News Round-Up: Friday 6 August 2021

Listen up…

In the latest episode of the ARC360 podcast, we catch up with Phill Blowers, commercial director at Indasa Abrasives who offers an overview of his 35 years in the industry. He also shares his passion for cycling and reveals how he’s mixing work with pleasure by organising a charity bike ride in support of industry charity AutoRaise.

CAPS sees volumes dip for July

Claims volumes reduced by three per cent month-on-month according to the CAPS Claims Analysis report for July.

July’s unique claims figure stood at 79% of ‘pre-pandemic’ levels, compared to the 82% reported for June.

Regionally, only the East Midlands and Scotland showed uplifts in claims volumes.

Prasco UK develops smart parts App

Prasco UK has developed an App for smartphone and tablet users to speed up and make the replacement parts ordering process as seamless as possible.

Believed to be the first of its kind for the industry, the free-to-download App, which has been developed for both OS – or Apple – and Android operating systems, provides registered users with instant access to 150,000 parts currently held on site at the company’s main distribution hub in Thorne, near Doncaster.

Claims costs expected to keep climbing

The overwhelming majority of the automotive incident repair sector expects claims cost to continue rising in the next year.

Costs have risen sharply in recent years, driven up by increasing technology in vehicles and the rising price of parts, but results of a new survey suggest that most believe we are still some way short of the peak.

The second Great British Motor Claims Survey, hosted by ILC/ARC360, asked stakeholders if they expected accident claims cost to continue rising in the next year. A staggering 84% said yes, with a further five per cent unsure. Only 11% of respondents said they thought further rises were unlikely.

ABI: motor insurance at five-year low

The average price motorists are paying for their motor insurance now stands at a five year low according to the ABI’s latest Motor Insurance Premium Tracker.

The ABI’s latest Tracker for the second quarter highlights that: the average price paid for comprehensive motor insurance in the second quarter of this year was £430 – the lowest in just over five years, since Q1 2016. In the first six months of 2021 the average motor premium fell by £38.

NBRA updates tyre price guide

The NBRA has worked with Kwik Fit to update the Tyre Insurance Price Guide to ‘allow bodyshops to once again make a margin from fitting tyres where appropriate’.

Chris Weeks, Director of the National Body Repair Association (NBRA), explained, “For many years the Kwik Fit Tyre Insurance Price Guide has been the accepted insurance standard that bodyshops have been required to use for the tyre charge out price on insurance invoices. The price list had remained unchanged since 2017 leaving bodyshops in many cases forced to charge less for tyres than they were paying themselves.”

Fix Auto franchisee selects imageproof approach

Service Certainty’s imageproof Pro has been selected by Fix Auto Bury St Edmunds as its customer imaging solution.

Service Certainty imageproof Pro offers a national network of more than 4,000 professional photographers to capture high quality images of vehicle damage from the customer’s location of choice. The service helps promote more flexible working and process efficiency.

ARC360 special – The model technician: who is tomorrow’s prototype?

More than 100 years ago a single innovation accelerated production times of the Model T from 12 hours to 93 minutes.

The innovation in question was a moving assembly line, and as well as changing the entire landscape of manufacturing across multiple industries, it also changed the jobs within automotive manufacturing and the associated skill sets that were required.

In many ways a similarly seismic shift is happening now with advanced driver assistance systems (ADAS), digitalisation and electrification – new technology is replacing old; new processes are being introduced; and new job roles are being created within the workshop, or, at least, existing job roles are changing.

AXA launches STeP claims solutions

AXA has launched STeP, a digital claims solution set to transform the insurer’s online offering and provide more choice for its motor insurance customers.

The new solution, developed inhouse by AXA, sees the insurer expand its digital capabilities beyond electronic notification into a self-serve, end-to-end digital claims experience.

AXA’s Direct Motor and Swiftcover customers can notify and track a claim online and, for certain types of claims, the journey is also automatically integrated with AXA’s suppliers who will then help them with the repair or replacement of their vehicle depending on the type of damage.

Changes in motor highlighted by DLG

Direct Line Group’s gross written premiums reduced by 1.5% for H1 2021 as continued growth in Commercial, Home and Green Flag Rescue was offset by declines in Motor and Travel.

In the insurer’s half year report 2021, Penny James, CEO of Direct Line Group, stated: “In Motor we saw claims frequency remain below normal levels, fewer new car sales and a reduction in new drivers entering the market. These factors were strongest in Q1 and have started to reverse in Q2 at the same time as motor market premium stabilised.”

Meanwhile, DLG is one of seven major UK companies to have pledged to work together with government to help accelerate the mass adoption of electric vehicles (EVs) across the UK.

Volvo rewards 2020 High Achiever winners

Volvo has presented its 2020 High Achiever awards with Volvo Cars Poole and Poole Accident Repair Centre taking the overall title for the second consecutive year.

The annual competition highlights Volvo’s most successful retailer/bodyshop relationships by region with one overall winner.

