Government decision will ‘exacerbate’ skill crisis

New immigration requirements that come into force next month could exacerbate an already extreme skills crisis in the industry, according to the National Body Repair Association (NBRA).

The government has announced that from 4 April it is rising the salary threshold for skilled workers coming to the UK from £26,200 to £38,700.

However, the NBRA has said it is ‘deeply concerned’ that this will exclude a raft of new talent that could otherwise have boosted the UK automotive workforce.

Martyn Rowley, Executive Director, said, “We are deeply concerned about the implications of these new rules on our industry. Our members, who play a vital role in the automotive repair sector, often rely on skilled workers from overseas to fill crucial roles. The automotive repair industry faces a persistent challenge in recruiting and retaining skilled professionals domestically, and the government’s stringent measures exacerbate these difficulties.

“We acknowledge the government’s aim to prioritise investments in the resident workforce. However, it is imperative to recognise the reality of skill shortages and the invaluable contributions of overseas workers to our industry.

“These regulations could disproportionately impact British employees, where due to lack of skilled staff or unstainable wage demands otherwise profitable businesses will be forced to close sites. The NBRA urges the government to reconsider these measures and engage in constructive dialogue with industry stakeholders to address concerns effectively.”

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ARC360 conference ‘gaining ground together’ 

ARC360’s ‘future technology’ themed conference is gaining ground as a growing number of sector stakeholders confirm their presence at the event. 

Taking place on Thursday 27 June 2024 at the Manufacturing Technology Centre (MTC) in Coventry the event is supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: Gemini ARC, Repairify, Prasco; and Sponsors Activate Group and Thatcham Research. 

A host of key insurance influencers from Allianz, Arch Insurance, Aviva Insurance, Direct Line Group, esure, First Central Services UK Ltd, Hastings Direct, Haven Claims, LV= General Insurance, Markerstudy Insurance Services Ltd, NOVO Incident Management, NFU Mutual and QBE are already confirmed to attend the event which follows up on last year’s highly acclaimed specialist electric vehicle (EV) event to further explore just how technology is shaping the future of the industry. 

Underpinning the entire event will be a keen focus on what is arguably the most critical factor across the entire industry right now – people and skillsets. Throughout the day, discussions will link back to how the industry – as a combined entity – can help make the automotive incident repair sector a career destination of choice. 

Already confirmed to join discussions on the day are: 

  • Andrew Jobling, Supply Chain Lead, UKGI Supply Chain, Aviva 
  • Ulrike Lucas, Head of Procurement & Supply – Allianz Claims, Allianz Insurance plc 
  • Dawn Marsden, Head of Claims Supplier Management and Engineering Services, esure 

Further key event announcements are pending in the coming weeks, set to provide even more insight and truly bring the event and advancing vehicle technologies to life. 

Tickets for the event are on sale now – click here to book

A limited number of special repairer guest passes are available, to join the waiting list please email mark@iloveclaims.com. 

To find out more about the opportunities available to get involved in the event – exhibition or sponsorship, or how to become an ARC360 Partner contact mark@iloveclaims.com or liane@iloveclaims.com

For a full overview of last year’s event, click here.

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ARC360 News Update – Friday 15 March 2024

First names revealed for ARC360 future tech agenda 

Three key persons of influence from the insurance sector are the first speaker names revealed for ARC360’s ‘future technology’ themed conference in June. 

Taking place on Thursday 27 June 2024 at the Manufacturing Technology Centre (MTC) in Coventry – sponsored by Activate Group and Thatcham Research – the event will canvass insights from across the sector and beyond in a bid to explore how the motor claims incident repair sector is transitioning towards a high-tech future. 

