Chief Executive, commented: “The NFDA Dealer Attitude Survey is vitally important to gauge the health of the business
     relationship between dealers and manufacturers and highlight any potential issues; with the challenges facing our sector over the past months, it is
                                                                        extremely encouraging that nearly 60% of UK dealers completed the survey”.
    This edition of the survey was conducted in January 2021 and asked franchised dealers a series of questions covering key business issues affecting
                     the relationship with their respective manufacturers. Responses are scored from 1 (extremely dissatisfied) to 10 (extremely satisfied).

                LEXUS                                                                                                                                                                  9.4    (9.6)
                    KIA                                                                                                                                                           9.3        (8.9)
              TOYOTA                                                                                                                                                        8.8 (9.5)
          MERCEDES                                                                                                                                                        8.7 (6.9)
                   MINI                                                                                                                                        8.2     (7.7)
                  AUDI                                                                                                                                         8.2      (6.6)
                VOLVO                                                                                                                                     7.8 (7.6)
               SUZUKI                                                                                                                                 7.6 (6.9)                                       Manufacturer support during
               SKODA                                                                                                                           7.2    (6.3)
               HONDA                                                                                                                         7.2 (7.0)
                                                                                                                                                                                                      COVID-19
        VOLKSWAGEN                                                                                                                         7.1 (4.9)
                  SEAT                                                                                                                     7.1 (6.9)                                                  Average levels of dealer satisfaction
               MAZDA                                                                                                                   7.0 (7.5)                                                      with the support received through
               NISSAN                                                                                                                 6.9 (7.5)
                 FORD                                                                                                              6.7 (5.9)                                                          the pandemic by respective
            RENAULT                                                                                              5.9       (6.1)                                                                      manufacturers remained relatively
            PEUGEOT                                                                                            5.9         (6.1)
          MITSUBISHI                                                                                          5.9          (6.6)
                                                                                                                                                                                                      high at 6.4 points out of 10. Lexus
                    DS                                                                                       5.8                                                                                      (9.4), Kia (9.3) and Toyota (8.8)
             CITROEN                                                                                         5.7 (6.2)
                                                                                                                                                                                                      received the highest ratings in this
         LAND ROVER                                                                                        5.6 (5.9)
             JAGUAR                                                                                      5.5 (4.9)                                                                                    section. Thanks to an increase of
                    MG                                                                     4.8   (6.9)                                                                                                2.2 points from the summer edition
                 BMW                                                                       4.8 (6.8)
                DACIA                                                                4.6      (5.8)                                                                                                   of the survey, Volkswagen saw the
             SUBARU                                                            4.3 (5.9)                                                                                                              largest improvement.
           VAUXHALL                                                          4.2 (4.0)
                  JEEP                                      3.3      (4.1)                                                 Average 6.4
            HYUNDAI                                      3.0 (2.7)
         ALFA ROMEO                              2.6    (5.0)
                   FIAT                     2.2 (3.9)
              ABARTH                       2.1 (5.0)

                          0         1        2              3                    4                   5                     6                   7                 8                 9                   10

                                                                LEXUS                                                                                                                                                                                   9.5     (9.5)
                                                                    KIA                                                                                                                                                                             9.2 (9.4)
                                                              TOYOTA                                                                                                                                                                              9.1 (9.0)
    How would you rate your                               MERCEDES                                                                                                                                                                                9.1 (8.0)
    manufacturer overall on a                                      MINI                                                                                                                                                             8.1   (7.9)
                                                               SUZUKI                                                                                                                                                     7.5   (7.1)
    scale of 1 to 10?                                             AUDI                                                                                                                                                7.3 (7.1)
                                                               MAZDA                                                                                                                                               7.0 (6.9)
    Lexus (9.5), Kia (9.2), Toyota                             HONDA                                                                                                                                               7.0 (7.8)

    and Mercedes (both at 9.1)                               CITROEN                                                                                                                                              6.9 (6.2)
                                                                VOLVO                                                                                                                                          6.8 (6.0)
    topped the all-important                                   SKODA                                                                                                                                           6.8 (5.7)
    question ‘how would you rate                        VOLKSWAGEN                                                                                                                                            6.7 (5.0)
                                                                  SEAT                                                                                                                                        6.7 (6.9)
    your manufacturer overall                            LAND ROVER                                                                                                                                          6.6 (5.5)
    on a scale of 1 to 10’. Jeep,                           PEUGEOT                                                                                                                                       6.4 (7.2)

    Hyundai, Fiat (all at 2.8) and                             NISSAN                                                                                                                              6.3 (6.0)
                                                                    MG                                                                                                                          6.0 (7.5)
    Alfa Romeo (1.8) had the lowest                              BMW                                                                                                                          5.9 (6.3)
    scores. The average score for                                FORD                                                                                                                      5.7 (6.2)
                                                                DACIA                                                                                                                      5.7 (4.4)
    this question grew by 0.3 points                        RENAULT                                                                                                                     5.3 (4.6)
    from six months ago to 6.3.                              JAGUAR                                                                                                          5.1       (3.7)
                                                           VAUXHALL                                                                                         4.2      (3.8)
                                                             SUBARU                                                                                         4.2      (4.6)
                                                          MITSUBISHI                                                                                         4.2     (5.7)
                                                                    DS                                                                                       4.2
                                                              ABARTH                                                                     3.1      (4.1)                                              Average 6.3
                                                                  JEEP                                                             2.8    (3.3)
                                                            HYUNDAI                                                                2.8    (2.5)
                                                                   FIAT                                                            2.8    (3.6)
                                                         ALFA ROMEO                                        1.8     (4.2)

