Industry news

MotoNovo Finance unveils senior leadership team changes

3 February | People moves

MotoNovo Finance has announced a series of changes to its senior leadership team, as the company targets further expansion over the next 12 months.

The new team is:

  • Debbie McKay, promoted to the new role as commercial director of motor sales
  • Chris Rowthorn, promoted to a new role as director of motor sales operations
  • Donna Slater, head of strategy, research and proposition development
  • Mark Coles, head of marketing
  • Vicci Loosmore, head of product and marketing governance

Jon Slater, MotoNovo’s chief strategy & marketing officer, will also be transferring from the senior leadership team into a new Aldermore Group role developing the group’s broader strategy.

28 January | M&A

Cazoo agrees €80m acquisition of Italian retailer brumbrum

Cazoo has agreed the acquisition of brumbrum, a digital car retailer and subscription platform based in Italy, for a sum of €80m.

Founded in 2016, brumbrum is based in Milan and has grown to a team of over 180 staff, including at its 40,000 square metre vehicle preparation site in Reggio Emilia, which has the capacity to refurbish over 15,000 cars annually. The business offers hundreds of vehicles for sale, finance or subscription for delivery across Italy.

Cazoo will acquire brumbrum for €80 million in a mix of cash and Cazoo shares and the transaction is expected to complete in the coming days. Following its recent launches in France and Germany and its acquisitions in Spain and Italy, Cazoo will now have a strong presence across each of the 5 largest European markets for used cars.

3 February | Digital

Close Brothers MF rolls out electronic signature function

Close Brothers Motor Finance has rolled out an electronic signature function, enabling customers to sign for their finance agreement remotely.

Provided through Close Brothers’ partnership with DocuSign eSignature, the solution will replace the firm’s current e-sign process which can only be used by customers who are present at the dealership.

All dealers, brokers and partners will have access to the electronic sign solution, which aims to streamline processes and make buying a vehicle as flexible as possible for both dealers and customers. The new process will give customers the ability to switch between both in-person and digital, which in recent years, particularly during lockdowns and government restrictions, is what many consumers have indicated they would want.

20 January | Deals

Volkswagen FS signs joint venture with BNP Paribas Cardif subsidiary

Volkswagen Financial Services has established a joint venture with French-based Icare SA, a subsidiary of BNP Paribas Cardif, which specialises in warranties and maintenance.

As part of the agreement, Icare will provide maintenance solutions across Europe, with the main focus being on vehicle brands outside of the Volkswagen Group.

“As part of our growth strategy, we have set ourselves the goal of becoming the world’s leading fleet provider. This can only be achieved by expanding our multi-brand capability since many fleet customers use different makes of vehicles within their fleets,” said Anthony Bandmann, member of the management board of Volkswagen Financial Services with responsibility for sales and marketing.

27 January | Production

UK car production falls to lowest point since 1956

UK car production fell 6.7% year-on-year in 2021, marking the worst annual total since 1956, data from the Society of Motor Manufacturers and Traders (SMMT) has revealed.

Output was 61,353 less than 2020, which itself was badly affected by coronavirus lockdowns, and -34.0% below pre-pandemic 2019.

Despite this, British car factories produced a record number of battery electric (BEV), plug-in hybrid (PHEV) and hybrid electric vehicles (HEV), turning out almost a quarter of a million (224,011) of these zero and ultra-low emission vehicles, representing more than one-in-four (26.1%) of all cars made.

The overall poor production performance can be attributed to several factors, most of them direct consequences of the pandemic. The shortage of semiconductors, a critical component in modern car manufacturing, was the principal cause of the decline, with factories having to reduce or even pause production while awaiting parts whose supply has been heavily constrained by the global pandemic.

24 January | Used market

Used car stock rises 2.5% in January

Used car stock levels rose by 2.5% in January, driven by the market slowdown that was seen towards the end of 2021, data from INDICATA has revealed.

Sales of used cars fell by 19.3% in December, which is in line with typical market slowdowns at the end of the year. The increase in stock was further supported by some dealer groups de-fleeting ageing cars to boost their December year-end performance.

INDICATA said there are signs that some vendors have held used cars back to sell in January, which is also boosting stock levels, but this will be a short-term measure as the semiconductor crisis looks set to restrict new car production for many more months to come.