Bodyshop Briefs

  • Fix Auto Tewkesbury owner Kevin Dunlop is on his way to becoming a multi-site operator after receiving the keys to a new 55,000sqft facility that will operate as Fix Auto Hereford. A former packaging distribution centre, the site is now being transformed into a fully-equipped 11-bay bodyshop repairing upwards of 40 cars a month.
  • FMG Repair Services will open its 66th site in Chadderton, Greater Manchester, in the coming months. FMG has also announced that it has extended it incident management contract with estate agents Connells.
  • Fix Auto Mid Devon & Newton Abbott’s Alena Woolacott was presented with her Inspiring Automotive Woman award at the IMI annual awards dinner.
  • Kudos Bodyworks has unveiled its second site, based in Biggin Hill, Bromley.
  • KC Auto’s Atherton site has passed its latest BS10125:2022 audit.
  • Shildon-based Alan Reed ARC has announced that its technicians have completed EV training with partner Tesla. The site has also invested in dedicated structural aluminium repair bays.
  • JCT600 Accident Repair Centre Bradford and Sheffield has attained Lotus approval
  • Stanways Autobodies has unveiled its new, purpose-built site, designed to enhance efficiency and reduce waste in our repair process.
  • Glasgow-based Agmors Coachworks has expanded into a new site in the city.
  • Turners Accident Repair, which operates five sites across Yorkshire, has announced that Stuart Turner has been appointed Chairman and Tom Turner promoted to Managing Director. Meanwhile, Graham Pickering has been named Director of Operations and Dawn Swales is promoted to Director of HR.
  • Chartwell has once again been awarded its Official McLaren Approved Bodyshop Certificate.

Industry News

New data reveals growing appetite for sustainable solutions

Solera has announced the results of a new study surveying over 8,000 drivers across Europe which reveals the industry isn’t matching customers’ appetite for green vehicle repair options. 

Less than a quarter (23%) of European drivers have heard from their auto insurer about sustainable policy options and when their vehicle was repaired, less than a third (32%) were offered the choice between new or used parts. This is despite over half of drivers (53%) saying they are genuinely concerned about the environmental impact of vehicle repairs and maintenance. 

Trend Tracker publishes Monthly metrics

Trend Tracker’s latest monthly report on the status of the UK vehicle incident repair market has revealed that repair costs rose six per cent between February 2023 and 2024.

Its latest Monthly Key Metrics report also found that key-to-key times were 30% down over the same 12-month period, while cycle and lead times were down 14% and two per cent respectively.

Meanwhile, volumes were up by four per cent.

Automotive skills shortage as severe as ever

The automotive industry skills shortage shows no signs of abating, according to a new report published by the Institute of the Motor Industry (IMI).

Its UK Automotive Vacancy Overview report has found that there are 4.3 vacancies for every 100 employees in the sector, with 23,000 automotive jobs currently unfilled.

Copart expands with Gloucester site

Copart UK is expanding storage capacity in the south west of England with a new 30-acre site in Gloucester.

It has acquired a former Cazoo site which will provide storage for an additional 30,000 vehicles per annum.

Prasco highlights the benefits of replacement parts

Prasco has emphasised the benefits of choosing high-quality aftermarket crash repair parts in a new blog.

It highlights cost, durability and the range of options as the main advantages of using replacement parts in repair.

NWVA on Spanish steps

Nationwide Assistance Group has announced that it hopes to open its new Spanish office in the next few months.

Insurance hikes explained

Activate Group has sought to explain the 34% increase in motor insurance.

It attributes these hikes to higher operational costs for repairers, a shortage of repair capacity, challenges around parts supply, the cost of courtesy cars, and the impact of new technology such as EVs and ADAS.

Top tips to manage stress

Automotive charity Ben has released advice on how colleagues in the industry can deal with increasing stresses.

It has compiled a list of coping strategies that its own Life Coaches use to improve their wellbeing and cope with pressure.

Outsorc celebrates global successes

Outsorc has announced that in the last 12 months its network management platform MONITRR completed more than 200,000 assessments and audits across nearly 50 manufacturer programmes, with an average session time of just over two minutes.

Silverlake secures EV dismantling skills

Silverlake Automotive Recycling colleagues have completed an IMI-accredited dismantling training course with ELEVATE.

The NA International EV dismantling course equipped two Silverlake colleagues with the skills to make high voltage vehicles safe and then remove high voltage components and batteries.

Axalta Refinish secures LV= and Allianz agreement

Axalta Refinish has been named a preferred supplier to both the LV= and Allianz networks after signing five-year partnerships.

It will deliver refinish technology to both through its premium refinish brands Cromax, Spies Hecker, Standox as well as Axalta’s brand U-POL.

Time ticking down on in-vehicle touchscreens

New regulations limiting the reliance on touchscreens in vehicles will be introduced from January 2026 after research has found that they reduce road safety.

