ARC360 news round up – Friday 27 January 2023       

ARC360 Podcast: Dean Lander 

In this episode – recorded late in 2022 – we speak with Dean Lander, Head of Repair Sector Services at the insurers’ automotive research centre – Thatcham Research. 

Car insurance premiums on upward trajectory 

Comprehensive car insurance prices rose for the fifth quarter in a row to reach an average price of £629. 

According to the Confused.com Car Insurance Price Index, produced in association with WTW, premiums rose seven per cent in the last three months of 2022 to cap a 19% overall increase throughout the year. 

FCA warns of waning Consumer Duty focus 

The Financial Conduct Authority (FCA) has warned that some companies are falling behind in their planning for the introduction of the Consumer Duty regulations. 

Consumer Duty, which will require evidential proof that companies are putting customers first in every area of their business, comes into force on 31 July. 

EV influence grows at Euro NCAP 

Full electric vehicles made up more than a third of all models tested by Euro NCAP last year. 

According to its annual Year in Numbers review, 22 of the 65 models tested were zero-emission EVs. Meanwhile, five out of its six Best in Class winners were also electric. 

Diversity Network launched to promote inclusion 

The Institute of the Motor Industry (IMI) has launched the Automotive Diversity Network, enabling Equity, Diversity and Inclusion (EDI) leaders to share best practices and help the sector develop a more inclusive workforce. 

Car production falls to 66-year low despite EV spike 

UK car production fell to the lowest level in 66 years in 2022 as the crippling global shortage of semiconductors decimated manufacturing. 

Output through the year was 9.8% down from 2021 and a worrying 40.5% lower than pre-pandemic 2019, when 1,303,135 units were produced compared to 775,014 last year. 

IMI appoints new Centre of Excellence 

The Institute of the Motor Industry (IMI) has named Lincoln College as its latest IMI TechSafe Centre of Excellence.  

It is the first further education college in the UK to offer specific EV and ADAS qualifications, while also teaching staff and trainers from other institutions. 

Ben offers up London Marathon places 

Automotive charity Ben is offering colleagues in the automotive industry the opportunity to take part in the world-famous London Marathon. 

It has also launched a new virtual challenge, Benathon, which takes place in March. 

Claims figures fall to lowest recorded level 

The latest data from the Compensation Recovery Unit (CRU) has revealed a sharp fall in the number of injury claims. 

The number of motor injury claims has nearly halved (44% reduction) since 2018, with the 84,247 claims submitted during the latest quarter of 2022 the lowest figure on record. 

People 

Toyota Insurance Services Europe has appointed Paul Collins as Performance & Partnership Manager. 

Direct Line Insurance Group CEO Penny James has stepped down with immediate effect. 

Ageas has appointed Rashmi Rao Chief Information Officer (CIO) while Stephen Linklater has been named Claims Director. 

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Car production falls to 66-year low despite EV spike

UK car production fell to the lowest level in 66 years in 2022 as the crippling global shortage of semiconductors decimated manufacturing.

Output through the year was 9.8% down from 2021 and a worrying 40.5% lower than pre-pandemic 2019, when 1,303,135 units were produced compared to 775,014 last year.

This is according to the Society of Motor Manufacturers and Traders (SMMT), which also found that output in December alone was down 17.9%.

However, factories did produce a record 234,066 battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) electric vehicles, with combined volumes representing almost a third (30.2%) of all car production.

There was also good news in the commercial vehicle sector, where production grew 39.3% in 2022 to 101,600 vans, trucks, taxis, buses and coaches. This is despite a fall of 23.6% in December.

Mike Hawes, SMMT Chief Executive, said, “These figures reflect just how tough 2022 was for UK car manufacturing, though we still made more electric vehicles than ever before – high value, cutting edge models, in demand around the world. The potential for this sector to deliver economic growth by building more of these zero emission models is self-evident, however, we must make the right decisions now.

“This means shaping a strategy to drive rapid upscaling of UK battery production and the shift to electric vehicles based on the UK automotive sector’s fundamental strengths – a highly skilled and flexible workforce, engineering excellence, technical innovation and productivity levels that are amongst the best in Europe.”

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FCA warns of waning Consumer Duty focus

The Financial Conduct Authority (FCA) has warned that some companies are falling behind in their planning for the introduction of the Consumer Duty regulations.

Consumer Duty, which will require evidential proof that companies are putting customers first in every area of their business, comes into force on 31 July.

However, the FCA has found that while some organisations are on track for compliance, others have not yet made material progress.