                                                                             0                   1                     2                   3                 4                 5                      6               7              8              9                   10
6
VOICETHE - THE NATIONAL FRANCHISED ...
LEXUS                                                                                                                                                               9.1    (9.0)
            KIA                                                                                                                                                    8.7 (8.9)
  MERCEDES                                                                                                                                                      8.5 (7.5)
                                                                                                                                                                                                             Overall average score
      TOYOTA                                                                                                                                                  8.4 (8.4)
           MINI                                                                                                                                    8.0       (7.4)                                           At 9.1 points, Lexus had the highest
       SUZUKI                                                                                                                7.0     (6.7)                                                                   average score across all questions
       NISSAN                                                                                                           6.8    (6.7)
       MAZDA                                                                                                            6.8    (6.8)                                                                         for the fourth consecutive edition of
          AUDI                                                                                                          6.8    (5.6)                                                                         the survey. Kia followed in second
       HONDA                                                                                                            6.7 (7.2)
        VOLVO                                                                                                        6.6 (5.8)
                                                                                                                                                                                                             place (8.7) and Mercedes (8.5)
VOLKSWAGEN                                                                                                           6.6 (5.4)                                                                               closed the top three thanks to a
          SEAT                                                                                                     6.5 (6.4)
                                                                                                                  6.4 (6.9)
                                                                                                                                                                                                             1.0-point jump from six months
    PEUGEOT
       SKODA                                                                                                    6.3 (5.4)                                                                                    ago. Jeep (3.0), Fiat (2.9) and Alfa
 LAND ROVER                                                                                                    6.2 (5.5)                                                                                     Romeo (2.6) sat at the bottom of
         BMW                                                                                              6.1 (6.5)
     CITROEN                                                                                             6.0 (5.7)                                                                                           the table. The average score for this
         FORD                                                                                        5.7 (5.4)                                                                                               question (6.0) was up by 0.1 points
            MG                                                                                    5.6 (6.6)
     JAGUAR                                                                                       5.6 (4.5)
                                                                                                                                                                                                             from six months ago.
            DS                                                                                  5.5
    RENAULT                                                                                    5.4 (5.0)                                                                                                     “It is positive that despite the
     SUBARU                                                                            5.1 (5.5)                                                                                                             significant disruption faced
  MITSUBISHI                                                                         5.0 (6.2)
        DACIA                                                                      5.0 (4.7)
                                                                                                                                                                                                             by our industry over the past
   VAUXHALL                                                                       4.9 (4.7)                                                                                                                  twelve months, dealers are, on
    HYUNDAI                                                                   4.6 (3.7)                Average 6.0
      ABARTH
                                                                                                                                                                                                             average, fairly satisfied with the
                                           3.1 (4.4)
          JEEP                           3.0 (3.6)                                                                                                                                                           relationship with their respective
           FIAT                         2.9 (3.8)                                                                                                                                                            manufacturers”, said Sue Robinson.
 ALFA ROMEO                         2.6 (4.5)

                  0   1         2                  3                  4                    5                   6                   7                     8                    9                 10

                                                                     TOYOTA                                                                                                                                                                                      9.0       (8.3)
                                                                       LEXUS                                                                                                                                                                                   8.8 (9.0)
                                                                           KIA                                                                                                                                                                          8.4   (8.6)
                                                                          MINI                                                                                                                                                              7.8     (6.5)

 Profit ret urn, return on capital                               MERCEDES
                                                                                                                                                                                                                          7.0
                                                                                                                                                                                                                                      7.5
                                                                                                                                                                                                                                    (5.3)
                                                                                                                                                                                                                                            (5.4)
                                                                       VOLVO
 and new car targeting                                                NISSAN                                                                                                                                              7.0 (5.9)
                                                                      HONDA                                                                                                                                               7.0 (5.9)
 Despite relatively low scores                                           AUDI                                                                                                                                         6.7 (3.7)
                                                                        BMW                                                                                                                                           6.6 (4.5)
 for important aspects such as                                 VOLKSWAGEN                                                                                                                                           6.5 (4.3)
 profit return, required levels of                                    SUZUKI                                                                                                                            6.0       (6.1)
 investment and return on capital,                                 PEUGEOT                                                                                                                             5.9 (6.4)
                                                                LAND ROVER                                                                                                                             5.9 (4.7)
 dealers showed higher levels of                                         SEAT                                                                                                                    5.6    (6.7)
 satisfaction than six months ago.                                         MG                                                                                                                    5.6    (6.6)
                                                                      MAZDA                                                                                                                      5.5 (5.8)
 However, a number of dealer                                          SKODA                                                                                                                    5.4 (4.2)
 networks were dissatisfied with                                 MITSUBISHI                                                                                                            5.1      (4.6)
                                                                   RENAULT
 their manufacturers’ volume target                                    DACIA
                                                                                                                                                                                    4.9 (4.3)
                                                                                                                                                                                    4.9 (4.3)
 aspirations and with the overall                                       FORD                                                                                                 4.5   (4.0)
 new car targeting process.                                       VAUXHALL                                                                                       4.0       (3.4)
                                                                    CITROEN                                                                                      4.0 (4.5)
                                                                   HYUNDAI                                                                               3.6    (2.7)
 How satisfied are you with                                         JAGUAR                                                                         3.5 (2.1)
 the current profit return from                                     SUBARU                                                                      3.3 (3.5)
                                                                                                                                                                                                       Average 6.0
 representing your business?                                         ABARTH                                                                  3.1 (4.2)
                                                                         JEEP                                                              3.0 (2.9)
                                                                          FIAT                                                           2.9 (3.4)
                                                                           DS                                                      2.6
                                                                ALFA ROMEO                                     1.6   (3.6)

                                                                                 0                         1               2                   3                       4                   5                  6                 7                    8                 9           10