Meanwhile, Euro NCAP will change its testing rules to penalise vehicle manufacturers who do not provide physical switchgear for operations including indicators, hazard lights, the horn, and windscreen wipers.

SMMT urges AV Bill support

The Society of Motor Manufacturers and Traders has called on parliament to quickly pass the Automated Vehicles (AV) Bill to enable the UK to capitalise on the benefits of autonomous driving.

It says self-driving technology could add £38bn to the UK economy by 2040 while preventing 3,200 road deaths and 53,000 serious accidents.

Thatcham Research named IMI Partner of the Year

Thatcham Research has been named Partner of the Year by the Institute of the Motor Industry.

It was presented with the award at the IMI’s annual dinner in recognition of their 30-year partnership, during which time Thatcham Research became the first training provider to develop MET and VDA EPA standards with the IMI.

Key partnerships for PartXchange

PartsXchange has accelerated its ambition to become a one-stop hub for the collision repair industry by signing two new partnerships.

AllThingsCX has been named its new communications partner, while customers will now be able to connect remotely to a network of technicians following a new agreement with Complete Diagnostics.

MIB announces uninsured driver crackdown

The MIB has announced a new initiative launched in conjunction with West Midlands Police targeting uninsured drivers.

Operation Scalis allows officers to focus solely on uninsured driving for a period of 22 days. Almost 70 vehicles were seized in the first six days of the operation, with 16 more days planned in the coming months.

Ghost broking conviction

A 26-year-old man has been sentenced after selling over a dozen fake car insurance policies to drivers.

Following an investigation led by City of London Police’s Insurance Fraud Enforcement Department (IFED), supported by the Insurance Fraud Bureaa, Aviva, esure, Markerstudy, Mulsanne, and Sabre, Mohsin Yousaf was sentenced to 20 months’ imprisonment, suspended for 18 months.

VM News

Ford unveils third Dunton laboratory

Ford has opened its new Propulsion Development Laboratory at the Dunton Campus following a £24m investment.

The third new lab opened on site in two years, it will develop and test EV powertrains.

Breathe gives life to faster Volvo charging

Volvo has announced a new partnership with Breathe Battery Technologies to access its latest charging software, which it claims can take a battery from 10% to 80% in 30% less time.

People

  • Copart has announced that Jay Adair will step down as Co-CEO and take up the role of Executive Chairman. Jeff Liaw has been appointed at sole CEO.
  • 3M has appointed William Brown as Chief Executive Officer. He succeeds Michael Roman, who has been named Executive Chairman.
  • James Toms has been named Sales Director South at Morelli Group.
  • Halo ARC has appointed Trenton Dambrowitz as Chief Technology Officer.
  • Alex Omeltschenko has joined Exclusive Vehicle Assessors.

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First names revealed for ARC360 future tech agenda 

Three key persons of influence from the insurance sector are the first speaker names revealed for ARC360’s ‘future technology’ themed conference in June. 

Taking place on Thursday 27 June 2024 at the Manufacturing Technology Centre (MTC) in Coventry – sponsored by Activate Group and Thatcham Research, and supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: Gemini ARC, Repairify, Prasco; and Associate Partners: Thatcham Research and Trend Tracker – the event will canvass insights from across the sector and beyond in a bid to explore how the motor claims incident repair sector is transitioning towards a high-tech future. 

Confirmed to join discussions on the day are: 

  • Andrew Jobling, Supply Chain Lead, UKGI Supply Chain, Aviva 
  • Ulrike Lucas, Head of Procurement & Supply – Allianz Claims, Allianz Insurance plc 
  • Dawn Marsden, Head of Claims Supplier Management and Engineering Services, esure 

Following up on last year’s highly acclaimed specialist electric vehicle (EV) event, ARC360 will further explore just how technology is shaping the future of the industry. A host of other key influencers from Allianz, Aviva Insurance, Direct Line Group, esure, First Central Services UK Ltd, Hastings Direct, Haven Claims, LV= General Insurance, Markerstudy Insurance Services Ltd, and NOVO Incident Management are already confirmed to attend. 

Mark Hadaway, Co-Founder of ARC360 and Content Director of ILC, said, “We are delighted to have Andrew, Ulrike and Dawn set to join us for discussions during the day – sharing vast expertise and insight on how vehicle technology is shaping the future of motor claims, supply chain interactions and customer experience.” 

