Motor premiums fall – but 300,000 still driving without insurance

8 August 2024

Environment, Finance, Insurance, Mobility, People and Words

Whilst car insurance premiums have fallen for the first time in two years, the impact of rising costs year-on-year are still to hit those yet to renew their insurance in 2024.

With up to 10% of British adults not aware that motor insurance is compulsory, and an estimated 300,000 uninsured drivers on the roads every day, MIB (Motor Insurers’ Bureau) is calling on those needing to take out a new policy to make sure they remain insured, rather than face the consequences.

According to the ABI (Association of British Insurers), premiums fell by two per cent in April-June compared to the first quarter of 2024. This is the first decrease in two years.

On the face of it, this is good news. However, costs are still just £12 off the all-time high, while annual increases of up to 21% compared to 2023 renewal costs are yet to hit the wallets of those still to renew. This means around 14 million households are to be hit by a likely premium rise.

Shockingly, according to a YouGov study commissioned by MIB, 10% of the British public are not aware that motor insurance is compulsory for any vehicle used on a public road.

MIB is raising awareness of the need for continuous insurance, appropriate for the driver, vehicle and journey purpose. For those not maintaining continuous motor insurance for vehicles used on public roads, the consequences can be severe. Whilst the fixed penalty notice is £300, should the case go to court the fine is unlimited. On top of this, drivers receive six points on their licence, vehicles may be seized and even crushed, and those with endorsed licences could find they struggle during job searches and with taking out future insurance policies.

James Dalton, Chief Services Officer at MIB, said,“We know times are tough for many people right now and increased cost-of-living pressures, including motor insurance premiums, may cause more people to make the wrong decision to drive uninsured, but this is not the right way to save money.

“We are encouraging people to ensure they maintain continuous, appropriate insurance on their vehicle, whilst reminding them to look at ways to legally reduce their premiums. While we understand the challenges many are facing, our message is that driving uninsured is never worth the risk.”

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ARC360 News – Friday, 2 August 2024

2 August 2024

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

Bodyshop Briefs

Steer Automotive Group has acquired Komoo, diversifying its market offering and strengthening its position in the UK automotive repair market. Read more The news follows just days after it acquired MG Cannon Group. Read more

Gemini ARC was named in Apprenticeship Top 100 Employers 2024 for the fourth year, finishing 86^th. Read more

Fix Auto UK’s presence in the North East of England has been significantly enriched following the appointment of Fix Auto Darlington. The addition is the latest by the Drive Vauxhall organisation that now has five of its eight sites fully immersed in the Fix Auto UK network. Read more

AutoRaise has donated 50 new laptops to Emtec Colleges to support apprenticeship students and future students.

Bobbie Currie of FMGRS Dumfries has won SATA’s Custom Design Spray Gun competition.

PJB Accident Repairs has worked with Gary Chew of Small Torque to launch a new website.

Exclusive Repair Network has added ERN + to its repair offering, providing a complete repair solution for super prestige vehicles post-accident.

KC Autos has secured BMW/MINI vehicle repair approval. They join a VM portfolio including JLR, VAG, Toyota/Lexus, Stellantis, and Ford.

EB Crash Repair has been given a positive recommendation to complete our transition to BS 10125:2022.

The son of Fix Auto UK Basingstoke owner Dale Morris has started a 14,000-mile solo bike ride around the world from his father’s repair site. Henry, 24, will travel through 21 countries on an epic adventure. Read more

Industry News

Today’s challenge, tomorrow’s normal?

In a far-reaching debate during ARC360’s Future Vehicle Technology, Chris Downing, Head of Sales and Operations, Stellantis, warned that the ZEV (zero emission vehicle) Mandate is the single biggest challenge facing manufacturers today. Read more

Sector experts join motor conference line-up

James Driscoll, Senior Claims Manager – Motor Damage and Credit Hire, Aviva; Donna Scully, Joint Owner/Director, Carpenters Group; and Stuart Sandell, Assistant Vice President Sales – UK and Ireland, Enterprise Mobility are the latest leading names to join ILC’s Exclusive Motor Claims Conference 2024 agenda. Read more

Robertsons tackles repair delays with parts solution

Robertsons is helping vehicle repairers cut costs and key-to-key times by sourcing and delivering hard-to-find parts. Read more

Parking technology proves most popular car technology

According to recent survey data gathered by insurance comparison site Uswitch, the most popular automotive technology installed on vehicles are parking sensors, with the second most popular proving to be parking cameras. Read more

WorldSkills UK partners with UVAC

WorldSkills UK has announced its first ever Higher Education partnership with the University Vocational Awards Council. Read more

Repairify set for Automechanika

Repairify will showcase its advanced vehicle diagnostic and calibration technology, spearheaded by its asTech Digital ADAS Calibration Unit, at Automechanika, which takes place from 10-14 September. Read more

Copart to expand Wisbech Operation Centre

Copart UK has announced plans to expand its Operation Centre in Wisbech, Cambridgeshire. Read more

Green Parts Specialists delivers carbon literacy training

The Green Parts Specialists has announced a company-wide roll-out of carbon literacy training, led by Copart UK Ltd and accredited by The Carbon Literacy Project.