        LEXUS                                                                                                                                                          8.9     (8.5)
      TOYOTA                                                                                                                                                     8.7 (8.1)
            KIA                                                                                                                                                 8.6 (8.7)
  MERCEDES                                                                                                                                   7.8 (5.9)                                                        “Positively, the majority of dealers
           MINI                                                                                                                            7.7 (5.9)                                                          are satisfied with their ability
       HONDA                                                                                                                       7.2   (6.5)
       SUZUKI                                                                                                         6.7 (6.5)                                                                               to do business with respective
       NISSAN                                                                                                      6.5 (5.5)                                                                                  manufacturers on a day-to-day
        VOLVO                                                                                                   6.3 (4.3)
          AUDI                                                                                                 6.2 (3.6)
                                                                                                                                                                                                              basis. As we come out of the
            MG                                                                                             5.9 (6.7)                                                                                          pandemic and the economic
VOLKSWAGEN                                                                                           5.7     (3.8)
                                                                                                                                                                                                              environment improves, it is crucial
          SEAT                                                                                       5.7 (6.4)
    PEUGEOT                                                                                          5.7 (6.2)                                                                                                that manufacturers have realistic
       SKODA                                                                                   5.4    (4.3)                                                                                                   expectations of their networks
       MAZDA                                                                                   5.4    (5.9)
        DACIA                                                                              5.3 (4.6)
                                                                                                                                                                                                              and continue to work closely
         BMW                                                                               5.3 (4.6)                                   How satisfied are you                                                  with dealers”, Sue Robinson
 LAND ROVER                                                                          5.0    (3.1)
    RENAULT                                                                     4.9 (4.2)
                                                                                                                                       with your new car                                                      concluded.
  MITSUBISHI                                                                    4.9 (4.6)                                              targeting process?
   VAUXHALL                                                                 4.5 (3.5)                                                                                                                         For more information about the
     CITROEN                                                              4.4 (4.4)                                                                                                                           NFDA Dealer Attitude Survey,
         FORD                                                          4.3 (3.2)
      ABARTH                                                          4.2 (4.2)
                                                                                                                                                                                                              please visit www.nfda-uk.co.uk/
     SUBARU                                                       3.9 (3.8)                                                                                                                                   reports/dealer-attitude-survey or
    HYUNDAI
           FIAT
                                                               3.7 (3.1)
                                                                                                Average 5.6
                                                                                                                                                                                                              email nfda@rmif.co.uk
                                                       3.4      (3.7)
     JAGUAR                                  3.0       (2.3)
            DS                             2.9
          JEEP                    2.4   (2.7)
 ALFA ROMEO               1.9   (3.5)

                  0   1         2                  3                  4                    5                    6                   7                    8                    9                  10

                                                                                                                                                                                                                                                                                        7
VOICETHE - THE NATIONAL FRANCHISED ...
ELECTRIC VEHICLE APPROVED
    SCHEME CELEBRATES FIRST
    ACCREDITED DEALERS OF 2021
    NFDA’s Electric Vehicle Approved
     (EVA) accreditation scheme has
      celebrated the first accredited
             retailers of 2021.

     Electric Vehicle Approved
    Following the reopening of the        successful, with over one-
    scheme in October 2020, the           hundred dealers obtaining their
    first retailers who applied to be     accredited status. As a result,
    part of the second year of EVA,       the Government has renewed its
    passed their audit and received       co-sponsorship of the scheme.
    their accreditation in February.      EVA encourages dealerships
    The first dealerships of 2021 to      to further develop their ability
    receive their EVA accreditation       in selling and servicing electric
    were: Vertu Skipton Volkswagen,       vehicles. It recognises dealers’
    Bristol Street Motors Nottingham      expertise in the electric vehicle
    Renault and Dacia, Waylands           sector and promotes industry
    Oxford Volvo, and Vertu               standards for the benefit of the
    Harrogate Volkswagen.                 consumer.
    Sue Robinson, Chief Executive         Energy Saving Trust
    of the National Franchised            independently audits individual
    Dealers Association (NFDA),           dealerships to verify that
    commented: “It is extremely           they meet a set of standards
    positive to see the NFDA’s            covering EV sales and aftersales.
    Electric Vehicle Approved (EVA)       These include the customer
    scheme continue to develop            qualification process, staff
    paying testament to the efforts       knowledge and training, EV
    and investments automotive            demonstration and handover
    retailers are making to meet the      processes as well as availability            Allan McGovern, Vertu Volkswagen Skipton on-site
    fast-growing demand for electric      of EV service bays and charge                EV ambassador (pictured), said: “This accreditation
    vehicles: congratulations to the      points on site.                              is something Vertu Motors plc is passionate about.
    first accredited dealers of 2021”.                                                 The demand for electric vehicles is growing, and the
                                          The EVA badge of approval
    The EVA scheme has been               helps retailers communicate their            technology is different from a petrol or diesel car
    developed by NFDA and initially       knowledge and expertise and                  and customers are often uncertain as to what is the
    launched in May 2019 to               supports consumer confidence.                best option for them. This scheme makes sure that
    recognise retailers’ excellence in                                                 dealerships are prepared for the EV era and equipped
    the electric vehicle sector. EVA is                                                with the right knowledge to assist customers.
    endorsed by the Government’s             We are EVA Approved                       “Customers can be re-assured that at Vertu Volkswagen
    Office for Zero Emission Vehicles                                                  Skipton they will receive the very best advice and
    (OZEV) and Energy Saving Trust.                                                    support when buying an electric vehicle.”
                                                                       Office for
                                                                       Zero Emission

    EVA’s first year was extremely         Electric Vehicle Approved   Vehicles

8
VOICETHE - THE NATIONAL FRANCHISED ...
Richard Hawley, on-site EV ambassador at Vertu                            Robert Forrester, Chief Executive of Vertu Motors PLC
   Volkswagen Harrogate (pictured) said: “Electric vehicles                  (pictured), commented: “This initiative by the NFDA puts
   are the future, and the market is going to continue growing.              the road to zero carbon right at the forefront of the sector.
   Having experts on site to guide customers who are                         This accreditation is an important stepping stone to ensure
   potentially buying their first electric vehicle is essential and          that the dealerships have the right focus and experience
   this scheme makes sure that dealerships are prepared                      on electric vehicles. The sooner every dealership in the UK
   for the EV era and equipped with the knowledge to assist                  has the chance to be accredited the better. I would put the
   customers and provide the best advice and support.”                       whole Group through it now”.

