The UK’s used car market increased 5.1% in the first quarter of 2022, according to the Society of Motor Manufacturers and Traders (SMMT). It recorded 1,774,351 transactions in the first three months of the year, up 86,596 on the same period in 2021.
The rise was driven by a buoyant market in January and February, when used car sales rose 17.7% and 7.4% respectively before a 6.8% decline in March.
However, used car transactions remain 12.2% down on pre-pandemic 2019.
Demand for battery electric vehicles (BEVs) continued to surge, with transactions more than doubling from 6,625 to 14,586, while plug-in hybrids and hybrids rose by 35.3% to 14,433, and 28.8% to 35,007 units respectively.
This represents an accumulated market share of 3.6%, up from 1.6% in the first quarter of 2021.
Mike Hawes, SMMT Chief Executive, said, “With the new car market hampered by ongoing global supply shortages, growth in the used car market is welcome, if unsurprising especially given we were in lockdown last year. Electric car sales are energising the market, with zero emission vehicles starting to filter through in larger numbers to consumers looking forward to driving the latest and greenest vehicles. Although there is some way to go before we see the recent growth in new EVs replicated in the used market, a buoyant new car market will be vital to help drive fleet renewal which is essential to the delivery of carbon savings.”
Bodyshop, Car Rental, Environment, Finance, Insurance, Mobility, People, Salvage, Supplier, Technology, Training, Vehicle Repair and Words
ILC and ARC360’s inaugural Motor Showcase Event continues to gain traction with the industry showing its support for the new experience.
Headline sponsored by Enterprise, the event will provide host of engaging initiatives including the ‘next generation’ meet and greet session; a fully immersive exhibition arena; a Partner Showcase stage with sessions hosted by Enterprise, Copart, Innovation Group and Solera Audatex amongst others; and the main auditorium keynote stage featuring contributions from Gemini ARC, Thatcham Research and Trustpilot, as well as other major industry influencers to be revealed in the coming weeks.
The Motor Showcase Event allows visitors to spend the day as they wish with networking opportunity in plentiful supply.
The event, which takes place at the CBS Arena, Coventry on 29 June, will attract more than 400 key persons of influence from across the claims sector representing insurers, claims management companies, repairers, along with a host of product, equipment and service suppliers.
Mark Hadaway, co-founder of ARC360 and managing director of ILC, said, “The Motor Claims Showcase Event is really ramping up with new initiatives being included and some major names being added to the agenda and revealed in the coming weeks.
“Everyone in the industry talks about an exciting future and the Motor Claims Showcase Event is our way of starting to bring it all together for a ‘better tomorrow’.”
Bodyshop, Finance, Supplier, Technology, Training, Vehicle Repair and Words
Repairify UK is launching a new initiative this month that could reduce remote diagnostics, ADAS calibrations, coding and programming prices by as much as 45%.
Available to asTech and RED (EU) customers, the Repairify Remote Services Pledge will see IMI certified and ADAS trained technicians carry out diagnostic scans and resets, and ADAS calibrations according to UK Insurance Industry Requirements.
This enables repairers to benefit from new income streams while at the same time reducing key-to-key times by not outsourcing or hiring subcontractors.
Phil Peace, Managing Director (SVP) International, Repairify, said: “Repairify’s continuous investment in technology development and data acquisition ensures repairers can be confident they are employing the safest, most reliable, and up-to-date ADAS repair solutions available.
“With the introduction of the Repairify Remote Services Pledge, repair shops can confidently employ the best value, high-quality diagnostics, and ADAS services on the market to meet their repair requirements.”
In this webinARC we look at the latest trends in recruitment, upskilling and wellbeing from a industry undergoing rapid evolution.
Gemini focuses on talent development
Gemini Accident Repair Group has launched a national search for its next cohort of apprentices. The group has a proven record of developing talent, with more than 13% of its workforce on an earn and learn scheme.
It is now hoping to increase that number by recruiting even more technician and vehicle damage assessor apprentices, offering competitive rates of pay, tools and uniforms to successful applicants.
