Audatex survey reveals growing AI appetite

A new survey by Audatex has revealed a growing appetite among bodyshops for the greater use of artificial intelligence solutions.

Conducted between July and August, the survey examined the attitude towards AI in estimating among the Audatex repairer community.

It found that 56% of respondents believe AI could increase estimating efficiency, 51% said it could improve customer service and half thought it could also streamline and accelerate the parts ordering process.

Meanwhile, the survey also asked respondents what their biggest challenge was at the moment, with two thirds citing recruitment. In terms of reducing cycle times, parts ordering was the single greatest issue for 54%, 45% said it was waiting for insurer approval with 46% saying it was the time taken to do assessments.

Delving deeper into the numbers, the report found that the average estimating time for a lightly damaged vehicle was 16-30 minutes, 31-60 minutes for vehicles with medium damage and anything from an hour upwards for heavily-damaged vehicles.

Audatex said, “There is no denying that there is an appetite for AI to support the industry. To tackle the challenges of the ongoing skills shortage we need to build trust in AI and see it as an enabler to do more with a smaller, highly skilled workforce.”

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Copart creates new jobs in Scotland

Copart UK is opening new CashForCars headquarters in the Fife area, creating a raft of new jobs.

CashForCars is Copart’s sister company which buys directly from customers and re-sells them through Copart’s patented online auction platform.

Since launching in the UK and Ireland last year, it has experienced rapid expansion and as a result has invested into new executive offices in Kirkcaldy, Fife.

Its team includes specialist vehicle buyers and customer sales advisors, as well as technologists and marketeers. The company is already anticipating further job opportunities and is now actively recruiting customer sales representatives.

Mark Godfrey, director of strategy, marketing, Copart, said: “As we continue to increase our footprint in Scotland, we’re delighted to announce significant investment into the Fife area with the opening of our new headquarters.

“As CashForCars.co.uk continues to grow, supported by Copart’s extensive operational capabilities, we fully expect to bring further expansion and job opportunities to this area of Scotland.”

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Tesla sets standard in safety ratings

Electric vehicles dominated the latest round of Euro NCAP testing, with all but one of the models assessed achieving a five-star safety rating.

Setting the benchmark was the Tesla Model Y, which achieved the highest score ever (98%) in the Safety Assist category. It also scored 97% in Adult Occupant Protection.

Matthew Avery, Chief Research Strategy Officer, Thatcham Research, said, “The Tesla Model Y has aced testing, securing outstanding all-round safety ratings. However, it’s a shame that unresolved issues remain with regard to the safe operation of its Autopilot system.” 

Meanwhile, Chinese models the ORA Funky Cat and WEY Coffee 01 scored 93% and 94% in Safety Assist respectively, falling short of the Model Y only in crash-avoidance capability.

Matthew added, “All the cars tested in this group are EVs, as electrified powertrains continue to dominate the market, and it’s reassuring to see that EVs are continuing to match, if not exceed, the safety performance of their petrol-powered counterparts.

“Also of note are the five-star Euro NCAP ratings awarded to two new entrants from China. This is comforting news for those who were concerned that an influx of new market entrants from China might bring the safety standard down.” 

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EV skills gap to hit a year early

More technicians underwent EV training in the first half of 2022 than ever before, but it’s still not enough to meet demand with the Institute of Motor Industry now suggesting the skills gap will hit crisis point a year earlier than expected.

The IMI found that in the first six months of the year more technicians took an EV qualification eligible for IMI TechSaf recognition since its introduction in 2016.

It reports there are now 32,900 technicians qualified to work safely on electric vehicles – the equivalent of 15% of in the UK.

However, as the uptake of EVs continues to accelerate it says the shortfall between qualified technicians and vehicles on the road will now hit in 2027. This is based on Auto Trader’s latest Alternative Fuel Vehicle (AFV) parc data, which predicts there will be nine million pure EVs on UK roads by 2030.

Steve Nash, CEO of the IMI, said, “We have stood shoulder-to-shoulder with our automotive industry peers and the education sector to bang the drum to government about the critical importance of bolstering investment in EV training. The significant uptick in technicians seeking EV qualifications this year, which in turn makes them eligible to obtain IMI TechSafe recognition, is incredibly positive and proves our collective efforts have paid off.

“Furthermore, indications are that the third quarter of 2022 will see record numbers continue, which is fantastic news for the automotive industry.”

Ian Plummer, Commercial Director, Auto Trader and a Non-Executive Director of the IMI added: “As increasing numbers of motorists transition to EVs it is vital that the infrastructure is there to keep them on the road. A hugely significant part of this is the ability to get vehicles serviced and repaired safely, quickly and efficiently. Therefore, it is crucial to ensure that the investment is made now in the skills training that is essential to ensure a smooth road ahead for EV adoption.”

