Mark Hadaway, Author at ARC360

Going places: First Central set for growth spurt

16 December 2022

Bodyshop, Environment, Insurance, Mobility, People, Supplier, Technology, Training, Vehicle Repair and Words

First Central is on the brink of a major breakthrough in the UK motor insurance sector.

It has emerged from the pandemic stronger and more agile than ever, and its innovative technology and dynamic partnership-building is now about to pay dividends.

Andrew Eade, Head of AD Strategy and Fulfilment, First Central, said, “First Central is pretty ambitious. We’ve operated under the radar for a long time but have grown progressively and are now starting to get noticed.

“We’re moving pretty quickly and that’s being driven partly by the level of integration we’ve got with our partners, which has been achieved over the last six months. Another insurer might still be in committee, but we had a plan, a vision, and we have partnered the right people to deliver it.”

Andrew was speaking at ARC360’s Gaining Ground Together event, which was held at The Manufacturing Technology Centre last month.

Sponsored by GT Motive and supported by ARC360 Corporate Partners: Solera Audatex; BASF; BMS; CAPS; Copart; EMACS; Entegral; Enterprise; Innovation Group; Mirka; Nationwide Vehicle Recovery Assistance; and S&G; along with Partners: Repairify; The Green Parts Specialists; Indasa; and Prasco UK; and Associate Partners: Gemini ARC; Trend Tracker; and Thatcham Research, Gaining Ground Together saw some of the industry’s most influential players come together to share their insights and experiences around key issues such as ESG, the supply chain, customer satisfaction and training.

Culture

The day concluded with a one-to-one interview with Andrew, who discussed First Central’s ambition, culture and vision.

He continued, “We had a vision four years ago and are now bringing that through. The vision is simple: to provide a simple claims journey and to deliver on our promises to customers We’ll do whatever we can to achieve that.”

But while partnerships and greater integration are fundamental – “We work in silos, we’re afraid of change, but if you don’t change you don’t evolve” – so too is company culture, and Andrew believes this is another area where First Central is a little different.

He said, “I came to First Central seven years ago. We have our own culture here and it is very important that people fit within it because we make quite a lot of decisions out of the back of it. We have to feel like we can work with them and they can work with us. The culture very much comes from the top so everyone is aligned with the same set of values. One of those values is ambition; we take ownership of what we do. We are also agile in thought and action, and we look to collaborate.

“I know everyone talks about partnerships, but I don’t think a lot of people really deliver it. There is a level of measurement from insurers to suppliers, they impose rigid KPIs and SLAs, and that needs to change completely because repairing a vehicle has changed completely.

“We want to be easy to deal with, we want to develop working relationships that are simple and beneficial. To us that means being flexible and open-minded, so nobody here is unapproachable and there are no bad ideas. We actually have a few things going forward that might be beneficial for repairers from a cost and estimating point of view, so the door is always open.”

Technology

Another ambition of First Central is to increase its policy count without increasing its head count.

Andrew believes it is possible to achieve this by employing the right people and then marrying them with the right technology. He explained how First Central has now developed its own claims system which enables it to tailor solutions for handlers and set pre-defined parameters to accelerate claims decisions and improve accuracy.

“If we want to build a specific journey for a specific model or make a total loss decision around a certain type of damage, we could do that – we could do it tomorrow and then switch it off the next day. We’re looking to build more and more AI-enabled decision-trees to drive the right kind of decisions.”

He concluded, “We need to put the right things in the right places for the right people to get the right outcomes.”

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‘Why’ defines the ‘what’ and ‘how’

16 December 2022

Bodyshop, Environment, Finance, Insurance, People, Supplier, Technology, Training, Vehicle Repair and Words

Chartwell Director Chris Brightmore has encouraged repairers to ask themselves why they are doing the things they do instead of simply taking direction from others.

He said that only by understanding the ‘why’ can businesses begin to understand the ‘what’ and the ‘how’.

Addressing delegates at the ARC360 Gaining Ground Together event, which was held at The Manufacturing Technology Centre last month November, he said that Chartwell had only become the unique business it is because from the outset its leaders have taken the time to ask themselves ‘why’.

