October / November 2012 Issue

The trade magazine of the retail motor industry federation ISSN 2046-3073

RMI

n OCTOBER/NOVEMBER ‘12 | £4.00

AUTOMOTIVE INSIGHT | FORECOURT

MOT and Europe - updates IGA

Technical training on a roll NFDA

WE NEED YOUR VIEWS NAMA

What now for Autumn values? NAB

Perrys of Gobowen MRA

What’s the future for Audi’s Ducati?

I M R

FORECOURT

Fuel campaign wins national coverage

R? E DINN ed ok

u bo o y e v Ha

DEALERS

R O F T S INVE

E UR T THE FU

vey r u s itude

tt a r e deal

OCTOBER/NOVEMBER ‘12 • WWW.RMIF.CO.UK • AUTOMOTIVE INSIGHT • 1

2 • AUTOMOTIVE INSIGHT • WWW.RMIF.CO.UK • OCTOBER/NOVEMBER ‘12

Useful Contacts Head Office 201 Great Portland Street London, W1W 5AB Tel: 020 7580 9122 Fax: 020 7580 6376

Member Helpline Tel: 0845 8399 205 Email: [email protected] Joining the RMI; member benefits; consumer issues; legal and HR advice; general enquires

Trust My Garage Tel: 08000 764 864 Email: [email protected]

Sue Robinson Director, NFDA, MRA, NAMA, Press and Policy Tel: 0207 307 3424 Fax: 0207 307 3406 Email: [email protected]

Stuart James Director of IGA and Operations Tel: 07528 977 167 Email: [email protected]

Communications and Policy Officer Rosanna Collings Office: 0207 307 3424 Email: [email protected]

October/ November 2012 RMI UPDATES 04 RMI wins tougher testing to save lives 05 Dealers warned over finance fraud 06 Redundancy, the law and you 07 So who is a vehicle’s keeper? 07 DVLA office closure dates

04

FEATURES 08 Tribunal fees 10 Westminster and the party conferences 12 Lifts in the workplace 16 TV Headliners to star at RMI Dinner

iga 21 22 22

21 23 24 26

Technical training on a roll IGA website boosts member business Report is good news for IGA members

The taxman is coming Simmo’s Solutions – Lee finds the answers Quality batteries packing a punch

NFDA/CV 30 31 32

30 33 34 35

NFDA Ball – still time to book We need YOUR views Get online for DAB changes

NFDA Used Car Standard Will truck testing be fully privatised? Dealer survey – all the results

NAMA/MRA 38 38 39 40

38

Quality older stock unlocks sales What now for Audi’s Ducati? Have bike sales turned the corner? NAMA used car data

42 43

Five years on – the UK market in depth Why are used cars getting older?

NAB 44 44

44 45

Ford write-off scheme opens for members Chances open for VDAs

Perrys of Gobowen – the secret of success

FORECOURT 46 46 48

46 52 54

How far off is 150ppl? PRA backs OFT on prices Gulf network joins PRA

Sun power boost PRA fuel duty campaign Keeping the (car wash) customer happy

REGULARS 58 60

58

Thieves target “cats” – Allianz advice on fighting back RMI specialists MILS

62

HR Q and A puts HR at your fingertips

Editor

Sub-Editor

Production

Advertising

Graphic Design

Vaughan Freeman [email protected]

Dawn Pardoe [email protected]

PW Media & Publishing Ltd Tel: 01905 723 011

Suzie Scott Tel: 01905 727 907 [email protected]

Paul Blyth [email protected]

Unless otherwise indicated, views expressed are those of the editorial staff, contributors and correspondents. They are not necessarily the views of the RMI, its officers or councils. The publication of an advertisement does not imply that a product or service is recommended by the Federation. Material may only be reproduced by prior arrangement and with due acknowledgement to Automotive Insight. OCTOBER/NOVEMBER ‘12 • WWW.RMIF.CO.UK • AUTOMOTIVE INSIGHT • 3

RMI | UPDATES

RMI wins tougher VOSA recalls update testing to save lives RMI calls for earlier MOTs for high mileage vans have been supported by the European Commission which has adopted new rules to toughen up the testing regime and widen its scope. Technical defects are responsible for 6% of all car accidents, resulting in 2,000 fatalities and many more injuries across Europe yearly, and 8% of all motorcycle accidents. The move comes as latest Department for Transport road casualty statistics show road deaths and serious injuries are on the rise for children, pedestrians, motorcyclists and cyclists. Recent studies from the UK and Germany indicate that, at any one time, up to 10% of cars have a defect that would cause them to fail an MOT. Moreover, many are technical defects with serious implications for safety (such as ABS and Electronic Stability Control). The new proposals aim to save more than 1,200 lives a year and to avoid more than 36,000 accidents linked to technical failure. Commission Vice President Siim Kallas responsible for Transport said: “It’s not complicated; we don’t want these potentially lethal cars on our roads.” Key elements of the new proposals include: • Compulsory EU wide testing

for scooters and motorbikes • Increasing the frequency of periodic roadworthiness tests for old vehicles • Increasing the frequency of tests for cars and vans with exceptionally high mileage • Improving the quality of vehicle tests through common minimum standards for deficiencies, equipment and inspectors • Making electronic safety components subject to mandatory testing • Clamping down on mileage fraud with registered mileage readings. The proposals also provide for Roadside Inspections (RSI) featuring: • Targeted roadside inspections based on the risk profile for vehicle operators • Roadside inspections to include LCVs and their trailers (N1, O1 and O2) • On average 5% of vehicles to undergo roadside inspections • Introduction of a multiple level check. Initial check of the overall condition of the vehicle and then a detailed check if judged necessary. • Introduce requirements for inspection of cargo securing • Thorough training of RSI inspectors. n

DVLA Personalised Registrations The latest DVLA three-day auction banked more than £4million. Almost 7,000 registered to bid, which is the highest number for a sale of 1,500 registrations in five years. The top two selling registrations – 100 O and 50 OOO – sold for £71,360 and £36,368 respectively. They were bought by the same mystery buyer during the final day of the event staged at MercedesBenz World in Weybridge, Surrey.

BU11 OCK is heading on to a cattle lorry after being bought by a livestock merchant from Essex and was the third highest seller at £29,888. Numbers AK11 TAR and 91 S, sold for £26,259 and £22,163 respectively. The next sale will start on November 14 and take place at Ardencote Manor Hotel in Claverdon, Warwickshire, where the record-breaking 1 D fetched £357,000 in March 2009. n


VOSA is taking a much harder line on vehicle safety recalls. Car, truck and motorcycle dealers have to ensure that any used vehicle they sell has been checked for outstanding safety recalls and that the work has been carried out. Dealers are advised to ensure that as part of their due

diligence process they check for outstanding recalls through their manufacturers, the VOSA website and other dealers if the vehicle is branded outside their franchise. These are the latest VOSA recalls but for more information visit the VOSA website www.vosa.gov. uk or contact your local relevant dealership regarding the marque. n

VOSA Reference Number

Make and Model

Issue

R/2012/071

Honda – Jazz and Civic I-shift

Transmission may malfunction

R/2012/074

Citroen – C3, C3 Picasso and DS3

AB/ESP may not operate correctly

R/2012/076

Citroen – C3, C3 Picasso and DS3

Engine may cut out

R/2012/077

BMW – X5 and X6 (LHD)

Short circuit may occur

R/2012/078

628

Potential fire risk

R/2012/082

Porsche – Panamera Turbo, Turbo S and Cayenne

Fire may occur

R/2012/067

Isuzu Truck – N-Series

Starter relay may overheat and burn out

BEN on the road with Marshall Group Marshall Motor Group is to supply auto industry charity BEN with a Nissan Juke for the next three years. The car will be used by Kerry Whitaker, BEN’s Regional Development Manager for London and East Anglia, who says: “This is a fantastic gesture. We are so grateful to Marshall Motor Group for consistently supporting BEN in so many different ways, and this additional contribution is very timely as we have an even greater need for replacement loan cars than normal. Driving this great car

will help promote BEN across my region, and I hope this will inspire others to make a difference.” “We are delighted to be able to support Kerry in this way,” said Carole Burman of Marshall’s: “BEN helps thousands of automotive employees, past and present, every year. The loan of the car and our decision recently to sign up to BEN Help, which is the charity’s employee assistance programme, demonstrates our absolute commitment to the welfare of our staff, as well our support to BEN as our industry charity.” n

UPDATES | RMI

‘60s MINI voted greatest British car Dealers warned over finance fraud Dealers could be at risk from criminals operating scams concerning credit. The fraud – known as “fronting” – is now the most common type of motor finance fraud reports the Finance & Leasing Association (FLA). “Fronting” or first-party motor finance fraud usually occurs when a person takes out credit on behalf of someone else and a finance agreement is ‘fronted’ when a vehicle is not being used by the customer who was originally approved by the finance company. First-party fraud accounted for 37% of all car finance frauds reported to the FLA in the second quarter of this year. Application fraud accounted for 30% of all fraud cases in the same period, and conversion fraud (when a car is sold when it is still on finance) accounted

for 25% of cases. The remaining 8% of fraud cases were identification or impersonation frauds. Overall, motor finance fraud cases have fallen but Paul Harrison, the FLA’s head of motor finance, said: “It’s important that finance companies know who is driving their property for the duration of an agreement. “This does not mean that a parent can’t apply for credit to buy a car for their children, because the location of car will be known. Lenders are more concerned about customers handing cars to third parties who cannot be traced. “A finance company will usually remain the owner of car until the final repayment is made and any breach of contract could result in a case being referred to the police’s national Vehicle Fraud Unit for investigation.” n

The iconic original Mini has beaten off the Jaguar E-Type, Range Rover and the London black cab to be voted the greatest British car ever made. First launched in 1959 and made famous by wins in the Monte Carlo Rally and owners including the Beatles, the Mini sold 5.4 million during its 41-year lifetime. The Mini was voted best car by readers of Autocar and editor-inchief Steve Cropley said: “The Mini had many faults and was never profitable, but it rewrote the rules and had a bigger impact on Britain’s car industry than any other car. “It was one of the most remarkable cars ever built, with seating for four and a decent boot in its 10-foot length, revolutionary drivetrain and gearbox and ultra-compact suspension. “Then there was the Mini Cooper and the enormous driving

pleasure. The Mini’s influence is highly visible in every VW Golf or Ford Focus today, and the legend will live forever.” The poll coincided with news that Britain’s car manufacturing output will reach its highest ever levels by 2015. More than two million cars are expected to be built in Britain in 2015, according to the SMMT, overtaking the 1970 record. Over 80% of the cars built in the UK in 2011 were exported.

Top 10 greatest British made cars 1.Mini 2. Range Rover 3. Jaguar E-Type 4. Land Rover 5. McLaren F1 6. Range Rover Evoque 7. Caterham 7 8. Morris Minor 9. McLaren MPF-12C 10. London Taxi


RMI | UPDATES

Redundancy, the law, and you Recently the Government launched a three month consultation on proposed changes to the collective redundancy consultation regime. The changes are aimed at creating a more effective regime that will enable employers to restructure more quickly and cost effectively and provide employees with greater certainty. In summary, the Government proposes: • Reducing the current 90 day consultation period in relation to redundancies involving 100+ employees to either 30 or 45 days; • Introducing a non-statutory Code of Practice • Providing improved Government Guidance The aim is that the Code will provide clarity on contentious issues but will also allow sufficient flexibility to allow parties to adapt the consultation process to their specific needs. The following areas of uncertainty will be covered by the new Code of Practice: • What is an ‘establishment’?

• Should the expiry of fixed term contracts be treated as redundancies for the purposes of collective redundancy consultation? • When the redundancy consultation should start and end • What the consultation should cover • Who should be consulted • Consultation in insolvency situations The interaction of collective redundancy consultation rules with the legislation applicable to the transfer of undertakings is to be addressed by the Government as part of its review of the Transfer of Undertakings (Protection of Employment) Regulations 2006. At present if an employer fails to comply with its collective redundancy consultation obligations the Employment Tribunal may make a protective award of up to 90 days actual pay. The award is intended to be punitive so the Tribunal’s starting point is 90 days pay. The Government has confirmed that it does not propose to reduce the amount of this protective award. n

How to buy profitably at auction British Cars Auctions (BCA) has launched a new training course for franchised and independent dealers on how to buy profitably at auction. Aimed at all levels of dealer staff involved in stock procurement, the course gives a thorough grounding in the principles of physical and remote auction buying, stock location, appraisal and valuation. BCA Training Manager Les Butler said: “Profitably sourcing used stock is likely to be one of the biggest challenges facing dealers, franchised or specialist, not just this year but for the foreseeable future. “Auction offers the biggest and most reliable source of stock for dealers, but many professional buyers have lost touch with the auction scene, think it’s not for them or simply have never used auctions in their stock acquisition planning. “This course aims to demonstrate how cost effective the auction is,

whether you are buying to order or for stock. It should also dispel the long-held myth that the best cars don’t come to auction. Nowadays the best cars are rarely seen anywhere else.” The full-day event covers the basics of buying at auction, using remote and online channels, stock location, buying to order and stock replacement. It also advises on how to maintain and keep a portfolio of used stock for retail and includes a stock valuation exercise. Butler added: “Maintaining the right profile and choice of retail used stock could make the difference between a profitable and nonprofitable business. Anyone involved in selling used cars or vans who does not use auction as part of their acquisition strategy is missing out on one of the best tools in the box.” n • For more details call the BCA Dealer Call Centre on 0845 600 6644 or visit www.british-car-auctions.co.uk


AFRL Christmas dates

The dates for the Automated and First Registration and Licensing service over Christmas and New Year have now been announced. There will be no AFRL service on 25th and 26th December or on the 1st January 2013. For the remainder of the holiday period AFRL will be available for the normal processing hours, with batch files transmitted to you on the same evening. The arrangements are in the table below. The accounting files will be sent out as usual, with payments being required on Friday, 21st December, Friday, 28th December 2012 and Friday, 4th January 2013 respectively. The advanced registration parameters will be extended to allow early completion of AFRL registrations up until Tuesday, 3rd January. The parameter will be set as follows:

• 9 days from Friday 21/12/12 • 9 days from Monday 24/12/12 • 6 days from Friday 28/12/12 Please note that the AFRL help desk will close at 12.00 on Christmas Eve, 24th December and re-open for business as usual between 8.00 and 17.00 on Thursday 27th, Friday 28th, Monday 31st December and then as normal from Wednesday 3 January 2012. DVLA Local Offices will close at 12.00 noon on Christmas Eve and will re-open on Friday, 28th December. DVLA Local Offices will be open 9am on Monday 31st December and close at 5pm, reopening on Wednesday the 2nd January 2013 with the exception of the Local Offices in Scotland, which will re-open on the Thursday 3rd January 2013. n

Date

Online Service

Batch Run

Wednesday 19/12/12

Normal Service

Yes

Thursday 20/12/12

Normal Service

Yes

Friday 21/12/12

Normal Service

Yes

Saturday 22/12/12

Normal Service

Yes

Sunday 23/12/12

No Service

No

Monday 24/12/12

Normal Service

Yes

Tuesday 25/12/12

No Service

No

Wednesday 26/12/12

No Service

No

Thursday 27/12/12

Normal Service

Yes

Friday 28/12/12

Normal Service

Yes

Saturday 29/12/12

Normal Service

Yes

Sunday 30/12/12

No Service

No

Monday 31/12/12

Normal Service

Yes

Sunday 01/01/13

No Service

No

Monday 02/01/13

Normal Service

Yes

UPDATES | RMI

Telling the world Dates confirmed for about automotive DVLA office closures The RMI is taking a lead role in an exciting new initiative which is promoting automotive retail as an attractive, secure and unique career choice to young people. The Discover Automotive Retail initiative gives our sector a wonderful opportunity to demonstrate the wide range of career possibilities it offers the next generation, and provide young people with a fresh perspective on what automotive retail has to offer. The project gives dealerships, dealer training academies and other automotive retail sites the chance to tell the world about our industry and give an insight into its vast range of employment opportunities from technicians and office roles, to sales and finance. You and your businesses can play a part by giving youngsters a ‘hands-on’ experience on shopfloors, garages and

behind the scenes to witness the varied and often unknown opportunities available. We want you to be involved! Discover Automotive Retail is a sector-led initiative jointly fronted by the RMI, the SMMT and the Institute of the Motor Industry. We will work together to engage fresh talent to help maintain our industry’s reputation as one of the leading sectors of the UK economy. The RMI is iinviting interested businesses to come forward and get involved. With the Government promoting and extending apprenticeship opportunities and many school-leavers looking for alternatives to higher education, this is a real chance for the automotive industry to invest in our own future and the future of the nation. n • To get involved and for more information please contact Louise Wallis on 01788 538336 or [email protected]

So just who is a vehicle’s “keeper”? A recent court case regarding preregistration raised serious issues for dealers about what constitutes “keeping” a vehicle. To makes things clearer Automotive Insight spoke to the DVLA to get their view. The DVLA told us: “Our position regarding the term ‘registered keeper’ is clear. A vehicle should be registered in the name of the person or company responsible for taxing the vehicle. They are then also liable for notifying DVLA when someone else takes on that responsibility. “We do of course recognise that there will be owners and users of vehicles. In many cases, the keeper, owner and user will be the same person. In other scenarios, for example with lease and rental vehicles, the relationship can be more complicated. However, we record keepers and the vehicle registration certificate (V5C) makes it clear that possession of the V5C does not prove ownership. “Immediately following the sale of a vehicle to a customer, the DVLA would normally expect to receive a notification of change of keeper. The appropriate boxes on the V5C should be completed and sent to the DVLA. The only time we would not expect to receive a

notification is if the customer was only the owner/user and responsibility for taxing had not changed.” The DVLA cites Section 31A of the Vehicle Excise and Registration Act 1994, which sets out the offence of being the registered keeper of an unlicensed vehicle. If a third party or third party company does not retain responsibility for ensuring the vehicle was taxed after it was sold, then there is a separate legal obligation placed upon them to provide DVLA with the details of the person who has taken on that responsibility. The issue over keepership was sparked by a recent court case which found an internet trading company at fault for selling cars it termed ‘preregistered’ to consumers. The internet company bought vehicles for consumers through a third party fleet company to take advantage of fleet discounts. When they sold the vehicles to consumers they delayed transferring the title to the customer. The Judge found that the true registered keeper at all material times was in reality the consumer, not the third party company. The Judge ruled that the registering of the vehicle, and the way it was done, was effectively a sham. The DVLA agrees with the Judge’s ruling. n

The DVLA has confirmed plans to close all its offices. Once the DVLA offices have shut as part of Government policy to streamline DVLA operations, all DVLA issues will be dealt with online or at a Post Office. The aim, said the DVLA, is to improve all the services it offers: “We are absolutely committed to delivering the best service we can. Our continued movement towards digital transactions, and the greater use of other organisations to deliver services on our behalf, will make it easier for motorists to deal with us in a way that suits them and also reduce the significant burdens on the motor industry and other stakeholders. “Central to our plans is the continued channel shift to digital services, either directly or through the use of intermediaries, of those transactions and services that are currently only available through a face-to-face channel. We will provide a greater choice of services to the motor industry which will mean that they can take the administrative burden currently associated with reams of paperwork away from motorists when buying and selling vehicles.” The DVLA is putting in place a raft of alternative ways to do business so that after the closures – as detailed below – business can carry on as normal: Automated First Registration and Licensing; As tax discs will be posted from Swansea and not held at dealerships, there will be less need for indemnity cover. New lower volume motorcycle dealers will be able to join the system without • Indemnity cover; If their turnover in transactions with the DVLA is less than £20,000 they will be able to set up a Direct Debit, with money collected every Friday and the DVLA waiving their £104 sign up fee. • Cherished Transfers; It is planned to move these to an online

system but it maybe that this online function cannot be delivered in one single transaction. This may mean putting the cherished number on retention one day and transferring it online to the new car the following day. • Tax without V5C; This will be done from Post Offices • Replacement Tax Discs; This will be possible at the 400 Crown Post Offices • Trade Plates; Plates and licences will be dispatched direct from Swansea. New applications will not require premises visits or interviews. • DVLA vehicle/bike Inspections; VOSA will select around 2,000 of its best performing MOT test stations, geographically spread to carry out physical vehicle or bike checks. Proposed Closure Plan This plan is subject to change. Staffing levels will be kept under review throughout the transformation period and the viability of each office will be reviewed on a regular basis. Proposed date for office closures March 2013: Area Enforcement Centres October 31st 2013: Aberdeen, Bournemouth, Brighton, Carlisle, Chelmsford, Edinburgh, Ipswich, Lincoln, Norwich, Oxford, Sheffield, Shrewsbury, Stockton, Swansea November 30th 2013: Bangor, Beverly, Chester, Dundee, Exeter, Inverness, Maidstone, Peterborough, Sidcup, Truro, Theale, Worcester December 31st 2013: Birmingham, Borehamwood, Bristol, Cardiff, Glasgow, Leeds, Manchester, Newcastle, Northampton, Nottingham, Portsmouth, Preston, Wimbledon. n


RMI | FEATURE

Tribunal Fees

The Ministry of Justice has published its response to the consultation on the costs to bring and continue claims in an employment tribunal.