John O’Hanlon, Chief Executive of Waylands, added: “I am delighted that Waylands Oxford has
become our first retailer to meet NFDA’s Electric Vehicle Approved Accreditation. Approval is only
given after a comprehensive audit undertaken of staff, training and dealership facilities and we are
confident that thanks to the EVA badge our customers will immediately understand that we are at the
forefront of electric vehicle retail”.
Additional dealerships received their EVA accreditation in February:

  Ashford Orbital

  Lookers Tyneside Audi

  Lookers Teesside Audi

  Roger Young Jaguar Land Rover
                                                                                                                   Office for
  Minerest Loughborough Kia
                                                                                                                   Zero Emission
  Vospers Torquay Peugeot
                                                                                                                   Vehicles
  Trident Honda

  Wearside Audi

Dealers who have already received their EVA             NFDA thanks the Office for Zero Emission
accreditation can contact the EVA team at               Vehicles and Energy Saving Trust for their
eva@rmif.co.uk to find out how to promote               continued support. We look forward to
their EVA status to consumers. The team will            continuing to work with our partners to ensure
be able to share the available versions of the          that an increasing number of retailers and
EVA logos, branding guidelines as well as social        consumers alike will benefit from EVA during the
media assets.                                           transition to a zero-emission market.

                                       Office for
                                       Zero Emission
      Electric Vehicle Approved        Vehicles

                                                                                                                                             9
VOICETHE - THE NATIONAL FRANCHISED ...
RMI Employment Law
     BULLETIN
     Please note: In this bulletin we aim to keep you
     up-to-date on some of the latest developments
     in employment law and although the bulletin is
     not intended to provide a comprehensive
                                                                                                                  Sp ri n g 2021
     summary of all the changes to
     the law, we hope to
     highlight some key
     areas of change for
     motor industry
     employers.

     Case Law Update                                           weaker party will be a Worker. There is no hard and       The Supreme Court of Slovenia decided to refer a
                                                               fast checklist and every case will be fact-sensitive,     number of questions to the ECJ for a preliminary
     • Uber ruling and the gig economy
                                                               but practical considerations may be:                      ruling.
     • Working time
                                                               • Does the individual control the hours they work, or    Decision
     The Supreme Court rules in favour of the                     are they set by the business?
     Uber drivers: are there implications for the                                                                        The ECJ ruled that periods of stand-by time where a
                                                               • Can they send a substitute to work, or are they
     motor industry?                                                                                                     worker is not carrying out any actual work and is not
                                                                  required to attend in person?
                                                                                                                         required to remain at the workplace, may in certain
     In what can be seen as yet further disruption to the      • Can they negotiate the terms of the contract, or       circumstances amount to ‘working time.’ The
     ‘gig economy,’ the Supreme Court has decided                 are they supplied with set terms?                      circumstances are when the constraints imposed
     that the claimants in the Uber case (Uber & Ors v
                                                               It will also need to be remembered that even though       upon the worker during those periods objectively
     Aslam & Ors [2021 UKSC]) are ‘workers,’ not self-
                                                               both sides may agree that the individual will work        and very significantly affect the worker’s ability to
     employed contractors. The ruling has far-reaching                                                                   manage their free time and devote it to their own
     implications for businesses across the country and        as a self-employed person, the Supreme Court in
                                                               Uber once again confirmed that employment status          interests.
     underscores the importance of correctly establishing
     a person’s employment status.                             is determined by the reality of the relationship, not     In making this assessment, the organisational
                                                               what it may purport to be.                                difficulties that a worker may experience during
     Employee, a self-employed contractor, or a                                                                          stand-by time which are a result of the free choice of
     worker?                                                   In Conclusion
                                                                                                                         the worker or natural factors, are not in themselves
     Under UK law, a person can generally be classed           The ruling will be significant for Uber as it opens the   relevant. Such an organisational difficulty would be
     as an employee, a self-employed contractor, or a          way for potentially thousands of national minimum         the fact that there are limited opportunities to pursue
     worker. Employees have the most employment                wage and unpaid holiday claims. It also has wider         leisure activities in the vicinity of the workplace; or,
     rights, while self-employed contractors (or               implications for those working right across the UK’s      that there is a substantial distance between the
     ‘freelancers’) have very little. Workers are a type of    gig economy and further claims from other industries      worker’s place of work and his freely chosen place
     middle way category who enjoy some employment             are to be expected.                                       of residence.
     rights. These include the right to receive the national   When Does Stand-By Time Qualify As                        It is only the constraints imposed upon the worker
     minimum wage, paid holiday, statutory rest breaks,        Working Time?                                             either by the law of their state, by the employer or
     protection from discrimination under the Equality Act                                                               by a collective agreement, which may be taken
                                                               In the recent judgment of DJ v Radiotelevizija
     2010 and protection for whistle-blowers under the                                                                   into consideration. In this case, the employer’s
                                                               Slovenija, the Court of Justice of the European
     Public Interest Disclosure Act 1998.                                                                                requirements that the worker had to be contactable
                                                               Union (ECJ) has decided that periods of stand-
     Uber argued that it was simply acting as a booking        by time will only constitute ‘working time’ in their      while on standby-by and had to return to the
     agent for the drivers who in turn were working            entirety when, during those periods, the constraints      workplace within one hour, when required, could
     for themselves. The Supreme Court affirmed the            imposed upon workers very significantly affect their      therefore amount to such constraints. It will now be
     decision of the lower courts that this position           ability to manage their free time.                        for the Supreme Court of Slovenia to decide whether
     was not consistent with the reality of the working                                                                  any such constraint operated ‘objectively and very
                                                               Background                                                significantly’ so as to affect the claimant’s ability to
     relationship. The fact that Uber calculated the fare
     and did not permit drivers to charge more; that Uber      The claimant worked as a technician at a                  manage his free time.
     could penalise drivers if they rejected too many trip     transmission station situated at the top of a             Conclusion
     requests; and that Uber restricted communication          mountain. He worked a shift pattern with each shift
     between driver and passenger – were among                 being 12 hours long. He then had 6 hours where            This decision serves to preserve previous caselaw
     the factors which betrayed less of a business             he was on stand-by. During the stand-by period the        of the ECJ; and, as a reminder to employers in EU
     relationship than one of subordination.                   claimant could leave the workplace, however, he           member states whose workers are on stand-by
                                                               had to be contactable and return to the transmission      or ‘on-call,’ but who do not necessarily need to
     Implications for the hand car wash industry?                                                                        remain at the workplace during that period – those
                                                               station within one hour when required.
     This has significant implications for any business                                                                  periods may nevertheless amount to ‘working time’
                                                               The nature of the work and the distance between           which will require to be remunerated accordingly,
     that utilises significant numbers of self-employed
                                                               his home and place of work meant, in reality, that        depending on the level and nature of the restrictions
     contractors or freelancers. With between 10,000 –
                                                               the claimant had to stay in the vicinity all day, with    that the worker is subjected to.
     20,000 hand car washes in the UK, proprietors who
                                                               little opportunity for leisure activities. His employer
     engage those to do the work as freelancers may                                                                      This ruling may potentially be considered and/or
                                                               provided accommodation at the station due to its
     need to review the working relationship to ensure                                                                   relied upon in UK courts and tribunals following
                                                               remote setting, which the claimant was entitled to
     that it is truly one of self-employment. Where self-                                                                Brexit as, although EU law no longer binds the
                                                               use.
     employed contractors or freelancers are deemed                                                                      UK, the European Union (Withdrawal) Act 2018
     in fact to be workers then this will have significant     The claimant brought a claim in which he argued           makes provision for UK courts and tribunals to have
     financial implications with regards to National           that the periods when he was on stand-by were so          regard to caselaw of the ECJ to the extent that it
     Minimum Wages as well as paid holiday entitlement.        restrictive that they were tantamount to overtime,        may be relevant. In this regard, it may be noted
                                                               irrespective of whether he was specifically called on     that the Working Time Regulations, which is the
     How can I tell?
                                                               to work during a stand-by period. He claimed that         applicable law in the UK, was originally put in place
     As confirmed in the Uber case, the more control           these periods should thus be considered ‘working          to implement the EU’s Working Time Directive, and it
     one party has over the other the more likely that the     time’ and remunerated accordingly.                        is that Directive on which this case is based.