“We have got very good at asking why, and that’s probably why we’ve survived in the market we’re in,” he said.

Foundation

Chartwell was founded in Derby in 1966 as a family-run business serving the local market. Securing Mercedes approval in the 1970s represented a change-point, with BMW and Jaguar approvals following shortly afterwards.

However, the business was defined and its future direction established when it became an approved repairer for Aston Martin, investing upwards of £75,000 on new tooling and equipment to handle aluminium repairs.

Chris said, “Aston Martin was a step-change for us because then we were talking direct to the factory, not just a dealership. You do wonder about return on investment, but we were beginning to realise that if we understood manufacturers correctly things would start to change for us.

“Shortly afterwards we got Land Rover approval, which also included aluminium repair, and that gave us some confidence. It was that very day we decided to build this facility, investing £2.5m to build a site that met standards that weren’t even invented yet.”

More prestige manufacturer approvals followed, but none was more important to Chartwell than Ferrari, which required an incredible investment of both energy and money but established the business firmly as a supercar specialist.

Chris said, “We targeted Ferrari and we got it. It was a brave move to invest in the brand, probably the bravest move, and in the first 18 months we saw four cars. But we had to take our heads out of own business and understand why we were doing what we were doing. We wanted to be unique, to be visible; we wanted to exist.”

Focus

A decade ago Chartwell was an approved repairer for 16 of the most prestigious vehicle manufacturers in the world. It has now let half of these go to focus more on the brands that most closely align with its own business model.

That means delivering a superlative service in every single aspect of the repair journey.

Chris explained, “As a supercar-approved repairer we have to do things differently. About 70% of our business is models that represent 1.3% of the vehicle parc. So we have to produce our own standards and processes because we have discovered some unique problems from asking ourselves some important questions: Why do we do it? Why Chartwell? Why would an insurer want to deal with us?”

Trust

He said that underpinning everything Chartwell does is trust – trust from the customer who is handing over their pride and joy, trust from the manufacturer to protect the reputation of its brand, and trust from the insurer who will have to absorb the cost of the repair.

However, like everyone else Chartwell has had to earn that trust. Chris explained that by asking why things were going wrong, why there were delays or why engineers were not authorising repairs, he began to understand that the research data for supercars was not readily available to the wider industry.

“That information isn’t easy to get,” he said, “so we were just asking everyone to trust us. But we can’t expect blind trust. We realised that research is clarity, and clarity is trust, so now we try to evidence everything we do. That means that when we do an estimate, we dismantle the vehicle to check everything. Then we produce a huge document with loads of images and videos of evidence for the engineer so that they understand every detail of the repair.

“We are looking to achieve the gold standard and that requires teamwork, innovation, customer focus, and integrity – even if someone won’t notice if we don’t do something we’ll still do it. We’ve lived and died by this.”

Confidence

With this level of service and expertise – technician training days exceed 100 every single year – Chartwell has been confident enough to offer lifetime guarantees for its repairs for the past 15 years.

Chris concluded, “We understand our why, but my frustration with this industry is we get driven by someone else’s average or direction. We never stop and ask ourselves, ‘why am I in this market, why does it suit us, and why should I proceed?’”

ARC360’s Gaining Ground Together 2022 event was sponsored by GT Motive and supported by ARC360 Corporate Partners: Solera Audatex; BASF; BMS; CAPS; Copart; EMACS; Entegral; Enterprise; Innovation Group; Mirka; Nationwide Vehicle Recovery Assistance; and S&G; along with Partners: Repairify; The Green Parts Specialists; Indasa; and Prasco UK; and Associate Partners: Gemini ARC; Trend Tracker; and Thatcham Research.

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Supply chain sustainability a shared challenge

16 December 2022

Bodyshop, Environment, Insurance, People, Supplier, Technology, Training, Vehicle Repair and Words

Automotive businesses have been challenged to set aside their competitive instincts and adopt a more collegiate approach to tackling the environmental challenges.

Speaking during ARC360’s Gaining Ground Together event held at The Manufacturing Technology Centre in Coventry last month, Andrew Hooker, Head of Technical, Solus Accident Repair Services, said that sustainability was a shared challenge and only by working together can real difference be achieved.