The winners of the 2020 awards are:

Region One – Lookers Colchester & Chaplane ARC

Region Two – Stoneacre Chesterfield & Burrows Doncaster

Region Three – Marshall Derby & Fix Auto Nottingham

Region Four – Brindley Wolverhampton & Shorade ARC / Johnson Gloucester & MG Cannon

Region Five – Donalds Garage Ipswich & DJ Mackenzies Ltd

Region Six – Volvo Cars North London & AD Williams High Wycombe

Region Seven – Volvo Cars Poole & Poole ARC

Region Eight – Snows Winchester & Snows Accident Repair Centre

Registrations down for July

July’s new car registrations fell by -29.5% to 123,296 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

The decline was artificially heightened by comparison with the same month last year, when registrations rose dramatically as showrooms enjoyed a full month’s operation following the first 2020 lockdown.

However, the July performance was down -22.3% on the average recorded over the past decade, as the ongoing semiconductor shortage and the ‘pingdemic’ impacted on both supply and demand.

The light commercial vehicle (LCV) market saw its first decline since December 2020 as July registrations fell -14.8%. The month’s performance was a -4.0% decline compared to the pre-pandemic five-year average.

Indasa charity ride open for entries

Entries for Indasa’s virtual charity bike ride are now open.

The 100km virtual ride, allowing participants to join in their local areas, takes place on 25 September. All monies raised will support to the work carried out by AutoRaise in promoting the dynamic vehicle repair industry as a viable and rewarding career choice for young people.

Click here for more.

asTech backs Greener Bodyshop Awards

asTech, a Repairify company, is sponsoring the Outstanding Support for Bodyshops category in the NBRA Greener Bodyshops Awards.

Richard Taylor, asTech European business development director, said, “Our sponsorship of the NBRA Greener Bodyshops Awards reinforces our commitment to assist shops through high levels of service while being conscious of the environmental consequences of our solutions. By enabling bodyshops and SMR centres to reduce the movement of vehicles, we are helping them decrease their carbon footprint at the same time as conducting safe and accurate repairs.”

Cazoo brings refurbishment inhouse as rapid growth continues

Cazoo has brought its vehicle refurbishment in-house as it continues its rapid growth which saw sales increase by 429% to 10,692 in Q2 2021.

Alex Chesterman OBE, Founder & CEO of Cazoo, commented, “Our rapid growth trajectory continued in Q2 with record revenues of around £141 million, up 605% year on year, as consumers embraced the selection, transparency and convenience of buying cars entirely online.”

He continued, “During the quarter, we brought our vehicle refurbishment in-house and now have five vehicle preparation centres in operation across the UK, giving us a significant infrastructure advantage and complete control of our extensive UK-wide reconditioning and logistics operations.”

The business has also launched a new car subscription service offering both new and used cars with the option to purchase, finance or subscribe, all entirely online.

Ben introduces Big Breakfast fundraiser

Automotive industry charity, Ben, has launched its first ever Big Breakfast fundraiser in October.

The event runs for a week, starting on 4 October and ending on World Mental Health Day, 10 October.

Host a breakfast any day during that week and bring, bake, make and sell breakfast to raise money to support Ben’s work in the industry. Those hosting Ben’s Big Breakfast can also raffle a Ben bear to fundraise.

To find out more and sign up, click here.

Save the date…

ARC360 – Back to the Future – sees a welcome return to physical events on Thursday 25 November at the British Motor Museum, Warwickshire.

Offering an event experience to remember – including plenty of exciting ARC360 initiatives – the day will focus on just what the past means for the future of the industry.

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Claims costs expected to keep climbing

The overwhelming majority of the automotive incident repair sector expects claims cost to continue rising in the next year.

Costs have risen sharply in recent years, driven up by increasing technology in vehicles and the rising price of parts, but results of a new survey suggest that most believe we are still some way short of the peak.

The second Great British Motor Claims Survey, hosted by ILC/ARC360, asked stakeholders if they expected accident claims cost to continue rising in the next year. A staggering 84% said yes, with a further five per cent unsure. Only 11% of respondents said they thought further rises were unlikely.

Respondents cited new technology as the main factor behind rising costs, reducing the number of claims but raising the average price of a repair, while other contributors suggested the greater number of electric vehicles on the road, more costly reworks, and delays in authorisations from insurers.

With Covid-19 continuing to impact staffing levels, either directly or indirectly, respondents to the survey also warned that disruptions to the supply chain could be another factor forcing repair prices up.

The full Great British Motor Claims Survey will be available via the ARC360 website on Wednesday 11 August.

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CAPS sees volumes dip for July

Claims volumes reduced by three per cent month-on-month according to the CAPS Claims Analysis report for July.

July’s unique claims figure stood at 79% of ‘pre-pandemic’ levels, compared to the 82% reported for June.

Regionally, only the East Midlands and Scotland showed uplifts in claims volumes.

Year-on-year claims volumes were up 15% in July (64% 2020 Vs 79% 2021).

Despite the slight reduction in unique claims, supply chain transmissions continued an upward trajectory increasing by seven per cent to 94% for the month.

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News Round-Up: Friday 23 July 2021

Save the date…

ARC360 – Back to the Future – sees a welcome return to physical events on Thursday 25 November at the British Motor Museum, Warwickshire.

Offering an event experience to remember – including plenty of exciting ARC360 initiatives – the day will focus on just what the past means for the future of the industry and asks is it a completely new world the incident repair sector is operating in or does the past still provide some meaning for the future?