10
Articles                                                    Irish nationals                                              find yourself in the situation above, contact us at any
                                                                                                                         stage for advice and assistance as appropriate.
What steps am I required to take around                     Note that the position will be different for Irish
right to work in the UK checks for European                 nationals who are generally treated as free from             FCA and Discretionary Commission Ban 28
nationals following Brexit for existing and                 immigration time restrictions from the date that they        January 2021
new employees?                                              enter the UK. Irish nationals can apply for status
                                                                                                                         Covid-19 has, naturally, been the focus of many
                                                            under the EU Settlement Scheme if they want to,
Employers must continue to carry out right to work                                                                       businesses for some time. Unfortunately, the wheels
                                                            but there is no need for them to do so.
checks for all workers before employing them, as                                                                         of the world of business do keep on turning. In July,
was the case prior to Brexit:-                              Covid-19: Can employees be required by                       the FCA introduced significant changes regarding
https://www.gov.uk/government/publications/right-           their employer to get a vaccination?                         the use of Discretionary Commission Models within
to-work-checks-employers-guide                              With no firm end in sight to the coronavirus                 the motor industry. These changes are significant, so
                                                            pandemic, it continues to significantly impact               what do businesses need to know?
Position on right to work checks during the
transition period up to 31 December 2020                    employers and the workforce. Although the vaccine            A Ban On Discretionary Commission Models
                                                            is not yet available to be purchased privately,
European Economic Area (“EEA”) nationals and                employers may want employees to take the vaccine             The FCA and consumer groups have for some
their family members who continue to have a right           as soon as they become eligible, under the voluntary         time held reservations regarding the use of variable
of residence in the UK under EU law throughout              NHS programme. A high vaccination rate would                 interest rates generally. In their business plan for the
the transition period do not fall within the definition     minimise the number of employees having to self-             2017/2018 year, the FCA therefore announced a
of those who are required to have leave to enter            isolate and minimise the risk of employees becoming          review of the sector, publishing its report and final
or remain. This means that they do not require              infected by workplace transmission.                          findings in March 2019. Following a consultation,
permission to work in the UK and an employer                                                                             the FCA concluded that discretionary commission
cannot be penalised for employing them, regardless          Can I require a vaccination?                                 models; where the broker can effectively set the
of whether or not right to work checks have been            Under the Health and Safety at Work Act 1974,                interest rate, were widespread and carried an
carried out. However, as stated at the outset it is         employers have a duty to ensure the health and               incentive for brokers to act against customers’
important that an employer has correctly conducted          safety of their employees so far as is reasonably            interests. The FCA concluded that removing this
the right to work check and crucially, can evidence         practicable. To this end, requiring employees to             incentive would protect consumers and save
this as they will potentially benefit from the ‘statutory   be vaccinated against the coronavirus may seem               customers £165 million a year.
excuse’. This means that if they are later found to be      like a reasonable request, particularly if it is difficult   In July, the FCA announced that a ban on the use
employing an illegal worker, they may be excused            to employ other safety measures such as social               of discretionary commission models would be
from a civil penalty and so do not receive a fine           distancing. However, the government has not made             introduced from 28 January 2021 in order to give
which is currently set at up to £20,000 per illegal         the vaccination compulsory, and there are a number
                                                                                                                         firms additional time to implement the new rules.
worker.                                                     of reasons why an employee may refuse a vaccine,
                                                            whether, for example, due to medical or religious            In Conclusion
EEA and Swiss nationals who are in the UK before
                                                            reasons. This may put the employer in a difficult
the end of the transition period have until 30 June                                                                      Hopefully, this is not new information, as we would
                                                            position, both legally and in terms of employee
2021 to apply for either settled or pre-settled status,                                                                  have expected significant work to have already
                                                            relations.
which will give them the right to work in the UK.                                                                        been undertaken in preparation for the deadline.
                                                            What if an employee refuses?                                 Any members who operate any system where
Please see link below to the government EU
                                                                                                                         commission is variable will have to closely examine
settlement scheme employer toolkit:-                        An employee’s refusal to comply with a reasonable
                                                                                                                         their business model and ensure compliance with
https://www.gov.uk/government/collections/eu-               management instruction may be grounds for
                                                                                                                         the FCA ban. Members will have to ensure that
settlement-scheme-employer-toolkit                          disciplinary action including dismissal. An employer