T

he Government intends to introduce the two levels of fees in late 2013. Fees will be charged in two stages, the first at the issue of the claim, and the second prior to the hearing. The Government argues that fees can encourage parties to think through whether a formal claim needs to be lodged at a tribunal, or whether it can be settled informally via mediation or conciliation etc. The Government aims to ensure that tribunals ‘are used as the option of last resort to resolve employment disputes’. The remission system, which currently operates in the civil courts, will be extended to the employment tribunals, so that those on low incomes will be excused payment.

Tribunals will be given a discretionary power to order the losing party to pay any costs of the successful party incurred by way of fees. The review is intended to produce a single, simpler, remissions system for courts and tribunals which is more cost efficient and ensures that those who can afford to pay fees do so, while those who cannot remain able to access to the courts and tribunal system.

Two level fee structure Level 1 Claims are, in the main, ‘straightforward’ claims for defined sums, such as unauthorised deductions from wages and redundancy payments. Such claims would attract a


fee of £160 when the claim is issued and a further £230 at the hearing stage. Level 2 Claims cover more complex issues including unfair dismissal, discrimination and equal pay. Level 2 claims attract an issue fee of £250 and a hearing fee of £950. There is also a fee structure for multiple claims. Claims involving more than one and up to 10 claimants would be charged twice the applicable fee for a single claim; those involving 11-200 claimants would be charged four times the single fee; and those involving over 200 claimants six times the single fee. At the Employment Appeal Tribunal there would be an appeal fee of £400 and a hearing fee of £1,200. n

ADVERTORIAL | RMI

Dealers embrace new technology to drive higher online volumes of car and van sales in 2012, says epyx Volumes of used car and van sales from fleets to dealers through the 1link Disposal Network e-commerce platform has shown a significant increase this year –over 25%

e

pyx, the company behind 1link, said that the increase was thanks to a number of factors but the two key elements were an increasing realisation from dealers that online buying was a much more efficient way of acquiring used stock and that more fleets were making higher numbers of vehicles available through the platform. 1link Disposal Network has been the fastest growing platform so far in 2012 and many of the UK’s top leasing companies are now using it to dispose of relatively large quantities of cars and vans. This has helped to boost trading on the platform significantly in the last few months. What is also noticeable, however, is a shift in

behaviour on the part of dealers. More and more are realising that buying stock online is a more effective use of their time. Instead of sending out staff across the country in search of the right cars and vans through conventional channels, buying online is faster, easier and incurs lower costs. At a time when there is ongoing pressure to minimise overheads and to make used car and van retail operations as efficient as possible, the importance of this factor cannot be ignored. Adding to the convenience of buying online in recent months has been the 1link Disposal Network app. This tool – available free from the Apple Store – enables used vehicle trade buyers to access the e-commerce platform through their

iPhone or iPad, and has all the search and alert features of the full version of the platform. The iPhone and iPad app means that traders can access the platform and buy cars and vans from anywhere they can get a mobile phone or broadband signal. For busy traders on the move, this is a real advantage. Used by major fleets such as leasing companies to sell stock to used car and van dealers, 1link Disposal Network forms a component in the 1link cradleto-grave e-commerce vehicle life cycle which includes e-commerce platforms covering vehicle procurement, service and maintenance, taxation and rental. n


WESTMINSTER REVIEW: SEPTEMBER 2012

Party conferences

As the party conferences rolled into town the RMI’s Sue Robinson and Stuart James were on hand to make sure that we took the fight right to the heart of the country’s key political decision makers. Sue and Stuart both kicked off the conference season by attending the Liberal Democrat conference on 24 September and the Labour party conference on the 1 October, with plans also to attend the Conservative party conference in October. Throughout the conference season Sue Robinson and Stuart attended numerous meetings with one goal always in mind – to put across the concerns of the members and to discuss those issues affecting RMI members. They also attended a number of fringe events and meetings to discuss current policies and how they affect the motor industry.

Car Insurance The Minister for Transport made the following statement on car insurance; (a) The number of uninsured vehicles in Great Britain has fallen to 1.2 million from 1.4 million in 2010 due to a combination of police enforcement activity (better detection through automatic number plate recognition equipment and seizure of uninsured vehicles) as well as the continuous insurance enforcement scheme. (b) Since June 2011, action has been taken against those who keep a vehicle without insurance, known as the continuous insurance enforcement scheme. At 31 August 2012, 177,086 fixed penalty notices had been issued to registered keepers and 834 cases successfully prosecuted. (c) We are also working with the insurance industry to allow it access to DVLA driver details on penalty points and disqualifications to help tackle fraud. The Government is concerned that the rising cost of insurance may tempt motorists to drive without insurance and is working closely with the insurance industry on measures which will help reduce premiums. An industry summit was held on 2 May on the cost of insurance and follow-up work is in progress.

Electric Personal Vehicles The Government has no plans, at present, to review the requirements relating to Segway Personal Transporters and other personal electric vehicles (EPVs) for use on the highway. EPVs are mechanically propelled vehicles and as such must be approved, registered, taxed and insured before they can be used on the road. In addition the rider would need the appropriate driving licence.

Protection of Freedoms Act 2012 (Commencement No. 2) Order 2012 contains the commencement details for sections 54-56 and schedule 4 of the Act, which will come into force on 1 October in England.

Fuel Quality Directive Transposition The Fuel Quality Directive introduces the requirement for many transport fuel suppliers to reduce the greenhouse gas intensity of the fuels they supply by 6% in 2020. The Government will not impose on suppliers a greenhouse gas reduction obligation at this point. Instead, we will place an on-going legal duty on the Secretary of State to propose any further measures necessary to ensure delivery of the requirements of the Fuel Quality Directive. We will rely on the amended Renewable Transport Fuel Obligation (RTFO) Order 2007 to deliver the greenhouse gas savings necessary under the Fuel Quality Directive for the period up to 2014. We will also put in place a requirement for fuel suppliers to report on the greenhouse gas intensity of both the biofuel and fossil fuels they supply for use in land-based transport and for the associated uses listed in the Directive.

Biofuels The Government made the following statement on Biofuels in September. Biofuels supplied in the UK, as reported under the RTFO, are made from a number of different feedstocks including agricultural crops such as corn, wastes, residues, ligno-cellulosic and non-food cellulosic materials. Our policy is that the supply of biofuels in the UK has a role to play in reducing carbon emissions and encouraging economic growth, but biofuels must be genuinely sustainable. Amendments made to the RTFO in December 2011 to transpose the Renewable Energy Directive ensure only biofuels meeting mandatory sustainability criteria benefit from incentives under the RTFO. Those criteria include that biofuels, with some exceptions, must deliver greenhouse gas savings of at least 35 per cent when compared to fossil fuels and that biofuels must not be sourced from areas of high biodiversity, or from high carbon soils (eg rainforests or wetlands).

Motorcycles: Driving Tests The trials are expected to conclude in December 2012 of changes to module one of the motorcycle practical test. There will be a full public consultation, on any proposals for changing the current motorcycle test, in spring 2013.

EU Law Immobilisation of Vehicles After 1 October, it will be a criminal offence to clamp, tow, block in or otherwise immobilise a vehicle without lawful authority. The maximum penalty for the new offence will be an unlimited fine on conviction in the Crown court; or a fine of up to the statutory maximum (currently £5,000) in the Magistrates court. Section 54 of the Protection of Freedoms Act 2012, which gained Royal Assent on 1 May 2012, contains provisions which will make it an offence to clamp, tow, block in or otherwise immobilise a vehicle without lawful authority if the intention is to prevent the motorist from removing that vehicle. The

The Government stated that is committed to addressing the overall burden on business of EU regulation. It has formed an alliance of like-minded member states on EU better regulation, and succeeded in ensuring that the EU Compact for Jobs and Growth adopted by the European Council in June explicitly highlights the need to reduce the overall EU regulatory burden. It is now pressing the European Commission to bring forward a new programme to reduce unnecessary costs to business by addressing the overall EU regulatory burden, when the current EU administrative burdens reduction exercise comes to an end at the end of the year.


The UK Government secured a commitment from the Commission last November that micro-businesses will be exempt from future EU legislation unless there are compelling reasons to include them. In parallel, the Commission has also committed to examine existing and forthcoming EU legislation for further opportunities to lighten the burden on small businesses. The Government will hold the Commission to account on these commitments, and have already achieved agreement in Brussels to exempt up to 1.4 million UK small businesses from certain EU accounting rules. It will also continue to press all the EU institutions to live up to their commitments to reduce burdens on business, and following UK lobbying, the European Parliament has created a unit to assess the costs and benefits of the amendments it makes to Commission proposals.

Motorcycles: Young People The Third Directive on Driving Licences (2006/126/EC) was adopted in 2006 and comes fully into effect on 19 January 2013. The Directive introduces new categories for motorcycles which will apply from 19 January 2013. There are new categories for mopeds, and small, medium and unlimited size motorbikes—Categories AM, A1, A2 and A respectively. Under the provisions a rider can progress from a smaller to a larger bike: Through stages (“staged access”) for example at age 17 with entitlement to Category A1 gaining two years’ experience and then applying for Category A2), gaining a further two years’ experience at Category A2 and then applying for Category A (unrestricted access to any size bike). Through “direct access”—that is waiting until they meet the minimum age for a specific category. Through this route, direct access to Category A riders must be at least age 24. Or a combination of both.

Tyres The Government has stated that it currently has no plans to change the UK minimum tyre tread depth to 3 mm. The current level of 1.6 mm for car tyres aligns with the harmonised minimum requirements under EU legislation (directive 89/459/EC).

Excise Duties: Fuels The EU unanimously agreed at the end of 2011 that the UK could put in place a rural fuel duty rebate pilot scheme for remote islands. Pump prices in these areas are particularly high when compared with the mainland because of the high costs of transporting and distributing fuel. Beyond this pilot scheme which the Government will continue to monitor, nothing has been ruled in or out.

Motor Vehicles: Insurance The Driver and Vehicle Licensing Agency is planning to issue a public consultation on the proposal to separate the annual insurance check from the annual vehicle tax process. An initial impact assessment has been prepared and will accompany the consultation. n


RMI | FOCUS Top tip for every garage - get the right, quality, Majorlift tool for the job Times are tough for everyone and the temptation is always to take short cuts. While this is surely understandable in a difficult economic climate, one rule has always applied when it comes to garages and MOT dealerships – get the right tool for the job. Anything else will almost certainly mean that, while there may be short-term gains, there will also be big bills to pay in the long run. Garages that invest in the right equipment are always going to be better placed survive a downturn than those that struggle on with out-dated and possibly dangerous gear. No company takes safety in the workplace more seriously than Majorlift Hydraulic Equipment Ltd., based in Wickwar, Gloucestershire. Their reputation as world-wide leaders in the field is based on producing quality, reliable, tools that will take on any job, large or small, and complete the task efficiently. Spokesman Mike Selby said: “ We are proud to be a British company that knows the vehicle repair and maintenance industries inside out. We are experts in our field and we excel at designing and inventing machinery that will not only do the task expected of it today, but will continue to work efficiently for many years to come. “Firms that invest in our equipment know they have bought a quality product that will

continue to perform well, long after other, less robust, tools have come and gone.” Majorlift, who have been in business since the mid-seventies, are the UK’s leading manufacturer of hydraulic powered garage equipment. They can offer the right tool for the job from their large range, catering to the needs of everyone from the modest, family-run MOT station to commercial vehicle, haulage and bus industries. A core product is the jacking beam, with a lifting capacity from two tonnes up to 40 tonnes. There are options for manual or air over hydraulic operation. Both the 2 tonne and 2.8 tonne beams conform to VOSA specifications, and like all Majorlift products, they incorporate many safety features. “Safety for staff in the workplace has always been, and will continue to be, our number one priority, “ added Mike. He is right to be concerned. Recent figures show that back problems alone account for 119 million days lost to British industry every year, with 1.2 million workers suffering from back related problems.

Garages take their share of that toll and anything that can be done to relieve the strain of workers dealing with heavy weights has to be a benefit to everyone, saving the company hard cash while taking care of valuable staff. Reliability is the next major concern for the industry, and here again Majorlift are confident they can deliver. Mike Selby said: “We know our equipment is the best. We manufacture 95% of our products at our high-tech factory in rural Gloucestershire. We have a BS EN ISO 9001 2000 Quality Rating, which allows us to offer a five-year warranty on all of our products, providing of course that they have been properly serviced every three years to comply with Health and Safety regulations. “We are the UK and Ireland distributors for the Compac range of jacks and we also offer an extensive range of accessories to suit Majorlift, and also other makes, of jacking beam. A look at our website www. Majorlift.com will give customers an idea of our range. Whatever they want, they can be sure we can supply it.” n

The lift is the workhorse of the workshop! ‘Trade Garage Equipment’ is the premier garage equipment specialist in the UK and Main UK Distributors for Rotary Lift, the world’s leading manufacturer. Ian Gott spokesmen on lifting products, explains features and benefits of each type to help you choose the lifts best suited to your requirements.

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he lift is the ‘workhorse of the workshop’ and above all it should be chosen for quality, reliability and safety, always make sure the lift is CE approved, it’s your guarantee it meets design and safety standards. Always ensure the company you buy from has a good and experienced reputation and most importantly is able to provide ongoing local technical service support, a lift out of action can be very costly and disrupt the whole workshop activity! There are a wide range of lifts including 2 and 4 post lifts, scissor lifts and in-ground lifts. All of these lifts are adaptable and come with a variety of options and variants, like the Rotary Electro-Hydraulic SPO two post lifts, which range from 3.0 to 6.5 tonnes, approved by most vehicle manufactures, they can be tailored to fit any application by selection of load capacity and column height and there are also manual and electronic controller versions available. All models feature three stage arms, each lifting column features a maintenance free high pressure cylinder, whilst the non load bearing cables

ensure even lifting and lowering. Rotary lifts are legendary for their extremely long life and very low cost of ownership. Rotary electro-hydraulic 4 post lifts are available in several versions and can be tailored to fit the application. Modular construction facilitates unlimited possibilities of expanding and upgrading the lift. There are versions for both MOT and wheel alignment use; the alignment models also have rear slip plates. All Rotary 4 post lifts are equipped with a pneumatically lockable drop-off facility; this guarantees exact axle measuring and a


high degree of safety in the workplace. The range of Rotary Scissor lifts has now augmented with the NEW Trademaster 3-5 tonne scissor lifts which have been specifically selected to provide a wide range of choices for Class IV, VII and V MOT installations. Engineered to a high standard they include integrated electro-hydraulic play detection equipment and separate turn plates. The absence of any cross beams allows the technician free access along the whole length of the lift. Rotary In-ground lifts offer the best attributes for vehicle lifting equipment, minimum width work bays, maximum possible under vehicle access. The Rotary SL range of twin ram in-ground lift are available in 3.5 and 5 tonne models with wheel support, jacking point or sill contact options to meet virtually all service requirements. All lift variations are in our ‘Buyers Guide’ which is FOC. n Trade Garage Equipment Limited T: 01509 506680 E: [email protected], W: www.tradegargaeequipment.co.uk


RMI | FOCUS

Liftmaster – whatever you need, whenever you need it Liftmaster is going from strength to strength as the company expands, extending its operation and increasing its production with more and better products to meet the growing demand for its range of vehicle lifts and MOT equipment.

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recent exploration of the German market has opened new avenues for the company abroad, while extra warehousing at home makes it ever more likely that Liftmaster will have whatever the client wants, whenever they need it. Their commercial equipment division, Liftmaster Commercial Equipment Ltd, is also celebrating their success in being awarded a hugely lucrative contract for a new container workshop using their extremely specialised under floor lifts. Spokesman Tony Strudwick said: “These are very exciting times for the company. Our recent visit to Germany was a highlight, resulting in even closer collaboration between us and our European colleagues. “We are already expanding in this country, with extra warehouse capacity newly available at Alton in Hampshire. It means we will be able to stock even more vehicle lifts and MOT equipment. “As a company we are always looking to the future, making sure that we can respond to customers’ needs. We pride ourselves on being able

to offer this new equipment and also on our ability to provide the service engineers, and service support advice, that is essential if everything is to go smoothly. Our customers’ satisfaction is always our first priority.” As well as warehouses in Hampshire, Liftmaster also has a fabrication workshop, hydraulic jack repair and air tool repair facilities with contracts from major bus garages for service and calibration. Liftmaster Commercial Equipment Ltd also boasts a new commercial brake tester that is one of the very few approved by VOSA for ATF commercial vehicle testing. Mr Strudwick added: “The new range of commercial mobile column lifts have the very latest wireless technology controls. Liftmaster Commercial has also just been awarded a very large contract for a new container workshop for very special commercial under floor lifts.” All of this makes Liftmaster a very attractive deal for any firm needing to install new equipment to compete in the modern marketplace. Businesses which fail to update could find themselves lagging behind as


the important contracts go elsewhere. Yet Liftmaster is aware that in these tough times an attractive package will make all the difference. They have a new scrappage offer, where they will remove any old two or four post lift – up to a maximum weight of five tonnes and length of six metres - absolutely free of charge, provided the removal is done on the same day as a new lift is installed. Tony Strudwick said: “We support our full product range, we can service and repair most vehicle lifts and we also offer extended warranty and service contracts. We try very hard to do the best we can do. Very few companies offer everything that we can offer, so we are naturally very optimistic and enthusiastic about the future. We are expanding our range of vehicle lifts after talking to our suppliers in Germany and all of that has meant that we have a very positive outlook. Liftmaster has a reputation for offering our customers good value and robust equipment along with the best possible service.” n


RMI | FEATURE

TV HEADLINERS to star at RMI Dinner

The best of Britain’s comedians and the most pungent of political commentators will be the star turns at this month’s RMI Annual Dinner.