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ARC360 news round up – Friday 9 September   

Register NOW! 

webinARC: technology in motor claims 2022 

Wednesday 21 September @ 1.30pm 

In this webinARC we look at the latest ways in which technology is being used to seamlessly connect the motor claims cycle. 

ARC360 Market Intelligence: September 2022

Take a look at this months ARC360 Market Intelligence report, powered by Trend Tracker.

NBRA: six-month cap not enough 

The National Body Repair Association has welcomed the government’s announcement this week that it will impose a cap on energy prices for businesses, but warned that the six-month time-period may not be long enough. 

Executive Director Chris Weeks said, “We are pleased to see the government taking action to support business with the increasing energy costs prices. However, we are still extremely worried for our members, who will still need support after the six-month timeframe.” 

Mirka introduces PPE range 

Mirka UK has introduced personal protective equipment (PPE) to its Mirka Essentials range. 

The collection includes masks, glasses and overalls and has been launched to offer repairers a complete choice of high volume, good quality consumables at a competitive price. 

Fix cements partnership with Morelli 

Fix Auto UK has officially elevated Morelli to one of ‘preferred supplier’ status as the network continually strives to provide its Franchise Partners with unrivalled industry services and support. 

Steer extends maternity leave 

Steer Automotive Group has announced a change to its Family Leave policy. 

It will now offer colleagues full pay for 18 weeks maternity leave followed by half pay for a further 18 weeks, with remaining leave paid at statutory rates. The company has also introduced two weeks full paternity leave. 

Murray secures Solus role 

Solus Accident Repair Centres has appointed Adam Murray as Head of Technical for Engineers.  

Apollo Lords it with apprenticeship winners 

Apollo Motor Group attended the House of Lords this week to collect its Top 100 Apprentice Employer award. 

The event was sponsored by the University of Nottingham, Manchester Metropolitan, UCAS, Investors in People and Department of Education. 

RWC adds auto-glazing to course portfolio 

RWC Training will add the IMI Auto-Glazing Bodyshop Technician Accreditation to its portfolio of nationally recognised courses from next month.  

The course will allow bodyshops to bring glass removal and refitting skills in-house and retain full control of their repair cycle times. 

East Bilney celebrates audit success 

East Bilney Coachworks has announced that its Great Yarmouth Site has passed an unannounced BSI Audit. 

OEMs moving towards network ownership 

Automotive Business Consulting at Grant Thornton UK Owen Edwards has said that automotive retail in Europe is increasingly adopting an agency model, and suggested the next step could see manufacturers owing their own dealer network. 

He said, “In Europe many OEMs are rolling out the agency model for their dealers. The agency model is not allowed in the US, however, some of the OEMs are going down the vertically integrated retail route and buying out their dealers. Is this the opportunity for the OEMs to go one step further and own their own dealer network?” 

Frosts achieves Volvo approval 

Milton Keynes-based Frosts Accident Repairs has become a certified repairer for Volvo. 

As a Volvo-approved bodyshop, Frosts guarantees customers that its technicians are fully trained and that equipment, facilities and repair methods comply with Volvo’s own competence standards.  

NBRA welcomes Synetiq as part of green parts push 

UK salvage, dismantling and vehicle recycling company Synetiq has joined the NBRA in a bid to raise awareness and uptake of green parts. 

Research has found that nearly 30% of bodyshops do not use green parts in repairs, although most say this is down to resistance among customers and work providers. 

EDAM promotes Entwistle 

Darren Entwistle has been promoted to Head of Commercial Supply at EDAM Group.  

Tesla sets new safety benchmark 

The Tesla Model Y scored the highest ever rating (98%) in the Safety Assist category in the latest round of Euro NCAP assessments. 

It also scored 97% in Adult Occupant Protection, while Chinese models the ORA Funky Cat and WEY Coffee 01 scored 93% and 94% in Safety Assist respectively. 

Trent commits to recycling standard 

Warwickshire-based recyclers Charles Trent has joined forces with Bournemouth and Poole College to create the UK’s first classroom standard for automotive recycling. 

The collaboration will offer students the opportunity to learn new skills and experience cutting-edge technology now being used in recycling end-of-life vehicles. 

Thatcham Research makes Automotive 30% commitment 

Thatcham Research Chief Executive Jonathan Hewett has joined the Automotive 30% Club.  

Club members pledge to ensure that 30% of senior positions within their organisation are held by women by 2030. 

Jonathan said, “Through Thatcham Research’s membership of the Automotive 30% Club, we are demonstrating our support for change across the industry. I am excited to see where this new chapter takes us on our journey to become a more diverse and inclusive organisation.” 

EV training failing to match demand 

Record levels of training in the first half of 2022 has not been enough to keep pace with rapid uptake of EVs, with the Institute of Motor Industry now suggesting the skills gap will hit crisis point a year earlier than expected. 

It says 15% of UK technicians (32,900) are now EV qualified, but with up to nine million EVs on the road by 2030 it believes the gap between qualified technicians and customer demand will hit in 2027. 