He said, “Yes, we’re all business and financial competitors, but this is a shared problem and it’s not going to go away or get any easier. We have one planet. There are no easy answers and I realise this is new territory for bodyshops, but that’s why we have to tackle this in partnership. We can’t continue to work in silos.”

Supply chain

He called for greater collaboration with the supply chain, both upstream and downstream, and said that when it comes to finding significant wins in reducing carbon emissions the key is to think of the supply chain as a single, circular ecosystem rather than something linear with a series of links.

“We need to look at it holistically and ask, where in this ecosystem can we get benefits and work together to introduce more efficiencies?”

Of course, the pandemic threw many best intensions aside and businesses across all industries are still feeling the repercussions as inflation surges and margins become even tighter. Thinking long-term and investing in new processes or products that are more environmentally-friendly may seem like a stretch too far for many, but, says Andrew, the economic headwinds are actually an argument for action.

He explained, “We have to strip everything back to basics and take all the wastage out the system. Let’s find ways we can work smarter, and if we work smarter and more efficiently we reduce cost. It’s never been as tough as it is today, so now is the perfect time to address this.”

Easy wins

He said the first step is examining every aspect of operations and identifying what is straightforward to change, what is more difficult and what is next to impossible. He believes the easy wins will make up about half of everything considered, and while they must be addressed this must not be at the expense of the more challenging issues.

“Regulation and legislation is only going to get tighter, so we need to keep looking ahead. It’s easy to think you’ll address the difficult things later, but you can’t afford to do that. In a few years you’ll have cleared out the easy things and then the difficult things will become 100% of your target, so you need to start looking at changing them now.”

Review

Solus is now in the middle of an end-to-end process review which Andrew believes will continue indefinitely as new innovations come to market. He explained the business is looking as far ahead as 2040 to consider what steps it needs to take now.

He said, “I know many bodyshops are just trying to get through today, but we do need to take our noses away from the grindstone and look ahead. We’re looking at what we’ll be repairing in 2030 and 2040, and what materials we’ll be using. There will be a huge diversity of technologies so we’re looking at what that will mean for repair operations and how it will affect our workshop.

“There are a lot of innovations coming our way, but we need to look at everything and ask, does it work for us, does it add value, and what’s the resource requirement for it in terms of effort, energy and waste levels.”

This, he continued, does not just apply to product and equipment. He asked if roles like service providers and health and safety executives could be considered surplus and just introducing needless waste and cost.

He said, “Are they more of a help or a burden? Do I need to print out documents for them? My biggest source of paper waste is printing off things for one vehicle manufacturer. So, I’m killing 145 trees a year for a process that could be electronic. We need to consider every aspect and question its real value. There will be cost benefits of everything we can eliminate from the process.”

Customer

Of course, ever stricter penalties from regulators will force slow-to-act businesses down the sustainability route in due course, but Andrew said the real driver is always the customer, who is becoming increasingly sensitive to environmental concerns and now expects businesses to take their climate responsibilities seriously.

He concluded, “We need to think about sustainability with every single decision we take. At Solus, our ethos is: We’re trying to do the best for our customer today, but our customer’s children in the future.”

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Raising the bar of customer care

16 December 2022

Bodyshop, Insurance, Mobility, People, Supplier, Technology, Vehicle Repair and Words

The challenges facing the sector are well known, but instead of being an excuse for a dip in customer service they should actually be a motivation to raise the bar even higher.

That was the message delivered by Sharna Thomson, Head of Customer – UK Claims, Zurich, who was speaking at ARC360’s Gaining Ground Together event, held recently at The Manufacturing Technology Centre, Coventry.

Sponsored by GT Motive and OSCA, the event brought together key leaders from across the industry to share their insights around topics such as sustainability, technology, and the supply chain – as well as customer service.

Care

Sharna said that now more than ever the customer needs to feel valued and cared for in a time of personal crisis, and although there are many parts of the claims journey that can’t be controlled, there are key elements that the industry does have complete control over and it must make these a priority to ensure the experience is as efficient and straightforward as possible.

She said, “There are two key questions we need to answer: What do our customers expect from us, and what’s within our control?”

