Auto Retail Agenda: 9 August 2021
08 August 2021
- PLUG-IN GRANTS GIVEN THREE MONTHS EXTRA
- DROP IN ADMIN CUTS VINES’ LOSSES
- RETAIL GROUPS NAMED IN DBEIS UNDERPAYMENT LIST
- HIGH WYCOMBE EYED FOR RYBROOK PORSHCE AND BENTLEY SITES
- BIDEN COMMITS US TO 50% EV SALES BY 2030
- CARGURUS Q2 PROFITS ROCKET
- STOCKWATCH – INCHCAPE SHARES UP
- COMING UP – VERTU BOSS ON ITV
- UNEMPLOYMENT HAS ALREADY PEAKED
- GAS PRICES SET TO SOAR
Government lengthens Plug-in Vehicle Grant orders by three months
The Government has granted a temporary extension for the completion of Plug-in Vehicle Grant orders to account for current production shortages, according to the NFDA.
The organisation received word from the Office for Zero Emission Vehicles (OZEV) that it would add an additional three months’ grace for orders made via the Plug-in Grant Portal between 5 November 2020 and 5 August 2021 to reach ‘awaiting payment’, ‘awaiting audit’ or ‘completed’ status.
Retailers usually have nine months to complete such orders, but the OZEV said it would “continue to allow 12 months for new orders placed on the portal for a six-month period. This period will end at 23:59pm on 4 February 2022”.
It added that it “may consider further extensions to the 12-month period depending on the state of the market at this point”.
Drop in admin cuts Vines’ losses
BMW and Mini retailer Vines, which operates franchises in the south of England, has reported a loss before tax of £196,082 in its annual report for the year to 31 December 2020 – a significant improvement on its 2019 equivalent of £1,733,053, however the loss figure includes more than £2 million in Government grants.
Admin expenses fell by £1,322,651 to £22,547,847 but were bolstered by £2,011,426 in Government grants. New vehicle sales were down by 689 to 2,585 units and used by 260 to 3,037.
The US-owned group said the pandemic’s effect meant it performed below its original expectations for the year, pointed out that it “outperformed the BMW network average in sales penetration of total industry volume” which was 7.8% for BMW and 5.2% for Mini.
It also reported a 2.5% increase in labour margins, said the manufacturer’s target reductions and “static” volume target for 2021 had “alleviated the necessity to self-register cars” and noted its “simplified target and bonus arrangement” introduced this year.
Retail groups named in government low-pay list
The Department of Business, Energy and Industrial Strategy has named two top 10 franchised groups, among other motor trade businesses, for historic offences in its latest list of companies found to have underpaid employees.
Marshall Motors failed to pay 16 workers an average of £551.02 in 2017 while Vertu underpaid 63 workers an average of £93.67 between 2012 and 2017.
Commenting on the Government list, Marshall CEO Daksh Gupta said: “I 100 percent support the Government’s sentiment of getting employers to pay staff fairly. However, this needs some context. In our case, which covers 16 individuals over four months in 2017 and was due to a technical error which was sorted within 24 hours of being identified.”
In Vertu’s case a spokesperson said: “This refers to an historic issue that was resolved. The accidental underpayment, an average of £13 per person involved per year, was caused by a complex salary sacrifice scheme and the underpayments were corrected in 2018.”
A handful of other automotive companies including rental firms, independent garages and repair specialists were among the smaller outfits named by the Government for discrepancies, which took place between 2011 and 2018.
A total of 191 businesses where named by the government, all of which have repaid the workers impacted.
High Wycombe eyed for Rybrook Porsche and Bentley sites
Buckinghamshire Council is said to have received an application from a developer to build a facility earmarked for a Porsche and a Bentley dealership in High Wycombe.
Dealership Developments of Warwick – which, according to Companies House, is controlled by Rybrook Holdings – is allegedly planning to overhaul a former leisure centre at Handy Cross, on Marlow Hill, currently used for vehicle storage. Plans include a 3,935sqm two-storey Porsche Centre, a 1,655sqm two-storey Bentley dealership and a 492sqm single-storey workshop, including an MoT testing facility, EV charge points with roof-mounted solar panels and 263 parking spaces. If established, the sites will purportedly create 88 jobs.
Elsewhere, Warrington Borough Council has received a planning application to demolish Rybrook’s Jaguar dealership, which was reportedly closed on 30 June – and extend and refurbish the Volvo showroom on the same site.
The application states that “the Jaguar dealership will be demolished and the external vehicle display and parking areas will be reconfigured to improve site safety”.
WORLD NEWS
Biden commits US to 50% EV sales by 2030
US president Joe Biden signed an executive order on Thursday mandating that half of all new vehicles sold in the country in 2030 must be electric.
The move is said to have the backing of US manufacturers and coincides stricter vehicle emission proposals for the rest of the decade.
CarGurus Q2 profits rocket
CarGurus has reported a 130% increase in turnover for the second quarter of 2021, with revenue of $217.7m. Subscription income from its listings marketplace rose by 80% to $144.2m, $134.1m of which was in the U.S.
STOCKWATCH
Closing prices on 6 August 2021 and weekly change
Auto Trader Group 643.8p (-8.2p)
Cambria 80.0p (-1.5p)
Caffyns 403.1p (-46.9)
Halfords 361.0p (+5.2p)
Inchcape 898.0p (+47.5p)
Lookers 70.3p (+6.2p)
Marshall Motor Holdings 236.0p (+23.0p)
Motorpoint 354.0p (+2.0p)
Pendragon 18.0p (no change)
Vertu 46.4p (-0.4p)
COMING UP
Tuesday, Auto Retail Live Q3 Briefing, register: https://bit.ly/2VqjVhP
Thursday, ONS GDP first quarterly estimate
Thursday 9pm, Vertu chief Robert Forrester to appear on ITV’s Undercover Big Boss
MONEY MATTERS
Unemployment has already peaked
The Bank of England says unemployment has already peaked at 1% above pre-pandemic levels, ahead of full easing of the Government’s furlough support.
Gas prices set to soar
Ofgem is warning of a widespread increase in gas prices from October due to a 50% leap in wholesale energy costs in the past six months.
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