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he potent mix of laugh-out loud funnyman Rory Bremner and high flying political commentator Andrew Neil promise to make this one of the most vibrant and talked-about RMI dinners for years. Rory Bremner made his name as a TV impressionist and comedian but is also renowned

for his outspoken political views and biting social comment. While former Sunday Times editor Andrew Neil has also hosted a string of interview, talk and political shows, and his no-punches pulled questioning is feared across Westminster. As well as the two star guests, the annual dinner also promises members and guests a


fabulous evening of great food and wine, unrivalled entertainment and the perfect opportunity to meet old friends and renew acquaintances. It is not too late to book either. Opposite you will find a booking form with everything you need to make sure you do not miss what is sure to be an unforgettable night. n

Annual Dinner 2012

Thursday 18 October The Dorchester Hotel, London Platinum Sponsor

Gold Sponsors

Dress: Black tie OCTOBER/NOVEMBER ‘12 • WWW.RMIF.CO.UK • AUTOMOTIVE INSIGHT • 17

RMI Annual Dinner 2012

Your RMI Contact: Rebecca Lynn • Tel: 0207 307 3580 • Fax: 0207 307 3406 201 Great Portland Street, London, W1W 5AB Email: [email protected] • www.rmi.co.uk Please note that only written cancellations received prior to Friday 28 September 2012 will be refunded and will be subject to a £25 + VAT administration charge per booking

For Sponsorship Packages contact Suzie Scott on 01905 727 907 or email [email protected]




UPDATES | IGA

IGA technical training programme and electric vehicles. Commendations from RMI members included: • “I found the free Technical Training exceptionally useful as there were many aspects of repairing the vehicles that I was not previously aware of.” • “I view this training as vital to my business. The health and safety aspect of servicing and repairing hybrid and electric vehicles is integral and my knowledge of this type of vehicle has increased 100%.” • “I would recommend this service to any technician. With more electric vehicles on the roads garages need to be prepared to safely work on them.”

IGA

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Technical training on a roll

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IGA website boosts member business

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The taxman is coming

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Simmo’s Solutions – Lee finds the answers

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Quality batteries packing a punch

Useful Contacts Stuart James IGA Director Tel: 07528 977 167 [email protected]

Members are delighted with the new IGA on-site technical training programme which has just been launched. The programme brings cutting edge training to your workshop and your staff to minimise downtime and offers the very best in training, while ensuring no work hours are lost in travel. IGA Director Stuart James said: “The launch of the scheme has been an unprecedented success. This is the first of its kind, a unique service and an innovative member benefit, and we are delighted that it has received extremely positive reviews from its first users. “Crucially, those garages that have undertaken the training report very positively on the importance and relevance of the training. “It is delivered on the garage’s own site, and the scheme entitles up to three technicians to half a day’s training. The training is at no cost to the members as the fees will be absorbed by the IGA.” With IGA members busy signing up to the scheme there has been heaps of praise and plaudits from those who have already taken part. Stuart added: “We are delighted with the response we have had to the training. It was designed to be of great use to our members without causing any disruption to their business. It is clear that we delivered exactly that.” The first training sessions focused on the servicing and repairing of hybrid

The initial programme is just part of a continuing and growing IGA training package said Stuart: “In addition to our on-site training scheme the IGA, in association with Autonomy Multimedia Ltd, are now offering its members access to a new e-learning programme for all those interested in electric and hybrid vehicles. “The programme aims to answer some of the questions often asked by people new to the subject and who are looking to find out more. It will be of value to anyone interested in taking their first step into learning how these vehicles work and the reasons why an increasing number of manufacturers are introducing the technologies.” n • For more information please email [email protected] and [email protected]


IGA | UPDATES

IGA website will boost Dealer report good member business news for IGA members With the IGA consumer-facing website project up and running, members can now look forward to busier workshops as motorists find it even easier to find the nearest IGA member garage to their home or their office. Despite the amazing growth of websites and the internet, with consumers using the internet to shop online, buy books, reserve holidays and sort out their bank accounts, research by the IGA found that thousands of garages are still not making their most of their website – and some don’t have one at all! Making effective, efficient use of your website as an up-to-date way of promoting your business is vital in an age where everyone shops online and even the paper phone directory is becoming a thing of the past. IGA Director Stuart James said: “By offering our members a website we are helping to bring additional business into their workshops and are also giving them the chance to market their garage to the modern consumer.” To help those IGA members who do not have a website at the moment for their business, and to help them become part of our increasingly web-focused society, the IGA is providing this as an additional member benefit.

The offer means that members will get a website built for them which will carry all the details they want to include regarding services offered and specialities, as well as contact details. The only additional cost they will incur will be minimal and covers the hosting of the site and for the purchase of the address which they will own. Stuart said: “All this will still cost less than placing an advert in the local press and will raise the profile of their garage and of their business substantially. “The IGA is committed to ensuring that all its members are able to take full advantage of internet marketing. This is why we made the decision to offer this new scheme. We can now ensure that members have the tools to promote their businesses to the best of their ability.” n

Customers need peace of mind Used car buyers, more than ever, are looking for “safe choices that will not be the cause of unexpected bills”. The RAC reports that, in the current uncertain economic climate and with prices rising, motorists say they are frequently unpleasantly surprised at the gap between what they would like and what they can afford. As a result, says the RAC, dealers need to present used cars as “highly credible”. Ian Simpson, sales and marketing director at RAC Warranty, said: “Dealers need to judge the customer mindset carefully.

“Used car buyers are finding themselves spending more than they would like at a time when they feel vulnerable from an economic point of view. “People are worried about their jobs, their income and the way in which savings are being eroded. They want cars that appear trustworthy and are unlikely to create trouble. “Therefore, stock should be well presented, clearly cared for, have a good history and be supported by warranties and other financial safety net products.” n


A shocking report on used car sales highlighting rogue traders comes as a huge boost to IGA members who focus on a professional, transparent and trustworthy approach and who build long-term relationships with their customers. The latest report from the Citizens Advice Bureau (CAB) found that complaints about used cars bought from an independent dealer were the most pressing concerns for consumers, ahead of complaints over cowboy builders. Concerns over used cars sold by a franchised dealer came tenth on the CAB list. In response to the CAB report IGA Director Stuart James told newspapers, TV and radio: “The CAB announcement highlights the importance of buying used cars from a reputable and approved used car garage. “We at the IGA of course acknowledge the high levels of consumer complaints that have been made to the CAB. However, the IGA ensures that all of its members adhere to a strict code of practice backed by an arbitration and conciliation service for consumers. Trust My Garage “In addition, the IGA consumer garage finder Trust My Garage lists all member sites which have undergone a rigorous audit. As a trade body we are confident of their quality standards and offer ‘a consumer reassurance scheme’ up to a value of £1,000, should a complaint be justified.”

“Our IGA members take great pride in their professionalism and their commitment to customer service. Backed by the Trust My Garage consumer reassurance scheme, the only one of its kind on the market, our members can offer their customers a unique, peace-of-mind service, whether they are buying a new car or having their current car serviced, repaired or MOT’d.” The CAB reported that between April and June this year there were more than 12,000 complaints about second-hand cars bought from independent dealers. There were three times as many complaints about independent dealer purchases as there were about used cars bought from private sellers and franchised dealerships. Two-thirds of the complaints about independent used car dealers were about the car being faulty and one in 10 revolved around salespeople giving misleading information about the vehicle. Top Ten Consumer Complaints: 1. Used cars bought from an independent dealer 2. Problems with upholstered furniture 3. Mobile phone contracts 4. Repairs from an independent garage 5. Problems with women’s clothing 6. Mobile phone handsets 7. Building work 8. Troublesome TVs 9. Lap-tops, notebooks and tablet PCs 10. Second hand cars bought from a franchise dealer. n

UPDATES | IGA

The taxman is coming – to a garage near you IGA members have been warned that the taxman has launched a new campaign targeting those working in the motor trade. The HMRC admits that the main focus of attention for this latest Taskforce will be the independent used car sector and large cash transactions are certain to attract their attention. Franchised garages will be for the most part exempt from the attentions of the Taskforce as they are the responsibility of the HMRC’s Large Business Service. Now the IGA’s Stuart James is telling members that “fore-warned is fore-armed” and said: “Of course we do not in any way condone individuals or businesses evading the payment of tax which they legitimately owe. “At the same time however, we know full well that campaigns such as this one can cause huge worry among members who do their very best to abide by the rules and the law. “We would advise any members who are worried to talk to their own accountants just to make sure that everything is above board and that all the tax they owe, they have paid.” The new HM Revenue & Customs (HMRC)

Taskforce has been set up specifically to target alleged tax dodgers in the motor trade in South Wales, South West, Yorkshire, Nottinghamshire and the North East, and their goal is to recover more than £22million. Taskforces are specialist teams that undertake intensive bursts of activity in specific trade sectors and locations in the UK. The teams will visit traders to examine their records and carry out other investigations. The Exchequer Secretary to the Treasury, David Gauke, said: “At a time when we are trying to rebalance the public finances and most hardworking people are making a contribution by paying the right tax, it is just not fair that a small minority try to dodge their responsibilities. “These new taskforces are funded by the Government’s investment in HMRC of over £900million to crack down on avoidance and evasion. Their dedicated teams are on track to collect more than £50million from tax avoiders and evaders through the taskforces launched last year.” HMRC’s Mike Eland, Director General Enforcement and Compliance, said: “Everyone

needs to pay the taxes they owe in full – these new taskforces will help us crack down on the minority who have chosen to break the rules. If you have paid all your taxes you have nothing to worry about. But deliberately evading tax you should be paying can land you with not only a heavy fine but possibly a criminal prosecution as well. “This is not an empty threat - HMRC can and will track you down if you choose to break the rules.” HMRC launched a dozen taskforces in 2011/12 and 30 more will be launched over the next 12 months. The HMRC taskforces are specialist teams which it said would undertake “intensive bursts of activity” in specific “high risk trade sectors” in the UK. The teams, made up of tax inspectors with specialist VAT and PAYE knowledge, will visit traders to examine their records and carry out other investigations. The initiative follows a successful campaign last year which targeted London’s fast food sector and which recovered more than £10million. During that campaign businesses targeted were found to owe an average £190,000 in tax. n


IGA | FOCUS UPDATES

Simmo’s Solutions

Well here we are with the second edition of Simmo’s Solutions; we hope the first set of Q&A’s was useful. I’ve been busy delivering our Safety & Awareness of Hybrid & Electric Vehicle training courses which are proving very popular so if you would like me to come and visit your garage, contact our helpline on 0845 305 4230 or email [email protected]. A few of you have e mailed with questions but I’m sure there are a lot more subjects we can cover so don’t forget to send me your questions or problems at [email protected]. In the meantime, here are some more common problems encountered by technicians in the independent sector. Engine idle fault CAR: Renault petrol PROBLEM: Rising engine idle. I think this high engine idle seems to be a common issue on some Renaults. The issue appears to be linked with petrol engine vehicles whereby they start up and idle OK initially but then the idle speed gradually rises to 1500 – 1700 RPM with no codes stored. SOLUTION: I have had feedback in the past on this issue and it was found to be a charge system fault, however in this instance the caller who had rung us was adamant that the charging was OK at 14 to 14.5 volts. When I asked the member calling us to verify the charge current, he could not do so and I advised that when we had discussed this problem with other members, they had reported that if the charge current is low, the engine management system can be affected. In this case the caller disconnected the multi plug from the alternator and found that the problem went away. I suggested that he verify the cleanliness of the connections and so on, including male live and earth lines and to check them for any volt drop. TIP: When carrying out diagnostics, consider that a fault code will only point you in the direction of a circuit that has shown readings/signals outside the range expected. The fault code does not necessarily indicate a component fault. We strongly recommend that the full wiring

between components and control units be checked for continuity and load capability prior to replacing any component. Again we get calls from repairers who have replaced components based on indicated fault codes only to find the problem and code is still there. When asked where the control unit is located, they often have no idea! This confirms that wiring checks have not been undertaken.

VAG PD Engine poor Hot start

CAR: 1.9 TDI PROBLEM: This is a common problem and there seems to be no dealer repair. This version of the 1.9 TDI has a “feature” in the ECU mapping. This feature can also be found on some VW 1.9 TDI versions. When restarting, if the ECU senses that engine is hot, then it requires that engine is turning over at more than 270 rpm before it will inject diesel and, in turn, start the vehicle. However, after a few years in use, the battery, or more likely starter motor, get a bit tired and worn and cannot quite achieve the required starter motor turnover speed. The result is that no diesel gets injected and the car does not start. The problem rapidly gets worse once it starts because of increased cranking.

CAR: Mercedes 2005/6 PROBLEM: Mercedes 2005/6 model C class petrol Kompressors are reported to be suffering from extended periods of cranking to start when hot. In both reported cases the cars were fine from cold, but if left standing for five to 10 minutes whilst up to temperature, they were cranking for some time before they fired up. One sounded to be worse than the other, cranking several times before starting. There were no other faults reported and no codes stored.

SOLUTION: Potential solutions are to replace starter and/or battery but these can be expensive options. There is no firmware fix from SEAT. There is a simple work-around called the “Hamman mod” and this usually works well. A 12v relay is used to insert a 2000 ohms resistor in series with the coolant sensor but only whenever the starter motor is running. This fools the car into thinking it is cooler just while it starts. For more detailed information Google search “Hamman mod tdi warm start”. Drive the relay coil with two wires, one from Ground and one from the starter motor with the 12v signal from the start solenoid. That way the relay switches whenever the starter motor is running. The coolant sensor is on right-hand side of engine, near the back bulkhead. You can cut into the loom about 5 cms back from the sensor connector. Access for this is much easier if air filter and large filter holder frame are removed. Be aware that the frame pulls up via a push fix grommet.

SOLUTION: Apparently the filter has some sort of non-return valve in it and there are reports on the net about cheap aftermarket filters not having a valve in them or of having a poor quality valve in them. In the case of the two problems we were called about, one member fitted a Mercedes filter (costing just over £70) and the second member fitted an OE specification Mahle filter. In both cases the vehicles were reported to be fine after replacing the filters!

TIP: I am not endorsing that you cut into your wiring loom. I was apprehensive about cutting into mine. However, it is only a simple cut just beside a socket connector on one wire and for me this solution worked well and there was no more embarrassing cranking. It is possible that glow plugs may occasionally be activated (due to engine being fooled into “thinking” that it is colder than it really is) but this should not be a major issue. n

Extended cranking when hot


FEATURE | IGA


IGA | FEATURE

SELL PREMIUM QUALITY BATTERIES They cost less than a tank of fuel

Always supply and fit the best battery you can. Budget batteries are fine for older cars without any of the electrical gadgets that drain batteries of power, but there are far fewer cars like that on our roads today.

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Budget Batteries – No Longer The Answer

ost outlets selling and fitting batteries over the last 15 years would never consider recommending a low AH budget battery for a top of the range Porsche, BMW, or Mercedes. This is because these vehicles are packed with power-consuming luxury specifications and so require a high performance, OE quality replacement battery. Today however it is not just luxury marque cars and top-of-the range vehicles that are loaded with power-draining extras such as electrically operated windows, central locking, intruder alarms, Sat Nav, and onboard computers. Such items are just not considered to be luxuries and are fitted by most car manufacturers even on their smaller models. A modern day Skoda, Fabia or Fiat 500 has as many, if not more, high power consumers than a 2001 BMW. However, because they are small cars, many are still being fitted with inadequate, low AH budget batteries as replacements.

The days when budget batteries automatically offered a viable alternative to more expensive, longer life batteries are past. To deal with increased power demands, battery makers have developed advanced performance technology. Typical are the Banner Power Bull and Power Bull PROfessional calcium and calcium technology batteries now being fitted by leading car manufacturers. Progressive legislation and ever stricter limits imposed on emissions have lead to further innovations typified by Stop/ Start systems. To cope with this advancing technology huge demands have been made on battery manufacturers, and they have responded to the challenge with high tech products such as the Banner Running Bull AGM and EFB stop/start ranges. Sadly, reports of Stop/Start system failure almost inevitably turn out to be the result of incorrect replacement battery choice. The problem seems to be that motorists - and the replacement market in general - have not yet realised that batteries are now a critical component of today’s high specification vehicles.

Avoiding Unhappy Customers Low AH leads to deeper discharge which cannot cope with the higher power demands of modern vehicles. These budget batteries go flat more often, especially on low mileage cars, leading to lasting battery damage, warranty disputes and disgruntled customers. Always remember that cars that only make short journeys – say three or four miles to work and back every day, or just local shopping trips - need high specification batteries. This is because the alternator does not have time to do its work. On top of which, in extremes of temperature, whether hot or cold, there is additional demand on the battery. The Air Con is on with the heater blowing hot or cold. If it is its raining the wipers are on, as are the demisters, and in winter the headlights

get used a lot more. All of this equipment places a huge strain on vehicle batteries. The motorist always wants value for money but also wants their vehicle to start on demand. To drivers who say “My car is only worth £500 so I need cheap parts”, the correct reply is: “Like fuel, the car cannot function without a battery and it costs less than a tank of fuel to buy a good battery!” No motorist really expects to buy petrol or diesel for half price just because their car is not worth much! The same applies to batteries.


A Growth Area For The Auto Trade Correct fitting is also essential. Fewer motorists want to fit their own battery as it is no longer always a simple procedure. All of these factors make this a potential growth area for trade businesses. • Need advice on battery replacement? Contact Banner Batteries (GB) Tel: 01889 571100 and visit www. bannerbatteries.com

Banner IS THE RELIABLE PARTNER OF LEADING AUTO MOTIVE MANUFACTURERS.