FCA announces DCA complaint pause

The Financial Conduct Authority has announced that firms will not have to respond to discretionary commission arrangement (DCA) complaints until 4 December at the earliest. Read more

AkzoNobel enhances EV safety with powder coatings range

AkzoNobel has developed new innovative powder coatings technology that provides improved electrical protection for electric vehicle battery systems. Read more

20,000 automotive vacancies still a big gap to fill

The Institute of the Motor Industry’s (IMI) latest Vacancy Rate Tracker for June 2024 data from the Office of National Statistics (ONS) shows a reduction from 3.7 to 3.6 vacancies for every 100 employees. Read more

A1 ADAS Solutions Group awarded hat-trick of ISO accreditations

One of the aftermarket’s leading ADAS, diagnostic and workshop equipment businesses has become the only specialist ADAS company in the UK to achieve three ISO standards. Read more

Positive used car outlook for the rest of 2024, but big change ahead

According to the latest market analysis by Auto Trader, based on the current trajectory, the used car market is expected to perform well in the latter half of the year, with sales predicted to rise 5% year-on-year (YoY) to circa 7.6m transactions. Read more

RWC Training gains access to Ezi-Methods

RWC Training delegates and apprentices will have full access to Ezi-Methods’ vast collection of vehicle repair methods to help with their studies. Ezi-Methods offers 77,375 repair methods encompassing 63 makes of vehicles that embodies 1,100 models and 1,517 body styles. To date, more than 5.2 million repair methods have been downloaded.

VM News

Ford BlueCruise hands-free driving technology approved for customers in Europe

Ford BlueCruise hands-free driving technology can now be used in a total of 15 European countries, following approval by the European Commission. Read more

Think global – act local for local

The Neue Klasse will usher in a new era of fully electric driving at the BMW Group – the success of which will depend heavily on the production of powerful high-voltage batteries. Read more

Nissan unveils inaugural Integrated Report and new sustainability plan

Nissan published its Integrated Report 2024, which showcases the company’s business progression as it accelerates toward its Ambition 2030 vision, always with sustainability at its core. Read more

Volvo Cars global sales up six per cent in July

Volvo Cars reported global sales of 57,447 cars in July, up 6 per cent compared to the same period last year. The sales increase was primarily driven by the strong sales of our fully electric cars in Europe. Read more

XPENG announces first global Tianji XOS 5.2 OTA upgrade

XPENG Motors, a leading Chinese smart electric vehicle company, today showcased its cutting-edge advancements in AI technology during the XPENG Smart AI Technology Conference. Read more

Uber and BYD Partner to Accelerate Global EV Transition

Uber Technologies and BYD have announced a multi-year strategic partnership designed to bring 100,000 new BYD electric vehicles onto the Uber platform across key global markets. Read more

People

Nationwide Assistance Group has appointed Stephan Surmont as Group Managing Director.

Daniel Austin has been named Procurement Senior Officer at Allianz.

It is with sadness that PPG has paid tribute to its former Market Director and well respected industry figure, Gethyn Davies who passed away this week at the age of 56. Our thoughts are with Gethyn’s family, friends and colleagues.

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Today’s challenge, tomorrow’s normal?

2 August 2024

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

The ZEV Mandate sets EV targets around the proportion of total sales each manufacturer has to meet annually. The targets increase incrementally to 80% of total sales by 2030 and 100% by 2035.

Chris, who was joined on stage by Activate Group Director of Product Pete Thompson, said, “The ZEV Mandate is the biggest threat to our industry from a manufacturer point of view that we’re facing today. The target this year is 22% and the fines are huge for failing to comply; £15,000 for each car and £18,000 per van. So you can see they are prohibitive from a volume manufacturer perspective.”

He warned that the number of BEVs (battery electric vehicles) a manufacturer sells will have a ‘direct’ impact on the number of petrol and diesel models it makes available to market, with the very real possibility of manufacturers being put under pressure to restrict ICE (internal combustion engine) models to customers, either retail or fleet.

Chris continued, “At the current YTD sales mix, we now have to sell approximately one BEV car to sell three ICE cars. We are absolutely facing the prospect at the end of the year of telling customers they may have to wait until 2025 to take delivery unless it’s a BEV..”

Production

Meanwhile, he revealed that the ZEV Mandate is having a substantial impact on production in the UK. Stellantis has invested £100m in its Ellesmere Port to support EV production, and its Luton plant will be electrified next year.

However, he suggested that if natural demand for BEV does not increase in order to meet targets, there is a fear that some difficult decisions may have to be taken in regard to UK production.

Chris said, “If manufacturers are not selling the volume and not making the profit, ultimately you have to consider shutting the doors to right-size production capacity against sales. That’s the level of seriousness that we’re facing at the moment from a from a manufacturing point of view.”

Repairers

Manufacturers are not the only ones facing the implications of EVs. Pete said that he had created a word cloud from recent articles considering EVs and the two words most prominent were ‘fear’ and ‘uncertainty’.

Activate Group handles about 80,000 repairs a year. Only six or seven per cent of them are EVs, which the group is able to take in its stride. But that doesn’t mean there is not concern among its customers.

Pete said, “The questions we’re getting from fleets are around vehicle off-road times, average repair costs, green parts availability and overall repair times. We are reaching out to get additional data because our customers, whether they be fleet or insurance, are asking.”

Possibly the most significant issue around EVs now is higher repair costs. It is well-established that EV repairs are more expensive than their ICE counterparts, and these costs were only going to increase.

Pete explained, “The biggest challenge with EVs is the lack of aftermarket and green parts at this moment in time for the majority of models. We manage that through the Activate Parts side of our business.”

The other pressing issue is a lack of skills. This impacts the entire car parc but is most acute when it comes to EV repairs.

Pete said, “There is a technician shortage in general, and specifically when it comes to repairing EVs. So when you look at repair capacity, it’s also the capability and as an industry we need to ensure we are investing in this area.”

Costs

To help manage costs, he suggested that FNOL (first notification of loss) has never been more important in ensuring the right jobs are triaged to the right repairers and the correct processes are followed ‘first time’ to prevent delays.

