Auto Retail Agenda: 6 March 2023
03 March 2023
- BLOCK EXEMPTION: ‘TOO MUCH LEFT UNSAID’
- CAZOO WILTSHIRE WORKERS ‘IN LIMBO’
- TORY COUNCILLOR QUITS OVER GRANGE MOTORS GREEN BELT
- SIGN UP NOW FOR FREE AUTO RETAIL LIVE BRIEFING
- GERMANY AND ITALY U-TURN ON 2035 ICE BAN
- GEELY LAUNCHES NEW GALAXY EV BRAND
- US RETAILER AND OEM TENSIONS OVER NEW SALES MODELS
- STOCKWATCH
- COMING UP: February new car registrations
- ENERGY PRICE GUARANTEE TO BE EXTENDED
- R&D TAX RELIEF TO BE CUT IN BUDGET
New block exemption: ‘too much left unsaid’
The NFDA has raised concerns that replacing current retained block exemption rules (MVBER) with an aftermarket instrument “broadly in line with the status quo” does not go far enough to retain today’s “healthy levels of competition” in UK automotive marketplaces.
The draft Motor Vehicle Agreements Block Exemption Order (MVBEO) “may leave too much unsaid”, says the NFDA, and wants these issues addressed “given their potential indirect effects”.
The NFDA has reminded the Department for Business and Trade (DBT) and CMA of the pre-2017 market landscape – and warns there is a “disconnect between current and imminent market realities, and the historic evidence base upon which new regulation has been proposed”.
The NFDA submitted its response to the DBT consultation on MVBEO last week. In it, the NFDA outlined market trends and the possible implications of future sales models such as agency.
The IGA also last week called for further MVBEO clarifications, to make it clear consumers know they are free to choose who repairs their vehicle. IGA chief executive Steve James is concerned there is no requirement for in-vehicle messaging, and believes further changes are required to ensure consumers are not financially disadvantaged.
Cazoo Wiltshire workers ‘in limbo’
Cazoo’s preparation centre in Wiltshire is likely to close on 17 March, putting 150 jobs at risk. Surveyors were reportedly seen at the site in February but an insider admitted “we’re all in limbo wondering what is going on because we have not been told”.
Arnold Clark has bought Cazoo’s customer centres in Chertsey and Northampton for £10.5m; Peter Vardy has also acquired the Cazoo customer centre in Grangemouth and its Livingston vehicle preparation centre.
Cazoo has confirmed it will only keep customer centres open in Birmingham, Bristol, Chertsey, Lakeside, Manchester, Northampton and Wembley. It will also only retail three vehicle preparation centres in Bristol Bedford and Staffordshire.
Tory councillor quits over Grange Motors green belt
A Conservative councillor has quit following the approval of plans for Cambria’s Grange Motors to consolidate its Aston Martin, Bentley, JLR and Lamborghini retailers at a newbuild site on green belt land. The new site in Brentwood, reported last week in Auto Retail Agenda, will create extra jobs, growing Grange’s full-time roles from 46 to 170.
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WORLD NEWS
Germany and Italy U-turn on 2035 ICE ban
An EU plan to ban internal combustion engines by 2035 has been stalled by Germany and Italy. They are demanding exemptions for cars that run on synthetic fuels. Efuels are considered carbon neutral and can help extend the life of combustion engines.
Geely launches new Galaxy EV brand
China’s Geely, which owns Volvo, Polestar and Lotus, has introduced a new brand for PHEVs and EVs, called Galaxy. It will launch seven models, including three EVs, within two years. The first cars will be PHEVs and deliveries will begin in Q2 this year.
Galaxy will be positioned above the mass-market Geometry brand, and below premium brand Zeekr.
- Learn all about the retail opportunities of China’s exciting brands with the Auto Retail Network New Entrants Report
US retailer and OEM tensions over new sales models
Tensions are emerging in the US between franchised retailers and legacy automakers over new sales models. Retailers are keen to secure their independence and avoid unfair competition by an OEM; manufacturers argue some of the franchise laws are outdated, add unnecessary cost and make it harder to adapt to changing customer expectations.
Some states, such as Virginia, are proposing laws preventing OEMs from negotiating the sale or lease of a vehicle directly with consumers. Automaker body the Alliance for Automotive Innovation CEO John Bozzella responded he’s “never seen this many bad state bills” before.
STOCKWATCH
Closing prices on 3 March 2023 and weekly change
Auto Trader Group 588.8p (-7.6p / -1.2%)
Caffyns 500.0p (n/c)
Halfords 202.6p (-2.2p / -1.0%)
Inchcape 911.0p (-4.0p / -0.4%)
Lookers 90.8p (+0.6p / +0.6%)
Motorpoint 140.0p (-3.0p / -2.1%)
Pendragon 18.4p (-0.55p / -2.9%)
Vertu 61.6p (+1.0p / +1.6%)
COMING UP
Monday, February new car registrations
Tuesday, Halifax house price index
Thursday, RICS housing market survey
Friday, UK GDP
MONEY MATTERS
Energy price guarantee to be extended
The £2,500 energy price guarantee is poised to be extended for a further three months. The ceiling was due to rise to £3k a year from April. It will cost the government around £3bn; the aim is to retain it until wholesale prices have fallen so far that it becomes unnecessary.
R&D tax relief to be cut in budget
R& D tax relief for small businesses will be cut in the budget. However, support for targeted sectors such as AI and biotechnology will remain. The plans will save £215m and cut down on fraud, says the Treasury, although critics say such relief contributes far more to the economy.
Tags:
agency, Arnold Clark, Auto Retail Live, Block Exemption, Budget, Cazoo, Chancellor, Devonshire Motors, Geely, Grange Motors, IGA, Inchcape, MVBEO, MVBER, NFDA, Peter Vardy 
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