One of the fundamentals of good customer service, she continued, is communication. Customers expect to be kept informed, via the channels that suit them.

“Silence is deafening,” Sharna continued. “Customers want to know what is going on, even if there are no updates. They want to feel like they have not been forgotten, and with technologies such as live chat it is completely within our power to keep them updated in the manner they want. There are some customers who will still want a phone call and the option of talking to someone, so we have to make sure that is still available, but our customers come from many different demographics, so we have to make use of the technologies that are out there to talk to them through the channels that are convenient to them.”

Sustainability

Sustainability is also a growing concern among policyholders, with many now prepared to pay a premium for solutions that are kinder to the environment. This too is something that industry stakeholders can control.

Sharna explained how Zurich has introduced Courtesy Care, a greener alternative that also addresses the current challenges around mobility. She said that not all policyholders want – or need – a courtesy car. To encourage those who can do without one, Zurich now offers the option to have the amount it would spend on a courtesy car during the repair donated to a charity of the customer’s choice, and in their name.

Zurich also offers customers the option to take Halford’s vouchers to support the purchase of a bicycle if and when that would negate the need for a replacement vehicle.

Sharna said, “There are parts of the customer journey we can’t control, there are parts we can influence but not totally control, and there are parts we have control over no matter what else is going on in the world.

“It is our job to ensure we’re doing everything we can to make the claims process simple, to keep our promises to customers and to ensure the repair journey is as slick as it can be.”

Collaboration

However, to achieve this she said that collaboration with repairers was critical. She explained that when it comes to customer satisfaction the repairer has far more influence than the insurer as often it is the ‘face’ of the claim.

Sharna said, “The customer doesn’t necessarily recognise the 20 other companies that are involved behind the scenes. All they recognise is Zurich so in many ways our brand is in the hands of the repairer, and we are hugely reliant on them.”

Gaining Ground Together was supported by ARC360 Corporate Partners Solera Audatex, BASF, BMS, CAPS, Copart, EMACS, Entegral, Enterprise, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, and S&G, along with Partners Repairify, The Green Parts Specialists, Indasa, and Prasco UK, and Associate Partners, Gemini ARC, Trend Tracker, and Thatcham Research.

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Grove Group enhances services with EV charging solution

16 December 2022

Bodyshop, Supplier, Vehicle Repair and Words

Grove Group has added the installation of internal or external electric vehicle charging systems to its portfolio of services.

The service ranges from a single unit supply or a complete engineers’ building inspection, product recommendation, installation and maintenance.

The new division of the company, the Car Charging Shop, has been launched to meet growing customer demand for EV solutions.

Grove Director Paul Newman said, “We have been asked to supply EV units for a while but, in reality, there’s far more involved, especially surrounding the delivery of power available within a business to the actual unit.

“The popularity in EVs is growing at a phenomenal pace but and there’s no doubt the time will come that every repairer, indeed every business, will be expected to provide EV charging facilities. And now we can now provide that service.”

Fellow director David Sutcliffe, added, “We have spent the last 10 months creating the infrastructure needed to confidently offer a totally unique service, not just for vehicle repairers but critically, motorists who buy into the idea of owning an EV without realising what’s needed to ensure they’re as effective as possible. We have a team of technicians who will advise on the best route to take.”

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Ben Ball raises £120,000 for struggling colleagues

16 December 2022

Environment, Finance, People, wellbeing and Words

The Ben Ball raised more than £120,000 to support colleagues struggling or in a crisis.

More than 600 guests attended the event, which was held at Old Billingsgate Market, London, on 7 December, when Ben revealed the sharp rise in demand for its services amidst the current cost-of-living crisis.

Matt Wigginton, Director of Partnerships, Engagement & Income at Ben, said, “I’m blown away by the support we’ve received at this year’s Ben Ball. It really is tough times out there for everyone at the moment, so this means the world to us and those we support. All funds raised will go to supporting those in the industry who are struggling right now – and people really are struggling. This support is life-changing and life-saving. People are having to make an impossible choice between eating or heating this winter and that’s a choice no-one should have to make.

“It was also fantastic to celebrate the year together and show the automotive community we care and that, together, we’re committed to helping people get through their darkest days.”