                                                            will have to carefully consider the individual               all staff are fully informed and trained on any new
Right to work checks during the 6 month ‘grace              circumstances of the employee and whether the                systems; a significant challenge with showrooms
period’ (1 January 2021 to 30 June 2021)                    refusal is justified. The nature of the workplace            closed.
Employers can continue to use EEA and Swiss                 will also have to be appropriately risk-assessed             The FCA have stated that they will be monitoring
passports and national identity cards as evidence of        and considered by the employer: it may not                   closely how well firms comply with the ban, as well
an individual’s right to work in the UK until 30 June       be reasonable to require an office worker to be              as looking closely at any alternative commission
2021.                                                       vaccinated should remote working be possible;                model introduced that could lead to the same
                                                            however, it may be reasonable to require vaccination         harm. The FCA currently plan to carry out point of
Employers can also use the online checking service          of a healthcare worker, whose patients are                   sale mystery shopper exercises to measure and
to confirm that a candidate has settled or pre-settled      particularly vulnerable.                                     monitor lenders’ control over the dealer network and
status and therefore has the right to work in the UK.
                                                            At the present time it would seem likely that                to ensure compliance. This work is scheduled to
However, up to 30 June 2021, candidates do not
                                                            disciplinary action would be a risky option for the          commence in September 2021, with a full review of
have to agree to share their status using the online
                                                            employer, but the risk will depend on the facts of the       the intervention carried out in 2023/24.
checking service. They can provide their passport or
national identity card as an alternative.                   case and the disciplinary action taken.                      We would strongly advise that any new systems are
                                                            One particular aspect is the Equality Act 2010.              monitored, and staff reviewed to ensure compliance
There will be no requirement for employers to carry
                                                            Employees should not receive any less favourable             with new systems and processes.
out retrospective right to work checks for existing
EEA and Swiss national employees to confirm that            treatment, or be put to a detriment arising from not         Further Information
they have settled or pre-settled status. In other           being vaccinated due to protected characteristics
                                                            such as age, religion, philosophical belief (e.g.            Further information can be found at:
words, if an employer has conducted a compliant
right to work check for an EEA or Swiss national            so-called ‘antivaxers’ could seek to argue that              FCA Full Report (03/2018):
before 1 January 2021, it will not need to repeat this      an objection to vaccination could be considered              https://www.fca.org.uk/publication/research/our-
when the transition period ends.                            a ‘philosophical belief’), pregnancy etc… If, for            work-on-motor-finance.pdf
                                                            example, a person had a medical condition that
EEA and Swiss nationals entering the UK from 1              could affect their decision to take the vaccine, any         In Conclusion
January 2021 will not be able to apply for settled or       less favourable treatment towards them could                 Don’t forget, any advice contained in the above is
pre-settled status. Because free movement between           result in claims of discrimination on the grounds            general in nature and will need to be tailored to any
the UK and the EEA ends on 31 December 2020,                of disability. This, of course, is only one particular       one particular situation. As an NFDA member you
they will require a visa to be able to work in the UK       example, and there are other areas of vulnerability          have access to the NFDA Legal advice line, as well
under the new immigration system. Therefore, to             for the employer. It is therefore important that you         as a number of industry experts for your assistance.
confirm the right to work of EEA and Swiss nationals        take advice before proceeding.                               Should you find yourself in the situation above,
arriving in the UK on or after 1 January 2021,                                                                           contact us at any stage for advice and assistance as
                                                            Conclusions
employers will need to see evidence of their visa                                                                        appropriate.
alongside their passport or national identity card.         For now, employers should act cautiously in the
                                                            mandating of a Covid-19 vaccination for the                  Motor Industry Legal Services
EEA and Swiss nationals are not required to share
                                                            workforce. In the majority of cases, they may have to        Motor Industry Legal Services (MILS) provides fully
their settled or pre-settled status prior to 30 June
                                                            make the best of regular testing (not without its own        comprehensive legal advice and representation to
2021. This may present an issue for employers with
                                                            difficulties), protective measures such as screening         UK motor retailers for one annual fee. It is the only
new starters between 1 January and 30 June 2021,
                                                            and sanitising stations, temperature checks and              law firm in the UK which specialises in motor law
as they may not know if the employee was already
                                                            effective compliance with face coverings and social
in the UK before 1 January 2021, and therefore                                                                           and motor trade law. MILS currently advises over
                                                            distancing rules.
whether or not they require a visa. The Home Office                                                                      1,000 individual businesses within the sector as well
has yet to provide guidance in relation to checking         This advice is general in nature and will need to be         as the Retail Motor Industry Federation (RMI) and its
the right to work of employees in this category.            tailored to any one particular situation. Should you         members.

