ARC360 News – Friday 18 August 2023

EVs and the insurer perspective

More than nine out of 10 attendees at ARC360’s specialist EV event, EV-olution, predicted a ‘noticeable’ or ‘significant’ increase in electric vehicle claims in the next two years.

However, most do not foresee EVs becoming the majority of their claims/work mix for some time yet.

It is exactly this variable volume and unknowable timeline that has left many businesses in a state of uncertainty – committing to EVs is costly and for many there is no guarantee of a swift return on an investment.

NBRA announces Rowley as director

The National Body Repair Association has announced that Martyn Rowley has been appointed as new Director.

He takes over from Chris Weeks, who has become Managing Director of the Evolution Repair Group.

e2e introduces daily reports

e2e has partnered with Incited to transform the way insurers can interrogate and apply total loss data to inform business decision making.

It has innovated its management information and reporting function to ensure vehicle loss data is updated every 24 hours.

Copart opens new Staffordshire site

Copart UK is now operating from a new 10-acre site in Staffordshire.

The new facility will provide the company with storage for an additional 7,000 vehicles per annum in Hixon, boosting vehicle storage capacity in the West Midlands by 15%.

EVs drive used car revival

Surging sales of electric vehicles powered a 4.1% rise in the UK’s used car market in the second quarter of the year.

According to the Society of Motor Manufacturers and Traders, 1,832,267 units changed hands between April and June, with used electric vehicle sales soaring by 81.8% to 30,645 units.

Copart secures IMI accreditation

Copart UK has become an IMI-approved EV training provider. It is now able to deliver IMI TechSafe electric and hybrid vehicle training across its nationwide Operation Centres.

Copart will initially focus on Level 2 and Level 3 training.

Fix Auto UK expands Northern Ireland presence

Fix Auto UK has doubled the number of its repair centres in Northern Ireland with the announcement that Crash Repair Saintfield will now operate as Fix Auto Saintfield.

The 6,000 sqft repair centre includes two spraybooths and six workbays and repairs up to 20 vehicles a week.

Nationwide Vehicle Recovery Assistance extends WHU partnership

Nationwide Vehicle Recovery Assistance has extended its vehicle collision recovery and storage management partnership with West Ham United.

The relationship goes back eight years, with Nationwide Vehicle Recovery Assistance becoming an official Club Partner last year.

Thatcham Research joins 3D printing task force

Thatcham Research has joined the 3D Printing Task Force for the Automotive Collision Repair Industry.

The task force brings together experts in 3D printing and automotive to support collaboration, idea-sharing, and the development of safe and regulated practices.

IMI welcomes Electric Vehicles inquiry

The IMI has welcomed the news that the government is launching an inquiry into the challenges of EV adoption.

It has urged the enquiry to focus on incentives, price and availability, charging infrastructure and end-of-life disposal.

Understanding BS10125

The BSI has produced a podcast explaining the vehicle repair standard, BS10125.

Matthew Chiles and Cindy Parokkil highlight the 10 things businesses need to know about the industry standard.

Fix Auto UK acquires Fix Auto Cheltenham

Fix Auto UK has taken over as the majority shareholder in Fix Auto Cheltenham.

The network has bought the shares from businessman Andrew Emery, while fellow director Kieran Humphries will retain his shares and position as Operations Director.

IMI CEO inducted into Hall of Fame

IMI CEO Steve Nash has been welcomed into The Motoring Hall of Fame in recognition of his work for the automotive industry.

He said, “I am committed to helping to improve standards in our industry and the service we provide to motorists and will continue to champion the importance of professionally competent technicians to support the evolution of the motor industry and the growth of the sector, whatever challenges may lie ahead.”

BMW trials hydrogen vehicles

BMW is piloting a fleet of nearly 100 hydrogen vehicles. The BMW iX5 offers a range of 313 miles, with the 700-bar tanks able to be filled up in three to four minutes.