He said, “If you get it right first time, you got your best chance of controlling the cost of claim. With Consumer Duty, we need to ensure the customer is always at the centre of whatever technical decision we make, but we need to consider how much can we realistically automate?

“Accurate triage will help us down the line and if we can routinely deal with the easy-to-do stuff, we can apply more time to the more complex cases where ADAS functionality is involved for example.

“We know it takes longer to repair vehicles with more advanced technology, so we need to make more time in the claims journey by making data-led decisions earlier. And you can do that by automating the simple cases and allowing experienced handlers to manage the complex ones.”

Meanwhile, manufacturers also have a role to play in reducing costs, and Chris said that Stellantis is trying to soften the financial strain through a number of initiatives around green parts, battery remanufacturing, and battery repair.

He said, “We’ve invested in a platform for green parts across Europe and will start working with some UK recyclers soon. We’re now also working with European recyclers to get hold of the end-of-life vehicle and bring it back into our manufacturing chain, whether that is reusing or remanufacturing the parts and then recycling materials.”

Future

Looking ahead, they agreed that the traditional car ownership model could change with more and more customers opting to lease instead of buy.

One opportunity this can create is around manufacturing cars with components that can be updated at the end of the lease.

Chris explained, “As a manufacturer we can take that car back and upgrade it. We might put an updated battery in it or an updated infotainment system or change the front bumpers.”

The other key factor going forward would be data. Pre-collision data from connected cars can enhance claims following a collision by determining immediately if it is a fault or non-fault claim, while good use of data can also be used to support better decision-making throughout the supply chain.

Pete concluded, “One of the challenges is how we can make more data-informed decisions to help repairers in our network who are considering becoming EV capable or getting vehicle manufacturer approval.

“But data can be used to support all our customers. If there is uncertainty and fear, we have to remove that and sharing data, and being transparent is one of the key parts of that.”

ARC360’s Future Vehicle Technology was held at the Manufacturing Technology Centre (MTC) in Coventry, supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: e2e, Gemini ARC, Repairify and Prasco. The event was sponsored by Activate Group and Thatcham Research along with vehicle manufacturer – Stellantis.

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Steer Automotive acquires Komoo

1 August 2024

Bodyshop, Environment, Finance, Insurance, Mobility, People, Supplier, Vehicle Repair and Words

Steer Automotive Group has acquired Komoo, diversifying its market offering and strengthening its position in the UK automotive repair market.

Komoo, with its established network of fleet repair sites located near airports and vehicle storage hubs, brings extensive expertise in providing rapid, high-quality repair services, supporting vehicle rental and corporate fleet customer bases. These strategically positioned sites enable Komoo to offer swift and efficient repair services, minimising downtime for clients. Their proximity to major transportation hubs allows for seamless logistics, ensuring that vehicles can be serviced and returned to operation quickly.

The acquisition of Komoo aligns with Steer’s vision of becoming a leading provider of superior automotive repair services across a wider market, providing strategic diversification in the repair market.

Carl Henderson, Managing Director of Komoo, Dale Peart, Director of Komoo and Jordan Ashmore, Operations Director, remain at the helm of the company, supported by Steer, to focus on providing outstanding repair services to the fleet and vehicle rental market.

Carl Henderson said, “Becoming part of Steer Automotive Group marks a significant step forward for Komoo. This integration will enable us to leverage Steer’s extensive resources, enhancing our ability to deliver rapid, high-quality repair services to a broader customer base. We are eager to begin this new chapter and contribute to Steer’s growth and success.”

Richard Steer, Chief Executive of Steer Automotive Group, added, “We firstly want to extend a huge welcome to our new colleagues at Komoo. The acquisition will boost our repair capabilities, expand our service footprint and diversify our market presence, ensuring that we remain at the forefront of the automotive repair sector and continue to meet the evolving needs of our clients and our industry.”

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FCA announces DCA complaint pause

30 July 2024

Finance, Mobility, People, Supplier, vehicle sales and Words

The Financial Conduct Authority has announced that firms will not have to respond to discretionary commission arrangement (DCA) complaints until 4 December at the earliest.

When launching a review into whether motor finance customers have been overcharged because of the past use of DCAs, the FCA paused the eight-week deadline to respond to customer complaints to prevent ‘disorderly, inconsistent and inefficient outcomes for consumers’.

It has now said the pause will last until at least 4 December, with the FCA expected to publish its review into past use of DCAs and suggest next steps in May 2025.

Next steps could involve consulting on a redress scheme or asking firms to start dealing with complaints again as usual.

The FCA said, “We’re working hard to understand how DCAs affected the cost of credit for people borrowing money to buy a vehicle. We’re assessing thousands of records spanning 14 years.

“Firms involved in our review have engaged with us constructively, but many have struggled to supply the data we need within the requested time. Reasons for this include firms not keeping older data, and data being stored on multiple systems, or being spread between lenders and brokers. While we now have the necessary data, the delays mean we will not be able to set out next steps by the end of September 2024 as expected.”

“We intend to set out the findings of our review, and whether we plan to introduce an alternative way of dealing with DCA complaints by end of May 2025.”