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ILC partners lead EV research project

16 December 2022

Bodyshop, Environment, Insurance, Salvage, Supplier, Technology, Training, Vehicle Repair, vehicle sales and Words

Thatcham Research and LV= will work together on a long-term project focused on electric vehicle repair and salvage processes, and their impact on claims.

Joined by salvage experts Synetiq, they will consider the risks associated with handling EVs, from recovery to repair, particularly when the battery or high voltage system has been damaged.

The first phase of the project will focus on identifying where the claims workflow is different for EVs and where more detailed research may be required in the future.

Adrian Watson, Head of Engineering, Thatcham Research said, “In many circumstances, EV accident repair is no different from ICE vehicles. But under the hood lie everyday essentials, such as safe, cost-effective, timely post-accident repair, and the surrounding claims process so critical to putting any new vehicle on the road. And nowhere is the difference between EV and ICE more clearly underlined than in the insurance claim chain.

“It’s vital that the industry comes together to ensure customer expectations of owning, insuring, and repairing an EV can be met—and that the experience can be better than they’re used to with an ICE.”

Chris Payne, Head of Networks and Engineering at LV=, said, “This project is about finding the best way to repair EVs and their batteries, rather than writing them off. This will not only have a positive impact on claims costs, but will also feed a healthy second-hand EV market.”

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Ben delivers Christmas cheer to struggling families

16 December 2022

Bodyshop, Car Rental, Environment, Finance, Insurance, Mobility, People, Salvage, Supplier, Vehicle Repair, vehicle sales, wellbeing and Words

Automotive industry charity Ben has launched a Christmas families project to support those in financial difficulty or urgent need.

It’s estimated that a third of children in the UK are living in households where parents are struggling to meet the cost of living and pay bills. For many, this could mean a cold Christmas without any presents.

However, Ben is now stepping in to make sure that no child goes without.

Over the last 12 months it supported 182 households who couldn’t afford to put food on the table or heat their homes and an additional 64 households who would have otherwise become homeless, while last year’s Christmas families project provide support to 34 struggling families.

Rachel Clift, Health & Wellbeing Director at Ben, said, “Times are really tough right now and people are struggling to make ends meet. Individuals are being pushed to the edge with the current rising cost of living, which is having a knock-on effect on children and families. Ben is here for our industry people this Christmas so if you work, or have worked, in the automotive industry we urge you to get in touch now if you’re at breaking point via our free and confidential helpline. We want to support as many people as possible so no one in our industry has to go without this Christmas.”

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ARC360 news round up – Friday 9 December

9 December 2022

Bodyshop, Environment, Insurance, Technology, Training, vehicle sales and Words

ESG about more than the environment

The automotive industry has been challenged to address all elements of its ESG (Environmental, Social and Governance) responsibilities instead of focusing only on the environment.

Dee Hylton, Head of Claims Procurement, Aviva, fears that to many business leaders ESG means carbon footprint and taking care of the planet, and while she agrees this must be an absolute priority she has encouraged a little more attention be paid to the Social side of it.

Thatcham Research makes VR learning a reality

Thatcham Research has long been recognised as one of the leading and most innovative training providers to the automotive repair industry.

However, it is now pushing the boundaries even further with a new virtual training experience that combines practical learning with all the convenience and cost benefits of remote communications.

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Catch up on the latest on demand webinARC: Business Development featuring insights from the Gaining Ground Together event.

Seren Skills appointed to help update apprenticeship standards

AutoRaise has appointed Seren Skills Consultancy to support trailblazer group BRIT in updating apprenticeship standards.

BRIT has warned that the five automotive apprenticeship standards are out of date and there is risk to the future of apprenticeships until they have been properly reviewed, but this requires more time than the BRIT volunteers are able to provide.

Five-star success in latest Euro NCAP testing

Euro NCAP has announced that 11 of the 14 cars that underwent its latest testing achieved the maximum five-star safety rating.

Cars tested included three Chinese models as well as superminis, family cars, off-roaders, MPVs, pick-ups and four premium vehicles.

Audatex updates AEG with new data release

Audatex has announced that 13 new and 61 updated model sheets have been added in the latest AudaEnterpriseGold data release.