Underpinning the entire event will be a keen focus on what is arguably the most critical factor across the entire industry right now – people and skillsets. Throughout the day, discussions will link back to how the industry – as a combined entity – can help make the automotive incident repair sector a career destination of choice. 

Further key event announcements are pending in the coming weeks, set to provide even more insight and truly bring the event and advancing vehicle technologies to life. 

Tickets for the event are on sale now – click here to book.

A limited number of special repairer guest passes are available, to join the waiting list please email mark@iloveclaims.com

To find out more about the opportunities available to get involved in the event – exhibition or sponsorship, or how to become an ARC360 Partner contact mark@iloveclaims.com or liane@iloveclaims.com

For a full overview of last year’s event, click here.

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Trend Tracker publishes Monthly Key Metrics

Trend Tracker’s latest monthly report on the status of the UK vehicle incident repair market has revealed that repair costs rose six per cent between February 2023 and 2024.

Its latest Monthly Key Metrics report also found that key-to-key times were 30% down over the same 12-month period, while cycle and lead times were down 14% and two per cent respectively.

Meanwhile, volumes were up by four per cent.

Director Paul Sell said, “Repair costs continue to climb higher than the current rate of annual inflation but have slowed from the double figure increases seen in 2023 to six per cent year-on-year now. This has been consistent across the last three months suggesting this is starting to find a new level. 

“Cycle time and critically lead times have started to fall, with key-to-key much lower than this time last year suggesting the ‘new normal’ method of collecting images and information prior to bringing the vehicle in, to pre-order parts to ensure everything is in place, to reduce key-to-key has become the new normal practise, delivering greater efficiency in the workshop.

Finally repair volumes fell in February compared to January, predictably, but remain four per cent higher than equivalent month in 2023, this has been consistent in 2024 so far.

For further details on these metrics, as well as economic factors, vehicle values & sales, salvage values and green parts penetration click here

ARC360-Trendtracker-March24

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Momentum building for ARC360 future tech event

ARC360’s ‘future tech’ themed conference taking place on Thursday 27 June 2024 has already gained the interest of a number of key motor insurers.

Following up on last year’s highly acclaimed specialist electric vehicle (EV) event, ARC360 will further explore just how technology is shaping the future of the industry with key persons of influence from: Allianz, Aviva Insurance, Direct Line Group, esure, First Central Services UK Ltd, Hastings Direct, Haven Claims, LV= General Insurance, Markerstudy Insurance Services Ltd, and NOVO Incident Management already confirmed to attend.

The event, which takes place at the Manufacturing Technology Centre (MTC) in Coventry, will canvass insights from across the sector and beyond in a bid to explore how the motor claims incident repair sector is transitioning towards a high-tech future.

Underpinning the entire occasion will be a keen focus on what is arguably the most critical factor across the entire industry right now – people and skillsets. Throughout the day, discussions will link back to how the industry – as a combined entity – can help make the automotive incident repair sector a career destination of choice.

Mark Hadaway, Co-Founder of ARC360 and Content Director of ILC, said, “Technology is changing the world around us and the vehicle parc is a primary example of this global transition. The entire automotive supply chain is implicated in this evolution and the insurance claims sector, associated supply chains and, specifically for ARC360, the incident repair community play a vital role in determining a bright future.”

Some key event announcements are pending in the coming weeks, set to provide even more insight and truly bring the event and advancing vehicle technologies to life.

Tickets for the event are on sale now – click here to book

A limited number of special repairer guest passes are available, to join the waiting list please email: mark@iloveclaims.com.

To find out more about the opportunities available to get involved in the event – exhibition or sponsorship – or how to become an ARC360 Partner contact mark@iloveclaims.com or liane@iloveclaims.com.

ARC360 is supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: Gemini ARC, Repairify, Prasco; and Associate Partners: Thatcham Research and Trend Tracker.

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ARC360 News Update – Friday 8 March 2024

Momentum building for ARC360 future tech event 

ARC360’s ‘future tech’ themed conference taking place on Thursday 27 June 2024 has already gained the interest of a number of key motor insurers.