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ARC360 News – Friday, 26 July 2024

26 July 2024

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

Bodyshop Briefs

Steer Automotive Group has unveiled its first purpose-built electric vehicle repair site, Steer Electric Eastleigh.
The collaboration between Gemini Accident Repair Group, Mac Tools UK, and Emtec Colleges will announce the winners of the MacNIFICENT Toolbox Design Competition shortly.
Adlington-based ST Accident Repair Centre has been awarded the BSI Kitemark Accreditation for vehicle damage repair.
Silvester Crash Repair has achieved carbon neutrality in accordance with PAS 2060.
Whaley Bridge ARC has taken delivery of its new KECO Glue Pull Repair System.
Brandon Accident Repair has become a Tesla approved bodyshop.
Steer Automotive Group has achieved carbon neutrality in accordance with PAS2060 for the second year in a row after reducing CO2 emissions by an additional 5.3%
In collaboration with Emtec Colleges, Steer Automotive Group has welcomed 60 more apprentices to the group.
Greg Biggam Accident Repair Centre has passed its first unannounced BS 10125 Kitemark audit.
Thatcham Research hosted the AutoRaise trustee board for a day of learning and insights.

Industry News

Matt Freeman of cap hpi delivers keynote address

The used car market, electric vehicles, and new technologies were the subject of a keynote address delivered by Matt Freeman, Managing Consultant, cap hpi, at ARC360’s Future Vehicle Technology themed conference.

Enterprise Repair Partner Event 2024: A showcase of innovation and partnership

The third annual Enterprise Repair Partner Event took place on 11 July 2024 at the prestigious Chesford Grange Hotel, Kenilworth marking the second consecutive year the venue has hosted this key gathering. Attended by industry leaders, partners, and stakeholders, the event highlighted the innovations, challenges, and successes within the vehicle repair and mobility sector. ARC360 was on hand to find out more.

Motor conference set to explore key market dynamics

ILC’s Exclusive Motor Claims Conference 2024 is set to explore the key market dynamics shaping the motor insurance claims sector in 2024 and beyond.

Themed ‘Preparing for a better tomorrow’, the event takes place on Thursday 3 October at the UK’s highest event space – Landing Forty-Two in the Leadenhall Building London.

Thatcham Research sets government seven challenges

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SYNETIQ and cap hpi agree salvage data deal

Vehicle remarketing and salvage company SYNETIQ has signed a data deal with vehicle provenance check company cap hpi to provide customers with information around total losses.

Premiums fall for second successive quarter

Comprehensive car insurance premiums fell six per cent, or £59, between April and June this year, according to the latest Confused.com Car Insurance Price Index in association with WTW.

Home and motor insurance show resilience after IT outage

Consumer Intelligence has reported that the insurance industry has shown considerable resilience and is recovering after the largest IT outage in history.

LKQ Europe sets concept network target of 10,000 workshops

Leading distributor of automotive aftermarket parts, services and solutions in Europe, LKQ Europe, has launched a central workshop concept hub to bring its 16 concept brands closer together.

Ageas reveals new crash for cash scam targeting van drivers

Ageas has identified a worrying new trend of so called ‘crash for cash’ scams involving vans and mopeds. This new type of fraud sees moped-riders deliberately manoeuvring their vehicles into the path of reversing vans.

AND-E acquires assets of Nukula

AND-E, the captive insurer for the Toyota and Lexus brands through its subsidiary business Toyota Insurance Management (TIM), has acquired the trading assets of Nukula, the former administrator for Toyota and Lexus add-on insurance products in the UK.

One in ten motorists have had a collision while driving abroad

New research from Aviva reveals that almost one in seven motorists have had an incident abroad with 11% experiencing a collision while driving overseas.

ADAS market to swell by £26.2bn in four years

The size of the global ADAS market is expected to grow by £26.2bn from 2024 to 2028, according to Technavio.

£350m sale of PI group in the offing as turnover and profit soar

Private-equity backed personal injury business Winn Group has reported soaring revenue and profit amid talk that it is to be sold for £350m.

Rooster attempts to disrupt UK motor market

UK insurtech motor provider Rooster is looking at new ways to target the younger generation of drivers with innovative policies.

WhoCanFixMyCar rebrands to FixMyCar

The UK’s largest online marketplace for car repairs & maintenance, WhoCanFixMyCar, has rebranded to FixMyCar.

Perfect Paint flourishes in ITAS audit

ITAS has recently carried out a successful audit of Perfect Paint Centre Milton Keynes on behalf of the Honda and Mazda brands.

Todd Engineering upgrades Zeus spraybooth

Todd Engineering has announced an upgrade to its Zeus all-electric spraybooth, which offers advanced technology for efficient and eco-friendly curing.

Vector Group acquires vehicle measurement tech manufacturer CSM

CSM Computer-Systeme-Messtechnik, a manufacturer of networked measurement technology and data loggers for vehicles and test benches, has been acquired by software specialist Vector Informatik.

Car-O-Liner hosts ADAS awareness day for NBRA

Car-O-Liner proudly hosted an ADAS Awareness Day on behalf of the National Body Repair Association (NBRA) at their UK headquarters.

Vehicle theft remains at 15-year high according to Government statistics

The number of vehicles stolen in the UK remains at a record high level, according to new data from the Office for National Statistics (ONS).

VM News

VW and Xpeng pursue electric dreams

Volkswagen and Chinese EV pure play start-up Xpeng have entered into a new agreement to jointly develop electric architecture based on Volkswagen’s China Main (CMP) and Modular Electric Drive Matrix (MEB) platforms.

ZEV mandate targets slip out of reach for major brands

Car makers including Renault, Volkswagen, Land Rover, Ford and Toyota are falling far behind targets for the UK’s ZEV Mandate, which requires 22% of this year’s sales to be of zero-emission models.

Mercedes-AMG reorganises its GT Sport division

Mercedes‑AMG has taken groundbreaking measures to strategically reorganise its motorsport division to meet future requirements and plans.

Toyota joins Coca-Cola in hydrogen fuel cell testing

Toyota has started testing a new hydrogen-fuelled truck with Coca-Cola as part of the drinks company’s supply operations.