ARC360 Market Intelligence: Gaining Ground Together 2022 Event Special

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BASF introduces biomass solution to China

BASF has introduced it biomass balance automotive coatings solution to Asia.

Its ColorBrite Airspace Blue ReSource basecoat was launched in Europe in May and has now been made available to customers in China.

Motor premiums up a modest two per cent

Average motor insurance premiums have risen two per cent to £436 in the last year, according to the ABI’s latest Motor Insurance Premium Tracker.

However, the ABI said insurers were finding it increasingly difficult to keep premiums low in the face of rising costs.

Gemini refreshes online presence

Gemini Accident Repair Centres has gone live with a new website.

The group has built a reputation for sustainability with a ‘repair over replace’ approach and a deep commitment to apprentices. It includes 31 bodyshops with more than 600 employees.

Some insurers short-changing claimants

The Financial Conduct Authority has warned insurers not to undervalue items when it comes to settling claims.

It has seen evidence of consumers being offered settlements below the value of the car following a write off, with pay-outs only increasing if the policyholder complained.

New car sales surge by 23%

The UK new car market grew 23.5% in November to 142,889 units.

According to the Society of Motor Manufacturers and Traders (SMMT), this represents the fourth consecutive month of growth.

Steer continues relentless growth strategy

Steer Automotive Group has cut the ribbon on its 57th site.

Based in Sheffield, the new-build, 13,000 sqft bodyshop includes significant EV battery storage and a dedicated multi material booth for electric, hybrid and multi-material vehicle repairs. Further investment in ADAS calibration and skills in ongoing.

Meanwhile, Steer Group has partnered with Axalta to make the global coatings company its preferred supplier across all its sites.

Nutshell a new name in UK motor insurance

BGL Insurance (BGLi) has announced nutshell, a new digital-first motor insurance brand in the UK that is being launched in partnership with Covéa.

The move signifies an exclusive long-term joint venture combining Covéa’s underwriting and claims management expertise with BGLi’s pricing, customer service, digital distribution and tech capabilities.

Fix Auto Braintree open for business

Fix Auto UK has celebrated another bodyshop joining the network after Danny Ashwell opened his all-new Fix Auto Braintree repair centre.

The site joins Danny’s existing facility in Chelmsford, making him a Fix Auto UK multi-site owner.

Marshall rules after leadership success

Brian Robson Coachworks Group Operations Manager Dean Marshall has successfully passed the Volvo Bodyshop Leader Course.

Copart welcomes greater green parts adoption

Copart has welcomed a new report that has revealed the extent the UK repair industry is adopting green parts.

The report found that 79% of bodyshops who responded to the survey said they had used reclaimed parts for environmental, economic and supply chain reasons.

People

Avant Consult has appointed Heather Morris as Director of Operations & HR Lead.

GT Motive has appointed Andy Douglas as new Senior Solutions Consultant.

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Five-star success in latest Euro NCAP testing

9 December 2022

Insurance, Supplier, Technology and Words

Euro NCAP has announced that 11 of the 14 cars that underwent its latest testing achieved the maximum five-star safety rating.

Cars tested included three Chinese models as well as superminis, family cars, off-roaders, MPVs, pick-ups and four premium vehicles.

Among those cars taking top marks were the US-manufactured Lucid Air, which has now been launched in Europe.

Five stars were also awarded to Chinese manufacturer Chery’s OMODA5 model, SAIC’s MIFA 9 and the electric MG 4.

Volkswagen’s ID. Buzz was also awarded the top safety score, as were the Ford Ranger, VW Amorok, and Skoda Octavia.

Meanwhile, the Ford Puma, Volkswagen Touran and Peugeot 408 all received four stars.

Michiel van Ratingen, Euro NCAP’s Secretary General, said, “2022 has been one of Euro NCAP’s busiest ever years and we have seen a lot of new car makers and new technologies. It’s clear that European consumers still demand the highest levels of safety and that a good Euro NCAP rating is seen by car manufacturers as critical to success here.

“Euro NCAP is still driving ever-higher levels of safety and our protocols for 2023 will bring exciting, tough new challenges to the car industry.”