Thatcham Research gears up for industry rallies

Thatcham Research is restoring a Mazda MX5 ahead of the AutoRaise and Bangers4Ben rallies, which start on 7 September and 7 October respectively.

The Mazda was donated by Copart UK.

Vehicle recalls added to MOTs

The Drivers and Vehicle Standards Agency (DVSA) has announced that vehicle recalls will now appear on MOT test certificates to enhance road safety.

AI cameras catch 297 drivers in three days in Cornwall

A new artificial intelligence (AI) camera caught almost 300 drivers breaking the law in its first three days of operation.

The camera, installed on the A30 in Cornwall, caught motorists using their mobile phones or not wearing seatbelts.

New webinar to provide unique AI insight

ARC Support Services will host a webinar at 7pm on Wednesday, 21 August examining the software available that can help individuals and businesses achieve better outcomes.

Healey heading to golf final

Fix Auto Birmingham East owner Ben Healey along with Dave Underwood of Turner Aviation, Clayton Redhead of Dunlop Aircraft Tyres, and Anthony Cunnington of Swift Abrasives secured their place at the final of the Ezi Methods Golf Challenge after topping the annual Fix Auto UK golf competition at The Belfry.

People

Nikolay Boychev has been named Senior Body Repair Network Compliance Manager at Tesla.

OUTSORC has appointed Mark Shaw as Global Product Manager.

Ash Holmes has been appointed as Senior Research Engineer at Thatcham Research.

EVs and the insurer perspective

More than nine out of 10 attendees at ARC360’s specialist EV event, EV-olution, predicted a ‘noticeable’ or ‘significant’ increase in electric vehicle claims in the next two years.

Only eight per cent expected the rise to be minimal.

However, most do not foresee EVs becoming the majority of their claims/work mix for some time yet, with 32% saying it would take another six to nine years and 28% saying nine to 12 years. A further eight per cent did not think it would happen for another 12-15 years with just one per cent expecting EVs to overtake ICE vehicles in under three years.

It is exactly this variable volume and unknowable timeline that has left many businesses in a state of uncertainty – committing to EVs is costly and for many there is no guarantee of a swift return on an investment.

Challenge

For insurers, this poses a significant challenge in terms of both underwriting and repair capacity.

LV= and Direct Line Group have taken slightly different approaches to these challenges, but in each case the focus is on close collaboration with repairers.

Speaking during a session entitled, EVs and the insurer perspective, Chris Payne, Head of Networks & Engineering, LV= Insurance, said, “We’ve been quite aggressive in the electric vehicle market over recent years and have quite a chunk of the marketshare. We have our own EV policy proposition which is going well.

“EV claims volumes are quite low for us, but we need to make sure we’ve got the capability ready for the future. We have about 100 approved repairers nationally and we also have 37 sole sites across our partners. They are not owned by LV=, but they are 100% dedicated to LV=.

“We have minimum standards across all our sites because regardless of volumes, all repairers need to be EV ready. We understand that is a challenge, but we need repairers, they’re fundamental to our business, so we give us much investment support to our repairers as possible to make sure they have the right skills and training and tooling and equipment.

“It is a collaborative approach. We talk to them to understand their challenges and help them overcome them as quickly as we can, and for us it’s a great way to test and learn new and better ways of working.”

Own network

DLG’s model is slightly different. It operates its own bodyshop network and although volumes are still small invests heavily in its repairers to ensure they are EV-ready.  This means continuous investment in tooling and training.

Maria Loukadaki, Motor Repair Specialist, Future Technology Specialist, Direct Line Group explained, “We think it is easier to keep EV repairs in our network. We can control the costs and it gives our underwriting team valuable data. We can also control the quality of the job by making sure our people are trained and they are following the methods. It is a big investment to remain fit for the future, but even if you just have one EV on site the process needs to be there.”

However, both Chris and Maria agreed that EVs do present challenges. New models from China are entering the market and not all come with established repair methods – Chris called for greater regulation around this – while their sustainability credentials will remain in question until batteries are more easily repaired or recycled.