NFDA | UPDATES

NFDA Ball - still time to book

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NFDA Ball – still time to book

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We need YOUR views

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NFDA Used Car Standard

The NFDA Ball, the first ever, is now just around the corner and as excitement grows it is still not too late to book your place. As well as offering great fun, fabulous food and wine and a stunning occasion, the key guest speaker Phillip Brady, President of NADA USA, will give a hugely valuable insight into the industry on the other side of the Atlantic. The Ball will take place at the 5 star Celtic Manor Resort, Newport, South Wales on Saturday 13 October 2012 and will be ‘Celebrating Automotive Excellence’. Looking forward to the event, Sue Robinson, NFDA Director says: “‘Your NFDA Autumn Ball gives you the opportunity to network with your fellow franchised dealers and enjoy an evening of fun,

Dealer survey – all the results

Useful Contacts Sue Robinson - NFDA Tel: 0207 307 3424 [email protected] Louise Woods - NFDA Tel: 01788 538 332 [email protected] Stephen Latham - CV/MRA/NFDA Tel: 07515 975157 [email protected]

• For more information and to book, call Louise Woods on 01788 538332 or email [email protected]

NFDA Dates for your diary NFDA Midland Dealer Forum Tuesday 4 December, Hilton Hotel, Northampton NFDA South West Dealer Forum Thursday 29 November, Holiday Inn, Filton, Bristol NFDA Northern Dealer Forum Thursday 6 December, De Vere Daresbury Park, Warrington NFDA Southern Dealer Forum

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great entertainment, fine wine and good food. Phillip Brady will open the welcome session on Saturday morning where he will provide fellow attendees with an insight into the running of NADA and how it represents its members. “The first NFDA Awards Ceremony will take place at the Ball which will be an opportunity to celebrate what is great about our sector. “The NFDA hopes that as many of our members as possible will join us for what we know will be an enjoyable and successful occasion for all our members.” n

Thursday 13 December, Hilton Hotel, Cobham NFDA Autumn Ball Saturday 13 October, Celtic Manor Resort, Newport, South Wales RMI Annual Dinner Thursday 18 October, The Dorchester, London NADA Convention & Exposition 8-11 February 2013, Orlando, Florida. n

NFDA trip to NADA Orlando – too good to miss The NFDA is organising a dealer trip to the NADA Convention and Exposition 7-12 February 2013. The package offers fabulous value for money and the unrivalled opportunity to gain priceless business insights. The package, priced at £2,300 (plus VAT) includes: • NADA Convention registration • Visit to a large dealership with a guided tour around all aspects of the business • Economy return direct flights from London Gatwick on Virgin Atlantic or British Airways (upgrades available) • Five nights accommodation at the 5 star Loews Portofino Bay Hotel • Airport transfers and all


transport in Orlando • Two evening meals at a top quality restaurant • Invitations to NADA private receptions and Italian International reception For more information and if you are interested in joining the NFDA trip, please contact Louise Woods on 01788 538332 or email [email protected]. n

UPDATES | NFDA

We need your views Brand loyalty offers sales opportunities

The NFDA will be responding to two Government consultations and we need the views of our members to make sure your voice is heard where it matters most. The Department for Business, Innovation and Skills (BIS) has launched a consultation on enhancing consumer confidence by clarifying consumer law. These proposals are intended to create a simple and modern framework of consumer law written in plain language that consumers and businesses can confidently use for themselves. They form part of a package of measures

• Help make consumers fully aware of all the costs they are committing to and the implications of any contract

to simplify consumer law. The proposals have two aims. The first aim is to increase growth, by reducing the burden on business of over-complex and unclear law and increasing consumer confidence. The second aim is to promote fairness, by enabling consumers to understand and assert their rights when they buy substandard goods, services or digital content. For more information visit www.bis.gov.uk/Consultations

consumer buys goods or services away from the trader’s premises

Views needed (part two) BIS has also launched a consultation on the Consumer Rights Directive which covers new measures to deliver greater clarity and transparency on consumer rights. Again the NFDA will be responding and again we need your views or comments. The Directive aims to: • Ensure consumers have the information and time they need to make good decisions

• Ensure that traders who treat consumers fairly are not disadvantaged by those who use less transparent practices to lure consumers to less competitive offers. The Consumer Rights Directive contains provisions on: • Information to be given before a consumer buys goods or services on the trader’s premises • Information to be given before a

• Cancellation rights and responsibilities where the consumer buys goods or services away from the trader’s premises or at a distance • Delivery times for goods, clarifying what deadlines for delivery should be and where responsibilities lie if there is a problem • Post-contract customer helplines, where existing customers must be charged no more than the basic rate for phone calls • Additional payments (on top of the main price of a purchase) which would need to have active or express consent of the consumer eg pre-ticked boxes which the consumer must ‘untick’ will no longer be allowed. n • For more information visit www.bis.gov.uk/topstories

A survey of UK drivers shows that motorists are most loyal to the MINI brand with 62% of owners reporting they expect to replace their current MINI with another car of the same brand. BMW came second with 59% allegiance, followed by Audi at 36%. Overall though, Motors.co.uk shows that fewer than 34% of owners intend to remain loyal to their existing brand for their next car purchase with 24% saying their next car will be the

same brand they first owned. Dermot Kelleher, head of marketing at Motors.co.uk, commented: “This figure is baffling. It either means that drivers are genuinely harking back to their ‘first love’, or simply admitting that the ‘grass was not greener’, and reverting back to a brand they know and trust. “Dealers with reliable databases might consider campaigns based on the ‘come back home’ theme to harness this trend.” n

Online leads set dealers and manufacturers at odds Tension between dealers and manufacturers is undermining the following up and reporting of digital sales leads. As a result dealerships are missing “huge” opportunities to sell. Terry Hogan, managing director of Motoring.co.uk, says: “On most occasions it is the salesperson on the shop floor that dictates the final outcome of any lead. Our research shows less than 50% of leads are being followed up and so the lost opportunity is huge. “A good way to illustrate the tension between manufacturers and dealers is to consider the fact that if a salesperson makes more profit on a nearly new car, he or she will sell that car, especially if it is sat in stock in front of them. “However, the dealer will often

not report this sale back to the manufacturer, as they now have ‘full’ ownership of that consumer and of a long and profitable relationship.” Hogan says there are two parts to the problem: the ability – or lack of it - to report back to the manufacturer on the outcome of an enquiry, and the willingness – or lack of it - to report.” With more margin available in used cars compared to new, and “full” ownership of consumer data, typical dealer groups will look at used cars and aftersales, rather than the new car retail arm. Hogan said: “The new car franchise is often seen by some groups as an enabler; a rubber stamp of quality that drives consumers to a particular product or location.” n

New car market remains stable Summer saw new car sales stable with the market increasing 3.3% year-to-date. NFDA Director Sue Robinson said: “It is encouraging that the new car market remained stable in what are traditionally low

volume months for car sales.” “We anticipate consumers returning to the showrooms in the autumn with consumers showing interest in value for money, easy to maintain and fuel efficient vehicles.” n


NFDA | UPDATES

Get online for the DAB radio change The switch to digital broadcasting from FM gives franchised dealers the opportunity to get online through a new initiative and offer customers the chance to fit authorised DAB radio units and conversion kits to FM-fitted cars. The NFDA is calling for dealers to take part to maximise this opportunity. Digital Radio UK, the Government authority, is building a database of in-vehicle DAB retailers and plans to build a webpage. On the webpage, motorists will be able to enter a postcode and find their nearest digital radio in-vehicle fitter or retailer. This should help drive consumers to franchised dealers who are in-vehicle digital radio installers and retailers. To create this database we need your help and would like the following information from our members: • Franchised Dealer name • Website

• Postal address (including postcode) • Phone number • Do you sell digital radio – yes/no • Do you fit digital radio and or conversion kits – yes/no We are keen to complete this database in the next few weeks so please e-mail your details to [email protected] The countdown is well on track to the end of car radio as we know it. By 2015 all FM radio broadcasts will switch over to digital under Government plans. Most older cars use FM and while today many brand new cars are sold with the DAB option, tens of thousands still come equipped with FM radio units. This means quite a few of your customers will need their current car converting or they will be unable to receive a radio signal in their vehicle. Most manufacturers are making available DAB radio units and conversion kits for this and there are already a few generic conversion kits on the market. n

FAQ guidance from the European Commission The European Commission recently published its Frequently Asked Questions (FAQ) guidance on the application of competition and new block exemption rules to the automotive sector. In this article the NFDA’s retained competition lawyer, Miles Trower of TLT Solicitors, analyses some of the implications for our industry: The recent FAQs fail to address some of the pressing competition issues affecting the sector, but it’s not all bad news. Upon closer inspection, the FAQs suggest certain opportunities for manufacturers to help their authorised networks absorb more after-sales work (particularly in the context of certain products, such as PCPs) while underlining the Commission’s commitment to opening up aftermarkets to more competition.

The European Commission’s Competition Department or ‘DG COMP’ has finally published further guidance, in the form of FAQs on the application of EU competition rules to the motor vehicle sector. It clear that DG COMP has confined this guidance to a limited number of after-sales issues. It has declined the opportunity to cover a wider range of new vehicle sales matters, despite calls from certain bodies to do so. The FAQs focus on providing guidance on warranty restrictions, as complicated by extended warranty and lease-type deals, as well as on access to spare parts, tooling, technical information and authorised repairer accreditation. n • For more information on the FAQs contact: [email protected]


Online sales Franchised dealers are ‘failing to take simple steps to help drive their aftersales revenues’ and are losing business to fast-fit operators and independent garages. Under a third (31%) of the UK’s top 200 dealers (by turnover) have websites with an online shop where customers can purchase vehicle parts and accessories and only one franchised dealer in 10 has a website that allows customers to book a service online. Fewer still, just 6%, use their website to promote service plans,

with a similar number offering the ability to purchase tyres online – an area where fastfits dominate and successfully cross-sell other services. Tim Smith, commercial director at GForces, said: “Aftersales is critically important, providing around 80% of dealer profits and also providing the platform to drive customer satisfaction and loyalty. “A professional, online aftersales strategy can result in online service bookings increasing take-up by more than 500%.” n

Number 13 plate change? We have received a number of calls from members regarding the plate change in March next year which will use the number 13 to denote the year. We have been asked whether the DVLA will go ahead with this change in view of the perception by some of the number 13. We have had lengthy discussions not just with the DVLA but also with other stakeholders, including vehicle manufacturers, about this. In fact it was back in 1999 that this issue was first raised and at the time we lobbied the DVLA pointing out that the

number 13 on the plate change was likely to be an issue. The DVLA have confirmed the plate change will go ahead and that the system cannot accommodate a change under the current legislation. Any change would need to be introduced under primary legislation and there is no opportunity for such legislation to be tabled to allow the change to take place. The DVLA have ‘helpfully’ suggested that dealers might like to use the opportunity to sell a cherished number plate to their customers from the DVLA. n

Fly the flag to boost sales Dealers that fly the flag and boast about the Made In Britain origins of the cars on their forecourts could boost sales among patriotic customers. Research by car supermarket Motorpoint shows that almost two-thirds (62%) of customers are more likely to buy a vehicle if it is ‘Made in Britain’, even if ownership of the manufacturer, whether it is MINI, Honda, Nissan,

Toyota, Land Rover, Jaguar, Bentley or Rolls-Royce, remains foreign. Customers who are not car fans may still not be aware that vehicles like the Honda Civic or Nissan Micra are British built and David Shelton, Motorpoint’s Managing Director, said: “Our poll shows that UK motorists trust and want to support British car production, so it’s increasingly important to offer cars manufactured in the UK.” n

UPDATES | NFDA

NFDA’s Used Car Standard The NFDA is developing a Used Car Standard covering all aspects of selling used vehicles from advertising, vehicle history checks (including vehicle mileage) and mechanical checks, through to the sales process, finance and insurance, warranty, complaints handling and staff training. The NFDA Standard may be adopted by any used car dealer who adheres to and abides by the standards set down. Alongside the Standard, the NFDA will develop a guidance document which will assist dealers

in meeting the requirements and give useful background information for selling used cars. When finalised, the Standard will be promoted to the consumer market. The NFDA Used Car Working Group is working to develop the Standard’s layout and content and we will consult members to ensure that the Standard is workable and applicable to the sector. The Working Group will consist of used car specialists from dealerships as well as from a number of industry providers, such as Glass, CAP, HPI and CDL. n

Car buyers hunt best finance deals Smart car buyers are shopping around not just for their cars but for the best finance and insurance deals too, so many dealers may need to think again about their F&I offerings. Peter Landers, of Grant Thornton’s Leasing & Consumer Finance advisory team says: “Just as car-buyers are arriving at dealers with a very good of idea of the vehicle they want, the price they want to pay and the value of their partexchange, they are also increasingly more likely to have pre-arranged

finance. This can reduce the dealer’s opportunity to sustain F&I earnings. “This is compounded by the increasing concerns around regulation and the constant need to ensure that sales processes stand up to scrutiny. “Dealers need to re-evaluate their F&I strategy, continue to put pressure on partner finance companies to develop innovative products and solutions and consider new funding options to uphold finance penetration and earnings.” n

Lexus dealers lead the way The latest brands survey by leading weekly motoring magazine Auto Express puts Lexus top of the pile, with the brand continuing to “set the standards for other brands to aspire to” with their dealerships winning huge praise. Lexus was unmatched in coming top and scoring more than 90% in six out of the seven satisfaction categories; Toyota was the only manufacturer that secured a top-five rating across the board, sealing its position in second place. Steve Fowler, Auto Express editor, said: “We know that increasingly it’s how you sell as much as what you sell that’s important to car buyers. Lexus and Toyota dealers continue to impress with first and second place rankings by consumers in our 2012 Driver Power Dealer survey. “It’s all down to treating customers how they want to be treated, then going a little bit further to impress. Plenty of other brands are trying to play catch up, but they’ve still got

some way to go to beat the best.” Richard Balshaw, Lexus Division Director, said: “Coming first in the Driver Power survey for the 11th year in a row reflects how our core commitment to delivering the highest levels of customer service continues to yield results. The hard work of the men and women in our centres every day is about ensuring customers are completely satisfied and it is great to see their efforts rewarded in this way.” Steve Settle, Toyota Customer Services Director, added: “When it comes to customer service, there are so many areas where you need to get it right to succeed, from the way you handle phone enquiries, to recognising how every customer will have different needs or preferences. Understanding all of this and delivering the kind of friendly, professional and fair service that will secure customer satisfaction and loyalty requires time and dedication - qualities that are recognised in Toyota’s progress in this year’s Driver Power survey.” n

Dealer finance at record levels Latest figures from the Finance & Leasing Association (FLA) report that 68.6% of new cars acquired by consumers in the last 12 months were bought using finance sold in dealerships, the highest level since FLA records began. The new car finance market showed its biggest monthly growth so far over the summer, growing 48% by value and 42% by volume compared to the same period last year.

CARS BOUGHT ON FINANCE BY CONSUMERS THROUGH DEALERSHIPS

Personal Contract Purchase was the most popular car finance product in July, accounting for 60% of finance granted. Hire Purchase accounted for a further 28%, leasing for 7%, and the remaining 5% involved personal loans provided by dealers for new cars. Paul Harrison, Head of Motor Finance at the FLA said: “Almost 70% of car buyers – 600,000 people – used finance from the dealer to buy their new car in the last 12 months, showing

that it is a vital source of credit for consumers. It allows people access to cars they need to get to work and support their families and lifestyle. “More than £15billion has been lent by car dealers to consumers in the past 12 months, helping to support the economy. The Government should make sure that the specific needs of this important sector are catered for as it continues to review the future regulation of consumer credit.” n

July 2012

% change on prev. year

3 months to July 2012


12 months to July 2012


Value of advances (£m)

681

+48

2,205

+40

8,351

+26

Number of cars

48,772

+42

154,214

+31

599,609

+18

Value of advances (£m)

628

+11

1,832

+5

7,002

+5

Number of cars

68,544

+12

200,450

+7

770,462

+8

New cars

Used cars


CV | UPDATES

Truck testing - will it ever be fully privatised? VOSA head man Alastair Peoples has stated that most annual tests will be done by ATFs/DPs by early 2013. For truck operators private testing means that they do not have to travel so far for tests, and also they benefit from a one-stop-shop because often the maintaining workshop and the test facility are on the same site. Current figures show that vehicles tested outside VOSA’s own test stations have a higher pass rate. Probably the big issue for operators is the additional lane fee charged by the ATF site. It is clear that there needs to be a level playing field on costs. Differentials must be eroded, or absorbed by VOSA, as a cost for them, since they are not having to renew their own test stations. The benefits for the franchised dealer operating an ATF with employee testers would be immense, leading to; • More flexible staffing arrangements • Lower net costs for the dealer • Out of hours testing • Better utilisation of staff, allowing other work to be carried out in periods of low demand for tests • Improved customer loyalty through better dealer continuity • Less time wasted driving

to different locations for maintenance and testing. There have been concerns from various operator trade associations. The argument goes that moving the test to the private sector would lower standards and affect road safety. There are also claims that this will increase costs to operators, due to unnecessary “upselling” advised to the operators. This could not be further from the truth. Currently the highest MOT failure rate of 50% is recorded in the Class 7 MOT categories which is the test for 3.0 to 3.5 tonne commercial vehicles. These are all tested in the private sector. Likewise the threat of dealer up-selling is minimal, as many of the trucks are currently on manufacturers’ ‘repair and maintenance’ contracts, where approval is needed prior to any service item being replaced. Although VOSA has denied considering moving HGV testing to the private sector, this could become inevitable if the Government is consistent in its aim of cutting public sector costs. We totally support the case for the privatisation of truck testing, which we believe will improve competiveness, prove more convenient for the UK truck industry, and lower costs to the taxpayer. n

More ATFs open for business Holyhead Trucks based at Mona Industrial Park, Mona, Gwalchmai, Wales has become the latest VOSA-approved Authorised Testing Facility (ATF). The new testing facility is easily accessible to customers in North Wales, providing an open access testing service. The building is specially designed and can accommodate any type of commercial vehicle. This means that, as of August 2012, more than half (56%) of

large vehicle testing is being carried out away from VOSA sites. Find your nearest testing location on the Businesslink website. ATFs Approved in August ATFs that opened in August 2012 are included in the list below. For a complete list of ATFs and DPs, visit www.data.gov.uk Mayswood Henley in Arden


Mixed messages from van and truck sales The van market has been buoyant for the last three years, but just recently the serious size panel vans sales are in decline, with 1,574 fewer registrations in August this year than in August last year in the 2.0t – 3.5 tonne ranges. The vast majority of these vehicles are bought by businesses that are VAT registered customers, who are becoming more concerned at restraining their business overheads in these difficult times. The below 2 tonne van market (mainly small vans based on car chassis) did better, with 17.3% growth, perhaps indicating that there’s a little more confidence in the selfemployed business sector. These vans usually have competitive finance offers available to the private customer. Rigid heavy trucks have been showing a resurgence over the last six months but things may now be wobbling. August showed a fall of 2.2% against a year-to-date growth of 39% but of course this could have been a “hold back” awaiting the new September registration plate. Throughout this year tractor sales have under-performed against last year, down 7.5% year-to-date, but in August the registrations rose by a modest 3.6%, which was encouraging. Overall August commercial registrations fell 10.2%, not the best indicator of market directions but there is a general feeling that the market is flat-lining until there are more positive economic indicators. By contrast, early summer sales of sub 3.5 tonne vans turned the market on its head, with a massive 10.2%

jump in sales. This followed six months during which sales were consistently lower than the same period in 2011. With a sales uplift of 1,750 more vehicles sold and registered, the prospect was raised of some self-registration going on in the market. Growth came from smaller vans under 2 tonnes GVW, the sort most often bought as service vehicles and by local tradesmen. The other growth area was from the maximum weight 2.5 to 3.5 tonne GVW vans and trucks registering, with 703 more units sold than in July 2011. Many of these will go into service in the evergrowing, internet delivery market. The growth in sub 3.5 tonne vehicle sales was matched by a reversal in sales of heavy vehicles, with the market down 2.2% for the month, although year-to-date sales are still strong, showing growth of 21.5%. Rigid heavy trucks still outperformed last year’s figures with a growth of 16.2% for 6 to 16 tonnes and a 2.8% growth for larger units over 16 tonnes. However, these increases have slowed against the runaway year-to-date registrations of around 40% growth, so perhaps the reality of the weak economy is starting to show. Of real concern in 2012 has been the decline in the sales of articulated tractor units, with two axle sales down 6% and three axle sales down 9% yearto-date. These large vehicles are mostly used for moving consumer goods and food, so their sales levels reflect even more closely the health and confidence – or otherwise – of the UK economy. n

[email protected] 01564 792 546 Spencer Commercials Evesham [email protected] 01386 420 900

01228 597 222 JRW Haulage Bristol [email protected] 01275 853 939

Glenside Commericals Caerphilly [email protected] 02920 858 000 Stagecoach Preston [email protected]

Arriva High Wycombe [email protected] 01494 560 660 Holyhead Trucks Holyhead [email protected] 01407 721 197 n

FOCUS | NFDA

NFDA DEALER ATTITUDE SURVEY RESULTS REVEALED Franchised dealers are continuing to invest in their operations even though market conditions and dealer profits have remained difficult, according to the NFDA Dealer Attitude Survey Summer 2012 results.