Reserve your place now

Adrian Furness appointed CEO of Covéa

Adrian Furness has been appointed as Chief Executive Officer of Covéa Insurance. Adrian succeeds James Reader, who is leaving the business and has no plans to take on another executive role.

Adrian has held the role of Chief Operating Officer at ILC Insurer Partner Covéa Insurance since December 2019, having previously been Claims Director of the company and its predecessor Provident Insurance since 2008.

Thatcham Research unveils EV Ready programme

Thatcham Research has unveiled its new ‘EV Ready’ Training Programme to support the industry’s need to learn how to handle electric vehicles safely and effectively.

The ‘EV Ready’ Training Programme caters for the future success of vehicle repairers, insurance companies and claims management organisations, as well as businesses operating in the fleet, salvage, recovery and vehicle auction sectors.

DLG set to partner with Motability

Direct Line Insurance Group plc (DLG) is to enter into a new partnership with Motability Operations Ltd to provide insurance to the Motability Scheme, supporting its more than 600,000 customers.

This partnership is expected to grow DLG’s Motor customer base by approximately 15% to over 4.5 million, adding further scale to DLG’s claims management service. The Scheme’s Gross Written Premium is approximately £500m per annum and, similar to Motability Operations’ current structure, Direct Line Group will reinsure 80% of the risk back to Motability Operations via Motability Operations’ reinsurance captive.

The new arrangements are expected to take effect in approximately 18 months and be for 10 year period.

Fix Auto adds to inner M25 coverage

Fix Auto UK’s position within London has been further strengthened with the appointment of its 12th repair centre that will serve motorists inside the M25.

Formerly known as MTS Vehicle Services, the repairer will now operate as Fix Auto Croxley Green and joins the network following a fast-tracked programme of development over the last 12 months by owner Matthew Jedrzejczyk.

Meanwhile, Fix Auto UK’s presence on Trustpilot has stepped up yet another a gear – with the network recording its 2,500th customer review.

XL Motors’ Fynn takes on ultra challenge

Matthew Fynn, Production Manager at XL Motors is running 145 miles, non-stop from London to Bristol along the Kennet and Avon canals to raise funds for Children with Cancer UK.

Matthew, who is hoping to raise as much money possible for the charity, has already completed three ultra-marathons this year as part of his fundraising efforts.

To support Matt’s incredible efforts visit his Just Giving page.

Major brands back autonomous ride hailing plans

Argo AI, Lyft and Ford Motor Company are working together to commercialise autonomous ride hailing at scale.

Argo AI and Ford will deploy Ford self-driving cars, with safety drivers, on the Lyft network, as part of a network access agreement, with passenger rides beginning in Miami later this year and in Austin starting in 2022.  As vehicles are deployed, Lyft users within the defined service areas will be able to select a Ford self-driving vehicle to hail a ride.

The aim is to deploy at least 1,000 autonomous vehicles on the Lyft network, across multiple markets, over the next five years.

Ageas predicts rise in ‘Crash 4 Cash’

Ageas Insurance is predicting a rise in induced road collisions, also known as ‘Crash 4 Cash’ scams, over the coming months as the UK leaves lockdown.

The insurer says it saw cases rise by 150% when the first national lockdown was lifted in 2020 and that it’s expecting another rise when the latest lockdown restrictions are lifted in July.

Robin Challand, Claims Director at Ageas Insurance, said, “Lockdowns made it harder for Crash 4 Cash scammers to operate. But as restrictions are lifted and road-use returns to more normal levels, that’s when we see these criminals start to re-emerge and put innocent motorists at risk by causing accidents.”

Meanwhile, a fraudster who pocketed nearly £18,000 for selling fake car insurance has been sentenced, following an investigation led by City of London Police’s Insurance Fraud Enforcement Department (IFED), supported by the Insurance Fraud Bureau (IFB).

asTech gains US diagnostics patent

Repairify Inc, trading as asTech, has been awarded a patent for remote automotive diagnostics by the United States Patent and Trademark Office (USPTO).

The patent is directed to aspects of Repairify’s industry-disrupting technology, including systems and methods that allow ASE technicians to use a mobile device to read a vehicle’s identification number (VIN), transmit the VIN to a diagnostic database, and assist in determining whether an original equipment manufacturer (OEM) diagnostic tool — or aftermarket tool — is required for proper diagnosis and/or repair of the vehicle.

UK vehicle manufacturing labelled world’s most diverse

The UK’s low volume and specialist vehicle manufacturing sector is the most diverse anywhere in the world according to a new report launched today by the Society of Motor Manufacturers and Traders (SMMT).

SMMT’s Low Volume and Specialist Vehicle Manufacturers Report outlines how Britain is a world leader in producing low volume, high value vehicles, everything from 250mph hypercars to campervans, limousines to electric taxis, motorhomes, wheelchair accessible vehicles, hearses and an unrivalled range of high performance, sports and luxury models.

Record price growth in used sector

According to the latest data from Auto Trader, the exceptionally strong levels of consumer demand in the market is continuing to fuel record price growth.

Based on the circa 400,000 used vehicles currently advertised on its marketplace, the average price of a used car increased a massive 12.6% year-on-year (YoY) on a like-for-like basis last week (as of 12 July 2021). It not only marks 63 weeks of consecutive price growth, but a huge acceleration on what is now a comparatively conservative 5.7% increase recorded during the week of 12th April.