Following up on last year’s highly acclaimed specialist electric vehicle (EV) event, ARC360 will further explore just how technology is shaping the future of the industry with key persons of influence already confirmed to attend.

Bodyshop Briefs 

  • Gemini Accident Repair Centres has marked seven years since the launch of their apprenticeship programme by celebrating the progress of two of their first apprentices to progress to Multi-Skilled Technicians.
  • Chartwell has again been awarded its Official McLaren Approved Bodyshop Certificate. 
  • KC Autos has achieved the new BS10125:2022 vehicle repair standard across all its sites in the north west. 
  • Express Bodyshops has opened its fourth site in Nuneaton. 
  • Novo Automotive’s Witham site has chevied BSI Kitemark status within four weeks of opening. 
  • Activate Accident Repair has announced its new 18,000sqft site in Hampton, Greater London will open for business this month, offering EV, hybrid and LCV repairs. 
  • Fix Auto Oswestry has completed a new 62KW solar panel installation which will deliver up to £21,000 in annual savings while significantly reducing emissions. 
  • Evolution Repair Group has acquired its third site, C&M Bodyshop in Coventry. 
  • D and M Coachworks has continued to invest in training and development of colleagues by attending Cornerstone Technologies’ Push to Paint Training Programme. 
  • Milton Keynes-based Vehicle Crash Repairs is expanding into a new 30,000sqft facility. The new site features state-of-the-art green technology and equipment to support sustainable operations. 
  • Avant Recruit and Rowley Spray Booths have joined the NBRA as supply partners.  

Industry News 

Gemini unveils new Barnstaple site 

Gemini Accident Repair Centres has cut the ribbon on its 35th site. 

Based in Barnstaple, the new 7,700sqft cutting-edge facility, which includes state-of-the-art electric spraybooths and EV charging facilities, will handle upwards of 1,000 repairs a year and significantly increase Gemini capacity in the region. 

Steer acquires six IRG sites 

Steer Automotive Group has expanded its operational footprint with the acquisition of six IRG sites. Established in 1999, IRG has built a reputation as a leading independent network of automotive repair centres.   

The acquired sites are located in Whitland, Swansea, Pontypridd, Bristol, Birmingham, and Wolverhampton. 

Thatcham Research announces LexisNexis partnership 

Thatcham Research has announced a strategic relationship with LexisNexis Risk Solutions. 

The new partnership will transform the accessibility, consistency and analytical power of Thatcham Vehicle Risk Data (VRD), which assigns ABI Codes and Group Ratings to vehicles to help insurers assess and rate risk. 

Vella Group partners AkzoNobel in sustainability drive 

The Vella Group has become the first UK business to be named an official partner of AkzoNobel’s Sustainable Repair Network. 

It has achieved level 1 of the three-level certification process, which demonstrates its commitment to reducing its carbon footprint. 

Car and LCV sales soar in February 

Both the new car and new LCV markets enjoyed record months in February, according to new figures from the Society of Motor Manufacturers and Traders

It reported that new car registrations rose 14% to 84,886 units, completing 19 months of growth and making it the best February performance for 20 years. 

Meanwhile, LCV sales increased 2.2% last month to 17,934 units, the highest number recorded since February 1998. 

Cazoo announces major business model shift 

Online car buying and selling platform Cazoo has announced it is transitioning to a marketplace business model. 

To achieve this transition, Cazoo is now unwinding its inventory through retail and wholesale channels, and will also make operational chances that will include reducing headcount and developing its ecommerce platform, proprietary data, and digital functions. 

Cool response to Spring Budget  

Jeremy Hunt’s Spring Budget has left the automotive sector underwhelmed with industry bodies labelling it a ‘missed opportunity’. 

Despite falling sales in electric vehicles the government has not introduced any incentives to encourage car buyers to go green, while the yawning skills gap has not been addressed either with no changes made to what many consider a failing Apprenticeship Levy. 

The Society of Motor Manufacturers and Trader, the Institute of the Motor Industry, and the National Franchised Dealers Association have all said the Budget didn’t deliver what the automotive industry needs. 

Ageas celebrates sustainability success 

Ageas has collected the prestigious Circular Economy Innovation Award at the Edie Sustainability Awards. It won the award for its Green Parts Initiative working in partnership with The Green Parts Specialists. 