Maria said, “Manufacturers want us to replace rather than repair, but how long can we keep throwing good parts away and remain sustainable? They need to consider repairability in design and talk to the industry more. We are not their competitors. We want to insure and repair their vehicles so they need to talk to us more.”

Chris agreed, “The biggest step-change will come when we start repairing batteries instead of writing them off. In 10 years’ time we need to be repairing batteries and battery cells. But we need manufacturer support to get there. The common denominator to all of us is customer retention – manufacturers and insurers both want to retain customers but if cars are not easy to repair we’re going to price that vehicle out of the market. Customers won’t buy them and manufacturers won’t sell them.”

Future

Going forward, more change is coming. It is unlikely that EVs will be the majority powertrain in the UK car parc by 2030 despite government intentions, but they are not the only change impacting the sector.

“The challenge doesn’t stop with EVs, it starts with EVs,” warned Maria. “At DLG, our vision is to make sure the customers remain our focus. We need to make sure we can repair their vehicles no matter what technologies they have in them, and that our products are relevant to them.”

EV-olution was held at the Manufacturing Technology Centre, Coventry with the support of sponsors Thatcham Research and Control€xpert, as well as Corporate Partners and Partners.

ARC360’s specialist EV-olution event was sponsored by Thatcham Research and ControlExpert, along with ARC360 Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, and Solera Audatex, and Partners: Gemini Accident Repair Centres, Repairify, and Prasco UK.

Nationwide Vehicle Recovery Assistance extends WHU partnership

Nationwide Vehicle Recovery Assistance has extended its vehicle collision recovery and storage management partnership with West Ham United.

The relationship goes back eight years, with Nationwide Vehicle Recovery Assistance becoming an official Club Partner last year.

Mick Jennings, Managing Director at Nationwide Vehicle Recovery Assistance, said, “We are delighted to extend our partnership with West Ham United. The Club provides a fantastic platform for us to promote our services, and we are excited to support their Premier League and UEFA Europa League campaigns this season.”

West Ham United Chief Commercial Officer Nathan Thompson added, “We are delighted with the continued support that Nationwide Vehicle Recovery Assistance has demonstrated to the club through the extension of our partnership. Their growing involvement with West Ham United is a testament to the fantastic relationship we’ve developed over the years, and we are excited to continue our journey together.”

Fix Auto UK expands Northern Ireland network

Fix Auto UK has doubled the number of its repair centres in Northern Ireland with the announcement that Crash Repair Saintfield will now operate as Fix Auto Saintfield.

The news comes 18 months after the network made its first appointment in the region with the appointment of Fix Auto Lagan Side.

Situated seven miles outside Belfast and established by panel technician Maurice Connor in 2013, the business encompasses a 6,000 sqft repair centre complete with two spraybooths and six workbays. It employs seven people and repairs up to 20 vehicles a week.

Maurice said, “Repairing vehicles to the highest standards is a given for us, but we truly believe the business has so much more potential, being part of Fix Auto UK will help us achieve our ambitions to further grow and develop. The advice and guidance I’ve already received has been instantly invaluable to further improve our productivity.”

Ian Pugh, Managing Director of Fix Auto UK, said: “Maurice and Jenna join the network brimming with the attributes we look for, ambition and desire to develop. They’ve instantly embraced our branding and business support we’ve been able to provide and the signs are instantly showing that Saintfield will be another exciting addition to the network.” 

Copart to deliver IMI TechSafe training

Copart UK has become an IMI-approved EV training provider.

It is now able to deliver IMI TechSafe electric and hybrid vehicle training across its nationwide Operation Centres.

Copart will initially focus on Level 2 and Level 3 training, but plans to expand its offering in line with further sustainability developments, such as hydrogen vehicle awareness.

Sarah Oakman, Training Manager at Copart, said: “We are now fully focused on establishing Copart as a high-quality and high pass rate centre for EV courses, initially operating out of our HQ in Bedfordshire with a view to setting up further locations to cover the north and south of England in the future.”