Illustrating just how high the level of demand currently is, there were over 14.7 million cross platform visits last week to Auto Trader, which was a 24% increase on the same week in 2019.

US: Boyd Group acquires 35 sites

The Boyd Group Inc has agreed the acquisition of Collision Works of Oklahoma LLC, a multi-store operation consisting of 35 collision repair centres located in Kansas, Missouri and Oklahoma.

Collision Works was founded in 1996 by Jacob Nossaman. The company has consistently grown its presence with 22 shops in Oklahoma; 12 shops in Kansas; and one shop in Missouri.

Kevin Burnett, COO of Gerber Collision & Glass – which is owned by The Boyd Group – said, “We believe that adding these repair centers is a step in the right direction to meet our growth vision and will expand our ability to reach new customers and further assist our insurance clients.”

Axalta renews AutoRaise support

AutoRaise Gold Partner, Axalta, has renewed its partnership with the industry charity for the fourth consecutive year.

“We are thrilled that Axalta has decided again to continue their support in the work that AutoRaise is undertaking on behalf of the vehicle repair industry. This is another extremely positive step forward for the charity and will go a long way in helping us continue our efforts and success stories,” said Steve Thompson, AutoRaise Vice-Chair.

Last chance to have your say…

This is your final chance to have your say in the Great British Motor Claims Survey.

The Great British Motor Claims Survey – supported by Trend Tracker – will provide a snapshot of sentiment from across the UK claims sector and what this might mean for the future.

The survey closes tonight (23 July 2021).

Share your views here

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Adrian Furness appointed CEO of Covéa

Adrian Furness has been appointed as Chief Executive Officer of Covéa Insurance. Adrian succeeds James Reader, who is leaving the business and has no plans to take on another executive role.

Adrian has held the role of Chief Operating Officer at ILC Insurer Partner Covéa Insurance since December 2019, having previously been Claims Director of the company and its predecessor Provident Insurance since 2008.

Covéa Insurance’s Chairman Dominique Salvy said, “While the board of directors and our shareholder regret James’ personal decision to leave, we respect his choice. We are grateful for his leadership of the company throughout his tenure, which has delivered a solid strategic positioning for the business and has helped navigate the unprecedented challenges brought about by the pandemic. Going forward, no one is better positioned than Adrian to continue to guide the company and build on its strengths. The board wishes him every success.”

Adrian said, “We are extremely grateful to James for the legacy he leaves within Covéa. I’ve worked with him for 18 years and he has been a brilliant leader of the business and, from both a professional and personal perspective, I will miss him greatly and wish him all the very best for the future.”

He continued, “Taking over from James is an absolute honour. I’ve been with Covéa for many years and it’s a company I love and believe in. We have an agreed and progressive strategy in place with great people and it is my intention to continue to drive this forward, together with the rest of the team within Covéa.”

James said, “After nine years as Chief Executive, I have decided that the time is right for me to take a step back. It has been an absolute privilege to lead such a great business and team and I’m extremely proud of what we’ve achieved together. Covéa Insurance has an exciting future ahead of it and I’m delighted to be handing the baton on to Adrian, who I’ve no doubt will be a more than worthy successor.”

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Thatcham Research unveils EV Ready programme

Thatcham Research has unveiled its new ‘EV Ready’ Training Programme to support the industry’s need to learn how to handle electric vehicles safely and effectively.

The ‘EV Ready’ Training Programme caters for the future success of vehicle repairers, insurance companies and claims management organisations, as well as businesses operating in the fleet, salvage, recovery and vehicle auction sectors.

Training is delivered via a blended learning model that combines e-learning and face-to-face training.

“New EV registrations are rising sharply. Adoption will only continue to increase, so it’s imperative that businesses know how to interact with these vehicles safely and efficiently,” Dean Lander, Thatcham Research’s Head of Repair Sector Services, said.

“It’s about knowing how to identify the technology, and being familiar with working voltages and equipment, vehicle design, components and repair, as well as understanding the health and safety requirements.

“Our EV Ready Training Programme provides tailored learning to all employees. The objective is to boost understanding at every stage in the customer journey and ensure that everyone who encounters an EV has the correct knowledge to do their job safely.”

Thatcham Research’s EV Ready Training Programme consists of three core components:

  • ‘EV Aware’ e-learning modules containing two learner journeys for non-technical/contact employees and technical employees and managers
  • Level 3 Institute of the Motor Industry (IMI)-backed qualifications for technical employees. Assessments encompass safety requirements and repair procedures for EV/HV.
  • Employee success on the programme earns the business a bodyshop certificate issued by Thatcham Research. This clearly demonstrates to partners the extent of the training staff have undertaken.

Learners that complete Level 3 training at the Automotive Academy will receive an IMI certificate of achievement and be recognised on the IMI’s TechSafe register.

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News round-up: Friday 16 July 2021

Perfect storm dampening industry recovery

Bodyshops are being buffeted by a ‘perfect storm’ in the supply chain, caused by a combination of Covid-19, Brexit, and a change in materials. This was the verdict of the latest ARC360 on-demand.