Allianz enhances breakdown support services 

Allianz Partners has expanded the roadside and breakdown products it offers to mobility providers, fleet owners, banks and insurers. 

Its new range is based on three levels of cover: breakdown; accident; and breakdown and accident.  

Bridge to develop new skills directory 

Bridge Automotive Academy is developing an online directory for bodyshops to show their investments in training and colleague qualifications. 

The directory will also enable insurers and work providers to identify those repairers with the skills to carry out repairs safely and correctly.  

BASF unveils women’s initiative 

BASF is marking International Women’s Day by bringing together 170 women from six leading companies to promote women in leadership roles. 

The Connect.Share.Inspire initiative also involves Schneider Electric, Bosch, Bilfinger, Henkel and Bouygues. 

Speed critical in salvage sector 

S&G Response has highlighted the need for speed when it comes to total loss and salvage. It says accurate decision-making based on good data is critical to a successful salvage strategy. 

£360 million to boost British manufacturing and R&D 

The UK government is investing a further £360m in UK manufacturing and R&D. Of that, £73m is dedicated to zero-carbon automotive technology.   

Aon adds ai capabilities 

Global professional services company Aon has acquired Humn.ai’s technology to enhance its commercial fleet services. The acquisition will deliver Aon’s customers with a real-time view into commercial fleet performance to support decision-making and risk reduction. 

Vizion named among European elite 

Vizion Network has been named as one of Europe’s fastest growing companies by the Financial Times. It was ranked 417 in the FT 1000 Europe’s Fastest Growing Companies list. 

ADAS Solutions expands in Gateshead 

ADAS Solutions has opened a new workshop in Gateshead. The new site includes cutting-edge technology and skilled technicians to handle all ADAS and EV jobs. 

The move is part of wider strategy of expansion. 

VM News 

Chinese influence in evidence at Geneva Motor Show 

The 2024 Geneva Motor Show underlined the growing influence of Chinese vehicle manufacturers on the market. 

The last time the show was held, in 2019, 35 VMs unveiled over 130 production models. However, this year saw SAIC and BYD, along with Renault Group, the only manufacturers to reveal to car concepts.  

JLR announces new renewable energy drive 

JLR has announced a range of new off-grid renewable energy projects, including the installation of a variety of solar panels. 

The initiative is part of the company’s target to increase self-generated energy to 36.4% of its global consumption by 2030. 

Nissan GB makes gender pledge 

Nissan GB has joined the Automotive 30% Club, a network of automotive leaders dedicated to ensuring that at least 30% of key leadership positions are held by women by 2030. 

TMC Strengthens Battery Production Capabilities 

Toyota has announced it is making Primearth EV Energy a wholly owned subsidiary to enhance its EV battery production capabilities. 

Primearth manufacturers hybrid electric vehicle batteries and plans to also develop batteries for pure electric vehicles and plug-in hybrid electric vehicles.  

Polestar and Tesla quit automotive body 

Polestar has followed Tesla in withdrawing its membership of Australia’s main automotive group, the Federal Chamber of Automotive Industries. It is quitting the group in protest of an FCAI campaign which it believes could deter car buyers from switching to EVs.  

The FCAI is campaigning against a new vehicle emissions standard which it says will raise prices. 

People 

  • Harry Abraham is leaving Halo after 10 years to take up a new role as Group Operations Director at Steer Automotive Group. The Group has also appointed Rickelle Woodbridge as Site Operations Manager at Steer Pontypridd. 
  • Richard Spencer has been named business Development Lead at Allianz Partners UK and Ireland. 
  • Nick Spiers has been appointed Global Vice President Strategic Operations at Fix Network World. 
  • Flyde Coast ARC has named Pete Sadler as new Business Development Manager.  
  • Smart Bodyshop has appointed Mark White as Bodyshop Manager. 
  • Dawn Swales has started a new position as Director of HR at Turners Accident Repairs. 
  • Harvey Stead has been named Chief Operating Officer at Redde Northgate. Melanie Bebbington has been appointed Managing Director of Auxillis and Neil McCrossan as Managing Director of the Northgate businesses.  
  • Matthew Shaw has been appointed National Sales Manager at Paintnuts Bodyshop Supplies. 