Vella Group joins Climate Pledge reception
The Vella Group marked its commitment to improving sustainability by attending the Climate Pledge’s Spring Reception at The Gherkin in London. The Climate Pledge is an international initiative comprising more than 300 organisations that have committed to achieving net zero by 2040.
The evening was attended by Vella Group Finance Director Brendan Miller and Head of Commercial Tom Hadfield.
The Group said, “Signing the Climate Pledge means we are not focusing on this alone, but also working with some of the world’s biggest companies to create a colossal impact.”
The report examines the effects of disruption to the supply chain, Brexit, Covid-19, developing vehicle technology, whiplash reforms, and even climate change, while considering some of the actions that can be taken to subdue the impact.
However, battery electric vehicles (BEVs) enjoyed a record month with 39,315 sales of zero emission cars. This is an increase of 78.7% on the same month last year and represents a 16.1% market share.
Meanwhile, new light commercial vehicle registration dropped 27.6% to 40,613 units in March.
Nick Hobbs, Chief Distribution and Regions Officer, Allianz, has said this has made index linking critical to avoid the potential for underinsurance.
He said, “Index linking is commonly used in buildings insurance, but is not limited to buildings. Changes and developments in the macroeconomic environment can affect the value of other assets, such as stock, materials and parts.”
He said, “We’re chasing £17,000 to beat last year’s £16,500. Why not? We normally raise anything from £800 to £1,200 on the night, so I’m fairly confident that we will get close.”
Further sponsorship for the event is still required.
The UK’s only ‘not-for-profit’ insurer-funded automotive research centre will use the facility for the testing and research necessary to ensure new mobility technology is introduced safely and effectively. This includes active-safety and assisted and automated driving systems.
He revealed his intentions after signing the papers to take over a 10,000sqft building which will be transformed into Fix Auto Braintree, a new addition to the Fix Auto UK network.
The new site will be the result of a £230,000 investment but will be the first of two additional developments already in the pipeline.
AW docuseries explores evolution of sector
AW Repair Group’s seventh episode in the AW: A Career for Life docuseries sees Technical Development Executive Steve Hoe share more than 30 years’ experience in the industry and the evolution of vehicle crash repair.
Starting out as a paint technician and now Technical Development Executive Steve explains how AW Repair Group is investing in the future with knowledge, skills, and equipment to be able to repair complex vehicles on a daily basis.
Following on from the recent Vehicle Technology webinARC (see below) – we caught up with panellist Andrew Hooker, Head of Technical at Solus Accident Repair Centres to pose some questions received from those tuned in.
Siemens brings Enterprise mobility to employees
Siemens UK has extended its partnership with Enterprise to offer all its employees 24/7 access to Enterprise Car Club’s 1,400-plus on-street fleet via an automated rental programme.
Enterprise’s car club is available in 200 towns, cities and communities across the UK, while dedicated car club vehicles are also located at Siemens offices in Lincoln, Hull, Aberdeen, Congleton and Manchester. The partnership has already helped Siemens reduce its pool cars in the UK by a third.
Sherwin-Williams Chairman and Chief Executive Officer, John Morikis said, “This business brings us unique technology and additional manufacturing and services capabilities in line with our strategy of acquiring complementary, high-quality, differentiated businesses that support our growth and profitability targets.”
According to data released by ERS, there are now about 10% more HGVs on UK roads than before the pandemic and fewer cars, while rush hour traffic remains staggered due to flexible working hours.
It further warned that fleets are facing challenges in both replacing and repairing vehicles due to a shortage of new models entering the market and lack of repair capacity.
Rewind…
“The industry needs to be educated about the safety implications of EVs so it will allow technicians time to do the right thing.”
Catch up on ARC360’s most recent webinARC focusing on vehicle technology and featured:
Andrew Hooker, Head of Technical, Solus Accident Repair Centres
Franco Iannotta, Bodyshop Development Manager, Volkswagen Group UK
Phil Peace, Managing Director (International), Repairify
Danny Ashwell, Managing Director at Fix Auto Chelmsford, has revealed a programme of expansion that could see his single-site operation quadruple in size within the next four years.