T

here is concern however among vehicle dealers about the standards being imposed upon their dealerships by their manufacturer, with the trend of deteriorating dealer/manufacturer relationships, highlighted in the Winter 2011-2012 Dealer Attitude Survey, continuing. NFDA Director Sue Robinson says: “Manufacturers are still demanding high investment levels from dealers even through vehicle sales are low in comparison to sales pre-recession. This is coupled with changes to EU legislation that will allow manufacturers to exert greater control and demands on dealers and their facilities. “Manufacturers continue to take an aggressive stance when setting targets. Manufacturers have used the reported rise in registration figures during 2012 as an opportunity to increase targets. Many dealers feel they have little ability to negotiate with manufacturers on targets.” The latest NFDA DAS shows that there has been a small rise in the overall value of the franchise and asked how satisfied they are with their profit return by representing their brand, the all dealer average increased from 2.7 to 2.9.

SURVEY HIGHLIGHTS: • Land Rover, BMW, Kia, Mercedes and Toyota were recorded as the top 5 franchises • The least valued franchises by respondents are Honda, Seat, Mitsubishi, Renault and Alfa Romeo • Regarding their ability to do business with their manufacturer on a day-today basis, 64% of networks reduced or maintained their rating since the last survey. • As for the partnership they have with their manufacturer, 57% of

dealers reduced their rating and 64% scored below the average mark.

PROFIT RATINGS UP Although profits and profitability ratings have improved slightly in this survey, dealers remain concerned about the standards imposed on their dealerships: • When rating the partnership they have with their manufacturer, 45% of networks improved their score • Asked about future profitability of their business the all dealer average improved from 3.0 to 3.2 • When questioned about the dealer standard their manufacturer sets them only 36% of networks improved their rating and the majority of respondents gave a score below the average point.

SUPPLY AND STOCKING OF VEHICLES There appears to be little change in dealer views when asked about manufacturer’s new car ordering and stocking policies, with an even 50/50% split of opinion from dealers scoring above or below the 3.4 average mark, which has remained static since the last survey. However, we do see some significant decreases in rating, most notably from Hyundai -0.9, Jaguar -0.7, Alfa Romeo -0.5, Fiat -0.5 and Volvo -0.5 indicating a degree of dissatisfaction. Other networks to express some concern include Lexus and Volkswagen, both with a decrease in score of -0.4. Looking at the more positive responses recorded, Subaru and Suzuki are the most significant, both having increased their rating by +0.7. Audi responded with an increase in score of +0.6, with Ford,

Mazda and Mercedes offering upward ratings of +0.5, +0.4 and +0.5 respectively. Toyota take top spot away from Lexus whilst Hyundai and Mazda share joint bottom place in the ratings table. On the face of the results it would appear that manufacturer stocking policies have not particularly changed in the 6 months since the last survey. However, the fact that some networks have declined significantly would suggest that certain brands are suffering from the policies that are in place, or have shortages of stock in popular brands.

TARGET NEGOTIATION PROCESS Although the all dealer average has remained static at 3.0 since the last survey, the results reveal that 50% of dealer networks have reduced their rating and 57% returned a score below the average mark, when asked about their new car target negotiation process. The most notable decrease in rating was recorded by Volkswagen at -0.5. However, this network still remains above the average mark. Ford, Lexus and Volvo dealers express a degree of dissatisfaction since the last survey having all decreased their rating by -0.4. The Proton network reduced its score by -0.3, although this franchise does still score above average. On a positive note, we see a number of networks increase their scores significantly, most notably Suzuki at +0.8 which brings this network to join 3rd place in the ratings. Subaru and Toyota provide an upward rating of +0.5, whilst Jaguar, Kia, Land Rover and Renault all improve by +0.4 with Audi, Mazda and Skoda offering +0.3 since the last survey. Toyota overtake Lexus in the standings in first place, whilst Alfa Romeo move to last spot in the ratings table. An aggressive stance taken by some manufacturers when setting targets does appear to be reflected in the results, particularly when over half of all dealers score below the average of 3.0. A growth in the registration figures during 2012 is only likely to increase the pressure on dealers as manufacturers increase


NFDA | FOCUS

targets to reflect this. Many dealers still feel they have little ability to negotiate with manufacturers on targets.

MANUFACTURER TARGET ASPIRATIONS Overall, there has been some improvement in respect of dealer views in relation to their manufacturer’s volume target aspirations, with an increase from 2.9 to 3.0 in the all dealer average score. This is reflected by the fact that 50% of networks recorded an increase in rating since the last survey. Despite the above, we do see some substantial downward ratings from a number of networks including Proton -0.9, Volkswagen -0.7, Alfa Romeo -0.6, Ford -0.6 and Volvo -0.6. Alfa Romeo now fall to the bottom of the table of rankings. Others to express a degree of dissatisfaction include BMW and Lexus with a drop in score of -0.5, Honda and Mitsubishi with -0.4 and Mini fall by -0.3. Contrary to the above, the results show that Vauxhall has made a significant improvement rising by +-0.9. However, they are still well beneath the average of 3.0. Toyota take 1st position in the ratings with an increase of +0.7 and Suzuki are in 4th place after recording an improvement of +0.8. With a rise in rating of +0.6, Renault move slightly up the rankings, albeit still below the average mark. Other networks worth a mention include Audi +0.3, Jaguar +0.5, Kia +0.4, Land Rover +0.4, Peugeot +0.3, Skoda +0.3 and Subaru +0.4. We have seen a number of manufacturers look to grow their market share recently. Where this has been aggressive or when aspirations are greater than consumer demand, dealers have had a negative perception of their manufacturer. What the results suggest though is that some manufacturers have had to review their market position and have become less aggressive in gaining market share. Where this has happened the dealers have seen the benefit.

SALES INCENTIVE PROGRAMMES It is pleasing to see an overall change for the better in terms of dealer views on manufacturer sales incentive programmes, with the all dealer average increasing from 3.2 to 3.3, 61% of dealers improving their rating or remaining static since the last survey and 54% of networks recording a score on or above the average mark. In respect of the more negative opinions

given, Fiat fall below the average mark having returned a drop in score of -0.6. Alfa Romeo, Lexus and Renault also illustrate some concern as they all fall in rating by -0.4. Both Land Rover and Nissan decrease their ratings by -0.3, however both still sit in the top half of the table of rankings. Turning to those franchised networks to increase their rating, we see a significant improvement from Jaguar with +0.7 moving this franchise up the ratings table accordingly. Both Skoda and Vauxhall improve their scores by +0.5, whilst Audi, Citroen and Toyota all offer an increase in rating of +0.4. Manufacturers have recognized the need to stimulate the new car market with strong incentive programmes. The new car market has grown this year helped by attractive incentives encouraging retail customers in particular to buy.

DEMONSTRATION UNITS REQUIRED The introduction of this question asking dealers how they rate their manufacturer’s demonstrator requirements, has resulted in an even 50/50% split of opinion from dealers. In top place in the ratings table is Land Rover with an above average score of 3.9, closely followed jointly by Lexus and Mercedes with a score of 3.7. At the bottom end of the scale we see Renault showing the most dissatisfaction with a score of 2.0, with Fiat and Vauxhall not far in front both with a score of 2.3. It will be interesting to see as trends develop how each franchised will perform in the rankings table in future.

OVERALL COST OF DEMONSTRATOR FLEET Similar to the previous question, when asked how dealers rate the overall cost of their manufacturer’s demonstrator requirements, there was an even 50/50% split of opinion amongst the networks surveyed. At the top of the rankings we see Land Rover recording a rating of 3.4, followed jointly by Kia and Skoda with a score of 3.1 in 2nd position and in joint 3rd place sit Suzuki and Toyota with a rating of 3.0. Vauxhall dealers are clearly dissatisfied with the cost of their manufacturer’s demonstrator requirements having given a very low rating of 1.5 and


in last position in the rankings. Once again, as we see future survey results unfold, it will be interesting to see how each network performs.

DEALER PROFIT RETURN When dealers were asked how satisfied they are with their profit return by representing their brand, the responses reveal an overall improvement with the all dealer average increasing by +0.2 from 2.7 to 2.9. This is supported by the fact that 57% of dealers returned an increased or static score since the last survey. Despite the above, a number of networks have shown a degree of dissatisfaction. Alfa Romeo decreased their rating by -0.8 and now sit 2nd from bottom in the rankings table. Fiat, Lexus and Volvo all returned a downward score of -0.5, whilst Mercedes, Nissan and Seat all responded with a negative rating of -0.4. Honda move down the ratings table with a decrease in score of -0.3. More positively, we see a significant increase in rating of +1.1 from the Jaguar network moving this franchise up the ratings table accordingly. Mazda improve their score by +0.9. Audi offer an upward rating of +0.7 as do Citroen, who give their highest rating since Summer 2002. Other noteworthy networks to show an improvement include Ford +0.3, Kia +0.5, Suzuki +0.5 and Vauxhall +0.6. Generally, dealer margins and profits are still poor, although the results would suggest some improvements in certain networks. The huge increase in Jaguar and Mercedes will have contributed significantly to the rise in the average score across all brands.

FUTURE DEALER PROFITABILITY It would appear from dealer responses regarding future profitability that there is a ray of light ahead as the all dealer average score has improved by +0.2 from 3.0 to 3.2. This is supported with 64% of networks either increasing their score or remaining static and 57% of networks scoring on or above the average mark. When we review the decreases in ratings, we see that Alfa Romeo falls by -0.6 and drops to 2nd from last in the ratings table. Honda, Seat and Subaru all return a decline in score of -0.5 and all sit in equal 4th from bottom in the rankings. Also expressing a degree of dissatisfaction were Fiat -0.4, Lexus -0.3 and Nissan -0.4.

FOCUS | NFDA

It is pleasing to see the Jaguar network increased their score by +1.2 and take 4th spot in the ratings. Renault also improve their rating quite considerably at +0.8, although still fail to reach the average mark. Other noteworthy improvements include Citroen +0.5, Kia +0.3, Mercedes +0.5, Suzuki +0.7, Toyota +0.4 and Volvo +0.7. Land Rover remain top of the table. Dealers are obviously hopeful that profits and margins will improve. The last few years have been difficult times for dealers with vehicle margins having been squeezed, and more importantly the number of cars sold has been reduced. A return to better market conditions, continuing cost control, as well as some dealer consolidation, will help the profitability of networks.

When we consider those networks to offer a more negative view, both Ford and Proton fall down the rankings having reduced their score by -0.7. Fiat sit 3rd from bottom after dropping their rating by -0.6. Honda fall by -0.5 as do Hyundai with Renault returning a downward score of -0.4. Honda’s score is their lowest since Winter 08/09. From a more positive perspective, we see Toyota move up to joint 4th spot in the rankings with an improvement of +0.6. Jaguar also rise up the charts with an increase of +0.5. Other networks to express increased satisfaction include Audi +0.4, Mercedes +0.3 and Mitsubishi +0.3. Land Rover and BMW share first position with a score of 3.8.

majority of networks are dissatisfied with 57% of respondents reducing their rating and 64% scoring below the average, it is obvious that the majority of networks have little confidence in the relationship they have with their manufacturer. Ford dealers show clear concern with a significant decrease in rating of -1.1. Both Jaguar and Proton express their dissatisfaction with reduced scores of -0.6 and -0.7 respectively. Renault fall by -0.4 whilst Fiat, Lexus and Seat all reduce their ratings by -0.3. However, Lexus are still in 1st position alongside Toyota. Of those networks to show an element of satisfaction, Suzuki showed the most improvement with an increase of +0.6 and move to joint 2nd place in the rankings. Others to offer a degree of improved

DEALER STANDARDS

ARE MANUFACTURERS LISTENING?

confidence are Alfa Romeo +0.3, Kia +0.3, Toyota +0.3 and Vauxhall +0.4.

With regard to dealer views in respect of the standards set by manufacturers, whilst the all dealer average has improved from 3.1 to 3.2, it is still concerning to see that only 36% of networks improved their rating and the majority of respondents gave a score below the average point. Looking at the more negative views returned since the last survey, Fiat fall to 2nd from bottom with a drop in rating of -0.6. Ford are now positioned below the average mark having given a reduction of -0.5. Other more negatives views were received from Honda -0.3, Hyundai -0.4, Land Rover -0.3, Mitsubishi -0.4 and Volkswagen -0.3. In respect of those networks to show increased satisfaction, Mercedes, Suzuki and Toyota all improve their ratings by +0.5. BMW top the charts with a score of 4.0 whilst Vauxhall are positioned last in the ratings table. Dealers are still extremely concerned about the standards imposed on their dealerships. Investment levels continue to rise even though market conditions and dealer profits have remained sluggish. Dealers feel that standards need to be more realistic and affordable.

DEALER STANDARDS RELATIVE TO REWARD The all dealer average score remains unchanged since the last survey. However, when asked how realistic dealer standards are compared with return on investment, only 39% of networks increase their rating and 61% of dealers responded with a score that was below average. This would suggest that the majority of dealers are dissatisfied.

With regard to whether manufacturers take dealer views and opinions into account, it is encouraging to note an increase in the all dealer average of +0.2 from 3.1 to 3.3. However, it should be said that 61% of networks still failed to reach the average point. There were very few networks to respond with any significant falls in rating. Only Hyundai responded with any notable reduction, by -0.3 this time around. Others to drop their score were by -0.1 or -0.2. Contrary to the above, Jaguar increase their rating by +0.9 and now rise to 3rd spot in the rankings. Suzuki sit in joint 2nd with an improvement of +0.7. Alfa Romeo move away from last place with an increase of +0.6. others to respond more positively were Citroen +0.4, Kia +0.3, Mitsubishi +0.4, Skoda +0.3, Subaru +0.3 and Vauxhall +0.4. BMW, Lexus and Toyota are in joint 1st place in the table of ratings. It is obvious that some manufacturers do listen to their dealers. However, these appear to be a minority rather than the rule. There has been some improvement, however there still seem to be many issues, such as targets and standards, where manufacturers do not take dealer views into account.

DEALER/MANUFACTURER PARTNERSHIP Although there has been no change to the all dealer average, it is clear from the results to the question relating to dealer/ manufacturer relationships that the

GENERAL BUSINESS RELATIONSHIP With only 36% of networks returning an increase in score, it is clear that the majority of dealers are dissatisfied with their ability to do business with their manufacturer on a day-to-day basis. This is supported by the fact that only 11 of the 28 networks surveyed gave a score on or above the average point of 3.7. We see some significant downward movement in ratings from a number of networks, most notably Ford at -1.1 and this franchise is now situated below the average score. Fiat now sit in last place having reduced their score by -0.9. Other reductions in rating were recorded by Citroen -0.3, Mercedes -0.4, Proton -0.8, Renault -0.5 and Volvo -0.5. It is encouraging to see the Suzuki network rise to 3rd place in the rankings with an upward rating of +0.7 since the last survey. Both Alfa Romeo and Vauxhall give an increase of +0.4, whilst Kia, Land Rover, Skoda and Toyota all improve by +0.3. Lexus and BMW are in joint 1st spot in the ratings chart. The responses reflect the changing landscape of motor retailing, particularly the end of the motor vehicle specific Block Exemption in May next year. Manufacturers have been issuing new contracts with revised terms, often far more favourable to the manufacturer than the dealer. Also, this has triggered increased standards and reduced the ability of the dealer to run their own business. n


NAMA | UPDATES

Quality, older stock can unlock sales NAMA/MRA

38

Quality older stock unlocks sales

39

Have bike sales turned the corner?

40

NAMA used car data

42

Five years on – the UK market in depth

Useful Contacts

Louise Wallis, Head of NAMA Tel: 01788 538336 [email protected] Stephen Latham, Head of MRA [email protected]

With NAMA figures showing a rise in values, those overlooking quality, older stock with a service history, lower mileage and little damage, or rarer vehicles, could be missing out. Sellers who are able to provide background to their vehicles will also do better, as in the current climate buyers need vehicle provenance to make quicker and more considered decisions, reports Shoreham Vehicle Auctions. Alex Wright, managing director at Shoreham Vehicle Auctions says: “There is still a healthy demand for quality older stock, from reliable sources with a good service history, lower mileage and little damage. “The only time when demand falters is when the market experiences a large

amount of duplication of the same stock so anything with a rarity factor is doing well, such as 17 seat Ford Transit minibuses. These are making up to £600 or £700 over book. Mercedes Sprinters are also doing well, with some selling for almost 20% above CAP. “Supply is not likely to pick up, which means prices will start to increase, with traders and retailers having to pay more for vehicles, without any guarantee they are going to sell those vehicles quickly. “We at Shoreham are finding that as long as you talk to your vendors and give them realistic expectations, vehicles are selling. Buyers need as much information as possible before making a decision, so they can work their limited cashflow to its full potential.” n

BCA Nottingham scoops LeasePlan awards BCA Nottingham has won the latest Value Award from LeasePlan. BCA Nottingham generated the best returns for LeasePlan of any auction centre during the second quarter of this year, averaging 98.62% of CAP Clean for all sold LeasePlan cars. Nottingham also scored 38 out of 40 for service levels. BCA Nottingham was closely followed by BCA Measham with 98.04% of CAP Clean.