Taking part in the supply chain special were: Paul Sell, associate director, Trend Tracker; Kelvyn Waugh, MD, Prasco UK; Richard Steer, CEO, Steer Automotive; Jeff Mack, national account manager, NWVA; and Mike Partridge, paint and body business manager, VWG UK.

Click here to watch or read

Raw material prices surge for paint manufacturers

The British Coatings Federation’s (BCF) latest statistics confirm further sharp increases in raw material prices for paint and ink manufacturers.

Higher prices for a range of critical solvents are just one area of concern for paint manufacturers with increased costs for resins, some pigments, extenders, and packaging also causing major problems for manufacturers.

NBRA launches Repair Industry Requirements (RIR) for ADAS

In response to the Insurance Industry Requirements (IIR) for ADAS introduced by Thatcham Research, the National Body Repair Association (NBRA) has launched its own Repair Industry Requirements (RIR).

As a result of feedback from a survey, the association said it has created the RIR to support the IIR as best practice and setting out repairer charges.

ABI reveals insurance sustainability roadmap

The supply chain is an area where Association of British Insurers (ABI) members can ‘be pro-active and set high standards that result in meaningful change’ according to its sustainability plans.

The ABI Climate Change Roadmap, which offers a wide-ranging plan to improve sustainability states: ‘Our sector will only be able to achieve this target if there is co-ordinated action across multiple sectors, but we will drive this by embedding a clear set of Net Zero alignment principles across our sector’s supply chain.’

The report highlights how replacement electric vehicles, repair and recycled parts could all form part of the new approach.

Meanwhile, the government has set out its ‘greenprint’ to cut emissions, setting out a pathway for the whole transport sector to reach net zero by 2050.

Fix completes engineering division

Fix Auto UK has completed the goal of forming its own team of field-based vehicle engineers dedicated to serving its franchise partners.

Rob Lake, who joined the network as part of its Key Accounts team, will now head up the team reporting directly into Head of Commercial Mark Hutchins.

Mark said, “The whole premise behind forming the team is to ensure a swift and seamless service to our insurer clients and, of course, motorists.”

Activate opens new Manchester site

Activate Accident Repair has opened a new hi-tech bodyshop in Manchester.

The opening of the site – Activate’s fifth – continues the growth of its hybrid repair network, which sees the strategic location of owned sites to complement its partner repair group relationships across the UK.

FMG RS set for Enfield opening

FMG Repair Services is set to open a new bodyshop in Enfield – the first of a new venture, combining a Northgate Hire facility with a vehicle repair centre.

This first of a new generation of sites will work closely with partner sites of Luton and Lakeside.

Vella Group on apprentice drive

The Vella Group is undertaking a major apprentice recruitment campaign as the business develops its capabilities for the future.

The Vella Group, supported by training partner Blackpool and The Fylde College, is looking for nearly 20 new multi skilled apprentices to ‘train to repair and restore vehicles, assess damage, and work through all the areas needed to repair a vehicle from start to finish’.

Meanwhile, The Vella Group has taken delivery of brand-new Vauxhall Corsa EV courtesy cars at its Liverpool and Deeside LV= General Insurance Sole Supply Sites.

Changing claims activity delivers Admiral profit rise

Admiral Group anticipates a higher-than-expected profit before tax for the first half of 2021 due to positive developments within motor bodily injury claims and low motor claims frequencies.

In a statement, Admiral Group said: ‘The stronger result is due to unusually positive development in the cost of UK motor bodily injury claims from a number of prior underwriting years’. It continued, ‘Further, motor claims frequency in 2021 to date has been lower than expected due to extended lockdown restrictions resulting in a favourable current period loss ratio, despite the significant reductions in Admiral’s premium rates over the past twelve months, which followed the £110 million of premium refunded to customers in May 2020.’

Based on preliminary figures, the group predicts profit before tax in the range of £450 to £500m.

MG Cannon strengthens leadership team

MG Cannon has made two key appointments to strengthen its group leadership team and further build the infrastructure of the business, ready for its next phase of growth.

Graham Prew has joined the business as Group Operations Manager and Mandy Pocock as Group Customer Services Manager.

Redde Northgate acquires ChargedEV

Redde Northgate plc has acquired Charged Electric Vehicles Ltd (ChargedEV), specialists in the supply and installation of electric vehicle (EV) charging equipment across the UK.

The acquisition provides the group with a platform to expand its offerings as both its own EV fleet and its customers’ EV fleets evolve. It will also support the group in its environmental goals and be integral to its overall programme around EV transition and reducing carbon emissions.

ACSO forecasts steep decline in RTA injury claims

The Association of Consumer Support Organisations (ACSO) forecasts that RTA injury claims for 2021 will be sharply down against the long-term average. Further, the association anticipates numbers below the unprecedented drop in motor claims during the height of the pandemic in 2020, which fell below 500,000 for the first time.

Matthew Maxwell Scott, executive director of ACSO, said the huge decline in mileage and continued reduction on RTA claims has not been mirrored by a similar fall in the price of motor insurance suggesting insurers need to ‘come clean about the profits they are making from changing consumer habits and falling motor claims’.

Report highlights work to be done

According to the third edition of Making Diversity and Inclusion a Business Reality diversity and inclusion (D&I) is climbing the agenda for the majority of businesses, but there remains a long way to go to make it a reality in UK automotive.