He revealed his intentions after signing the papers to take over a 10,000sqft building which will be transformed into Fix Auto Braintree, a new addition to the Fix Auto UK network.
The new site will be the result of a £230,000 investment but will be the first of two additional developments already in the pipeline.
“We have been planning to increase our repair footprint for several years and have actively been looking for suitable sites,” said Danny, “while we have two other venues that will serve two other areas on our radar, Braintree has come about quickly and has now taken precedent.”
Fix Auto Chelmsford is currently repairing up to 220 vehicles a month. When the Braintree site is fully operational, Danny expects that figure to increase by an additional 150.
Ian Pugh, Fix Auto UK’s Managing Director, said: “To hear of a multiple expansion programme as aggressive as this simply underpins the ever-growing confidence with those progressive and ambitious Franchise Partners within the network.”
UK new car registrations fell by 14.3% to 243,479 units in March, despite Battery electric vehicles enjoying their best ever month for the new registrations.
According to the Society of Motor Manufacturers and Traders (SMMT), the ongoing supply chain shortages continued to squeeze supply during what is normally the industry’s busiest month, making it the weakest March since 1998.
Private registrations grew by 8.2% in the month but large fleet registrations declined by 34.4%.
However, the SMMT reported that 39,315 new zero emission cars were registered in the month (16.1% market share), an increase of 78.7% on last year and more than all BEVs registered through 2019.
Meanwhile, The UK light commercial vehicle (LCV) market also felt the effects of supply disruption in March, falling 27.6% to 40,613.
Mike Hawes, SMMT Chief Executive, said, “March is typically the biggest month of the year for the new car market, so this performance is deeply disappointing and lays bare the challenges ahead. While demand remains robust, this decline illustrates the severity of the global semiconductor shortage, as manufacturers strive to deliver the latest, lowest emission vehicles to eagerly awaiting customers.
“Placing orders now will be beneficial for those looking to take advantage of incentives and lower running costs for electric vehicles, especially as the Ukraine crisis could affect supply still further. With increasing household and business costs, government must do all it can to support consumers so that the growth of electric vehicles can be sustained and the UK’s ambitious net zero timetable delivered.”
Bodyshop, Environment, Finance, Insurance, People, Supplier, Technology, Training, Vehicle Repair and Words
The latest ARC360 webinar focused on vehicle technology, and while electric vehicles and ADAS were inevitably identified as key issues, the fundamental message to come out of the session was that development in this area is as broad as it is fast, with virtually every aspect of the vehicle affected.
“I think steering and suspension are just about the only things that haven’t changed in the last 10-15 years,” said Franco Iannotta, Bodyshop Development Manager at Volkswagen Group UK.
He was joined on the panel by Andrew Hooker, Head of Technical at Solus Accident Repair Centres and Phil Peace, Managing Director (International) at Repairify, both of whom agreed that change was taking place across the board.
Winners and losers
Andrew said, “Technology is moving forward and it’s very diverse. Of course, there is lot of noise around EVs and ADAS, but materials and structure is another area where there is great change and I think it will challenge repairers, creating winners and losers.”
He also introduced a new term to the automotive lexicon – the snowflake car – which describes how ‘function on demand’ is becoming more and more prevalent, creating a situation where no two cars are exactly the same.
“This will be a significant challenge for the insurance sector,” he warned, explaining that some drivers will turn off or disconnect certain features while other drivers might install upgrades, creating vastly different insurance propositions from what is fundamentally the same product.
Underlining the diverse nature of the challenge facing the sector, a live online poll asked attendees to name the area of their business most impacted by vehicle technology, with answers split across the board. Less than one in three (30%) said processes, 27% said the impact was mostly financial, 36% said skillsets, with customer care (10%) and recruitment (seven per cent), also factors.
EVs
But despite that, there is no doubt that the most fundamental change impacting vehicle technology today is the electrification of the car parc. A second poll saw 69% of respondents cite EVs as the stand-out factor, ahead of ADAS (40%), connectivity (36%), and materials/structure (27%).