LeasePlan’s top five centres, as measured against returns on CAP Clean, were all BCA sites. BCA Birmingham and Measham were the top performing sites for sales conversion, averaging just under 80%. BCA Sales Director Mark Hankey said: “LeasePlan and BCA have developed a close and trusted working relationship that generates excellent results in the remarketing arena.” n

Ducati and Audi – what about the dealers? Ducati is now controlled by Audi so what will this mean for this small, niche motorcycle network in the UK? Recently we hear that Audi, part of the Volkswagen car group has taken control of Ducati. To many people, the acquisition of Ducati looks out of place for a massive German car and truck producer. However, Ferdinand Piech, Chairman of Volkswagen’s supervisory board, will be in place for the next five years and is no stranger to iconic brands. Volkswagen owns Lamborghini and Bugatti. It is not unusual either for car brands to produce motorcycles. For Honda and Suzuki, motorbikes are where they started. BMW has a formidable range of bikes to go alongside its image for prestigious cars. Perhaps this is the thinking behind Audi taking control of this aspirational motorcycle


brand, and not Audi’s sister marque VW. For Ducati dealers in the UK it’s a question of how far will Audi go to assimilate its cars and motorcycles? And will this restrict current Ducati dealers from operating their business? Currently Ducati dealers sell other brands of motorcycle. It will be interesting to see how the Volkswagen group view this new opportunity. I’m sure quality and reliability will be paramount, but will they expect their motorcycle dealers to invest more in corporate standards and signage and possibly not sell other brands of motorcycles? We will watch with interest to see how a large, competent German car producer assimilates into a small niche motorcycle market in the UK and what effect it has on its current dealer network. n

UPDATES | MRA

Have bike sales turned the corner? The summer of sport brought success for motorcycle sales too, with wins across the board and sales growth at last. The good news started with a rise in new motorcycle registrations of 4.5% in July across a range of models and engine sizes. However, the switch in sales, with a rise in customers buying lower price and less powerful machines instead of the higher powered sports bikes, has brought real financial pressures. Many dealers are having to live on lower margins, with a shortage of good quality, mid-powered motorcycles offered in part exchange for the strong second-hand market. The month saw 9,170 bikes registered, against 8,778 for the same month last year. The increase was across a variety of models, rather than being confined to one particular kind of machine. While sub 50cc moped numbers were just below last year’s sales, ‘Direct Bikes’ led the sales with 103 units delivered and there was also growth in the 125 Scooter market with sales up 11.2%. Larger motorcycles did well, with increases in the AdventureSport, Supersport, Trail/Enduro and Unspecified sectors of the market. In total, bikes over 50cc showed an increase of 5.5% against a year-to-date gain of just 1.8%. Many of these bigger bikes would have been ordered before July, expected as always due to hopes of a dry summer. However, the fact that the top three selling bikes this year are all

125s shows that customers include increasing numbers of older riders, motivated by the need to reduce their commuting and fuel costs. The top three for July were the Honda CBF 125 (271 machines sold), Honda PCX 125 (205 sold) and Yamaha YZF R125 (186 sales). August also saw improvements, if modest, with sales up 3.1% and 205 more bikes registered than in August 2011. While August saw sales of under 50cc machines drop by 10.6% and by 7.1% year-to-date, sales of bigger bikes in most sectors improved by 6.7% in August, with almost 350 more bike sales. As in previous months, late summer saw sales of 125cc scooters show steady growth as did sales of Adventure-sport, Naked and Trail-enduro, though many were sold with 125cc engines. Sectors in August which saw growth were the 51 to 125cc sector (up 13.8%), 126 to 650cc (up 8.1%) and 651 to 1000cc (up 2.5%). Interestingly, sales of litre plus bikes fell (down 11.3%), perhaps indicating that customers really are putting a brake on the purchase of higher-priced luxury items. Along with this, the top three manufacturers by volume in August were Honda, Yamaha and Triumph, closely followed by Piaggio, indicating more demand for lower-price/value for money low powered commuter bikes. Lexmoto were fifth by volume, followed by Direct Bikes (eighth) with 251 registrations and Peugeot were in tenth place with 246 sales. n

Bike show

The UK’s biggest bike show goes live in November and tickets are now on sale. Motorcycle Live 2012 will be staged at the Birmingham NEC from November 24 to December 2 with advance tickets priced at £16 per adult, £10 for seniors and £6 per child. The show will feature five exhibition halls crammed with all the latest bikes, clothing and accessories, plus non-stop entertainment from some of the biggest names in biking, as

well as the BSH/Streetfighters Custom Xtreme Zone, the Yamaha Escape Zone and the Classic Zone in association with Coventry Transport Museum. The ticket includes access to six opportunities to ride a motorcycle and entry to the stunt display in the Ramp’d Up Freestyle Motocross Arena. n • For more information call 0844 581 2345 or visit www. motorcyclelive.co.uk

Hot leads for Get-on Dealers You could be missing out on really hot sales leads if you have not yet signed up for the Get-on campaign. Since the latest phase of the Get-on campaign started, MCI/Get-on have sent out numerous surveys to those who have booked and subsequently taken their free rides. The survey feedback is showing a healthy picture. Over 50% of those contacted by the campaign have said they want a local dealer to contact them. Get-on will of course send their details out to those dealers signed up to the campaign so

they can gain the benefit of the potential customers being created. The problem comes when there is a void in a geographic area where very few dealers have signed into Phase Two and the leads cannot be sent to a supporting dealer. So are you signed up? There’s now no sign-up fee and if not you could be missing out on those all-important, new riders wanting to talk to you! n • For more information contact [email protected]

Kawasaki on VOSA recall list VOSA has issued a recall for variants of the Kawasaki EX250 regarding a fault leading to engine cut out. Motorcycle dealers must ensure that any used motorcycle sold by them has been checked for outstanding safety recalls and that the work has been done before the machine is handed over to the customer. Dealers are advised to ensure that as part of their due diligence process they check for outstanding recalls through their manufacturers, the VOSA website, as well as with other

dealers if the motorcycle is a brand outside their own franchise. If you are trading a motorcycle you are under an obligation to remind the trader that the vehicle may be subject to a safety recall. It is then their responsibility to make sure any safety recall work is carried out before it is sold to a retail customer. VOSA have agreed to communicate all new safety recalls they have registered on behalf of motorcycle and car manufacturers, and we will pass this onto our MRA members each month. n


NAMA | FOCUS

NAMA Used Car Data What can the summer used car sales figures tell us about the future? Summer saw stability in the sales mix between July and August but looking further ahead the story is very different, according to the latest used car data from NAMA, now one of the biggest, most detailed and most influential of used car data resources.

O

verall auction sales in August 2011 were 7.3% higher than August 2012, but the percentage of older vehicles sold at auction in August this year has increased significantly. Cars aged 10.6 years or more made up 14% of all auction sales this year, compared to just 9.8% in August 2011. A similar pattern can be seen in the sale of cars aged between 9.6 and 10.5 years. Furthermore, for every month this year there has been a larger proportion of sales of these vehicles when compared to the same month in 2011. There has also been a dramatic change to the sales mix of cars aged between 2.6 and 3.5 years – typically ex-fleet vehicles. In August 2011 this age of vehicle made up 19.5% of all vehicles sold at auction. However in August this year vehicles of

this age made up only 15% of sales. These very significant changes in the age mix of cars help to explain the apparent disparity in prices. The suggestion would be that reduced supply in the fleet sector has helped to push up prices year-onyear from £6,675 to £7,475, or 10.1%. In contrast, the greater supply from dealer part-exchange sector has served to limit the increase from £2,175 to £2,325, or 6.5%. Tony Gannon, NAMA committee member, says: “From the beginning of September the market dynamics have begun to change. As NAMA predicted, the supply from the dealer sector is now on the increase, and as we hoped, trade interest is gaining momentum. “Prices during the first two weeks of September were up 3% from the end of

PRICE CHANGES JULY COMPARED TO JUNE BY CUSTOMER TYPE

June 2012

July 2012

% difference

Manufacturer/Rental

£12,550

£13,075

4%

Fleet

£7,375

£7,475

1%

Dealer PXC

£2,275

£2,350

3%


August and it would appear that these positive signs will continue. However we will soon enter the traditional period of uncertainty, where supply will continue to increase and it will be uncertain if the market will be able to preserve the higher prices. Vendors will need to monitor the market carefully.”

Summer mini-surge in values Summer opened with a welcome mini-surge in values and a forecast that values could stay strong through into late summer/early autumn. NAMA Chairman Andrew Hulme said: “Buyers and sellers were moderately surprised by the overall strength of the market.” The July increases rounded off a run during which most dealers selling vehicles at auction reported that their trading performance at auction over the first seven months of 2012 was stronger than the same period of 2011, when looking at achieved price versus stand-in value. In fact, the year-on-year position in July saw prices up almost 6.5%, with prices improving every month this year except in February, when prices were the same as the previous year. Prices have also been stable this year in spite of monthly sales, with the exception of June, when the numbers dipped just below 47,000 units. July saw average values of used cars sold at auction rise across the board from £4,577 to £4,690, a 2% increase. An important factor to note is that, while the Manufacturer/ Rental market recorded an increase in values of 4%, the Fleet and Dealer Part Exchange sectors - which account for 90% of sales - recorded more modest increases of 1% and 3% respectively. Every key performance indicator showed

positive market conditions, although retail demand remained at its normal seasonal low point, with dealers unwilling to commit themselves to large amounts of stock. This led to dealers buying from the auctions on a ‘little and often’ basis. Even so, sourcing used vehicles during this period was more difficult than usual due to a more restricted and limited choice for auction users. This meant many auctions enjoyed higher attendances in early summer as more buyers competed for those cars that were available. Andrew Hulme, NAMA Chairman, said: “The combination of auction shortages and sales saw conversion rates increase from 72% to 77%, helping to produce positive prices for the month. This meant fewer cars were carried over to subsequent auctions, as sellers readily accepted what they believed were acceptable offers in relation to their reserve prices. Recent months, with fewer cars available, have concentrated trade demand and that pushed up prices, which in turn reduced the supply again and the cycle is repeated. “We at NAMA believe that this very encouraging picture of the market is set to continue, as it is very unlikely that there will be any significant injection

of supply until early autumn, with trade demand staying constant and so ensuring stable prices over the period. “Post-plate change, vendors will need to be sensitive to movements in the marketplace and take every opportunity to sell while shortages prevail.”

Stability the key for August August saw the average value of used cars sold at auction across the board reduce from £4,690 to £4,604, equivalent to a 2% decrease between July and August. However each market sector recorded a decrease of just 1%. The 2% average decrease is due to the shift in mix of sales, with a larger percentage being made up of lower value, dealer part exchange vehicles. The moderate fall in prices in each of the sectors is a reflection of very stable market conditions between July and

August. Attendance at auctions and trader buyers’ tendency to buy, changed very little between the two months and the supply of trade cars also barely changed. Tony Gannon said: “August is traditionally one of the quietest wholesale months of the year but this time round it recorded a strong result for vendors. Prices remained stable because of the continuing reduction in the supply of used cars, rather than an improvement in trade demand. Trade buyers have only been purchasing vehicles to fill the spaces that have appeared on their forecourts. “Dealers’ retail asking prices virtually remained unchanged over the summer months and as a result there was no obvious loss of profit margin recorded.” n • Full copies of NAMA reports are available from [email protected]

PRICE CHANGES AUGUST COMPARED TO JULY BY CUSTOMER TYPE

July 2012

August 2012

% difference

Manufacturer/Rental

£13,075

£12,900

-1%

Fleet

£7,475

£7,425

-1%

Dealer PXC

£2,350

£2,325

-1%


NAMA | FEATURE

Five years on the UK market in depth

The Manheim five-year analysis of remarketing trends in the dealer market gives a valuable insight into long-term ups and downs. The good news is that despite the huge economic upheavals that have hit the UK in recent years, our sector has stayed comparatively stable.

T

he study shows that although the average ages and mileages of vehicles coming to market have risen in recent years, values “remain remarkably stable”. Manheim report: “While the value of houses and electrical goods have remained static or even reduced over the last five years, the value of a three year old car has risen in line with fuel, food and energy costs... while drivers enjoy greater performance and more features from their cars than they did five years ago.” For example, in April, May and June of 2010, the average selling price was £2,233, while the retained percentage of the vehicle’s price new was 16%. Fast forward to the same period in 2012 and while the average selling price has now risen to £2,422, the retained percentage of the vehicle’s price when new is...16%. This year used car values in the dealer market rose by £29 (1.2%) during the second quarter, reflecting a fall of one month in average vehicle age and a drop of 1,026 miles in average mileage.

At £2,422, the average selling price during the second quarter of 2012 was also £73 or 3.1% higher than the same period in 2011, £189 (8.5%) higher than the second quarter of 2010 and an impressive £436 (or 22.0%) higher than in 2009, £438 (22%) up on 2008 and £317 (15%) up on the same period for 2007. The average age of cars sold during the second quarter of 2012 was a month older than the same period in 2011, two months older than the same period for 2010, but five months older than in 2009, six months older than in 2008 and nine months older than in 2007. Similarly, average mileage during the second quarter of 2012 was only 553 miles higher that the same period in 2011, but 1,891 miles higher than 2010 and 2,838 miles higher than in 2009, 2,105 miles higher than in 2008 and 4,260 miles higher than in 2007.

Fleet remarketing also strong Looking at fleet remarketing trends over


the last five years, Manheim found a similar robustness in the percentage of new achieved at auction with results showing that despite a consistent rise in average vehicle mileages and age at resale, consumers are paying more today for an equivalent. With values at a record high of £6,680 in the second quarter of 2012, this figure was £496 (8%) up on the same quarter in 2011, £257 (4%) up on the same period for 2010 and £401 (6.4%) up on 2009. The rise in values year-on-year came despite consistent rises in the ages and mileages of fleet cars sold. The average age of cars sold during the second quarter of 2012 was a month older that in the second quarter of 2011, three months older compared than in 2010 and eight months older than vehicles sold in the same period of 2009. Similarly, the average mileage during the second quarter for 2012 was on a par with 2011, but 4,662 miles higher than the same period of 2010 and 7,995 miles higher than in 2009. n

ADVERTORIAL | NAMA

Why are used cars

getting older?

The cars on our roads are getting older, with the average car in the UK just under seven and a half years old, compared to 2008 when it was under seven years.

R

ecessionary pressures are driving the trend and the volume of six to eight year old vehicles sold in 2011 grew by 7.4%. There are now more than seven million cars in this age bracket on UK roads. However, this is dwarfed by the number of cars aged nine years old or older, with more than 13 million of these older vehicles on the roads and sales of these older vehicles rose 7.5% last year. Tim Naylor, Editor of the BCA Used Car Market Report, says: “Our research illustrates that the second recession in four years, rising fuel and maintenance costs and high inflation, have seriously affected car owners’ disposable incomes as well as their day to day motoring choices. “A slowdown in the new car market from 2008 onwards has certainly had an impact on the availability of good quality, used cars for motorists to buy. “Crucially, company fleets have been holding on to their cars for longer and changing them less frequently and this has affected the supply of cars aged up to five years old. As a result, motor dealers are buying older vehicles for their forecourts.” “The squeeze on household spending means motorists are looking at different ways of managing their travel costs. Some are deciding to choose slightly older, cheaper cars when they change their vehicle. Others are looking for more economical cars that deliver a better MPG as they try to combat rising fuel costs. “We have also seen a decline in the number of multi-car households which suggests families are having to economise with their personal transport needs.”

• Used car volumes rose to 6.7 million last year from 6.6 million in 2010 • As a result of more cars being sold, the overall value of the used car market edged to a new high of £35.7 billion, although average used car selling prices remained flat at £5,236.

Top of the shopping list is a car with better fuel consumption, followed by lower road tax, a smaller car, best purchase price and lower CO2 • Owners satisfaction with their used car rose two points to 95% in 2012

What For The Future? • Private to private used car sales increased by 7% year on year, with sales of 6-8 year old vehicles increasing the most at 15.9% • There is a marked drop in the number of car owners who believe they will ‘certainly’ or ‘quite likely’ buy a used car in next 12 months – down 3% in 2012 to 11% • Affordability tops motorists’ priorities when deciding which car to buy. Price is key at 41%, followed by low mileage at 31% and make and model at 30% • 9 out of 10 motorists intend to replace their car with a different type of vehicle next time.

The report shows that 90% of motorists plan to choose a different type of vehicle next time they change. Top of the shopping list is a car with better fuel consumption followed by lower road tax. But owning a car is still important for the majority of UK families with 72% of families owning at least one car, though this figure is 5% lower than two years ago. Hatchbacks account for nearly half of all used cars purchased. Choosing a car that will be as flexible as possible probably accounts for the increase in the share of the used car market for MPVs, now representing 10% compared to 6% last year. n

Key Findings • 6-8 year old used car volumes grew by 7.4%/124,000 to 1.79 million units in 2011, representing 26.8% of the used car market • Sales of 9 year old plus cars grew for the second year running, rising by 7.5% to 2.53 million and 37.8% of the used car market OCTOBER/NOVEMBER ‘12 • WWW.RMIF.CO.UK • AUTOMOTIVE INSIGHT • 43

NAB | UPDATES

Ford write-off scheme for NAB members NAB

44

Ford write-off scheme opens for members

Ford have now extended their successful ‘Write Off Avoidance’ programme to NAB members. The programme works by offering a discount on OE parts used to save vehicles which may have otherwise resulted in a total loss. We believe Ford have been extremely proactive with the scheme which is of particular benefit to repairers. NAB is delighted to have this opportunity to work with Ford and extend the programme outside of the Ford network and offer this to you as a member. This discount goes a long way to reducing

44

Chances open for VDAs

the overall cost of the repair, saving the vehicle from write-off and keeping the allimportant work within the repairers business. NAB’s Graham Threlfall said: “All NAB members who have PAS125 accreditation are able to take part in the programme. NAB will provide all participants with a guide document and will be on hand to ensure that they understand the process. “Ford really took the initiative with this programme which has now saved over 2,500 vehicles and generated substantial revenue for repairers. The increasing numbers of total losses is a major concern for repairers and the benefits gained by Ford Accident Repair Centre’s from the programme is fantastic and we are now extremely pleased to be able to offer the programme and its benefits to NAB members who have PAS125.” n

Chances open up for VDAs

45

Perrys of Gobowen – the secret of success

Useful Contacts Graham Threlfall Head of NAB Tel: 07980 760946 [email protected]

Thatcham’s funded Vehicle Damage Assessors (VDA) apprenticeship scheme is now also available to applicants over 18 years old, with start dates set for November. Academy Business Manager, Clare Ballard, said: “This is a high quality apprentice programme, focusing not only on the complex and specific skills of Vehicle Damage Assessment, but also includes modules on Customer Service, and Mechanical, Electrical and Trim. It is designed to produce a new breed of bodyshop assessor, with an all-round appreciation of vehicle assessment and repair.” Alan Doughty, Education Officer, Institute of Automotive Engineer Assessors, said: “This vital apprenticeship sets the foundation of


safe, quality repairs and importantly is now available to technicians with prior experience.” The Thatcham IAEA Assessor Apprentice programme is the first apprentice scheme designed specifically for VDAs. Thatcham remains the only place where assessors can access a dedicated apprenticeship scheme in conjunction with the IAEA. The programme provides a funded apprenticeship for bodyshop assessors, who will complete a two year block release programme. Upon successful completion, candidates will gain an IAEA qualification, equivalent to Level 4. n • For more information call 01635 293 174 or [email protected]

FOCUS | NAB

Perrys of Gobowen Perrys of Gobowen are the Manchester United of the commercial vehicle world. If there is a final going, a cup to be won or an award to be handed out then Perrys in Oswestry are always there or thereabouts, on the top step of the podium or within touching distance of the win.

I

ncredibly, every year since 2005, NAB members Perrys of Gobowen have been finalists in the CV Bodyshop of the Year Awards, have won the Award outright two times and this year again made it through as finalists. Such consistency of quality and professionalism does not come easily, so what is it about Perrys that makes them, year in year out, able to perform at the top of their game, recognised nationally and internationally for the work they do and for their excellent customer service? With Perrys this year marking half a century in business since setting up shop in 1962, we spoke to Mike Wilson, Bodyshop Manager at Perrys, to find out how they do it. He told us: If there are three words I would choose to sum up our business they would be stability, investment and consistency. Ours is a family run firm. Glyn has been here for 35 years, I have been here for 34 years, we have very little turnover of staff – our painters have been here for 15 years and probably longer – so we are a company that is built upon stability. We also know that if we invest, and invest with confidence, we can build on the consistency of our repairs. None of those three words is more important than the other – you can put them in any order - but we have found that they are all crucial and they all reinforce one another because what they bring is quality of work. We have stability, we invest in our equipment and in our workforce, and that results in consistently high levels of quality work.