End of an era at Bentley

Bentley Motors is celebrating production of the last hand-built, high performance 12-cylinder engine at the company’s UK headquarters in Crewe.

People

Craig Brooks has been named Technical Director – Motor TPA at Davies.
SATA has expanded its technical team with the appointment of Terry Oxley as Sales & Technical Manager for The Midlands.
Tony Fearon has joined Vertu Accident Repair Centre Nottingham.
Shaun Hopkins, Supply Chain Manager at AXA, is raising money for Macmillan Cancer Support through an all-day darts event.

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Matt Freeman of cap hpi delivers keynote address

26 July 2024

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

Taking place on 27 June at the Manufacturing Technology Centre (MTC) in Coventry, the conference featured insights from insurers, vehicle manufacturers, repairers and leaders on how the sector is evolving.

The used car market

Focusing first on the used car market, Matt said that values remained fairly-stable until the pandemic struck, typically falling three to six per cent a year through the life cycle of a vehicle.

However, in the wake of the pandemic used car values spiked by nearly a third. They peaked in March 2022 at 31.2% and then remained at that level for nearly a year.

Since this time the market has returned to ‘normal’, with correction taking place throughout 2023, although cap hpi data indicates that values have not fallen back to pre-pandemic levels and remain 13.8% up on February 2021 levels.

The EV market

The fall in values has been most noticeable in electric vehicles, with average values plummeting by 60% since September 2022. In fact, half of the 10 fastest depreciating models since then are electric.

In contrast, used petrol and diesel models remain 16% and 14% higher than they were in 2021, with hybrids also tracking at similarly inflated levels.

In terms of EV numbers, Matt said that about five per cent of the total UK car parc is now electric (eight per cent in the car sector), which equates to more than a million vehicles.

But when looking at new registrations, electric models account for well over a third of the sales, with pure battery electric vehicles more than half of that (16.5%).

He said, “We’ve seen a very significant change in the kind of cars that are flowing through into the parc and will ultimately then flow through from the new market into the used market. And that’s obviously going to accelerate because of the ZEV (zero emissions vehicle) mandate which is going to have a significant impact on the shape of the vehicle parc.”

He suggested that if OEMs get anywhere near meeting ZEV targets it could drive EVs towards a 20% share of the parc by 2030.

New technology

The growing number of EVs is clearly going to impact both values, not least because the rapidly advancing innovations around battery technology is accelerating obsolescence.

Matt explained that as batteries develop, even the latest versions are being left behind in a matter of years. This is impacting their value dramatically, as is the continued concerns around a lack of charging infrastructure.

However, although there are only around 60,000 public charging stations in the UK today, that is expected to reach the 100,000 milestone by next August, which Matt suggests could have a psychological impact on customer confidence and a tangible impact on their driving experience.

But innovation is not limited to powertrains.

Matt said, “This is an industry which prides itself on innovation, but I don’t think we’ve had a pace of change and a concentration of change like this in the 30 years I’ve been in the automotive industry.”

There is an argument though that the speed of innovation is making vehicles difficult to value in the eyes of customers, who are not prepared to pay for what they can’t see, don’t understand, and don’t believe they will use regularly.

For example, Matt pointed to research carried out by Ford around its self-parking function. It found that customers rarely use the feature and as such the brand is now removing it from many models.

While many similar features around autonomy are in-built, many are available as a ‘function on demand’, which is also creating confusion for the customer.

Matt said, “Function-on-demand sounds great, the ability to add technology. But you’ve got to pay for it usually and customers value the wheels that are already on a car, not the wheels you potentially can add.”

Brands

Alongside this, there are a number of new brands entering the market, with many Chinese manufacturers poised to enter the UK market with 10 models in a range. UK customers have traditionally been open to new entrants from Europe, Japan and Korea, but there is uncertainty around how they will value many Chinese brands in an already crowded market.

Matt concluded, “We’re in an era of unprecedented change. But the path is set and the external forces like government legislation are going to move consumers into these new technologies, as well as the manufacturers introducing them and wanting to profit from them.

“But there are many, many factors which create uncertainty and we should expect continuing turbulence. Data is vital to signpost those changes. We need to look across the industry for that data to take the opportunity to use new and mix datasets to better understand what’s going on around us.”

The event was sponsored by Activate Group, Thatcham Research, and Stellantis, and supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: e2e, Gemini ARC, Repairify and Prasco.

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Enterprise Repair Partner Event 2024: A showcase of innovation and partnership

23 July 2024

Bodyshop, Car Rental, Finance, Mobility, People, Supplier, Technology, Training, Vehicle Repair, vehicle sales and Words

Ryan Johnson, Senior Vice President of UK and Ireland Enterprise Mobility, kicked off the event with an inspiring keynote address centred around the changing world of mobility, the rebranding of the business and the value of its people.

He emphasised Enterprise’s longstanding commitment to ‘leading by listening’ and building bespoke solutions tailored to the needs of vehicle manufacturers, repairers, and customers.

“At Enterprise, our mission is to advance the world one journey at a time,” stated Ryan, reflecting on the company’s 65-year history, spanning 90 countries, and with a fleet of 2.3 million vehicles worldwide – including 150,000 in the UK.

Ryan also addressed the challenge of integrating Zero Emission Vehicles (ZEVs) into Enterprise’s fleet and the need for innovative solutions and infrastructure development to support the transition to greener fleets.

“It is an exciting but challenging time – we want to be a central part of helping to connect vehicle manufacturers, repairers and customers,” stated Ryan.