Duncan MacRae, Head of Performance, Quality and Risk, added: “At Copart, we continually invest in training and upskilling our teammates to ensure that their knowledge is always relevant and up to date, enabling us to maximise value and deliver a world-class quality level of service to our customers, whilst delivering our Plan Net Zero sustainability commitment.

“With the electric car parc continuing to grow and evolve, it’s vital that we remain strongly focused on delivering specialist training alongside the EV handling infrastructure, equipment, and processes we’ve already established over the last decade.”

EVs drive used car market revival

Surging sales of electric vehicles powered a 4.1% rise in the UK’s used car market in the second quarter of the year.

According to the Society of Motor Manufacturers and Traders, 1,832,267 units changed hands between April and June, which is 72,583 more than the same period last year.

Used electric vehicle sales soared by 81.8% to 30,645 units, with double-digit growth also recorded for both plug-in hybrids (11.4%) and hybrids (29.5%).

Mike Hawes, SMMT Chief Executive, said, “It’s great to see a recharged new car sector supporting demand for used cars and, in particular, helping more people to get behind the wheel of an electric vehicle. Meeting the undoubted appetite for pre-owned EVs will depend on sustaining a buoyant new car market and on the provision of accessible, reliable charging infrastructure powered by affordable, green energy. This, in turn, will allow more people to drive zero at a price point suited to them, helping accelerate delivery of our environmental goals.”

e2e introduces daily data reports

e2e has partnered with Incited to transform the way insurers can interrogate and apply total loss data to inform business decision making. 

It has innovated its management information and reporting function to ensure data loss data is updated every 24 hours. Clients are also able to select their own data ranges for time series comparison analytics, monitor KPIs and benchmark their results against anonymized, aggregated market data. 

Meanwhile, e2e will enhance the service further by the end of the year by introducing predictive analytics, SalvageMarket auction data and reclaimed parts data.

Jim Loughran, CEO at e2e said: “The total loss market represents untapped commercial opportunities for insurers and access to high quality data will enable them to identify, evaluate and act on those opportunities. Static monthly reporting simply cannot provide the business insights they need. 

“The creation of our data platform and our new, interactive approach to MI reporting is part of our business strategy to be the premier data-led and technology-enabled provider of salvage claims management and fulfilment services.”

Copart opens new Staffordshire site

Copart UK is now operating from a new 10-acre site in Staffordshire.

The new facility will provide the company with storage for an additional 7,000 vehicles per annum in Hixon, boosting vehicle storage capacity in the West Midlands by 15%.

This news follows a series of recent land investment announcements from Copart, including new sites in Corby (Northamptonshire) and East Kilbride (Scotland) as well as continued expansion at their Operation Centres in Rochford, Sandtoft, Westbury, and Wisbech.

Jane Pocock, CEO of Copart UK & Ireland, said, “We’re delighted to boost vehicle storage capacity in the West Midlands as part of our ongoing reinvestment strategy into land, transport, services, and technology.

“With an increasingly diverse UK car parc and extreme weather events becoming more commonplace, especially as we head into the winter months, expanding our provision of storage capacity is vital.

“We’re committed to further developing and expanding Copart’s strategically positioned operational network across the UK, providing close proximity to communities and customers so that we can collect, handle, and store vehicles quickly, efficiently, and with minimal environmental impact.”

NBRA announces Martyn Rowley as new Director

The National Body Repair Association (NBRA) has announced that Martyn Rowley has been appointed as new Director.

Martyn, who will take up his role on 7 November, brings with him extensive experience having previously held the position of Business Development Manager UK & Ireland at GT Motive.

He takes over from Chris Weeks, who served as NBRA’s Director for five years, and left the organisation on 28 July to take over as Managing Director of the Evolution Repair Group.