Major independent falls into admin

East Yorkshire-based Broach Hill Garage has fallen into administration, citing the pandemic, supply disruption caused by the microchip shortage, and falling sales of used vehicles as the primary factors. 

Administrators from Leonard Curtis are handling the sale of all assets of the business, which has been trading for nearly 50 years. 

Group 1 acquires BMW/MINI dealership 

Group 1 Automotive has acquired a BMW/MINI dealership and an accident repair centre in Southend. The move brings the company’s UK operations to 56 dealerships (79 franchises) including five ‘Collison Centers’. 

Cazoo to exit European markets 

Cazoo has announced it will shut down all European operations by the end of 2023 and focus exclusively on its UK business. 

It says operating on the continent would require too much additional investment and will save up to £100m net by exiting markets in Germany, Spain, France and Italy.

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ARC360 Market Intelligence: September 2022

Market-Intel-September-2022

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Fix cements partnership with Morelli

Fix Auto UK has officially elevated Morelli to one of ‘preferred supplier’ status as the network continually strives to provide its Franchise Partners with unrivalled industry services and support.

Managing Director Ian Pugh and Morelli’s National Sales Director Ruth Moring-Beale officially cemented the two companies’ relationship this week by signing a contract that ensures Morelli’s position as one of the network’s two preferred suppliers of all goods including paint and ancillaries, consumables and tools and equipment.

A key element of the agreement ensures Morelli, which has enjoyed a close working relationship with Fix Auto UK for several years, has direct access to its network of 118-fully branded repair centres through its Regional Business Management team.

Fix Auto UK Managing Director Ian Pugh, said: “I am delighted to say we have officially cemented a close working bond with Morelli for the greater good of our Franchise Partners.

“As our network continues to grow and mature it has become increasingly apparent that we need to further strengthen our ties with key industry suppliers if we are to maintain our high service levels. Being able to provide our Franchise Partners with access to the latest products, processes and sustainable profit options for the benefit of their businesses are at the very core of the services we provide and Morelli helps us to deliver that service.”

Ruth Moring-Beale, National Sales Director for Morelli, said: “Morelli Group is delighted to be part of Fix Auto UK’s plans for the future and to cement the bonds we already have across the network. Our aim is to bring our value-added programmes to the Franchise Partners and show the value of our partnership with the profit-driven, sustainable products and innovative ideas that Morelli are known for.”

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NBRA fears government support may fall short

The National Body Repair Association has welcomed the government’s announcement this week that it will impose a cap on energy prices for businesses, but warned that the six-month time-period may not be long enough.

Executive Director Chris Weeks said, “We are pleased to see the government taking action to support business with the increasing energy costs prices. The announcement was much needed and it will give relief to our members that are facing utility bills that have risen by more than 250% in the past year.

“However, we are still extremely worried for our members, who will still need support after the six-month timeframe.

“The nature of our work means that we are high users of electricity and gas. We estimate that the average body shop uses 160,000kWh/year of electricity and 400,000 kWh/year of gas, which equates to bills of £65k total in the year to June 2022.”

Chris added, “Bodyshops play a vital role for the automotive industry and are crucial to our communities, therefore financial support from government is imperative to keep them in business.”

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Mirka launches PPE range

Mirka UK has introduced personal protective equipment (PPE) to its Mirka Essentials range.

The collection includes masks, glasses and overalls and has been launched to offer repairers a complete choice of high volume, good quality consumables at a competitive price.

Steve Smith, National Sales Manager ART, Mirka UK, said, “We’ve brought together a strong range of Essentials products under one roof, offering bodyshops choice, quality and value-for-money across the product lines they use every day.  With PPE now being introduced there’s virtually every product category available from a single supplier.”

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Recovery stunted despite August upturn

The Society of Motor Manufacturers and Traders has reported that the UK new car market rose by 1.2% in August, with 68,858 new vehicles joining the roads.

However, while this represents the first growth month since February, August volumes were the lowest since 2013 (bar 2021) and mean year-to-date registrations are still down 10.7% on last year and 35.3% lower than the first eight months of pre-pandemic 2019.

Electric vehicles remain a source of optimism for the industry, with August growth recorded at 35.4% to see them occupy a 14.5% market share. Although here too the recovery is stalling, with year-to-date increases now at 48.8% compared to the 101.9% growth rate recorded in the first quarter.

Meanwhile, the UK light commercial vehicle (LCV) market fell by 24.6% to 15,520 units last month, meaning this sector has now experienced an entire year of decline.

Mike Hawes, SMMT Chief Executive, said, “August’s new car market growth is welcome, but marginal during a low volume month. Spiralling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry’s post-pandemic recovery, and we urgently need the new Prime Minister to tackle these challenges and restore confidence and sustainable growth. With September traditionally a bumper time for new car uptake, the next month will be the true barometer of industry recovery as it accelerates the transition to zero emission mobility despite the myriad challenges.”

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