The paper, produced in partnership by Auto Trader and executive search specialists, Ennis & Co, reveals that the perceived value of D&I amongst automotive businesses is accelerating. Eighty per vent of the 40 organisations surveyed from across the automotive industry (representing retailers, manufacturers, suppliers and trade bodies), stated it was ‘very important’ to their objectives. This marks an increase on the 78% recorded in 2019, and the 75% in 2018.

Polestar targets digital development

Polestar, the Swedish electric performance car brand, is recruiting 100 tech experts as it plans to become one of the top employers of choice for digital and tech talent from around the world.

The digital team will work on what Polestar describes as ‘cutting-edge digital products and next-generation developments that will change the way users connect, explore and interact with their cars’. Included in this is environments both inside and outside the vehicle such as digital ecosystems connected to factories, B2B, B2C, and the support of R&D.

Meanwhile, Volvo Cars has acquired additional shares in Polestar which will result in its shareholding increasing to 49.5%.

Save the date…

ARC360 – Back to the Future – sees a welcome return to physical events on Thursday 25 November at the British Motor Museum, Warwickshire.

Offering an event experience to remember – including plenty of exciting ARC360 initiatives – the day will focus on just what the past means for the future of the industry and asks is it a completely new world the incident repair sector is operating in or does the past still provide some meaning for the future?

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ARC360 News – Friday 6 June 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

06-06-2025

ARC360 News – Friday 30 May 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

30-05-2025

SERMI: What does it mean for the UK?

Bodyshop | Insurance | Mobility | People | Supplier | Technology | Vehicle Repair | vehicle sales | Words

30-05-2025

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Perfect storm dampening industry recovery

Bodyshops are being buffeted by a ‘perfect storm’ in the supply chain, caused by a combination of Covid-19, Brexit, and a change in materials.

This was the verdict of the latest ARC360 on-demand.

Taking part in the supply chain special were Paul Sell, associate director, Trend Tracker; Kelvyn Waugh, MD, Prasco UK; Richard Steer, CEO, Steer Automotive; Jeff Mack, national account manager, NWVA; and Mike Partridge, paint and body business manager, VWG UK.

All agreed that factory closures during the pandemic had sparked a shortage in raw materials and parts across all sectors and into all markets but suggested the crisis has been exacerbated in the UK automotive aftermarket by Brexit and a requirement for different types of materials due to the advancement of the industry.

Volumes

The issues have surfaced in the last month, as repair volumes have spiked following the lifting of many lockdown restrictions. According to data from the Department of Transport and the Society of Motor Manufacturers and Traders, car and commercial vehicle usage was up at 95% of pre-pandemic levels in June.

Data (see link below) also found that traffic patterns around traditional rush hours began to return in June, which also contributed to a huge spike in repair volumes during the month – according to Audatex more than 137,000 repairs were recorded, which represents a healthy 93% of June 2019 levels.

Paul said, ‘It will be interesting to see if these volumes remain in the coming months or if this was just a summer spike.’

But while clearly good news, the surge in repairs is a double-edged sword. Trend Tracker’s latest survey found that 92% of bodyshops reported delays in supply, sometimes as long as 10 days, with inevitable knock-on issues around key-to-key times, cycle times and claims costs which, according to Audatex, have risen 14% in the last two years.

Bodyshops

‘Parts delays have become a bigger issue over the last few months,’ admitted Richard, ‘initially caused by Brexit but also the supply chain challenges that the vehicle manufacturers are currently facing.

‘What does that mean for the aftermarket in real terms? It means challenges with key-to-key times, which also impacts on mobility costs.’

And he explained how getting ahead of the curve at the start of the pandemic is now delivering unintended consequences. In order to meet customer demand for a remote service, Seer Automotive introduced image estimating early last year.

While this pays off in the 60% of cases when the estimates are accurate, the problems come with the four in 10 jobs that are more severely damaged than initial images suggest and require additional parts being ordered once the vehicle arrives on site. Delays in getting these parts disrupts workflows, creates inefficiencies and adds to costs.

Meanwhile, with longer repair times, Richard is also concerned about a shortfall in hire cars. The problem is being masked by a lack of tourists at the moment, but as borders open that could change.

Richard said, ‘With less hire cars on the road, we could see some issues with the supply of mobility and we have been made aware there could be some challenges in that area. That’s something we’ll be looking at closely as the summer unfolds.’

Suppliers

Further up the supply chain the problems of rising costs are similar. Although automotive parts supplier Prasco UK reports ‘buoyant’ sales which could well exceed 2019 levels, it too is facing steepling expenses.

Kelvyn explained that shipping prices have increased 10-fold in the last eight months alone, while raw materials have also surged.

He said, ‘The parts are coming through without too many problems, but it’s just the physical cost. In November we were paying between $1,400 and $1,600 a container, but the latest price we’ve had is $21,000. It’s absolutely crazy.’

With regards raw materials, he pointed to 15% price hikes in the last eight months alone.

‘We try and absorb as much as we can, but we’ve had to increase our prices. I think we’ve got this problem for the next 12 months. I don’t see any improvements this year – if anything I can see the prices going up a little bit more.’

Materials

The shortage of microchips has been well documented, and it is certainly an issue for the automotive aftermarket due to the sheer number of electrical systems on vehicles nowadays. But it is by no means the only area where demand is outstripping demand.