Repair highlights and strategic insights

Nick Sweetman, Assistant Vice President of Vehicle Operations for UK and Ireland, Enterprise Mobility, presented the highlights and strategic insights across its repair network from the past year. He celebrated the successes in relationships, data integration through Entegral, vehicle collection, and engineering performance.

However, he also pointed out areas of opportunity, including deployment strategies, parts management, delegated authority, and enhancing EV capabilities.

On the customer repair side of the business he highlighted the growth in the number of partners and a static work mix as key success factors. He also reiterated the point that over three quarters of work volumes come with an Enterprise mobility solution – relieving the costs and pressures associated with courtesy car provision.

Joining Nick on stage to announce the new LKQ Loyalty Programme, Danny Watkins, Head of Network Relationship Management at LKQ, explained how the initiative would result in network members accruing points on purchases to redeem on training and equipment.

The scheme is officially set to get underway from 1 August and Enterprise will be communicating full details with its network in the coming weeks.

Technological advances

The event featured several insightful presentations from key industry figures.

Mark Marshall, BMW Group Technical Trainer, along with Andrew Rodbourne, Manager- Bodyshop Development at BMW UK highlighted BMW’s advancements in EV technology, now in its fifth generation. They showcased the new sixth-generation models which are set to offer a 620-mile range and 30% quicker charging times.

Mark also highlighted how the business currently has 1,000 hydrogen IX5 vehicles on test – illustrating the brand’s commitment to diverse green technologies.

With the technology advances the manufacturer has made, Andrew emphasised the necessity for BMW vehicles to be repaired in its approved network and promoted its total loss borderline programme as a valuable support solution.

Tom Leggett, Vehicle Technology Manager at Thatcham Research, was next to explore the advances in ACE+ (Assisted and Automated; Connected; Electrified; and Everything Else), shedding light on the future of vehicle technology and its implications for the repair industry.

Tom said, “Systems will get more advanced and more complicated. This is partly being driven by demand from regulators around increasing safety standards, and a lot of technology is now fitted as standard. We’ve not yet seen the reduction in claims frequency we’d like to, but there has been a reduction in severity.”

Industry trends

Paul Sell, Managing Director of Trend Tracker, provided a market insight, noting the rapid evolution from surplus demand to surplus supply in the repair market. Paul said, “While repair volumes have seen a slight decline, the overall outlook remains positive,” highlighting increased capacity and reduced cycle times.

He continued, “However, the skills shortage remains a key issue requiring investment, along with the need to cope with the plethora of new manufacturers entering the rapidly growing BEV market in coming years.”

Steve Silverwood, Managing Director, ECA, provided an overview of energy in accident repair centres. Despite a decrease from 2022’s peak, Steve was keen to emphasise that average energy costs per job were still 55% higher than 2020 (pre-pandemic). He urged repairers to buy better, use less and pay for what you use. Steve cited that behaviour was one of the most basic costs controls within a bodyshop. He also predicted a 10-20% increase in the next two years.

Integration and optimisation

Olly Chambers, Assistant Vice President of Sales and Operations at Entegral, provided an update on technological advancements. He discussed the exponential growth of CAPS in the UK, which now connects 1.3 million claims per annum and supports 90% of UK repairers. Olly offered various guidance around CAPS’ best practice to ensure users were optimising the opportunity it presents.

He referenced The CAPS National Advisory Council which provides expert-led governance, explaining that future development is in the hands of industry leaders and experts. Two areas of current focus for development are vehicle recovery and glass repair/replace, whilst a new scorecard has also been launched to get data to users faster. The next phase of development is assignment management enhancements and enhanced WIP analytics.

Closing out the session Olly provided a brief update on management system, Bodyshop 360 – which is composed of five modules including the customer app launched earlier this year and updates to Core.

The event concluded with an interactive panel session hosted by Stuart Sandell, Assistant Vice President of Sales for UK and Ireland, which centred on the challenges of attracting new talent and retaining existing skillsets within the sector. References were made to the need for government support, cross industry collaboration, better promotion of the industry, changing generational behaviours, and the need to listen.

The Enterprise Repair Partner Event 2024 showcased the resilience, innovation, and collaborative spirit of the vehicle repair and mobility sector. With a focus on technological advancements, strategic partnerships, and overcoming industry challenges, the event reinforced Enterprise’s role as a leader and connector within the industry.

Enterprise Repair Partner Awards 2024

The evening culminated in the prestigious Enterprise Repair Partner Awards 2024, hosted by Andrew Mackenzie, UK and Ireland Network Manager. The awards recognised outstanding performance and contributions across various regions. The winners included:

Best Fleet Repair Partner – South East: Grove Autos
Best Customer Repair Partner – South East: Drive Vauxhall – Bury St Edmonds
Best Fleet Repair Partner – South West: Smart Bodyshop Solutions Ltd – Exeter
Best Customer Repair Partner – South West: Carbody Banbury Ltd
Best Fleet Repair Partner – North West: Lichfield ARC
Best Customer Repair Partner – North West: KC Autos – Northwich
Best Fleet Repair Partner – North East: Bodyline Dunston Ltd
Best Customer Repair Partner – North East: Vertu Accident Repair – Teesside
Best Fleet Repair Partner – Scotland & Northern Ireland: QA Vehicle Solutions
Best Customer Repair Partner – Scotland & Northern Ireland: Arnold Clark – Ayr
Customer Excellence 2024: Rye Street Broxbourne Ltd & KC Autos – Blackburn

Guest Speaker

Guest speaker Gerald Ratner, widely credited with making the ultimate off-the-cuff gaffe with his infamous ‘it’s total crap’ description of some of his company’s products, entertained attendees by regaling his riches to rags story. Gerald closed by telling attendees: “Value what you’ve got – brand is everything. It takes years to build up so cherish it.”