It has urged those organisations to focus on three key areas in the next six months: Prioritise the areas that will make the biggest impact on outcomes; concentrate on improving communication with customers; develop stronger relationships with supply chains to ensure all commercial partners are delivering good outcomes.

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said, “Given the scale of the reform, we recognise that some firms need to make significant changes. For firms which are further behind in making the necessary changes, there is time to put that right and for them to show they are acting in the spirit of the new Duty.”

However, the review has set the alarm bells ringing at DataLab, which believes the FCA findings should be a real concern for the insurance industry.

Co-founder Matt Scott said, “The regulator has highlighted a number of areas where insurers are falling behind their expectations and it has raised some very real concerns that insurers may not be ready in time. It has also raised the fact that it believes some insurers may also struggle to effectively embed Consumer Duty within their business without a change in approach.

“The idea of Data Strategies was explicitly referred to in this review for the first time, and it expressed concern that insurers were not properly considering their data requirements when it comes to monitoring customer outcomes.

“At Insurance DataLab we want to work with our partners to help insurers improve customer outcomes through proper monitoring and analysis of data across a range of customer experience points. At a time when the scrutiny from the FCA is intensifying this doesn’t only make business sense, but it is also becoming a regulatory imperative.”

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Ben offers up London Marathon places

Automotive charity Ben is offering colleagues in the automotive industry the opportunity to take part in the world-famous London Marathon.

The iconic event takes place on 23 April, when about 50,000 runners are expected to take on the 26.2-mile route.

To take part, participants will need to raise £2,000 for the charity and pay the £60 entrance fee.

Ben supports individuals through life’s challenges, empowering them to make positive, lasting change. It offers free and confidential online self-help, helpline and other support services. 

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ARC360 News Round-Up: Friday 20 January 2023

Tesla’s Model Y triumphs at safety awards

Tesla’s Model Y was the safest car launched onto the UK’s roads in 2022, according to What Car? Safety Awards.

It was selected from a 10-car shortlist based on its Euro NCAP safety test scores as well as technology innovation, mass-market appeal and assisted driving technologies.

Enterprise and Ford tackle skills shortage

Enterprise Holdings has announced a new partnership with Ford to support the development of future automotive skills.

The collaboration will see Enterprise’s Collision Engineering Program, a two-year apprenticeship model, introduced to a seventh US college with the Ford Fund offering to scholarships to students.

Audatex updates AEG

Audatex has released its latest version of AudaEnterpriseGold in Ireland, adding 28 new and 124 updated model sheets to its vehicle database.

Part prices are now available for all models apart from the DAF XF, Genesis G70, Genesis GV80 and MG ZS, which will be added when information from the manufacturers becomes available.

Copart secures Carbon Literacy Silver accreditation

Copart UK has continued on its path to net zero by achieving Carbon Literacy Silver Accreditation.

The accreditation recognises Copart’s commitment to tackling climate change, reducing carbon emissions, and working towards the overall commitment to achieve net zero by 2040.

Picture perfect solution for Gemini ARC

Gemini ARC has announced a new partnership with JDK Technology to provide imaging solutions throughout its sites during the lifetime of a claim.

From initial accident damage images to create reliable estimates and advanced parts ordering through to final handover, the solution will enable bodyshops to keep a digital record of every stage of the process to safeguard all parties.

The technology has already been rolled out to 31 Gemini sites, with relevant training provided.

NBRA calls for government crack-down on repair delays

The National Body Repair Association (NBRA) is urging the government to do more to bring down ‘exceptional’ waiting times for vehicle repairs, which it believes is costing bodyshops upwards of £600m.

It has written to the Secretary of State calling for tougher time limits to be set with fines and compensation payments for claims which are delayed unnecessarily.

Chris Weeks, NBRA’s executive director, said, “Insurers are trying to keep costs as low as possible, but this is causing major backlogs with drivers waiting up to two months for their vehicles to be repaired. Many of these delays could be avoided if insurers allowed consumers the choice to use a non-insurance contracted repair centre.”

Solera joins Mercedes on F1 grid

Solera has signed a new multi-year partnership with the Mercedes-AMG PETRONAS Formula One team.

From next season its brand will appear on the car and on the left sleeve of the driver, pit crew overalls, and team clothing.

iRG Pontypridd celebrates repair certification

iRG Pontypridd has successfully passed a two-day BS10125 Audit.

The Kitemark confirms that all repairs carried out on site are completed by competent, fully-trained technicians using the correct tools and following approved repair methods. 

White still tops car colour charts

White remains the most popular car colour in the world, with black, grey and silver also dominating the colour charts.