Mike said, ‘Apart from the availability of microprocessors there are also issues around the base materials themselves. So as well as the electrical components, the lack of materials such as steel is also a problem – and it’s a worldwide problem, not one confined to the auto industry.’

He suggests that the rapid evolution of the industry in recent years has also created a supply problem, one which was there before Covid-19 but has been brought to the surface since.

Mike explained, ‘The type of materials we’re using to produce cars is very different now, so we’ve been creating a demand where there wasn’t demand and suppliers have had to catch up. Then you throw Covid-19 into the mix and you have a perfect storm.’

Service

But supply refers to the supply of services as well as goods, and another sector that is being stretched is vehicle recovery.

Just as many bodyshops have decided to call it quits during the pandemic, so too have many roadside recovery experts. Alongside Covid-19, the rising costs brought about by clean air zones and other environmental initiatives have been too much for some to bear – companies would need a Euro 6 truck just to enter London now, typically costing about £100,000.

As such, those still operating have seen demand escalate.

Jeff said that work volumes this year were on course to exceed 2019 levels, although, ‘it’s hard to know if it’s rising volumes generally or because we have more clients. Probably a bit of both.’

He also warned about the impending dangers of electric vehicles, warning that the industry is not as well prepared as it could be. While his 210-strong network of agents is fully EV trained and conscious of the inherent risks, he is not convinced the same is true across the sector.

Jeff said, ‘People talk about the customer journey, but the customer journey starts with us. We’re often the first on the scene and if it’s an electric vehicle you need to know the risks. If the battery is not damaged it’s not a problem, but if it is the dangers are extreme. The potential for reignition is an area that worries me, and I don’t think that as an industry we’re prepared for an influx of electric vehicles.’

ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa and Prasco UK.

More Insights

ARC360 News – Friday 6 June 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

06-06-2025

ARC360 News – Friday 30 May 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

30-05-2025

SERMI: What does it mean for the UK?

Bodyshop | Insurance | Mobility | People | Supplier | Technology | Vehicle Repair | vehicle sales | Words

30-05-2025

Corporate Partners

Partners

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NBRA launches Repair Industry Requirements (RIR) for ADAS

In response to the Insurance Industry Requirements (IIR) for ADAS introduced by Thatcham Research, the National Body Repair Association (NBRA) has launched its own Repair Industry Requirements (RIR).

As a result of feedback from a survey, the association said it has created the RIR to support the IIR as best practice and setting out repairer charges.

“With vehicle technology advancing at a fast pace, it is essential that the bodyshop industry ensures that its repairs are to the required standard and specification”, said Chris Weeks, Director of the NBRA.

He continued, “The RIR includes a schedule of costs that will ensure bodyshops can charge out a fair cost for placing the vehicle back to vehicle manufacturer specification, along with the time allocated to triage the vehicle and audit trail the safety critical ADAS features, functionality as requested by the IIR.

“If you have implemented all the requirements to be IIR compliant, the NBRA advises to use the schedule of costs that will both aid the repairer and the work provider in a transparent manner.”

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ARC360 News – Friday 6 June 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

06-06-2025

ARC360 News – Friday 30 May 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

30-05-2025

SERMI: What does it mean for the UK?

Bodyshop | Insurance | Mobility | People | Supplier | Technology | Vehicle Repair | vehicle sales | Words

30-05-2025

Corporate Partners

Partners

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News round-up: week ending Friday 9 July 2021

Register now…

The ARC360 on demand Supply Chain Special (1.30pm Wednesday 14 July) takes a closer look at what is happening across the supply chain right now and provides an in-depth insight into what it might mean for the claims sector.

Featuring: • Paul Sell, Associate Director, Trend Tracker • Kelvyn Waugh, MD, Prasco UK • Richard Steer, CEO, Steer Automotive • Jeff Mack, National Account Manager, NWVA • Mike Partridge, Paint & Body Business Manager, VWG UK

Register here

CAPS reports big leap in claims exchanges

CAPS has reported a big leap in unique claims exchange volumes with a 13% month-on-month increase from May to June 2021.

The data highlights how June saw a return of claims volumes to 82% of pre-pandemic levels, increasing from 69% in May. Supply chain transmissions also rose by 14% month-on-month, reaching 87% in June compared to 73% in May.

Great British Motor Claims Survey launched

ILC and ARC360 have teamed up to launch the 2021 issue of The Great British Motor Claims Survey.

Support by Trend Tracker the survey will provide a snapshot of current sentiment from across the sector on a host of topical issues.

COVID-19 pandemic is and could potentially impact on the UK’s incident repair sector moving

Industry Leader Interview: Simon Powell, Client Director, Innovation Group

Here, ILC – parent company to ARC360 – catches up with Corporate Partner Innovation Group’s Client Director, Simon Powell to talk challenges and solutions; learnings; the benefits of hindsight; and predictions for the future.

AW rolls out Thatcham methods and support

In a reinvigorated relationship, AW Repair Group has chosen Thatcham Research as its preferred supplier of choice for methods repair data and technical support.

Following a short trial, AW has returned to the Thatcham Research ‘escribe’ platform, an online repair methods solution designed to help the industry return crash damaged vehicles safely and efficiently to pre-accident condition.