ARC360 News – Friday 11 August 2023

SYNETIQ and LV= provide key to sustainability

SYNETIQ has launched a client initiative with LV= Insurance which sees unused keys sold to raise money for charity. The two businesses have come together to sell unused keys for reuse to support the insurer’s chosen charity, FamilyAction.

Copart to open new Corby Operation Centre

Copart UK is opening a new Operation Centre in Corby, Northamptonshire.

The site, expected to be operational by the autumn, will enable Copart to increase vehicle storage capacity in this region by 32%.

Repair volumes dip in July

Trend Tracker’s latest Market Intelligence Report has revealed that repair volume demand is still tracking at 95% of pre-pandemic levels, although it has identified significant monthly fluctuations with June at 107% and July dipping to 87%.It also found that repair inflation is slowing down with a drop in year-on-year increases, although it remains at record levels.

Battery recycling a significant sustainability challenge

SYNETIQ has examined the challenges posed to the industry by battery recycling, and revealed how it is working with the sector to find best outcomes.

LKQ Corporation completes Uni-Select acquisition

LKQ Corporation has completed the acquisition of Uni-Select, which distributes automotive refinish and industrial coatings and related products in North America and the UK.

Europcar expands EV fleet

Europcar is upgrading its fleet of electric vehicles. It has made new premium Mercedes-Benz models available to customers as well as the ORA Funky Cat.

IMI report reveals gender divide

The Institute of the Motor Industry’s Baseline Report has identified stark challenges around gender equality, with just 19% of those working in automotive female.

The report also revealed that vacancies have risen to a 21-year high, with 758,000 jobs unfilled.

Axalta publishes strong profits

Axalta has reported that net sales increased 4.8% year-on-year in the second quarter, while income from operations totalled £108m compared to £81m in the same quarter of 2022.

PartsXchange announces AutoParts partnership

Online marketplace for recycled parts PartsXchange has announced a new partnership with Charlton Recycled AutoParts.

As part of the deal it will now list AutoParts’ range of green parts on its website.

EV sales soar in second quarter

Figures released by the Society of Motor Manufacturers and Traders has revealed that the UK’s used car market rose by 4.1% in the second quarter of the year.

It found that 1,832,267 units changed hands, with used battery electric vehicle sales growing by 81.8% to 30,645 units.

New scrappage scheme launched in London

A new £110m scrappage scheme has been introduced in London to help drivers prepare for the expansion of the Ultra Low Emission Zone (ULEZ) on 29 August 2023.

The scheme will offer grants to motorists looking to scrap or retrofit vehicles that do not meet new emissions standards.

Drivers urged to display emissions stickers

UK motorists heading to Europe this year risk a £154 fine if their vehicles do not meet air quality regulations.

Drivers have been warned to apply for and display the correct windscreen stickers before travelling, adding that different regions require different stickers.

Fix Auto Devon sites complete EV training

Fix Auto Crediton and Fix Auto Newton Abbot have completed Thatcham Research’s EV Aware and EV Ready training programmes.

The online courses, available via Thatcham Research’s ecademy learning platform, ensures all colleagues have the level of knowledge suitable to their jobs to handle electric vehicles.

Premiums reach record highs

Motor insurance premiums reached a record high in the second quarter of 2023, with the average comprehensive policy now £511. This is a seven per cent rise on the first quarter and 21% up on the same quarter of 2022.

Meanwhile, insurers paid out £2.4bn in all motor insurance claims in the first quarter of this year, a rise of 14% on the first quarter of 2022.

Government launches EV inquiry

The government has launched a new inquiry into electric vehicles as it considers the viability of its proposed 2030 ban on the sale of new petrol and diesel cars. It is seeking real-world insights from drivers, manufacturers, repairers and all industry stakeholders around buying experience, aftersales support, charging and end-of-life disposal.

People

Volkswagen Commercial Vehicles has appointed John Ricardo-Neto as its new Head of Product Planning. 

LV= has appointed Matt Crabtree as Head of Finance Crime Strategy.