BASF’s Colour Report for Automotive OEM Coatings found that red and blue are also still popular choices, with yellow, orange, green, and violet all gaining market share in most regions.

DfT proposes MOT updates

The Department for Transport is considering an update to MOTs to bring them into line with new technologies. It is also proposing changing the date for first tests for new cars from three years to four years.

It has now launched a public consultation to gauge industry opinion about such revisions.

Hayley Pells, Policy Manager at the Institute of the Motor Industry, said, “The advances seen in automotive technology and systems, for improved performance and safety as well as reduced environmental impact, mean the current MOT model is well overdue for review and the IMI welcomes the announcement of this public consultation.”

Arenacross Tour favourite to wear Fix Auto UK colours

Fix Auto UK has announced that professional Supercross rider Joe Clayton will wear the network’s colours during the 2023 Arenacross Tour, which starts at the SSE Arena in Belfast today (Friday 20 January).

OIC settlements still stalled

The latest Official Injury Claim data has revealed that the average time from claim to settlement has increased in each of the last three quarters.

Settlement times rose from 175 days in the second quarter of 2022 to 207 days in the third quarter to 227 in the last three months of the year.

Automotive Glass Europe announces rebrand

Automotive Glass Europe has marked its 15th anniversary by rebranding to Automotive Glass Experts.

The company specialises in the repair and replacement services of automotive glass, while offering a variety of complimentary services such as wiper replacement and film application.

The rebrand will support its continued global expansion strategy, which has already seen it acquire members in Canada, Africa, and Asia, as well as Europe.

School of Thought announces India Foundation

School of Thought has announced the inauguration of the first pupils for the School of Thought India Foundation. School of Thought has worked with Mr Guru Ba Raju to create a programme to bring young students into the automotive industry.

People News

Service Certainty has promoted Richard Eadie to Managing Director. He succeeds Graham Clarke, who will now focus exclusively on helping sister company Glasscare achieve its strategic ambitions this year.

Specialist loss adjuster QuestGates, has appointed Chris Edwards to the newly created role of Motor Development Director.

Ben Childs is joining Zego as Technical Claims Manager.

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ARC360 Market Intelligence: 2022 summary

2022-Year-End-Summary

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Repairify appoints Slater to key growth position

Repairify has appointed global sales and marketing professional Philip Slater to the role of International Product Manager.

He will be responsible for expanding the company’s overseas markets and entering new territories, while helping to deliver insights and products that align with customers’ requirements.

Phil Peace, Managing Director (SVP) International for Repairify, said, “Philip’s significant expertise in delivering international growth, founded on data-driven insights and strategic sales and marketing campaigns will enable the business to accelerate its global ambitions.”

Philip added, “In all capacities during my career, I’ve leveraged data to inform strategy and decision-making, converting insights into accessible, clear, and actionable objectives.  I’m relishing the opportunity to help deliver Repairify’s international plans.”

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ARC360 news round up – Friday 6 January 2023       

Market dynamics: 2022 and beyond 

It seems that for a decade or more the familiar refrain within the industry has been that it’s changed more in the past five years than the previous 50. 

Before Covid-19, the rapid development of technology was the prime driver of that change. 

While that is still true, the pandemic has thrown a raft of new disrupting dynamics into the mix – many of which appear to be here for the long term. 

Fix Auto UK reaches Trustpilot landmark 

Fix Auto UK has become the only vehicle body repair network in the UK to record 10,000 customer reviews on Trustpilot. 

Franchise partners collectively have achieved an ‘excellent’ customer service rating, with an average score of 4.6. 

Safest cars of 2022 revealed 

Thatcham Research has revealed what it considers to be the safest models released last year. 

As the lead contributor to the European New Car Assessment Programme (Euro NCAP), it has reported that all the cars tested during the past 12 months scored at least a four-star safety rating for the first time in the programme’s history, with 80% receiving the highest five-star accolade. 

EV sales outstrip diesel in record year 

Battery electric vehicles outsold diesel for the first time ever in 2022. 

According to the Society of Motor Manufacturers and Traders, EVs comprised 16.6% of all new registrations last year after claiming their largest ever monthly market share in December (32.9%). 

Gemini goes live with new website 

Gemini has followed up the unveiling of its new logo by going live with a revamped and refreshed website. 

The website is accessible from any digital device and includes a new ‘Connect with our branches’ section to enable users to quickly and easily find their nearest Gemini site. 

Motor premiums continue steady climb 

Average motor insurance premiums have increased 17.4% in the last 12 months. 

Data released by Consumer Intelligence found that the average motor premium has now risen to £877, which represents a rise of 32.3% since Consumer Intelligence first started recording prices in October 2013. 