The need for training and tooling to safely repair these vehicles has been well-documented, but Andrew said that if the industry is going to respond positively to the surge in EV demand then it needed to remember who it was working for.
Clarity and communication
He said, “There has been a lack of clarity and communication with the customer around ADAS for a number of years; we mustn’t make that mistake with EVs. We need to remember we’re working for the customer, and that the whole idea is to get the driver back in their car quickly and efficiently, and at the same time build confidence that we – as a sector – can handle EVs. To do that we need to stop operating in silos. Working together is more critical than ever and that means getting the right tools and the right knowledge to the person who is managing the customer.”
Franco agreed but said that true co-operation will only happen when all sectors of the industry appreciate the implications of repairing EVs. He pointed to the difference between disconnecting and de-energising a car, saying that one takes less than a minute and the other can take more than an hour.
He said, “The industry needs to be educated about the safety implications of EVs so it will allow technicians time to do the right thing.”
Online poll: What are your concerns around EVs?
54% – skills and knowledge
47% – site facilities/charging options
30% – vehicle recovery/handling
25% – handling information
18% – customer experience
8% – volumes
Attitudes
In many ways then, adapting to EVs and the myriad other changes taking place within car development is a matter of attitude. The automotive aftermarket is well-versed now at dealing with change – “As an industry, we’re very open,” Andrew said – but it could be that lasting adaptability will depend on new blood entering a sector that is restricted by an ageing workforce.
Phil said, “Mindsets are evolving, but are they evolving as quickly as technology? Possibly not. That’s no one’s fault, but it is a massive challenge because the skillsets we’re going to need in the future are also changing. Somehow we need to start bringing through new blood. We really can’t do that quickly enough.
“So how do we attract people to the industry? We need to take the industry to them. We need to go to schools and colleges and show the younger generation how exciting the sector is and build new career paths around them.”
Investment
Of course, this has been the objective for a number of years, with only limited success so far and ultimately every business will have to take it upon themselves to ensure they are future-proofed and relevant going forward.
This will require investment in both people and facilities, and for many business owners the biggest quandary is knowing where to invest.
Franco said, “It all comes back to the why: why should people bring their cars to you, why should people come and work for you? You need to understand the why before you can do anything else.”
Delving deeper into this, the next ARC360 webinar will take place on Wednesday, 27 April, when People and Skills will be under the spotlight.
ARC360 would like to thank its Corporate Partners BASF, BMS, CAPS, Copart, Emacs, Entegral, Enterprise Rent-A-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, and Sherwin Williams as well as Partners asTech, The Green Parts Specialists, Indasa and Prasco UK, and associate partners Gemini ARC, Thatcham Research and Trend Tracker.
Bodyshop, Car Rental, Environment, Finance, Insurance, Mobility, People, Salvage, Supplier, Technology, Training, Vehicle Repair and Words
ARC360 and ILC’s Motor Claims division have joined forces to bring a whole new event experience to life for 2022.
Focusing on best practice across the supply chain – specifically the accident damage sector – the Motor Claims Showcase Event will offer a host of engagement opportunities from hands-on exhibitions and in person networking, through to insightful keynote presentations, open panel discussions, ILC key partner insights and much more.
The event will also provide the chance for the ‘next generation’ of claims industry professionals to meet via our new initiative.
The event, which takes place at the CBS Arena, Coventry on 29 June, will attract more than 400 key persons of influence from across the claims sector representing insurers, claims management companies, repairers, along with a host of product, equipment and service suppliers.
Mark Hadaway, co-founder of ARC360 and managing director of ILC, said, “New for 2022, the Motor Claims Showcase Event very much aligns with our ‘better tomorrow’ philosophy by bringing the sector together in a truly holistic and innovative way.
“The response from our existing partners has been highly supportive and we’re looking forward to bringing this new event format to market to support the ongoing evolution of the sector.”
To book tickets or to find out more about the sponsorship opportunities available, click here.