                                                                                                                                                                                    11
I have to say the NFDA played a big part in that as we were able to talk to other

                                      The Voice
                                                                                        dealer groups about how we were all coping, how to interpret the Government
                                                                                        guidelines and how to engage with the manufacturers. We were condensing
                                                                                        all this information into what it meant for us to then communicate it to all our

                                      Interviews                                        people.
                                                                                        The key for me was engagement and we got really good engagement earlier

                                        James
                                                                                        on.

                                                                                                            How about getting ready to reopen?

                                       Brearley                                         During the first lockdown, we spent
                                                                                        a month trying to work out how we

     Q
                                                                                        would reopen. By the time we were set
                            CEO of Inchcape UK                                          to reopen we had all PPE we needed,

                                                                                                                               Q
                                                                                        we immediately put the plastic screens

                 A
                                                                                        in place in our businesses, and we
                                                                                        were writing to the car manufacturers
                                                                                        to tell them how we were going to
                                                  22 March 2021                         operate. We put a very comprehensive
                                                                                        reopening guide together and circulated it to
                                                                                        every single team member within a month of
                                                                                        shutting down and the fact that we had a plan
                                                                                        reassured a lot of colleagues.
            How did your career in automotive begin and when did you
                              start with Inchcape?
                                                                                                  Will more customers embrace online sales even after
                                                                                                                dealerships fully reopen?
     The first job I got was cleaning cars and serving petrol at a garage called
     Jessups, a Ford dealer in the West Midlands. Through that I got interested in
                                                                                        I don’t think there is a radical change in customer behaviour, of course the
     the car industry and I started selling cars, this was a great opportunity for me
                                                                                        pandemic has accelerated some trends, but people have been shopping online
     because at the time Ford were, without question, the best trainers of people.
                                                                                        for cars for 15 years.
     I gained more experience and then I started working for a business which,
                                                                                        More and more of the transaction is being carried out online, it isn’t a one-
     interestingly enough, was acquired by Inchcape in 1985. I worked there until
                                                                                        year phenomenon. People aren’t going to go backwards, I just can’t see that
     about 1991 when I joined a fairly young business called Pendragon PLC, which
                                                                                        at all. I think people will start to revisit showrooms because they’ll want the
     was about a dozen sites when I arrived and, over the 24 years I was there,
                                                                                        reassurance that their purchase is the right purchase.
     grew to more than 400. When I left, I set up my own business and then, after
     having done some consultancy work for Inchcape overseas, I was invited to          We, as a business, can transact completely remotely, and, by the time we get
     pick up responsibility for the UK business about five years ago.                   to March from January 1, we will have transacted just under 20,000 car sales;
                                                                                        bearing in mind doors have not been open and we’ve carried out no test drives
                                                                                        since the start of the year.
                    How has Inchcape dealt with the lockdowns?

     When I joined the business five years ago, we had a portfolio of franchises.             What’s your view on the Government’s Road to Zero and the
     The business was quite old fashioned, we weren’t particularly advanced from a            2030/2035 ban on internal combustion engine vehicle sales?
     digitalization point of view, we didn’t have a huge amount of remote capability.
     So, we started our journey about four and a half years ago to rationalize our      When you look at the timescale on the move to electric vehicles, I’m sceptical
     representation, to streamline our processes and start acting like one business     about our ability to deliver on that. When I say us, I mean the whole industry,
     rather than a collection of businesses. We’ve done a huge amount of process        not only the dealers but also the car manufacturers and infrastructure providers.
     reengineering, taking processes away from what was old Excel spreadsheets          I’m also sceptical about the willingness of people to want to transact because
     on to a digital platform; also from a customer offering point of view we’ve gone   of electric vehicles’ cost. In terms of price point, there is a sweet spot that gets
     from four different trading names four and a half years ago to one, and we’ve      the movement of people away from internal combustion engines to EVs and we
     taken eleven websites down to one.                                                 are far from that today.
     We were quite well advanced in our cost and representation reduction plan as       The charging infrastructure can also be a barrier; the fact that more than
     well as the digitalization of the business prior to COVID. This did mean when we   30% of the charging infrastructure is in Greater London and only 3.5% is in
     entered the period of restrictions, we were far better able to operate remotely    Wales makes widespread adoption very difficult. I can’t see the economics,
     than we would have been two or three years earlier.                                who’s going to pay to put electric charging points into rural areas such as the
                                                                                        Welsh-English border? Unless the government dips his hand into his pocket far
     Starting our cost reduction and representation reduction plan two years before,
                                                                                        more so than they are currently indicating they will, I’m just not sure about the
     meant we were really lean coming into this really difficult period. As a result,
                                                                                        widespread adoption of EVs outside of major conurbations.
     across the whole group of 4,000 plus people employed in the UK, we lost no
     more than 200.
                                                                                           How important is the role of retailers during the transition to EVs?
                             How did you communicate with
                             your staff during the pandemic?                            The move to electrification has been driven by the car manufacturers. If you
                                                                                        look across our business and at the franchises we represent, we started
                                                                                        installing charging points so long ago that we are now upgrading them. The
     Initially, just as everybody else, we were pretty shocked, but it became clear
                                                                                        tone and the pace will be set by the brand we represent.
     pretty quickly that we were able to operate with our teams and keep them
     engaged remotely quite well. We started to communicate on a weekly basis
     with everybody, the communication team were excellent at getting every single          As we come out of the pandemic, what is the biggest challenge
     team member’s private email address, regardless of their role, which allowed us              facing car retailers? And the biggest opportunity?
     to communicate directly with all the people in the business.
                                                                                        I think the biggest challenge is acceptance of change and I also think the
     From day one we started to issue a bulletin to keep our colleagues updated
                                                                                        biggest opportunity is our willingness to accept change.
     and reassure them that the business wasn’t going to collapse; we are part of a
     multinational company with good cash reserves.                                     If you look at the world we are in today, there is a lot going on. We’ve got the