Sherwin Williams partners with Mercedes-EQ Formula E Team

Sherwin Williams has partnered with the Mercedes-EQ Formula E Team.

Both organisations share the objectives of driving technical innovations in the automotive industry, bringing people, products and platforms together and working towards a better, more sustainable and more inclusive future around the world.

Survey set to reveal EV readiness

ARC360 has once again teamed up with Trend Tracker and NBRA to survey the sector about its readiness for electric vehicles (EVs).

The survey aims to reveal just how the industry is gearing up to manage the rapidly increasing electrification of the UK car parc.

Click here to complete the survey.

Redde Northgate Board confident of repair turnaround

The Board of Redde Northgate Plc are confident the integration of FMG RS, following the acquisition of Nationwide on 4 September 2020, will be earnings enhancing in FY2022 following a loss-making initial period.

In its preliminary audited results for the 12 months ended 30 April 2021 the business reported the integration of FMG RS ‘progressed well in the second half of the year, including the appointment of a new management team’.

Registrations rise but hampered by supply

New car registrations in June grew 28.0% year-on-year to 186,128, according to the Society of Motor Manufacturers and Traders (SMMT)’s latest figures.

Compared with the previous decade average, however, monthly registrations were down -16.4%, while total registrations for Q2 2021 fell short of industry expectations by around 9,000 units partly as the ongoing global semiconductor shortage acted as a limiting factor on supply. As a result, overall registrations for the first half of the year are down -26.8%.

Meanwhile, the light commercial vehicle (LCV) market saw 34,363 vans registered in the month, down -13.9% on 2019 meaning a shortfall of some 5,566 units as supply shortages affected production volumes and caused delays in the market.

Kangoo and Mokka receive four stars

The latest two cars to be tested by Euro NCAP – Renault Kangoo and the Vauxhall Mokka – achieved strong results across all categories in impact and crash avoidance testing, resulting in four-star rankings for both.

Matthew Avery, Director of Research, Thatcham Research comments: “These are family friendly cars, so it is really positive to see that young passengers are well protected.”

However, both vehicles fell short of the maximum five-star rating, in part due to performance in lateral impact testing.

Allianz invests in used car platform

Allianz X, the digital investment unit of the Allianz Group, has invested in Mobility Trader Holding GmbH, the parent company of used car platform – heycar.

Existing investors include Volkswagen, Volkswagen Financial Services, and Daimler Mobility.

Allianz Partners will become the insurance partner of heycar for the next five years in all existing and future markets. The cooperation will extend the heycar platform with Allianz insurance products and services by seamlessly integrating them into the digital customer journey.

IFED arrests 7 in ‘ghost broking’ crackdown

The City of London Police’s Insurance Fraud Enforcement Department (IFED) executed 10 warrants in a week as part of a crackdown on ‘ghost broking’ across the country, resulting in seven arrests.

The arrests formed part of a week of action led by officers from IFED, a specialist police unit dedicated to tackling insurance fraud which is hosted by the City of London Police.

Officers were deployed across 11 operations in London, Essex, West Yorkshire, Bristol, West Midlands, Derbyshire and Wales from Monday 28 June to Friday 2 July 2021.

ARS appoints ACIS

Automotive Repair Systems (ARS) has appointed ACIS Ltd to be sole supplier of its paint refinish products to serve its mobile repairers effectively. 

Phil Howlett, operations director of ARS, said, “As we continue to expand our operation with new vans out on the road to service our customers successfully, we’re confident the supply arrangement with ACIS will add considerable value to our organisation.”

DM Keith makes moves

DM Keith Ltd has increased its representation across Yorkshire with the acquisition of Ringways Motor Group.

Family owned, DM Keith now represents six brands, with 13 showrooms and two accident repair centres – DM Keith Leeds and Ringways Leeds – across 10 Yorkshire and Lincolnshire locations.

The business has also joined the Retail Automotive Alliance (RAA) as a shareholder expanding the RAA UK coverage through the 27 member businesses. The RAA has a turnover of £3.47bn through more than 200 sales outlets.

Axalta set to acquire UPol

Axalta Coating Systems is set to acquire U-Pol Holdings Ltd from Graphite Capital Management LLP and other holders for £428m.

Based in the UK, U-POL manufactures repair and refinish products for automotive refinish and aftermarket protective applications including fillers, coatings, aerosols, adhesives, and paint related products.

U-POL’s manufacturing plant and R&D lab is in Wellingborough, England.

Listen up…

In this episode of the ARC360 podcast we have the pleasure of catching up with Volkswagen Group UK bodyshop development manager, Franco Iannotta who shares with us how his love of cars and a passion for knowing how things work got him started in the automotive sector. He also mentions his passion for F1 and Astro physics.

More Insights

ARC360 News – Friday 6 June 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

06-06-2025

ARC360 News – Friday 30 May 2025

Bodyshop | Environment | Finance | Insurance | Mobility | People | Salvage | Supplier | Technology | Training | Vehicle Repair | vehicle sales | Words

30-05-2025

SERMI: What does it mean for the UK?

Bodyshop | Insurance | Mobility | People | Supplier | Technology | Vehicle Repair | vehicle sales | Words

30-05-2025

Corporate Partners

Partners

REPAIRIFY

Associate Partners