In this webinARC we explore the ever-evolving and rapidly developing world of vehicle technology and explore what it means for incident vehicle management across the supply chain.
Fix Auto West Kensington hits awards hat-trick
Fix Auto West Kensington became the toast of Fix Auto UK’s 2022 National Conference after picking up three awards during the network’s ‘Facing The Future’ National Conference.
Presented in front of a record number of delegates, insurer guests and suppliers at The Vox, near Birmingham, business owner Hemal Amin was presented with the RSA Insurance Bodyshop of the Year; Fix Auto UK Outstanding Customer Service Award; and the network’s coveted Bodyshop Of The Year.
The new environmentally friendly office building in Bristol will now be a blueprint for the company’s wider strategy of upgrading and replacing offices at its other operation centres.
FCA imposes new claims management rules
New rules about what claims management companies can charge consumers owed compensation have been introduced today by the Financial Conduct Authority.
From now on, fees must depend on how much redress consumers are owned, so if the redress is below £1,500 then consumers can only be charged up 30% of their claim. These new regulations are expected to save consumers £9.6m a year.
Mark Riches, Aftersales Manager, said, “A big thanks to our owners Nick and Tim Pyne. A massive thanks to Brent Morris at Morris Associates, Robert Snook at MG Cannon, and most of all, our amazing team here at WBM accident repair.”
The Skills Competitions set out to identify the most talented learners and apprentices who are either still studying or have completed studying in the last 12 months.
Apprentices can take part in one of four automotive related categories: Light Vehicle Automotive Technology; Automotive Body Repair; Automotive Refinishing; and Heavy Vehicle Technology.
The newly created position reflects e2e’s commitment to delivering service innovation to clients and network members, through the adoption of emerging technology and digitalisation.
The Apprentice Champion of the Year was Lisa Porter, with other awards going to Gemini ARC (Large Employer of the Award), Tahya Fells (Rising Star), Frances MacDonald (Apprentice of the Year Award) and Rachel Parkhouse (Apprenticeship Tutor of the Year).
Euro NCAP releases first safety ratings
Euro NCAP has published the results of its first safety assessments of 2022, with seven vehicles coming under the microscope. Four of the seven models achieved the maximum five-star safety rating – the Volkswagen Polo, the crossover Taigo, the Megane E-TECH, and the Lexus NX – while the BMW 2 Series Coupé was awarded four stars.
Matthew Avery, Chief Research Strategy Officer at Thatcham Research, said, “This first set of Euro NCAP results for 2022 represents a great start to the year from a safety perspective. And although there are several conventionally fuelled vehicles here, we are continuing to see more and more EV options for consumers with strong safety credentials.”
HB puts down the pencils
HB Accident Repair has announced that its Swinton bodyshop is now completely paperless. The switch, supported by AutoFlow, has been made to streamline business processes and reduce environmental impact. All drivers have been issued with tablets to capture images of damaged vehicles which will then be automatically uploaded to the repairer’s management system, while technicians can now access repair methods and record every detail of the job via tablets.
Synetiq sets up dedicated support team
Leading supplier of OEM green parts Synetiq has responded to the continued supply chain challenge by establishing a new team dedicated to supporting bodyshops secure parts. It hopes that by facilitating a quicker and more reliable provision of replacement parts it can reduce the number of vehicles being written off.
Meanwhile, the company has also announced that it has signed a supply contract with esure which will assist the insurer on its path to sustainability.
Tooling and consultancy providers partner up
Specialist technology supplier Eco Repair Systems has announced a new partnership with ECA Business Energy which will see each recommend the other’s services. This will provide bodyshops with access to both the tooling and consultancy services necessary in today’s fast-changing industry.
Eco Repair Systems provides equipment for non-structural repairs of steel, aluminium and plastic vehicle components, as well as associated training, while ECA offers carbon consultancy services to more than 450 bodyshops.
Special feature – Under the microscope: business operations
If strategy is the brains behind a business, then its operations and processes are the heart and lungs. That has never been more true than it is right now, in a working environment that have been bent completely out of shape by myriad influences.
