In brief

19 Feb 2021

Some 43% of used car dealerships in the UK are optimistic that used vehicle profit margins will rise throughout the course of 2021, according to a survey from NextGear Capital.

The positivity outshines the sentiment in January 2020, when 54% of respondents were anticipating a reduction in their performance. This time round, fewer than one in four think their margins face further decline. A third said they expect no change.

Liam Quegan, managing director of Manheim Auction Services & NextGear Capital, said: “We’re seeing real hope among used vehicle retailers about their prospects, despite market conditions remaining highly challenging.

“But we mustn’t be complacent and would advise dealers against over stretching themselves as consumer demand begins to rise again. Cautious optimism should remain our collective maxim.”

18 Feb 2021

Jaguar Land Rover (JLR) has confirmed a further 2,000 job cuts this year, following the firm’s announcement that the Jaguar brand will be all-electric by 2025.

JLR issued a statement: “We need to reduce the cost base to achieve a lean foundation, which will allow us to transform most effectively into a more agile organisation.

“We have started to brief our salaried employees about the detail of the organisation review. This does not impact our hourly paid, manufacturing colleagues. We anticipate a net reduction of around 2,000 people from our global salaried workforce in the next financial year.”

The firm’s Reimagine strategy outlines the distinct visions for both Jaguar and Land Rover brands, with a common goal of electrification of all nameplates by the end of the decade.

Slightly behind Jaguar, Land Rover will roll out six pure electric models in the next five years, with the first all-electric Land Rover available from 2024.

16 Feb 2021

Coventry City Council has announced plans for a new gigafactory for the production of electric car batteries, with the city’s airport cited as a potential location.

A joint venture between the council and Coventry Airport, the public-private partnership is expected to create 4,000 green jobs, support the automotive sector and boost the attractiveness of the West Midlands as a recipient for investment.

The venture partners will develop proposals before submitting an outline planning application for a gigafactory in 2021.

Meanwhile, battery suppliers and automotive manufacturers will engage in regional discussions in attempts to secure the necessary long-term investment of £2bn.

15 Feb 2021

Used car sales in the UK fell by 40.4% year-on-year in January 2021, marking the single largest decline of any of the 13 European countries analysed by INDICATA.

Used hybrid car sales fell 9% year-on-year and BEV sales only rose 15%, the lowest rate of growth since INDICATA records began.

“Looking at January in a positive way, 60% of used car volumes were achieved despite the market being locked down and relying on Click and Collect,” explained Jon Mitchell, INDICATA’s group sales director.

“Already February sales have started to rise as franchised dealers come back into the market putting it into a good position ready for when lockdown 3.0 ends.”

12 Feb 2021

MotoNovo Finance secured a £520m issuance from 16 investors as part of its latest securitisation fundraising round, surpassing the company’s expectations.

The round marks the largest issuance across MotoNovo’s securitisation programme and the largest order book with over £800m orders secured during the two day fundraising window.

Mark Standish, chief executive of MotoNovo, said: “Against such an unprecedented market backdrop, it was reassuring to have such strong demand and support from both long-term investors as well as new investors to the programme.

“I couldn’t be prouder of the way our team has stepped up to the challenge and embraced the opportunity to reinvent the future of car finance.”

11 Feb 2021

FLA members in the motor finance market provided £38bn of new business in 2020, representing a 19% decline from the 2019 total.

In December, new business volumes fell 12% year-on-year. In 2020 as a whole, new business volumes in this market were 21% lower than in 2019, with a total of 1.9m cars purchased.

The consumer new car finance market reported a fall in new business volumes of 18% in December compared with the same month in 2019. In 2020, new business volumes in this market fell by 25% year-on-year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The lifting of the second national lockdown in England in December contributed to an easing in the rate of contraction in new business in both the consumer new and used car finance market.”

11 Feb 2021

Cazoo has completed the acquisition of Smart Fleet Solutions (SFS), a UK vehicle reconditioning and storage firm, for an undisclosed fee.

SFS has a team of over 500 staff operating from four refurbishment facilities across Nottinghamshire, Staffordshire, Wiltshire and Scotland, processing more than 100,000 vehicles annually.

Cazoo hopes the deal will allow both businesses to scale their national reconditioning and storage capabilities.

Alex Chesterman, founder and chief executive of Cazoo, said: “We are excited to have acquired SFS given its infrastructure and vehicle processing capacity as well as its dedicated team of over 500 vehicle preparation experts.”

10 Feb 2021

BP has completed an autonomous vehicle trial at its Lingen refinery in Germany, collaborating with autonomous vehicle software company Oxbotica for the project.

This project is the latest addition in BP ventures’ technology portfolio and is claimed to be the first in the energy sector.

The trial saw the vehicle travel more than 180km autonomously, navigating through BP refinery’s complex settings, including busy junctions, narrow paths, railway crossings, and several types of terrains in different weather conditions, both during night and day.

By the end of 2021, BP aims to deploy its first autonomous vehicle for monitoring operations at the facility.

9 Feb 2021

The UK’s used car market contracted 14.9% last year, making 2020 the worst year for sales since 2012, according to new data from the SMMT.

As lockdown measures which hoped to curb the spread of the coronavirus pandemic dampened consumer confidence, 1.18m fewer car transactions took place when compared with 2019.

Despite consistent growth from July to October, tougher national restrictions in November hampered demand, ending the year with a fall of 18.3% and 4.2% in November and December respectively.

Mike Hawes, SMMT chief executive, said: “These figures are yet more evidence of the significant damage coronavirus has caused the automotive sector.

“Market growth at the start of the year was welcome but quickly stifled by the first lockdown as showrooms closed across the country, a picture that was repeated with the subsequent lockdowns in November and, indeed, into 2021.”

8 Feb 2021

The Audi A3 model has topped the list for most leasing enquiries in January, according to the latest data from Leasing.com.

The Mercedes Benz A-Class has been the most popular car to lease for the past two years, but its popularity has fallen across the pandemic, as consumers turn to more affordable hatchbacks.

Explaining the changing consumer trends, Paul Harrison, head of strategic partnerships at Leasing.com, said: “The coronavirus pandemic has changed so many things about the way we live our lives including the products and services we consume.

“Although many consumers still need access to their own transport, their choices are changing. They’re’ driving fewer miles, and often opting for less premium vehicles to help manage their finances.”