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Corporate Partners

Partners

Associate Partners

ARC360 News – Friday, 19 July 2024

19 July 2024

Bodyshop, Environment, Finance, Insurance, Mobility, People, Salvage, Supplier, Technology, Vehicle Repair, vehicle sales and Words

Bodyshop Briefs

Miguel Harvey of Steer Automotive Group has won gold at The SATA Challenge in Toronto, Canada. Representing World Skills UK, Miguel showcased his incredible skills against competitors from Canada, USA, Germany, Barbados, and the UK during the final pressure test before World Skills Lyon this September.
Chartwell hosted Bentley Motors at its state-of-the art bodyshop after it was chosen to host the filming of its new paint and body campaign.
Walton Accident Repair Centre’s partnership with S&G Response has been featured in the Northwest Bodyshop Suppliers magazine, showcasing its teamwork and service.
Brandon Accident Repair Centre has now achieved full multi brand approval status for the Stellantis UK Accident Repair Programme.
Novo Automotive Group is following up the launch of its Witham site in February with a second site due to open in Colchester in September.
Trenhams has achieved carbon neutrality certification as part of PAS2060 for the second year running.
Fix Auto Manchester East has been named as a finalist at the Oldham Business Awards for the second year in a row.
Lancashire-based bodyshop ST Accident Repair Centre has been awarded the BSI Kitemark Accreditation for Vehicle Damage Repair.
Two leading UK repairers – Allied Automotive and Peggs Accident Repair Centre Ltd – have recently featured on popular YouTube channel videos from Matt Armstrong (2.3m views) and Mark McCann (760k views).

Industry News

Global outage causes massive disruption

A global IT outage has caused massive disruption to businesses and services in all sectors.

Cyber security company Crowdstrike is reportedly the source of the tech issue, although the cause of it is not yet known.

e2e partners with ARC360

e2e Total Loss Claims Management – the UK-wide network of progressive salvage and recycling agents – has joined ARC360 as a Partner.

Its network of independent salvage and automotive recyclers provides clients with a market leading, sustainable, nationwide solution for vehicle salvage, disposal and reclaimed parts.

Stellantis provides network with full access

Stellantis brought together it’s UK-wide repairer network for its first National Repairer Forum back in June.

The event, which took place at the Manufacturing Technology Centre in Coventry – to tie-in with the Stellantis-sponsored ARC360 Future Vehicle Technology themed event – provided around 100 of its approved accident repairers with the chance to hear the latest insights and initiatives; raise any queries; and enjoy networking. ARC360 was on hand to capture the key themes from the day.

Insurers suffer worst year in a decade

The UK motor insurance market experienced its worst performing year since 2011 last year, recording a loss-making Net Combined Ratio (NCR) of 112.8%, according to EY’s latest UK Motor Insurance Results.

Premiums fall for second successive quarter

Comprehensive car insurance premiums fell six per cent, or £59, between April and June this year.

Car insurance premiums have now fallen for two consecutive quarters after a dip of five per cent in the first three months of 2024, with average annual premiums now £882, according to the latest Confused.com Car Insurance Price Index in association with WTW.

S&G Response marks birthday milestone

S&G Response is celebrating its 15^th birthday this year. To mark the milestone, it hosted a Summer Party at Champneys Mottram Hall and a golf day to raise funds for The Children’s Adventure Farm Trust.

Repairify continues Australian development

Repairify has celebrated the progress it has made it Australia in just two years, with operations in Sydney and a partnership with Capricorn in Perth helping to deliver its repair solutions to repairers across the country and New Zealand.

Revive! unveils cosmetic car insurance

Revive! Auto Innovations has signed a new five-year deal to provide cosmetic insurance to more than 3,000 UK dealers who retail motor warranty products from Assurant.

The arrangement will see a range of products covering bodywork scratches and dents, and alloy wheel damage.

Autoglass re-opens sites after polish

Autoglass has re-opened two sites – Gloucester and Worsley – after carrying out refurbishment works.

ACIS system delivers cost-cutting AIMS

An ACIS study during the first half of 2024 has found that bodyshops using its Inventory Management System AIMS have reported a significant reduction in costs per sold hour.

ACIS launched the web-based system in 2022 as a successor to Ascribe.

cinch opens first store

Hot on the heels of selling its 200,000th car online, cinch has announced the launch of its first physical cinch Store.

The store will open in Bedford Road, Northampton next week – with other locations following soon after, including Birmingham, Bristol and Manchester.

Van drivers face £1.64bn theft bill

New research by Volkswagen Commercial Vehicles has revealed that 19% of van drivers have been the victims of theft in the last year, with the average value of stolen items at £1,700.

Silverlake celebrates police services

Silverlake has secured two four-year police contracts from the Automobile Association Developments Contractor Management.

It has renewed its contract with Sussex & Surrey Police while also winning a new contract with Hampshire & IOW Constabulary.

3M wins prestigious design award

3M is celebrating after winning a 2024 Red Dot Product Design Award for its Perfect-It Random Orbital Polisher, a handheld power tool developed for automotive repair paint finishing.

Allianz tailors motor insurance to suit individual

Allianz is now offering two levels of motor insurance, a product tailored to provide basic cover and a more comprehensive product. Both offer cover for accidental damage, windscreen damage, European cover and car thefts.

AkzoNobel expands Sustainable Repair Network to Scandinavia

AkzoNobel has announced that Danish repairer Qars 4M Lakering has become the first Scandinavian site to join its Sustainable Repair Network.