Focus on accident repair We are also different from a lot of CV body shops in that we have identified the area in which we want to focus, and that is purely on accident repair. We do not get involved with refurbishment except where an accident repair demands it, for example paintwork.

We do not mix the two – accident repair and refurbishment. There are some great refurbishment workshops but it is my view that, with refurbishment, a client is more likely to be working to a budget, whereas with an accident repair, whether we are doing the work for an insurance company or for a Blue Chip private company, the demand is always for the best possible work to be done, the right manufacturer’s parts to be used without any compromise on quality and we like to put things back into mint condition. We now have 24 people working here, having taken on another two members of staff in the last year, and we are at a level now where we are comfortable and busy. We have 14 bays and of those, six bays are dedicated to jobs like chassis straightening and cab realignment. With our Dentrassangle partnership and other work we have access to the sort of volume that allows us to keep our business at a steady level.

Managing insurance costs CV customers are totally different to car customers. If your car has an accident you want it back with everything replaced with new, but the CV market is different. For CV customers it is a business and managing their insurance costs is a big part of their business. So if we can use a recycled door, or an entire cab, then we might be able to do a job for them costing £12,000 instead of £30,000 which means their claims history is better by £18,000. So while CV customers want to keep their costs down and manage their claims history so they know where they are going to be at the end of the year, they also want top quality. We have got nationwide coverage and bringing a vehicle back six or seven hours from Scotland is perfectly normal for us. We talk to the customer all the time. From the moment the vehicle arrives with us we talk to the customer, letting them know that parts have arrived or have been

delayed. We are always straight with our customers, and they are able to track the progress of repairs with us online. It is crucial for CV customers to know what is going on and how long they are going to be without the vehicle and a key part of our service is to keep them fully informed at all times.

Stability, investment, consistency These elements – stability, consistency and investment – along with our customer service are what has made us so successful in the Bodyshop awards. We have never come lower than runner-up in the Bodyshop awards since 2005 and that is a reflection of the consistent excellence of our work. We work hard to maintain that excellence. As an example, I travelled to Sweden to train on the latest chassis straightening techniques for the equipment we use, we travel to Milton Keynes to train, and we scored 100% in our Mercedes-Benz audit. It is this dedication to quality and ongoing improvement that has brought Perrys a hatful of awards, a loyal customer base, and a loyal workforce.

Perrys – a history of winners: • Founded in 1962 by Clive Heathcock. Took its name from the River Perry to rear of the garage • Developed into a major repair and recovery centre for cars and commercials • 1994 made a major investment in commercial accident repair equipment JOSAM systems • Focused on building business with insurance companies and PLC operators. Took on Renault Truck franchise. • In 2002 after large growth first new Bodyshop was purchased at Ifton • In 2004 Gobowen site sold and new two acre site for Commercial Accident repair and Renault Truck Franchise opened for business • With modern workshops state of the art Josam chassis floors 14 bay workshops • 2005 Perrys enter CV Bodyshop awards and reach the finals • Became a RMI (NAB) Quality assured commercial repairer. • CV Bodyshop of the Year Award Winner 2006 and 2008. n


FORECOURT | UPDATES

How far off is the 150p litre?

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How far off is 150ppl?

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PRA backs OFT on fuel prices

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Gulf network joins PRA

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Sun power boost PRA fuel duty campaign

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Keeping the (car wash) customer happy

Useful Contacts Brian Madderson RMI Petrol [email protected] Julian Phillips Head of Commercial Services [email protected]

The 150pence litre could be on our forecourts sooner rather than later warns PRA Chairman Brian Madderson. A combination of planned tax and VAT increases along with increases in the cost of oil globally could combine to develop a “perfect storm” resulting in major rises in forecourt prices. Events abroad have sent the price of oil surging on the international markets and fuel retailers and motorists are in line for sure fire increases of 7ppl next spring. Brian Madderson said: “We are very concerned that Government plans to levy the deferred duty rise of 3.02ppl on 1st January 2013. This will quickly be followed by another planned rise of up to 2ppl on 1st April 2013. With VAT at 20% on both increases, Government tax will push up pump prices by as much as 7ppl in the first few months of the New Year. “There is also the global situation where we are seeing rising costs per barrel of oil. This is really bad news for motorists and retailers alike as the full effect of wholesale prices already increasing by nearly 10ppl

since late June, has yet to be passed on at the pumps. Average pricing for petrol across the UK has now risen to 136ppl and could yet return to 140ppl and higher. “Should there not be any downward correction to oil prices this Autumn, the spectre of having to pay 145ppl to 150ppl for petrol in early 2013 could return to damage our economic recovery and hit the Bank of England’s hopes for reducing inflation levels. Increasing fuel prices particularly adversely affects rural economies, lowincome earners and small businesses. “Government must start planning now to freeze all further fuel tax increases during the term of their Parliament.” The war in Syria and events in Iran have helped push up the price of oil globally as worries over future supplies grow, made worse by the usual summer demand for road fuel from America. Shippers have reported a 10 month high in the volume of gasoline being moved from Europe to the US and Brent Crude soared 10% to go way over the US$100 a barrel benchmark. n

PRA backs OFT on fuel prices The Office of Fair Trading’s decision to probe allegedly “rigged” petrol and diesel prices has been warmly welcomed by the PRA. The PRA’s backing of the move came after the OFT called for information on the UK petrol and diesel sector in light of continuing public concern about pump prices. Robert Halfon MP – who has been working closely with the PRA - also welcomed the OFT move saying: “There is strong evidence that the oil price is being rigged. Britain is being taken for a very expensive ride. We need an urgent investigation by the Government.” The OFT wants to identify whether or not there are competition problems that it can tackle in the sector. It will also look into whether there is a lack of competition between fuel retailers in some rural communities in the UK, all issues that the PRA has long been campaigning over. PRA Chairman Brian Madderson said: “The OFT decision to look into petrol and diesel prices is a significant step forward for the PRA campaign for


a market study into anti-competitive pricing in the UK fuel market. “It has been 14 years since the last OFT investigation into the fuel sector and much has changed in the market since then. “We submitted a detailed report to the OFT earlier this year, asking for a “Market Study” under the terms of the Enterprise Act 2002. The report provided evidence of alleged anti-competitive pricing across the UK based on evidence gathered from their members. “Businesses, motorists and independent retailers all need much greater price transparency and we call on the Government to support the request for the OFT study. “The time has come to be proactive in the search for further evidence to test claims of anti-competitive pricing in the UK’s fuel market. It is imperative that independent fuel retailers respond to the call and submit evidence of unfair pricing and competition issues. “The PRA will be on hand to assist members with submitting the necessary evidence and will continue their dialogue with the OFT on the subject.” n

Save Our Sunday trading call from PRA The PRA has called on the Government to keep the existing Sunday trading regulations in place. Eric Pickles, Communities and Local Government Secretary, has suggested the Government may review Sunday trading laws when the temporary relaxation of restrictions, introduced for the Olympics, ends. Brian Madderson, PRA Chairman said: “Our members are already suffering from reduced fuel volumes and margins. If our members were to lose the advantage of competitive opening hours under a change to Sunday trading laws they would suffer further losses of shop takings as well. “We have no doubt this would result in the closure of more forecourts in an already diminishing sector, especially those serving the rural areas. “The PRA is in talks with

the Department for Energy and Climate Change (DECC) to highlight the weakness of the downstream oil industry, and the alarming rate of closures among independent retail forecourts. “The possible closure of fuel forecourts is entirely at odds with Government concerns over the amount of refined fuel available on forecourts to motorists at any given time.” n

France leads the way on fuel prices

News that in France fuel prices have been cut has been warmly welcomed by the PRA who say the Britain should do the same. In France the Government and the major oil companies, have agreed to cut fuel prices for three months to help drivers who have been hit by a surge in costs at the pump. PRA Chairman Brian Madderson said: “The move by the French Government is to be applauded. They have reacted quickly to rising fuel costs knowing that any further increases would impact negatively on their economy. “It is imperative that the UK Government follow their lead in the fight to restore our economy and bring us back out of recession. “We, working with the Taxpayers’ Alliance, recently launched a major

campaign to highlight the burden that excessive fuel taxes are placing on motorists and retailers alike. The idea has been to get across to motorists that it is not the fuel retailer who is making money out of rising fuel costs, but the Government. “As part of the campaign fuel tax stands have been displayed at forecourts across the country showing that tax and Duty now account for 60% of the pump price of petrol and diesel. “The aim of campaign is to put pressure on the Chancellor to cut Fuel Duty by 5ppl over five years or at the very least to freeze Fuel Duty for the rest of this Parliament. “We genuinely believe that fuel tax unfairly penalises low income earners, single families and rural communities that often have poor public transport alternatives. Therefore we will continue to lobby the Government to cut or freeze Fuel Duty.” n


FORECOURT | UPDATES

Free membership for new Gulf dealers strengthens PRA In a huge and prestigious boost to the PRA any dealer joining the Gulf network will now receive free PRA membership as part of its support package. The arrangement is effective immediately and represents another determined effort by Gulf and GB Oils to strengthen the hand of the independent petrol retailer. The PRA’s Brian Madderson was thrilled with the partnership and said: ”This means that 310 Gulf-branded sites are going to come into PRA membership. This is the biggest single increase in membership since I have been here and which will once again mean that RMI total membership exceeds 8,000 for the first time in six years. That is a phenomenal achievement in a recession. “It is really important for us to have Gulf sites in membership and to have done this deal with GB Oils. It is hugely time consuming to convert retail sites one at a time so to be able to have GB Oils onboard with their Gulf branded sites, and for the sites to be retrospectively converted to PRA membership is significant for us. “Some of those sites are existing RMI members but even so this means something like an extra 250 members and that is really exciting.” PRA remains a beacon Ramsay MacDonald, Director of Retail, GB Oils, said: “With

governmental decisions all too often appearing to work against the independent, the RMI’s PRA remains a beacon for us all; fighting our corner, lobbying at the highest level and maintaining a strong and effective media profile. “That is why GB Oils, through Gulf, has agreed to become a corporate member of the RMI. We see huge benefits for petrol retailers in being part of this pro-active organisation, supporting the work of Brian Madderson and his trade body as they champion our cause. “Gulf dealers already benefit from a comprehensive range of services, covering everything from shop consultancy and health and safety to employment law. Our overriding aim is to provide a first class service that supports the independent to reduce costs, improve profitability and boost asset value. This initiative is another important and positive step in that direction and puts a whole wealth of expert advice at the disposal of our dealers.” Brian Madderson added: “Our tie-up with GB Oils creates benefits for all parties. We are delighted to be working with GB Oils who are 100% focused on the independent market and understand its challenges. Having the support of the Gulf dealer network can only serve to strengthen the hand of the RMI when lobbying for change.” n


PRA members back the campaign PRA member Nick Lloyd was one of those who hosted The Sun girls, photographer and reporter during the campaign. Nick, of Symonds Forecourts, said: “We got some terrific media coverage locally as well as nationally as a result of the campaign and the visit by The Sun team. “It was also hugely successful and effective with our customers. The PRA display made it easy to explain to our customers that it is the government who takes the big slice of the money they spend at the fuel pump, and the fuel retailers take only a fraction of it. “The feedback we got from our customers is that they were pretty much astounded to find out just

how little fuel retailers get out of every £30 they spend on fuel. “Even our staff, those who work with us, had no real idea just how little from each pound spent on petrol and diesel stays with the fuel retailer and no idea just how much goes to the Treasury. For our customers and for our staff this was a real eye-opener. “I think the real danger is that we will lose all the independents as motorists use hypermarket forecourts, and then once the independents have gone we will see fuel prices rise. “Now we have to make sure that the campaign maintains its momentum and is kept at the forefront of everybody’s mind.” n

PRA spells out the fuel realities PRA Chairman Brian Madderson pulled no punches when he opened the latest Forum event. He told delegates that there would be no let up in the PRA campaign to challenge the Government and its freshly reshuffled Cabinet over the key concerns facing PRA members and which threatened their turnover, their profits and in many cases their livelihoods and the continued existence of their businesses. He said that the main worries for our industry were fuel taxation, retail fuels resilience, retail pricing and the OFT. The recent and ongoing PRA campaign, supported by The Sun and the TaxPayer’s Alliance, has been hugely successful – as we report elsewhere in this issue – in raising awareness that out of every £30 spent at the pump, £18 goes to the Treasury and only £1 goes to the fuel retailer. The enormous amounts of

money involved mean that in total the Government takes in around £26Billion a year in fuel duty from motorists and almost £7.5Billion in VAT – in other words fuel retailers are collecting on behalf of the Treasury around £33.5Billion a year! For the PRA and for the motoring sector as a whole Brian told the Forum that in order to avoid an otherwise inevitable tax hike that would put another 7pence on a litre of fuel by April next year, the aim was to convince the Government to cancel the planned 3.02ppl rise in duty on January 1 2013 and to cancel the proposed April rise in duty. With the number of forecourts in the UK now well below 10,000, and with hundreds more forecourts threatened, especially in rural areas, Brian said action had to be taken if businesses vital to the economic and social wellbeing of the nation’s communities were to be preserved. n

UPDATES | FORECOURT

Madderson goes straight to the Prime Minister over key issues

With the PRA campaign hitting the headlines thanks to its partnership with The Sun newspaper, and with the Government reshuffle, Chairman Brian Madderson wasted no time putting across the concerns of members to the very highest in the land. In a letter to Prime Minister David Cameron, Brian said: “The ongoing demise of rural filling stations should be of particular concern to your Government. “There are still some 2,000 filling stations

still classified as “rural” providing essential jobs and services. Virtually 100% are independently owned and operated often by generations of the same family. It is vital that steps are taken to protect and preserve these businesses.” In his letter to the PM Brian also flagged up six key areas of concern to our industry: • Crippling and unfair business rates • Runaway forecourt development by superstores • Unfair pricing by oil companies

• A blind eye turned to illegal hand car washes • Below cost fuel sales by hypermarkets • Upfront fuel duty payments causing major cash flow problems Following his appointment in the Cabinet reshuffle to the post of Energy Minister, Brian also wrote to John Hayes MP, again highlighting the key issues facing Britain’s independent fuel retailers. n


FORECOURT | ADVERTORIAL

Christie + Co The Ones to Trust Valuing, buying or selling a forecourt is a job for specialists. Knowing the owner, business, its customers, protecting its reputation and paying proper regard to its plans for the future are all areas to which Christie + Co attach great importance when providing advice in the forecourt market.

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his was perfectly illustrated by their recent successful handling that resulted in the sale of Jones of Chelmsford - a successful petrol station and convenience store business that had been owned by brothers Chris and Peter Jones and their father for over 50 years. It was sold to a corporate operator for just under £2 million. Mark Page of Christie’s Ipswich office said: “This was an excellent family business and we were delighted to assist the Jones brothers during the transaction process.” Director and Head of Retail, Steve Rodell adds: “A long-standing family business such as this needs to make important decisions about its future based on well-founded professional advice. It is vital to seek such guidance from advisors experienced in the many options that are available especially when a high quality sought after concern such as this is involved. We used our local and national contacts to bring the Jones brothers together with the buyer and the deal is further evidence that convenience operators are keen to acquire forecourts where the site can accommodate core retail sales, even in towns where large supermarkets are present”. Handing over a thriving concern, or taking up a new business, are challenging ventures

and to ensure value is optimised advice should always be sought from a reputable specialist with a sound knowledge of the industry, the market and the metrics that affect the value of a forecourt business. That’s why so many operators turn to RICS (Royal institution of Chartered Surveyors) regulated Christie + Co to get the best deal in a tough financial environment. Steve added: “Where forecourts are concerned we look at location. Some clients have businesses in excellent locations which they are not currently trading to full potential or using space inefficiently. We look at the trading profile and history, site layout, traffic flow, volume of footfall, dependency on fuel sales and potential for additional income. We can often see potential that a seller or buyer might not be aware of.” Over 75 years of experience in this business gives Christie + Co a huge advantage. The firm’s commitment to clients has always been the guiding principle. Steve said: “We focus on building lasting relationships with our clients and this has been instrumental in the company growing to 14 UK and pan European offices”. Christie Group of which Christie + Co is a subsidiary moved into the AIM (Alternative Investment Market) in 2005 and is now


a market-leader in professional business services, including finance insurance, software solutions and stock and inventory control. The need for effective communication between client and company has always been a top priority. Christie + Co does this by leaving the channels open. Rodell said: “Our approach is to make all directors available to clients, which leads to close and effective working relationships.” Teams are also computer linked, so market changes are quickly noted and acted upon. The retail team at Christie + Co can draw on over 45 forecourt specialists from its comprehensive network providing the widest market coverage and unrivalled speed and agility when it comes to big projects. When buyers were circling the assets of TOTAL UK Christie + Co were engaged as specialist advisors by one of the private equity bidders. Our initial review of the entire portfolio not only included visiting over 400 UK wide petrol stations but also competing neighbours. This helps justify their reputation as the leading specialist surveyors, valuers and agents in the sector and this reputation has led them to providing advice to almost all the ‘Top 50’ independent forecourt operators. n


FORECOURT | FOCUS

PRA and The Sun

drive home the high fuel tax message The PRA joined forces with The Sun newspaper as part of a hugely successful nationwide campaign to tell motorists just how much tax they pay at the pump.

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he campaign also succeeded in bringing home to motorists just how little of the cash they spend on petrol and diesel goes to the fuel retailer and sparked a campaign in the House of Commons thanks to PRA supporter and MP Robert Halfon. The campaign was run in partnership with the TaxPayer’s Alliance and as part of the media blitz signs were put up at more than 5,000 fuel stations spelling out to motorists in detail the tax and duty split of every litre they buy. Motorists were staggered to discover that of every £30 spent by them at the pumps, £18 goes to the Treasury, £12 goes to the oil company and just £1 goes to the fuel retailer. The Sun raised the profile of the campaign as its Page Three girls joined in to highlight issues which helped win huge publicity not only in the country’s biggest selling national newspaper, but also in regional newspapers, and local TV and radio stations around the country. The Sun reported: “The Sun calls on the Chancellor to axe the 4p per litre tax rise due on January 1 next year. VAT and inflation-linked hikes will add another 3p in April. Average UK petrol prices rose three-quarters of a penny at the weekend to 136.94p a litre.” TaxPayers’ Alliance chief executive Matthew Sinclair said: “Fuel Duty is an excessive and unfair

burden on struggling families. It should at least be frozen for the rest of this Parliament.”

Huge media coverage for PRA PRA Chairman Brian Madderson said: “It is the first time that the PRA and the TaxPayer’s Alliance have worked together and joined forces to campaign for a reduction in fuel duty and we were delighted to get The Sun newspaper on board who gave us huge coverage. “The A5 card for fuel retailers, which they put on their counters, spelt out to customers exactly how much of what they spend on fuel goes to the government in duty and VAT and how little goes to the retailers. “We sent the A5 card to all our PRA members to display, we had 15 to 20 members arranged who were happy to talk to the media about the campaign and about the problems that the high levels of fuel duty are causing them. “As a result we got huge coverage in the regional press, TV and radio, we got exclusive coverage in The Sun and then the Daily Express picked up the story as well, and I did interviews for many of the main television news broadcasts: Radio 5, ITV DayBreak, LBC radio, ITN, Sky and half a dozen regional radio stations. “Our members have given us really good feedback, as so many of them were getting flak


from motorists who don’t understand that most of the money they spend on fuel goes to the government, fuel retailers are not profiteering and that what little does go to the fuel retailer is not their profit but has to cover all their operating costs.”