IMI calls for renewed focus on EV training 

The IMI has urged the industry not to let the economic downturn reduce focus on EV training. 

Its data has revealed that 16% of the sector is now IMI TechSafe qualified, with more than 11,500 technicians undergoing the training in the first nine months of 2022. However, it has noticed that the pace of training is waning. 

Enterprise agrees Geotab partnership 

Enterprise has signed an agreement to become an authorised Geotab reseller in the UK, France, Germany, Spain and the Republic of Ireland. 

As part of the deal, Enterprise customers will be able to fit Geotab’s telematics fleet management solutions across all their vehicles, regardless of whether they are rented, leased or owned. 

Chesterfield College enhances EV training 

Chesterfield College has invested in an electric vehicle to further develop its training capabilities. 

With the support of Stoneacre Motor Group and Samuel Smart it has acquired a fully electric Peugeot E 208 GT Premium, enabling students to benefit from practical learning. 

WorldSkills CEO reveals apprenticeship focus 

WorldSkills UK CEO Neil Bentley-Gockmann has said that an apprenticeship roundtable hosted by Edge/SDS highlighted three areas critical to future skills entering the industry. 

He said it was agreed that the apprenticeship system needs to be more flexible to respond to changing skills needs, that there needs to be an increased focus on general yet essential employability skills, and more needs to be done to promote apprenticeships to diverse groups to develop greater equality within the workforce. 

People 

Avant Repair Network has named Chris Ryder as Managing Director. 

Rob Pugh has started a new position as Commercial Director at Fix Auto UK. 

Derren Wootton has been appointed as Bodyshop Manager at MG Accident Repair Centre. 

Colin Drain has announced his retirement after nearly 27 years at BASF Automotive Refinish. He has been Regional Technical Manager since 1996.  

LKQ Corporation has appointed Daniel Watkins as Head of Network Relationship Management. 

Richard Ketley has resigned from his role as Head of Network, Car and Commercial Repair Network at Innovation Group.  

The directors of MG Cannon and Business Success Global have reached agreement to separate the two businesses, with Robert Snook resigning as a director of MG Cannon and Vince Scudder resigning as a director of BSG. 

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IMI calls for renewed focus on EV training

The IMI has urged the industry not to let the economic downturn reduce focus on EV training.

Its data has revealed that 16% of the sector is now IMI TechSafe qualified, with more than 11,500 technicians undergoing the training in the first nine months of 2022. However, it has noticed that the pace of training is waning.

Steve Nash, CEO, said, “As of the third quarter of 2022 there were 36,000 EV qualified technicians eligible for IMI TechSafe accreditation. The sector should be very proud of how it has responded to the call for EV upskilling. However, we are now in a dangerous place in terms of continued commitment to skills matched to EV adoption.”

He said that although demand for EVs is slowing, the industry would be wrong to become complacent and think the pressure to upskill has been reduced.

Steve continued, “The last thing we need now is for the sector to believe it has more time to get the workforce properly skilled. The reality is the automotive aftermarket already faces high employment replacement demand caused by an aging workforce, migration and occupation mobility. The uptake of automotive apprenticeships also has not caught up with pre-pandemic levels.

“There is, therefore, no time to waste. It is crucial the sector continues to train and skill its workforce at significant rates. But with current economic pressures there is concern that training budgets will be the first to be cut.”

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Safest cars of 2022 revealed

Thatcham Research has revealed what it considers to be the safest models released last year.

As the lead contributor to the European New Car Assessment Programme (Euro NCAP), it has reported that all the cars tested during the past 12 months scored at least a four-star safety rating for the first time in the programme’s history, with 80% receiving the highest five-star accolade.

Matthew Avery, Thatcham Research chief research strategy officer, said, “Thatcham Research actively promotes innovation in both impact protection and crash avoidance technologies, and as leading advocates for the Euro NCAP programme, it is satisfying to see 50 out of the 66 cars tested in 2022 achieving a five-star rating, resulting in perhaps the strongest safest cars list we have seen.

“This is something for which carmakers should be applauded, and we are pleased so many are continuing to prioritise motorist and vulnerable road user safety – especially during times of great technological and economic disruption.”

Meanwhile, nine of the 10 models are either full electric or hybrid, emphasising the growing range of zero emission vehicles entering the UK market.

The 10 models are: BMW X1; Hyundai Ioniq 6; Lexus NX; Mazda CX-60; Mercedes-Benz EQE; Nissan Ariya; ORA Funky Cat; Smart #1; Tesla Model Y; and the Toyota bZ4X.

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