The Sustainable Repair Network has been developed to support businesses move towards net zero operations.

Chinese tariffs will have little impact

International research and strategy organisation ICDP has said that tariffs imposed on Chinese EV imports will have little impact on European markets.

However, it warns that one unintended consequence could be retaliatory tariffs from China that weaken European brands in the country.

Kwik Fit enhances motor insurance offering

Kwik Fit is partnering with Aioi Nissay Dowa Europe, a subsidiary of MS&AD, to offer motor insurance through its website.

Policies, which were introduced to price comparison websites last year, include cover for misfuelling and lost, stolen or accidentally damaged keys.

EV charging infrastructure on target

A new white paper by ChargeUK, Powering Ahead to 2030, has predicted that there will be more than 300,000 public charging points in the UK by the end of the decade, with a new point installed every 25 minutes.

Repairify announces NAPA deal

Remote diagnostics, calibrations and programming expert Repairify has signed a preferred partnership deal with NAPA to release asTech Mechanical across America.

The solution is a single device capable of accessing the majority of original equipment (OE) tools for shop owners.

VM News

Lucid announces EV range breakthrough

Lucid has unveiled a range of updates to the Lucid Air Pure that will see range increase to 420 miles from a battery pack that is just 84 kilowatt-hours. This makes it the first vehicle in the world to achieve a ratio of five miles of range per kilowatt hour (kWh) of energy.

Kia tops Customer Satisfaction Index

Kia UK has topped the latest UK Customer Satisfaction Index (UKCSI), compiled by The Institute of Customer Service, with 81.4 points compared to the automotive sector average of 78 points.

Volkswagen wins EV innovation award

Volkswagen has been named the most innovative volume brand in electric vehicles by the Center of Automotive Management (CAM). It collected the AutomotiveINNOVATIONS Award 2024 for advancements in range and charging capacity.

Audi unveils A5 family

Audi has introduced the new A5 family to the mid-size segment, 30 years after unveiling the first Audi A4. Going forward, the brand has said that even numbers will represent electric models and odd numbers will be reserved for combustion engines.

MG rejuvenates SUV line-up

MG is rejuvenating its HS SUV line-up with petrol and plug-in hybrid models.

All models feature the MG Pilot package, with Active Emergency Braking with Pedestrian and Bicycle Detection, Lane Keep Assist with Lane Departure Warning System, Blind Spot Detection with Lane Change Assist, Driver Attention Alert, Forward Collision Warning, Rear Cross Traffic Alert, and Door Open Warning as standard.

People

Motability Operations has announced Andy Broadfield will be joining the business from November as Managing Director of Electric & Insurance.
Vicki Starrs has been named Operational Excellence Consultant at Solus.
Simon Downing has joined Rapid Repair Network as Strategic Key Accounts Manager.
Michael Massey has been appointed as Head of Technical Capability & Innovation at FMG Repair Services
Tom Rumboll, UK Managing Director for IAA and CEO of SYNETIQ, has left the business to pursue other opportunities.
Autotech Group has appointed Nadege Gavarret-Clark as Group Project Manager and Jim Odams as Business Relationship Manager.
Ford has appointed Neal Sholto-Douglas as Aftermarket Fleet Support Manager.
Paul Grimbley has joined Direct Line Group as External Automotive Claims Engineer.
Jo Howcroft has been promoted to Senior Business Development Manager (Global) – Kitemark.
Craig Bridgman has been named New Senior Editor on cap hpi’s valuations team.
Marshall Motor Group has appointed Matt Southall as Strategy and Technology Director and David Johnson as Property Director.

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UK motor insurers report 2023 as worst performing year in over a decade, but expect profitability to return this year

19 July 2024

Finance, Insurance, Mobility, People, Supplier, Vehicle Repair, vehicle sales and Words

The 2023 losses – which followed a weak performing 2022, when the sector recorded an NCR of 111.1% – were the result of increased claims costs driven by sustained high inflation, rising costs of materials and labour, and premiums that continued to track below claims inflation.

However, with inflation now falling and premium increases in the second half of 2023, EY expects a return to profitability for the motor insurance sector this year, forecasting an NCR of 96% in 2024.

Mat Wheatley, UK Insurance Partner at EY, commented: “High inflation and rising costs have resulted in an extremely difficult couple of years for the UK motor insurance sector. This was particularly the case in 2023, which also saw balance sheets impacted by the delayed reaction to required premium adjustments in 2022.

“It has been a hard time for the sector, but hasn’t just been challenging for firms; 2023 was also difficult for motor insurance consumers who have faced a sharp increase in premiums to bring them in line with claims inflation. However, with inflation now falling and claims costs easing, better news is on the horizon for both insurers and consumers, and we expect to see the motor insurance sector return to profitability this year.”

Premiums rose by a over a quarter in 2023 (£544 per policy) and will rise further in 2024, but should begin to fall in 2025

In 2023, premium rates rose by 25.2% year-on-year (£109 per policy on average) as firms adjusted premiums in line with inflationary pressures. This correction will continue to drive up premium rates into this year, with consumer premiums expected to rise by a further 15.9% year-on-year in 2024 (£87 per policy on average). However, as the market returns to profitability, consumer premiums are expected to fall by -3.7% year-on-year in 2025 (-£23 per policy on average).

Mat concluded: “While there are positive signs that profitability for the motor insurance sector is within sight, macroeconomic challenges remain, and there is a sense of uncertainty around the impact of the 2025 Odgen discount rate change. As ever, it will be vital that motor insurers continue to carefully monitor their costs, adjust to changing customer behaviours, and support vulnerable customers while also looking for opportunities to innovate and grow.”