Whilst used diesel sales remain the fastest-selling powertrain on average with a stock turn of 5.9 it is worth noting that BEVs tied for second place at 5.3 with petrol. EV volumes reached their highest level in late 2021 but still comprise a small fraction of total used car sales.

13 January | Used market

Average age of used cars hits record levels in Q4 2021, Autorola finds

The average age of used cars in the UK reached record levels in Q4 2021, according to data from Autorola’s online portal.

Ex-fleet cars and dealer part exchanges reached their highest average age this decade, ranging from an average of 17 months for used EVs and 35 months for petrol cars, to 36 months for diesel and 38 months for hybrids. Autorola said the main cause is fleets having to extend replacement cycles while consumers are holding onto their cars for longer due to the shortage of new cars available across dealer networks.

At the same time hybrids and EVs reached 8.4% of Autorola’s total quarterly sales mix, marking the highest recorded figure on the platform and a further sign they are becoming an integral part of the UK used car market. This coincides with launching a new dedicated weekly alternative fuels auction for vendor Arval.

2 February | Aftersales

Motor dealers facing ‘£1bn loss in aftersales revenue’

Motor dealers are facing a loss of more than £1bn in aftersales revenue, due to the declines seen in the new car sales market, REALtime Communications has predicted.

John Law, insights and data director at REALtime, said: “We are now at a crossroads where higher volume service revenue from the scheduled third (major) servicing of new cars sold in 2019 starts to wash through (at the higher pre-pandemic sales volumes). After that, the traditional scale of activity will be impacted by the significantly reduced scale of new vehicles and the subsequent fall in the first and second servicing of cars sold during 2020 and 2021.

“The numbers evidence very clearly a significant shrinkage in aftersales revenues for the next few years. All the result of 1.8 million vehicles between one and three years old having been lost to the franchise network.”

In brief

Startline appoints head of internal control, compliance & legal

Startline Motor Finance has appointed Andy Smithson as its head of internal control, compliance and legal.

Volkswagen brand vehicle sales down 8.1% in 2021

Volkswagen brand vehicle sales were down 8.1% in 2021 due mainly to the sales constraints caused by the global semiconductors shortage.

AutoProtect appoints Mike Edwards as chief sales & marketing officer

AutoProtect Group has appointed Mike Edwards as chief sales and marketing officer, bringing significant automotive experience to the role.

Margin retention ‘key for retailers’ as supply chain problems continue

Retailers must focus on margin retention and profit, as supply chain shortages are unlikely to ease until later this year, says Cox Automotive.

ALD Automotive signs MoU in €4.9bn LeasePlan acquisition

ALD Automotive has signed a memorandum of understanding (MoU) to acquire 100% of LeasePlan for a total sum of €4.9bn.

13 January | Used market

Average age of used cars hits record levels in Q4 2021, Autorola finds

The average age of used cars in the UK reached record levels in Q4 2021, according to data from Autorola’s online portal.

Ex-fleet cars and dealer part exchanges reached their highest average age this decade, ranging from an average of 17 months for used EVs and 35 months for petrol cars, to 36 months for diesel and 38 months for hybrids. Autorola said the main cause is fleets having to extend replacement cycles while consumers are holding onto their cars for longer due to the shortage of new cars available across dealer networks.

At the same time hybrids and EVs reached 8.4% of Autorola’s total quarterly sales mix, marking the highest recorded figure on the platform and a further sign they are becoming an integral part of the UK used car market. This coincides with launching a new dedicated weekly alternative fuels auction for vendor Arval.

2 February | Aftersales

Motor dealers facing ‘£1bn loss in aftersales revenue’

Motor dealers are facing a loss of more than £1bn in aftersales revenue, due to the declines seen in the new car sales market, REALtime Communications has predicted.

John Law, insights and data director at REALtime, said: “We are now at a crossroads where higher volume service revenue from the scheduled third (major) servicing of new cars sold in 2019 starts to wash through (at the higher pre-pandemic sales volumes). After that, the traditional scale of activity will be impacted by the significantly reduced scale of new vehicles and the subsequent fall in the first and second servicing of cars sold during 2020 and 2021.

“The numbers evidence very clearly a significant shrinkage in aftersales revenues for the next few years. All the result of 1.8 million vehicles between one and three years old having been lost to the franchise network.”