12
transition to EVs now but before we’ve had this massive change from petrol to
diesel over a 10-year period and then swinging back to diesel in a year. We are
out of Europe, so we have a potential opportunity to change the contractual
relationships with car manufacturers through the revision of block exemption,
and we have certain manufacturers looking at introducing agency models,
which would be a huge change for franchise dealers.
All this disruption and change around us means that if you’re not light on your
feet, and you’re not able to embrace change and do things differently, then you
have a real problem.
                                                                                       Our strategy was very simple, we looked at the weight of businesses that we
The real winners are those who have their people invested heavily in their digital
                                                                                       have in the southeast of England, where the cost base for property, rates, and
architecture and who can generally deal remotely. Unless you take a bullish
                                                                                       people, is substantially higher than it is elsewhere. I can sell a car in Croydon
approach to the changes that we are going through and unless you have really
                                                                                       from Bolton and it’s a lot cheaper to transport the car down for the customer
engaged teams, who will do things differently and look at a problem and solve it
                                                                                       from Bolton than it is to have a dealership in Croydon. So, we started to reduce
with you, you’ve got a real challenge coming up.
                                                                                       our footprint in high-cost areas, knowing we could continue to sell in these big
I’m extremely proud of the fact that we paid back every penny of furlough              conurbations remotely, which is exactly what’s happened.
money from 1 July onwards, and we paid back all the rates relief, yet, we
                                                                                       We reduced our cost base in multiple ways, but we were also able to effectively
haven’t lost money at all. In fact, bearing in mind we don’t have any dealerships
                                                                                       pay back our shareholder Inchcape PLC £220 million cash in the last two and a
in Scotland, we have only one in Wales, and we’ve sold a number of
                                                                                       half years, while the car retail business became more profitable than it was two
dealerships in the last two years, we still sold 5% of all the new cars that were
                                                                                       years ago. Our scale in terms of volume of sales has not been affected, yet the
registered in the UK in January.

                            A
                                                                                       cost basis is much lower.

        With all the changes facing our industry, has Inchcape’s
                                                                                                     What about the used car side of the business?
                 approach to recruitment also changed?
                                                                                       We have had a huge amount of success with used cars over the last couple
As a global organisation, we are an extremely diverse company, you cannot
                                                                                       of years. We have three standalone used car businesses that we started to
operate in 33 global markets without having an eye on diversity, whether that
                                                                                       develop in Burton on Trent, two and a half years ago. We had a very good
be gender, ethnicity or age. Today you can easily find a lot of the skills we
                                                                                       experience with high return on sales and fantastic return on capital employed
need in someone who’s just come out of university or joined our industry from
                                                                                       from the businesses we’ve opened so far, therefore the next stage of our
another sector.
                                                                                       development is to open a further five sites this year; we had to sell one to Vertu,
                                                                                       but we have already added three. Our intention through 2022 is to add a further
                      What are Inchcape’s next plans?                                  10, we believe a scale of circa 15 to 20 standalone used car businesses is the
                                                                                       right thing for us to invest in.
We have rationalized our
physical footprint and our                                                                  What role has the NFDA played for you during the pandemic?
motivation behind that was
very simple. Four years ago,
                                                                                       I can do nothing but sing the praises of the NFDA; in the last 12 months, the NFDA
we believed the customers
                                                                                       has really demonstrated its value. You’ve got a really good structure and some
would engage more and
                                                                                       great people. David (*Newman) as Chairman understands the business as well as
more digitally, therefore, it’s a
                                                                                       anybody does, Sue does a fantastic job of lobbying and keeping a really good,
lot less important where they
                                                                                       constructive momentum to meetings, and, simply, NFDA made my life much,
live and where we operate. When people buy a car, about once every two years
                                                                                       much easier. My feedback couldn’t be anything other than an extremely positive.
or more, they are generally happy to travel for their car purchase.

                                                                                                                     FT LIVE
FUTURE OF THE CAR 2021 –                                                                                          FUTURE
DISCOUNT AVAILABLE                                                                                               OF THE
FOR NFDA MEMBERS                                                                                                 Digit
                                                                                                                        CAR
                                                                                                                       al Con
                                                                                                                 11-13 May ference
                                                                                                                           2021
                                                                                                                     Register
                                                                                                                              Now

The Financial Times Future of the Car summit is           hitting interviews with the biggest names in the        and join peer-to-peer roundtables.
where OEMs, industry shakers and challenger               business on the topics carmakers around the
                                                                                                                  Further details can be found at
brands come together to scrutinize the                    world are most concerned about, including how
                                                                                                                  https://car.live.ft.com/
technology, consumer, business model, and                 to scale-up electric vehicle production and sales,
market trends forever changing the way cars are           meet aggressive decarbonization targets in              NFDA members can benefit from a £200
made and sold. Now in its seventh year, this is           materials as well as exhaust-pipe emissions, and        discount code for ‘Professional Passes’ giving
one of the most highly anticipated gatherings in          comply with new laws coming into force across           access to: live talks, live Q&A and Polls, a
the global automotive events calendar.                    the globe, as legislators and regulators tighten        networking and community area, videos on
                                                          rules.                                                  demand.
NFDA members interested in joining the 3-day
virtual event, can benefit from a £200 discount           You will be able to participate in live                 Please email nfda@rmif.co.uk for more
code. Attendees can expect three days of hard-            conversations, find out what OEMs are doing,            information and to request your discount code.

                                                                                                                                                                             13
You can also read