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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
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
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
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
“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
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
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
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
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
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. 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