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Cool response to Spring Budget

Jeremy Hunt’s Spring Budget has left the automotive sector underwhelmed with industry bodies labelling it a ‘missed opportunity’.

Despite falling sales in electric vehicles the government has not introduced any incentives to encourage car buyers to go green, while the yawning skills gap has not been addressed either with no changes made to what many consider a failing Apprenticeship Levy.

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, said, “Government has been keen to assure the UK automotive industry’s competitiveness, with support for EV development and manufacturing – including £2.1bn in autumn’s Advanced Manufacturing Plan – but there is little to help consumer demand.

“The Spring Budget is, therefore, a missed opportunity to deliver fairer tax for a fair transition. Reducing VAT on new EVs, revising vehicle taxation to promote rather than punish going electric, and an end to the VAT ‘pavement penalty’ on public charging would have energised the market. With both government and industry having statutory requirements to deliver net zero, more still needs to be done to help consumers make the switch.”

Meanwhile, Steve Nash, CEO of the Institute of the Motor Industry, suggested it was a political Budget rather than a practical one that could help the sector move towards net zero.

He said, “Despite talking about encouraging investment in future technologies, today’s Spring Budget seemed to miss the opportunity to make some small changes that would support the widest automotive sector as it faces a continuing skills gap while trying to future-proof itself. There was also nothing done to encourage more people to move to lower and zero emissions vehicles.

“For the UK to achieve its green ambitions every part of the automotive sector must be supported and that includes the aftermarket. Whilst the addition of leased assets in the Full Expensing 100% first year capital allowance may provide some businesses with help, it’s disappointing that the Super Deduction was not reintroduced. This would have provided the wider aftermarket with essential help to ensure it is adequately equipped and trained to support EV drivers.”

Sue Robinson, Chief Executive of the National Franchised Dealers Association, highlighted similar omissions.

She said, “The NFDA had urged the government to introduce incentives to prevent EV sales from flatlining. Noticeably, fleet has been driving sales of new cars rather than private buyers. The government must do more to help maintain momentum in the private BEV market and increase adoption of these cleaner vehicles across the UK.”

Robinson also expressed disappointment at an unreformed Apprenticeship Levy, and concluded, “There certainly were a few missed opportunities in this Spring Budget.”

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Cazoo announces major business model shift

Online car buying and selling platform Cazoo has announced it is transitioning to a marketplace business model.

The news comes after a capital and board restructure at the end of 2023.

It believes the shift will enable it to deliver new opportunities for dealers and consumers, supporting full online transactions. Cazoo will also offer dealers both customer and market insights to support their sales and marketing activities.

To achieve this transition, Cazoo is now unwinding its inventory through retail and wholesale channels, and will also make operational chances that will include reducing headcount and developing its ecommerce platform, proprietary data, and digital functions.

Paul Whitehead, Chief Executive Officer of Cazoo, said, “Transitioning Cazoo to a pure-play automotive marketplace business model leverages our key advantages: the nationally recognised and trusted Cazoo brand and the Cazoo ecommerce technology platform.

“Our transition means we can now offer the UK’s 13,000 car dealers the chance to put their forecourt stock in front of the one million potential customers on average who visit the Cazoo website every month.”

Meanwhile, Whitehead has also announced he will step down as CEO.

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Car and LCV sales soar in February

Both the new car and new LCV markets enjoyed record months in February, according to new figures from the Society of Motor Manufacturers and Traders.

It reported that new car registrations rose 14% to 84,886 units, completing 19 months of growth and making it the best February performance for 20 years.

Growth was driven by sales to fleets and businesses, which were up 25.2% and 15.5%, although private uptake fell by 2.6%

In terms of fuel types, hybrid electric vehicles rose 12.1%, plug-in hybrids were up 29.1%, and battery electric vehicle increased by 21.8%.

Meanwhile, LCV sales increased 2.2% last month to 17,934 units, the highest number recorded since February 1998.

Mike Hawes, SMMT Chief Executive, said, “The new car market’s ability to deliver growth continues with its best February for 20 years and this week’s Budget is an opportunity to ensure that growth is greener. Tackling the triple tax barrier as the market embarks on its busiest month of the year would boost EV demand, cutting carbon emissions and energising the economy. It will deliver a faster and fairer zero emission transition, putting Britain’s EV ambition back in the fast lane.”

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