Fuel issue reaches House of Commons Following the PRA campaign the issue of excessive tax and duty charges on petrol and diesel took centre stage in the House of Commons as Conservative MP Robert Halfon opened a backbench debate. Accusing the major oil firms of being “uncompetitive” and of “rigging the market”, Mr Halfon said motorists were being forced into “fuel poverty” even though the government had postponed its 3ppl rise in fuel duty from August to January 2013. Mr Halfon’s motion, supported by MPs from all sides of the House, called for the OFT to launch a full investigation into the activities of oil firms in the UK. Tory MP Marcus Jones was among several MPs to claim that fuel prices differed across their constituencies and were often more expensive in rural areas. With the Office for Fair Trading having recently announced an inquiry into UK oil and fuel pricing, the OFT’s Claire Hart said: “We are keenly aware of continuing widespread concern about the pump price of petrol and diesel and we have heard a number of different claims about how the market is operating.” n

FOCUS | FORECOURT

Jordon Group help award-winning retailers on the road to success When your satisfied customers start winning major awards you can be sure you are doing something right. Family firm The Jordon Group are behind a group of garages that scooped nine Forecourt Trader Awards this year, two more than last.

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anaging Director Paul Jordon said: “We know this is quite an achievement for the businesses we have worked with. It was great to see one of our customers get an award for the best design and development. We can take real pride in their success.” The Jordon Group, based in Oldham, Lancashire, specialises in refrigeration, air-conditioning and shop refitting. For them only the best will do and they are prepared to source materials from anywhere in the world to make sure quality is never compromised. “That doesn’t mean we are extremely expensive – just that we are prepared to go the extra mile to get the right equipment, fixtures or fittings for our customer, whatever their needs, “ adds Mr Jordon “We can fit out a major store with hundreds of square feet of floor space, a corner shop or a forecourt. We import from the world’s largest refrigeration manufacturer, the Italian company Ameg Refrigeration, because their design and technology is the best there is. “We will fit basic air-conditioning for a small business, or equip a large retail outlet with

ventilation and extraction machinery. We travel the world sourcing timber for fittings, or tiles for floors. We know what works and where to find it at the best price for our customers. “They are all very important to us. We are as happy doing the little job worth £2,000 as we are taking on a major contract worth millions for corporate retailers.” The company was established in 1965, with Paul joining in 1982 and taking over the running of the firm in the 1990s. During that time he has seen his staff build up a skill base of expertise which cannot be bought elsewhere: “We have our own teams of retail design consultants who must have at least 80 years of experience between them. They have stayed with the company as we have grown, and that’s a bonus because we believe our own people will do a better job than any sub-contractor would. “Our way of working is straightforward. We go to the customer, say a garage forecourt, we listen to what they say and hear what their needs are. We take it all on board and then come back with ideas of our own, sometimes offering solutions to

problems that the customer has not even thought of. “That’s where our years of working together pay off. We are often called in to put right the mistakes another firm has made. It’s amazing how often the basics are ignored. Customers can come in and find themselves directed down a blind alley because the layout is so bad. Our time spent working with the client means that we don’t make mistakes like that.” Paul is also proud of his company’s safety record: “We have won awards ourselves for our care in the workplace, winning an Altius Assured Vendor award.” He added: “We never, ever, compromise on health and safety for our staff or in protecting the public. “We do things by the book, at the right price. We also offer customer support, especially to the independent sector where the challenges of renovation can seem overwhelming. There is a lot of choice out there, our job is to find exactly what is wanted and to fit it with the greatest expertise. When we see the businesses we have worked with winning awards for their layout we can feel confident of the contribution we made to that success.” n



Keeping the customer happy is key for every dealership – now Car Wash UK is helping top dealerships do just that Any busy dealership knows that there is one golden rule – keep the customer satisfied. That means getting the job done to the highest specification. It also means getting it done quickly. That is particularly true when the cars being serviced are high-end models whose owners cannot be kept waiting.

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et even after expert engineers have done their best, too many dealerships are cutting costs on the finer detail – the car cleaning. Every model has to leave looking pristine, but the washing facility can let the side down. Unreliable equipment and often hard-pressed staff trying to meet the challenges by hand can make a very slick operation look less than impressive. So this is where the Aquarama S3 comes in. An Italian-designed, professionals’ machine, the washer is already proving itself to be the one that industry experts want to have on site. Mike Ambrose, Managing Director of Car Wash UK Ltd, said of the Aquarama S3: “This really is the best there is. We find that where this equipment is installed we have had no breakdowns, something which in the past has been very difficult to achieve. “This is state of the art manufacturing. Everyone appreciates Italian design, but more than that, the engineering is so incredibly precise, right to the last detail. Laser cutters, which can run for three days without stopping, fabricate parts that fit together so accurately there is no need for welding. Everything is riveted together. All the fixings are stainless steel, so they will never rot or rust. It uses Omron Japanese electronics, recognised as the best in the world. Dealers base their reputations on reliability and good service – this machine will not let them down.” One very satisfied customer is the Hatfields

chain of dealerships, which service Jaguars and Land Rover. New dealership Hatfields Land Rover, Liverpool, decided to go for the best from the very start, installing an Aquarama S3 as part of the fixtures and fittings when they opened in the summer. More than 3,500 washes later it has not faltered once. For their discerning clients, this is only what they would expect – but may not get elsewhere. Mike added; “Hatfields are a major dealership in the UK. They knew this was the model they wanted from day one and it


was clearly an excellent choice. This model costs £30,000, not a small amount in today’s difficult markets, but when it becomes possible to reduce the time taken to wash a car from 20 minutes to six, you can immediately see that the service is much better. “When you consider the alternatives, such as getting in staff to hand-wash, which can involve employing one or even two people full-time, and then taking into account the extra time that valeting involves, then it soon becomes obvious how this machine can be cost effective.”. n



Cleaning up Forecourt Crime Forecourt crime cost the industry a staggering £23.4million last year. Now car wash leaders WashTec UK are pioneering a new security system by joining forces with market leading Dutch company BigBrother.

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opes are already high that before too long the problem of widespread drive-offs and fraud can be significantly reduced. It sounds like a tall order, but the new system is so simple, yet so efficient, it will leave the thieves with nowhere to hide. “This really is an exceptional system which is already operational throughout Europe. The benefits to forecourts are enormous” said Richard Sweet, Security Solutions Manager with WashTec. The statistics say it all. Of the £23.4million lost, £16.2million was down to drive offs, with another £4.6million due to customers who claim to have no means of payment and then fail to return to settle their debt. Garage owners are reduced to checking hours of CCTV footage, which often leaves them no closer to finding the culprit. The system, trademarked PumpWatch, could

put an end to all of that. Richard added: “I can’t stress enough how simple this system is to use. Images of the vehicle are recorded on the forecourt before any fuel is authorised. The licence plate is checked to see if the vehicle has previously been involved in a driven-off or in an incident in which fuel has not been paid for. “Images taken of the vehicle, driver and licence plate are stored together with other images taken elsewhere on site, such as the person paying at the cash desk. Cameras literally follow the action from the moment the nozzle is removed from the holster.” Retrieval and viewing of recorded images is very simple as all filling events are saved individually and can be searched by pump number, staff member involved, licence plate, and items purchased in store.


Because PumpWatch is constantly recording vehicle licence plates and monitoring the activity onsite, the system can provide useful behavioural statistics and business intelligence which can used to monitor the effects of promotions in store, changes in fuel pricing, promotion of car washing amongst other areas. Site operators can also access PumpWatch remotely when offsite allowing for greater managerial control. According to Richard Sweet, PumpWatch can work with both analogue and digital cameras. This means that high definition cameras can be installed for business critical areas. In addition existing cameras can be integrated with the system in order to keep investment levels down. Richard added: “PumpWatch has proved itself as a valuable management tool to site operators, much more so than a traditional CCTV system”. n


REGULARS | ALLIANZ

REGULARS

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Thieves target “cats” – Allianz advice on fighting

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Legal update from RMI specialists MILS

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HR Q and A puts HR at your fingertips

Catalytic C

The BBC recently reported that the police are battling a vehicles are relative

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etween 1st January and the end of May 2012, the Nottinghamshire force recorded 249 thefts, compared to 47 in the same five months last year. But the problem isn’t confined to just Nottingham, it’s UK wide and is showing no signs of decline.

Why the cat converter? Most modern cars are fitted with catalytic converters. There isn’t much metal in a catalytic converter. But the catalyst itself – which makes the converter work - can cost thousands of pounds per ounce. It is typically made up of three precious metals - platinum, palladium and rhodium. Although only very small amounts of these metals are used in a catalytic converter, the value of these metals has risen by between half and six times in the past 58 • AUTOMOTIVE INSIGHT • WWW.RMIF.CO.UK • OCTOBER/NOVEMBER ‘12

few years, making them a target for thieves. Experts say a thief can remove a converter in a few minutes and sell it for up to £200. Police suspect that stolen converters are often shipped overseas to countries where the precious metals can be extracted. However, chances are most drivers don’t even know where the device is on their vehicle - but thieves do! It’s incredibly easy to steal and it’s a crime which doesn’t seem to show any signs of decline.

So why are catalytic converters such a hot item? As air quality rules tighten, manufacturers increase the amount of the catalyst metals to keep up. This demand drives the price up, making the catalytic converters doubly attractive.

ALLIANZ | REGULARS

Converter Theft

huge rise in the theft of catalytic converters, chiefly from commercial vans and 4x4s, as these ely high off the ground and their “cats” are easy to access. “The reason these thieves are stealing them is because it’s easy,” says Mark Ashwood, Motor Trade manager, Allianz Commercial. “All they have to do is spend a short time amongst the vehicles on a forecourt, loosening some bolts and a short while later, the thieves can be driving away with a dozen or so catalytic converters.” Of course many thieves are not so considerate and use a portable reciprocating saw, damaging the exhaust systems still further in the process. Fairly typical examples of such thefts are incidents involving eight cars on one site, £5,000 worth from another garage, 40 units from another area, and so it goes on. It’s not unusual for dealers to suffer repeated attacks on their displayed vehicles, making this a really annoying and costly crime. The fact so many are disappearing doesn’t shock Mr Ashwood: “With the price of the scrap

coupled with the value of the part, and how easy it is to steal, I’m not surprised at all.”

So what can you do to protect yourself? For your private car(s) – try to park in a well lit, safe and secure place, ideally covered by CCTV; where a stranger with a saw or other instrument would be instantly suspected. At home, when possible, keep your car(s) in your garage instead of on your driveway. The quieter and more isolated your parking place is, the greater the chance of a theft. For your business each commercial premise is unique. Its location, local populous, type of buildings and perimeter, business and stock type etc, will have a bearing on its security needs, so each site needs its security to be tailored to suit. Security is often a balancing act of the possible, practical, economic and necessary,

and even then you may not get it right first time. It is something that has to be constantly monitored and reviewed against the background of the ever changing country we live in. Leading insurance companies like Allianz Insurance Plc are no strangers to this type of problem. Their surveyors visit thousands of policyholders’ commercial premises each year and provide risk management advice on a range of issues – this is just one of the many ways insurance companies such as Allianz try to help their customers. Don’t forget, an experienced insurance surveyor has probably visited thousands of other business premises, and learned from that experience. If there is a realistic and practical solution to your risk management problem, s/he will have the answer; after all, they want your business to be safe, secure and successful just as much as you do. n


REGULARS | LEGAL ADVICE

RMI Quarterly Update: Employment Law Autumn 2012 It has been a season of Government proposals. In this update we take a look at the Business Secretary’s recent announcements on settlement agreements and the cap on unfair dismissal, the Government’s earlier proposals in respect of collective redundancy consultation and future changes to employment tribunal procedural rules. 1. Government proposals on Settlement Agreements and Unfair Dismissal The Business Secretary’s proposals to reform employment law have been widely publicised in recent weeks. There are two main proposals: Settlement Agreements The Government has been keen to look at ways of encouraging employment disputes to be settled rather than litigated. As many employers know, it is already possible for employers and employees to agree ‘compromise agreements’ to end an employment relationship on agreed terms. The new Government proposals would rename compromise agreements as ‘settlement agreements’ and also give employers more ‘without prejudice’ protection in relation to conversations about a proposed termination deal, without such conversations being used against them in evidence in a future unfair dismissal claim. The proposals have been much criticised by lawyers however, who point out that, if properly advised, the present arrangements for compromise agreements already cover many of the risks areas that the Government is trying to minimise. The proposals do however include a new ACAS code of practice, incorporating templates for settlement agreements and optional model letters to be used by employers. The consultation closes on 23rd November 2012, so we will probably know more about the detail of the changes to the law next year. New cap on compensation for Unfair Dismissal The Government has published consultation on the proposal to introduce a lower cap on unfair dismissal compensation (presently £72,300). Under the current proposals the Government would have very wide powers to decide to lower the cap. It could be set at an amount between 1 and 3 times median annual earnings, or 52 weeks pay, whichever is the lower of those two figures. The proposals are certainly to be welcomed by employers. This consultation also closes on 23rd November 2012, so the detail of the actual change to the law will probably not be known until next year.

2. Collective redundancy regime consultation Recently the Government launched a 3 month consultation on proposed changes to the

collective redundancy consultation regime. The changes are aimed at creating a more effective regime that will enable employers to restructure more quickly and cost effectively and provide employees with greater certainty. In summary the Government proposes the following package of measures: reducing the current 90 day consultation period in relation to redundancies involving 100+ employees to either 30 or 45 days; introducing a non statutory Code of Practice; and providing

judge in all cases once the claim and response forms have been received. This will enable the judge to consider what directions are required to get the case ready for a hearing and to strike out claims, responses (or parts) which have no reasonable prospect of success;

improved Government Guidance. The intention is that the Code will provide clarity on contentious issues but will also allow sufficient flexibility to allow parties to adapt the consultation process to their specific needs. The following areas of uncertainty will be covered by the new Code of Practice: • What is an ‘establishment’? • Whether the expiry of fixed term contracts should be treated as redundancies for the purposes of collective redundancy consultation; • When redundancy consultation should start and end; • What and who the consultation should cover; • Who should be consulted; and • Consultation in insolvency situations.

matters and substantive preliminary issues;

The interaction of collective redundancy consultation rules with the legislation applicable to the transfer of undertakings is to be addressed by the Government as part of its review of the Transfer of Undertakings (Protection of Employment) Regulations 2006. At present if an employer fails to comply with its collective redundancy consultation obligations the Employment Tribunal may make a protective award of up to 90 days’ actual pay. The award is intended to be punitive so the Tribunal’s starting point is 90 days’ pay. The Government has confirmed that it does not propose to reduce the amount of this protective award.

3. Review of Employment Tribunal Rules Published The findings of Mr Justice Underhill’s review of the employment tribunal rules of procedure have been presented to the Government. Measures aimed at simplifying and streamlining the tribunal process and cutting costs include: • An early “paper sift” by an employment


• Removing the current distinction between case management discussions and pre-hearing reviews. These would be replaced by a “preliminary hearing” which could decide both case management

• Requiring tribunals to encourage parties to use Acas or judicial or other mediation with a view to settling claims where possible; • Simplifying the rules on default judgments; • Allowing tribunals to set timetables for oral evidence and submissions and to enforce them by guillotines where necessary; • Allowing tribunals to make costs awards exceeding £20,000, rather than requiring costs in such cases to be assessed by the County Court; • Removing the need for the respondent to apply to have a claim dismissed where it has been withdrawn by the claimant. Instead, tribunals will issue a judgment dismissing the claim (meaning that the claimant cannot commence a further claim raising the same or substantially the same complaint), unless at the time of withdrawal the claimant reserves the right to bring a further claim and the tribunal is satisfied that there is a legitimate reason for doing so; and • Allowing the President of the Tribunals to issue guidance on matters of practice so that employment judges across the tribunal service manage cases in a consistent manner. Mr Justice Underhill was asked to undertake a review of the employment tribunal rules as part of the Government’s Response to the Resolving Workplace Disputes Consultation. Responding to the review, the Government said that it will announce its intentions in due course and a formal consultation on the review’s proposals will take place later this year. n

LEGAL ADVICE | REGULARS


REGULARS | RMI HR

RMI

HR

RMI HR is a complete HR system at your fingertips, unique in its design as it is written specifically for the Automotive Industry. You now have access to leading processes and practices, enabling you to recruit, measure and retain your people as well as guiding you professionally and effectively through the complexity of employment and consumer legislation. www.rmif.co.uk/members/hr

Q A

Can employees be dismissed for criminal acts outside of work?

Many employers assume that if one of their employees committed a criminal act outside of work, particularly something serious that the employer found particularly distasteful, the employer would have the right to dismiss the employee. Unfortunately this is not always the case and even some serious criminal acts outside of work can only be used by the employer to the extent that they affect employment. The dismissal, if the employee has over the requisite length of service for Unfair Dismissal, will still need to satisfy the provisions of the Employment Rights Act 1996, to be a fair dismissal. The kind of criminal acts which might give rise to a fair dismissal will usually be violent or dishonest offences which affect the job. In the motor industry other common examples are driving offences, particularly those that lead to the loss of a license. n

Q A

Do I have any legal responsibility to provide a Grievance Procedure?

Although the statutory dispute resolution procedures have been removed, they have been replaced by the ACAS code of practise on disciplinary and grievance procedures. The ACAS code is designed to help employers and employees resolve grievances effectively in the work place. Although the ACAS code is not a statutory procedure, if not followed it could result in any successful claims at an Employment Tribunal having increased compensation awarded against the employer. It is recommended therefore that a grievance procedure is always followed. This can begin on an informal basis but if this is not successful then a formal procedure should be followed. In accordance with the provisions of the Employment Rights Act 1996, guidance on your grievance procedure should be included in your employee’s written Statement of Particulars. Alternatively they may refer the employee to a document where the grievance procedure may be read, for example in a staff handbook. The ACAS website provides guidance on the format for a grievance procedure. n

Q A

How long should I wait before I take any action with an employee on long term sickness absence?

There is no legal timeframe to wait where an employee is signed off as unfit to work and thereafter continues to submit doctors’ note supporting the absence. It will all depend on the nature of the post occupied and the impact their continued absence is having on the business, together with the difficulty and cost of continuing to deal with their absence. It will also depend on the nature of the absence, for example someone with a broken leg is naturally going to be off for a certain period of time in order for the injury to heal. It would be easier in that situation to assess when the employee would be fit to return. However if an employee is off with stress, that is harder to evaluate and it would be beneficial for the employer to make enquiries in the form of a medical report (subject to the employee’s consent). There is equally no definition of ‘long term’ and therefore if an employee is absent for, say, a month or longer, it may then be appropriate to start making enquiries as to their health and wellbeing. Each situation depends on the facts presented and therefore, if in any doubt, it is recommended you contact the RMIF’s legal team. n

Whilst every care has been taken in compiling these responses, Automotive Insight cannot be held responsible for any errors or omissions; the advice is not intended as a substitute for specific legal advice. For further information and/or advice regarding any of the issues raised above or any other HR & Employment related questions please visit www.rmif.co.uk/members/hr. To submit questions please use the feedback button on the site. 62 • AUTOMOTIVE INSIGHT • WWW.RMIF.CO.UK • OCTOBER/NOVEMBER ‘12

